China and Russia Quit the Dollar

Makalakumu

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http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htm

St. Petersburg, Russia - 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.

This is a very dangerous time for the world, IMO. North Korea and South Korea start lobbing shells. Two of the most powerful countries in the world tie close bonds and drive a couple of stakes into the US economy. Is WWIII around the corner? Or is this simply the end of America's economic hegemony.
 

Bill Mattocks

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Doesn't mean a thing. Relax. The two Koreas are just doing what they always do. Nothing new here. Russia and China drop dollar? Not exactly. They just agreed that they will trade WITH EACH OTHER using their own currencies. When the Renminbi gets around to being traded in Russia, which will be any day now, they say (but you know what they say).

http://www.businessinsider.com/china-and-russia-drop-dollar-for-bilateral-trade-2010-11

Should you be scared? Is this the end of the dollar? Meh, not really. This is what everyone wants to see happen; we want the yuan to become a real currency used in trade, just like many other countries currencies are.

Read more: http://www.businessinsider.com/chin...lar-for-bilateral-trade-2010-11#ixzz16Ei9xByo
http://www.businessinsider.com/chin...lar-for-bilateral-trade-2010-11#ixzz16Ei9xByo


The world won't end by Christmas. The US will remain the sole remaining superpower, militarily and economically. The Chinese have so much hard currency invested in our debt that if they sink our economy, theirs ends the same day. Yawn, yawn, yawn.
 

Bruno@MT

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The world won't end by Christmas. The US will remain the sole remaining superpower, militarily and economically. The Chinese have so much hard currency invested in our debt that if they sink our economy, theirs ends the same day. Yawn, yawn, yawn.

They won't sink it. They'll just make it subservient to theirs.
Item by item, the dollar will lose significance. The Chinese are patient. 4 years is a long time for US politics. The Chinese think in decades or more.

The US is indeed a global superpower in military terms, and that is not likely to change.
But for all that might, the US doesn't 'own' the global economy anymore.
 

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