PDA

View Full Version : China and Russia Sign Energy Deal using Domestic Currencies. NO MORE USD.




Mani
05-22-2014, 02:15 AM
Is this the first step the begins crashing of the Dollar??? :eek:

You no need our petrodollar!?!?


http://scgnews.com/russia-china-banking-deal-to-exclude-dollar-in-transactions-symbolic-blow-to-dollar

Russia, China Banking Deal to Exclude Dollar in Transactions - Symbolic Blow to Dollar

During Putin's two day visit in Shanghai, Russia and China took another small step to undermine U.S. monetary hegemony when Russia’s second biggest financial institution, VTB, signed a deal with the Bank of China to bypass the dollar and pay each other in domestic currencies.

Many experts are referring to the move as symbolic. The banking deal is very small in the scheme of things, however it is a signal of intent. Both China and Russia are looking to a future where the U.S. dollar is no longer the world reserve currency, and they aren't content to wait for that future to arrive. They are working to help it along.

While this particular banking deal may not be incredibly significant in and of itself, there is another deal that is in the works that could have a much wider impact. According to Reuters, the BRICS block (Brazil, Russia, India, China, South Africa) aim to finish preparations for a new international development bank by this July. The bank, which has been in the works for several years now, aims to provide an alternative to the IMF (The United States is currently the dominant shareholder of the IMF).

While the new bank is being presented as a means of facilitating investment within the BRICS block, If Brazil, Russia, India, China and South Africa are able to establish a stable financial network that bypasses Washington and the Federal Reserve, it would not only make it impossible for the U.S. to bully any one member (i.e. Russia), but it could also open the door to dollar free energy exchanges... exchanges like the one that Russia has announced it will open this June.

That's right, on June 8th Russia is opening its own oil exchange to trade crude oil and petroleum products for rubles and gold.

Viewed as a whole it looks as if Washington's attempts to strong arm Moscow is leading to an accelerated push to undermine the dollar's position. Don't get your hopes up for immediate fireworks though. Rome didn't collapse in a day.



http://www.zerohedge.com/news/2014-05-20/china-signs-non-dollar-settlement-deal-russias-largest-bank

Slowly - but surely - the USD's hegemony is being chipped away whether by foreign policy faux pas, crossed red-lines, or economic fragility. However, on Day 1 of Vladimir Putin's trip to China it is clear that the two nations are as close as ever. VTB - among Russia's largest banks - has signed a deal with Bank of China to pay each other in domestic currencies, bypassing the need for US Dollars for "investment banking, inter-bank lending, trade finance and capital-markets transactions." Kirill Dmitriyev the head of Russia’s Direct Investment Fund notes, "together it’ll be possible to discuss investment in various projects much more efficiently and clearly," as Russia's pivot to Asia continues to gather steam. (more at the link)

jtap
05-22-2014, 08:51 AM
If (when) the USD isn't the reserve currency of the world any longer I am hopeful that it is a slap on the face to many that wakes them up to what is going on.

AngryCanadian
05-22-2014, 11:17 AM
If (when) the USD isn't the reserve currency of the world any longer I am hopeful that it is a slap on the face to many that wakes them up to what is going on.


I hope this becomes an slap on all those war mongers, interventionists whom were thinking that America can invade and occupy any country that they can pick.

Seraphim
05-22-2014, 11:27 AM
First step?

No. These bilateral trade deals have been going on since about 2008 and have ramped up since about 2012. This is the biggest one so far.

The USD is too big to be taken down in one fell swoop. The international reserve currency will change (is changing) through a step by step process that will come to fruition only once a critical mass has taken hold.

For those of us paying attention, the change will not be "sudden" or "unexpected".

jbauer
05-22-2014, 11:27 AM
I hope this becomes an slap on all those war mongers, interventionists whom were thinking that America can invade and occupy any country that they can pick.

Yeah, doing those endless wars needs to be put into perspective to the neocons. When we finally get forced to either pay social security OR pay to blow up a bunch of brown people with those SS checks it'll finally become a real question rather than just a yellow support the troops ribbon.

ZENemy
05-22-2014, 11:41 AM
At the very minimum this will/can cause international products to rise in price?

Zippyjuan
05-22-2014, 12:49 PM
No.

wizardwatson
05-22-2014, 01:07 PM
First step?

No. These bilateral trade deals have been going on since about 2008 and have ramped up since about 2012. This is the biggest one so far.

The USD is too big to be taken down in one fell swoop. The international reserve currency will change (is changing) through a step by step process that will come to fruition only once a critical mass has taken hold.

For those of us paying attention, the change will not be "sudden" or "unexpected".

I've had this same basic belief since I saw an interview years ago with Soros in which he said - paraphrasing "A decline in the dollar is necessary but not a sudden one. It's better if the dollar devaluates/corrects over 10 years or so."

I don't trust any of these players. I'm sympathetic to Putin more than Obama but I can't know who's lying the most. But I think it's safe to assume that power brokers have orchestrated this who have no allegiance to any country. I don't believe it's as simple as "Hey, China, it's about time we did something about this! Let's not use the dollar anymore. Great idea Russia!"