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Russia and China Drive Nails Into Dollar’s Coffin

24.05.2014
Russia’s second-largest financial institution, bank VTB, signed an agreement with the Bank of China on May 20 agreeing to bypass the U.S. dollar and instead pay each other in their domestic currencies. Chinese President Xi Jinping and Russian President Vladimir Putin, who remarked that this was a “new historic landmark” in the $100 billion of annual trade between the two Asian powerhouse countries. The agreement comes amidst separate reports saying Russia is dumping record amounts of U.S. treasury holdings. Between October 2013 and March of this year, Moscow’s holdings of United States treasuries fell by almost $50 billion—almost a third. Over half of that happened in March after Western nations imposed sanctions on Russia. Then, on May 22, China announced it has halted dollar transactions with most Afghan commercial banks. The expansionist governments in Moscow and Beijing aim to help each other while simultaneously inflicting harm upon their common enemy, the United States. Russia and China are also rapidly waking up to the fact that U.S. debt is around $17.5 trillion and leaders in Washington have not been able to effectively stem its growth. Since the U.S. has not been able to get its financial house in order, the rush of nations to abandon the greenback will gain momentum rapidly in the months and years ahead. The age of the dollar is coming to an end—and the greenback’s collapse is a precursor to the downfall of the United States.
Comment: How will MMM be affected by the probable collapse of the dollar after more countries will refuse to use it as the world's reserve currency? The dollar system forms the basic financial pyramid, other currencies – little pyramids on this pyramid. In the medium term perspective the dollar may still strengthen against them and possibly be the last one to collapse. If the dollar collapses - all collapses, but MMM. America's desire to get rid of a huge public debt could trigger a global hyperinflation, escape from which is possible only through the MMM mechanism.
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