Russia and China announce decoupling trade from US Dollar

[Globenim]

Looks like the sour grapes arrived.

 

[Chinese-Dragon]

OR, you should consider the other possibility: Fanbois here pump up China and Pakistan without much substance, and deride USA, all with the covert blessings of PDF, right down to personal attacks? In such a situation, my being fair and even-handed goes against the carefully nurtured bias here and hence is unpopular. That is not my problem.

================================

Back to the topic, the reign of the US dollar as the world's reserve currency will carry for at least several more decades. At least.

Fair and even-handed? I'm not sure if that is unintentional sarcasm or not.

And as for much substance, just recently you were going on about how China's demographics "would take care of the problem by itself". Which apart from the horrific connotations, was shown to be wrong with the basic fact that the one-child policy has already been scrapped, which renders those previous 2030-2050 demographic predictions pointless.

Being mindlessly pro-America is the same as being mindlessly anti-America. Neither one is interested in basic facts.

 

[Hamartia Antidote]

Looks like the sour grapes arrived.

I find it hard to believe that China and Russia have been trading with the capitalist dollar since say the 1950's.

I'm guessing it is a relatively recent event. Maybe when the Ruble failed China demanded Yuan and Russia said dollars.

 

[rockstar08]

anything can happen in this world .....things are changing rapidly ...America can regain its economic superiority if they stop this on going war on terror ... if not than you might see ( americans ) unexpected changes before 2020

 

[tranquilium]

I find it hard to believe that China and Russia have been trading with the capitalist dollar since say the 1950's.

I'm guessing it is a relatively recent event. Maybe when the Ruble failed China demanded Yuan and Russia said dollars.

Things were different before 1990s. USSR ran its own network of trade where countries like North Korea and currently eastern European nations form a coordinated network of production. For example, USSR would focus on heavy industry, energy production. They would sell these heavy machinery and fuel to North Korea, who focused on light industry and agricultural production and sell the stuff back to USSR. China was NOT a part that trade network. USSR did want China to be part of it, but China maintained that it must have economic independence.

History showed that it was the right choice. Take North Korea for example, it used to have a flourishing economy, better than that of South Korea, but since it was a part of the USSR centered trade network, it heavily depended on USSR for many basic materials for industrial production, so once USSR collapsed, North Korea's economy collapsed overnight to the point it couldn't even produce enough food to feed its people.

Now, China really only became an industrial powerhouse in the past decade. In the 90s, while China has a flourishing light industry and do indeed fill a lot of newly founded Russia Federation's needs, China was not yet up to the task to supply everything Russia needed by itself. (Plus, you know, from the Russian perspective, it really isn't good for their country if they depend all their stuff on a single country) As a result, Russia/Chinese trade use USD as a medium because it could be used in trade with other countries.

Nowadays it is different because China's industry is so large that you can get pretty much anything you want from China, more importantly, RMB also have more users, so it can be used to buy things from other countries without going through USD.

 

[WAR-rior]

Oh please, just do it already! How many times have we heard this?

Deja Moo: The feeling that you have heard this bullshit before.

Thats DEJA GOO !

It wud be better. This dollor has frustrated us a lot. Its tym we get over this hyped currency.

 

[VCheng]

Fair and even-handed? I'm not sure if that is unintentional sarcasm or not.

And as for much substance, just recently you were going on about how China's demographics "would take care of the problem by itself". Which apart from the horrific connotations, was shown to be wrong with the basic fact that the one-child policy has already been scrapped, which renders those previous 2030-2050 demographic predictions pointless.

Being mindlessly pro-America is the same as being mindlessly anti-America. Neither one is interested in basic facts.

Pointless? Except that the damage to the Chinese population pyramid done by the years the one-child policy was in force has still to hit home, and it will do so around 2025-2035.

See how partially mentioning facts leads to erroneous conclusions, like you attempted to do just now?

 

[fallstuff]

Anybody else has any more news ?

 

[Hasbara Buster]

my being fair and even-handed

Yes you are very fair and even-handed !

 

[asad71]

This is a positive development for world economics.

 

[Mr.S.Singh]

But it has been done. China and Russia have finished their huge currency swaps, and cross-border trade now mostly happens in local currencies. The biggest break will come very soon, when Putin visits China to conclude the gas contract. If you're asking when you'll feel the impact: it should mostly be gradual. The fact that the US can't unilaterally intervene in Syria or Ukraine - these incidents are all related. Of course, the impact will not be gradual if the USA strikes back to demonstrate its displeasure at the erosion of its hegemony. Then a shooting war will start, a la Iraq or Libya, and the end game will of course be to reestablish the petrodollar as the reserve currency.

Here is the problem, Chinese Yuan is not freely traded in forex market, hence russia is bound to repurchase goods from china, a master stroke by china if trade ticks of in large numbers.

 

[nair]

If China and Russia decide to do so, I am sure there are several other nations who would like to follow them.... Once countries start trading oil with other currencies.... then US is in trouble....

 

[Mr.S.Singh]

If China and Russia decide to do so, I am sure there are several other nations who would like to follow them.... Once countries start trading oil with other currencies.... then US is in trouble....

no its stupid. India tried this, infact we did this with Iran and russia before to. You don't understand the realize of the currency as it is not freely traded. In International market Re and Yuan hold no importance because they are restricted currency.

In this case, Russia is bound to repurchase from China because no other currency would accept Chinese Yuan. hence the dilemma. It is a good strategy when you are sanction but not for normal trades.

 

[Sliver]

at the maximum there will be several blocks trading in multiple currencies with the $ holding to a vast majority of the globe. and all this if the current political and economic path continues as it is. its a long time to go.

 

[nair]

no its stupid. India tried this, infact we did this with Iran and russia before to. You don't understand the realize of the currency as it is not freely traded. In International market Re and Yuan hold no importance because they are restricted currency.

In this case, Russia is bound to repurchase from China because no other currency would accept Chinese Yuan. hence the dilemma. It is a good strategy when you are sanction but not for normal trades.

Well if there is a trade which is two way..... It can be made possible.... We did it with Iran too... We paid oil thru rupee.....

btw i am bad in economics....