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Monday, June 09, 2014

Russia, China Drop Bombshell On US Dollar

By Susan Duclos

 Trends forecasters, financial gurus and just about everyone in the financial industry that isn't participating in one of the hugest coverups in history, have warned us, over and over again that this day would come..... and now it is here.

 Two huge bombshells have been dropped over the last few days, but the MSM hasn't highlighted the meaning yet or they are complicit in keeping how devastating this news is for the US dollar and economy, from the American people.

 The first came out on June 6, 2014, where t was reported that the International Monetary Fund’s headquarters may one day shift to Beijing from Washington:

The IMF founding members “decided that the institution would be headquartered in the country which had the biggest share of the quota, which chipped in the biggest amount and contributed most. And that is still today the United States,” she said in response to questions at the London School of Economics.

“But the way things are going, I wouldn’t be surprised if one of these days the IMF was headquartered in Beijing for instance,” she said. “It would be the articles of the IMF that would dictate it.”

Lagarde said the IMF has a good relationship with China, the world’s second largest economy and she praised the government’s commitment to fighting corruption.

The second shocker was reported by Financial Times of London and is perhaps the most damaging to the US Dollar and that is that Russia has announced they will not settle trade deals using Chinese and Asian currencies.

Alexander Dyukov, chief executive of Gazprom’s oil division, has said that the company has discussed with its customers the possibility of shifting contracts out of dollars, while Norilsk Nickel told the FT that it was discussing denominating long-term contracts with Chinese consumers in renminbi.

“It looks like this is not just a blip, this is a trend,” said Mr Teplukhin of Deutsche Bank. He added that Russian companies were able to hedge the risk of further US sanctions by “changing the letter of their contracts to allow them to change currency if it is necessary”.

Some politicians have suggested Moscow should respond to western sanctions by entirely “de-dollarising” its economy.

Fabian4Liberty explains more about this and what effect this has on the US economy, in the video below.

Cross posted at Before It's News