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China and Russia abandon dollar

Discussion in 'Politics, Elections & Legislation' started by wireguy, Dec 3, 2010.

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  1. wireguy

    wireguy TS Member

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    From THE PATRIOT POST:


    Around the World: China and Russia Abandon Dollar

    With little fanfare, China and Russia last week announced their intent to drop the U.S. dollar as their currency of choice for bilateral trade and instead use their own currencies. "About trade settlement," said Russian Prime Minister Vladimir Putin at a joint news conference with Chinese Premier Wen Jiabao, "we have decided to use our own currencies."


    China Daily reports that Chinese experts think the decision "reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies." While experts seem quick to assure that no challenge to the dollar is in the offing, they point to the "faults of a dollar-dominated world financial system" and the "risks the dollar represents." There is no doubt that the financial crisis played no small part in the Russian-Chinese decision.

    The duo's departure from the dollar should hardly come as a surprise. After all, it's the consequence of our piling on astronomical debt -- and then piling on still more. The U.S. is no longer the stable trading partner it has always been. Although Russia and China may not be declaring war on the dollar just yet, when the world's largest Communist gulags realize that their currencies are more stable than ours, it threatens the dollar's reserve currency status. Those Obama deficits are taking his intended toll.
     
  2. otnot

    otnot Active Member

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    They are also selling their holdings of US bonds and buying gold at an alarming rate.
     
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