actually, given this is ONLY affecting trade between Russia and China, I don't see how it affects the US. Care to elaborate?

Seeing that China runs its media I think the source is a bit sketchy. Are there any other sources to back this?

On a side note a few years back China stated to dump the dollar. However, they are also buying up U.S. debt and land.

China is working on becoming “the” world super power.

Raist

Originally posted by rogerstigers
actually, given this is ONLY affecting trade between Russia and China, I don't see how it affects the US. Care to elaborate?

When they outlaw american dollars from their people ie cold war/blackmarket it was illegal to own american dollars,,, if Russia/China do that Outlaw the ownership of American dollars by their people , corp. transactions will follow.

You are right in that China controls every newspaper article. No one has freedom of speech. So, seeing that "China runs its media," you need to take this as a direct message from the Chinese government to the U.S.

Ill star and flag this sir/madam...This is not important in and of itself, but it is the mark of things to come....with the big guys doing it, the little guys will be trying however its possible.
The drop in usage of the dollar would leave a flood of them to be redeemed for other currencies....the chickens couldnt be much further behind could they?
And theyre a comin home to roost.....

Originally posted by BobAthome

Originally posted by rogerstigers
actually, given this is ONLY affecting trade between Russia and China, I don't see how it affects the US. Care to elaborate?

When they outlaw american dollars from their people ie cold war/blackmarket it was illegal to own american dollars,,, if Russia/China do that Outlaw the ownership of American dollars by their people , corp. transactions will follow.

but this was most likely done under the pretext that Russia was at intellectual war with the US. i think it would take more time for them to completely pull out of the dollar because it is necessary for them to find an alternative investment that has as much value and which they can poor equal amount of funds into.

They don't have to outlaw the use of the dollar for this to have a serious impact on the US. First of all, when two nations use the dollar to trade between each other, that means they will want to hold large backup reserves of dollars as a store of value and they will have at least some vested interest in keeping the dollar strong and earning interest on their dollars through purchasing US securities . T-bill purchases fund the US governent, and investment in other securities helps both the public and private sector in the US raise cash.

When two nations as large as China and Russia decouple their international trade from the US, they edge farther away from the needs and investment practices described above. They can hold fewer dollars, they can invest less in the US. Moreover, it sets a strong precedent for other nations decoupling from the US dollar, either on their own or when trading with Russia or China.

This is just one of several ways such a move can be damaging to the dollar. In and of itself it is not necessarily a major turning point (although it could be), but it is certainly another milestone on the dollar's highway to hell.

Originally posted by silent thunder
They don't have to outlaw the use of the dollar for this to have a serious impact on the US. First of all, when two nations use the dollar to trade between each other, that means they will want to hold large backup reserves of dollars as a store of value and they will have at least some vested interest in keeping the dollar strong and earning interest on their dollars through purchasing US securities . T-bill purchases fund the US governent, and investment in other securities helps both the public and private sector in the US raise cash.

When two nations as large as China and Russia decouple their international trade from the US, they edge farther away from the needs and investment practices described above. They can hold fewer dollars, they can invest less in the US. Moreover, it sets a strong precedent for other nations decoupling from the US dollar, either on their own or when trading with Russia or China.

This is just one of several ways such a move can be damaging to the dollar. In and of itself it is not necessarily a major turning point (although it could be), but it is certainly another milestone on the dollar's highway to hell.


Excellent points!

Originally posted by Raist
Seeing that China runs its media I think the source is a bit sketchy. Are there any other sources to back this?

On a side note a few years back China stated to dump the dollar. However, they are also buying up U.S. debt and land.

China is working on becoming “the” world super power.

Raist

Yep.. and thats the most frightening part for me. When or if we pay back our loans in dollars.. well.. we cant. Google it cause Im lazy.. but Id read about the incredible amount we owe China right now. If the dollar devalues.. they own us.
I dont pretend to really grasp all of this and have to rely on articles and opinions, but it definitely appears to be a road we not only didnt have to go down, but we've been going down it with our eyes closed at 100 MPH since Obama took office with the loans and china buying our debt.

its about manipulating the dollar.if they dump the dollar ,where will they buy their food ?.i say please dump the dollar!this might devalue the dollar a little ,but could stimulate our economy by making our products cheaper over seas.seems kinda immature for a thousands of years old country.fearmongering or playing chicken?why suppose they are teaching their children english,if the dollar is weak.the chess game is in full bloom.