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Medvedev Pushes Ruble Reserve Currency to Cut Dollar Dominance

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posted on Jun, 19 2010 @ 01:16 PM

Medvedev Pushes Ruble Reserve Currency to Cut Dollar Dominance

June 19 (Bloomberg) -- Russia wants the ruble to be one of the world’s reserve currencies as President Dmitry Medvedev renews his push to reduce the dollar’s dominance and make Moscow a global financial hub.

“Only three, five years ago it seemed like a fantasy” to create a new reserve currency, Medvedev said yesterday in a speech in St. Petersburg, Russia. “Now we are seriously discussing it.”
(visit the link for the full news article)

Related Discussion Threads:
Official: IMF Website speaks of New World Currency

posted on Jun, 19 2010 @ 01:16 PM

Medvedev, who has repeatedly called for a supranational currency to match the dollar, said discussions with China are continuing on broadening the global options. Russia sold U.S. Treasuries for a fifth consecutive month in April, the U.S. Treasury Department said June 15. The world may need as many as six reserve currencies, Medvedev said.

“It’s something that’s obviously needed,” he said at the St. Petersburg International Economic Forum. “Developing a financial center in Moscow will considerably help to strengthen the ruble’s position as one of the reserve currencies.”

Perhaps this is what we should start wishing for to happen. The US has too much power or rather, the Fed has too much power and effectively controls the US government.

President Woodrow Wilson was right by saying:

"I am a most unhappy man. I have unwittingly ruined my country.
A great industrial nation is controlled by its system of credit.
Our system of credit is concentrated. The growth of the nation,
therefore, and all our activities are in the hands of a few men.
We have come to be one of the worst ruled, one of the most completely
controlled and dominated governments in the civilized world.
No longer a government by free opinion, no longer a government by
conviction and the vote of the majority, but a government by
the opinion and duress of a small group of dominant men."

I've included a link to a thread which discusses the IMF push for a new world reserve - one that would keep those behind the Federal Reserve in control, which makes Medvedev's push for various reserve currencies a competitive move to the IMF's creation of one, new, world currency.

The creation of multiple world currency reserves would break the power of the Fed and hence, they would no longer be able to wage war and exploit the people in the name of profit.
(visit the link for the full news article)

posted on Jun, 19 2010 @ 01:30 PM
I think the best thing we could do is stop having a monopoly over reserve currency, that would sure scare the hell out of the elite. For some reason I don't think the elite have control over Russia, China and the rest of the developing world, am I alone in this thought?

Anyways... The best thing I could say is to have 10 reserve currencies for each region of the world, or have the US Dollar and the currencies of the BRIC countries.

posted on Jun, 19 2010 @ 01:53 PM
You're right. Russia and China have been waking up to the threat posed by the elites both ours here in the US and the EU elites...of course they are pushing they're own agendas. Be looking to more and more Russia/China encroachments in Latin America, in the form of investmests in infrastructure, to win the hearts and minds of the people there, as the Chinese are doing in Africa.

Contrary to general feelings of the omnipotent,omnipresent PTB, the elites are actually losing control, and thus becoming more and more desperate..

posted on Jun, 19 2010 @ 02:32 PM

Originally posted by Misoir
I think the best thing we could do is stop having a monopoly over reserve currency, that would sure scare the hell out of the elite. For some reason I don't think the elite have control over Russia, China and the rest of the developing world, am I alone in this thought?

No, you are not, but I'm just thinking. If this would actually happen - and the US would lose its monopoly over reserve currency, the US would effectively mean the end of the current financial system and the bankruptcy of the US. Multiple reserve currencies would likely mean the end of the Petro Dollar hegemony, which would put more pressure on the Dollar and very probably make the Dollar collapse.

The only reason that the US can borrow so much money and create billions out of thin air, is because the Dollar is the world's (sole) reserve currency. If that comes to an end, infinite money creation without causing hyperinflation will also be impossible, making it impossible for the US to pay off the huge amount of debts and hence, the beginning of the end.

In other words, this is an attempt to cripple the US. In the end, we the people, are in between a rock and a hard place since we will pay the price if this rotten system comes to collapse.

posted on Jun, 20 2010 @ 01:32 AM
Excuse my ignorance, but would someone mind explaining in laymens terms how a particular reserve currency creates wealth for its origin-nation.

My intuitive estimation is that it provides one of those false asset figures to work from - ie; creating wealth from nothing... *shrugs*

Interesting find, s+f

posted on Jun, 20 2010 @ 06:19 AM
It's way too complicated to explain briefly, but I'll give it a try.

Prior to the 1970s, demand for the dollar was strong since the US had been the world largest supplier of oil and the world was dependent on dollar denominated help (Marshall plan) to be able to rebuild their countries in the aftermath of world war II, which changed in the 1970s:

In particular, the dollar supply was relentlessly increased to finance America’s war in Vietnam. The US printed and spent more money than their gold reserves allowed. By 1963, the US gold reserve at Manhattan barely covered liabilities to foreign central banks, and by 1970 the gold coverage had fallen to 55%, by 1971 22%. Before the Vietnam War, the US had $30 billion in gold reserves, but it spent more than $500 billion on the war alone. By this time, the post-war reconstruction period had come to an end, and the European and Japanese economies had improved their economic position relative to the US, which had increased pressure on the US dollar. The situation reached a crisis point in 1970-71 when foreign central banks tried to convert their dollar reserves into gold. In response to a massive flight from the dollar, the US government defaulted on its payment on 15 August 1971 by cutting the link between the dollar and gold.


As a consequence of the gold standard abandonment, the Dollar became a fiat currency - a currency without intrinsic value. In other words, the Federal Reserve began to create money out of thin air, which essentially was the beginning of our artificial wealth that made the West and the US in particular the ''wealthiest'' on earth.

However, creating massive amounts of fiat currency comes at a price: hyperinflation, with Zimbabwe and the Weimar Republic being good example. The value of a currency depreciates as the supply of it increases, that is unless there is a strong demand for the currency. On top of the problems mentioned above, demand for US oil started to exceed supply, which caused US oil to peak and consequently also contributed to a decrease in demand for Dollars. Logically, the Fed needed to find an alternative to artificially maintain a strong supply for Dollars to avoid hyperinflation.

That alternative was found in oil, more specifically in Middle Eastern oil. Massive amounts of oil had been discovered on the Arab Peninsula and the oil industry experienced a rapid boom. At the same time that the US reached peak oil, Saudi-Arabian oil supply began to surpass its US counterpart, but there was one problem: the Middle East is an unstable powder keg and the Royal House of Saud feared to be overthrown and need protection urgently. Protection that the US, the world's strongest military force, could provide, resulting in a pact between OPEC nations and the US: oil would be traded exclusively in Dollars in exchange for military protection.
It ain't rocket science to understand that oil is probably the world's most important natural resource and that demand will always be high and its price will only increase, hence safeguarding demand for Dollars. As a result of this pact, the US could continue to grow wealthier and essentially get oil for free with freshly printed dollars:

So long as OPEC oil was priced in U.S. dollars, and so long as OPEC invested the dollars in U.S. government instruments, the U.S. government enjoyed a double loan. The first part of the loan was for oil. The government could print dollars to pay for oil, and the American economy did not have to produce goods and services in exchange for the oil until OPEC used the dollars for goods and services. Obviously, the strategy could not work if dollars were not a means of exchange for oil. The second part of the loan was from all other economies that had to pay dollars for oil but could not print currency. Those economies had to trade their goods and services for dollars in order to pay OPEC" (Spiro, Hidden Hand, 121).

However, now we are nearing global peak oil, the US once again needs to find an alternative to finance its infinite spending at the expense of the world. Therefore, they want a new world reserve currency they can control again as replacement of the Dollar that will sooner of later collapse with oil running out, but I doubt the EU, Russia and China will let the US take the world hostage again.

This also explains why countries that replaced the Dollar by another currency (Iran, Iraq, Venezuela) are considered ''rogue states''. They are a major threat to the Dollar.
The bottom line is that the US produces dollars while the rest of the world produces things that dollars can buy.

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