It seems that the WORLD TRADE parties are trying to squelch the Thanks Giving screamer. They are trying to NOT create a panic. This is huge. There is NOTHING little about this. This is Russia and China. They would become three times or four times America if they got together, like the EU did. Imagine what that means. If they UNITE their currencies like the EU did, then they would become THE player. This is HUGE. They are making it like it’s nothing. THIS IS SIGNIFICANT!
The Euro was created in 1999, and it devalued the dollar. Europe was pegged to the dollar. The only reason that the US is in a good position, regarding the Korean skirmish is because CHINA is beholden to the US economy. Their move toward Russia is a massive SIGNAL. They don’t want to have to quell the N. Korean / S. Korean fights and come out on the side of the US. <http://en.wikipedia.org/wiki/European_Currency_Unit>
This is NOT insignificant people!
This government is using the media to bury this story.
There are massive propagandists doing this. The Soro’s and the Murdoch’s and the rest of the Globalist are in an uproar, because the disinformation campaign has already begun
Look at the 2 articles below. The Nasdaq? They don’t meet unless they have discussed EVERY detail ad nauseum and then it takes weeks. Now, all of a sudden they have a comment so quick? This is Propaganda. Pure and simple.
After reading the article listen to the video – this video is from 2009
This is a MOVE AGAINST the US Dollar
related – please look – South Korea warns north over attack – UPdate – Washington will invoke China’s help
Russia-China Deal Aims — Sort of — to Ditch Dollars:
(Nov. 24) — Russia and China plan to start conducting their mutual trade in rubles and yuan in a bid to remove the globally predominant U.S. dollar from the equation, but the move seemed more symbolic than financially significant.
Russian Prime Minister Vladimir Putin announced the decision Tuesday after meeting with Chinese Premier Wen Jiabao in St. Petersburg, adding that rubles had begun to exchange on Chinese exchanges this week and that the yuan will start trading in Moscow next month.
“We are determined to use our national currencies more extensively to settle mutual accounts,” Putin said, noting bilateral trade between the two countries has mostly used foreign currencies, mainly U.S. dollars. “This is an important step towards strengthening direct ties in trade and the economy without any losses.”
But the currency change — solidifying a decision last year by Russia, China and other member states of the regional Shanghai Cooperation Organization to minimize the dollar’s Central Asian trade role — may make little difference, at least any time soon.
And it seems unlikely to have any effect on the vast U.S. financial ties with China, which acts as the factory floor for a broad array of goods sold to American consumers and which funds a large amount of U.S. government debt through its purchases of Treasury securities.
The currency switch was overshadowed by energy, customs and other agreements signed by Putin and Wen, and wasn’t even mentioned in a list of their meeting’s accomplishments released by Putin’s office.
And while Putin spent less than a minute of his post-meeting remarks discussing the currency decision, and said nothing at all about the timing of the transition, Wen didn’t mention it at all.
Russian trade with China — at about $45.1 billion this year, according to the official Chinese Xinhua news agency — makes up a tiny portion of Chinese foreign trade, which came to about $1.5 trillion last year and continues to grow quickly, according to the World Trade Organization.
It is more significant for Russia, which recorded about $600 billion in imported and exported goods and services last year. And Putin has been pushing trade with China as a way of making Russia less economically dependent onEurope.
In the latter years of the past decade, Russia made several attempts to increase the ruble’s prominence in global finance at the dollar’s expense, but the rapid drop in oil prices during the 2008-2009 financial crisis lessened petroleum-dependent Moscow’s clout. And as recently as this week, investors’ widespread move into the dollar in reaction to shelling between North and South Korea demonstrated that the U.S. currency remains a perceived haven for traders.
Global currency markets took little or no notice of the announcement, in part because China keeps tight control over the yuan’s exchange rate and because worries about the European Union’s debt crises are overwhelming much else.
China, Russia open up non-dollar trading
Posted 11/24/2010 9:09 AM
From:The NASDAQ OMX Group, Inc
The former enemies in North Asia have agreed to abandon longstanding rules that require cross-border transactions to be conducted in foreign currency — and dollars in particular.
China and Russia previously forced one another’s importers to pay in a third-party currency, usually the dollar. Last year, this dollar trade came to $38.8 billion, and is on track to reach an annualized run rate of $60 billion this year.
However, as of today, this trade may be denominated in rubles or yuan instead of foreign currency. Both countries have allowed citizens to convert from one unit to the other — Russian banks will allow yuan exchange early next month and their Chinese counterparts already support the ruble — and initial tests over the last decade have gone well.
This is not really a game changer in terms of the dollar’s role in either country’s foreign currency reserves. But it does seem to be part of a concerted effort by global players to diversify their trade settlements away from dollars.
Commodities are central here. Russia wants its own commodities exchange to trade oil in rubles, and with a forecast 1 billion barrels of Russian oil flowing into China every year through the new Siberian pipeline, a yuan-ruble oil trade makes sense.
Expect that Russian commodities exchange within a few years. In the meantime, do not expect either China or Russia to dump the dollar outright any time soon. This news is not hurting DXY.