Wednesday, May 14, 2014

Russia, China And Iran Are Moving To Drop The US Dollar From Bilateral Trade

Russia Holds "De-Dollarization Meeting": China, Iran Willing To Drop USD From Bilateral Trade -- Zero Hedge

That Russia has been pushing for trade arrangements that minimize the participation (and influence) of the US dollar ever since the onset of the Ukraine crisis (and before) is no secret: this has been covered extensively on these pages before (see Gazprom Prepares "Symbolic" Bond Issue In Chinese Yuan; Petrodollar Alert: Putin Prepares To Announce "Holy Grail" Gas Deal With China; Russia And China About To Sign "Holy Grail" Gas Deal; 40 Central Banks Are Betting This Will Be The Next Reserve Currency; From the Petrodollar to the Gas-o-yuan and so on).

But until now much of this was in the realm of hearsay and general wishful thinking. After all, surely it is "ridiculous" that a country can seriously contemplate to exist outside the ideological and religious confines of the Petrodollar... because if one can do it, all can do it, and next thing you know the US has hyperinflation, social collapse, civil war and all those other features prominently featured in other socialist banana republics like Venezuela which alas do not have a global reserve currency to kick around.

Read more ....

My Comment: One of the reasons why the U.S. is a global superpower is because it's dollar is treated as a global reserve currency. But if countries start to move away from the US dollar .... the consequences on the U.S. can be very severe .... hyperinflation, credit lines frozen, economic collapse, unemployment .... just to name a few.

1 comment:

Unknown said...

This is the same as an attack on the mainland. I assume these 3 countries are ready for ww3 if they are taking this step.