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China, Russia quit dollar - Beginning of the End?

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Redmond Posted: Thu, Nov 25 2010 5:25 AM

China, Russia quit dollar

By Su Qiang and Li Xiaokun (China Daily)
Updated: 2010-11-24 08:02

St. Petersburg, Russia - China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.

The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.

"That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries," he said.

"The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing" " Jean Baptiste Colbert"
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Esuric replied on Thu, Nov 25 2010 5:38 AM

That's what it looks like. The dollar is doomed if it loses its status as the vehicle currency.

"If we wish to preserve a free society, it is essential that we recognize that the desirability of a particular object is not sufficient justification for the use of coercion."

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Kakugo replied on Thu, Nov 25 2010 5:56 AM

A long overdue decision, it has been in the air for a while. With the US and the EMU becoming less reliable by the day it was only a matter of time.

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Marko replied on Thu, Nov 25 2010 7:26 AM

Apparently the volume of China-Russia trade is 42 billion dollars.

http://www.newkerala.com/news/world/fullnews-90859.html

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Merlin replied on Thu, Nov 25 2010 2:36 PM

And that’s how close we’ll ever get to a single worldwide fiat currency. Now for the Euro…

The Regression theorem is a memetic equivalent of the Theory of Evolution. To say that the former precludes the free emergence of fiat currencies makes no more sense that to hold that the latter precludes the natural emergence of multicellular organisms.
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mahsah replied on Mon, Nov 29 2010 4:38 PM

I personally don't think it will matter until the petrodollar falls.

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