Old Project Avalon Forum (ARCHIVE) - View Single Post - PM Putin suggest Russia & China ditch dollars in bilateral trade deals:

Knightbk · 10-30-2008, 03:51 AM

They can't, at least not yet, the reason is that they have too much wealth tied up in Dollars and dumping dollars would essentially cause all their wealth to disappear due to devaluation AND it would also kill China's economy.

Russia doesn't care much because their economy is built off of Commodities and a declining dollar would push Oil up to triple digit numbers, however China is a trading nation that gets most of its revenue from the United States.

Most people don't understand this, but for the next 10-15 years, the US and China are very tied together. However, soon China will have a large middle class that will be pursing "stuff" and then they wont care about the US as much since they will become a consuming nation and not an export nation.

No, you will see China and the rest move to a world currency if possible because by doing that, they know it will give them an advantage AND keep their wealth.

10-30-2008, 03:51 AM	#4
Knightbk Avalon Senior Member Join Date: Oct 2008 Posts: 73	Re: PM Putin suggest Russia & China ditch dollars in bilateral trade deals: They can't, at least not yet, the reason is that they have too much wealth tied up in Dollars and dumping dollars would essentially cause all their wealth to disappear due to devaluation AND it would also kill China's economy. Russia doesn't care much because their economy is built off of Commodities and a declining dollar would push Oil up to triple digit numbers, however China is a trading nation that gets most of its revenue from the United States. Most people don't understand this, but for the next 10-15 years, the US and China are very tied together. However, soon China will have a large middle class that will be pursing "stuff" and then they wont care about the US as much since they will become a consuming nation and not an export nation. No, you will see China and the rest move to a world currency if possible because by doing that, they know it will give them an advantage AND keep their wealth.