Putin Prepared To Avoid Dollar In Chinese Commodity Transactions

Tyler Durden's picture

A week ago the world was split into two camps: those who said Robert Fisk was an idiot and that anyone who believes him is a tinfoil hat wearing paranoid sociopath, and those who said Robert Fisk was brilliant and that anyone who does not believe him is an unimaginative, unintelligent, conservative boor. Yet nobody tried to confirm or deny his data. Today, Russia's Prime Minister and de facto viceroy Vladimir Putin finally made it clear that the presumably insane Fisk was not making stuff up.

RIA Novosti reports:

BEIJING, October 14 (RIA Novosti) - Russia is ready to consider
using the Russian and Chinese national currencies instead of the dollar
in bilateral oil and gas dealings, Prime Minister Vladimir Putin said
on Wednesday.

The premier, currently on a visit to Beijing, said a final decision
on the issue can only be made after a thorough expert analysis.

"Yesterday, energy companies, in particular Gazprom, raised the
question of using the national currency. We are ready to examine the
possibility of selling energy resources for rubles, but our Chinese
partners need rubles for that. We are also ready to sell for yuans,"
Putin said.

He stressed that "there should be a balance here."

On Tuesday, Russia and China agreed terms for Russian gas deliveries
at a level of up to 70 billion cubic meters a year. China also imports
oil from Russia.

The Russian prime minister said the issue would be addressed among
others at a meeting of Shanghai Cooperation Organization (SCO) finance
ministers, who are to convene before the end of the year in Kazakhstan.

So while others debate the validity of the messenger, as traditional Western mindset is so much much more willing to do, instead of considering the actual message content (and how to rectify if it is a bad one, instead of simply ignoring it), the dollar is soon going to find itself all alone, playing in a corner with itself, as Bernanke and Obama push the S&P to 1 gazillion, while at the same time America becomes removed from any future reserve currency intermediation and becomes a peripheral, if not outright third world, country, rife with social conflict once the middle class finally wakes up to its rape and pillage, far after it has become too late.