China, Russia quit dollar

[Kevin_Kennedy]

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.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.

"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.

China, Russia quit dollar

And all those dollars are coming home.

 

[uscitizen]

Duplicate thread Kevin

 

[Kevin_Kennedy]

Duplicate thread Kevin

I checked the Active Topics and didn't see one. Well the mods can merge them.

 

[Kevin_Kennedy]

And now I see it, though it would be helpful if people would put things in the proper forums.

 

[iamwhatiseem]

You do realize this is just trade between the two right?
Also - this is pomp on China's part.
There is no way China would make serious moves to tie their currency with the ruble.

 

[Kevin_Kennedy]

You do realize this is just trade between the two right?
Also - this is pomp on China's part.
There is no way China would make serious moves to tie their currency with the ruble.

For now it's trade between the two. It's a step away from the dollar however, and how long before other countries realize the dollar isn't what it used to be and turn away?

 

[iamwhatiseem]

You do realize this is just trade between the two right?
Also - this is pomp on China's part.
There is no way China would make serious moves to tie their currency with the ruble.

For now it's trade between the two. It's a step away from the dollar however, and how long before other countries realize the dollar isn't what it used to be and turn away?

Nah. China is just postering. They will do plenty of things like this in the coming months. This is their little "protest" to America adding tarrifs to some of their products and "daring" to want fairness in trade with them.
Also - with the N.Korean situation right now, we will absolutely see China make such gestures to support their little evil puppet that is a nice attention grabber that keeps eyes off of them

 

[Kevin_Kennedy]

You do realize this is just trade between the two right?
Also - this is pomp on China's part.
There is no way China would make serious moves to tie their currency with the ruble.

For now it's trade between the two. It's a step away from the dollar however, and how long before other countries realize the dollar isn't what it used to be and turn away?

Nah. China is just postering. They will do plenty of things like this in the coming months. This is their little "protest" to America adding tarrifs to some of their products and "daring" to want fairness in trade with them.
Also - with the N.Korean situation right now, we will absolutely see China make such gestures to support their little evil puppet that is a nice attention grabber that keeps eyes off of them

Well their "posturing" could lead to some serious consequences for the dollar.

 

[loosecannon]

could lead to or not. In any case bilateral agreements are not new, and China has lots of them already.

Russia also has had bilateral agreements regarding the sale of it's oil and gas across europe since they SU collapsed.

 

[Samson]

You do realize this is just trade between the two right?
Also - this is pomp on China's part.
There is no way China would make serious moves to tie their currency with the ruble.

For now it's trade between the two. It's a step away from the dollar however, and how long before other countries realize the dollar isn't what it used to be and turn away?

"other countries....turn away?"

You mean trade in their own currency? Frankly, I wasn't aware that this was such an extraordinarily strange practice.

 

[Kevin_Kennedy]

You do realize this is just trade between the two right?
Also - this is pomp on China's part.
There is no way China would make serious moves to tie their currency with the ruble.

For now it's trade between the two. It's a step away from the dollar however, and how long before other countries realize the dollar isn't what it used to be and turn away?

"other countries....turn away?"

You mean trade in their own currency? Frankly, I wasn't aware that this was such an extraordinarily strange practice.

The dollar is the reserve currency of the world. This means that nations largely trade in U.S. dollars. You might say it's an international dollar-standard. If countries begin to dump their dollar-reserves to trade in their own currencies those dollars are going to come back to the United States.

 

[Procrustes Stretched]

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.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.

"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.

China, Russia quit dollar

And all those dollars are coming home.

Is this what the right wing was praying for?

 

[Revere]

Keep crashing the currency, Obama.

 

[Procrustes Stretched]

Keep crashing the currency, Obama.

still praying for America to suffer so the GOP can beat Obama?

 

[Revere]

Keep printing money to pay for your worthless debt, Barack.

 

[Samson]

For now it's trade between the two. It's a step away from the dollar however, and how long before other countries realize the dollar isn't what it used to be and turn away?

"other countries....turn away?"

You mean trade in their own currency? Frankly, I wasn't aware that this was such an extraordinarily strange practice.

The dollar is the reserve currency of the world. This means that nations largely trade in U.S. dollars. You might say it's an international dollar-standard. If countries begin to dump their dollar-reserves to trade in their own currencies those dollars are going to come back to the United States.

Well, reserve currency of "the world" is a little vague.

It is the reserve currency of many enemies, Iran, Venezuela, and potential enemies, Saudi Arabia, Russia, China who all have the US by the balls.

Its probably a good idea for them to have less influance over US.

 

[Toro]

I think this is a positive actually.

About a quarter of the world's trade is done in non-dollar currencies, though most of that trade is between developed countries. They don't use the dollar because they trust each others' banking systems. Trading yuan for rubles will increase the imperative for each country to improve their banking systems - and hopefully the rule of law, which is implied - which is only good.

 

[Kevin_Kennedy]

I think this is a positive actually.

About a quarter of the world's trade is done in non-dollar currencies, though most of that trade is between developed countries. They don't use the dollar because they trust each others' banking systems. Trading yuan for rubles will increase the imperative for each country to improve their banking systems - and hopefully the rule of law, which is implied - which is only good.

I hadn't thought of it like that, but I did think this was good for Russia and China. Dumping dollars can only be a good thing for them because of the Fed's policies. My point is that it's not good for the U.S.

 

[Procrustes Stretched]

"other countries....turn away?"

You mean trade in their own currency? Frankly, I wasn't aware that this was such an extraordinarily strange practice.

The dollar is the reserve currency of the world. This means that nations largely trade in U.S. dollars. You might say it's an international dollar-standard. If countries begin to dump their dollar-reserves to trade in their own currencies those dollars are going to come back to the United States.

Well, reserve currency of "the world" is a little vague.

It is the reserve currency of many enemies, Iran, Venezuela, and potential enemies, Saudi Arabia, Russia, China who all have the US by the balls.

Its probably a good idea for them to have less influance[sic] over US.

The sky is falling!!!

 

[Baruch Menachem]

I think this is a positive actually.

About a quarter of the world's trade is done in non-dollar currencies, though most of that trade is between developed countries. They don't use the dollar because they trust each others' banking systems. Trading yuan for rubles will increase the imperative for each country to improve their banking systems - and hopefully the rule of law, which is implied - which is only good.

This will be difficult, as the Russian have no need of Yuan, and the Chinese don't want roubles.