So Russia is going to abandon the dollar as a reserve currency? Good luck with that one

By Jeremy Warner Economics Last updated: March 4th, 2014

http://blogs.telegraph.co.uk/finance/jeremywarner/100026745/so-russia-is-going-to-abandon-the-dollar-as-a-reserve-currency-good-luck-with-that-one/

I’ve already explained why meaningful trade and financial sanctions against Russia are a non starter – everyone would lose from such action. Europe would be pushed back into recession, Russia into financial meltdown. This is not the sort of self harm Europe is prepared to contemplate right now. Indeed, thanks to the indiscretion of a UK official, who was snapped going into Downing Street with his briefing documents on display for all the world to see, we know this to be the case. Trade and financial sanctions have already been ruled out.

Whatever. This doesn’t seem to have stopped the Russians threatening retaliatory action against the threat of the non sanctions. One possibility, says the Kremlin economics aid Sergei Glazyev, is for Russia to abandon the US dollar as a reserve currency, or to figure out a way to use a new payments system that was not reliant on US dollars for international transactions. Good luck with that one.

I’ve written before about the inevitability of decline for the dollar as the world’s major reserve currency, but this process is on a very long fuse and basically depends on China eventually displacing the US as the world’s largest economy.

That’s not going to happen any time soon. In the meantime, the dollar remains overwhelmingly the currency of choice for international transactions, and is the middle currency in virtually all transactions. For instance, if you were looking to buy Singapore dollars with Russian roubles, you would typically first buy US dollars with your roubles and then swap them into Singapore dollars. The US dollar is also the pricing currency for virtually all commodity transactions, including crucially, oil. Repeated attempts to set up alternative pricing arrangements have all come to nothing.

Then finally, more than 60 per cent of the world’s central bank foreign currency reserves are held in dollars. The euro, the next biggest reserve currency, comes nowhere close. This is not about to change. In other words, Russian threats are as vacuous as Western ones. Hey ho.

http://theunhivedmind.com/wordpress3/2014/03/05/russia-threatens-to-abandon-the-u-s-dollar-over-sanctions-threats/

theunhivedmind says:

March 5, 2014 at 1:08 am

Please be aware that the article below comes from an anti-Russia propaganda newsrag from New Venice (Britain). Do not believe that the U.S Dollar (really a private Federal Reserve note, merely a piece of toilet paper IOU) is the almighty and cannot be toppled. The Federal Reserve note can easily be toppled if nations like Russia and China along with others bring on their own system external to the current insolvent version.

If the Federal Reserve note (wrongly called a U.S Dollar) isn’t so easy to topple then why did you see the nation of Iraq invaded by the U.S in 2003 under the orders of the Bush family? It was mostly over Saddam Hussein dropping the dollar as payment for Iraqi oil and opting for Euros? Hows about when Libya was going the same route as Iraq? What happened to Gaddafi? The Venetian Templar merchants made a statement by releasing a snuff film of his murder like they did with John F. Kennedy when he tried to set up an alternative banking system in conjunction with Indonesia. Both Saddam and Gaddafi were trying to set up in the Middle East a gold-backed Dinar system to bypass this Venetian slavery we are forced into today under the City of London Corporation as their proxy Empire which controls the illusion of a U.S Empire.

If anyone can make the change it will be Vladimir Putin! What happened when Vladimir saved the world from World War 3 over Syria? Vladimir became a hero to most in the West who knew he was telling the truth and working lawfully and legally. So now the Empire has to try to make Putin look the enemy so they can lie to the herd aka public. I say to Putin he should target his nuclear warhead ICBMs on Brussels, City of London, Westminster, Vatican City, Rome, Tel Aviv, Jerusalem, Denver, Washington DC, Virginia and Dallas, Genoa and Venice. Putin should then send in Spitnaz forces to assassinate families like the Pallavicini, Rockefeller, Rothschild and the Queen of Great Britain who is really the Doge of New Venice and destroy her Guelph bloodline once and for all. It is time to rid this planet of these evil parasite slave masters out for nothing but control and greed. If one is smart then one can destroy the U.S and West economically very easy, it is already bankrupt! The Federal Reserve in insolvent as is the Deutsche Bank AG who are kingpins behind this Ukraine Coup.

-= The Unhived Mind