Russia Is Doing It – Russia Is Actually Abandoning The Dollar

Oddly, I was suddenly inspired to do just that. I see they are now referring to his posts as KIM CHEE instead of SPAM.

Does he like cabbage then?

No wonder there's so much hot air!

It would also explain the fragrance.

Simple; Russia wouldn't dare attack Scotland like they did Ukraine. Nevah hoppen! NEVAH.

Because in so said democratic country, the ruling class control the intelligence and media. They could rig the voting result to get whatever they want and justify it with various reasons because they control the media. That’s what happened in Scotland referendum.

In East Ukraine, they are not able to do so. So they show their real face – to suppress by force.

The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

Submitted by Tyler Durden on 08/27/2014
Several months ago, when Russia announced the much anticipated "Holy Grail" energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar's stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.

This changed in late June when first Gazprom's CFO announced the gas giant was ready to settle China contracts in Yuan or Rubles, and at the same time the People's Bank of China announced that its Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin held a meeting in which they discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.

And yet, while both sides declared their operational readiness and eagerness to bypass the dollar entirely, such plans remained purely in the arena of monetary foreplay and the long awaited first shot across the Petrodollar bow was absent.

Until now.

According to Russia's RIA Novosti, citing business daily Kommersant, Gazprom Neft has agreed to export 80,000 tons of oil from Novoportovskoye field in the Arctic; it will accept payment in rubles, and will also deliver oil via the Eastern Siberia-Pacific Ocean pipeline (ESPO), accepting payment in Chinese yuan for the transfers. Meaning Russia will export energy to either Europe or China, and receive payment in either Rubles or Yuan, in effect making the two currencies equivalent as far as the Eurasian axis is conerned, but most importantly, transact completely away from the US dollar thus, finally putin'(sic) in action the move for a Petrodollar-free world.

http://www.zerohedge.com/news/2014-08-27/gazprom-begins-accepting-payment-oil-ruble-yuan

This ties into China's current effort to replace the World Bank. These Western economic institutions like World bank, IMF, GATT and so on have not been working all that well lately, it is probably time for them to be retired. The East/russa/india alliance will take the lead in creating the new world order. How much Putin gets done before he leaves IDK, but the Russian Empire is as good as back. The Chinese Empire is firmly back.

Saddam and Gaddafi tried to abandon dollar in their oil trading. Both were killed in war activated by the US.


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556. Petro-dollar, the cause of Iran war (7/4/08)

People think the nuclear ambition of Iran is the reason for Iran war. That is only right on Israel's part. For US part, it is petro-dollar.

US dollar is appointed currency in oil trading. Because the oil trade is a huge business, a large amount of dollar is locked up in that trade. That money is called petro-dollar. Why it is so important to US? Because it acts as a long term none interest loan The prosperous US economy partly was based on the petro-dollar - a long term loan without interest. Let me depict it in this way:

US bought a house from Japan (whom represents the oil customers of Iran) for one million dollars. US also bought another house from France (whom represents other oil customers of OPEC) for one million dollars. Japan and France use these two million dollars as fund to buy oil. The money was used in oil trading circle and never back to US. US enjoys the two houses almost free. He doesn't have to pay monthly mortgage payment. Not a penny for interest, nor for principle. All the cost was the printing of a green back paper. However, that green back paper - petro dollar, is still a debit note. How long is it? So far it's more than forty years - since dollar became the appointed oil trade currency.

But suddenly, Iran refuses to accept dollar. Japan has to ask US to exchange that one million dollar into Euro or yen. What US can do is: 1. to get the dollar back by export more merchandise. But he is not able to. He has a trade deficit already. 2. To get the dollar back with gold or foreign currency reserve. But he hasn't that much reserve. 3. To lock up that extra one million dollar in US Bond by raising the interest rate to attract the buyer. But he unwilling to do it. There is a sub-prime crisis in real estate market. Any interest increase will further devalue the house. Feds holds a large amount of real estates in my case, they don't allow such thing to happen. So to solve the problem, they go to the fourth option. 4. By pushing up the oil price.

France (other oil consumption countries) keeps one million dollar as oil trading fund. How much does he need if the oil price doubled? Two million. Thus the one million dollar Japan abandoned is absorbed by France. That's why the oil price jumped like crazy in recent days - a tricky way to keep US dollar from collapsing.

US has to pay for high oil price too. Ordinary people bear the cost. But the high oil price will hurt the economy. The condition won't last long. So war on Iran is unavoidable.

Of course, US is a "democratic" country. It can't start a war because others refusing to use its currency. Then beware of another 911 style false flag attack.

We know there was an incident of live nuclear head weapons being carried over the continental US by a B-52 last August. There is attempt of dirty bomb attack in Houston this year.
Quote, "State of Emergency: The US in the Final Six Months of the George W. Bush Administration

by Lewis Seiler and Dan Hamburg
June 13, 2008 by CommonDreams.org
.......
Former National Security Agency analyst and naval intelligence officer Wayne Madsen has been in Houston investigating the Carnaby case at great personal risk. Madsen believes Carnaby was involved both in heading off a potential war with Iran (by leaking Mossad plans to assassinate Hezbollah leader Hassan Nasrallah just days before Carnaby himself was killed) and in trying to forestall a potential terrorist attack on the port.

According to Madsen, “federal agents in Houston fear that ‘another 9/11-type part false flag’ attack is imminent, perhaps as early as July 4.”.......

http://www.commondreams.org/archive/2008/06/13/9596/

10/15/2014

Banned From U.S. Banks, Russian Oil Giant Turns To Even Bigger Banks In China

Russian state owned oil company Gazprom is turning to China for foreign sources of capital now that the U.S. and European financial markets are closed to them.

Beijing is trying to open its capital markets, and lending to foreign institutions is par for the course. Gazprom make for a solid borrower, with tons of collateral in the form of gold…black gold that is. For Gazprom, Chinese interest rates aren’t as low as what Western banks can offer. But they are still more attractive than Russian banks. China’s benchmark interest rate is 6%, while Russia’s rate is 8%.

http://www.forbes.com/sites/kenrapoza/2014/10/15/banned-from-u-s-banks-russian-oil-giant-turns-to-even-bigger-banks-in-china/?partner=yahootix

The Cost Of Putin’s Ukrainian Adventure: Russia’s Currency Is Plummeting

The Russian ruble is worth 41% less, in dollar terms, than it was on January 1. U.S. and E.U. sanctions, plus a big drop in oil prices, are to blame. posted on Nov. 6, 2014,

The Russian currency, the ruble, has plummeted this year, hitting fresh lows of 46 rubles to the dollar on Thursday. It traded at 40 rubles to the dollar just in the last month, and has depreciated 41.8% this year.

That means that if you had $100 worth of rubles on January 1, they would be worth less than $60 today.

http://www.buzzfeed.com/matthewzeitlin/the-cost-of-putins-ukrainian-adventure-russias-currency-is-p

Don't think the U.S. has to be concerned with Russian economic moves at the moment .
http://www.abc.net.au/news/2014-12-17/russian-economy-heading-for-crisis-as-oil-rouble-plunge/5972476

Whatever could have gone wrong? They did just what free market economists advise and specialized in their area of comparative advantage, oil extraction. Specialization benefits everyone!

False. The failure of the russian economy is going to hit the German economy hard, and they are the only economy that has over the last years been doing OK in the EU. I have no doubt that 6 months ago Putin told Obama et all " you guys are nuts, if our economy collapses yours probably will too".

The West thought that sanctions would not threaten the global economy, thar they would hobble but not destroy, but no one foresaw a 40% drop in crude prices.

OOPS!

"The failure of the russian economy is going to hit the German economy hard, and they are the only economy that has over the last years been doing OK in the EU....."


Not all would agree with you......

In August 2012, the Economist’s Daniel Knowles, tweeted a link to this chart:


"He captioned it:
I’m going to retweet this, because it’s why all of these people saying we should be more like Germany are WRONG."
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And per Capita.....




Source:
http://touchstoneblog.org.uk/2012/08/german-lessons/

Since that graph of 2012, the UK has pulled away even more and, if memory serves, our growth exceeded the growth of the entire Eurozone combined over the past twelve months.

The oil price drop won't last forever. Only long enough to knock out some of America's shale oil producers.

I read recently that Britain's economy was the strongest, but not more than the Euro countries combined.

I did say " if memory served", and I was nearly right.
This is from my last post on the Italy deficit thread, a snippet from the article in The Telegraph.

""Tucked away in the report is a nugget that Britain alone accounted for almost all the EU's growth in 2013, half in 2014, and will still be the biggest contributor by far in 2015."

Thanks for the clarification.