The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan Submitted by Tyler Durden on 08/27/2014
Several months ago, when Russia announced the much anticipated "Holy Grail" energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar's stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.
This changed in late June when first Gazprom's CFO announced the gas giant was ready to settle China contracts in Yuan or Rubles, and at the same time the People's Bank of China announced that its Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin held a meeting in which they discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.
And yet, while both sides declared their operational readiness and eagerness to bypass the dollar entirely, such plans remained purely in the arena of monetary foreplay and the long awaited first shot across the Petrodollar bow was absent.
This is one of the last steps on the timeline of the dollar being scrapped for some other currency. The dollar is almost dead and reckless spending killed it.
Obama, yesterday: "As a result of the actions Russia has already taken and the major sanctions we've imposed with our European and international partners, Russia is already more isolated than at any time since the end of the Cold War.
Capital is fleeing. Investors are increasingly staying out. His economy is in decline. And this ongoing Russian incursion into Ukraine will only bring more costs and consequences for Russia."
Maybe not, Bambi.
202 years ago this week, First Lady Dolly Madison saved the famous portrait of George Washington from the White House during the War of 1812. If it happened today, Obama would probably save his golf clubs!~~FB comment
Quote: Frank Cannon wrote in post #2This is one of the last steps on the timeline of the dollar being scrapped for some other currency. The dollar is almost dead and reckless spending killed it.
After the US went off the gold standard internationally, Nixon and Kissinger's petro dollar construct helped extend the life of the dollar for a long time. I wonder what's next - the Amero or something along the lines of SDR's administered by the IMF. Then we can go fiat globally.