Russia - playing a little Roulette right now - with U.S. Dollar?

It seems Russia has reversed themselves saying "They are happy with the dollar". Though just last week, President Dmitry Medvedev, questioned its global status, joining China’s central bank Governor Zhou Xiaochuan in suggesting the world may need another benchmark for settling international debts.

Okay, so a complete reversal has happened! Does everyone feel better about the dollar?

Now, before getting all warm and fuzzy about the dollar, lets take a critical look at what has been said in the past, compared to what is being said now!

Since the end of March, China and Russia have been saying "get rid of the U.S. dollar as the reserve and trading currency. But now they are saying "We are happy with it all of a sudden".

Hmmmm, something does not sound right about that. The dollar index had been in a decline and metal prices have been in the increase, until a couple of days ago.

Why the sudden change?

Could it be, that in reality, they KNOW the dollar has been printed WAY TOO MUCH and it was in a decline, yet they have Billions in dollar reserves themselves! So, what do they do?

Keep thrashing the dollars status and let it decline while they have Billions of it? OR do they get smart and come out to the public saying they are fine with the dollars status, to keep it strong and the gold prices stable and low while they work furiously behind the scenes to get rid of their dollar reserves?

Information had come out last week about Russia exchanging their U.S. dollars for IMF debt, China has been increasing their gold reserves.

Sorry, no one should take and feel comfortable with the U.S. dollar status as being secure and able to stay the reserve and trading currency of the world. Look more critically at what is really going on, watch the movement of dollars. Other countries are going to do what is in their best interest, not in the U.S.'s best interest, so what they are doing is very smart right now. They are behind the U.S. dollar has they work to do everything they can to get rid of it, secretly and quietly and totally behind the scenes while it still has value.

Don't take what is being said at face value, look at it carefully and closely and think about to what advantage is there to countries with huge dollar reserves to keep it strong at the moment.

Russia playing roulette with the dollar - betting the house of reserves and getting rid of it?

I think they have ALL been playing Russian roullette since last September.
Where have you been?
I missed you!!

reply to post by questioningall


Simple answer Iran. Things are way to unstable in NK, and well there is pretty much a revolution going on in Iran right now.

Iran being one of the worlds largest oil suppliers is going to hurt the Russian Currency, also with Iran being so close to Europe and the Euro not looking so good the IMF and World Bank are in no position to further destabilize things.

This doesn't mean what they said last week was a lie, it's just right now things are not very stable and its not a good time to be trying to undermine the worlds reserve currency.

I don't see them changing positions on that matter, but they could also see Iran, if the revolution is successful, being a big game changer in the geopolitical world.

The young Iranians want no beef with America, and it is up for debate if the movement is successful what will happen. Which leaves open all kinds of opportunities and speculation.

reply to post by questioningall


Since 2 yrs ago August these things have been going on at scales previously unknown. It's your classic buy low sell high strategy and as such all markets (not just currency) are experiencing terrific volatility. Personally I think the dollar is still significantly overvalued, but despite this it will not slide significantly until we get the inflation backlash that will happen within the next 3 yrs.

If you understand their mentality/agenda/tactics you can ride the wave with them and make some cash yourself. I know I've been doing OK.

18mths or so ago I bought gold at $640 with the pound at $2.11 now with gold skirting $1000 the exchange rate has recently risen to $1.62 (up from $1.42). Do the math. Also a few months back the Lloyds shares were still well over a £1 but I told my mate not to buy until it hit 36p. I was laughed at! He bought in firstly at £1.50, then just over a pound, then again at 70p then at 54p by the time they hit 36p he'd run out of investment cash.

Mining stocks and other precious metals have also provided MASSIVE opportunities for the brave.