Breaking And Not Good: China And Russia Quit U.S. Dollar. (Thanks Alot Obama)

[Jeremy]

It's a lot not alot.

 

[ekrem]

It's the most natural thing for countries to do bilateral transactions in their own currencies.
Dollar go home.

And it's not limited to Russia-China.

 

[iamwhatiseem]

This is an interesting move, considering the state and stability of the ruble. I wonder what the bigger picture looks like? China and Russia have never exactly been bosom buddies, the Russians have a long memory.

China's mad at the attempt at monetarizing the debt. Russia, well they're always happy to stick the knife in, as US does with them. I think it's just a matter of the enemy of my enemy...

I wonder. People who don't understand the bigger picture might interpret this as a Chinese and Russian statement that the ruble is stronger than the dollar (laughable), but China isn't going to do anything against its own interests just to jab a fork at us. And I highly doubt they want to end up holding ruble reserves. I'm betting there's more to this story. Just call it a hunch.

That is easy to see.
Chine is merely posturing here. I don't think anyone seriously believes China has any interest whatsoever in holding rubles. None.
Like someone stated above - even Russians themselves would rather trade in dollars.

 

[amrchaos]

absolutely. The world is awash in commodity exchange dollars. As long as everybody needs them to buy commodities demand for the dollar will be strong. But if the dollar ever loses that advantage we will see hyperinflation like never before.

Which is why China is well positioned. If the dollar loses commodity exchange status the yuan could double in value while the dollar loses 2/3 of it's value within a few months. Catapulting China way past the US in world econ clout.

Then why does China try to devalue their currency?

 

[goldcatt]

absolutely. The world is awash in commodity exchange dollars. As long as everybody needs them to buy commodities demand for the dollar will be strong. But if the dollar ever loses that advantage we will see hyperinflation like never before.

Which is why China is well positioned. If the dollar loses commodity exchange status the yuan could double in value while the dollar loses 2/3 of it's value within a few months. Catapulting China way past the US in world econ clout.

Then why does China try to devalue their currency?

Because their economy is fueled by cheap exports.

 

[loosecannon]

China's mad at the attempt at monetarizing the debt. Russia, well they're always happy to stick the knife in, as US does with them. I think it's just a matter of the enemy of my enemy...

I wonder. People who don't understand the bigger picture might interpret this as a Chinese and Russian statement that the ruble is stronger than the dollar (laughable), but China isn't going to do anything against its own interests just to jab a fork at us. And I highly doubt they want to end up holding ruble reserves. I'm betting there's more to this story. Just call it a hunch.

That is easy to see.
Chine is merely posturing here. I don't think anyone seriously believes China has any interest whatsoever in holding rubles. None.
Like someone stated above - even Russians themselves would rather trade in dollars.

I doubt China is even posturing. Russia transacts most of it's oil sales bilaterally: Poland, Ukraine, Germany, most of mainland Europe and Scandinavia get their Russian gas via bilateral agreements, and usually at reduced prices without fluxuations caused by free market price speculation.

It doesn't seem odd that China would prefer the same terms.

 

[loosecannon]

absolutely. The world is awash in commodity exchange dollars. As long as everybody needs them to buy commodities demand for the dollar will be strong. But if the dollar ever loses that advantage we will see hyperinflation like never before.

Which is why China is well positioned. If the dollar loses commodity exchange status the yuan could double in value while the dollar loses 2/3 of it's value within a few months. Catapulting China way past the US in world econ clout.

Then why does China try to devalue their currency?

Because they are still dependent on the US market to fuel their growth. But they won't always be reliant on the US.

 

[Queen]

I don't think the rest of the world sees how having a black president makes America so cool.

Racism alert.

Because being black has nothing to do with this topic.

Idiot.

 

[Queen]

All this timed with the N. Korea attack. This is terrible news and it will hurt us badly. You see, they are doing what they can to protect their own currency and economies and Obama is doing nothing to protect ours and lets not loose sight of the central role that the criminal enterprise known as the FED has played in this.

China, Russia quit dollar on bilateral trade - People's Daily Online
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 in St. Petersburg.

Two things.

What does Obama have to do with this?

And why are you reading commie news sites?

 

[Queen]

Well I guess that explains it. LOL!

 

[shintao]

I wonder. People who don't understand the bigger picture might interpret this as a Chinese and Russian statement that the ruble is stronger than the dollar (laughable), but China isn't going to do anything against its own interests just to jab a fork at us. And I highly doubt they want to end up holding ruble reserves. I'm betting there's more to this story. Just call it a hunch.

That is easy to see.
Chine is merely posturing here. I don't think anyone seriously believes China has any interest whatsoever in holding rubles. None.
Like someone stated above - even Russians themselves would rather trade in dollars.

I doubt China is even posturing. Russia transacts most of it's oil sales bilaterally: Poland, Ukraine, Germany, most of mainland Europe and Scandinavia get their Russian gas via bilateral agreements, and usually at reduced prices without fluxuations caused by free market price speculation. It doesn't seem odd that China would prefer the same terms.

Oh my! The major flaw of Capitalism and sane investors, who invest, and do not play casino royale coaster. LMAO! Of course that doesn't mean that Capitalism has FAILED, does it?

 

[Flopper]

absolutely. The world is awash in commodity exchange dollars. As long as everybody needs them to buy commodities demand for the dollar will be strong. But if the dollar ever loses that advantage we will see hyperinflation like never before.

Which is why China is well positioned. If the dollar loses commodity exchange status the yuan could double in value while the dollar loses 2/3 of it's value within a few months. Catapulting China way past the US in world econ clout.

China has no interesting in seeing the US Dollar fall in value. That would increase the cost of Chinese goods sold in the US and make them less desirable. Also they hold huge amount of US treasuries and currency. This is why the Chinese manipulate the currency to keep the US dollar strong.

I think the reason for the move is as stated, to increase trade between the two countries.