width = 600>This is what will happen in 20 years. Putin has set up no strong central institutions and no succession mechanism. Expect Moscowy to collapse by 2040.
Posted on 08/13/2020 6:33:31 AM PDT by Cronos
Russia and China are partnering to reduce their dependence on the dollar -- a development some experts say could lead to a "financial alliance" between them.
In the first quarter of 2020, the dollar's share of trade between Russia and China fell below 50% for the first time on record, according to recent data from Russia's Central Bank and Federal Customs Service.
The greenback was used for only 46% of settlements between the two countries. At the same time, the euro made up an all-time high of 30%, while their national currencies accounted for 24%, also a new high.
Russia and China have drastically cut their use of the dollar in bilateral trade over the past several years. As late as 2015, approximately 90% of bilateral transactions were conducted in dollars. Following the outbreak of the U.S.-China trade war and a concerted push by both Moscow and Beijing to move away from the dollar, however, the figure had dropped to 51% by 2019.
Alexey Maslov, director of the Institute of Far Eastern Studies at the Russian Academy of Sciences, told the Nikkei Asian Review that the Russia-China "dedollarization" was approaching a "breakthrough moment" that could elevate their relationship to a de facto alliance.
...The process gained further momentum after the Donald Trump administration imposed tariffs on hundreds of billions of dollars worth of Chinese goods. Whereas previously Moscow had taken the initiative on dedollarization, Beijing came to view it as critical, too.
(Excerpt) Read more at asia.nikkei.com ...
Putin's Russia is allying itself with China in an explicit anti-US alliance
So their both out of cash - very interesting Ivan
Putin’s job is to prevent Mother Russia from dying.
When trading in Rubles and Yuan, a valueless currency is exchanged for a valueless currency.
Good luck with that guys.
Who cares about Russia? Their share of the world’s GDP is 1.95%.
width = 600>This is what will happen in 20 years. Putin has set up no strong central institutions and no succession mechanism. Expect Moscowy to collapse by 2040.
So does this mean an IOU fron China and one from mother Russia add up to something over zero?
TPTB have proven themselves willing to go to war to preserve the US’s hegemony and the USD as the world’s reserve currency.
The globalists are likely cheering this on, as they see a strong USA economy and currency as the last roadblock to their usurpation of world dominance and complete control of all aspects of our daily lives.
“Putin’s Russia is allying itself with China in an explicit anti-US alliance”
Russia has needed a way around sanctions, after their invasion of the Ukraine. China is facing major financial constraints on their dollar transactions.
To me, it seems more like they just have to do this, rather than it being some grand strategy to take over the financial world.
Which one will screw the other harder, in the end? That is what I’m wondering.
We have been hearing these tales for twenty years.
Ho hum.
Yep. Russia is a natural enemy.
I wouldn’t go as far as suggesting China and Russia are allies. But Russia is wealthy in resources, close to China. It is only natural that there would be trade.
And why would two countries want to hold dollars of a third country’s diminishing fiat currency. They would be better off using gold or bitcoin.
Fake News.
Headline vs story.
So predictable, it’s sad.
until Xi, I would have said that China was playing it smart - the slowly creeping forward way and taking over without a shot. But Xi is acting like a tough guy and may get his face smudged in the dirt
“until Xi, I would have said that China was playing it smart - the slowly creeping forward way and taking over without a shot. But Xi is acting like a tough guy”
The Panda mask is off, and more people are seeing the true monstrous face of communist oppression.
I’ve been hearing them for longer. Every time they propose the switch their alternative currencies, which were fairly stable for a change at the time they put the idea forward, quickly became finacial basket cases compared to the USD.
The time for concern is when they stop suggesting it.
The only time they have a chance might be when/if total world trade literally collapses - worse than last depression - AND the national conditions vis a vis other countries compared to the U.S. makes the case, under those changed conditions, that some other currency will be (a) stronger and (b) more stable.
As long as global world trade does not collapse and/or the global trading patterns are not massively altered, global trade will continue to favor the dollar, no matter what Russia or China TRY to do.
And 100% besides, the Fed and the Treasury will easily adjust each and all the Monetary indices, fully accounting for less demand for dollars, without letting other actors like China or Russia skew the monetary value of the dollar. If there were to be less demand for dollars, they would reduce the global supply of dollars accordingly, keeping the value altered relatively little.
“When trading in Rubles and Yuan, a valueless currency is exchanged for a valueless currency.”
works out fine as long as there’s no big trade imbalance and a legitimate exchange rate can be determined, probably by comparing each of the two currencies with their dollar exchange rate ...
“” “” To me, it seems more like they just have to do this, rather than it being some grand strategy to take over the financial world””” “
The politization of $ by the US government through arbitrary use of sanctions is no joke.
One should think what made $ number one currency in the first place and the role of $ in the American global leadership.
Does it worth to give it away for petty political games?
Devaluation of $ on global markets is real as we speak. Look at DXY. It is approaching Carter-era zone. If you think $60,000 for a pickup truck is too much you can expect it for $100,000+ in a couple years with little room to improve incomes on top of it.
Russia and China are doing it not because of some heinous plans. That is a protective mechanism for them to circumvent the politization of $. By the way the same similar policies are discussed in Germany and France right now, largely for the same reasons.
If the Congress believes it might act like an Ancient Rome it is about to bring the same fate upon US.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.