Hold on to your cowboy hats; things are about to get real…
Russia is about to take another major step
towards liberating the Ruble from the Dollar System. Its Finance
Ministry just revealed it is considering issuing Russian state debt in
Chinese Yuan. That would be an elegant way to decouple from the
dependence and blackmail pressures from the US Treasury financial
terrorism operations while at the same time strengthening the bonds
between China and Russia–Washington’s worst geopolitical nightmare.
Russian Deputy Minister of Finance, Sergei Storchak, announced that
his ministry is making a careful study of what would be required to
issue Russian bonds denominated in Chinese Yuan. The latest news is part
of a long-term strategy between Russia and China that goes at the heart
of American hegemony—the role of the dollar as the leading world
central bank reserve currency.
The dollar is used in some 60% of central bank reserves today. The
second largest is the Euro. Now clearly China is carefully moving, as
the world’s largest trading nation, to create its Renminbi or Chinese
Yuan as another major reserve currency. That has huge geopolitical
implications. So long as the US dollar is leading reserve
currency, the world must de facto buy US dollar Treasury bonds for its
reserves. That has allowed Washington to have budget deficits since 1971
when the dollar left the gold exchange standard. In effect, China,
Japan, Russia, Germany—all trade surplus countries, finance Washington’s
deficits that allow her to make wars around the world. It is a paradox that Russia and China at least, are determined to end as soon as possible.
It’s a shame that in this day and age, Americans still don’t
understand that money is not what makes the world go round. Cooperation
does.
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