China, Russia renounce the dollar

China, Russia renounce the dollar

en.rian.ru

The recent meeting between Russian Prime Minister Vladimir Putin and his Chinese counterpart, Wen Jiabao, created a financial sensation. Wen said that the two nations could withstand the global financial crisis if they joined forces; Putin urged him to go farther and stop using U.S. dollars in Russian-Chinese settlements.

This idea is nothing new. Russia and China reached a "framework" agreement in November 2007, which was followed by China's similar agreement with Belarus.

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finally, the cat is out of the bag , Russia and China are going to stop using dollar

PM Putin suggests Russia, China ditch dollar in trade deals

MOSCOW, October 28 (RIA Novosti) - Russian Prime Minister Vladimir Putin proposed on Tuesday that Russia and China gradually switch over to national currency payments in bilateral trade, expected to total $50 billion in 2008.

"We should consider improving the payment system for bilateral trade, including by gradually adopting a broader use of national currencies," Putin told a bilateral economic forum.

He admitted the task would be tough, but said it was necessary amid the current problems with the dollar-based global economy.

Chinese Prime Minister Wen Jiabao described strengthening bilateral relations as "strategic."
en.rian.ru...

but then there are questions whether its a economic or political decision ?..

Experts differ on this count. Igor Nikolayev, chief strategic analyst at FBK private auditing firm, sounded skeptical: "I think it was a political statement rather than an economic decision. There is a dominant public sentiment that the United States is the source of all evil, so let's stop using the dollar," he explained.
en.rian.ru...

but then many others , believe that this could be an economic decision ....

Andrei Marinchenko, director general of the Kalita-Finance company, said the idea was quite realistic. Moreover, he thinks that the ruble stands a good chance of being selected as a reserve currency, primarily because the Chinese are disappointed in the dollar but aren't yet accustomed to the euro.

Only time will show who is right. But to stop using the dollar in Russian-Chinese settlements is too important a decision to make for purely political reasons - that much is obvious.

Suppose we do it; what will be the implications for Russian businesses, how will the new financial and political reality affect their incomes and savings?

Marinchenko is convinced of a beneficial impact. According to Marinchenko, once the ruble is recognized as a settlement unit, it will enjoy growing demand with Chinese companies and individuals. The Russian currency will consequently grow stronger and more influential globally.
en.rian.ru...

in my opinion dropping the dollar is a very good idea , as it help stop fascist american empire, help the chinese and other economies and yes rouble will become a reserve currency as it is backed by surplus and gold/platinum reserves

en.rian.ru
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[edit on 30-10-2008 by sadchild01]

And so it begins, the new financial world war.

I guess Russia, China, India, Pakistan, Iceland perhaps will create their own currency.

reply to post by Grey Magic


Nicely put. Financial World War. I beleive that Iceland will adopt the Euro. And all the other currencies fall into place somehow, just as planned.

This is absolute stupidity.Typical Russian anti American rhetoric.
The source of course is baloney.They should realize the cold war is over.
No 1 country can completely stop using another country's currency.
If you know anything about foreign exchange all currency's are always openly traded on a daily basis just for different country's business and banking systems to function.

Please note:

rian.ru last year said the United States was preparing to invade Iran and troops were massing on the border. The invasion never happened.

It's propaganda mill for the Kremlin - take all new stories with a pinch of salt.

reply to post by Interestinggg


They are not only fighting the money, but the people who PRINT it.

There has to be balance.

This is supposed to be a great idea? Stop using US Dollars to settle China-Russia transactions?

The only explanation for them EVER having used the currency of a third nation in their bilateral trade is because neither of them trusted the currency of the other.

This is so #ing pathetic!! I hope they do stop using our Currency in their transactions, we'll see who needs whom first.

Why do I doubt the impact of this on anything. I have been following the news all day and have seen nothing about this. I think this is a non-story.

So China (with Russia)are going to take steps that will undermine the status and value of the US Dollar. Some one remind me how much US debt China is holding. Turkeys voting for Christmas?

Originally posted by Grey Magic
And so it begins, the new financial world war.

Yes, just like predicted.

But they will lose though, china is not powerful enough to challenge the US, not until 30 years in the future. And of course at the present time such story is a non issue, just a wishful thinking by some america hater.

Originally posted by Jazzyguy

Originally posted by Grey Magic
And so it begins, the new financial world war.

Yes, just like predicted.

But they will lose though, china is not powerful enough to challenge the US, not until 30 years in the future. And of course at the present time such story is a non issue, just a wishful thinking by some america hater.

china can economically cripple USA and cause USA to collapse economcially, and in terms of nukes and bioweapons , it can ensure MAD vis a vis USA .

seems strong enough to me

reply to post by infinite


well, even many newspapers , western ,asian, russian , have been predicting war of USA with iran since 2005 , so what are u talking about ??

Originally posted by sadchild01
china can economically cripple USA and cause USA to collapse economcially

They can't, if they can they'll do it already. They've been wishing to do that ever since they lose Hong Kong to the British, but there's nothing they can do. Perhaps some other time.

Originally posted by sadchild01

Originally posted by Jazzyguy

Originally posted by Grey Magic
And so it begins, the new financial world war.

Yes, just like predicted.

But they will lose though, china is not powerful enough to challenge the US, not until 30 years in the future. And of course at the present time such story is a non issue, just a wishful thinking by some america hater.

china can economically cripple USA and cause USA to collapse economcially, and in terms of nukes and bioweapons , it can ensure MAD vis a vis USA .

seems strong enough to me

China relies mostly on exports to the USA and its Allies.
And has a strong demand for imports of raw materials from US allies.
If it were to get out of line China itself could be crippled very easily.
Not to mention the amount of weapons and firepower the USA has compared to China.
Russia on the other hand is more of a worthy adversary.

China Can't assure Mad with USA only Russia can, we can drop the Chinese nukes like flies and there aren't a huge number of them... all of them are susceptible to other nukes air burst during flight course.


And

Economic Warfare 33% of the worlds food comes from the USA and more from Canada and Mexico

If we ever cut the food supply in exchange for that those nations would be screwed... not any 1 in particular, but many 3rd world nations would starve and Europe and Asia and the Mideast is land locked, people will migrate, It would get horrible

War it would indeed be, perhaps China and Russia could survive with out the USA but China would be Minus the growth derived from selling us tons o Junk and Russia would need Food and China would be barely able to feed itself...

Americans on the other hand would just be broke

But the resources we have, Canada supplies most of our oil after all

Americans would only be hit by our own materialism

Asia would be hit by starvation

Big difference

reply to post by mopusvindictus


This was an excellent summing up , lifting the glass and sayin "cheers"

reply to post by Jazzyguy


incorrect , again , china holds 400 billion securities of USA and 2 trillion dollar reserves ,

read on China 'financial nuclear option' for american financial markets and structure


www.vdare.com...
www.telegraph.co.uk...
www.dailyreckoning.com...

They've been wishing to do that ever since they lose Hong Kong to the British,

hong kong has been given back to PRC by britain in 1997

With the lease of the New Territories due to expire within two decades the governments of the United Kingdom and the People's Republic of China discussed the issue of Hong Kong's sovereignty in the 1980s. In 1984 the two countries signed the Sino-British Joint Declaration, agreeing to transfer sovereignty to the People's Republic of China in 1997
en.wikipedia.org...

interestinggg:

China relies mostly on exports to the USA and its Allies.

china exports to USA are only 8 % of its GDP

If it were to get out of line China itself could be crippled very easily. Not to mention the amount of weapons and firepower the USA has compared to China.

Chinese govt may not agree with you , as for firepower , once bioweapons enter the conflict , it is impossible to stop their spread

Russia would need Food and China would be barely able to feed itself...

russia would need food???

in 2007, Russia had a bumper harvest in 2007
World Ag Watch - Bumper Russian Grain Harvest

Russia has harvested 75.3 million metric tons of grain to Aug. 25 on 25.7 million hectares (63.5 million acres).

The total grain-planted area in Russia is 46.3 million hectares (114.4 million acres).

The average yield so far has been 2.93 tons a hectare (1.19 tons / acre).
www.agmates.com...

en.rian.ru...