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Russia Is Going To Pass A Law Formally Dumping The U.S. Dollar
Russia Is Going To Pass A Law Formally Dumping The U.S. Dollar
Russian President Vladimir Putin has introduced legislation that would deal a tremendous blow to the U.S. dollar. If Putin gets his way, and he almost certainly will, the U.S. dollar will be eliminated from trade between nations that belong to the Commonwealth of Independent States. In addition to Russia, that list of countries includes Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Uzbekistan. Obviously this would not mean “the death of the dollar”, but it would be a very significant step toward the end of the era of the absolute dominance of the U.S. dollar. Most people don’t realize this, but more U.S. dollars are actually used outside of the United States than are used inside this country. If the rest of the planet decides to stop accumulating dollars, using them to trade with one another, and loaning them back to us at ultra-low interest rates, we are going to be in for a world of hurt. Unfortunately for us, it is only a matter of time until that happens.
When I first read the following excerpt from a recent RT article, I was absolutely stunned…
Russian President Vladimir Putin has drafted a bill that aims to eliminate the US dollar and the euro from trade between CIS countries.
This means the creation of a single financial market between Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and other countries of the former Soviet Union.
“This would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets”, said a statement from Kremlin.
For a long time, tensions have been building between the United States and Russia over Syria, Ukraine, the price of oil and a whole host of other issues. But I didn’t anticipate that things would get to this level quite yet. It is expected that Putin’s new bill will become law, and this is only one element of a much larger trend that is now developing.
…click on the above link to read the rest of the article…
Dollars are worthless without crude oil
Dollars are worthless without crude oil
In my previous post I drew some parallels between energy and money – and more specifically, energy and banking – and pointed out that when money is at stake, the presence of energy is likely lurking somewhere in the shadows. It was mostly hypotheses and observations I was throwing around about energy and banking, but when it comes to energy and money, one can hardly overstate the connection.
Take an Economics 101 class, however, and not only will it be very unlikely that you’ll ever hear of energy mentioned in a context besides that of a random commodity within the supply and demand workings of the “free market,” but what you will likely hear is that, gosh darnit, money is an efficiency-laden tool that we humans came up with ’cause we’re just so darn smart!
As the story goes, money was ingeniously invented with three primary roles in mind:
- A medium of exchange
- A store of value, and
- A unit of account
Otherwise put, money (supposedly) has absolutely nothing to do with energy.
– See more at: http://transitionvoice.com/2015/03/dollars-are-worthless-without-crude-oil/#sthash.OTsWvnFI.dpuf
