Russia Aims to Break Oil Pricing Monopoly?

Here is an interesting article that promotes the idea that Russia is slowly and steadily working to get out from under US dollar pricing for oil. This would serve their purposes in more than one regard as they work with China to reduce global dependence on the US dollar over time. Below are a few quotes from the article
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"Russia has just taken significant steps that will break the present Wall Street oil price monopoly, at least for a huge part of the world oil market. The move is part of a longer-term strategy of decoupling Russia’s economy and especially its very significant export of oil, from the US dollar, today the Achilles Heel of the Russian economy."

. . . . . .

The ‘Petrodollar’ demise

"The sale of oil denominated in dollars is essential for the support of the US dollar. In turn, maintaining demand for dollars by world central banks for their currency reserves to back foreign trade of countries like China, Japan or Germany, is essential if the United States dollar is to remain the leading world reserve currency. That status as world’s leading reserve currency is one of two pillars of American hegemony since the end of World War II. The second pillar is world military supremacy.

. . . . . .

Because all other nations need to acquire dollars to buy imports of oil and most other commodities, a country such as Russia or China typically invests the trade surplus dollars its companies earn in the form of US government bonds or similar US government securities. The only other candidate large enough, the Euro, since the 2010 Greek crisis, is seen as more risky.

That leading reserve role of the US dollar, since August 1971 when the dollar broke from gold-backing, has essentially allowed the US Government to run seemingly endless budget deficits without having to worry about rising interest rates, like having a permanent overdraft credit at your bank."               . . . . . 
First appeared:http://journal-neo.org/2016/01/09/russia-breaking-wall-st-oil-price-monopoly/

First appeared:http://journal-neo.org/2016/01/09/russia-breaking-wall-st-oil-price-monopoly/

First appeared:http://journal-neo.org/2016/01/09/russia-breaking-wall-st-oil-price-monopoly/

Click here to read the full article

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