So it begins.. China, Russia to dump US dollar for bilateral trade

[Silver Rocket Bitches!]

China and Russia have said they will renounce the US dollar and use their domestic currencies in bilateral trade.


REUTERS
Chinese Premier Wen Jiabao (C), Russian Prime Minister Vladimir Putin (R of Wen) and a Shanghai Cooperation Organisation (SCO) leader attend a news conference at the Great Hall of the People in Beijing October 14, 2009. The SCO is a grouping of central Asian states. China and Russia signed a pact to notify each other of ballistic missile launch plans during Putin's visit this week to Beijing, Chinese media said on Wednesday.

The announcement came as the leaders of both countries met in St. Petersburg to expand bilateral trade and energy-cooperation between the countries, according to an AFP report on Tuesday.

"We agreed to expand the possibilities for application of national currencies during trade and economic contacts," said Russian Prime Minister Vladimir Putin after holding talks with the Chinese premier Wen Jiabao.

However, the move is not aimed at challenging the dollar but to protect their economies, as the countries started exploring other options in the wake of the global financial crisis.

With Russian ruble already trading on the Chinese exchange, yuan trade in Moscow is expected to begin in early December.

The bilateral trade between the two countries is estimated to reach above $50 billion by the end of 2010, according to the Russian government. A major chunk of the trade is transacted in US dollars currently.

http://www.ibtimes.com/articles/85216/20101124/china-russia-dollar-vladimir-putin-wen-jiabao-ruble-yuan-bilateral-trade.htm

[chad]

"said" and "to" being the words to pay attention to...

[PatColo]

from yesterdays thread China has allowed the Yuan to trade against the Russian Ruble (http://gold-silver.us/forum/general-discussion/china-has-allowed-the-yuan-to-trade-against-the-russian-ruble/msg143638/#msg143638)




from recap of Pastor Lindsey Williams' interview on AJ show 10/21/10 (http://gold-silver.us/forum/general-discussion/recap-of-pastor-lindsey-williams%27-interview-on-aj-show-102110/msg129877/#msg129877)




Russia has agreed w/China to supply all their energy needs: oil/gas. Oil is about to start soaring again. I think the rub here is that they won't be using the FRNs (China's T-Notes) as medium of exchange, this is FRN doom. No value was publicly given to the Russia/China announcement, because it won't be denominated in FRNs.
(see: BBC 9/27/10: Russia and China sign series of energy agreements (http://www.bbc.co.uk/news/business-11417781), "China and Russia have signed a series of agreements to boost energy co-operation during a ceremony to open an oil pipeline between the countries."
also see: Global Plans to Replace the Dollar (http://www.projectcensored.org/top-stories/articles/1-global-plans-to-replace-the-dollar/) -PC)

[sunshine05]

I'm seeing more articles on this now. Does anyone know how this will impact us? I'm weak in economics so I don't really understand the specifics. I guess it will just slowly devalue the dollar as more countries stop trading with it. It seems to me that things could happen pretty quickly regarding hyperinflation. Thoughts?

[Fullpower]

Title is in-accurate.
No Dollar "Dumping " here.
The Xhinese and Russians are proposing an alternate medium of exchange, which actually makes a lot of sense, particularly since they share common borders, and neither has any control over the quantity of Dollars produced.
Using Dollars in their own bilateral trade is essentially involving a third party in each transaction, to their own detriment.

[Low Pan]

wow, appears as if the grave for the dollar has been dug. The Yuan, Euro and Greenback all vying for spots as the international currency of choice. With only the Yuan being the most stable. Maybe that is why the Prez of the World Bank suggested a partial Gold Back standard for a Global currency. Possibly in an effort to avoid the Yuan.

[Mouse]

China and Russia signed a pact to notify each other of ballistic missile launch plans during Putin's visit this week to Beijing, Chinese media said on Wednesday.

This is what caught my eye.

A week after the LA missile, China and Russia agree not to do any sneaky missile testing without letting the other know in advance.

[Plastic]

I'd like to know just how close the planet came to being annihilated from that "test", you know the heat bloom was detected by early warning satellite.

Then again maybe I don't wanna know afterall......

[Rebel Yarr]

Not banking on the dollar here - but historically it is much more stable than either of their currencies. China's would be like a roller coaster if it were depegged and they would have already experienced the insane inflation that they will eventually succumb to.

[PatColo]

China and Russia signed a pact to notify each other of ballistic missile launch plans during Putin's visit this week to Beijing, Chinese media said on Wednesday.

This is what caught my eye.

A week after the LA missile, China and Russia agree not to do any sneaky missile testing without letting the other know in advance.


I looked this story up, it's from 10/13, more like a month before the (China?) missile launch**-- difference would imply that Russia was given the heads-up on China's LA missile plan. We don't know any more, IE maybe Russia tipped the US off, who knows, that "back end" spy vs. spy stuff is a whole nother rabbit hole. At face value though, the pact, combined with their energy agreement, and recent currency agreements, all point to Russia/China as a new superpower, and China's sub launched LA missile was a shot over the bow from the China/Russia team saying "do we understand each other??" ;)

China and Russia sign missile notification pact (http://www.reuters.com/article/idUSTRE59D06B20091014)

** edit: the text of the OP doesn't match the text at the link, link text makes no reference to missile pact ?!?

[Horn]

Right, Pat.

China has some long mystic history of invaders from the North coming to finish them off.

Could be the needed some extra fireworks to dispel them.

[Bullion_Bob]

Reminds me of that story about those people on a deserted island figuring out they don't need a master to live by, and pay debt to, when they can get everything they need from each other amongst themselves, and keep all their hard work.

[Silvestor]

It is interesting that on negative news such as this the dollar closes higher than the previous day.

http://i51.tinypic.com/2liyhr5.jpg

[Rebel Yarr]

dollar is safety to those who have to choose - at least for the while.

[Horn]

dollar is safety to those who have to choose - at least for the while.


First you need to get some, before you get off.