Russia, China Announce A "New Global Reserve Currency"

[Wiz]

And once again, as happens often with consequential news in the United States and the West, no one has noticed and no one seems to care!

Quoth the Raven 
8 hr ago
 

If you’ve blinked over the last month, you may have missed it…                      Enjoy the view on the right before they gone away together with the  USA Dollar!

China and Russia are taking their shot at the U.S. dollar. And as often happens with consequential news in the United States and the West, no one seems to notice or even care.

Since the beginning of the year, I have been writing about the possibility of Russia and China challenging the US dollar’s global reserve status. Now, it’s happening.

It shouldn’t be any surprise to those paying attention that Russia and China are strengthening their economic ties amidst continued Western sanctions on Russia as a result of the country’s war in Ukraine.

What may surprise some people, however, is that Russia and the BRICS countries, including Brazil, Russia, India, China, and South Africa, are officially working on their own “new global reserve currency,” RT reported in late June. Nobody even seemed to notice.

“The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,” Vladimir Putin said at the BRICS business forum last month.

And of course, as Russia has been cut off from the SWIFT system, it is also pairing with China and the BRIC nations to develop “reliable alternative mechanisms for international payments” in order to “cut reliance on the Western financial system.”

In the meantime, Russia is also taking other steps to strengthen the alliance between BRIC nations, including re-routing trade to China and India, according to CNN:

President Vladimir Putin said Wednesday that Russia is rerouting trade to "reliable international partners" such as Brazil, India, China and South Africa as the West attempts to sever economic ties.

"We are actively engaged in reorienting our trade flows and foreign economic contacts towards reliable international partners, primarily the BRICS countries," Putin said in his opening video address to the participants of the virtual BRICS Summit.

In fact, “trade between Russia and the BRICS countries increased by 38% and reached $45 billion in the first three months of the year” this year, the report says. Meanwhile, Russian crude sales to China have hit record numbers during Spring of this year, edging out Saudi Arabia as China’s primary oil supplier.

"Together with BRICS partners, we are developing reliable alternative mechanisms for international settlements," Putin said.



Putin continued, stating last month: "Contacts between Russian business circles and the business community of the BRICS countries have intensified. For example, negotiations are underway to open Indian chain stores in Russia [and to] increase the share of Chinese cars, equipment and hardware on our market."

In June, Putin also accused the West of ignoring"the basic principles of [the] market economy" such as free trade. "It undermines business interests on a global scale, negatively affecting the wellbeing of people, in effect, of all countries," he said.

President Xi echoed Putin’s sentiments, according to a June writeup by Bloomberg:

“Politicizing, instrumentalizing and weaponizing the world economy using a dominant position in the global financial system to wantonly impose sanctions would only hurt others as well as hurting oneself, leaving people around the world suffering. Those who obsess with a position of strength, expand their military alliance, and seek their own security at the expense of others will only fall into a security conundrum.”

The developments obviously further my long held belief that a gold backed global reserve currency is on its way - something I have been writing about for months.

I’m also stunned that nobody seems to care that arguably the largest shift on the global macroeconomic playing field over the last half century may be taking place.

Sure, under the context of the conflict in Ukraine, the news may seem “par for the course” of sorts, which may result in the media and the financial world downplaying it. But put this piece of information out there on its own, without context - that there is a coordinated global challenge taking place to the U.S. dollar - and it would be the biggest news story in decades. Imagine if China and Russia just dropped this out of nowhere? Now, remember that both countries have been working on, and preparing for, this situation for years.

Read the full article here: https://quoththeraven.substack.com/p/russia-and-china-officially-announce?utm_source=email[/b]]https://quoththeraven.substack.com/p/russia-and-china-officially-announce?utm_source=email

[Manny]

The split between Russia and the west is permanent.

The long-predicted dedollarisation is now moving at speed.

Russia has had years to prepare for this and the so-called sanctions.

[andrewfi]

Yes, I wrote about this a few months ago when it first popped up. Of course, at the time nobody significant in the West mentioned what was going on.

My take, this stuff has been on the slipway ready for launch. I also think that it was not planned for implementation right now; likely expected a few years from now, but ready and waiting for when it was needed.

This stuff does not happen by accident. Agreements in public do not happen this fast. So agreements were already in place, awaiting the timing. If I am right about this aspect then what is being talked about as preparatory work is actually almost ready for launch.

[Jonas!]

The split between Russia and the west is permanent.
 

It seems to now be the case.   I'm assuming the West wanted this, if that is the case the question I have to ask is Why?

Jonas!   

[Wiz]

The split between Russia and the west is permanent.
 

It seems to now be the case.   I'm assuming the West wanted this, if that is the case the question I have to ask is Why?

Jonas!

If by using the word "West" you mean the USA then the answer is simple.

USA after the end of WWII realised that the British Empire has lost almost all of its economic power and was becoming poor, so it started building its own bases around the Globe, in a huge effort investing lots of Dollars to make sure that USA becomes the new world Empire and the only Hegemon for the whole world......and they succeeded almost to replace, in most parts of the world the ex British Empire.

Now finnally they realised they do not have the ability to control everry country on the world......and other big Nations the BRICS...... want part of the Pie.

The Dimensia president of the US, is trying hard to keep up with the plan....."The plan for the new century...." but everything go wrong for him....while his son... is collecting.... presents.


Soon we will know well how a  multi polar world is fanctioning and how it operates under the multi colours of the BRICS

 

[Texan77]

This is almost funny. Chinese banks are in so much trouble the depositors have not been able to get their money out for months in a number of cities. 80 plus cities people are having organized to stop paying their mortgages on uncompleted properties that are behind schedule and not being even worked on. Properties are in decline and building is coming to a standstill while China claims it GDP will grow by 5 per cent this year. The trouble with the Bric nations is they all want to sell things to the world but none of them buy much. There are no customers nations in the group. 

[Manny]

There are no customers nations in the group.

Apart from the 707 million middle income/class people in China. Just twice the population of the US. 

[Texan77]

There are no customers nations in the group.

Apart from the 707 million middle income/class people in China. Just twice the population of the US. 

Yea that makes 15,000 dollar a year each, a nearly worthless apartment and frozen bank account. Just try to sell products in China and see how well you do.

[Manny]

There are no customers nations in the group.

Apart from the 707 million middle income/class people in China. Just twice the population of the US. 

Yea that makes 15,000 dollar a year each, a nearly worthless apartment and frozen bank account. Just try to sell products in China and see how well you do.

I'll just leave this here.

[Bodine]

USA after the end of WWII realised that the British Empire has lost almost all of its economic power and was becoming poor, so it started building its own bases around the Globe, in a huge effort investing lots of Dollars to make sure that USA becomes the new world Empire and the only Hegemon for the whole world......and they succeeded almost to replace, in most parts of the world the ex British Empire.

Pretty colorful summation of the Atlantic Charter, Wiz. CNN would be proud. One is left to imagine how the UK rose from the ashes post-WWII had Churchill not have the vision what the world will be without its colonial masters.

[Jonas!]

The trouble with the Bric nations is they all want to sell things to the world but none of them buy much. There are no customers nations in the group.

Bric nations are generally producers for some western nations like the US.   We in the US are 'consumers'.  We buy stupid shit on Amazon and it winds up in a garbage dump a year later. 

Over time producer nations gain wealth through their harder work.  At least in theory consumer nations should lose their wealth as it gets squandered on stupidities.  In the case of the US we have borrowed trillions for decades and it has worked for us to this point.  We have also remained aggressive throughout the world, stacking the deck in our own favor, this has also worked well for us.   It seems that going forward, the playing field is leveling out, and that will bode badly for us in the US in particular.   

China produces a lot of goods for the US, they ship it over on barges the size of village, items get advertised, loaded/unloaded, shipped again, there are returns on items.  A lot of built-in costs I'm not mentioning.   Most all those costs are eliminated if the goods remained in China, where their own people could enjoy the use of them.  An item here in the states might cost $500, if it were to be consumed in China it might cost $75 dollars, and still be profitable.      China could consume a lot of their own goods.  In some ways it would be good for China, but it depends on if the item is as useful as a Jackhammer or as silly as a massage chair. 

I'm hesitant to criticize China based on the fact that to this point they haven't been almighty consumers.   Being a consumer in the long run is less positive than being a producer.  Of course, once again this is merely my opinion.

Jonas! 

[Jonas!]

The split between Russia and the west is permanent.
 

It seems to now be the case.   I'm assuming the West wanted this, if that is the case the question I have to ask is Why?

Jonas!

If by using the word "West" you mean the USA then the answer is simple.

USA after the end of WWII realised that the British Empire has lost almost all of its economic power and was becoming poor, so it started building its own bases around the Globe, in a huge effort investing lots of Dollars to make sure that USA becomes the new world Empire and the only Hegemon for the whole world......and they succeeded almost to replace, in most parts of the world the ex British Empire.

Now finnally they realised they do not have the ability to control everry country on the world......and other big Nations the BRICS...... want part of the Pie.

The Dimensia president of the US, is trying hard to keep up with the plan....."The plan for the new century...." but everything go wrong for him....while his son... is collecting.... presents.


Soon we will know well how a  multi polar world is fanctioning and how it operates under the multi colours of the BRICS

 

Thanks Wiz.   Regarding your final comment, I think the US is very concerned about this 'multi-polar' world.  I don't know that it can be avoided now.  We have forced Russia out of Swift, and other western based systems.  Countries are trading in all sorts of different currencies and using alternatives to western systems.  Now that these systems are also in place, I don't think they will be unwound.   Russia is now insuring their own oil liners...no more Lloyds of London.     We have blown off all our own toes over Ukraine, when we damn well knew this was a sore spot for Russia.     I always wonder what other factors are involved that I (As merely a member of the general public) don't know about. 

Jonas! 

[Texan77]

The trouble with the Bric nations is they all want to sell things to the world but none of them buy much. There are no customers nations in the group.

Bric nations are generally producers for some western nations like the US.   We in the US are 'consumers'.  We buy stupid shit on Amazon and it winds up in a garbage dump a year later. 

Over time producer nations gain wealth through their harder work.  At least in theory consumer nations should lose their wealth as it gets squandered on stupidities.  In the case of the US we have borrowed trillions for decades and it has worked for us to this point.  We have also remained aggressive throughout the world, stacking the deck in our own favor, this has also worked well for us.   It seems that going forward, the playing field is leveling out, and that will bode badly for us in the US in particular.   

China produces a lot of goods for the US, they ship it over on barges the size of village, items get advertised, loaded/unloaded, shipped again, there are returns on items.  A lot of built-in costs I'm not mentioning.   Most all those costs are eliminated if the goods remained in China, where their own people could enjoy the use of them.  An item here in the states might cost $500, if it were to be consumed in China it might cost $75 dollars, and still be profitable.      China could consume a lot of their own goods.  In some ways it would be good for China, but it depends on if the item is as useful as a Jackhammer or as silly as a massage chair. 

I'm hesitant to criticize China based on the fact that to this point they haven't been almighty consumers.   Being a consumer in the long run is less positive than being a producer.  Of course, once again this is merely my opinion.

Jonas!

The trouble with a BRICS nations getting together as a group is they are all competitor nations competing for the same markets.

China's labor has going up over ten times in recent years. They are no longer the low-cost producer. Things are still made in China because of the high cost of moving the factories and building the infrastructure to handle the shiping in a new country.  China's market share of worlds export has maxed out and for any of the other nations to succeed they have to take market share away from China.  China is not going to like this.

China, Russia and India want to be a world power militarily and so they are going to be competitors in that area also. The BRICS are shaping up to about as much of an alliance as the USA has with Russia in eastern Europe. Understand the world is changing and going forward the USA and Europe will buy less from China. The multipolar world will make for larger wars and huge disruption in supply changes like the one we are seeing Ukraine.  This will also require countries to produce more at home as shipping will become less reliable and more expensive. Whether you live in Russia, China, Europe, Africa or the USA, everyone will have a lot less. We do not get a chance to vote. It will happen no matter what you or I want.

[WestCoast]

The trouble with the Bric nations is they all want to sell things to the world but none of them buy much. There are no customers nations in the group.

Bric nations are generally producers for some western nations like the US.   We in the US are 'consumers'.  We buy stupid shit on Amazon and it winds up in a garbage dump a year later. 

Over time producer nations gain wealth through their harder work.  At least in theory consumer nations should lose their wealth as it gets squandered on stupidities.  In the case of the US we have borrowed trillions for decades and it has worked for us to this point.  We have also remained aggressive throughout the world, stacking the deck in our own favor, this has also worked well for us.   It seems that going forward, the playing field is leveling out, and that will bode badly for us in the US in particular.   

China produces a lot of goods for the US, they ship it over on barges the size of village, items get advertised, loaded/unloaded, shipped again, there are returns on items.  A lot of built-in costs I'm not mentioning.   Most all those costs are eliminated if the goods remained in China, where their own people could enjoy the use of them.  An item here in the states might cost $500, if it were to be consumed in China it might cost $75 dollars, and still be profitable.      China could consume a lot of their own goods.  In some ways it would be good for China, but it depends on if the item is as useful as a Jackhammer or as silly as a massage chair. 

I'm hesitant to criticize China based on the fact that to this point they haven't been almighty consumers.   Being a consumer in the long run is less positive than being a producer.  Of course, once again this is merely my opinion.

Jonas!

Jonas if instead of selling an item for $500 in the US, China kept the item in China and sold it for $75 that would mean China's GDP would be much smaller. Essentially China would be producing for mostly a domestic market. Done over the course of years instead of being the #1 or #2 global economy China might not even be in the top 10 or worse top 20 global economies.

Their global influence would be much, much smaller. Their military would be much, much smaller. They'd be  on par with countries such as the Philippines. Countries such as India, Japan and South Korea would be dominating them.

The US would not only be the sole global super power the US wouldn't have any near peer equals in the military or economy. Maybe the US economy would be even stronger with more manufacturing staying in the US? Just imagine how much more powerful the US would be?

[Jonas!]

The US would not only be the sole global super power the US wouldn't have any near peer equals in the military or economy. Maybe the US economy would be even stronger with more manufacturing staying in the US? Just imagine how much more powerful the US would be?

My belief is the US reached it's pinnacle of power and has been descending now for a while.  I doubt we will ever have the type of power/influence we once had.

 

Jonas if instead of selling an item for $500 in the US, China kept the item in China and sold it for $75 that would mean China's GDP would be much smaller. Essentially China would be producing for mostly a domestic market. Done over the course of years instead of being the #1 or #2 global economy China might not even be in the top 10 or worse top 20 global economies.

Their global influence would be much, much smaller. Their military would be much, much smaller. They'd be on par with countries such as the Philippines. Countries such as India, Japan and South Korea would be dominating them.

I think your imagination ran wild with this.  Currently China is a massive exporter. They are diversifying their exports and who they are exporting to.  All the while they continue procuring resources for production.     What I mentioned earlier regarding China was a major exporter of goods that if they consumed some locally, they would be sold for a lot less.   Their native population would be able to afford the items. 

Jonas!       

[Jonas!]

China's labor has going up over ten times in recent years. They are no longer the low-cost producer. Things are still made in China because of the high cost of moving the factories and building the infrastructure to handle the shiping in a new country.  China's market share of worlds export has maxed out and for any of the other nations to succeed they have to take market share away from China.  China is not going to like this.

I don't agree with the 'maxing out of exports'.  There are a lot of countries where the populace is without hardly any exports.  China will always have competition for their exports with other nations trying to export goods.  That is normal.   The world's population continues to grow, and the belt and road continues to slowly progress.   There will be opportunities.   Despite China being such a workhorse, certain western nations are angry that China is gaining so much more influence as their wealth grows rapidly.   Soon those western nations will try to thwart China using whatever means they can get away with. 

Jonas! 

[Lon]

vid from Peter Zeihan   about 15 minutes explaining the coming deglobalization and how it will effect China and the rest of the world.  which countries (north American) will come out okay and the some that will not (China for one)

how are people going to be liking the NWO now?

[andrewfi]

Yeah, Jonas, what many folks don't get is that China is moving up the value chain because that maximises wealth. The idea that any market producer can 'max out' their sales opportunities is just dumb.

Let the Cambodians and Indonesians make plastic buckets costing a dollar or two while China makes the computers and smartphones that you pay hundreds or thousands of dollars for.

Lon, I think you might want to do some proper learning to counteract the misinformation you've been feeding yourself.

The anticompetitive moves to which you refer are already in place - see the sanctions places upon China by the United States and others of what we increasingly often refer to as the collective West.

The effect of those sanctions is, in the end, to isolate those states placing those sanctions. You pay extra for your phones and laptops which decreases your wealth without replacing them with local manufactures. In turn this lack of indigenous manufacture leads to more imports of more costly goods which further decreases your wealth.

It ain't rocket science, but very few of the collective West's decision makers are qualified to sweep floors in the rocket scientist's lab.

[Jonas!]

Yeah, Jonas, what many folks don't get is that China is moving up the value chain because that maximises wealth. The idea that any market producer can 'max out' their sales opportunities is just dumb.

Let the Cambodians and Indonesians make plastic buckets costing a dollar or two while China makes the computers and smartphones that you pay hundreds or thousands of dollars for.

In addition, the Cambodians & Indonesians may well be making those plastic buckets for a Chinese company that supplied the working facilities.     Now that China is flush, they have had the foresight to invest in infrastructure at home and abroad to continue to be a force.  Recent decades in the USA we have invested more in war, and war materials. 

Jonas!   

[andrewfi]

That's absolutely the case. So, the USAians sanction China. USAian businesses need cheap plastic buckets for their vast army of impoverished consumers. They seek out the cheapest plastic buckets not made in China and end up buying them from a subsidiary of a Chinese business and pay more than they needed to had there been no sanctions.

Oh and for the unthinkers who are confused by my use of the word 'sanctions', I commend you to read a dictionary.

[Manny]

The US would not only be the sole global super power the US wouldn't have any near peer equals in the military or economy. Maybe the US economy would be even stronger with more manufacturing staying in the US? Just imagine how much more powerful the US would be?

My belief is the US reached its pinnacle of power and has been descending now for a while.  I doubt we will ever have the type of power/influence we once had.

Ask any Russian bird if she is familiar with the phrase "sunset on America". They were talking about it 15-20 years ago. Now it's happening.

Sanctions on Russia are meaningless, and here's why:

[WestCoast]

The US would not only be the sole global super power the US wouldn't have any near peer equals in the military or economy. Maybe the US economy would be even stronger with more manufacturing staying in the US? Just imagine how much more powerful the US would be?

My belief is the US reached its pinnacle of power and has been descending now for a while.  I doubt we will ever have the type of power/influence we once had.

Ask any Russian bird if she is familiar with the phrase "sunset on America". They were talking about it 15-20 years ago. Now it's happening.

Sanctions on Russia are meaningless, and here's why:

(Attachment Link)

Manny you've been talking about the decline of the US as long as I've been on RUA. You haven't moved to Russia and would never leave your UK bar stool for one in Russia. Few in the UK would. Same for the US. I wonder why?

Those Russian birds are still trying to get out of Russia and move to the west. American women moving to Russia? Not so many.

[Lon]

Lon, I think you might want to do some proper learning to counteract the misinformation you've been feeding yourself.

The anticompetitive moves to which you refer are already in place - see the sanctions places upon China by the United States and others of what we increasingly often refer to as the collective West.

the vid I linked was not talking about any sanctions placed on China by either the west or the U.S.  you did not watch it before writing your nonsense, something that you are all ways saying others should do.

in this vid Peter Zeihan is discussing the oil routes, consumption and production of the various countries around the world.  of course it is one man's opinion (not the oracle andrewfi's, of course), but Zeihan's facts should be verifiable, or not.

does kind of put the kibosh on the whole new Russia/China currency thing, if Zeihan is correct in his assessment

[Manny]

American women moving to Russia? Not so many.

Why on earth would American women want to move to Russia? Most of them are twice the size of the average Russian bint, and there's no McDonalds anymore.

[Jonas!]

The US would not only be the sole global super power the US wouldn't have any near peer equals in the military or economy. Maybe the US economy would be even stronger with more manufacturing staying in the US? Just imagine how much more powerful the US would be?

My belief is the US reached its pinnacle of power and has been descending now for a while.  I doubt we will ever have the type of power/influence we once had.

Ask any Russian bird if she is familiar with the phrase "sunset on America". They were talking about it 15-20 years ago. Now it's happening.

Sanctions on Russia are meaningless, and here's why:

(Attachment Link)

Not much of the community is considered 'international'.   Lately Mexico (Not part of the 'international' community) is making more and more noises that not exactly pro American...and they seem to be gaining quite a bit more wealth/importance, despite bad drug related violence. 

Jonas!