Putin: The Whole World Sees The "Dangerous Dollar Monopoly"

Addressing the Russian Parliament following his inauguration, Vladimir Putin observed the necessity of increasing Russia’s economic sovereignty and independence from the petrodollar system, stressing that the West is boosting this process through its economic bullying in the form of sanctions.

TASS reports:

We used to behave naïvely, but now we see that the WTO [the World Trade organization] rules are all too often broken, the restrictions are imposed for political reasons, which they call sanctions. "

"Plus more and more of them are imposed to secure its favorite competitive advantages,” Putin said.

“We need to increase the level of our economic sovereignty but this is not a straightforward decision,” the head of state said.

“Oil is traded in dollars on the exchange,” Putin said.

Certainly, we are thinking about what we need to do in order to get free of this burden. Furthermore, our partners are helping us by introducing all these unlawful restrictions and violating principles of the global trade, because the whole world sees the dollar monopoly is unreliable; it is dangerous for many, not only for us,” he added.

As The Duran's Frank Sellers notes, generally speaking, any country that wants to buy oil needs to buy dollars first, with which to accomplish the commodity purchase, which is a major aspect of the dollar’s global hegemony in international trade.

The US, in attempting to maintain this, has been resorting to international bullying in its sanctions and financial practices, which, continuing down this path, is only ensuring America’s eventual irrelevance on the global economical stage.

We have seen how this is happening around the world, with China’s introduction of the Petroyuan, Venezuela’s petro, and with bilateral trade deals and banks being erected so as to side step both the dollar and American economic sanctions. Putin cites Russia’s gold and foreign currency reserves, and his intention to do something about Russia’s dependence on the American dollar backed oil system.

“This is not merely a separation from the dollar; this refers to the need of strengthening our economic sovereignty,” Putin said.

Our gold and foreign currency reserves undergo diversification and we will continue to do it,” he added.

As Sputnik News reports,  Putin's latest announcement came less than two months after China launched yuan-denominated oil futures on the Shanghai International Energy Exchange, thus challenging the dominance of the Brent and West Texas Intermediate (WTI) benchmarks. Incidentally, in 2017 China emerged as the largest oil buyer, surpassing the United States. According to the US Energy Information Administration (EIA), in 2017 China imported 8.4 million barrels of crude per day, half a million more than the US.

Russia is ready to support the Chinese contracts, as Sputnik contributor Igor Naumov wrote, citing a source close to the top management of the Saint-Petersburg  Stock Exchange (SPBEX).

"Currently, the US dollar is used as the contract currency in the global hydrocarbon trading system, as well as for other commodities," the journalist explained. "This is what largely provides the dollar with its status as the world's leading reserve currency. [However], the yuan is seeking to dislodge the American [petrodollar] from one of the fastest growing oil markets in the world."

As we noted previously, Russia bought another 300,000 troy ounces of gold in March bringing Russia's total gold reserves to 1,891 tonnes or 60.8 million troy ounces as of the start of April, the central bank announced loudly at the weekend.

The continuing robust and steady accumulation of gold reserves continues (for the 37th straight month)...

The build-up of gold reserves by non-Western countries is something which could end up tipping the scales of the global order.

Many believe that should bad relations continue between the US and these nations then US-denominated assets currently held in forex holdings by the relevant central banks, could be dumped for alternatives. Nations may opt to diversify into the Chinese yuan (in the case of Russia) but also gold. Most likely it would just take either Russia or China to do this, before many others followed suit.

We know from recent comments by the likes of Erdogan and Putin that this is a possibility not far from their minds:

“With the dollar the world is always under exchange rate pressure. We should save states and nations from this exchange rate pressure. Gold has never been a tool of oppression throughout history.”  Turkish PM Erdogan, April 2018

Comments

TheWholeYearInn gmrpeabody Thu, 05/10/2018 - 18:56 Permalink

Instead ~ Trump would like to DOUBLE DOWN on the [joobuck] dollar monopoly...

 

Because, well, HE'S A JEW...

 

mosley & Peggy Joseph disapprove of this message... [not because of their POLITICAL sycophant magnetic needle pointing ~ but instead because of their unpaid gas & mortgage bills which are CLEARLY gonna get paid after the HOPE&CHANGE phase wears off]

In reply to by gmrpeabody

philipat Yellow_Snow Thu, 05/10/2018 - 19:38 Permalink

All Russia has to do is start the ball rolling by asking payment for all its energy exports including European gas in RUB. That would have the effect also of strengthening the RUB which would be used to continue to buy Gold to create a partially Gold-backed RUB. If China will also cooperate and tell the Saudis it wants to pay for its oil imports in CNY, a lot of progress could be made quite quickly.

In reply to by Yellow_Snow

Offthebeach philipat Thu, 05/10/2018 - 20:01 Permalink

Russia needs customers more than they need Russia.  

Anyways.  Puti demands payment in Rubels .  Where do you get them?  If you go and buy, Rubles go up in price, Russia gas becomes expensive, customers go bye bye.  Puti sad now. 

If Puti print Rub, he sell print Rub and for what?  Dollars, Euros? Euros got to buy Rub from Puti to buy Puti gas? There better be a discount.( added transaction costs ) Puti sad.   

After a while, lots of Rubles.  Rubles cheap, Russian gas cheap, customers happy, everything outside Russia now expensive to import.  Ruble value crash.  Savings worth less, inflation.  Puti sad.

Russia, Iran, China, Venezuela ( Loser's Row ) don't have Dollar, gold problems.  They have lying, cheating, run by thieving thug gangster internal economy problems.   And, there is no, zero, nyet dodge around that.

In reply to by philipat

Escrava Isaura Offthebeach Thu, 05/10/2018 - 20:45 Permalink

the whole world sees the dollar monopoly is unreliable;

What? The dollar is unreliable?

Nonsense.

Don’t take my word for it, just check the prices of importing goods to America. I’ll give you an example, but there are millions of examples: Gasoline in America is cheaper than sparkling water. US has 5% of the world population but consumes 24% of the world’s energy.

Whoever says that the dollar is unreliable just need to visit a US suburbia.

So Putin is wrong because, if a currency is a monopoly, how could it be unreliable.   

 

In reply to by Offthebeach

Offthebeach Escrava Isaura Fri, 05/11/2018 - 05:43 Permalink

 

Some ....

 

A bottled gallon of water, 0.99 cents( Wal-Mart)

Cold gallon at gas station "convience"  store, $2.

Pumped, non container gasoline, regular, $3 per.

Container gasoline with oil, the only sealed gas I know of, used for weed wackers/lawn mowers, $10 gallon

Drinking water piped/pumped to house....0.0001 cent per gallon.

Carbon gas infused bottled water, supermarket, $4 gallon.  I suppose a point of sale, gas infusing pump, seltzer machine could get price down to water.

About energy.  It's ours, we make it and use it, and in spite of lefties,  gov crony rent seekers, btu's/dollars ajusted for inflation continue, continue to decline.  Also, roughly, we are about 1/4 world economy.  Energy use=economy roughly track.  Outlier example, lovely island nation in S. Pacific.  Near zero energy consumption , near zero economy.

 

 

 

 

In reply to by Escrava Isaura

Escrava Isaura valerie24 Thu, 05/10/2018 - 20:48 Permalink

valerie24, All Russia has to do is back their currency with gold or silver. Foreign investment would flood in.

Highly recommend you that you do some real research.

Isn’t foreign investment also fiat money?

 

Putin: ”The Whole World Sees The "Dangerous Dollar Monopoly"

Now reconcile that with this:

George Bush: “The America way of life is not up for negotiations.”

 

In reply to by valerie24

Escrava Isaura Give Me Some Truth Thu, 05/10/2018 - 21:55 Permalink

Silver won’t solve Mexico or the US for that matter, internal problems because we all live a myth.

The dollar as the world reserve currency will only make Mexico’s, make that the world, internal and external problems worse. And, if they try on their own, their lives will become even more miserable.

China got out from under the dollar in 1949 and you saw how far back they felt to the point that they had to rejoin the dollar.

Industrialization and capitalism are dollar’s two brothers. It is what it is.

If you try to kill ‘undermine’ any one of these 3 brothers, you’ll either end up with a civil war in the US or, most likely, WW3.

Money printing, then war. That's the blueprint. Too late to change the blueprint.   

 

In reply to by Give Me Some Truth

opport.knocks Give Me Some Truth Thu, 05/10/2018 - 22:22 Permalink

Exactly, Gold is needed by the upper middle class for the coming transition from the $USD to the next global fiat. The same can be argued of crypto's though I am less convinced that they will play a big role.

Canada and the UK got out of the gold storage business years ago and are full on fiat. The US's gold does not back anything, they are the kings of fiat, trade defictis and budget deficits. The $USD is nearly dead but that could be a long and painful process.

In reply to by Give Me Some Truth

Offthebeach Give Me Some Truth Fri, 05/11/2018 - 05:53 Permalink

Meh..

People like paper, and now digital. 

Rulers and government .....IS PAPER, or clay tablets before paper.  Contracts, courts, law, taxes, records....all paper.  

You are free to buy, save, sell with 100% gold.  Whether you find counter parties, good luck.  They are free to ask for paper.  Unless you want the paper centric state power to force them to trade for gold,  you know for freedoms sake.

In reply to by Give Me Some Truth

jimbrown valerie24 Fri, 05/11/2018 - 19:31 Permalink

if they had silver money and the the price of silver moved to the upside people would melt the coins and sell them to buyers in the other countries, saudi arabia tried to put silver in the coinage, exact thing happened, the whole world would have to go to gold and silver money and and the price of the metals would have to be set in stone 

In reply to by valerie24

FBaggins BurningFuld Thu, 05/10/2018 - 19:46 Permalink

Canada's dollar is pegged on the US dollar which is pegged on the "bullying" tactics of the US to which Putin is referring. In order for Canada to be an independent, self-determining nation it has to break free of both its British and US shackles. Obeying these nations which have the worst record of foreign exploitation which the world has ever witnessed is not what Canada or any self-respecting nation should be a part of. So-called US or British "protection" for the last 100 years or so has been nothing but a bankster global-elite protection racket. Russia is offering the world a different alternative to the nation deconstruction of the globalists backed by the monopolistic banksters and the Western multinationals, or the option of the colonialist, regime-changing, bullying and plundering nationalists led in the West by the US and the UK, but run by the same cabal of Western banksters and multinationals. The Russian alternative appears to be one based on adherence to international conventions, the rule of law, and co-operation and support between nations respecting each other's sovereignty and right to self-determination.  No doubt, to allow such a system to work it would have to be based on a unity of nations without a history of habitual bullying and plundering, and this would most certainly entail leaving the US, the UK, Israel and a number of pushy European nations completely out of the picture.

It is difficult to see any such reform every occurring in the US. However, if enough reform-minded Americans realizing their powerlessness to change their own system, were to migrate to Canada there would be a very good chance of regime change and appropriate reform in this nation. Our national sovereignty agents would give you drivers licences and voting cards in very short order.      

In reply to by BurningFuld

MK ULTRA Alpha BurningFuld Thu, 05/10/2018 - 19:49 Permalink

The article didn't cite a total global oil trade amount. The oil market isn't the most significant trade amount and market in US dollars for the global economy.

The reason Putin uses the dollar all the time as the scapegoat is because Russia is a major hydrocarbon producer. The Russians can recycle profits from the hydrocarbon trade by buying gold and mix of hard currencies. This is what everyone does, this is nothing new. The US dollar is used as a global trading currency, not specifically for the global hydrocarbon market.

The sanctions weren't because of the dollar, it was for the Crimea. It's interesting the Europeans were deciders on the sanctions but Russia hydrocarbons are sold to Europe. The Russians wanted to stop using Ukraine pipelines because the Ukraine owed a great amount of money for natural gas of which the US paid the bill during Obama era. The US spent billions trying to move the Ukraine into the geosphere of the West.(The Russians didn't get paid the money owed to them for natural gas, thus, it's only fair that the Russians take Crimea since nearly 100% are Russian people. The amount owed for natural gas is in the billions, so Russia finds other ways to pipe natural gas to Europe. Remember the Khazar Jews in the State Department spending over $4 billion to steal the Ukraine, Nuland and the Kagans. Both Khazar Gypsies posing as Jews. ) A better deal could have been negotiated with the Russians of a trade of thirty years of natural gas for Crimea, but since the new government installed by the Khazars in the US state department, wanted to genocide all Russians, this is what the US and European Khazar Jews have done and it's full speed ahead with a war with Russia. It's sick.)

Again, the petrodollar myth is the petrodollar is the main driver. It doesn't even drive the value of currency, global trade does and global trade is much greater than the global oil trade.

And an added reality, speaking here of reality, not politics, the US hydrocarbon production growth must be paid for in dollars. What happens when the amount of oil imported from the Middle East is reduced to zero? (This is a trend to watch as well as the new trend of the super dollar.)

Already Middle East nations have diversified payment for oil. And the wars in Libya, Iraq etc. are not for the petrodollar myth. The wars are resource wars to move Middle Eastern nations away from China. (Libya had Chinese oil companies investing)

The resource wars for oil was planned at Bilderberg Group meetings supported by the NYC Council on Foreign Relations. The American people are just beast of burden for the UK and European royals and their Jewish Bankers.

The dollar will be used for a one world currency conversion process which is working it's way through time. The dollar will be replaced when the Atlantic and Pacific partnerships are in place. Both partnerships are dollar trading cartels until conversion to the new one world currency.

Russia and China will be economic blocks outside the cartels. The Atlantic and Pacific partnerships are a giant sized commonwealth and is of UK origin. It was the UK who directed the US into wars for oil. This was decided at Bilderberg Group meeting in which DOD Gates and Clinton went in violation of the Logan Act. This meeting was attended by the largest shareholder of BP and the largest shareholder of Royal Dutch Shell.

It had nothing to do with the petrodollar myth.

(Just wait for the resource wars for water.)

 

In reply to by BurningFuld

Expendable Container TheWholeYearInn Thu, 05/10/2018 - 19:21 Permalink

General Wesley-Clark's words:

"WE'RE GOING TO TAKE OUT SEVERAL COUNTRIES IN 5 YEARS,

STARTING WITH IRAQ, AND THEN SYRIA, LEBANON, LIBYA, SOMALIA,

SUDAN, AND, FINISHING OFF, IRAN!"

The US wars against mideast were planned long before 9/!!

(Wesley Clark - Supreme Allied Commander of NATO, retired 4-star army General)

see HERE

6 million Iranian people, fathers, mothers, children, babies, grandparents - are in mortal danger from evil United Zionist States of America - stop their planned holocaust!

In reply to by TheWholeYearInn

various1 Expendable Container Fri, 05/11/2018 - 03:03 Permalink

So what?

And second story on this site is about "US looting Germany was the real reason for ww2".

Omfg! And this is drivel is upvoted 18-0.... !!! My faith in peasants is completely shattered. Half truth half learned dimwits have a looooooong way to go! I do not think that idiocity of peasants can ever be cured. Yes we may take America back, maybe, but what to do about such idiot peasants after?

It would be unsustainable!!!

What a dilemma to all reasonable pro-Americans!!!!!

But I say, let's get on with a plan and hope that peasants will be normalized one day.

In reply to by Expendable Container