In their madness and desperation to destroy Russia with ruthless and reckless sanctions, Biden and his circus of clowns have weaponised the American dollar and undermined the dollar's whole reason of existence. Putin is playing along with the dimwits and announced the sales of Russian oil in Roubles. He could go one step further by selling all Russian products in Roubles as well. How's that for a start in the de dollarisation trend and setting the train in motion?
The simple minded Americans had it too good for too long, always thinking that sanction is their trump card and only hurts the other party, not the Americans, never would the Americans be hurt by their own sanction game. Really?
Would the rest of the oil producing countries in the Middle East, South East Asia, Africa and Latin America also join in the bandwagon and accept payments in Roubles or any currency other than the dollar? When that happens, the demand for dollar would decline rapidly. China could also join in by selling its products in Yuan, by passing the dollar.
This trend of not using the dollar would mean that the dollar would become redundant. Everyone and every country would be selling dollar to exchange for other currencies to pay for oil and products accordingly. How much would the dollar be impacted by this new demand and change of taste and direction?
When this trend continues, more countries would be using their respective currencies for trade, not necessary the dollar. The worse scenario would be the refusal to accept the dollar and poops, a totally new world would arrive without the need for the dollar. And this trend could snowball when everyone is demanding for payments in any other currencies except the dollar.
Then the world would say goodbye to the dollar and to the Americans and the American Empire. And the Americans have Biden and his clowns to thank for, to bring in a New World Order, led by the Americans, yes, the Americans leading it, without the American dollar. Biden has taken the lead, the USA has taken the lead.
Well done. The rest of the world are waiting for it...a brave New World Order led by the Americans. It is unbelieveable. The accidental country has set about its own destruction accidentally by attempting to destroy Russia and China in the biggest gamble in history. The Americans got beaten in its own game, by its own design!
With Russia selling oil at a substantial discount from the inflated price, who would not want to buy Russian oil, using Roubles at bargain prices? The big consumers would not be able to say no as the cost of oil is far too high and cost too much. How long can Europe continue to buy super expensive oil and gas when the bargain store is just next door? Europe would become very uncompetitive, very high cost of living and would be bankrupt in due course.
27 comments:
EU is gonna cry loud loud for being US lapdogs:
'Andrei: Question: Do you believe that the EU will agree to pay Roubles or will they take the total loss of 40% of their energy?
Michael Hudson: They will pay – or be voted out of office. If they WERE to cut their energy imports from Russia, the distress-price of gas would soar and there would be drastic shortages disrupting the economy. Energy is productivity and GDP. For Russia, of course, this is an opportunity to make the break now instead of later – and leave NATO to take the blame for the interruption of supply. So if I were Russia, I would not be in a hurry to help solve the foreign-payment problem. The same goes for non-oil raw materials, from neon to palladium to titanium, nickel and aluminum.
Andrei: So far, this applies only to natural gas. Do you believe that Russia will extend this to petroleum, wheat and fertilizers and, if yes, what will the effect from this be for the world economy?
Michael Hudson: All Russian exports are affected by these currency controls, because all bank transfers are sanctioned in the way discussed above. Russia has no use for dollars or euros, because these can be grabbed. It needs to have complete control over whatever monetary assets it receives, now that past norms of international law and financial policy no longer apply.'
http://thesaker.is/the-saker-interviews-michael-hudson-5/
In trying to justify the red dot's unilateral sanctions on Russia, the ST cited a recent survey by Singapore-based research consultancy Blackbox Research.
It says the survey found that over nine in 10 of those polled in Singapore supported or sympathised most closely with Ukraine in the conflict. In comparison, 71% in China supported Ukraine, compared with 91 % in India and 86 % in Australia.
It also says nearly seven in 10 Singaporeans blamed Russia for the crisis, compared with 10 % in China, 60 % in India and 82 % in Australia. Three % in China pointed to the United States as being most to blame, while 54 % said they did not know who was most responsible.
Can believe only 3% in China blamed US ??!! Can believe all the figures cited ??!!
Even my maid also know US and NATO to blame for expanding NATO up to Russia's borders triggering the crisis!
Most if not all the European Countries have asked for the Problems for acting in concert against Russia.
The US wants control the World is open secret. And Russia, China, North Korea threaten and impede its' wild ambition. The US and UK which are of the Same Stock want to regain its' supremacist and imperialism. Together with many European Countries and their Stooges, the lmperialists form alliances such as NATO and other pseudo World Organizations to upset Russia, China, North Korea and whoever who refuses to work for them.
Fortunately, China has progress far beyond the Expectation and Russia is well-run with Putin doing a good job.
With the Russia Ukraine War, it now provides the World with a better understanding of the political and ideological play in the World. In many ways, it is a blessing for all to have a clear picture of the Characters of the Humankind and to move forward in the Better Direction.
Cheers
Wait till our petro-chemical industry needs to import oil from Russia due to global shortage!!
That time siao liao!!
Protecting China’s national wealth and avoiding potential Western sanctions will be at the top of Beijing’s national security agenda following the West’s financial sanctions against Moscow. The lesson for Beijing is that if the US and its allies act in unison, it does not matter whether assets are held in US dollars or in other Western currencies as they're subject to possible seizure.
As recently as last August, ex-US president Donald Trump called for all countries to “collectively cancel any debt they owe to China as a down payment on COVID reparations”. Although President Biden has rejected the idea, it's clear that seizing Chinese wealth has been on the minds of many US politicians, and possibly, of some policymakers. As at end-Jan 2022, China holds USD1,060.1 billions in US Treasury Securities.
China clearly needs to diversify its reserves away from the US dollar and the euro. However, China cannot convert all its stock of US$3.2 trillion in forex reserves into gold as the total value of above-ground gold is around US$12.5 trillion, with about half in the form of jewellery. That leaves US$6.7 trillion of gold held as a financial asset, of which US$2.1 trillion is owned by central banks and unlikely to be for sale. Remaining US$4.6 trillion is too small to absorb a sizeable chunk of China’s US$3.2 trillion of non-gold reserves.
A way to insulate Chinese assets from potential Western sanctions is to redeploy them away from Western financial system and into tangible investments in countries that are geopolitically neutral and/or pro-Beijing, such as President Xi’s Belt and Road Initiative. China’s gross outward direct investment escalated to US$1.6 trillion between 2014 and 2020, without which, China’s holdings of US dollar reserves would have continued to rise. But it's impossible for China to hold most of its overseas assets in the form of investment in tangible assets outside the Western financial system.
If the Chinese currency yuan were a global reserve currency, the vulnerability of Chinese assets would be greatly reduced. Therefore, the Chinese central bank must ensure the use of the yuan in all foreign trade settlements.
There are also many foreign assets and investments in China. These would be held against whatever were seized to net off the outstanding. One thing that is different for China and Russia is that both are nuclear superpowers and would have no problem demanding their return especially from small countries.
They would also demand from the USA for their return or fight back in some way. The Americans are no longer strong enough to seize assets like those of Afghans and Venezeulans to dispose off at will.
See how many silly little countries think they could seize Russian or Chinese assets and could get away with it.
Today I have the good news and bad news about the Ukraine issue and it's consequences.
First, the good news. A Russian tank driven by a soldier is said to have run over his own commander. The Russian soldiers therefore must be rebelling and Russia's fall is certain. The USA, UK and NATO must be celebrating. Then Joe Biden said that he will use nuclear weapons first if he has no way out. As I said before, Putin is ready for that and Xi could not be far behind. This will end the war in Ukraine, but also the 'New World Order' that the USA is talking about and it's self declaration that it shall lead. No shame in that? Peace is coming to the world after the nuclear war.
Now for the bad news. First, Poland is in trouble with all the refugees from Ukraine moving in only one direction and into one country. And that is creating internal unhappiness as those refugees are being treated extra special compared to the Poles.
And now for the good and bad news for one side and not the other. I am also sure Biden's visit to Europe, besides the G7 meeting, is also about selling oil and gas to the Europeans, in US$ of course, since Europe now has to look for Rubles to buy oil from Russia, so the US$ held by them for Russian oil and gas is now usable. The USA had been eyeing this oil and gas market and even trying to stop Nord Steam 2, which they have now succeeded. However, since countries are distancing themselves from the US$ progressively, notably Russia, China, India, Iran and Saudi Arabia, so Europe must soak up all the extra US$ printed day and night, to buy USA oil and gas, right? But USA oil and gas will be five times more expensive than Russian oil and gas. Now. thinking rationally, what is going to happen to the Euro, if USA oil is going to be priced in US$ and Russia is not accepting the Euro for oil and gas as well? The Euro will be suffering another collateral damage. No big deal, right?
To quote John Hannibal Smith of the A Team who said - 'I like it when the plan falls into place' or something like that.
Everyone should go back to Barter Transaction as much as possible to avoid or minimize currency manipulation, ransom and even robbery.
Fancy that Channel News America is telling us that the refugees from Ukraine are mostly women and children? What about the refugees from Yemen? Mostly men? Irrelevant information to sell an agenda that it is a cruel thing for the Russians to do that? Refugees are refugees, and talking about mostly women and children sells the narrative, right?
Does not matter how the Picture is painted, it does not change the Reality.
The Ukrainian People know that Ukraine is no match for Russia. They are abandoning their homeland to stay alive in foreign lands.
Zelenskyy is single-handedly destroying Ukraine and making his fellow-countrymen suffer great misery.
Western education had brain-washed the world elites of the actual meaning of currency. Putin teaches the world a simple lesson on what is the meaning of the real currencies and they are land mass, water,oil,gas,minerals,big populations,etc. The fake currencies are all printed paper notes that can only be eaten when no real foods are available.Putin is benevolent, he still allow the use of ruble to trade. He may upgrade ig to Barter trading. All enemies of Russia will be hit badly.
First casualty Ukraine. Next would be Europe. All thrown under the bus by the Americans. Europe would lose a lot of money in investments, lost opportunities and to buy expensive American oil.
Loans by China to other countries for infrastructure developments is one way to diversify China's US$ holdings and China has done that and is still doing that, this time even into building ports and military facilities.
As infrastructures are permanent assets, held by those countries hosting them, it is also beyond the reach of the dirty paws of the USA and allies to touch, unlike gold and reserves held in banks. That is why the USA and the West, at one time, was raising the issue of debt trap to deter countries from taking such loans for infrastructure developments. However, that has failed to stop China spending it's US$ holdings to bolster it's standing among countries in South Asia, Central Asia, South America and Africa. Ironically, it also exposed the debt trap set by the IMF and World bank on many South American countries.
Rubles-For-Gas Plan Breaches Contract – Desperate EU Says
Leaders from some European Union member states have claimed that Moscow's demand that “unfriendly” countries pay rubles for Russia’s gas could breach supply contracts, Reuters reported .
On Wednesday, Russian President Vladimir Putin ordered that gas contracts with “unfriendly countries” – those responsible for sanctions against Russia – be settled in rubles only. The announcement sent European gas prices soaring, raising concerns of a possible energy crunch in the EU.
German chancellor Olaf Scholz said on Thursday the currency that his country’s companies must pay for Russian fossil fuels is fixed in their contracts. “There are fixed contracts everywhere, with the currency in which the deliveries are to be paid being part of these contracts... in most cases it says euros or dollars,” Scholz said after arriving at the EU summit in Brussels.
Scholz was echoed by Italian Prime Minister Mario Draghi, who said “This is basically a breach of contract, this is important to understand.”
“We will not allow our sanctions to be circumvented,” European Commission President Ursula von der Leyen stated, noting that “the time when energy could be used to blackmail us is over.”
According to analysts, ruble payments would be possible without breaking EU sanctions, which do not directly hit oil and gas supplies but target banks that could be involved in the transactions.
Russian gas accounts for 40% to 45% of Europe's total consumption. Daily EU gas imports from Russia this year have varied between €200 million to €800 million, according to estimates.
President Putin said that Western sanctions against his country have dealt a large blow to public trust in the two major Western currencies. Putin said that the penalties showed it “makes no sense anymore” to sell Russian goods in the US and the EU while receiving payment in dollars or euros.
Don't play play..Russia ramping up the propaganda for WWIII:
https://www.youtube.com/watch?v=zMj5qD0sJ6Q
https://www.youtube.com/watch?v=h6Vxwb-gJ1Q
Our paper generals could wind up facing the Angry Bears..
Natural Gas is Just the First Russian Commodity to be Sold in Rubles - Putin Hinted
In his announcement, Putin hinted that natural gas is just the first Russian commodity to be sold in rubles.
“I have decided to implement in the shortest possible time a set of measures to change the payments for – yes let’s start with this – for our natural gas supplied to the so-called unfriendly countries to Russian rubles,” the head of state said earlier this week.
His choice of words raises the possibility that other Russian export commodities could follow, including oil, metals, and grain. This would further strengthen the ruble and weaken the dollar and euro.
Increasing the ruble’s role in international trade would strengthen the currency, as it would be backed by Russia’s vast natural resources. With this backing and due to increased demand, it could one day be a major global currency.
The dollar’s dominance as a global reserve currency could be compromised. Its strength comes from being pegged to global trade in oil and other commodities, but it is backed by air.
How does our MIW compared to Mr Xi Jinping?
https://www.quora.com/Do-you-think-the-Chinese-president-Mr-Xi-is-a-good-leader
'Xi Jinping is worth more than the combined total of Trump, Trudeau, Bush, Mitt Romney, Doug Ford, Boris Johnson, Scott Morrison, Shinzo Abe, Rajiv Gandhi, Silvio Berlusconi, and every other lavishly rich democratic leader who was born with a silver spoon in his mouth, never had to do a day's work in his life, never had to prove his abilities as an ordinary citizen or prove his merits as a leader even minorly through objective, competitive metrics, and never had to rise up the ranks of a meritocracy.'
'Rajiv Gandhi repeatedly failed his courses at Cambridge where he was “studying" to become an engineer, and later admitted that the reason was that he simply did not care. He was never in the mood to “muck it up" for his exams, as he later admitted. From his teens onward, everyone pretty much begged him to enter politics, because of his surname. He entered politics at 36, running for a seat in parliament that had formerly been occupied by his brother; the seat passed from brother to brother like a feudal estate. Four years later Rajiv became Prime Minister. What kind of leadership is this? Government by celebrities?
The path of almost every US Senator is very similar. Born into a rich and prominent family, easily admitted into an Ivy League, was a poor student but very social, went into law or business (often the family business), and ran for his first office by his 20s without a record of actually having accomplished anything as a human. And unless he set an old lady on fire or got exposed as a paedophile, his political ascendance was assured. It's kind of like your next 10 million dollars being easier to make than your first; after your first big election win, the rest practically land in your lap. You're a brand, famous for being famous.'
With the imminent changing of world order due to the return of old powers China, India, Russia, Iran (Persia). The present western powers led by USA would be replaced. Tiny countries like Singapore would be in great danger of being eliminated. In the near future, rich peoples with everythings to lose would be making moves to protect their assets. Many would shift their assets to a safer haven.
Breach of oil contract by Russia? Can Putin just pass a law to overrule all those contracts making them illegal using US$? If Biden or Trump can do that, why not Putin?
Is US-Led West Kicking Russia Out Of SWIFT Over Ukraine War Exactly What Putin & Xi Jinping Wanted? - to end the Petro-dollar hegemonic system !
Putin muse now start signing 'Executive Orders' like Trump and grandly parade the signing in front of the MSM. That will be fun to watch.
Putin and Xi have been meeting over the years and certainly not just exchanging T shirts as what LKY used to say. They had been planning de-dollarisation for years, but knowing they have to build up their co-operation, upgrade their military deterrents and make sure they can rely on each other for support.
That is why Russia tolerated so many years of NATO expansion, and did not take action, despite the USA and EU breaking their commitments. The world better hope this does not fail to take down the evil snake and it's allies.
When Russian Account and Asset can be forfeited, seized and robbed, why is Russia wrong in wanting Russian Ruble for payment without breaking its' Transaction Contract? In fact it goes to show that Russia honours the Contract.
Anyway, whatever slander and smear, it is not going to change the Consequences wrought by the War and the Political and Ideological Divides.
The War in a way is a blessing to the World Order. The Use of Under-hand Tactic is now defeated and dealings are more equitable hence-forth.
As the Saying goes, a bad development could lead to a better result and this is one prime example.
Cheers
The Washington and Brussels Gang can say anything they want, because they are the ones doing the exact same thing, breaking contracts at their whims and fancies.
Take Huawei for example. What contracts have Huawei made with the USA and all the White countries and in one fell swoop they tear away all those contracts. There were also other contracts made between USA and Chinese tech companies and subsequently binned using one 'Executive Order'. And they still claim such USA companies like Google, Microsoft, Facebook, Intel have no connection to the USA Government? Kidding grandmothers? Oh yes, it is due to security reasons, of which not one shred of evidence or proof has surfaced.
What is sauce for the goose is also sauce for the gander. Not only can Putin demand payments in Rubles, he could even cut off Nord Steam 1, saying that selling oil and gas to the unfriendly EU states are a security threat to Russia. It is in fact a security threat, knowing that Russian oil and gas are being used or helping to manufacture weapons and run tanks which are sent to Ukraine. The proof and connection is irrefutable, unlike the narrative on Huawei, that have yet to be proven.
Putin has already drafted legislation to prevent Western companies disposing of their assets in Russia and moving out the proceeds of such disposals out of Russia. This is as legitimate as the USA and the Western countries freezing the assets of the Russian Central Bank and it's Oligarchs from moving out of the West. The sword can cut both ways.
Wait till Russia demands payments in Rubles for essential minerals, foodstuff and rare gases like neon for semiconductor manufacturing. They talk of sanctioning Russia over chips and other high tech stuff. They obviously have not studied the consequences and just putting in motion plans they formulated on the spur of the moment.
Virgo49;
the White supremacist and lmperialist will resort to anything to undermine and subjugate all to control the World. Everyone must know as it has being going on for a long time. Soros is one great culprit in currency manipulations.
I do not blame him, it is the Daftness of the Others that got themselves out-played.
Barter Trade was the Oldest Form for transaction and it is the Most Equitable Way for Business. It is infinitely the Best Practice and should be used, unless there is problem with resourceless country.
Btw,
now that many have wise-up, the lmperialist shall face great challenge to their wild ambition and may even suffer great consequences.
Cheers
The Last Hurrah of Western Global Financial Hegemony
The West's moves to exclude Russia from foreign exchange markets and to freeze its foreign exchange reserves may have been seen by policymakers in Brussels, London and Washington D.C. as an appropriate and proportionate tool to punish Russia. But like many decisions driven by geopolitics, these sanctions will have unintended outcomes and derivative impacts.
Not only do they raise profound questions about the financing of trade and the management of foreign exchange reserves, but their scale and severity must be ringing alarm bells in any country not completely aligned with the Western view of the world. And nowhere will the bells be ringing louder than in the corridors of power in Beijing.
China has always held long-term ambitions to reduce its reliance on the dollar and internationalize the yuan, although progress toward this objective has been slower than expected. But the sanctions imposed by the West on Russia have highlighted the dangers it incurs by remaining dependent on its rival's currency and will inject greater urgency to its attempts to reduce this vulnerability.
This is seen in its efforts to convert payments for imported commodities to yuan instead of dollars. Although this has had mixed success in recent years, the news that Saudi Arabia is now considering accepting yuan as payment for some of its oil shipments to China suggests that the impetus to de-dollarize such trade flows is gaining momentum. Importantly, it is not alone in such efforts to switch away from the dollar. India is also apparently exploring whether Russian oil could be purchased using rupees and by means independent of Western financial mechanisms.
Western policymakers have failed to understand the derivative longer-term impacts of their actions. The sanctions were imposed with the self-assured belief that the world's continued reliance on the existing Western financial mechanisms was sacrosanct.
But by sanctioning the world's fourth-largest foreign exchange reserves, they have triggered shock waves that will reverberate around global finance for many years to come, create new risks, instabilities and vulnerabilities, and ultimately reduce the role and influence of Western financial systems.
The U.S., and more broadly, the West, will lose geopolitical influence while China will gain, although the extent of China's gain will depend on its ability to persuade others of the merits of a yuan bloc. The U.S. will lose the substantial economic benefits it derives from having the world's dominant currency. But conversely, some countries will benefit from the emergence of an alternative financial system more closely aligned with their stage of economic development.
Geopolitics will, at some stage, force international corporates operating across multiple financial systems, especially banks, to choose between the dollar framework and a rival yuan system.
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