I wouldnt go as far as to say this will lead to WW3 but I can only imagine what will start to happen if Russian or Chinese currency begins to take over the world over the US dollar. But isn't the US dollar still worth more than both of those countries currency's?

Lets look back on China and see how good they been to us. A Woman named Stephanie McCloskey help her company VisionTech sell counterfiet chips to the US Military, They posined our dog food, they posioned our children with lead paint on thier toys, they used lead paint on your coffee cups, those blind you may have next to your childs bed may have lead paint on them, they've been actively stealing us militray secrets. I'm sure not much to be conserned about, I'm sure it's only mostly known tech anyhow nothing on the black ops side. It just goes to show you they definitly got it comming and Using North Korea to lure us into a trap and to continue to let them do it isn't an option anymore. Our economy may suck, but we still got stinkin filthy rich off the chinese cheap goods lol.

My understanding is if we go back to gold,too hard to trade for finished goods. No one's going to want to exchange gold pieces for bread. I forget WHERE I heard it...but heard to buy pre 1964 rolls of Mercurery dimes..
Good source of silver and easier to barter and exchange.
Small, light weight and can be used anywhere in the world... Plus,makes a nice knuckle sandwhich If you try and steal my gold!

look at the positive side americans ,dollar will soon be toilet paper and you people will become leaner thanks to starvation , not only that your children will die and thus contribute to population reduction for the zionazi and banker elites , hell you would make Kissenger proud and he will be so happy that you useless eaters are dying .

He will definitely give Darwin awards enmasse

This is why the U.S. is going to beat the crap out of North Korea. The U.S. will not stand by and let the other big two bring the dollar to its knees. This will escalate and I fear the George Washington is going to be a floating sacrificial target and then Americans will scream for massive retaliation Cold war style.

Let them do so at their own peril. People around the world were twitchy over Ireland's money problems; imagine the reaction to the U.S. having the same issues. I doubt it'd be doomsday or anything quite so dramatic, but a collapse of the dollar would be painful for everybody.

think more will be dumping the dollar before its over.. Stopped accepting u.s dollars couple years ago for my consulting work. And no longer will take any western currency as of last month. I work hard for my pay and dont want worthless western money.. I take regional currencies or items / services in trade but no western currency.

Originally posted by bulletproof_monk
So im guessing this is going to affect the value of the US dollar even more?

LOL no #! we #ed

Obvious sign of the dollars inevitable collapse. Then the Amero to the rescue I bet.

This is all part of the scam, and Russia and China are in on it up to their necks by way of their central banks. This is just for their own bilateral trade, but mainly to stress all the sheeple who finance the whole swindle. All the central banks are controlled by the same people. Americans have stupidly given all their money to China in exchange for shiny trinkets, and financed the moving of all industry over there, merely because they will work cheaper. China then lends all the funny money back to the US in the form of their Rothschild controlled central bank buying bonds which are "lent" to the US govt by their own Rothschild controlled Federal Reserve. Do you really think all the leaders are just retarded, or could there be something more to it, maybe?

This is as if you were selling widgets, and would lend your customers the "money" to buy them from you, in amounts they can NEVER pay back. Why would you do such a thing? Just to collect the interest? Or, wait a minute, eventually they would just owe you everything they have or ever will earn. Hmmm. Well, thinking of that, why would you ever become a customer of such a pyramid scheme? Maybe because Mommy and Daddy and your schoolteachers drilled into your head since birth that it is right, and good, to play along with this idiocy.

So if Russia and China use the Ruble and Yuan for their own bilateral trade that means what?

It's like, say UK and France using the Pound and Euro for their bilateral trade. Nobody needs to make an announcement about this.

What matters of course is the exchange rate for the trade. When Russia & China trade RUB/CNY what rate do they use?

Because of arbitrage, this has to be RUB/USD (floating) / CNY/USD (held fixed by Chinese mercantilist policy). (If it weren't you could just make money doing round trip money transfers).

So, what happens if Russia & China use the RUB/CNY for trade? Does this reduce the necessity for USD reserves?

No. Thanks to the peg of CNY/USD instigated by the Chinese, importers and exporters in Russia & China are STILL exposed to the global value of the USD (via the floating RUB/USD) and the risk of policy changes in CNY/USD by the Chinese central bank.

So this announcement seems to be meaningless propaganda. Economically, as long as China wants to peg its currency to the USD in order to harm US manufacturing, it has to take all the rest of the consequences.

As far as "threatning to dump the dollar"---- that is what the US Secretary of the Treasury & the Chairman of the US Federal Reserve have asked the Chinese to do! They want China to loosen the peg and let the USD devalue against CNY just as it should. "Dumping the dollar" is the scare version of it.

This supposed weapon of China to dump US Treasuries violently is like a suicide-vest-made-for-two.

China cannot destroy US manufacturing by pegging to the dollar AND dump its dollar reserves.

If China dumps treasuries and doesn't let the CNY go up (overall) then what happens? It would have to buy something with the dollars it is getting from dumping treasuries, and the only open-market big enough is the euro. So then it makes EUR/USD go up, and the europeans become the targets of Chinese mercantilism.

China actually getting off the dollar and letting the CNY float would be the best thing in the long run for the USA, even if it would have a negative short term effect as interest rates make a one-off jump. Chinese imports would be more expensive (meaning Wal-Mart inflation goes up) but companies would no longer assume that moving to China is guaranteed to make them money. This will help US industrial sector, at the expense of the US financial sector. That's not necessarily a bad thing.