It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Russia and China should scrap the US dollar in bilateral trade in the light of the global financial crisis, Russian businessmen suggest.
“We have to switch to settlements in the national currency, as payments in dollars often unreasonably delay remittances,” Sergei Sanakoyev, the board chairman of the Russian-Chinese trade and economic cooperation center, was quoted by ITAR-TASS as saying on Thursday.
The sharply deteriorating housing market set off the US financial crisis which has sent tremors through the EU zone not leaving Russia's RTS stock market unharmed.
The two sides are to discuss the substitution of the dollar for the ruble in bilateral transactions which are hoped to cross the threshold USD 58b this year.
“Complementary economies can help us out of the crisis,” added the chairman.
Belarus has also been advised by the Russian Prime Minister Vladimir Putin to shelve trading in the US dollar while doing business with Russia.
In early October, the Russian leadership pulled no punches in attacking the US authorities for their role in the crisis with Putin calling Washington the root cause of the predicament and President Dmitry Medvedev making doom-laden predictions for the American economic hegemony.
"The time of domination by one economy and one currency has been consigned to the past once and for all," Medvedev said on Oct 2.
Central bank governor Zhou Xiaochuan was quoted by the South China Morning Post as saying: "The US dollar is unlikely to be stable next year and later. [Yikes, this is the most worrying thing I have heard yet. I see only two ways to interpret this quote:
a) Zhou thinks the dollar is going to become unstable because China is going to cut back on dollar purchases.
b) Zhou thinks the dollar's problems are so big that China won't be able to do anything about it.
I personally believe it is a combination of the two.]
"And the likelihood of the United States issuing more money in the near future adds to the depreciation risk in US-dollar-denominated assets [China is worried about its massive holdings of US assets.] and trade settlements [Chinese exporters are worried about inking deals in a rapidly depreciating currency]."
He also reportedly said that Guangxi, a province in southern China, had already been settling trade with Vietnam in yuan for some time. [the fact that Chinese exporters are insisting on payments in yuan should be very worrying for the US. They wouldn't be doing this if they still trusted the dollar.]
Spurs to spend
A document released after a meeting of China's State Council on Wednesday announced more measures to stimulate domestic consumption. [Measures to stimulate domestic consumption should be very worrying to the US. It is evidence that China is moving away from its reliance on exports for economic growths towards a more consumer driven economic model. A shift away from promoting exports is also a shift away of financing our deficit.]
Despite China’s support of the Treasury bond market, China’s large holdings of dollar-denominated financial instruments have been depreciating for some time as the dollar declines against other traded currencies, because people and central banks in other countries are either reducing their dollar holdings or ceasing to add to them. China’s dollar holdings reflect the creditor status China acquired when US corporations offshored their production to China. Reportedly, 70% of the goods on Wal-Mart’s shelves are made in China. China has gained technology and business knowhow from the US firms that have moved their plants to China. China has large coastal cities, choked with economic activity and traffic, that make America’s large cities look like country towns. China has raised about 300 million of its population into higher living standards, and is now focusing on developing a massive internal market some 4 to 5 times more populous than America’s.
The notion that China cannot exercise its power without losing its US markets is wrong. American consumers are as dependent on imports of manufactured goods from China as they are on imported oil. In addition, the profits of US brand name companies are dependent on the sale to Americans of the products that they make in China. The US cannot, in retaliation, block the import of goods and services from China without delivering a knock-out punch to US companies and US consumers. China has many markets and can afford to lose the US market easier than the US can afford to lose the American brand names on Wal-Mart’s shelves that are made in China. Indeed, the US is even dependent on China for advanced technology products. If truth be known, so much US production has been moved to China that many items on which consumers depend are no longer produced in America.
Now let’s consider the cost to China of dumping dollars or Treasuries compared to the cost that the US is trying to impose on China. If the latter is higher than the former, it pays China to exercise the "nuclear option" and dump the dollar.
If the Rockefellers and the Rothschilds are the main conspirators behind the NWO, then why doesn't someone or some country simply bump them off. It wouldn't be very difficult to arrange. There's plenty of mercenaries for hire...Why are so many afraid of so few?