Saturday, August 16, 2014

Russia, Putin Ramp up Anti US Dollar Talk Again

Before the BRICS summit a number of Russian media outlets were quoting Russian officials as saying they would have to end the US dollar as global reserve currency in response to US sanctions against Russia. That talk had seemingly quieted down even as more and more new trade deals not using the US dollar were announced. Now it seems like President Putin is ready to go on the attack again based on this new article.

Here are the key quotes from this article:

"On Aug. 13, Russian President Vladimir Putin announced that the old petrodollar system of using a singular currency for global energy sales is damaging the economy, and that he intends to pursue using the rouble as an alternative form of currency through which nations can buy oil from the Eurasian power."

"Additionally, Putin in the past has recognized that the use of the dollar as the sole medium for global transactions is a hindrance to free trade by forcing nations to have to buy dollars first before purchasing oil, food, and other commodities on the global market, even if those purchases are being made with nations outside of the U.S."

"President Vladimir Putin said on Thursday Russia should aim to sell its oil and gas for roubles globally because the dollar monopoly in energy trade was damaging Russia's economy."

"We should act carefully. At the moment we are trying to agree with some countries to trade in national currencies," Putin said during a visit to the Crimea region, which Moscow annexed from Ukraine earlier this year. - Reuters"
"Vladimir Putin took several months before responding to U.S. economic aggression after Washington began a series of sanctions directed at the President, and at other Russian oligarchs. But once he chose to act, there has been no stopping the surge of changes he is seeking to impose on the Western system of dollar hegemony. And with several trade partners like China, Brazil, India, and South Africa already on board, Putin appears ready to take on the dollar worldwide by calling for future energy sales from his nation to be done in roubles, and no longer with the petrodollar."
Added comment: An open attack on the US dollar has always been taken very seriously and we would expect this will be no different. In matters of war and peace, things are either moving towards more or less tension. So far, things keep moving towards more tension, especially as regards the use of the US dollar as global reserve currency. Readers here know this is the main story we are following on this blog. What will happen to the US dollar as global reserve currency and what will replace it if it loses that status?

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