Drudge Retort: The Other Side of the News
Monday, August 05, 2019

Russia is acting on a pledge by President Vladimir Putin to shrink the role of dollar in international trade as tensions sour between Washington and Moscow. The shift is part of a strategy to "de-dollarize" the Russian economy and lower its vulnerability to the ongoing threat of U.S. sanctions. But while the central bank was able to quickly dump half of its dollar holdings last year, progress in trade has been slow due to ingrained use of the greenback for many transactions.

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Sounds great to the Russiapublicans!! No collusion!

#1 | Posted by chuffy at 2019-08-05 12:39 PM | Reply

Good luck with that. So long as Russia produces and exports oil and natural gas, it will do so in Dollars. So long as your average Russian guy on the street trusts the Dollar (or the Euro) more than he trusts the Ruble, there will be a demand for Dollars on the streets of any Russian city. So long as Russian criminals steal from the country and the Russian government, they will do so in Dollars...

#2 | Posted by catdog at 2019-08-05 12:44 PM | Reply


I had posted the following article, or one like it, a few months back.

China and Russia look to ditch dollar with new payments system in move to avoid sanctions
www.scmp.com

...China and Russia are drafting a pact to boost the use of their national currencies in bilateral and international trade, underscoring their intent to cut their reliance on the US dollar.

The development of a new international financial payments system aims to address rising concerns over additional US sanctions and trade tariffs.....


#3 | Posted by LampLighter at 2019-08-05 12:46 PM | Reply


@#2 ... So long as Russia produces and exports oil and natural gas, it will do so in Dollars. So long as your average Russian guy on the street trusts the Dollar (or the Euro) more than he trusts the Ruble, there will be a demand for Dollars on the streets of any Russian city. ...

While Mom and apple pie comments are always a crowd pleaser, the transition away from the dollar seems to have begun...

...The share of euros in Russian exports increased for a fourth straight quarter at the expense of the U.S. currency, according to central bank data. The common currency has almost overtaken the dollar in trade with the European Union and China and trade in rubles with India surged. ...

The dollar is about to be bested by the Euro in Russian exports. Which means that the dollar is losing its status as the currency of world oil and gas trading.

#4 | Posted by LampLighter at 2019-08-05 12:51 PM | Reply | Newsworthy 1

#4 | Posted by LampLighter That might not be all bad. If the dollar is devalued, two things will happen. Imported goods will become more expensive and foreign investment will increase. The reason the dollar is in trouble is the debt load. Servicing the debt is starting to take a greater amount of the budget to stay current. Interest on the national debt is now consuming almost a trillion dollars. With a three trillion dollar a year tax revenue, we are basically paying the interest with more debt. We simply are spending much more than we can safely. Reduce the size and scope of government or face the consequence. The consequence being that we could have hyper inflation or the government will have to curtail a lot of spending people depend upon now, maybe both.

#5 | Posted by docnjo at 2019-08-05 02:11 PM | Reply

@#5 ... If the dollar is devalued ...

Pres Trump has often said that he is in favor of a weak dollar, except for the times he says he is in favor of a strong dollar.

If you are an American exporter, you want a weak dollar, as you noted.

#6 | Posted by LampLighter at 2019-08-05 02:18 PM | Reply

#6 | Posted by LampLighter, American exporters love a weak dollar, it make their products more competitive. I seriously doubt the government will curtail SS payments, but if the cost of living increases do not keep up with reality, the effect is the same.

#7 | Posted by docnjo at 2019-08-05 02:24 PM | Reply

A weak dollar means more foreign ownership, careful what you wish for. Foreign owners don't trickle down, or at least even less than domestic 1%ers.

#8 | Posted by bored at 2019-08-05 02:38 PM | Reply

We simply are spending much more than we can safely. Reduce the size and scope of government or face the consequence.

Or, you know, we could just go back to actually taxing billionaires and corporations instead of giving them a free ride. When you eliminate your tax revenue, you have nothing to pay the bills with. It's not that complicated.

#9 | Posted by chuffy at 2019-08-05 04:21 PM | Reply | Newsworthy 1

#9 The horrors of billionaires paying taxes. The HORRORS!

Didn't you know that tax cuts pay for themselves and increase revenues?

One more tax cut for millionaires and the deficit will disappear.

#10 | Posted by Nixon at 2019-08-05 06:01 PM | Reply | Newsworthy 1

This is inevitable and anyone using it as any kind of political ammunition has a problem with actually thinking first before talking. Eventually we are either going to have to go with one world currency or every currency is going to end up being used in all transactions because technology makes it so much easier.

"Or, you know, we could just go back to actually taxing billionaires and corporations instead of giving them a free ride. When you eliminate your tax revenue, you have nothing to pay the bills with. It's not that complicated."

They've already proven that taxing even the wealthiest citizens makes a very tiny dent in this country's spending, especially since they are already taxed so much higher than everyone else...any gain you get is only partial. But if you want to keep using Liberal talking points to get out of actually thinking about solutions, I guess that's just the America way these days.

#11 | Posted by humtake at 2019-08-06 12:03 PM | Reply

"especially since they are already taxed so much higher than everyone else..."

Oh, STFU; you have no idea what you're talking about. Look up GRATs, and don't ever make that silly claim again.

The person paying the highest percentage of their annual income in federal taxes isn't the millionaire, or even the billionaire. It's the W-2 worker earning $133K.

#12 | Posted by Danforth at 2019-08-06 12:09 PM | Reply

Isn't this the same reason for the neo-con invasion list? Oil nations that are changing away from the petro-dollar are invaded and destroyed, their oil ministries de-nationalized and privatized for United States dollar-propping?

Iraq was invaded just weeks after selling oil field access to France and Russia, and the dollar was no longer used in that market. Suddenly it's a terrorist nation in league with Al Qaeda, planning terrorism with Bin Laden, transporting WMD's, riddled with mobile chemical weapons labs and committing the 9/11 attacks. All lies to re-assert the dollar.

Same with Libya, except the added benefit of the worlds largest gold mine.

Afghanistan has opium and lithium.

Russia invaded Crimea to control the oil and natural gas pipeline.

Israel controls the Iraq Haifa pipeline.

Their plan is to squeeze Europe.

#13 | Posted by redlightrobot at 2019-08-06 07:58 PM | Reply

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