Russia dumping dollars to use to protect currency and falling oil prices (Secret US/Saudi deal to lo

a reply to: charles1952

As far as I understand it, the $$ can be as strong as it wants; that won't stop it from losing reserve currency status & destroying America with massive inflation over the next decade.

originally posted by: Eunuchorn
a reply to: charles1952

As far as I understand it, the $$ can be as strong as it wants; that won't stop it from losing reserve currency status & destroying America with massive inflation over the next decade.

You do know the US dollar is not the only reserve currency right?

With the way things are going in Russia (economy / stability) the ruble is not going to see reserve currency status anytime soon.
With the way things are going in China, in addition to their refusal to disclose financial information required by agreements, they are not going to see a reserve currency anytime soon either.

Don't want the dollar? That's fine, you can choose from the Euro, the Canadian dollar, etc etc etc.

originally posted by: Eunuchorn
a reply to: charles1952

As far as I understand it, the $$ can be as strong as it wants; that won't stop it from losing reserve currency status & destroying America with massive inflation over the next decade.

For the dollar to lose its status as one of the reserve currencies pretty much America would have to be destroyed first. Maybe your talking about its status as the primary reserve currency? Losing that would not really effect much either. Global currency reserves have quadrupled in the last decade and continue to increase. So if say the Euro became the primary then and the Dollar one of the other reserves the amount of growth would still mean more dollars being held. The only thing that would remove the dollar from a reserve currency is if the US were to collapse.

Remember all these countries that hold dollars as a reserve currency would suffer badly if the dollar were to collapse.

originally posted by: MrSpad

originally posted by: Eunuchorn
a reply to: charles1952

As far as I understand it, the $$ can be as strong as it wants; that won't stop it from losing reserve currency status & destroying America with massive inflation over the next decade.

For the dollar to lose its status as one of the reserve currencies pretty much America would have to be destroyed first. Maybe your talking about its status as the primary reserve currency? Losing that would not really effect much either. Global currency reserves have quadrupled in the last decade and continue to increase. So if say the Euro became the primary then and the Dollar one of the other reserves the amount of growth would still mean more dollars being held. The only thing that would remove the dollar from a reserve currency is if the US were to collapse.

Remember all these countries that hold dollars as a reserve currency would suffer badly if the dollar were to collapse.

Your right people are clueless what a reserve currency is and how it works. And its even funnier thinking a country can destroy anither by cjanging it. The only issue that can sink a country is capitol flight and Americans arent going to dump the dollar anytime soon. However that is not the case in Russia they have citizens hiding money in other currencies London is getting a huge amount of money from Russians as they dump thw Ruble.

I look at things a little differently.
Russia is sell their dollars partly because the investment is paying off. Buy low and sell high. No surprise.

As to the oil:
There is no US/Saudi deal. Next year the US will be the worlds largest producer of oil because of fracking.
Add to that we are not allowed to sell our oil on the world market.
Oil prices low, too bad for Russia.

a reply to: Xcathdra

a reply to: samkent

There is no US/Saudi deal.

I disagree.

originally posted by: SurrenderingAmerica
a reply to: samkent

There is no US/Saudi deal.

I disagree.

Explain the deal then please. Its one of the questions I was asking as this article is the only one I have seen allude to a deal.

Personally speaking I don't think there is a deal either. I think its nothing more than someone supporting Russia trying to pass the blame from Putin to anyone else. Ironically enough putin and Obama are great and screwing things up and then blaming anyone and everyone else for it.

a reply to: Xcathdra

Now that I’ve captured your attention.


I’m gonna say a few things - won’t take long. I really didn’t think twice about your routinely posting against Russia/Putin, almost on a methodical basis. And then it dawned on me. You’re stacking the deck on a potential future outcome.


Against my better judgement, I’m gonna make an exception just for you and flip the script. Just this once.

You & I both know that Russia & Iran’s break even points are approx $100/barrel. This ‘warning’ shot has already been implemented between U.S./Saudi Arabia. Gauntlet has been thrown down. Next phase will be the Stockholm ruling.

- In your opinion, who will win the Stockholm ruling?

a reply to: SurrenderingAmerica

right...

Russia line is $96 a barrel.

there is no evidence of US / Saudi collusion and has not been discussed in anything except the zero hedge article.

As for the shots at me personally thats nothing new. You guys fail day after day to support your claims. You cant refute the facts so all you have left is the typical Russian attack the person and attempt to discredit in hopes people wont listen.

Since this website is not located in Russia and has an international audience you are going to have to resort to something other than the putin blame game to get it to work.

You guys love to go after me yet you always seem to forget to engage the topic and refute it.


As for the Stockholm ruling I think Ukraine has a fair chance of a ruling in their favor. Even more so with the way Russia has used its gas supplies to Ukraine to try and control the country. Further I think Ukraine has a case about what it woes Russia since Russia invaded Ukraine and illegally annexed Crimea. That action alone was estimated at over 20 billion in losses to Ukraine. It also does not take into account the gas reserves Russia gained when it illegally annexed Crimea. How can Russia charge Ukraine for gas supplies Russia took back?

a reply to: Xcathdra

there is no evidence of US / Saudi collusion and has not been discussed in anything except the zero hedge article.

It's not a brain buster. A common ATS query will yield a healthy amount of results and discussions. Come on son.
As Brent Crude Drops Below $90, Oil Stocks Tumble And Eyes Turn To Saudis

As for the shots at me personally thats nothing new. You guys fail day after day to support your claims. You cant refute the facts so all you have left is the typical Russian attack the person and attempt to discredit in hopes people wont listen.

Since this website is not located in Russia and has an international audience you are going to have to resort to something other than the putin blame game to get it to work.

You guys love to go after me yet you always seem to forget to engage the topic and refute it.

^^ Didn't read. Never brought that up - you'll have to settle those inner demons at another time.

As for the Stockholm ruling I think Ukraine has a fair chance of a ruling in their favor. Even more so with the way Russia has used its gas supplies to Ukraine to try and control the country. Further I think Ukraine has a case about what it woes Russia since Russia invaded Ukraine and illegally annexed Crimea. That action alone was estimated at over 20 billion in losses to Ukraine. It also does not take into account the gas reserves Russia gained when it illegally annexed Crimea. How can Russia charge Ukraine for gas supplies Russia took back?

So basically, Stockholm court will rule in Russia's favor?

. . . and lets take this one step further:


- What do you think would happen IF Stockholm court decided in Russia's favor?

a reply to: SurrenderingAmerica

You did read it since it was in response to your personal attack.. nice try though.

Stockholm ruling -
Do you think either side will abide by the result? Russia is at a disadvantage for the manner they have used the gas to control Ukraine.

Its like Russia's threat against France for terminating the warship contracts.Russia has already stated if the contract is canceled they will sue for breach of contract. The issue with that line is there is an arbitration clause in the contract, which will prevent Russia for filing suit.

Russia, if they dont get their way, will then file suit in Russian courts to get what they want. Luckily the French company has no assets in Russia, requiring Russia to submit the Russian order to seize property to the French legal system for enforcement.

Secondly the contract cannot hold the company responsible for actions occurring outside of their control - like sanctions.

Something I dont see happening.

I disagree that the Americans arent going to dump the dollar. I think the fed will be audited and all kinds of intrigue follow, along with some sort of revolution no matter how small... people upon realising that without a gold/resource standard their paper is worthless will demand a more stable currency.

Maybe not. But I think the implementation of BRICS is going to shake people's faith, and have effects more far-reaching than we think.

a reply to: Ridhya

They just did an audit last year in fact a slight scandal broke out because of it. Turns out they were propping up foreign banks including Russia and north Korea. And Congressman thought this shouldnt happen without congressional approval.So in your scenario an audit which just occurred last year was supposed to cause people to dump the dollar hmmmmmm. So do you think maybe your sources were wrong and dont understand world economics??

a reply to: Ridhya

I think the fed will be audited and all kinds of intrigue follow, along with some sort of revolution no matter how small... people upon realising that without a gold/resource standard their paper is worthless will demand a more stable currency.

Here you go, the latest audit.

www.federalreserve.gov...

That might not be the one dragonridr was referring to, but here is a good article about the one that I think he is talking about...

The Fed Audit
Thursday, July 21, 2011
The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."

www.sanders.senate.gov...

a reply to: dragonridr
a reply to: tsurfer2000h
That is from 2011, I was referring to the more recent one from Ron Paul and his son
Wall Street Journal

Hasnt happened yet

a reply to: Ridhya

That is from 2011, I was referring to the more recent one from Ron Paul and his son
Wall Street Journal

The thing is this bill has only made it through the House, now it has to go to the Senate where it may not make it out.

So the audit I posted the article for is the latest one they had, and even if this bill does go through it still won't cause anything near to what you think will happen.

originally posted by: tsurfer2000h
a reply to: Ridhya

That is from 2011, I was referring to the more recent one from Ron Paul and his son
Wall Street Journal

The thing is this bill has only made it through the House, now it has to go to the Senate where it may not make it out.

So the audit I posted the article for is the latest one they had, and even if this bill does go through it still won't cause anything near to what you think will happen.

See this isnt even a financial audit thats done every year this is a policy audit. This is a way for congress to make sure they can control fed policy. What the bill does is simply allow congress to get a yearly report on policy. This is normally only given to the president and is a power grab by congress.

The Russian Central Bank Admits Defeat

Russian Central Bank head Elvira Nabiullina has admitted that if currency markets continue to turn against the ruble the bank "won’t be able to restrain them."

Despite the central bank spending $6 billion of Russia's foreign exchange reserves in only 10 days to prop up the value of the ruble, it continued its slide against the dollar on Monday.

The admission that central bank is unable to defend a fixed exchange rate for the ruble against heavy selling of the currency by international investors demonstrates the extent of the country's problems as it battles falling oil prices and a weakening economy.

But it's unlikely to mark the end of state interventions in the market. Russian media report Nabiullina as saying:

I would like to stress that we’re not going to quit the foreign exchange market completely. We’re changing, so to speak, the nature of our participation in the foreign currency market. We’ll make interventions, if there are risks to financial stability.

The central bank is undergoing stress tests to gauge the effects of further sharp falls in oil prices after Brent crude oil traded on Monday as low as $87 a barrel, its lowest point in 18-months. Oil exports are crucial for the Russian economy, particularly with international sanctions on the country's financial and commodities sectors weighing on growth.

Click link for remainder of article.


Ruble Risks Betrayal at Home in Nation’s Rush for Dollars

More Russians are keeping their cash in dollars and euros as the ruble falls to records amid central bank efforts to maintain control over the pace of the decline.

The number of people with foreign-currency holdings rose in September from August, Bank of Russia said in its inflation report published Oct. 10. OAO Sberbank, Russia's biggest lender, had its first drop in retail deposits since May last month, while the premium to swap rubles for dollars climbed to a record at the end of last week, data compiled by Bloomberg show.

click link for remainder of article.

Chinese lenders grow wary of Russia - FT.com

When Chinese premier Li Keqiang and his Russian counterpart Dmitry Medvedev start talks on Monday that are expected to culminate in the signing of more than 50 deals, it will be the latest demonstration of hopes that China is...