Russia Takes Two Steps Towards A Multipolar World and Away From U.S. Dollar Hegemony
Russia Takes Two Steps Towards A Multipolar World and Away From U.S. Dollar Hegemony by Rory – The Daily Coin
Sergei Ryabkov, Russian Deputy Foreign Minister, stated the U.S. dollar, Federal Reserve Note, was an enemy to Russia. He went on to proclaim that Russia would be moving away from using the “world reserve currency” and making other arrangements to conduct global trade.
Earlier Sergei Ryabkov said that it is important for Russia to create a working economic system that would be less dependent on the US dollar and on the US financial system as a whole. Otherwise, Ryabkov warned, the US will be able keep Russia “on the hook, which is exactly what they (the US) want.” Source – Sputnik News
Now we see Russia making not just one move to improve their situation but two major steps are either in place or moving toward the exit from the Federal Reserve Note as unit of account for global trade settlement.
Meanwhile, Dmitry Polevoy, chief economist for Russia & CIS region at ING Bank, warned that the Russian economy may not be able to become independent from the US dollar anytime soon due to the fact that Russia’s status as major exporter of raw materials – for example, oil – which is globally priced in US dollars.
“Therefore, a significant decrease in dependence on the US dollar can only be achieved by increasing the volume of non-raw material trade with the non-USD bloc countries,” Polevoy said. Source – Sputnik News
In April Russia moved $47.4 BILLION of their reported $96.1 BILLION of U.S. Treasuries to someone else’s ledger sheet. It is no longer Russia’s ball and chain. This represents approximately half of Russia’s holding in U.S. debt. This would make anyone breathe a little easier as it has been said in the past – if I owe you $100 that’s my problem, but I owe you $1,00,000 that’s your problem. Russia just dumped half of the U.S.’s problem.
In just one month, Russia proceeded to sell $47.4 billion out of the $96.1 billion the country had in US treasury bonds in March. The latest statistics released by the US Treasury Department on Friday showed that, in April, Russia had only $48.7bn in American assets, occupying 22nd place on the list of “major foreign holders of Treasury securities.” Source – Russia-Insider
Then in early May 2018 we were following as the Russian’s were, once again, making moves away from the U.S. dollar and discussing the Chinese launch of the yuan priced futures oil contract.
Russia is ready to support the Chinese contracts, as Sputnik contributor Igor Naumov wrote, citing a source close to the top management of the Saint-Petersburg Stock Exchange (SPBEX).
“Currently, the US dollar is used as the contract currency in the global hydrocarbon trading system, as well as for other commodities,” the journalist explained. “This is what largely provides the dollar with its status as the world’s leading reserve currency. [However], the yuan is seeking to dislodge the American [petrodollar] from one of the fastest growing oil markets in the world.” Source
Now in June 2018 we learned that Russia has been discussing a change to the way oil is brought to market and, more importantly, how the pricing mechanism is handled. The pace is quickening as Russia and other nations head for the exit from the dollar based system. Is this the reason Russia is the enemy here in the U.S.?
Russia and Saudi Arabia are using the backdrop of the FIFA World Cup, being held in Russia, for what sounds like, a series of meetings to hammer out details of developing a new global oil market. What role the new futures oil contract priced in yuan, made available in March 2018 in China, is anyone’s guess. In my opinion it will serve as the backbone of the discussions between Russia and Saudi Arabia.
Russia and Saudi Arabia have de facto accepted responsibility for the stability of the global oil market by working out an agreement which may pave the way for a new global oil market and oil price regulation mechanisms, Russian analyst Dmitry Lekuh said. Source
Dmitry Lekuh noted that Russia and Saudi Arabia intend to offer other oil producing countries — including Canada, Mexico, Kazakhstan and the US – the opportunity to join the global oil production curbing agreement.
Russian oil analyst, Dmitry Lekuh stated, as a follow on, that nations from around the world including the U.S., Mexico, Kazakhstan and Canada would be welcome to join this market but seemingly play no role in the regulation, pricing or otherwise have anything to do with the workings of the market itself, merely “customers” buying and selling in the market place.
This is two huge blows to the Federal Reserve Note, world reserve currency, U.S. dollar and falls in line with Russia’s announcement of their monetary system making dramatic changes to move away from the clutches of the hegemonic U.S. dollar. Sounds like Russia, and several U.S. allies, can now see the exit and are taking steps on a daily basis to simply walk away from this unipolar system.
And finally, on June 18 ZeroHedge reported the upcoming OPEC meeting scheduled for later this week. The meeting doesn’t address any of the real issues, like pricing, the impact of the yuan priced futures contract or Russia and Saudi Arabia making moves away from the current system nor will they be discussing Iran and Venezuela already being out of the petrodollar system. No, those are real issues and the masses are not allowed to better understand what is actually happening. The masses only get the fluff and “production increases/decreases” non issues.
Heading into Friday’s much anticipated OPEC meeting in Vienna, the focus has shifted from (declining) global demand-side concerns to specific supply-side actions, and while it is broadly expected to conclude with an oil production increase – the first since the historic production cut agreement in late 2016, is set to be contentious with members Iran, Venezuela and Iraq arguing against a hike proposed by Saudi Arabia and non-member Russia. Source – ZeroHedge