Posted on 04/02/2017 10:50:21 AM PDT by Enlightened1
The Russian central bank opened its first overseas office in Beijing on March 14, marking a step forward in forging a Beijing-Moscow alliance to bypass the US dollar in the global monetary system, and to phase-in a gold-backed standard of trade.
According to the South China Morning Post the new office was part of agreements made between the two neighbours "to seek stronger economic ties" since the West brought in sanctions against Russia over the Ukraine crisis and the oil-price slump hit the Russian economy.
According to Dmitry Skobelkin, the deputy governor of the Central Bank of Russia, the opening of a Beijing representative office by the Central Bank of Russia was a very timely move to aid specific cooperation, including bond issuance, anti-money laundering and anti-terrorism measures between China and Russia.
The new central bank office was opened at a time when Russia is preparing to issue its first federal loan bonds denominated in Chinese yuan. Officials from Chinas central bank and financial regulatory commissions attended the ceremony at the Russian embassy in Beijing, which was set up in October 1959 in the heyday of Sino-Soviet relations. Financial regulators from the two countries agreed last May to issue home currency-denominated bonds in each others markets, a move that was widely viewed as intended to eventually test the global reserve status of the US dollar.
Speaking on future ties with Russia, Chinese Premier Li Keqiang said in mid-March that Sino-Russian trade ties were affected by falling oil prices, but he added that he saw great potential in cooperation. Vladimir Shapovalov, a senior official at the Russian central bank, said the two central banks were drafting a memorandum of understanding to solve technical issues around Chinas gold imports from Russia, and that details would be released soon.
(Excerpt) Read more at zerohedge.com ...
Other than military, and raw materials
Russia has the economic output of... Finland
China can do a lot better with its allies
Suggest stop pissing off South Korea
Can someone explain in small words what the effect of this is? :)
How many armored divisions and nukes does Finland have....?
If I were China, I would pay the Democrats and some Reps to alienate the Russians, impose sanctions, etc., precisely to push Russia into the Chinese economic orbit.
The Democrats and large parts of the intel establishment seems obsessed with anything the Russians do (granted, a lot of their deeds are nefarious), but oblivious to similar cyber attacks and influence peddling by China. Wonder why?
Russian Federation · GDP (current US$)
$1.33 trillion USD (2015)
Finland · GDP (current US$)
$231.95 billion USD (2015)
China · GDP (current US$)
$11.01 trillion USD (2015)
United States · GDP (current US$)
$18.04 trillion USD (2015)
Thus it is written.
Guess they’ve figured out the mass production aspects:
“Can someone explain in small words what the effect of this is? :)”
At the Betton Woods conference in 1933 it was universally agreed that countries would pay off their debts in US dollars. This gives the dollar a much larger footprint, worldwide, as a matter of fact. A huge proportion of all the dollars produced are in foreign receipts accounts for all of the world’s countries. The economic impact on the US is that we have, in effect, an interest free loan for that amount. It’s a huge economic value and leverage for the country and the dollar.
The Obama administration, blesstheirlittlehearts, tried to move the world off the dollar by helping the Middle East replace the dollar with a basket of world currencies. I haven’t read much about that lately. Rest assured, the carrying costs of this loan are not cheap for the countries involved and they’d really like a way to get out of the arrangement.
The effect, incidentally, of bringing all those dollars home would be an instant inflation in very high percentages. The lower the dollar’s value the faster countries will divest; once they have an alternative. Several countries are issuing gold coins but that won’t give them the advantage the US enjoys today.
China can and will do both
There are Chinese industries in presently and moving to Korean Free Trade Zones to set up shop.
Regarding Russia, they share a long border and it is better to pretend to be friends than to be real enemies.
I am afraid if we backed our printed money with gold, that it would take $5,000 or more to buy one ounce of gold, possibly more.
And how can we continue to live beyond our means if we have to back our printed currency with Gold?
This move by China and Russia is not good for us if t catches on. -Tom
Oh, I forgot..... a gold standard is the natural way of things for the most of human history.
The recent situation disregarding gold is anomaly.
The fall of the Petro Dollar will bring about the collapse of socialism in the United States.
Th ONLY good reason why people buy a Dollars from the Fed is because they need them to buy oil.
No Petro Dollar, no endlessly printing money, no federal welfare state.
I would be concerned when we don’t see news like this every so often. It’s always been suggested but by the time it comes to take action, the USD is stable or rising and the recommended replacement is fluctuating all over the place.
I presume the author means gold's value in US Dollars?
Is there actually a robust international market for trading gold priced in yuan and rubles?
Or a robust market for trading the yuan and the ruble against each other?
This sounds like a scheme to evade USA sanctions against Russia, and not much else.
Maybe China does want to anchor the yuan against gold, which is a really interesting story all by itself.
But I don't really see any evidence that's what is happening here.
Hopefully, completely transparent gold-linked blockchain currencies (not Bitcoin!) will end all this political scheming and currency manipulation in the very near future.
“Gold is money. Everything else is credit”
JPM
Bretton Woods was in July 1944.
Sure.
If people use fewer dollars, its value goes down.
If the dollar goes down, the Fed can print fewer dollars without very harmful effects.
Bretton Woods took place in 1944, shortly after the successful Normandy invasion.
Sorry to nitpick, but the historical context was important in regard to many of the Agreements that were signed, and specifically to the use of the US Dollar as an international currency.
I have never really understood the concept of foreign-held US Dollars being an “interest free loan” to the USA.
I mean, how can USA citizens or the USA government spend or save or invest money that is not in their possession?
As far as I can see, the international dependence on the US Dollar dramatically reduces the transaction costs and currency risk involved in international trade.
However, as I stated in an earlier post, completely transparent, gold-backed, blockchain currencies will hopefully put an end to all this manipulation.
In a sane world 1 oz of gold would be worth $5000. And 1 oz of silver would be worth $100.
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