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St. Petersburg, Russia - China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.
Wen said at the press conference that the partnership between Beijing and Moscow has "reached an unprecedented level" and pledged the two countries will "never become each other's enemy".
Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.
Originally posted by hawkiye
Uh Oh if this is true TS has just HTF I repeat TS has HTF!
Hopefully I am over reacting however this does not bode well. This most likely will crash the dollar depending on how it plays out... Sigh!
China holds most of our debt. if they stop trading in Dollars they have no reason to hold on to them and if they start dumping our bonds we are toast as it will start a run on them and the Federal reserve can't buy them all up....
Somebody talk me down here...
The chance for a new world order
As the new U.S. administration prepares to take office amid grave financial and international crises, it may seem counterintuitive to argue that the very unsettled nature of the international system generates a unique opportunity for creative diplomacy.
That opportunity involves a seeming contradiction. On one level, the financial collapse represents a major blow to the standing of the United States. While American political judgments have often proved controversial, the American prescription for a world financial order has generally been unchallenged. Now disillusionment with the United States' management of it is widespread.
At the same time, the magnitude of the debacle makes it impossible for the rest of the world to shelter any longer behind American predominance or American failings....
Originally posted by MGriff
This is significant, but China can't get completely out of the dollar or they will severely compromise their investments. Right now, America and China are dependent upon one another. China could, if they wanted to, crush America, but that's not very beneficial to them right now. China is dependent upon American capital for investment in their country--which they need for economic growth which pacifies their populace, as well as the incredible market of consumers in the U.S. America is dependent upon China for their ultra-cheap labor force. This, currently, is the most important bilateral relationship of the 21st century, regardless of this news. I'm not trying to negate the impact of this, but it's not the doom and gloom many will likely subscribe to.edit on 23-11-2010 by MGriff because: (no reason given)
Originally posted by Vitchilo
Russia and China do about 50 billion $ of trade per year. So it's not much... but it's a start.
Thailand talked about dropping the dollar about a week ago... it seems Russia and China moved for it... shouldn't be long now before Thailand and a bunch of other countries do the same.
And this happening the same day or so that North Korea starts a provocation? I'm sure it's a coincidence!
Originally posted by Danbones
this explanes the distractions like n/s korea the plane/missle etc