0
   

Russia Is Doing It – Russia Is Actually Abandoning The Dollar

 
 
Reply Wed 2 Jul, 2014 05:39 pm
Russia Is Doing It – Russia Is Actually Abandoning The Dollar

By Michael Snyder, on June 10th, 2014

The Russians are actually making a move against the petrodollar. It appears that they are quite serious about their de-dollarization strategy. The largest natural gas producer on the planet, Gazprom, has signed agreements with some of their biggest customers to switch payments for natural gas from U.S. dollars to euros. And Gazprom would have never done this without the full approval of the Russian government, because the Russian government holds a majority stake in Gazprom. There hasn't been a word about this from the big mainstream news networks in the United States, but this is huge. When you are talking about Gazprom, you are talking about a company that is absolutely massive. It is one of the largest companies in the entire world and it makes up 8 percent of Russian GDP all by itself. It holds 18 percent of the natural gas reserves of the entire planet, and it is also a very large oil producer. So for Gazprom to make a move like this is extremely significant.

http://theeconomiccollapseblog.com/archives/russia-is-doing-it-russia-is-actually-abandoning-the-dollar
 
cicerone imposter
 
  1  
Reply Wed 2 Jul, 2014 05:49 pm
@katsung47,
It seems your understanding of currency is lacking - big time! The Euro is barely hanging on with so many of its countries in fiscal crisis. Germany can't save all those countries that are under capitalized.

That's a good way for Russia to lose its energy strategy for the long term, but better for the US where the US dollar losses value against the Euro.

Guess who that will help?
BillRM
 
  0  
Reply Wed 2 Jul, 2014 05:53 pm
@cicerone imposter,
LOL...bitcoins
0 Replies
 
katsung47
 
  0  
Reply Mon 14 Jul, 2014 02:02 pm
@cicerone imposter,
Quote:
It seems your understanding of currency is lacking - big time! The Euro is barely hanging on with so many of its countries in fiscal crisis. Germany can't save all those countries that are under capitalized.

That's a good way for Russia to lose its energy strategy for the long term, but better for the US where the US dollar losses value against the Euro.

Guess who that will help?


Whatever you say, in reality a crisis is created to save the dollar.

839. Iraqi crisis created to save dollar (6/18/2014)

In early June, Russia switches the oil payment from dollars to Euros.

Quote:
Gazprom Signs Agreements to Switch from Dollars to Euros

Global Research, June 07, 2014

Gazprom Neft had signed additional agreements with consumers on a possible switch from dollars to euros for payments under contracts, the oil company’s head Alexander Dyukov told a press conference.

“Additional agreements of Gazprom Neft on the possibility to switch contracts from dollars to euros are signed. With Belarus, payments in rubles are agreed on,” he said.

Dyukov said nine of ten consumers had agreed to switch to euros.

http://www.globalresearch.ca/gazprom-signs-agreements-to-switch-from-dollars-to-euros/5386049


This is very important news. If people starting to abandon the dollar, US will be hurt seriously in economy. Yet the news was little reported by the mainstream media. Several days later, the ISIL rebel in Iraq activates an offensive. The puppet Iraqi government retreats without any resistance. As a result, the oil price goes up.


Quote:
Oil prices spike as Iraq violence flares
By Mark Thompson @MarkThompsonCNN June 12, 2014

Oil prices spiked Thursday to levels not seen in nine months as escalating violence in Iraq sparked worries about crude exports.

Light crude oil futures touched $106 a barrel, up nearly 2% and the highest price since September 2013.

http://money.cnn.com/2014/06/12/news/oil-prices-iraq/


Since the money used in most oil trading is dollar, the higher oil price will force the buyer to keep more dollar in bank as purchasing power. It’s a big amount if future option is included. Manipulating oil price becomes a strategy to save the dollar. Iraq is a big country of oil production and exportation. Its political stability has huge influence to oil price. US has turned it into a switch to adjust the oil price.

cicerone imposter
 
  1  
Reply Mon 14 Jul, 2014 02:13 pm
@katsung47,
You don't understand fundamental economics. When the dollar loses value against other currencies, our products and services become more competitive in the world marketplace. That's Econ 101.

Secondly, nobody is going to abandon the dollar when our economy continues to show growth. Investors look at strong economies to invest in. That's also Econ 101.
cicerone imposter
 
  1  
Reply Wed 16 Jul, 2014 06:04 pm
@cicerone imposter,
Also, the European Union is instituting more sanctions against Russia. How is Russia going to use the Euro as their energy currency? HOW?
Quote:
BRUSSELS (AP) — European Union leaders ordered tougher sanctions against Russia on Wednesday because of its actions in Ukraine, asking the European Investment Bank to sign no new financing agreements with Moscow.
katsung47
 
  0  
Reply Fri 25 Jul, 2014 02:02 pm
@cicerone imposter,
Quote:
Also, the European Union is instituting more sanctions against Russia. How is Russia going to use the Euro as their energy currency? HOW?

So far it's US who is active to push for sanction. EU is reluctant to upgrade the sanction.

845. Another way to weaken the Euro (7/21/2014)

The energy supply of Europe is heavily dependent on Russia. About one third to 40% of its natural gas and oil are imported from Russia. One important gas pipe is inside Ukraine. If there is a turmoil in Ukraine, the gas supply to Europe will be affected. The economy of Europe would be weakened, so be the Euro. That’s why we saw an upheaval in Ukraine.

Quote:
Ron Paul Defends Russia After Malaysian Plane Crash
.
By Colin Campbell Jul 21, 2014,

One of those unreported things, Paul claimed in his weekly "Texas Straight Talk" column, was the United States' own responsibility for destabilizing the region. Ukraine is currently embroiled in violent conflict between the Ukrainian government and the pro-Russian separatists.

"They will not report that the crisis in Ukraine started late last year, when EU and US-supported protesters plotted the overthrow of the elected Ukrainian president, Viktor Yanukovych.

Without US-sponsored 'regime change,' it is unlikely that hundreds would have been killed in the unrest that followed. Nor would the Malaysian Airlines crash have happened," Paul wrote.

http://finance.yahoo.com/news/ron-paul-defends-russia-malaysian-151731466.html


Here EU used to be a follower of the US. I think the Europeans have sensed the coming danger the US will bring to them. German is a major power of EU. Recently, German has twice revealed two US spy cases and eventually expelled a CIA intelligence official. That’s unusual.

Quote:
Germany Demands Top U.S. Intelligence Officer Be Expelled
Posted 10 July 2014 - 07:36 PM

BERLIN — Germany’s relations with the United States plunged to a low point Thursday, with the government demanding the expulsion of the chief American intelligence official stationed here because, it said, Washington has refused to cooperate with German inquiries into United States intelligence activities.

http://www.nytimes.com/2014/07/11/world/europe/germany-expels-top-us-intelligence-officer.html?_r=1


I would say German has sensed (or with its state ability, having the intelligence) that US would sacrifice European’s economy by creating a crisis in Europe. It could be terror attack; or war. The deportation of US intelligence official is just a warning or protest of disagreement. Several days later, Malaysia airliner MH17 was down in Ukraine.
cicerone imposter
 
  2  
Reply Fri 25 Jul, 2014 02:09 pm
@katsung47,
You wrote,
Quote:
I would say German has sensed (or with its state ability, having the intelligence) that US would sacrifice European’s economy by creating a crisis in Europe.


You don't understand macroeconomics. There's no way the US is going to abandon our European allies for Russia.

You miss another important point; the price of oil is not established by Russia; it's done by the world marketplace. Reducing the price of oil will put Russia into an economic tailspin that they'll incur them untold misery.

It's never a one-issue problem.
roger
 
  1  
Reply Fri 25 Jul, 2014 05:31 pm
@cicerone imposter,
Price drop wouldn't do much for Venezuela, either.
0 Replies
 
katsung47
 
  1  
Reply Tue 5 Aug, 2014 02:03 pm
844. To save the dollar by hitting the Euro (7/17/2014)

Someone argues,
Quote:
Originally Posted by imaginethat
Russia is the world's largest exporter of oil. Any increase in the price of oil benefits Russia.


That’s true. But oil price is the fastest way to adjust the demand of the dollar. We saw then the Euro – an alternative to the dollar, is threatened.

Quote:
Portugal bank crisis shakes investor confidence
By Brigitte HagemannJuly 10, 2014

Lisbon (AFP) - Fears over the health of Portugal's largest listed bank, Banco Espirito Santo, sent its shares into freefall Thursday, shaking stock markets in Lisbon and across Europe and even the Atlantic.

http://news.yahoo.com/portugals-financial-system-weak-pockets-imf-182844328.html


Euro is the reserve currency next to the dollar. When dollar is weak that oil buyers have to use Euros for payment to Russian oil, what if Euro’s value is threatened? Similar situation had acted four years ago when US had a financial crisis (the bankruptcy of Leman Brothers caused by sub-prime loan collapse), US resolved it by introducing the Greek financial crisis.

Quote:
Wall St. Helped to Mask Debt Fueling Europe’s Crisis

By LOUISE STORY, LANDON THOMAS Jr. and NELSON D. SCHWARTZ

Published: February 13, 2010
Wall Street tactics akin to the ones that fostered subprime mortgages in America have worsened the financial crisis shaking Greece and undermining the euro by enabling European governments to hide their mounting debts.

As worries over Greece rattle world markets, records and interviews show that with Wall Street’s help, the nation engaged in a decade-long effort to skirt European debt limits. One deal created by Goldman Sachs helped obscure billions in debt from the budget overseers in Brussels.

http://www.nytimes.com/2010/02/14/business/global/14debt.html?partner=rss&emc=rss&_r=0


If the high oil price would benefit enemy Russia, then US has to dig into the foundation of ally’s wallet. Last time the ignition was Greece, this time it is Portugal.
0 Replies
 
katsung47
 
  1  
Reply Sat 16 Aug, 2014 03:39 pm
847. Puppets show to save the dollar (8/1/2014)

The MH17 crash was obviously an attempt to draw Europe into a war crisis in Ukraine. As a result, Euro goes down wards.

Quote:
Ukraine Tensions See Euro Come off Boil

LONDON — Jul 22, 2014, 11:56 AM ET

By PAN PYLAS Associated Press

The euro fell Tuesday to its lowest level against the dollar this year amid concerns that the downing of Malaysia Airlines Flight 17 will prompt a bigger freeze in relations between the European Union and Russia.

The deterioration in relations between the two sides has worked against the euro, which is used by 18 EU countries. The crisis in Ukraine has given traders an opportunity to sell the euro, which had been at multiyear highs against the dollar despite the muted economic recovery in the eurozone and low interest rates.

http://abcnews.go.com/Business/wireStory/ukraine-tensions-finally-euro-off-boil-24663139


Russia wants buyers to abandon the dollar and use the Euro for its oil. Ukraine crisis forces traders to sell the Euro. That’s how US to save its dollar – by creating war crisis.

Moreover, there is a turmoil in Libya lately. Libya is an oil rich country. The upheaval there not only push up the oil price, but also hurt economy of European countries. It’s not a coincidence.

Quote:
US Evacuates Embassy In Libya Amid Clashes
By Matthew Lee July 26, 2014

WASHINGTON (AP) -- The United States shut down its embassy in Libya on Saturday and evacuated its diplomats to neighboring Tunisia under U.S. military escort amid a significant deterioration in security in Tripoli as fighting intensified between rival militias, the State Department said.

http://talkingpointsmemo.com/news/us-evacuates-embassy-in-libya


When there were “dictators”, the media blew the trumpet for “democracy”, “color revolution”, “Arab spring”. After the fall of the dictatorship, what left over are all US assets: ISIS, Iraq’s Maliki puppet government, rival militias (include Al Qaida) in Libya. Now you rarely hear the angry cry for justice although those agents are more cruel than the “dictators” – they are bombing civilians; beheading P.O.W. and doing religious extinction. Because all those puppets are working for the same master.

The puppets now are acting war shows in Iraq, Libya and Ukraine(where only Russia is the real enemy), all for one purpose, to save the dollar from collapse.
katsung47
 
  1  
Reply Wed 27 Aug, 2014 04:30 pm
@katsung47,
844. To save the dollar by hitting the Euro (7/17/2014)

Someone argues,
Quote:
Originally Posted by imaginethat
Russia is the world's largest exporter of oil. Any increase in the price of oil benefits Russia.


That’s true. But oil price is the fastest way to adjust the demand of the dollar. We saw then the Euro – an alternative to the dollar, is threatened.

Quote:
Portugal bank crisis shakes investor confidence
By Brigitte HagemannJuly 10, 2014

Lisbon (AFP) - Fears over the health of Portugal's largest listed bank, Banco Espirito Santo, sent its shares into freefall Thursday, shaking stock markets in Lisbon and across Europe and even the Atlantic.

http://news.yahoo.com/portugals-financial-system-weak-pockets-imf-182844328.html


Euro is the reserve currency next to the dollar. When dollar is weak that oil buyers have to use Euros for payment to Russian oil, what if Euro’s value is threatened? Similar situation had acted four years ago when US had a financial crisis (the bankruptcy of Leman Brothers caused by sub-prime loan collapse), US resolved it by introducing the Greek financial crisis.

Quote:
Wall St. Helped to Mask Debt Fueling Europe’s Crisis

By LOUISE STORY, LANDON THOMAS Jr. and NELSON D. SCHWARTZ

Published: February 13, 2010
Wall Street tactics akin to the ones that fostered subprime mortgages in America have worsened the financial crisis shaking Greece and undermining the euro by enabling European governments to hide their mounting debts.

As worries over Greece rattle world markets, records and interviews show that with Wall Street’s help, the nation engaged in a decade-long effort to skirt European debt limits. One deal created by Goldman Sachs helped obscure billions in debt from the budget overseers in Brussels.

http://www.nytimes.com/2010/02/14/business/global/14debt.html?partner=rss&emc=rss&_r=0


If the high oil price would benefit enemy Russia, then US has to dig into the foundation of ally’s wallet. Last time the ignition was Greece, this time it is Portugal.
0 Replies
 
Wilso
 
  2  
Reply Sun 31 Aug, 2014 11:29 pm
Seen so many stories over the years of various countries abandoning the dollar, which was going to be the down fall of the US. This one is just another pile of crap on the heap.
Wilso
 
  1  
Reply Sun 31 Aug, 2014 11:30 pm
Personally, I want to see the US dollar up, up, HIGHER.
0 Replies
 
cicerone imposter
 
  1  
Reply Mon 1 Sep, 2014 09:36 am
@Wilso,
This foolish idiot is posting stuff from several years ago. The last article he posted is dated February of 2010. The economies of the world is not static; some basic economic theory that he fails to understand. What happened in 2010 is much different in macroeconomic terms from what is happening in 2014.

His premise that the dollar is shrinking in value is good for the US, because it makes it cheaper for foreign countries to buy US goods and services. That's Econ 101. Demand for US goods will increase while the rest of Europe struggles and they look for cheaper goods.

China's economy is also struggling from their speedy growth a few years ago that made them over-develop their factories that now sits dormant.

They have a very big problem, because those bank loans that built them will not be repaid.

Rather than money being sunk into Russian oil companies, most foreign investors are buying US stocks and bonds. That's the smart money.

The US economy have been adding over 200,000 jobs every month, because demand for our goods and services continues to grow. Many countries unemployment rates are growing. Look at Europe and China.

Many states and cities are increasing the minimum wage above the federal minimum wage - and their jobs are growing.

This pro-Putin/Russia poster doesn't have any knowledge about economics.

If you believe the direct opposite of what he spews, you'd be 100% correct.

cicerone imposter
 
  1  
Reply Tue 2 Sep, 2014 11:17 am
@cicerone imposter,
Quote:
EU proposes tough sanctions on Moscow as Ukraine rebels advance
Reuters By Robin Emmott and Richard Balmforth
1 hour ago

By Robin Emmott and Richard Balmforth
September 2, 2014. REUTERS/Gleb Gar …
Outlining the new proposals on Tuesday, European diplomats described a number of mainly technical measures that would have the combined effect of making it harder for companies in Russia's state-dominated economy to obtain overseas financing.

U.S. and EU sanctions steadily tightened since March have already made it hard for many Russian firms to borrow, scaring investors and contributing to billions of dollars in capital flight that has wounded the Russian economy. Moscow has responded by banning most imports of Western food.
0 Replies
 
katsung47
 
  1  
Reply Sat 6 Sep, 2014 07:02 pm
@cicerone imposter,
Quote:
This foolish idiot is posting stuff from several years ago. The last article he posted is dated February of 2010.


Country is different, the tactic remains the same. Several years ago, they hit the Euro through Greek financial crisis. Now, it's Porugal.

Here is how US to save the dollar by hitting the ally Europe.

The Chart Obama Does Not Want Merkel To See
Submitted by Tyler Durden on 09/02/2014

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/09/20140901_PMI.jpg

Since sanctions began the plunge in Euro-Area PMIs has been commensurate with the rise in Russia's (oh and according to survey-data, US is as good as it has ever been)...

http://www.zerohedge.com/news/2014-09-02/chart-obama-does-not-want-merkel-see
cicerone imposter
 
  1  
Reply Sat 6 Sep, 2014 07:36 pm
@katsung47,
Two things; 1. Merkel already knows about the US and Germany's factory outputs. 2. Russia's economy that shows it growing is beginning to hurt from the stronger embargoes against Putin. It's going to get worse as long as Putin keeps Russian troops in the Ukraine whether they continue their warfare or not.


katsung47
 
  1  
Reply Thu 18 Sep, 2014 01:43 pm
@cicerone imposter,
One question:
Why Scottish can have a referendum but East Ukrainians got a shelling?

East Ukrainians have more reason to seek independence because they speak Russian while Scottish speak the same language as British do.
Lordyaswas
 
  2  
Reply Thu 18 Sep, 2014 02:26 pm
@katsung47,
Has anyone else here tried googling katsung47 ?

Interesting.
 

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