This can’t be good.This week The Russian Federation and The People’s Republic of China signed an agreement to trade in Rubles and Yuans instead of US dollars the preferred currency of world trade. From China Daily:
China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.
Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.”About trade settlement, we have decided to use our own currencies,” Putin said at a joint news conference with Wen in St. Petersburg.
The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.
So Much for the dollar. Thanks G.W. Bush, Ben Bernanke and Pres. Obama. Thanks a whole hellva lot!