Tuesday, July 8, 2014

Voice of Russia: Ruble and Yuan to pave the way for US dollar substitution

Voice of Russia is running so many articles related to what we are covering here it is hard to keep up with them all. Here is a new one that presents the idea of a new Yuan-Ruble currency to replace the US Dollar.

Since it is obvious that open warfare has been declared on the US Dollar based system, we have to cover this story in depth. Let's try to get some perspective since we are reading articles that are from the point of view of Russia.

The Voice of Russia can be assumed to present views that are at least in line with what the Russian government would approve. So we can probably assume that what we read in Voice of Russia has been at least vetted by Russian officials. Especially if the articles relate to what amounts to an attack on the US dollar. This is intense rhetoric that could lead to further break down of US-Russian relations so I can't imagine the Russian governement would want this published unless they were OK with the content. I think it is reasonable to believe they would publicly denounce this if they were in sharp disagreement.

Now let's take a quick look at the expert cited in this new article (Peter Koenig). Mr. Koenig is a contributor to Voice of Russia and also writes for an internet site callled Global Research. Here is an example of one of his articles on that site. Below the article it provides this biographical info on Mr. Koenig. So this will give you an idea of what his views are.

"Peter Koenig is an economist and former World Bank staff. He worked extensively around the world in the fields of environment and water resources. He writes regularly for Global Research, ICH, the Voice of Russia and other internet sites. He is the author of Implosion – fiction based on facts and on 30 years of experience around the globe."

There is a lot to digest in this new Voice of Russia article, but I will focus on this new idea presented of a new combined Yuan-Ruble currency. Here is the part of the article that talks about this:

"By and large, the combination of Ruble and Yuan may soon become one currency – maybe theYuanru ’ or the ‘Ruyuan ’ – that could substitute for the dollar as a reserve currency and eventually together with other international trading currencies like the Euro, replace the dollar altogether,"he said.

"Ideally, the BRICS and BRICS-associate candidates, at least a dozen countries are on that list, would issue a common currency, based on a weighted average of their economic output, a basket of currencies, similar to the SDR – Special Drawing Rights – used among other currencies by the IMF to indebt countries with their so-called ‘rescue packages’. Greece is an example this IMF strategy, among other southern European states. Greece has become Europe’s basket case and Ukraine is on the best way to become another one very soon."

Did you catch that? A new "Yuanru"? A combined currency from Russia and China?
That seems unlikely, but it does illustrate that Russia is not alone in this battle. China is clearly behind them even though China does not prefer to make headlines.

Readers on this blog need to read this whole article because it is full of provocative statements like these. We have been following this BRIC's split with the IMF all year long and this is just another clear example of how it appears these BRIC nations are serious about leaving the existing global fianancial system and starting a new one.

As we have said before, it is impossible for us to know if this split is real or it is just an attempt by these BRIC nations to gain more leverage within the current system by threatening to leave it. But we now have serious real problems in the Ukraine that are ramping up tensions between Russia and the US (and the EU). The potential for a disruption of the current system clearly exists so we have to take it seriously and cover the story. If this conflict spreads into a major war, this will clearly have major ramifications on the global monetary system.

I don't what all this is leading up to, but we will try to follow it all here. The BRIC summit is just a few days from now and we will have a number of articles leading up to that event that cover the BRIC's and try to give readers some background on who they are and what their goals are.

So much for July being a lazy summer month (at least so far).


  1. Whatever these governments call it ... it's credit. Purely ephemeral, immaterial, insubstantial ... bull-crap ... floated on the sea of self-proclaimed 'eminence' these governments gush out eternally.

    Money Is Weighed, Fictions Are Counted.

  2. Yeah what he said!