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Russia And India Begin Negotations To Use National Currencies In Settlements, Bypassing Dollar

Tyler Durden's picture


Over the past 6 months, there has been much talk about the strategic proximity between Russia and China, made even more proximal following the "holy grail" gas deal announced in May which would not have happened on such an accelerated time frame had it not been for US escalation in Ukraine.

And yet little has been said about that other just as crucial for the "new BRIC-centric world order" relationship, that between Russia and India. That is about to change when yesterday the Russian central bank announced that having been increasingly shunned by the west, Russia discussed cooperation with Reserve Bank of India Executive Director Shrikant Padmanabhan. The punchline: India agreed to create a task group to work out a mechanism for using national currencies in settlements. And so another major bilateral arrangement is set up that completely bypasses the dollar.

From the Russian Central Bank:

First Deputy Chairman of the Central Bank of the Russian Federation KV Yudaeva and Executive Director of the Reserve Bank of India G. Padmanabhan at the twentieth meeting of the Subgroup on banking and financial issues of the Russian-Indian intergovernmental commission on trade-economic, scientific-technical and cultural cooperation discussed the current state and prospects of cooperation between banks.


The meeting was attended by representatives of central banks, ministries and agencies, credit organizations in Russia and India.


During the meeting dealt with the problems faced by the branches and subsidiaries of banks in the two countries and ways of addressing these problems.


As a priority area discussed the use of national currencies in mutual settlements. Given the urgency of the issue and the interest of commercial structures of the two countries, the meeting decided to establish a working group to develop a mechanism for the use of national currencies in mutual settlements. It will consist of representatives of banks and, if necessary, the ministries and departments of the two countries to coordinate its activities will be central banks of Russia and India.

What is curious is that now that China has sided firmly with Russia when it comes to geopolitical strategy (not least when it comes to recent development surrounding the downing of flight MH-17, recall "China Blasts "One-Sided Western Rush To Judge Russia" Over MH17"), and thus Russia behind China when it comes to claims by the world's most populous nation in its territorial dispute with Japan, Japan too is scrambling to secure a major ally in Asia, and it too is trying desperately to get on India's good side.

Bloomberg reports that "Japan’s Sasebo naval base this month saw unusual variety in vessel traffic that’s typically dominated by Japanese and U.S. warships. An Indian frigate and destroyer docked en route to joint exercises in the western Pacific."

The INS Shivalik and INS Ranvijay’s appearance at the port near Nagasaki showed Japan’s interest in developing ties with the South Asian nation as Prime Minister Shinzo Abe’s government faces deepening tensions with China. Japan for the third time joined the U.S. and India in the annual “Malabar” drills that usually are held in the Bay of Bengal.


With Abe loosening limits on his nation’s military, the exercises that conclude today showcase Japan’s expanding naval profile as China pushes maritime claims in disputed areas of the East and South China Seas. For newly installed Indian Prime Minister Narendra Modi, Japan’s attention adds to that of China itself, in an opportunity to expand his own country’s sway.


Japan’s involvement in Malabar underscores its interest in helping secure its trade routes to Europe and the Middle East. The Indian Ocean is “arguably the world’s most important trading crossroads,” according to the Henry L. Stimson Center, a foreign policy research group in Washington. It carries about 80 percent of the world’s seaborne oil, mostly headed to China and Japan.




“The Japanese are facing huge political problems in China,” said Kondapalli in a phone interview. “So Japanese companies are now looking to shift to other countries. They’re looking at India.”

So on one hand Japan is rushing to extend a much needed olive branch by the "insolvent western alliance + Japan" to India; on the other Russia is preparing to transact bilterally with India in a way that bypasses the dollar.

Which means that just as Germany has become the fulcrum and most strategic veriable in Europe (more on this shortly) whose future allegiance to Russia or the US may determine the fate of Europe, so suddenly India is now the great Asian wildcard.

Perhaps a very important hint of which way India is headed came moments ago from Reuters, which said that India has raised the issue of U.S. surveillance activities in the South Asian nation with Secretary of State John Kerry, the foreign minister said on Thursday. "Yes, I raised this issue (U.S. snooping) with Secretary John Kerry ... I have also conveyed to him that this act on the part of U.S. authorities is completely unacceptable to us," Sushma Swaraj said at a joint news conference in New Delhi. In response, Kerry said: "We (the United States) fully respect and understand the feelings expressed by the minister."

Thank you Snowden for helping move the geopolitical tectonic plates that much faster.

Now let the real courting begin.


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Thu, 07/31/2014 - 11:45 | 5027497 PlusTic
PlusTic's picture

Vlad taking care of business while Obummer destroys a nation...

Thu, 07/31/2014 - 11:46 | 5027498 Mr Pink
Mr Pink's picture

Tick tock motherfuckers

Thu, 07/31/2014 - 11:53 | 5027533 actionjacksonbrownie
actionjacksonbrownie's picture

Speaking of "tick tock"... how long does it take to remove the data from a flight data recorder??? A few minutes - a couple hours?


Awefully quiet out there now that the "proper authorities" have obtained all the evidence. I suspect that if Russia or the rebels were implicated in any way whatsoever, we would have heard all about it within 1 day of the black boxes being handed over.


I am surprised that the mainstream media isn't all over this...



Thu, 07/31/2014 - 11:56 | 5027542 dontgoforit
dontgoforit's picture

Are you ready for tribulation?  Better get ready; the bridesmaid is at the threshold.

Thu, 07/31/2014 - 11:56 | 5027550 cifo
cifo's picture

Hopefully their currencies are based on gold holdings.

Thu, 07/31/2014 - 11:59 | 5027577 DJ Happy Ending
Thu, 07/31/2014 - 12:11 | 5027633 Renewable Life
Renewable Life's picture

For years I heard these Wall Street blots say, "the demise of King dollar is all talk, there is absolutely NO evidence of it happening"!!

You don't hear that shit being spouted much anymore, do you???

There just as delusional to the ramifications, but no one is talking crazy anymore at least!!

Thu, 07/31/2014 - 12:16 | 5027651 BaBaBouy
BaBaBouy's picture

THIS IS WHY USA, Worlds FIAT PAPER Reserve Currency Provider, Is Targeting Russia Bad Bad Guy...

Thu, 07/31/2014 - 12:26 | 5027697 PT
PT's picture

So how many countries is that now?  I've lost count.

I'm waiting for Vlad to do some deals with US companies to avoid using the US dollar ... he he he.
Naaaah, forget it.  Why would he want to support expensive US CEOs when he can deal with cheaper Indian and Chinese CEOs?

Thu, 07/31/2014 - 12:30 | 5027713 hedgeless_horseman
hedgeless_horseman's picture



As the United States of America collapses, the jewish
bankers in London will have Americans blaming our black president,
muslim terrorists, and russian anti-semites.

Thu, 07/31/2014 - 12:31 | 5027718 LawsofPhysics
LawsofPhysics's picture

Not around here they won't.

Thu, 07/31/2014 - 12:40 | 5027726 hedgeless_horseman
hedgeless_horseman's picture



To Jews, the use of a Scape Goat is...Tradition!

A man was selected, preferably a priest, to take the goat to the precipice in the wilderness; and he was accompanied part of the way by the most eminent men of Jerusalem. Ten booths had been constructed at intervals along the road leading from Jerusalem to the steep mountain. At each one of these the man leading the goat was formally offered food and drink, which he, however, refused. When he reached the tenth booth those who accompanied him proceeded no further, but watched the ceremony from a distance. When he came to the precipice he divided the scarlet thread into two parts, one of which he tied to the rock and the other to the goat's horns, and then pushed the goat down (Yoma vi. 1-8). The cliff was so high and rugged that before the goat had traversed half the distance to the plain below, its limbs were utterly shattered. Men were stationed at intervals along the way, and as soon as the goat was thrown down the precipice, they signaled to one another by means of kerchiefs or flags, until the information reached the high priest, whereat he proceeded with the other parts of the ritual.

Thu, 07/31/2014 - 12:41 | 5027759 Manthong
Manthong's picture

Aaa.. all in all, it’s just another BRIC in the wall..

Thu, 07/31/2014 - 13:02 | 5027873 BaBaBouy
BaBaBouy's picture

Nothing Like An Old Jewish Goat Story To Pick Us Up On An Otherwise Shitty Day...

Thu, 07/31/2014 - 13:47 | 5027942 BaBaBouy
BaBaBouy's picture

"" CIA Admits Spying On Senate Computers ""

@ USa Regime Central CORE...
Excellent, They Are Now EATING Each Other Right At The Regimes Top Levels...

Thu, 07/31/2014 - 14:20 | 5028303 COSMOS
COSMOS's picture

Lots of Goyim walking around with Threads woven into their Dollar bills.

Thu, 07/31/2014 - 13:30 | 5028009 The_Dude
The_Dude's picture

I always enjoyed this little is a description.


All vows, and prohibitions, and oaths, and consecrations, and konams and konasi and any synonymous terms, that we may vow, or swear, or consecrate, or prohibit upon ourselves, •from the previous Day of Atonement until this Day of Atonement and ...• ?from this Day of Atonement until the Day of Atonement that will come for our benefit.? Regarding all of them, we repudiate them. All of them are undone, abandoned, cancelled, null and void, not in force, and not in effect. Our vows are no longer vows, and our prohibitions are no longer prohibitions, and our oaths are no longer oaths.


The Kol Nidrei prayer has been used by non-Jews as a basis for asserting that an oath taken by a Jew may not be trusted.[44] Historically, this accusation was leveled so often and so persistently that many non-Jewish legislators considered it necessary to have a special form of oath administered to Jews ("Oath More Judaico"), and many judges refused to allow them to take a supplementary oath, basing their objections chiefly on this prayer. As early as 1240 in the Disputation of Paris, Yechiel of Paris was obliged to defendKol Nidrei against these charges. The Russian government, in 1857, decreed that the prayerbooks must include, as an introduction to Kol Nidrei, a Hebrew explanation to the readers of the limited nature of the vows that could be released by this ceremony.[45]

Thu, 07/31/2014 - 14:21 | 5028313 COSMOS
COSMOS's picture

LOL what is honor among Criminals

Thu, 07/31/2014 - 12:56 | 5027836 cockroachfuture
cockroachfuture's picture

LoP where do you live and what's the local metal scene like? I'm considering a move.

Thu, 07/31/2014 - 13:34 | 5028047 LawsofPhysics
LawsofPhysics's picture

Without giving too much away, I am generally located in Texas and see plenty of exchange in PMs and barter already.

Thu, 07/31/2014 - 13:52 | 5028144 El Vaquero
El Vaquero's picture

Huh, I thought you were in UT for some reason. 

Thu, 07/31/2014 - 12:32 | 5027724 The Big Ching-aso
The Big Ching-aso's picture

I guess they could call it the Rublepee.

Thu, 07/31/2014 - 13:07 | 5027907 franzpick
franzpick's picture

I'm naming it: The RU-RU.

Thu, 07/31/2014 - 13:57 | 5028180 El Vaquero
El Vaquero's picture

People will blame all sorts of shit.  But mostly they'll be worried about where their next meal is going to come from, and that's where shit gets scary.  Not only do you have to worry about Zombie Sheep, but also crazy dictator fucks rising on the promise of returning things to the way they were and a full belly.

Thu, 07/31/2014 - 18:48 | 5029884 TheSecondLaw
TheSecondLaw's picture

There's one in South Africa - Julius Malema. Such a large dungheap of poverty-stricken people he stands on to crow his message while he personally wears Rolex and drives BMW and lives in mansion.  But the poor buy it cause what's their alternative?  Dumb hope is a stronger opiate than no hope.  After the global meltdown we're going to see much much more of this around the world.

Thu, 07/31/2014 - 13:12 | 5027930 Abitdodgie
Abitdodgie's picture

So a Rothschilds central bank of India is making a deal with a Rothschilds central bank of Russia to bypass a Rothschilds central bank of America , right

Thu, 07/31/2014 - 13:48 | 5028102 hedgeless_horseman
hedgeless_horseman's picture



Correct, except you should say Rothschild Branch Bank instead of Central Bank. Thank you for trying to keep us on track.

Thu, 07/31/2014 - 15:01 | 5028557 viahj
viahj's picture

yep, or do you think that a Rothschild bank actually cares about the USD?  once the USD is played out, they move on to the next game and start all over.

Thu, 07/31/2014 - 15:17 | 5028656 meghaljani
meghaljani's picture

What evidence do you have to prove that Russian and Indian central banks are owned by Rothchild family?

Thu, 07/31/2014 - 12:01 | 5027585 Thought Processor
Thought Processor's picture



Call me crazy, but if Russia locks up trade with both China and India in er, non-dollars then where do all the extra dollars go that the world is flooded with?



Thu, 07/31/2014 - 12:04 | 5027601 eclectic syncretist
eclectic syncretist's picture

Perhaps the Fed will raise interest rates in hopes of getting more suckers to buy treasuries.

Thu, 07/31/2014 - 12:40 | 5027752 zaphod
zaphod's picture

Rates can go up? I call BS, I've only seen them go down in my lifetime. MSNBC tells me we will have negative rates soon and then all will be well. 

Thu, 07/31/2014 - 13:07 | 5027904 BaBaBouy
BaBaBouy's picture

""Call me crazy, but if Russia locks up trade with both China and India in er, non-dollars then where do all the extra dollars go that the world is flooded with?""

Its Called A REVERSE-SPLIT (ie Devaluation), 1 For 1000 or so...

Thu, 07/31/2014 - 12:10 | 5027628 Headbanger
Headbanger's picture

Exactly!   All those unwanted dollars flood the FX markets making them worthless!

Which is why the Federal Reserve is raising U.S. Treasury yields now to prevent a complete collapse of the dollar value.

We can also expect oil to get a huge spike up in price to soak up U.S. dollars.

So expect a major war to start to spike oil prices and to create a flight to safety into the U.S. dollar


BTW, all this will cause massive inflation to soak up all those unwanted dollars too

Thu, 07/31/2014 - 12:17 | 5027662 Monty Burns
Monty Burns's picture

Maybe, but it should be happening by now. But no sign, as far as I can see, of those dollars flooding home....

Thu, 07/31/2014 - 12:26 | 5027696 Winston Churchill
Winston Churchill's picture

RE in Kalifornia ?

Thu, 07/31/2014 - 12:35 | 5027743 Bastiat
Bastiat's picture

SAn Francisco real estate market,  Silicon Valley bubble.

Thu, 07/31/2014 - 13:01 | 5027863 RaceToTheBottom
RaceToTheBottom's picture

I think real-estate.  I think there are lots of foreclosure stuff still out there, yet prices still rise.

Stockmarket and Hockey-stick IPOs?

Thu, 07/31/2014 - 13:05 | 5027895 El Vaquero
El Vaquero's picture

This is the kind of thing that happens slowly at first, then all of a sudden.  It's been happening for a while, but you still have to wait until the "all of a sudden" phase.  Patience, and be careful what you wish for.

Thu, 07/31/2014 - 14:19 | 5028297 dontgoforit
dontgoforit's picture

'All of a sudden' has been palpable for awhile; now it is getting real.

Fri, 08/01/2014 - 01:35 | 5031403 Dubaibanker
Dubaibanker's picture

Headbanger, Hi again.

With flight to safety, and all the yuan agreements for trade as well as settlement tied up, barter trade on the rise, bitcoin and gold being used more than ever, Iran having given the experience of what to do when you are sanctioned, the world outside US has learned a lot in the last few years. More and more bonds are being issued in CNH instead of in EUR or USD. Caterpillar, BP, VW, Gazprombank and Indian banks and many others have already issued bonds in CNH. Most chinese and HK companies as well as Singaporean companies issue lots of bonds in local currencies including CNH instead of USD.

China has started appreciating the yuan again aggressively since last week. Once the Chinese move further up the chain with more consumption i.e. more imports, than just exports which trend has been ongoing since 2009 onwards, China will actually become more of a safe haven. Only thing people dont like about china is that they are opaque but when did we last see a top most politicain go to jail for corruption? It has heppened in China at least 3-4 times just in the past 1 year.

Well, then again we dont live in  a normal world as far as the fake economies of the western capitalist countries are concerned.....sanctioning Russia but not sanctioning Israel but selling them not a great way for a world leader like USA to continue to be respected by all.

US has already sent massive inflation to countries it has never liked historically such as Iran, Venezuela, Vietnam and Zimbabwe, now it is time for a payback!

Thu, 07/31/2014 - 12:11 | 5027631 Sudden Debt
Sudden Debt's picture

Mexico, they use them to make pignata's and stuff them full of sugar sweets and sell them back to Americans for more dollar paper.

Thu, 07/31/2014 - 12:48 | 5027789 Max Cynical
Max Cynical's picture

Call me crazy, but if Russia locks up trade with both China and India in er, non-dollars then where do all the extra dollars go that the world is flooded with?

Residential/commercial real estate, productive assets, land, farms, businesses, etc...there's no restriction on foreign capital investment.

Thu, 07/31/2014 - 13:45 | 5028101 tumblemore
tumblemore's picture

"where do all the extra dollars go that the world is flooded with"


by magic a trillion dollars becomes worth a billion dollars (hence why the neocons and banking mafia are beating the war drums to scare Vlad and the BRICS off)


Thu, 07/31/2014 - 14:38 | 5028384 The Econ Ideal
The Econ Ideal's picture

All those dollars exported will come back to the U.S. ... to buy assets and drive up inflation. 

Thu, 07/31/2014 - 12:01 | 5027579 NoWayJose
NoWayJose's picture

Especially the cockpit voice recordings and directional changes. I could see taking more time on analyzing the flap position or hydraulics, but voice recordings? My hunch is that they are afraid that the Russkies captured those same recordings. If they release them in an edited fashion, it will prove manipulation by the US/EU. Same with satellite data. If you do not release anything, you can use the MSM to imply guilt.

Thu, 07/31/2014 - 13:46 | 5028104 SWRichmond
SWRichmond's picture

I think it's a pretty safe bet that Putin has a copy of all the data.

It's been very interesting to me to watch this propaganda play out.  The west is so accustomed to having their way, using the MSM to drive the story the way they want, and convincing everyone to go along with their version of the story.  And that's clearly not happening anymore, as the sharks smell US blood in the water and know they no longer need to kowtow to the US line like they used to, no matter how fucking ridiculous and self-serving it was.

Putin hangs back and counterpunches, always with great effect.

Thu, 07/31/2014 - 14:56 | 5028516 Thought Processor
Thought Processor's picture



Putin has everything he needs on MH-17.   The whole western propaganda machine had to turn tail virtually overnight as Russia laid it on the table.


It looks like it was 'lured' in and down in altitude by the Ukraine forces / Kiev contraol and then fired upon.  No accident.   Should be mulitiple voice recordings verifying hte Kiev control of this.

Thu, 07/31/2014 - 12:42 | 5027760 SoDamnMad
SoDamnMad's picture

I never understood how the worker in the video could find a black box in the middle of a wheat field what with so many wires and cables connected to it. I never saw any fuselage in that field, just "Lookie here what I found."   When the men got filmed cutting the bulkhead section apart with a gas powered abrasive saw I figured there goes the REAL black box.  Vlad's "robust investigation was a non-event. 

Thu, 07/31/2014 - 12:54 | 5027822 whirling tword ...
whirling tword freedom's picture

LOL... just got a vision in my head of the movie, "The Stand"... with obama running around radiated saying, "tick tock, tick tock!".....   I guess Ebola may be the new Capt. Trip.  Jeeeze.

Thu, 07/31/2014 - 13:31 | 5028024 Bossman1967
Bossman1967's picture


Thu, 07/31/2014 - 11:52 | 5027529 souljaboy
souljaboy's picture

If I didn't know better, I'd say Obama was doing it on purpose.

Thu, 07/31/2014 - 11:58 | 5027565 General Decline
General Decline's picture

He is.  But just following orders, man!

Thu, 07/31/2014 - 11:58 | 5027568 PlusTic
PlusTic's picture

I do know better, and he is doing it on purpose ;)  only reason this puppet was groomed for the role

Thu, 07/31/2014 - 12:15 | 5027648 TheInfoman
TheInfoman's picture

Alisky pulling the puppet strings from his grave.

Thu, 07/31/2014 - 12:01 | 5027581 CrashisOptimistic
CrashisOptimistic's picture

India imports 4 million bpd of the good stuff.  So far, not much from Russia. 

They have said they want to rely less on Persian Gulf sources for gas and oil, excepting Iran.

Russia is going to have another customer.  It amazes me that the US powers that be don't understand how powerful their position is.

Thu, 07/31/2014 - 12:08 | 5027629 slightlyskeptical
slightlyskeptical's picture

They understand it all right, but obviously they don't understand how to stop it. Every move they make just pushes things in the opposite direction.

Thu, 07/31/2014 - 12:46 | 5027780 angel_of_joy
angel_of_joy's picture

As Forest Gump used to say, "stupid is what stupid does". At some point Russia might ask its Western clients to pay for its resources in rubbles (with gold as alternative). I suspect they are not in that position just yet, but it won't take more than 1 year, 2 at max. That would immediatelly collapse what's left of the current house of cards called "Western economy". It would also be the supreme humiliation for US and its pony, UK.

Thu, 07/31/2014 - 12:56 | 5027834 whirling tword ...
whirling tword freedom's picture

Even if the GOP doesn't admit it... We're having a constitutional crisis.....  a real one.

Thu, 07/31/2014 - 13:07 | 5027908 El Vaquero
El Vaquero's picture

That's what happens when moneyed interests gain too much influence.

Thu, 07/31/2014 - 13:59 | 5028197 tumblemore
tumblemore's picture

The interests of the financial sector are mostly at odds with the interests of the country as a whole so when the financial sector becomes too powerful the country is doomed.



Thu, 07/31/2014 - 12:32 | 5027721 eishund
eishund's picture

Yup, by playing golf. 5hrs of it.

Thu, 07/31/2014 - 13:29 | 5028007 The Longest Call
The Longest Call's picture

They must have WMDs, I'm sure of it!

Willie hits the nail on the head:

Thu, 07/31/2014 - 11:47 | 5027499 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

So THATS why gold went straight down this morning...

Thu, 07/31/2014 - 11:55 | 5027545 Magnix
Magnix's picture

Why? If dollar crashes gold will be a KING, right?

Thu, 07/31/2014 - 11:59 | 5027576 bigdumbnugly
bigdumbnugly's picture

gotta brush up on your grasp of sarcastic humor there, mag.

Thu, 07/31/2014 - 12:06 | 5027610 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Reminds me of an old Simpsons bit:


Gen-X guy: "Yeah, like THATS really cool!"

Other Gen-X er: "Dude, are you being sarcastic?"

Gen-X guy: "I don't even know anymore."




Thu, 07/31/2014 - 14:06 | 5028233 tumblemore
tumblemore's picture

Every time something happens in the real word that would weaken the dollar in a real market the banking mafia push the gold price down. They have to because if they let the gold price rise it would become self-reinforcing as every 1% rise makes it a better store of value than the dollar.


The question is what is the limit? For example if they are at least partially using real gold to help keep the price down then how close are they to using up the last of the US' and Germany's gold?


Very close or far away - no one knows but them.



Thu, 07/31/2014 - 11:47 | 5027500 Itchy and Scratchy
Itchy and Scratchy's picture

Looks like Vladdy is bucking for the Nobel Peace Prize in Economics?

Thu, 07/31/2014 - 11:58 | 5027561 bigdumbnugly
bigdumbnugly's picture

i thought those were now given out before you actually do anything?

Thu, 07/31/2014 - 13:03 | 5027884 tbd108
tbd108's picture

And share it with Snowden.

Thu, 07/31/2014 - 11:47 | 5027505 ekm1
ekm1's picture

There are at least $60 trillion sloshing around.


World GDP is $80 trillion annually.


There is no reason for world to keep using USD is 3/4 of its output is claimed instantly.



Thu, 07/31/2014 - 11:50 | 5027513 LawsofPhysics
LawsofPhysics's picture

Correct.  Full faith and credit.  Anyone else buying Rubles and the Real? albeit temporarily...


strong dollar...

for now.

Thu, 07/31/2014 - 11:56 | 5027552 Callz d Ballz
Callz d Ballz's picture

Faith No More...

It's alive, afraid, a lie, a sin
It's magic, it's tragic, it's a loss, it's a win
It's dark, it's moist, it's a bitter pain
It's sad it happened and it's a shame

You want it all but you can't have it
It's in your face but you can't grab it

Thu, 07/31/2014 - 11:51 | 5027521 Al Huxley
Al Huxley's picture

I understand the fundamental rationale for your argument, but I don't see where you get your fanatical certainty about the imminent inevitability of a particular set of consequences.

Thu, 07/31/2014 - 11:52 | 5027524 ekm1
ekm1's picture

Human nature


When too many oligarchs claim the same real assets, then some oligarchs eliminate the other oligarchs.


Simple world history documented for 4000 yeras

Thu, 07/31/2014 - 11:55 | 5027541 fonzannoon
fonzannoon's picture

The last time the banks went under they were all bailed out and depositors were made whole. The markets roared back quickly. Where exactly was any money extinguished that helped anything that we need to do it again?

Thu, 07/31/2014 - 11:59 | 5027558 ekm1
ekm1's picture


Lehman, Bear Stearns surrendered. No bullets through heads.

Their chaimans got millions and surrendered. Very smart.


Fed drained lots of dollars leading to 2008. Fed caused 2008 margin call on the system manually.

Thu, 07/31/2014 - 11:59 | 5027574 fonzannoon
fonzannoon's picture


Lehman and Bear did not surrender. They were beaten to death at the kitchen table with baseball bats as a lesson to all the other banks that they are all in this together now.

Thu, 07/31/2014 - 12:03 | 5027596 ekm1
ekm1's picture




True dat.

My point is that nobody died.

Thu, 07/31/2014 - 12:08 | 5027618 fonzannoon
fonzannoon's picture

My only point is nothing was fixed by doing that. We are right back where we were.

Thu, 07/31/2014 - 12:43 | 5027762 ekm1
ekm1's picture

Correct. Obama undid what bush started.

Thu, 07/31/2014 - 12:50 | 5027802 walküre
walküre's picture

Worse actually, fonz. Tons of faith capital and credibility or is it "credulity" was destroyed when the Fed threw everything and the kitchen sink at the sinking economy. (sticking with your image they met at the kitchen table).

Would BRICS dev bank been created if they had done the sensible thing and left the banks to their own devices? I don't think they would have been faced with this consequence of their own stupidity and greed.

Thu, 07/31/2014 - 14:28 | 5028050 DoChenRollingBearing
DoChenRollingBearing's picture

I don't think that the "BRICS Bank" has/had much of anything to do with Lehman or the Fed.  It looks more like a junior-sized version of the World Bank and IMF (and at least in part a political response based on resentement).  The article below is based on the actual founding agreements signed recently in Fortaleza, Brazil re the "BRICS Bank":

"The BRICS Bank: A First Look"

Thu, 07/31/2014 - 12:05 | 5027608 Al Huxley
Al Huxley's picture

I saw that movie!  Didn't Deniro play Paulson?  It was a while ago, I might be getting things mixed up a little...

Thu, 07/31/2014 - 12:09 | 5027625 fonzannoon
fonzannoon's picture

Lehman and Bear

"always the dollar, always the fucking dollar"

Thu, 07/31/2014 - 12:08 | 5027620 kliguy38
kliguy38's picture

might be more accurate than you believe

Thu, 07/31/2014 - 13:10 | 5027921 Duffy
Duffy's picture

Bear absolutely hemorrhaged money for a couple years first. 

Largely because they lied about quite basic hedge fund metrics, comprised of subprime poo.

Thu, 07/31/2014 - 11:59 | 5027573 dontgoforit
dontgoforit's picture

Prophecy.  Don't doubt it.  A judgement is coming on America.  We've been warned, but most people still treat God as though He didn't exist.  Not too late to quit worshiping the false gods of pride, wealth, money - if we turn back to Him we will avoid the cataclysm that is just ahead.  Choices, friends.  We must make the right ones.

Thu, 07/31/2014 - 12:31 | 5027719 greatbeard
greatbeard's picture

>> if we turn back to Him

Which him is the right him? Is it the Babtist him up the dirt road from me or the Catholic him in that great big place downtown?  Jewish him?  Muslim him?  What him is your preference?

Thu, 07/31/2014 - 12:53 | 5027825 worbsid
worbsid's picture

I think it is a 'her'.  I once flew so high and saw the face of God ... she is black!

Thu, 07/31/2014 - 13:05 | 5027900 Winston Churchill
Winston Churchill's picture

Why did god create man ?

She could not get a dildo to mow the lawn.

Thu, 07/31/2014 - 13:16 | 5027951 exi1ed0ne
exi1ed0ne's picture

The one made out of pasta, naturally.

Thu, 07/31/2014 - 14:27 | 5028343 dontgoforit
dontgoforit's picture

The Him.  The creator of everything.  He described Himself as 'I Am.'  That Him.  Don't wait too late to seek Him out.  He only asks for your recognition and your love.  Give Him both.  We owe Him, everything. 

Thu, 07/31/2014 - 14:17 | 5028290 tumblemore
tumblemore's picture

I think any prophecy that says "If you let a banking mafia take over your country then you're doomed" is likely to be correct whichever God is involved.



Thu, 07/31/2014 - 12:11 | 5027634 eclectic syncretist
eclectic syncretist's picture

The market is currently like an ocean with nothing left but some big sharks and a few rapidly disappearing little fish that are not even enough to sustain the sharks, which are now circling each other waiting for someone to attack first and hoping not to starve while waiting.  When they begin to become scared they will try to eat each other and many will get consumed in the process.

Thu, 07/31/2014 - 12:42 | 5027761 Idaho potato head
Idaho potato head's picture

Blood in the water=feeding frenzy.

Thu, 07/31/2014 - 11:58 | 5027560 LawsofPhysics
LawsofPhysics's picture

What are your thoughts on JPM bailing out those bond holders in Argentina?  As I see it, there are plenty of commodities in South America.  The South Americans, despite their ghettos, know this.  So do they Asians, who have already been tradiing with them in Yuan.   There are political realities in these countries that are changing, and quickly.  especially now that the distraction of the World Cup is over.

Thu, 07/31/2014 - 12:55 | 5027831 walküre
walküre's picture

The old JP Morgan wouldn't have waited this long to see someone else interfere with the trade.

It's too late. Nobody in Argentina wants to continue the deals with Wall Street. The alternative has emerged.

If Brazil can be a BRICS member, why not Argentina?

Lastly, what is Singer going to do really? Trying to seize more assets? Is he going to bring his own guns to fight the gauchos on their turf?

Thu, 07/31/2014 - 12:55 | 5027837 LawsofPhysics
LawsofPhysics's picture

My thoughts exactly.

Thu, 07/31/2014 - 12:28 | 5027709 TheInfoman
TheInfoman's picture

"There are at least $60 trillion sloshing around.

World GDP is $80 trillion annually.

There is no reason for world to keep using USD is 3/4 of its output is claimed instantly.


Please explain this further...

Thu, 07/31/2014 - 12:48 | 5027793 ekm1
ekm1's picture

USD reserves in circulation in trillions:


$19 pensions

$11 deposits

$7 held by the world

$4 created by fed via qe

$20 at minimum unaccounted for in offshore accounts in 80 locations around the world

That's a minimum of $60 trillion which only us government or federal reserve can extinguish


Too too too too much

Fed must call margin on the system to extinguish at least $20 trillion otherwise world continues to drop USD for real trade

Thu, 07/31/2014 - 11:48 | 5027508 NoDebt
NoDebt's picture

Does this man, Putin, ever sleep?  He's like fucking everywhere all at once.  Where's Obama?  (Golf course.)

Thu, 07/31/2014 - 11:51 | 5027522 cowdiddly
cowdiddly's picture

He is busy writing up an executive order to have all the women's tees on  all the golf courses moved up 30 yards nationwide.

Thu, 07/31/2014 - 11:55 | 5027540 yogibear
yogibear's picture

Barry is a libtard groomed community organizer with a corrupt Chicago political background.

There are doers and talkers.  It's easy to figure out which one is which.

Thu, 07/31/2014 - 11:58 | 5027562 Winston Churchill
Winston Churchill's picture

He is racking up those frequent flyer miles, and comes back with the goodies,unlike Hitlary did.

He just got back from his S American tour yesterday.

I would love to have been a fly on the wall there.

The unofficial count on leaning torward the BRICS, and against the USD is nearly in three

figures. Hell of a chorus line, when the fat lady sings.

Saudi and Germany remain key.

Tick tock.

Thu, 07/31/2014 - 11:59 | 5027575 F0ster
F0ster's picture

Putin = Winning :D!

Thu, 07/31/2014 - 12:08 | 5027623 Confused
Confused's picture

Or he has simply read 'The Grand Chessboard.' While clearly the current WH administration has not. Its all playing out in front of everyones eyes.


Thu, 07/31/2014 - 11:49 | 5027509 Al Huxley
Al Huxley's picture

I wouldn't read too much into all these bilateral currency swap arrangements that bypass the USD, I mean, look how strong the dollar is in recent trading!  And besides, what else is everybody gonna use?  How could one piece of arbitrary paper or its digital equivalent EVER be removed from its role in international commerce and trade? 

Thu, 07/31/2014 - 11:54 | 5027534 Dr. Richard Head
Dr. Richard Head's picture

I don't know.  The dollar was in the 130's back in 2000 and now in the low 80's.  Peter Schiff claimed that the recent resurgance in the DOHlar has been other central banks buying dollars in large sum to keep it pegged up for a bit.  Just buying some time I guess...

Thu, 07/31/2014 - 11:55 | 5027549 fonzannoon
fonzannoon's picture

these guys have been "beginning negotiations" for as long as I can remember.

Thu, 07/31/2014 - 12:08 | 5027615 Winston Churchill
Winston Churchill's picture

Not so easy Fonz. They might all be anti dollar , but the rest of their Agenda's differ


The old saw about a camel being a horse, designed by committee, might apply yet.

Thu, 07/31/2014 - 12:12 | 5027637 kliguy38
kliguy38's picture

they may differ but they have one thing in common, they're sick of being beaten shitless by the US hegemony horseshit

Thu, 07/31/2014 - 12:21 | 5027674 Winston Churchill
Winston Churchill's picture

Indeed. They all know the depths of the NSA surveillance as well .That must also

compilicate negotiations considerably. Doing everything face to face , not by email,

and phone .Spreading disinformation is also a vital tactic in the great game.

Thu, 07/31/2014 - 12:21 | 5027676 Uncle Remus
Uncle Remus's picture

And it is a long f'ing line they are standing in.

Thu, 07/31/2014 - 13:23 | 5027979 angel_of_joy
angel_of_joy's picture

They might all be anti dollar , but the rest of their Agenda's differ widely.

You don't need to love your trade partner to do business with him. Westerners are such drama queens...

Thu, 07/31/2014 - 11:56 | 5027544 NoDebt
NoDebt's picture

Yeah, but if you're not using he dollar you don't get the full 12 inches of our faith and credit slammed up your ass.

I pre-apologize for that comment.  That was unnecessarily harsh.

Thu, 07/31/2014 - 12:03 | 5027599 Al Huxley
Al Huxley's picture

On the plus side, there's no faster way to bring 'freedom and democracy' to your country than to stop using the $.

Thu, 07/31/2014 - 12:27 | 5027700 emersonreturn
emersonreturn's picture

al huxley



Thu, 07/31/2014 - 13:09 | 5027905 dearth vader
dearth vader's picture

Exactly, that's why Putin is abolishing the $. Freedom and democracy are now bound to engulf the BRICS, as if by magic. EU and US (citizens) debt slaves will watch in awe when this process starts unfolding.

Thu, 07/31/2014 - 14:29 | 5028350 tumblemore
tumblemore's picture

"here's no faster way to bring 'freedom and democracy' to your country than to stop using the $"


What's particularly good about that comment is it's true both ways.



Thu, 07/31/2014 - 12:14 | 5027643 slightlyskeptical
slightlyskeptical's picture

I downvoted you because of the apology.

Thu, 07/31/2014 - 14:14 | 5028262 RafterManFMJ
RafterManFMJ's picture

This is FIGHT CLUB!!

Thu, 07/31/2014 - 11:57 | 5027559 astroloungers
astroloungers's picture

" And besides, what else is everybody gonna use? "            IOUs written on cocktail napkins?

Thu, 07/31/2014 - 12:01 | 5027588 F0ster
F0ster's picture

The dollar will be less usful and less valuable than the currencies of countries or continents suffering deflation.  

Thu, 07/31/2014 - 12:31 | 5027715 ekm1
ekm1's picture

Highly leveraged fx gambling is not real trade

Thu, 07/31/2014 - 11:48 | 5027514 JulienFR
JulienFR's picture

The same day as Kerry visit India ? lol

Thu, 07/31/2014 - 12:54 | 5027818 813kml
813kml's picture

Kerry was ordered to corral the situation, but didn't stay furlong.  

He attempted to curry favor, but in the end got naan.

Thu, 07/31/2014 - 12:59 | 5027865 walküre
walküre's picture

Kerry got served the Ganges water diet

Thu, 07/31/2014 - 13:33 | 5028039 IridiumRebel
IridiumRebel's picture

Vindaloo my darling, we be galop jaumin.

Thu, 07/31/2014 - 11:49 | 5027516 Urban Redneck
Urban Redneck's picture

Being able to settle and clear (i.e. export) in their own currency should relive some of the pressure created by gold imports, and complicate the efforts of those who seek to shake more gold loose from the banyan tree by attacking the USD cross.

Thu, 07/31/2014 - 11:53 | 5027530 yogibear
yogibear's picture

Bernanke, Yellen, Rosengren, Evans, Dudley and Williams you did a fine job of getting the momentum together to kill the US dollar.

These people are the real terrorist.

Thu, 07/31/2014 - 11:55 | 5027546 NoWayJose
NoWayJose's picture

Just waiting for Putin to sign up with Africa, South America, Antarctica, Canada (arctic deals), and Mexico.

Thu, 07/31/2014 - 12:16 | 5027657 lakecity55
lakecity55's picture

"Russia to Arm New Texas Republic with S-300"
               "China to Offer Gold for Texas T"

Thu, 07/31/2014 - 11:57 | 5027547 DJ Happy Ending
DJ Happy Ending's picture

Thu, 07/31/2014 - 11:56 | 5027551 q99x2
q99x2's picture

I say everybody should join Russia and fuck Washington D.C. The world is too civilized for those criminals.

Thu, 07/31/2014 - 12:01 | 5027587 Bossman1967
Bossman1967's picture

How about fuck them all and restore our country.

Thu, 07/31/2014 - 11:57 | 5027553 Goldbugger
Goldbugger's picture

The Rothschild run Zionist Central bankers days are numbered and the Federal Reserve System’s  hold on the World is now facing a sudden catastrophic end. This will mean WAR, prepare yourselves accordingly.

Thu, 07/31/2014 - 13:11 | 5027924 Duffy
Duffy's picture

and yet no one thinks to round them up....

Thu, 07/31/2014 - 11:57 | 5027554 emersonreturn
emersonreturn's picture

isn't india's CB  rothchild's subsiduary?

Thu, 07/31/2014 - 12:03 | 5027600 F0ster
F0ster's picture

yeah probably, I wouldn't be surprised at all if the Rothschilds are well positioned on the BRICs side and just ahead of the Dollar collapse curve.

Thu, 07/31/2014 - 12:22 | 5027683 Monty Burns
Monty Burns's picture

Throughout history they've shown an uncanny ability to discern when their host is about to drop. And then to identify and leap onto a new host.

Thu, 07/31/2014 - 13:18 | 5027956 Dublinmick
Dublinmick's picture

This time they have pissed off Russia and China however. They know the Rothschilds are behind most of the bs including the Ukraine war.

Thu, 07/31/2014 - 14:04 | 5028218 Bossman1967
Bossman1967's picture

We are here

Thu, 07/31/2014 - 14:36 | 5028388 tumblemore
tumblemore's picture

I'm sure the plan was to leech the last drop of value from the dollar and then switch hosts but I wonder if things move too fast nowadays. I hope so anyway.




Thu, 07/31/2014 - 11:58 | 5027563 Atomizer
Atomizer's picture

Central Planning Puke Scene

Thu, 07/31/2014 - 11:58 | 5027567 smacker
smacker's picture

" that China has sided firmly with Russia"

I'm looking forward to eating some stir-fried borsch-chop-suey.

Thu, 07/31/2014 - 11:59 | 5027570 Canucklehead
Canucklehead's picture

panem et circenses

Thu, 07/31/2014 - 11:58 | 5027571 Quaderratic Probing
Quaderratic Probing's picture

So India will print Rupi and Russia will give them oil for the paper.

India wins.

Thu, 07/31/2014 - 12:14 | 5027644 lakecity55
lakecity55's picture

Rupees, in Lakh and Crore

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