For the past five years, we have warned that Vladimir Putin intended to remove the dollar as the world’s reserve currency. He understands what the Chinese have shared (from a February 2011 article in Quishi, the official Journal of the Central Committee of the Chinese Communist Party):
The fact that the U.S. dollar is the world’s reserve currency makes the U.S. a financial superpower . . .Therefore, for China to challenge the position of the U.S. dollar, it needs to take a path of internationalization and directly confront the U.S. dollar.
Putin has been scheming to get China and others to join him in unseating the dollar, thus ending perhaps America’s greatest strategic advantage as a superpower. Everything else is somewhat of a subterfuge. This is the real focus. The amazing thing is how little attention has been given to this truly systemic threat. Take a look at this Blog post as a reminder:
Now, here are three new articles that document the progression of Putin’s plan. First, Tyler Durden of Zero Hedge (note, we’ve reprinted this in its entirety out of great respect for Tyler’s post):
Russia Holds “De-Dollarization Meeting”: China, Iran Willing To Drop USD From Bilateral Trade
by Tyler Durden on 05/14/2014 10:47 -0400
That Russia has been pushing for trade arrangements that minimize the participation (and influence) of the US dollar ever since the onset of the Ukraine crisis (and before) is no secret: this has been covered extensively on these pages before (see Gazprom Prepares “Symbolic” Bond Issue In Chinese Yuan; Petrodollar Alert: Putin Prepares To Announce “Holy Grail” Gas Deal With China; Russia And China About To Sign “Holy Grail” Gas Deal;40 Central Banks Are Betting This Will Be The Next Reserve Currency; From the Petrodollar to the Gas-o-yuan and so on).
The third article comes directly from Voice of Russia also two days ago:
Фото: РИА Новости 13 May 2014
Russian press reports that the country’s Ministry of Finance is ready to greenlight a plan to radically increase the role of the Russian ruble in export operations while reducing the share of dollar-denominated transactions. Governmental sources believe that the Russian banking sector is “ready to handle the increased number of ruble-denominated transactions.”
Full article: Putin is acting on his threats (Kevin D Freeman | Global Economic Warfare)