Russia and China have weakened the US economy badly
By @ShaunyGibson – Used to be @ ShaunyNews
Very hard to get documentation on this story, links below that I could find
Vladimir Putin won’t kowtow to the “dollar dictatorship” in world oil markets, the Russia president told state-owned Itar-Tass newswire. “We are leaving the dictatorship of the market where oil is priced in dollars and will increase the possibilities of using the ruble and the yuan,” Putin said in an interview with the news agency.
NOT ANY MORE
Russia recently signed a number of agreements with China after an official visit to the country by Xi Jinping, China’s president. The two countries are also linking up their securities exchanges in order to create hedge operations in both ruble and yuan.
Russia has been desperately trying to woo the Chinese over to its side, waving its oil and gas wealth like a golden carrot stick in front of the energy hungry Chinese. Russia’s biggest market for oil and gas is Europe, but the European Union is trying to diversify away from Russia. Russian natural accounts accounts for over 30% of the E.U.’s foreign gas supply and Russia assumes that Europe will one day turn to the U.S. for gas, even though it will take years before Europe has the necessary infrastructure to import U.S. liquefied natural gas.
The man. The myth. The legend. Vladimir Putin says he hopes to price more of Russian oil and gas in rubles and yuans. But that depends on the Chinese, which remain a tiny part of Russian energy exports.
For political purposes, Putin may like the idea of pricing its oil in currencies other than the dollar. It shows Russia has alternatives. But China is light years behind other markets in terms of Russian energy consumption. In a speech at the Asia-Pacific Economic Cooperation summit in Beijing last week, Putin said that using the ruble and yuan would weaken the dollar’s influence on the global energy market. These claims have been floated around before, like when Iran said it would start pricing its oil in euros. Most of the world’s oil trade is priced in dollars and euros, not strictly dollars. And while China is a large consumer of oil, its currency is not fully internationalized. Only a few niche markets in goods and services are set up for pricing in the off-shore yuan instead of being settled in dollars.
Killing the American economy, leading to triple fines for no healthcare, this is the true impact
Putin also said during the APEC Summit that Russia and China were discussing using their own currencies in bilateral trade, though energy is really the only trade going on between the two countries in terms of dollar value. While diversifying into yuan makes sense, Russia would be wise to keep the euro zone as a trade partner. Despite sharing the same border with China, Russia has closer cultural and commercial ties to Europe. And despite an ocean between them, China has closer commercial and cultural ties — thanks to a large immigrant community — with the United States than it does with Russia.
So for the dollar haters, Russia’s pricing oil in rubles or yuan will have very little impact on the greenback’s future as commodity currency of choice.
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