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China Signs Non-Dollar Settlement Deal With Russia's Largest Bank
Slowly - but surely - the USD's hegemony is being chipped away whether by foreign policy faux pas, crossed red-lines, or economic fragility. However, on Day 1 of Vladimir Putin's trip to China it is clear that the two nations are as close as ever. VTB - among Russia's largest banks - has signed a deal with Bank of China to pay each other in domestic currencies, bypassing the need for US Dollars for "investment banking, inter-bank lending, trade finance and capital-markets transactions." Kirill Dmitriyev the head of Russia’s Direct Investment Fund notes, "together it’ll be possible to discuss investment in various projects much more efficiently and clearly," as Russia's pivot to Asia continues to gather steam.
As RT reports, Day 1 for Putin is going well...
VTB, Russia’s second biggest lender, has signed a deal with Bank of China, which includes an agreement to pay each other in domestic currencies.
“Under the agreement, the banks plan to develop their partnership in a number of areas, including cooperation on ruble and renminbi settlements, investment banking, inter-bank lending, trade finance and capital-markets transactions,” says the official VTB statement.
The deal underlines VTB Group’s growing interest in Asian markets and will help grow trade between Russia and China that are already close trading partners, said VTB Bank Management Board Vasily Titov.
But it's not just the banking relationships...
In the first day of a two-day trip to China Russia’s President Vladimir Putin said the two countries will be increasing their bilateral trade to reach a new level.
“Our countries have done a huge job to reach a new historic landmark…. China has firmly settled in a position of our key trade partner,” Putin said.
Putin also said that trade turnover between Russia and China grew almost 2 percent during 2013 to reach about $90 billion.
“If we sustain this pace the level of bilateral trade of $100 billion will be reached by 2015 and we’ll confidently move on,” Putin said.
Increasing investment cooperation is crucial, Putin added.
...
“Together it’ll be possible to discuss investment in various projects much more efficiently and clearly,” as Interfax quotes Kirill Dmitriyev the head of Russia’s Direct Investment Fund.
Nothing lasts forever... remember...
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May I recommend Bitcoin and Maxcoin. Fuck the dollar.
Fuck the FED.
Ummm, no.
Dollar up and Gold Down! lol! The loss of the petro dollar is now good for the dollar and stocks and bad for real money? ahahaha
Everything is good for the dollar.
Soon it will be a good for nothing of course
When Winston Smith is the master accountant, yes the dollar is super and gold is a rock.
Just sign the fucking deal and let's see the west and europe stutter. Fuck NATO and the WAR MONGERING Nulandsman
To succeed something you need a successor and there is none visible on the horizon. Maybe if the Chinese military overtakes the US in capabilities at some point we will all learn Chinese and trade in Yuan, but over the next decade or two China will be preoccupied with its gigantic house of cards in the construction and financial sector. However, whats possibly worse than some currency succeeding the dollar is a collapse of the dollar without any suitable successor. The world as we know it is already falling apart in many places and this could be very chaotic years ahead with the chance of fantastic technological breakthroughs but also a real danger of a setback in human progress as a global society.
I say let her rip.
"The world as we know it is already falling apart in many places and this could be very chaotic years ahead with the chance of fantastic technological breakthroughs but also a real danger of a setback in human progress as a global society."
LOL...
You forgot the sarc tag... Human history IS predominantly chaotic, and a great deal of 'progress' has emerged from chaotic periods.
"What did 600 years of peace and tranquility in Switzerland produce? The coocoo clock"... Orson Wells, The Third Man.
Dr. D a successor is laying in wait and has been since 2009. G-20 has agreed to the algo that wsa developed by Mike Blakley (also help deelop the Euro algo) and sponsored by the Roths. Its called the World Currency Unit. www.wocu.com
Know your enemy
AD
"Weighted elegantly and logically based on International Monetary Fund GDP figures, the WOCU’s low volatility offers market professionals and individuals alike a natural currency stabilisation".
Fuck me. Just put Lord Rotchild's ugly mug on the obverse and call it a day. Now comes in RFID arm patch deposit!
Earth to 'Merica: By letting Bankers lead you around by the nose and ignoring everything you've held sacred for most of your existence, you are losing (have lost?) everything.
Send in John Kerry, he'll fix it.
LOL
Let's see we could go into Vietnam and start shit with the Chinese down there .... Nope we already tried that... Maybe North Korea... Nope already did that... Lets see ... How about Mongolia... Yes thats it we could feed weapons into some Mongolian separatists make sure they are kalashnikovs and make it look like Russia did it... That will fix those stupid negotiations. :P
An Ideal moment for "I told you so" ?
Gartman alert! Gartman alert!........ Time to go all in. Fartman is bearish again:
http://goo.gl/CYJAXQ
And yet, in his speech, Mr. Putin quotes the level of bilateral trade between China and Russia in dollars. Lol.
To the PM dealer I go! Slamdown and Sino-Russia deal is the sign...
Last I checked, China and Russia need the Western world a hell of a lot more than we need them, this is our show and the joke is on you
Yeah, who needs the worlds leading manufacturing and energy producing countries?
Point! Deflator! Round 2...FIGHT!
R2? I scored that a TKO!
Let me spell it out for you. You own a toy store and your buddy owns a gas station, I'm the customer, I decide I'm not buying your junk toys anymore and ditto on your buddie's gas, game over for you.... you see, the customer is always right, DON'T piss off your customers!!!
That "customer" is paying with I.O.Us.
LOL
I gave you an up arrow but should have been down. for forcing coffee through my nostrils onto a clean shirt
Hopefully it was decaf. Hate to hear about Java abuse :) Down vote wasn't me.
good luck with that. just what is our trade deficit with China?
All we produce are lawyers, high fructose corn syrup, and bad cars.
Come now! We also make Franken Food, inflation, death, bad policy, regulation, liar loans, fake paper products, feminism, police proto-death squads, and rivers of bullshit.
We manufacture revolutions too!
When was the time you last checked exactly ? :-)
Long on Chinese Language courses. We all better brush up our Mandarin knowledge, this will be a though world. Damn it, I am only "half way through" with my Life...the other half won't be as fun as the first.
Long on Ammunition too.
Many Americans will be SOL, they are already struggling to become fluent in English.
Sanction this, bitches.
so let's elect Hiliary President already and have Nuland be her sec of state and finalize the downfall of the USA once and for all.
As long as Russia uses whatever color paper they get in return for their natural resources to buy real money they should be okay
Who will be the first major energy producer to accept only gold in trade?
Then we'll see who has Calvin Kleins on and who has a naked saggy ballsack.
As long as the Belgians are doing such a brisk business in waffles and beer that they are parking their profits in UST's, we shall remain calm and carry on.
Shovelhead... It really amazes me how the Belgians can afford so many US Ts...
It used to be 'carribean islands' then G Britian now Belgium. Amazing.
Americans are functional retards - they could list Moon Base Alpha as buyer of USTs and 99.9% of 'Merikans would just drool in front of the talking box.
I hear Moon Base Alpha is GORGEOUS in June!
{wipes drool from chin}
So it begins. Should i start dumping dollars stat?
This begs the question: Who's next? India & China? Iran & China? The EU & China?
When the EU signs with China, it's... TILT / GAME_OVER for USD. The Fed and its True Owners are worried. But, then again, would expect them to hedge by diversifying into all the key currencies. Only the sheeple will be... "penned in".
You underestimate how deep the US cock is shoved down the EU throat.
Well the Saudi Princes are also in Iran on a diplomatic mission today,(Same day hmmmm) also old enemys. I leave it to you to connect the dots or read the chicken entrails. But of course you will here zippo about it on your local Pravda network.
Now where did I put that darn 750ft roll of Reynolds Wrap?
Maybe cavernous stores filled with countless shelves brimming with cheap Chinese trinkets isn't an American birthright after all, and perhaps won't last forever.
So... BTCTH?
If I was China, I would love to pay Russia in rubles. Its kinda like paying Russia in sand. But what I find especially interesting is this current talk about getting closer to reaching a natural gas agreement. They've been working on this for 10 years and are at the same impasse (price) as they were 10 years ago. I can understand China's reluctance. China has more shale gas natural reserves than ANY single country on Earth. They've just been slow in adopting the technology they need to grow their access. Any agreement with Russia will have a limited lifespan.
China and other countries can keep buying physical.
When they hone out physical they can buy loads of paper contracts and then demand delivery.
The paper markets will blow up when they can't deliver. Paper gold is leveraged more than 10:1.
China Jumps into the Fray Using Sun Tzu's Art of War:
http://winteractionables.com/?p=11821
Putin also said that trade turnover between Russia and China grew almost 2 percent during 2013 to reach about $90 billion.
Putting things in perspective, here are two very large world traders rejoicing in trading volume that is slightly larger than one month of Federal Reserve counterfeiting (i.e. $85B/month Quantitative Easing (QE ... aka monetizing)).
So your point is trade between 2 countries is growing the same rate as another's sinking into oblivion?
Actually, the other is sinking 12 times as fast as cooperating trading partners are growing.
Ahh now I get the gist of your post in pointing out the comparison. It is mindboggling when you compare actual work with what is being done here.
Actually, the other is stealing 12 times as fast as cooperating trading partners are growing. FIFY
QE is about artificially lowering interest rate that should be paid to holders of treasuries right? Arbitrarily paying interest below inflation rate is profit.
China is now an industrial power house with 600 million under 40 years old. Russia has extensive resources not even looked at in the far east Siberia. The trade is going east and so will the energy.
America is an island if it did not have the military navy they would be toasted for imports. It really can’t use its military for anything except piracy of the seas. If there is a real conflict it will go nuclear pretty fast in many places, hope you not in the northern hemi-sphere?
Make you wonder why Google executives move to the southern hemisphere, what do they know from data mining?
Those Google executives should be hung for all the criminal stuff they have done to this Country....
Personally the take away from this should be to get our act together and commit to a stronger and more stable dollar. What will happen is no where near this as the people in charge are committed to the dollar's demise. The Obama administration is clueless if not complicit. I'll let you decide. The Fed is trapped and I believe unless they bail right here and let the market fall dramitically the dollars reserve currency status is over.
This'll be great - now China can start exporting more of its inflation, too.
We'll see how long the bear remains hungry for that. China and Russia are only friends but for their common enemy USA, and have longstanding border disputes. When Russia loses it's appetite for China's funny money, we can have a real world war.
soon, no one will want to export to the US with a worthless dollar. Its a pipe dream to assume China will want payment in USD in the future. They will ask for either RMB, EURO, Ruble, even the Panamanian balboa, but no USD. You are ill informed to think otherwise.
"You are ill informed to think otherwise."
And you read and responded to what was not written.
Drat, gold and silver will surely crash since this is obviously bullish for the US Dollar.
~War Is Peace, Freedom Is Slavery, Ignorance Is Strength
there's only one thing to decide according to Dmitry Medvedev, that is PZero price (starting price).
http://www.bloomberg.com/news/2014-05-20/russian-chinese-leaders-silent-...
How does this work exactly. Don't they need to peg their currencies to something? The dollar? Educate me Tyler and readers. Wouldn't this be a good time to peg their currencies to say a basket of commodities and currencies, including the dollar? The problem is that no country's economy is strong enough to want to totally destroy anything right now.
USD is worse than toilet paper. You need a major education. You better go do some reading.
If that is the case, My coffee at 7-11 costed me 3 sheets of toilet paper. It went up almost one sheet
You should be "accosted" for using the term "costed"!
Tuco
Then you will know which MOE deserves to be ... and will be ... the worlds preferred money.
Military might alone did not save the economy of Rome, nor will it save the U.S.A today.
Suing the banks may save the day.
"...Bill Black concurs, stating, “Our system is completely rotten. All of the largest banks are involved—eagerly engaged in this fraud for years, covering it up.” The system needs a complete overhaul.
In the meantime, if the FDIC can bring a civil action for breach of contract and fraud, so can state and local governments, universities, and pension funds. The possibilities this opens up for California (where I’m currently running for State Treasurer) are huge. Fraud is grounds for rescission (terminating the contract) without paying penalties, potentially saving taxpayers enormous sums in fees for swap deals that are crippling cities, universities and other public entities across the state. Fraud is also grounds for punitive damages, something an outraged jury might be inclined to impose. My next post will explore the possibilities for California in more detail. Stay tuned."
Ellen Brown is an attorney, president of the Public Banking Institute, and a candidate for California State Treasurer running on a state bank platform. She is the author of twelve books including the best-selling Web of Debt and her latest book, The Public Bank Solution, which explores successful public banking models historically and globally.
http://dandelionsalad.wordpress.com/2014/04/13/the-global-banking-game-i... (Professor William Black and Greg Hunter interview included in article)
The major Banks and Financial Institutions will continue to publish ridiculously low gold price targets because all they have left in their BAG OF TRICKS, is the ILLUSION OF FAITH. Hell, it’s not even real faith, but rather the sort of delusional faith in a system that is rotten to the core.
As Russia, China and the other BRIC countries work towards a system that doesn’t include the TURD called the U.S. Dollar, Americans have less and less time to prepare for the GREATEST TRANSFER OF WEALTH…. in history.....SRSRocco Report
Say goodbye to the Kissinger petro-Dollar. Dumb Ass Politicians (NWO) just shot themselves in the testicles. Weird.
Hilarious and weird but also tragic that one would hand over the control of a currency to China, a country where 3 famines took place, at least one of them seemingly intentional or the result of extremely poor judgment, human rights violations never stop and executions are the punishment for unacceptable misconduct and fraud (as opposed to acceptable fraud). As if this country is the shining example of a country who should be in charge, should set the standards of how to operate a country.
Oh yes, it is certainly interesting times we are living in. We have megarich fools, a military busy fighting an imaginery enemy and the 1st world nations populace scrambling for a way to survive, all the while the circus act continues thanks to a media presenting the citizens a world seen through rose-colored glasses.
The yuan won't be unpegging from usd anytime soon. It would immediately spike up 20-30% and nuke their manufacturing sector. I do like the fact that the dollar is being challenged though, and do see many more direct settlement deals being put together with China.
In any case this isn't good for the ponzi U.S. bond market as the usd will continue to devalue and offset gains made by bond price increases. Then there's that nasty "real inflation" vs bond yields to contend with on top of that.
Bullish?
Ain't it terribly sad that we will look back on this very shortly and ask ourselves why we didn't force the TBTFs to "fail" 6 years ago!...
Like the investigation of Don Rumsfeld's announcement of $2.3 trillion missing from the DoD budget on September 10, 2001 and then the day that followed that "announcement" -the American people can thoughtfully look in the mirror and blame themselves for what has and will continue to take place in their names...
The big banks better start offering decent interest on deposits pretty soon because people are going to start taking their money out and putting it into something that will hold it's value.
Of course, the banks won't be doing this as long as they get their free crack from the Fed.
I can see Russia!
No problem. Either Russia or China will be responsible citizens and reload EBT cards until the end of times.
'Besides, just think if the US and China get into a hot pissing contest, what happens to all those facilities owned by American corporations? Big write off? Still get to employ the enemy while the youngin's are taking bullets?'
is this what the UN describes as peace?
'Bout Fucking Time! Dollar SUCK's!!! At least US politicians currency is the same color as their Dumb-Ass constituents...
How about China is moving to Canada
The Canadian population grew last year by 1.2%, and is now is above 35.2 million. Some of the growth is immigration of the educated and wealthy looking for a better place to live. The Canadians have a program for millionaires to move to Canada and apply for citizenship. To qualify the primary applicant must have a net worth of a minimum of C$1.6M. The applicant must then loan the Canadian government C$800K interest free for five years. After these requirements are met, they then apply for citizenship.
The South China Morning Post reports there is a backlog of 45,000 Chinese with a combined net worth of C$12.9B who have applied for the Canadian program for millionaires, and want to move to British Columbia. The data is from January 2013, Total backlog for the Canada's Investor Immigrant program was 76,651 of which 57,308 were applicants from China.
The massive amounts of paper money that has been injected into the global economies often ends up in unusual places. British Columbia, it seems, is becoming the new Switzerland. It is a safe haven for the wealthy, where they are protected by laws and regulations, and the number of applicants mean this trend will continue.
http://www.cashbackforex.com/articles/view/tabid/364/ID/999/Default.aspx
That program is over. Real estate in B.C. is not doing too bad but the top is in as far as the high end is concerned for the very reason the door to rich Chinese has been slammed shut.
Safe haven until the earth wobbles
And the foundations turn to mud
And the Wave comes.
What doesn't sink in mud
Will be washed to sea.
Great place to live,
Until it isn't.
Hey, how would I go about signing a non dollar agreement with the US? Sounds interesting. Can I pay them in Brazil nut shells or something?
I'm a newbie at this site, novice trader but someone told me that this graph pretty much sums up our dollar dilemma
http://research.stlouisfed.org/fred2/series/MZMV
Pepe Escobar via tomdispatch
The Birth of a Eurasian Century
Russia and China Do Pipelineistan
http://www.tomdispatch.com/post/175845/tomgram%3A_pepe_escobar%2C_who%27...
Give me Yuan bitchez!
http://rt.com/business/160068-china-russia-gas-deal/
After 10 years of negotiations, Russia's Gazprom and China's CNPC have finally signed a historic gas deal which will provide the world's fastest growing economy with the natural gas it needs to keep pace for the next 30 years.
The memorandum of understanding was signed in the presence of Russian President Vladimir Putin and President of China Xi Jinping on the second day of Putin’s two-day state visit to Shanghai.
No pricing details have been given so far. Gas will be delivered to China via the eastern 'Power of Siberia' pipeline.
It's been signed.