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France Assures Push Against Petrodollar Is Not A "Fight Against Dollar Imperialism"
To complete the French triple whammy offensive against the US Dollar this weekend (first, French central banker Noyer suggesting de-dollarisation; second, French oil major Total's CEO "seeing no reason for the Petrodollar"), French finance minister Michel Sapin says "now is the right time to bolster the use of the euro" adding, more ominously for the dollar, "we sell ourselves aircraft in dollars. Is that really necessary? I don’t think so." Careful to avoid upsetting his 'allies' across the pond, Sapin followed up with the slam-dunk diplomacy, "This is not a fight against dollar imperialism," except, of course - that's exactly what it is... just as it was over 40 years ago when the French challenged Nixon.
Nope - no anti-dollar-imperiliasm here at all...
- NOYER: BNP CASE WILL ENCOURAGE ‘DIVERSIFICATION’ FROM DOLLAR
Here is the full google translated segment:
Q. Doesn't the role of the dollar as an international currency create systemic risk?
Noyer: Beyond [the BNP] case, increased legal risks from the application of U.S. rules to all dollar transactions around the world will encourage a diversification from the dollar. BNP Paribas was the occasion for many observers to remember that there has been a number of sanctions and that there would certainly be others in the future. A movement to diversify the currencies used in international trade is inevitable. Trade between Europe and China does not need to use the dollar and may be read and fully paid in euros or renminbi. Walking towards a multipolar world is the natural monetary policy, since there are several major economic and monetary powerful ensembles. China has decided to develop the renminbi as a settlement currency. The Bank of France was behind the popular ECB-PBOC swap and we have just concluded a memorandum on the creation of a system of offshore renminbi clearing in Paris. We have very strong cooperation with the PBOC in this field. But these changes take time. We must not forget that it took decades after the United States became the world's largest economy for the dollar to replace the British pound as the first international currency. But the phenomenon of U.S. rules expanding to all USD-denominated transactions around the world can have an accelerating effect.
In other words, the head of the French central bank, and ECB member, Christian Noyer, just issued a direct threat to the world's reserve currency (for now), the US Dollar.
- Total’s de Margerie Sees No Need for Dollars in Oil Purchases
Oil major Total's chief executive Christophe de Margerie was responding to questions about calls by French policymakers to find ways at EU level to bolster the use of the euro in international business following a record U.S. fine for BNP.
"There is no reason to pay for oil in dollars," he said. He said the fact that oil prices are quoted in dollars per barrel did not mean that payments actually had to be made in that currency.
So even a major beneficiary of the status quo appears to see the end in sight for the Petrodollar.
And now The Triple Whammy
- *FRANCE SAYS INCREASING EURO USE IS ISSUE OF 'GLOBAL BALANCE'
- *SAPIN SAYS EURO AREA NEEDS TO LEAD DISCUSSION ON DOLLAR USE
- *FRANCE NOT FIGHTING 'DOLLAR IMPERIALISM,' SAPIN SAYS (wo shy mention it?)
French Finance Minister Michel Sapin says that now is the right time to bolster the use of the euro in transactions outside the U.S. Sapin speaks in an interview with Bloomberg News in Aix-en-Provence, France.
“We sell ourselves aircraft in dollars. Is that really necessary? I don’t think so,” Sapin says, adding "I think a rebalancing is possible and necessary, not just regarding the euro but also for the big currencies of the emerging countries, which account for more and more of global trade."
“We can avoid the exchange rate risk, and that’s always useful. We can diminish financing costs in pricing more in other currencies,” Sapin says.
“This is not a fight against dollar imperialism,” Sapin says.
“It’s up to Europe, to the euro zone in particular, to lead this argument,” Sapin says.
As The FT reports, Mr Sapin said he would raise the need for a weightier alternative to the dollar with fellow eurozone finance ministers when they meet in Brussels on Monday, although he declined to go into detail about what practical steps might emerge.
As we showed only yesterday...(and have ever since 2010)... nothing lasts forever
Meanwhile, somewhere Putin is still laughing.
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LOLbux will be priced in BTC. And Derps. That's about it. BTC has the same intrinsic trade value as funny cat pictures.
D'or, Chiennez.
Ok and just what other basket case currnecy is going to replace it? The CNY!? The Rubble!? I don't think that this de-dollarization is going to take any time soon. Not until something drastic happens. Besides the Buck has been stable for years now so really what this is all over is kicking dirt because the Greenback was been in a contracting range close to 10 years now.
The Star Buck is stable? Oil was $147 in 2007, an economic disaster was triggered by a lack of oversight by the Fed and hubris on Wall Street, oil went sub $50, and now it is back above $100. Oil is the lifeblood of the economy and the dollar is the ways and means of that trade, so given the price fluctuation, I would say, you are dead wrong about a stable dollar.
Oh and gold has quadrupled over the last decade, another bellweather for an unstable dollar.
I was under the impression "no replacement, no reserve currency" was the best possible outcome.
The greenback has been unstable for 100 years, declining in value the entire time. That's unstable.
If dollars were stable bread would still cost a nickel per loaf.
The dollar was dead the day FDR took it off of the domestic gold standard. It was laid to rest when Nixon closed the gold window. The status quo can go on believing their fiat paper has value until cost push inflation raises all goods past where disposable income can buy necessary goods.
It's getting exciting now....
They have to win a world war first and be able to deploy and demonstrate their military might around the world before they can become a global reserve issuer. Oh, and they have to have natural resources (oil and food) within their lands not drilling for oil in Ghana or such third world nation which are unstable. I guess air carriers in the US will now have to buy airbus in Euro instead of the dollar.
Does this mean our banksters won't be able to fuck over Europe anymore?
Everybody knows the fiat currencies (debt notes) world over will never be repaid or redeemed for anything of value so when the dollar dies all currencies will die along with it. Who's stupid enough to accept Renmembi or Euro or Rubble, etc, when they're all debt notes? The real losers in this global economy are the lenders because they know they'll never be repaid for the good and services they traded for the fiat and the winner is the largest debtor in the world which is the USA because everybody knows we will not pay for all those fiat we issued to the suckers. And who'll come to collect? They have to be super strong and be able to gamble winning a shooting war against the US. Of course they've probably done studies that the US is no longer the home of the braves that are willing to defend it, it's now the home of the politically correct and illegals who'll be more than happy to be under the leadership of Kim Sung Uhn or someone like that; afterall, if you can tolerate the present dictator in the WH why can't you tolerate a Chinese dictator?
quadratic has put his finger on the central question. What will be left? The US economy is going down, but China's and the EU's are also built on fantasamagoric debt and derivatives bubbles and are doomed to collapse. Russia can hardly escape this without a massive crisis even if they don't suffer the same kind of collapse. Can China, Russia, maybe even the EU, working together, somehow manage to stabilize their currencies anyway - perhaps with gold backing?
Could they clear away the debt burden by allow debts denominated in dollars inflate away whild holding fast to their own currencies? Could they do that politically?
And are Renmembi and Rubles really debt notes? In China and Russia the Central Banks are state owned, and could at least, theoretically, spend money into circulation without borrowing. So could Syria, Iran, North Korea - and North Dakota. And so could have Iraq and Libya - but not no more!
Legally the Constitution gives that right to Congress too. The main issue is political. As in, who has the power.
Yep, let's use a currency that would have imploded 2 years ago if it weren't for the Fed. The dollar is a joke, the Euro is something worse
imploded? the FED? you mean the trillion swap? that was reversed? I doubt it was for our european interests only
the funny thing is that your "implosion" of the EUR would result in 18 national currencies coming back to life
it's a feature, this "implosion scenario". an option, which only the EUR has in this clear-cut way. a safety feature
we stopped playing musical chairs 6 years ago.
We're playing musical coffins now.
Just wait till it's musical guillotines! And the country which invented this magical device is...
Froggggie not really worried about dollars.......
concerned about zero ussa LEADERSHIP and filling the vacuum.......
Frances vs USA?
LOL: http://youtu.be/4aMD4uy-QGc