China, Russia quit dollar
By Su Qiang and Li Xiaokun (China Daily)
Updated: 2010-11-24 08:02
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.
Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.
"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.
The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.
The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.
"That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries," he said...*snip*
Now that China and Russia (for all intents and purposes, both still very much communist nations) have unpegged from the dollar, what will happen to our economy here in the USA? A much quicker onset of hyper-inflation! This is what many economists have feared would happen if we strapped our debt to the mercy foreign nations, as the following article adequately explains...
Schaef Brief: China Unpegs Yuan – Good or Bad for America?
Author: A Schaef - June 29th, 2010
...What if China Steps Out of the US Treasury Market? Two possibilities then lie before us: higher interest rates to lure new investors or the Federal Reserve will have to step in as the main buyer. Some say that the former is not even an option right now because of what higher rates will do to our economy, therefore the latter is the only immediate possibility. Eventually, a combination of the two is the most likely scenario. As the Fed becomes the main buyer of US debt (in other words, as we monetize our debt), inflation then kicks into high gear because we are basically just printing money at an incredible rate at that point. To try and curb this inflation, higher interest rates will soon follow. When this happens you should already be well positioned in commodities; mainly precious metals. When the rest of the world finally figures this out, the gold rush we will have will be unlike anything we have ever seen. Let not your heart be troubled. If you make the right moves now you will survive; maybe even thrive...*snip*
I don't want to sound like an alarmist, but I've been keeping an eye this SHTF scenario stuff since 9-11 and this has all the indications of being the real deal. My spidey senses are tingling and the boy scout in me has been causing me to prepare for what I only see now as inevitability. NOW is the time, folks! Buy gold, stock up on canned and dry foods, try to secure additional cooking and heating fuels, and re-surplus your defensive and emergency measures - yes, guns and ammo, first aid supplies, etc. I'm not telling you this because I'm following the marching orders of anyone else; I'm telling you this because I've been researching this stuff on my own for nearly 10 years. Good luck and God willing, we will survive this storm.
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