PDA

View Full Version : Int'l Issues China And Russia Hint At Dropping US Dollar


KILLER_CLOWN
11-01-2008, 11:39 PM
China And Russia Hint At Dropping US Dollar


Vladimir Putin joins scores of other heads of state in calling for complete overhaul of global financial system

Steve Watson
Infowars.net
Friday, Oct 31, 2008

Reports from the Russian media suggest that the country is on the verge of an agreement with China to renounce the US dollar and stop using it in international settlements.

“The recent meeting between Russian Prime Minister Vladimir Putin and his Chinese counterpart, Wen Jiabao, created a financial sensation,” reports RIA Novosti.

“Wen said that the two nations could withstand the global financial crisis if they joined forces; Putin urged him to go farther and stop using U.S. dollars in Russian-Chinese settlements.”

Russia Today reports that Putin has also called for a complete overhaul of the world’s financial system to “end monopoly in world finance”.

The move comes as the dollar is rebounding and gaining strength for the first time in months, leading some to suspect the move is part of a wider political agenda.

Igor Nikolayev, chief strategic analyst at FBK private auditing firm told RIA Novosti “I think it was a political statement rather than an economic decision. There is a dominant public sentiment that the United States is the source of all evil, so let’s stop using the dollar,”.



Despite recent gains, negative dollar sentiment has now become global. Over the past year the dollar has hit all time lows, mainly due to continued rate cuts and injections of liquidity by the Federal Reserve.

China has threatened repeatedly to use the so called “nuclear option” and liquidate its vast holding of US treasuries in response to continued pressure on the Communist state to force a yuan revaluation. According to a reports earlier this year, such an event “could trigger a dollar crash” which would now have disastrous consequences for an American economy already firmly in a recession.

Questions remain, however, over what would take the place of the dollar as an international currency, with China not likely to accept use the ruble or the Euro and Russia unlikely to agree to use the yuan.

Vladimir Putin’s call for a new financial world order echoes that of British Prime Minister Gordon Brown, who wants dozens of world leaders to meet at a “Bretton Woods II” summit where they would rewrite the rules of international finance encompassing “very large and very radical changes”.

http://www.prisonplanet.com/china-and-russia-hint-at-dropping-us-dollar.html

Logical
11-01-2008, 11:53 PM
Unfortunately not a surprise.

cdcox
11-01-2008, 11:55 PM
Disturbing.

bango
11-02-2008, 12:22 AM
China And Russia Hint At Dropping US Dollar


Vladimir Putin joins scores of other heads of state in calling for complete overhaul of global financial system

Steve Watson
Infowars.net
Friday, Oct 31, 2008

Reports from the Russian media suggest that the country is on the verge of an agreement with China to renounce the US dollar and stop using it in international settlements.

“The recent meeting between Russian Prime Minister Vladimir Putin and his Chinese counterpart, Wen Jiabao, created a financial sensation,” reports RIA Novosti.

“Wen said that the two nations could withstand the global financial crisis if they joined forces; Putin urged him to go farther and stop using U.S. dollars in Russian-Chinese settlements.”

Russia Today reports that Putin has also called for a complete overhaul of the world’s financial system to “end monopoly in world finance”.

The move comes as the dollar is rebounding and gaining strength for the first time in months, leading some to suspect the move is part of a wider political agenda.

Igor Nikolayev, chief strategic analyst at FBK private auditing firm told RIA Novosti “I think it was a political statement rather than an economic decision. There is a dominant public sentiment that the United States is the source of all evil, so let’s stop using the dollar,”.



Despite recent gains, negative dollar sentiment has now become global. Over the past year the dollar has hit all time lows, mainly due to continued rate cuts and injections of liquidity by the Federal Reserve.

China has threatened repeatedly to use the so called “nuclear option” and liquidate its vast holding of US treasuries in response to continued pressure on the Communist state to force a yuan revaluation. According to a reports earlier this year, such an event “could trigger a dollar crash” which would now have disastrous consequences for an American economy already firmly in a recession.
Questions remain, however, over what would take the place of the dollar as an international currency, with China not likely to accept use the ruble or the Euro and Russia unlikely to agree to use the yuan.

Vladimir Putin’s call for a new financial world order echoes that of British Prime Minister Gordon Brown, who wants dozens of world leaders to meet at a “Bretton Woods II” summit where they would rewrite the rules of international finance encompassing “very large and very radical changes”.

http://www.prisonplanet.com/china-and-russia-hint-at-dropping-us-dollar.html

When did this start? All that we hear is that we are not in one and everything is going to be fine.

KILLER_CLOWN
11-02-2008, 12:23 AM
Few Seeing Usual Benefits of Rising Dollar

Normally, Americans Would Travel More and Imports Would Jump, but Caution Rules the Day

A strong dollar typically sets Americans to spending, but "no one is buying anything from anyone," one British expert said. (By Tomohiro Ohsumi -- Bloomberg News)
Enlarge Photo

Who's Blogging» Links to this article
By Mary Jordan and Karla Adam
Washington Post Foreign Service
Saturday, November 1, 2008; Page A09

LONDON -- The value of the U.S. dollar has soared with unheard-of speed against many currencies in recent weeks, but the global financial crisis has altered the usual effects of such a spike.

Normally a rising dollar means more Americans traveling abroad and foreign countries exporting more goods and services to the United States. But this time, even though the dollar has gained about 25 percent against the euro and the British pound since early August, few analysts said they expect to see that happening anytime soon.

As Americans face recession and rising joblessness, fewer are tempted to take overseas vacations or buy more imported goods. "In an ideal world, the soaring dollar sounds wonderful" for British exports, "but quite frankly no one is buying anything from anyone," said Howard Wheeldon, senior strategist at BGC Partners in London.

At the same time, the speed of the climb has brought debt problems almost overnight to many struggling countries. Foreign governments and individuals who borrowed in dollars are finding that the corresponding rapid decline of their currencies against the dollar has made it harder, and in some cases impossible, to buy enough dollars to keep up loan payments.

The International Monetary fund's emergency talks, including those with Iceland, Hungary and Ukraine, have largely involved nations whose banks are facing huge amounts of unpaid debts that are driven in part by the mismatch of local currency income and foreign currency debt. Also, the euro has risen against Eastern European currencies.

In Ukraine, where the hryvna has fallen to its lowest value since coming into use in 1996, so many people have rushed to convert their savings into dollars that many exchange offices ran out. About $3 billion worth of local currency has been turned into dollars and euros, according to Sergiy Kruglyk, a spokesman for the National Bank of Ukraine.


The dollar has strengthened significantly against the Indian rupee, the Polish zloty -- nearly every currency except the Japanese yen.

While it may not make U.S. consumers rush out and buy cheaper imports, analysts said it may make U.S. exports even harder to sell, because the strong dollar tends to make them more expensive to foreigners. Also, tourists may be less tempted to visit the United States -- already there are signs that Canadians who frequently shopped in U.S. border cities are staying home because goods are suddenly far pricier for them.

Like gyrations in world stock markets, the speed and unpredictability of currency fluctuations have caught many by surprise. "We have really not seen volatility of this magnitude -- it's jaw-dropping," said George Davis, chief foreign exchange analyst for RBC Capital Markets in Toronto.

Analysts attribute the rise of the dollar to a combination of factors, including that investors in hard-hit emerging markets are increasingly selling local shares and retreating into dollars, which are still widely seen as safer than most currencies.

Alex Dunn, senior account manager at Caxton FX, a foreign exchange firm that has seen a 400 percent surge in transactions, attributed the rush to the dollar to the idea that while "America led us into the global recession, they will lead us out."

Wheeldon offered a similar view. "When people think, 'Where should I put my money?' and they see things like Iceland's currency falling off the cliff, they say, 'Well, you have to put your money somewhere, why not the U.S. dollar?' "

http://www.washingtonpost.com/wp-dyn/content/article/2008/10/31/AR2008103103407.html?hpid=topnews

Ari Chi3fs
11-02-2008, 12:53 AM
Oh i wonder what they will go to? Perhaps the Amero? Oh wow... Shocker.

Rain Man
11-02-2008, 01:02 AM
I wonder if this means they'll stop counterfeiting our twenties.

KILLER_CLOWN
11-02-2008, 01:10 AM
Oh i wonder what they will go to? Perhaps the Amero? Oh wow... Shocker.

Yes, some of us have seen this coming for a long time say hello to the North American Union.

bango
11-02-2008, 04:49 PM
Yes, some of us have seen this coming for a long time say hello to the North American Union.

Is the NAU going to be a new nation? Is is just going to be like the EU and for economic purposes? Is the EU actually a nation?

Hydrae
11-02-2008, 05:04 PM
Is the NAU going to be a new nation? Is is just going to be like the EU and for economic purposes? Is the EU actually a nation?

I think it will be very similar to the EU, it is basically just an economic designation.

I also believe this is why illegal immigration is not getting the play that the common American seems to be asking for. Within the next couple of years it may be a moot point, the Mexicans won't be illegal any more! :)

BucEyedPea
11-02-2008, 05:40 PM
I think it will be very similar to the EU, it is basically just an economic designation.
I don't think so. One of the reasons our own Articles of Confederation were done away with was so Congress could regulate interstate commerce and have the political power to do so. That is enforce it by law. This made laws more uniform, prevented tariffs and trade wars which were occurring between the states.

You need to have some political interdependence and unification for absolute free trade. Already, under nafta ( as well as gatt, wto) these arrangements are overriding our national and state laws with businesses unable to appeal to the SC if they don't agree with decisions. That means our sovereignty, with a subsequent loss of rights that we are blessed with, will be eroded in a piecemeal fashion by unelected bureaucrats.

I saw brisket at the supermarket the other day that said "Product of the United States, Canada and Mexico." I could not tell which country it was from which I'd want to know.

The fallacy is that setting up such huge bureaucracies isn't even necessary to have free trade. The three countries just have to lower or abolish tariffs.

There's no way in hell, judging from history, that this arrangement will stay limited to just trade. It can't. That and such things expand. Govt's tendency is to grow. Bigness will mean more corruption too.


I also believe this is why illegal immigration is not getting the play that the common American seems to be asking for. Within the next couple of years it may be a moot point, the Mexicans won't be illegal any more! :)
I think that has something to do with why there is no real care to fix that—at least now I do.