Posted on 09/01/2017 12:14:27 PM PDT by Lorianne
Today Russian President Vladimir Putin declared war against the hegemony of the U.S. Dollar. Of course, he couched the declaration in a statement saying Russia would work to counter the ‘excessive domination’ of certain reserver currencies.
The comments were published in an article in the runup to the BRICs summit scheduled to begin Sept 3 in China.
“We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies. We will also work towards a more balanced distribution of quotas and voting shares within the IMF and the World Bank,” Putin commented, reported Russian state news agency TASS.
“I am confident that the BRICS countries will continue to act in a consolidated manner against protectionism and new barriers in global trade,” he said. “We value the BRICS countries’ consensus on this issue, which allows us to more consistently advocate the foundations of an open, equal and mutually beneficial multilateral trade system and to strengthen the role of the WTO as the key regulator in international trade.”
“The goal is to create a package of cooperation measures to work against the restrictive business practices of large multinational corporations and trans-border violations of competition rules.”
“We hope to be able to discuss new large-scale cooperation tasks in trade and investment and industrial cooperation at the Xiamen Summit,” Putin added, referring to previous BRIC agreements recently negotiated.
SNIP
IMHO, it will be allocated Gold and Silver tied to a blockchain. It has been known for a while that Russia and China have been accumulating physical Gold and Silver for quite sometime.
This is the best way to move away from all of the currency manipulation games that the banksters have used to oppress the world since 1913.
While a blockchain currency backed by gold or silver does have great possibilities I’d prefer using actual gold and silver - but I doubt that will ever be allowed to happen again.
Actually we want to export more, don’t we? Our imbalance is more imports than exports, a lot of that China manipulation of their currency lower.
The dollar is what the world uses for transactions. The more other countries use different currencies for trade among themselves, the less demand for dollars.
China has been stocking up on gold for awhile now.
What do you earn on those pieces of paper called the dollar?
While a blockchain currency backed by gold or silver does have great possibilities I’d prefer using actual gold and silver - but I doubt that will ever be allowed to happen again.
Surely they will be used after the collapse.
Exports are helped by a weaker dollar. So if more exports are your goal then Putin may be your man.
Us currency is one of the safest and most secure in the world. International investors gravitate to such currencies when investing. When interest rates in such countries increase the demand does for that currency does as well. You can’t “buy” a CD, Treasury note, etc. or goods and services without converting the foreign currency into US dollars first. This is how exchange rates are determined. If you are in Europe and buy my US product I want to be paid in dollars. International currency transactions of these sorts on a daily basis dwarf the level of volume on Dow Jones by a large margin.
Spot on!
You nailed it.
Interest.
No, "want" is not the right word. It's what people are willing to pay for in the form of interest. Who is holding a gun to the heads of international traders now? Who is forcing everyone to hold dollars now?
Depends on what you mean by "hold". It would be more accurate to say that Dollar denominated assets are preferred when you need to park your money somewhere, which everyone involved in foreign trade does. This is what makes the dollar the preferred reserve currency and there is little Russia can do to affect it. I suppose they could liberalize their economy, stop robbing foreign investors, and crack down on corruption. Cue Steve Martin ..."naaaaaahhhhh".
I guess what I meant by “hold” was what you meant when you said it in your previous post, as in “Who is forcing everyone to hold dollars now?”
I want to make things here to export, along with the jobs it brings, so Trump is my man. That’s what Trump has been talking about, the trade imbalance.
That’s what Russia, China, Iran and some other countries have been trying to do to undermine us. If they aren’t paid for transactions in dollars, they won’t have to buy our treasuries. They are small potatoes compared to us, but they have been making deals using other currencies for awhile now.
Coordinated effort.
By Damon Evans
Nikkei Asian Review, Tokyo
Friday, September 1, 2017
https://asia.nikkei.com/Markets/Commodities/China-sees-new-world-order-w...
DENPASAR, Indonesia — China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.
The contract could become the most important Asia-based crude oil benchmark, given that China is the world’s biggest oil importer. Crude oil is usually priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.
If you make stuff here to sell over there you must also buy stuff over there and bring it here. So anyone who is in favor of exports must also favor imports. There is no other way. So Putin wishes to end dollar domination. Does that help or hurt the ex/im trade?
That’s correct. But our trade deals haven’t been balanced. Our biggest export has been our jobs. Russia and China can agree to do their little trades with other countries using a different currency, but I don’t think it’s enough to affect the dollar. If our exchange rate goes down a little that just helps our exports. If the value of the dollar goes Down too far, the worst pain for us is the price of oil that we import. Fortunately for us we are becoming less reliant on oil imports as we are producing more here. China has been manipulating their exchange rate artificially low, making it more feasible for companies to produce over there, thus our loss of jobs and manufacturing. Plus our burdening over regulations costs us.
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