Socio-Economics History Blog

Socio-Economics & History Commentary

Ruble-Yuan Trade Between Russia & China Makes Dollar Odd Man Out

  • Ruble-Yuan Trade Between Russia & China Makes Dollar Odd Man Out
    by https://www.rt.com/
    Moscow and Beijing are looking to extend the three-year $25 billion yuan-ruble swap deal and seek greater use of domestic currencies in trade. Experts have told RT this is likely to cut dependence on the US dollar.

    This week, Russian Prime Minister Dmitry Medvedev said “the financial regulators of the two countries are working on extending the bilateral currency swap agreement for the next three years.”

    “In 2016, the share of national currencies in payments for exports of Russian goods and services was 13 percent, imports 16 percent. In the first quarter of 2017, these figures rose to 16 percent and 18 percent, respectively,”
     said Russian Deputy Prime Minister Sergey Prikhodko.

    Both China and Russia are committed to promoting their own currencies, and this means the dollar share is likely to shrink.

    “That’s a fact, and it’s not just indicative of the volume of transactions in national currencies. Russia and China are already working together on several BRICS multilateral agreements. Trade in national currencies is just one aspect of the general trend that has emerged in the world over the past decade,”
     a Moscow-based analyst Mehdi Mehdiyev told RT’s German website, RT Deutsch.


    Trade in national currencies protects countries against “external influences,” helps to avoid risks of fluctuations in exchange rates; swap agreements also help reduce the budget deficit, Mehdiyev said.

    Chinese financial expert Andrew KP Leung told RT Deutsch that for Moscow, trading in national currencies is a way to bypass Western sanctions, and for Beijing to promote the yuan.

    “China is one of the largest buyers of Russian energy exports. The extension of the currency swap will reduce transaction costs for Russia and China. Trading in yuan will reduce Russia’s dependency on the US dollar,”
     said Leung.


    read more.

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November 4, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , | Leave a comment

Iran Suggests Russia Help ‘Isolate the Americans’ by Ditching Dollar

http://www.express.co.uk/news/world/874772/Iran-supreme-leader-Ayatollah-Ali-Khamenei-asks-Vladimir-Putin-isolate-US-ditch-dollar

Click on image for article.

  • Iran Suggests Russia Help ‘Isolate the Americans’ by Ditching Dollar
    by https://www.rt.com/
    The best way to beat US sanctions against Iran and Russia is joint efforts to dump the American currency in bilateral trade, according to Iranian Supreme Leader Ali Khamenei.

    “By ignoring the negative propaganda of the enemies, that seek to weaken relations between countries, we can nullify US sanctions, using methods such as eliminating the dollar and replacing it with national currencies in transactions between two or more parties; thus, isolate the Americans,”
     he said on Wednesday at a meeting with Russian President Vladimir Putin in Tehran.


    According to Khamenei, economic relations have vast room for improvement. “In the transportation sector, we can expand cooperation, using the main axis of Chabahar port to the port of Saint Petersburg, as well as in other economic areas,” he said.

    During the meeting, which lasted about an hour and a quarter, Putin replied that Russia considers Iran “a strategic partner and a great neighbor, and we will take advantage of every opportunity to expand and consolidate relationships in all dimensions.”

    The Russian president said the US wants to interfere in all matters of the world and the region and often ignores interests of its allies to do so. However, since 2014, despite the sanctions, “we devoted our funds to scientific and technological progress, and we had significant growth in the fields of biotechnology, IT, agriculture and space industries. Now, in spite of the initial concerns, we have realized that we can do whatever we decide to,” said Putin.

    Putin is visiting the Iranian capital to attend a trilateral summit with the leaders of Iran and Azerbaijan.

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November 3, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , | Leave a comment

End of Petrodollar: Rise of Economic Protectionism to Reshape Global Trade

  • End of Petrodollar: Rise of Economic Protectionism to Reshape Global Trade
    by https://sputniknews.com/
    The era of petrodollar recycling is drawing to an end as shifts in technology and international politics render it redundant, meaning the US is entering volatile times.

    Kristian Rouz — The rise of economic protectionism and nationalism in politics of the recent years, including the gradual implementation of US President Donald Trump’s agenda and Brexit reshaping the contours of European trade, are poised to bring an end to the petrodollar recycling. These developments signal the first overhaul of international economic relations since the Nixon administration in the early 1970s in the United States.

    The petrodollar system entailed the end of the gold standard in the US, which had its national currency pegged to the value of gold at $35 per ounce in the aftermath of World War II. However, the severe challenges that global economy faced in the late 1960s pushed the administration of Richard Milhous Nixon to abandon the system.

    “The essence of the deal was that the US would agree to military sales and defense of Saudi Arabia in return for all oil trade being denominated in US dollars,” The Huffington Post explains.

    The shale revolution in oil productionin the early 2010s rendered this system irrelevant in the US, as North America is becoming increasingly independent of crude oil imports and has, in fact, increased its own oil and petrochemical exports under President Trump.

    However, President Trump’s push for greater protectionism faces obstacles, mainly in the form of a significant Saudi investment in US Treasury bonds accrued over the past 40 years. The petrodollar system has allowed Saudi Arabia to increase its foreign reserves, and many other prominent oil-producing nations have followed the same foreign investment pattern.

    The US, on its part, was able to increase its money supply by printing dollars, which has produced major dollar devaluation, by over 30 percent since the early 1980s. Subsequently, other oil importers, in order to pay for energy, had to buy US dollars first.

    read more.

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October 16, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , | Leave a comment

Russia Stockpiles Gold in Continued Push Away from US Dollar

https://www.rt.com/business/405526-russia-highest-gold-reserves/

Click on image for article.

https://www.rt.com/business/403465-dollar-end-china-crude-rogers/

Click on image for article.

October 4, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment

The West Begins To Panic Over China’s OBOR Trade System

  • X22Report Published on Sep 20, 2017
    Existing homes sales decline, this is the third month in a row. German gold expert reports that gold has been manipulated since 1993 by the central banks and the banking system. The West begins to panic over the One Belt One Road trade system. This new trading system is will be a vast network throughout Asia, Africa and Europe.

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September 22, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment

Putin Orders End to Trade in US Dollars at Russian Seaports

  • Putin Orders End to Trade in US Dollars at Russian Seaports
    by https://www.rt.com/
    Russian President Vladimir Putin has instructed the government to approve legislation making the ruble the main currency of exchange at all Russian seaports by next year, according to the Kremlin website.

    To protect the interests of stevedoring companies with foreign currency obligations, the government was instructed to set a transition period before switching to ruble settlements.

    According to the head of Russian antitrust watchdog FAS Igor Artemyev, many services in Russian seaports are still priced in US dollars, even though such ports are state-owned.

    The proposal to switch port tariffs to rubles was first proposed by the president a year and a half ago. The idea was not embraced by large transport companies, which would like to keep revenues in dollars and other foreign currencies because of fluctuations in the ruble.

    Artemyev said the decision will force foreigners to buy Russian currency, which is good for the ruble. In 2016, his agency filed several lawsuits against the largest Russian port group NMTP. According to FAS, the group of companies set tariffs for transshipment in dollars and raised tariffs from January 2015 “without objective grounds.”

    The watchdog ruled that NMTP abused its dominant position in the market and imposed a 9.74 billion rubles fine, or about $165 million at the current exchange rate. The decision was overturned by a court in Moscow in July this year.
http://voiceofrussia.com/2013_07_26/Moscow-Beijing-taking-on-the-dollar-5431/

Click on image for article.

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September 21, 2017 Posted by | Economics | , , , , | Comments Off on Putin Orders End to Trade in US Dollars at Russian Seaports

Putin Orders End To US Dollar Trade At Russian Seaports

  • Putin Orders End To US Dollar Trade At Russian Seaports
    by Tyler Durden, http://www.zerohedge.com/
    Whether in response to rising scorching tensions with the US, or simply to provide support for the ruble, on Tuesday Russian President Vladimir Putin instructed the government to approve legislation making the ruble the main currency of exchange at all Russian seaports by next year, RT reported citing the Kremlin website.

    The head of Russian antitrust watchdog FAS Igor Artemyev, many services in Russian seaports are still priced in US dollars, even though such ports are state-owned. So, in order to “protect the interests” of dockworkers and their complyees with foreign currency obligations, the government was instructed to set a transition period before switching to ruble settlements.

    read more.
https://www.rt.com/business/403465-dollar-end-china-crude-rogers/

Click on image for article.

https://sputniknews.com/politics/20160915/1045341538/gold-yuan-china-dollar-eurasia.html

Click on image for article.

https://www.rt.com/business/319938-putin-dollar-oil-trade/

Click on image for article.

http://www.rt.com/business/314732-china-oil-contracts-dollar-yuan/

The Satanic WW3 drums will escalate. Watch for explosions, ‘accidents’ … in China. Click on image for article.

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September 20, 2017 Posted by | Economics | , , , , , | Comments Off on Putin Orders End To US Dollar Trade At Russian Seaports

The US Pushes Trade War With China Threatening The World’s Trading System

  • X22Report Published on Sep 18, 2017
    The entire inflation meme that the Government and Central Banks are pushing is a lie. There is a pension storm headed our way and it’s going to be horrific. Jim Rogers warns that sanctions against NK and China are going to hurt the US. The US pushes its agenda and pushes a trade war with China threatening the world’s trading system. 

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September 19, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , | Comments Off on The US Pushes Trade War With China Threatening The World’s Trading System

A US Trade War with China Will End US Monopoly on Global Financial System – Jim Rogers

  • A US Trade War with China Will End US Monopoly on Global Financial System – Jim Rogers
    by https://www.rt.com/
    If the Trump administration puts sanctions on China, this would hurt America more because it just forces China and Russia and other countries to cooperate, says investor and financial commentator Jim Rogers.

    US Treasury Secretary Steven Mnuchin warned on Tuesday that the US could impose economic sanctions on China if it does not implement the new sanctions regime against North Korea, saying that the restrictions could involve cutting off Beijing’s access to the US financial system.

    “If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the US and international dollar system, and that’s quite meaningful,”
    Mnuchin said at the Delivering Alpha Conference in New York City.


    The UN Security Council unanimously approved a resolution banning North Korea’s textile exports and capping its oil imports following Pyongyang’s sixth nuclear test conducted last week.

    RT spoke to famous investor, author, and financial commentator Jim Rogers to discuss global perspectives in the case of the US imposing sanctions on China.

    RT: 
    What is the likelihood that the US will go through with and actually impose economic sanctions on China if it does not implement the new sanctions regime against North Korea?

    read more.

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September 18, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , | Comments Off on A US Trade War with China Will End US Monopoly on Global Financial System – Jim Rogers

China Dollar Dump Means Hyperinflation – Chris Martenson

  • China Dollar Dump Means Hyperinflation – Chris Martenson
    by Greg Hunter’s USAWatchdog.com (Early Sunday Release)
    Resource analyst and futurist Chris Martenson says everyone should be taking notice of our “dangerous markets.” At the center of the danger zone is the declining U.S. dollar.  Martenson explains, “We are talking about a steady erosion of the dollar as a reserve currency.  I think that is most likely.  The only thing that could make that really go fast is some kind of war.  The United States and China, we got to keep our eye on this because Trump has been threatening a trade war with China.  China responded and said if you do that, we may dump the dollar. . . . So, there is all this trade and financial back and forth and maybe even actual war at some point. . . . China has the ability to really impact the dollar in a big way on the world stage.  We better hope it does not come to that because a slow erosion we can adjust to; a quick erosion is going to really roil the markets and maybe blow a few of them up.”

    Martenson contends the U.S. could see hyperinflation in a short time if China “dumps the dollar.” Martenson explains, “The way that works is let’s say they want to unload $500 billion on some Tuesday morning.  Who is going to buy that $500 billion?  Who is on the other side of that trade?  Well, if there are not enough people bidding for those dollars, the price has to fall until you find enough people to absorb those, and the dollar would fall in value against all other sorts of other things such as other currencies, oil, gold, silver and all those things. . . . We would be looking for a paired event.  What we would be looking for is interest rates starting to rise on Treasuries and the dollar starting to fall in value in value against a variety of things.  Once we see those two things, we know we have a financial war or a monetary war. . . . That’s what blows up the derivatives market.  That’s what makes difficulties for traders.  That’s what makes the high frequency computers say I don’t like this and bolt and instantly evaporate from the markets.”

    read more.

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September 18, 2017 Posted by | Economics | , , , , , , , , , , , , , , | Comments Off on China Dollar Dump Means Hyperinflation – Chris Martenson

US Threatens China with Sanctions – But Is It All Bluster?

  • RT America Published on Sep 12, 2017
    Secretary Treasury Steve Mnuchin threatened China with sanctions of their own if they try to circumvent the harsh new UN sanctions on North Korea. RT America’s Manila Chan has the details.

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September 14, 2017 Posted by | Economics, GeoPolitics | , , , , | Comments Off on US Threatens China with Sanctions – But Is It All Bluster?

US Threatens To Cut Off China From SWIFT If It Violates North Korea Sanctions

  • US Threatens To Cut Off China From SWIFT If It Violates North Korea Sanctions
    by Tyler Durden, http://www.zerohedge.com/
    In an unexpectedly strong diplomatic escalation, one day after China agreed to vote alongside the US (and Russia) during Monday’s United National Security Council vote in passing the watered down North Korea sanctions, the US warned that if China were to violate or fail to comply with the newly imposed sanctions against Kim’s regime, it could cut off Beijing’s access to both the US financial system as well as the “international dollar system.”

    Speaking at CNBC’s Delivering Alpha conference on Tuesday, Steven Mnuchin said that China had agreed to “historic” North Korean sanctions during Monday’s United Nations vote. “We worked very closely with the U.N.  I’m very pleased with the resolution that was just passed.  This is some of the strongest items.  We now have more tools in our toolbox, and we will continue to use them and put additional sanctions on North Korea until they stop this behavior.”

    In response, Andrew Ross Sorkin countered that “we haven’t been able to move the needle on China, which seems to be the real mover on this, in terms of being able to apply the real pressure. What do you think the issue is?  What is the problem?”

    The stunner was revealed in Mnuchin’s answer: “I think we have absolutely moved the needle on China.  I think what they agreed to yesterday was historic.  I’d also say I put sanctions on a major Chinese bank.  That’s the first time that’s ever been done.  And if China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the U.S. and international dollar system.  And that’s quite meaningful.”

    read more.

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September 13, 2017 Posted by | Economics, GeoPolitics | , , , , | Comments Off on US Threatens To Cut Off China From SWIFT If It Violates North Korea Sanctions

US Threatens to ‘Cut China Off’ from Dollar If It Does Not Uphold Sanctions Against N. Korea

  • US Threatens to ‘Cut China Off’ from Dollar If It Does Not Uphold Sanctions Against N. Korea
    by https://www.rt.com/
    The US could impose economic sanctions on China if it does not implement the new sanctions regime against North Korea, the US Treasury Secretary has warned. Steven Mnuchin said the restrictions could involve cutting off Beijing’s access to the US financial system.

    “North Korea economic warfare works,”
     Mnuchin said Tuesday at the Delivering Alpha Conference in New York City. “We sent a message that anybody who wanted to trade with North Korea – we would consider them not trading with us.”

    The Treasury Secretary echoed the words of the US envoy to the UN, Nikki Haley, by calling the fresh round of sanctions against Pyongyang “historic.”Mnuchin added “if China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the US and international dollar system.”

    Washington has, so far, been reluctant to impose economic sanctions on China over concerns of possible retaliatory measures from Beijing and the potentially catastrophic consequences for the global economy.

    Washington runs a $350 billion annual trade deficit with Beijing. China also holds $1 trillion in US debt, which amounts to 28 percent of US Treasury bills, notes and bonds held by a foreign government.

    US lawmakers, however, seemed to be more inclined to exert pressure on Beijing and other countries striking deals with Pyongyang as they demand a “supercharged” response to North Korea’s nuclear tests, including imposing sanctions on companies from China and any other country doing business in North Korea.

    “I believe the response from the United States and our allies should be supercharged,”
     said Ed Royce, chairman of the House of Representatives Foreign Affairs Committee during a hearing Tuesday.


    “We need to use every ounce of leverage… to put maximum pressure on this rogue regime,”
     he said, adding that “time is running out.” Royce also called on Washington to target major Chinese banks, including the Agricultural Bank of China and the China Merchants Bank for dealing with Pyongyang.


    read more.

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September 13, 2017 Posted by | Economics, GeoPolitics | , , , , , | Comments Off on US Threatens to ‘Cut China Off’ from Dollar If It Does Not Uphold Sanctions Against N. Korea

Venezuela Plans to Drop US Dollar in Trades

US-Pentagram: “It’s time to invade Venezuela … urr.. I mean attack those terrorists in Venezuela to liberate the country from their dictators, for peace, democracy, freedom, apple pies … and liberty fries …”

  • PressTV News Videos Published on Sep 9, 2017
    The Venezuelan government says it will sell oil, gas and other products in currencies other than the US dollar to counter US sanctions.

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September 11, 2017 Posted by | Economics, GeoPolitics | , , , | Comments Off on Venezuela Plans to Drop US Dollar in Trades

“Unloading Dollar Assets Would Be Most Effective” – Chinese State Media Unveils Trade War ‘Countermeasures’

  • “Unloading Dollar Assets Would Be Most Effective” – Chinese State Media Unveils Trade War ‘Countermeasures’
    by Tyler Durden, http://www.zerohedge.com
    After President Trump declared “economic war” with China, seemingly followingBannon’s strategy to maintain hegemony… 

    “We’re at economic war with China,” 
    he added. “It’s in all their literature. They’re not shy about saying what they’re doing. One of us is going to be a hegemon in 25 or 30 years and it’s gonna be them if we go down this path.

    Bannon said he might consider a deal in which China got North Korea to freeze its nuclear buildup with verifiable inspections and the United States removed its troops from the peninsula, but such a deal seemed remote. Given that China is not likely to do much more on North Korea, and that the logic of mutually assured destruction was its own source of restraint, Bannon saw no reason not to proceed with tough trade sanctions against China.

    “To me,” Bannon said, “the economic war with China is everything. And we have to be maniacally focused on that. If we continue to lose it, we’re five years away, I think, ten years at the most, of hitting an inflection point from which we’ll never be able to recover.”

    China state media immediately signaled the nation would hit back against any trade measures,
     as it has done in past episodes, and now, thanks to a treatise in Chinese official mouthpiece, China People’s Daily newspaperwe have an idea of what those countermeasures could be…

    read more.

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August 28, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , | Comments Off on “Unloading Dollar Assets Would Be Most Effective” – Chinese State Media Unveils Trade War ‘Countermeasures’