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De-Dollarization Accelerates - China/Russia Complete Currency Swap Agreement

De-Dollarization Accelerates - China/Russia Complete Currency Swap Agreement

Tyler Durden's pictureSubmitted by Tyler Durden on 08/09/2014 14:21 -0400

The last 3 months have seen Russia's "de-dollarization" plans accelerate. First Gazprom clients shift to Euros and Renminbi, then the UK signs currency swap agreements with China, then NATO ally Turkey cuts ties and mulls de-dollarization, Switzerland jumps in the currency swap agreements, and BRICS create their own non-US-based funding vehicle, and then finally this week, Russia's oligarchs have shifted cash holdings to Hong Kong. But this week, as RT reports, Russian and Chinese central banks have agreed a draft currency swap agreement, which will allow them to increase trade in domestic currencies and cut the dependence on the US dollar in bilateral payments. “"The agreement will stimulate further development of direct trade in yuan and rubles on the domestic foreign exchange markets of Russia and China," the Russian regulator said.

Read more: http://www.zerohedge.com/news/2014-08-09/de-dollarization-ac...

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Yes.....I watch this issue closr than any other...

And who is really holding all the cards?

Who could become the new economic superpower by moving away from NATO and the dollar?

Answer: Germany!

If Germany were to leave NATO and join the Brics, Germany would become the head of the Brics and would shake off the Eurozone which is a loser for Germany.

Yes, Germany could become the new power of the world. And if Germany goes...the Eurozone is done. And the Saudi's would not be far behind. And that would be the end of US hegemony.

$ drop

A $ drop would mean imports would become more costly and harder to afford. As a consequence, domestic production opportunities ensue. Is that a bad thing for all those who have seen their jobs shipped oversees?

The US is a large country, a vast territory, 400 million people and counting, diversified production capabilities, technically proficient, resources rich and the capability to be energy independent if not an energy exporter.

See there are enough people with demands for consumption. It is just a matter of when and how these demands are met.

I am not so sure these doomsday scripts neccesarily will play out the way some might now envision, although it is highly entertaining.

.. and as the dollar

.. and as the dollar collapses, the Lords of the US (Zionist) Regime will grow more desperate.

Expect more insane outbreaks of sponsored terrorism and false flags .. all around the periphery of Russia-China.

Slow or Quick collapse?

I've had a few discussions where all parties acknowledge that the dollar's collapse will happen, but the different opinions were how soon it will happen.

I think that there will be the current slow period where foreign nations and financial groups put the next reserve currency into place, before any major shifts are noticeable here at home.

Once the world starts to shift, we will see issues with DC selling treasuries, prices rise at the low end of commodity imported goods, and then an adjustment at home with domestic goods. This will start to really worry the alert people and cause those people to prepare for the collapse.

The collapse will come fast and hard when it finally starts. The foreign powers are putting the mechanisms and next reserve currency(ies) into place now,

Just my $0.02

-Larz

This is going to be highly inflationary

The more USA gets isolated economically the closer we get to hyperinflation. If the world needs no dollars for business, where will the government export their inflation? Your and my wallets!

If the Saudi's get spooked from using the dollar we are screwed!

Gold standard: because man can not be trusted to control his greed

Great article..

Very timely as we here in America get the news last on who is ditching the dollar. Thanks to the secretive fed...

Here was my quote about the quote from the article that I posted to my group. I threw in the rapids thing because of another DP post about just going forward full blast.

"Here is a quote from the attached article. It is an explanation of the fundamental changes that happen in foreign currencies. We as Americans are forced to use only dollars. The rest of the world is beginning to decide not to. This creates rapids against our current cozy way of life as the reserve currency. The shifting of national powers is now apparent to most. You cannot fight these rapids by trying to defend the dollar. We must accept other options and go forward... rapidly."

Par for the course

So it seems almost typical that news like this is brought to some degree of public American awareness on a Saturday. Reminds me of all the bank closings that were not announced until late in the day on Friday when that meltdown was going on.

ecorob's picture

Yes and the article mentions that...

the current Ukrainian related US sanctions against Russia will have very little to no effect?

Welcome to the meltdown.

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
9/11 Truth.