Monday, January 9, 2012

The US Dollar is Dropping Like Dead Flies All Over the Place

This from Zerohedge is about how many nations, including staunch ally Japan, are quietly concluding business deals and trade that do not involve the US dollar - the world's supposed reserve currency. This needs no comment from me excepting that I'm wondering when gold and silver are going to go ballistic.

Zerohedge reports

For anyone wondering how the abandonment of the dollar reserve status would look like we have a Hollow Men reference: not with a bang, but a whimper... Or in this case a whole series of bilateral agreements that quietly seeks to remove the US currency as an intermediate. Such as these:

"World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade",

"China, Russia Drop Dollar In Bilateral Trade", 

"China And Iran To Bypass Dollar, Plan Oil Barter System", 

and now this: "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says." And ironically, the proposal to dump the greenback did not come from Iran. Per Bloomberg: "Iran and Russia replaced the U.S. dollar with their national currencies in bilateral trade, Iran’s state-run Fars news agency reported, citing Seyed Reza Sajjadi, the Iranian ambassador in Moscow. The proposal to switch to the ruble and the rial was raised by Russian President Dmitry Medvedev at a meeting with his Iranian counterpart, Mahmoud Ahmadinejad, in Astana, Kazakhstan, of the Shanghai Cooperation Organization, the ambassador said." Is Iran gradually becoming the poster child of an energy rich country that just says no to the dollar: "Iran has replaced the dollar in its oil trade with India, China and Japan, Fars reported."... Read more

It won't be too long until Japan, China and Russia will complete bilateral trade agreements with the Eurozone nations in exchange for purchasing European Bonds or European Financial Stability Facilities (FSF).  Oh, but don't worry, Only China, Japan, Russia, India, Brazil and the EU will make these transactions in other currencies besides dollars... Everyone else will still use good old US made paper! Who will that be, you ask? Well, there's the USA, and er... Ummmm...

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