Russia and Iran Now OFFICIALLY Talking of Dumping Dollar for International Trade

[Octoldit]

Saturday, October 17, 2009

After the Independent reported that Middle Eastern oil producers, plus China, Japan and France have all agreed to start trading oil using a basket of currencies - instead of the dollar - starting in 9 years, spokesmen for those governments denied it.

The Independent's reporter explained why the governments were denying the rumor.


But now the governments themselves are starting to admit that they are switching out of the dollar.

For example, Russian Prime Minister Vladimir Putin said Wednesday that Russia is ready to consider using the Russian and Chinese national currencies instead of the dollar in bilateral oil and gas dealings. As Russia's newspaper RIA Novosti writes:


Russia is ready to consider using the Russian and Chinese national currencies instead of the dollar in bilateral oil and gas dealings, Prime Minister Vladimir Putin said on Wednesday.

The premier, currently on a visit to Beijing, said a final decision on the issue can only be made after a thorough expert analysis.

"Yesterday, energy companies, in particular Gazprom, raised the question of using the national currency. We are ready to examine the possibility of selling energy resources for rubles, but our Chinese partners need rubles for that. We are also ready to sell for yuans," Putin said.


And Iran's Press TV reports that Iran wants to completely drop the dollar from its foreign exchange:


Since October 2007, Iran has received 85 percent of its oil revenues in currencies other than the US dollar and Tehran is determined to find a substitute for the US dollar for the rest of its 15 percent of oil revenues, the report added.

This story is confirmed by the Tehran Times, which notes:



In line with this plan, Iran has informed Japan that it should use the yen instead of dollars to pay for the oil it buys from the Islamic Republic.

In addition, Iran has decided to open a bourse for oil and gas transactions in currencies other than the U.S. dollar, especially the euro.
As I have repeatedly noted, many countries have been moving out of the dollar for years. The process is simply accelerating.

LINK:Russia and Iran Now OFFICIALLY Talking of Dumping Dollar for International Trade ~ Washington's Blog

 

[truthsaga]

Another Peter Schiff forecast was correct!

 

[adeel_sami]

Yeah, everyone has a right to stem losses and the deteriorating USD is a major concern ..

 

[Neubarth]

As I keep on telling you guys, the Dollar is just a means of exchange. If the dollar goes down, like it has, it is prefectly normal. Likewise, it is normal for it to go up.

The dollar keeps going up against the Japanese Yen. That makes Japanese products less expensive in the United States. Japanese cars would be less expensive, so you would be forced to buy Nissans and Toyotas instead of Fords because the Japanese cars would cost far, far less. The dollar going up like that against the yen is a Wonderful Thing for American consumers and Japanese employment.

The dollar going down against the Euro is also a wonderful thing. That would make American products less expensive against the Euro and our production would ramp up and we would eliminate the balance of trade deficit.

Europe, of course would not be able to buy their own products and they would suffer massive layoffs of production workers while employment in America would soar.

The Dollar right now is in a normal trading range with the Euro and the Yen. To confirm that, just go back five years on a chart and see the valuations then. Minor fluctuations like this in currency exchange are to be expected. It means nothing for the long term, as Europe and South America can not afford to let American products become too cheap as that would hurt their own economies.

 

[CrusaderFrank]

My brother just got back from Woodbury Commons, a factory outlet for many major retailer and he reports that they've jacked up their prices because most opf the buyers are foreigners trying to take advantage of our depreciated currency.

 

[Neubarth]

The true strength of a country rests in its ability to manufacture product that can sell in foreign markets. The United States is the leading manufacturing country in the world. We are also the leading agricultural country in the world, though present politicians are trying to destroy that capacity. We need to get rid of those politicians and return to being preeminent in all things as regards world trade.

 

[Paulie]

The true strength of a country rests in its ability to manufacture product that can sell in foreign markets. The United States is the leading manufacturing country in the world. We are also the leading agricultural country in the world, though present politicians are trying to destroy that capacity. We need to get rid of those politicians and return to being preeminent in all things as regards world trade.

Weill you just make up your damn mind?

Is this the greatest depression ever that's going to kill us all like you normally talk about, or today are you going with "we'll be ok"?

You covered your shorts, didn't you?

 

[Neubarth]

I have been in DIA for a long time. I am going short tomorrow morning as I expect the market to tank. If I am wrong, I will pull my short position and take a loss. I have done that now two times but made money in July. I am ahead in the game because of the DIA's. If I were to try to make money by shorting the market, I'd have to admit that my guessing ability seems to be wrong 67 percent of the time. Quite frankly, that sucks.

Now, as regards the capacity of the US manufacturing and agricultural production to keep this country solvent. I have been telling people this for many a year. I love to see news where this country or that country is trying to harm the dollar, because I know that a lower dollar is exactly what we need to make American products less expensive in the world's markets and that will put Americans back to work. Of course the other industrial countries will not allow us to lower the value of the dollar because they do not want the competition as it would wreck their economy.

Time will tell what happens in that regard.

I would love to see the dollar fall.

It would be a good thing for America.

Now, as regards a depression. We are "in one." So is most of the rest of the world. China is lying like hell about their "economic recovery" How do I know this? Simple I am an old naval officer. As I have said before on this board, if a country like China is not shipping product it is not making big money.

China is not shipping product like they used to. To see international shipping look at the Baltic Dry Index and you will see that it is down over 70 percent from two years ago. That means that there is a dirth of ships carrying cargo. No cargo = no sales = no profit = fugged up Chinese economy (no matter what they say.)

I live in California (San Diego to be precise. We are a shipping port, but are small compared to Long Beach, Los Angeles or Oakland.) I just got some numbers on those Big Three Calif ports. These numbers are just for container shipping, but they show what is going on.

Port of Long Beach inbound container traffic was down 19.4% for the month of September which is down 21.7% year to date.

Port of Los Angeles shows September inbound going down 15.82% and for the year down 17.49%.

Interestingly, the Port of Oakland is reporting year to date, they're only down 11.6%.

Economically, things really suck.