The American Dollar Edges Closer To Losing Reserve Status

What happens when the largest economies in the world stop using the dollar as an intermediary currency and start trading with a basket of currencies or with each other directly?  Get ready; it appears to be approaching fast according to Bloomberg.  If you thought September 2008 was a rough ride, you have not seen anything yet.  Hey, has anybody called Obama on the links and asked him if he knows what The Federal Reserve Mafia is doing about this?

Yuan Trading Against Russian Ruble Said to Start Within Weeks in Shanghai

China and Russia plan to start trading in each other’s currencies as the world’s second-biggest energy consumer and the largest energy supplier seek to diminish the dollar’s role in global trade.

China may start trading its currency against the ruble within weeks, three bankers with knowledge of the matter told Bloomberg, and sent out a document last week allowing lenders to apply for ruble trading licenses, one of them said. Russia’s Micex Stock Exchange is making preparations to trade the ruble against the yuan in an initiative that has the backing of the country’s central bank, Ruben Aganbegyan, the head of the bourse, told reporters at a conference in Moscow today.

“Given the risk to the dollar and U.S. assets from their fiscal position they want to reduce their dependence on the dollar as an invoicing currency,” Bhanu Baweja, global head of emerging markets fixed income, currency and credit research at UBS AG, said in a phone interview from London. “It makes sense for two large economies to exclude a third, overly dominant economy from their trading equation.”

In the wake of the global financial crisis, which forced the U.S. economy into recession, both China and Russia have called for the dollar’s role in the financial system to be diluted. Volatility in major currencies is putting the global recovery at risk Zhang Ping, the head of China’s National Development and Reform Commission, said last month. President Dmitry Medvedev last year suggested Russia, holder of the world’s third-largest foreign-currency reserves, reduce its holdings of dollar.

“Gradually the dollar is being eliminated from the foreign-trade settlement flows,” said Dariusz Kowalczyk, a Hong-Kong based senior economist at Credit Agricole CIB. “People are beginning to trade Asian currencies without intermediation via the dollar.”

Bloomberg also has a video of how the Chinese Yuan is starting to trend move with other currencies as opposed to the dollar.

Sept. 9 (Bloomberg) — Robert Sinche, chief strategist at Lily Pond Capital Management LLC, talks about China’s policy on the yuan. Sinche, speaking with Carol Massar on Bloomberg Television’s “In the Loop With Betty Liu,” also discusses the potential that the Bank of Japan may attempt to devalue the yen and the outlook for the U.S. dollar. (Source: Bloomberg)

(H/T TheDameTruth)

7 thoughts on “The American Dollar Edges Closer To Losing Reserve Status

  1. IMO this has all been planned by TPTB in their quest to undermine the United States of America. Threats along these lines have been surfacing for some time. To be perfectly truthful I don’t think America has any true friends today. There is so much envy and evil doing in the world that if we don’t begin acting in our own best interest we will be exactly where the planners of a one world government want us.

    Although we have always been first to jump in to help any country that has a crisis, we have never been appreciated. Jealousy is a very vile thing and unfortunately most of the world has been jealous of America for years. Coupled with the Progressive traitors we have had in our midst for a long while, our enemies have had a field day. Now that we have in our White House the greatest traitor of all time, this present action is not surprising at all. If these countries that are so eager to do away with the dollar could wave a magic wand and make us disappear they would so.

    Good thought indeed, Diamond, has Obama had any discourse with Bernanke about this? Enquiring minds would like to know. After all, his prime goal is to make America a third world country. When he is crowned king of the world he wants everybody on the same playing field.

    I’m looking forward to reading any remarks that Bernanke or Obama decide to make. Forget about Timmy Geithner or Hillary Clinton. They are just rubber stamps. There’s not an ounce of common sense or patriotism between the two of them.

    From the days of Woodrow Wilson and his League of Nations we have been fighting enemies from within and have come out on top. Now with the Usurper we are poised to win again. True, enough Americans were fooled to put that do-nothing in the White House but IMO his days are numbered. His TPTB backers seem to have cast him adrift also.

  2. Magic question: will Americans ever take things into their own hands, inform themselves, and do something? Clearly, opposition parties have to use the fact the so-called transparent administration is a total fabrication, something Obama never intended. Yes, these are traitors, liars, scum of the earth. The one world government sees workers at poverty levels begging govt. for crumbs of bread. You like? Get off your dead butt and let’s all make some noise.

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