5 votes

Are China and Russia Moving Against the Dollar?

China and Russia

28:10-33:00 Discussion of what can throw off the Fed's plans. Russia and China have been buying enormous amounts of gold in the past few years. Both countries are making plans to reduce their reliance on the US dollar. This would have the effect of reducing demand for the dollar and causing price inflation in the United States. Reduced dollar demand would impact the value of Russia's and China's dollar reserves, but the increase in value of their own currencies and gold reserves could more than offset those declines. Discussion of Russia's oil deal with Iran. Russia doesn't need oil! They are probably doing the deal to test non dollar deals. Unlike smaller countries like Iraq and Libya, the U.S. can't force Russia or China to accept the US dollar with out a major war.

http://smaulgld.com/are-russia-china-moving-against-dollar/ (with additional charts and links)


http://youtu.be/Ml-62E2WyD8




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This is a much bigger story than is being reported

Europe did not go along with the US in its quest to bomb Syria and they are not going along with sactioning Russia
http://www.zerohedge.com/news/2014-04-11/putin-tells-europe-...

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This is the early stages of a

This is the early stages of a secondary system. Both Russia and Chine signed a deal with Japan to trade outside the dollar, and China signed a deal with Australia to trade outside the dollar. That being said, it is still only secondary markets.

Most of what China sells are to countries which are not part of their agreements, and therefore, they still have the need to trade with the dollar. Even China's deal with Japan is only a limited trade agreement, therefore the majority of their trade is still being done in US Dollars. However, this is creating a structure to prevent a total global economic collapse when or if the US dollar collapses. These agreements with China, Russia, and others are more like a fail-safe for global trade.

This will never overtake the US dollar unless the IMF, BIS, and World Bank want it to, because all of these countries are equally controlled by the same people controlling the US.

Good analysis-the move away from the dollar

doesn't have to be complete for it to harm the US. If the US. dollar loses 5-10% of international transactions, that would have an immediate impact on demand for dollars and undercut its value and cause the price of imports to the US (we are a net importer) to increase causing price inflation

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To Answer Your Question Above:

"Are Russia and China moving against the dollar?"

The word "Sovereignty" must be fully understood.

A sovereign country can make its own laws, use its own money, and not agree with other sovereign countries mandates.

The Bretton Woods agreement was an agreement between sovereign countries to use only U.S. dollars redeemable in Gold for international monetary settlements.

Since ex President Nixon changed the agreement Aug. 15, 1971 by no longer making U.S. dollars redeemable in Gold, the original agreement is very possibly now null and void.

Therefore, Russia and China can now choose to make their own agreements, concerning international monetary settlements.

"BUT", beware of powerful international bankers !!!!!

beesting

You are right- Nixon ripped up the Bretton Woods agreement

on live television!

On August 15, 1971, President Richard Nixon in a nationally televised speech unilaterally and without warning ripped up the Bretton Woods agreement. In his address, Mr. Nixon announced that he was “temporarily” suspending the convertibility of the dollar into gold. That temporary suspension is still in effect. Nixon justified his action as necessary to protect the dollar against nameless “international speculators” who held the dollar “hostage” and to help the United States worker.

Mr. Nixon also attempted to dispell the “bugaboo” that taking the U.S. dollar off the gold standard would result in a devalued dollar by assuring the nation that “your dollar will buy just as much tomorrow as it does today.” That may have been technically correct, but it was not true that a dollar on August 15,1971 would buy as much as it did on that day as it would on August 15, 1973 or August 8, 1974, the day Nixon resigned, or on August 15, 1979, as inflation raged throughout the 1970′s.

http://smaulgld.com/why-saudi-arabia-matters-in-helping-to-k...

That is why Russia is saying any non dollar deal they do will comply with UN law and not in accordance with US demands

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