Russia Is Doing It – Russia Is Actually Abandoning The Dollar

Russia Is Doing It – Russia Is Actually Abandoning The Dollar

By Michael Snyder, on June 10th, 2014

The Russians are actually making a move against the petrodollar. It appears that they are quite serious about their de-dollarization strategy. The largest natural gas producer on the planet, Gazprom, has signed agreements with some of their biggest customers to switch payments for natural gas from U.S. dollars to euros. And Gazprom would have never done this without the full approval of the Russian government, because the Russian government holds a majority stake in Gazprom. There hasn't been a word about this from the big mainstream news networks in the United States, but this is huge. When you are talking about Gazprom, you are talking about a company that is absolutely massive. It is one of the largest companies in the entire world and it makes up 8 percent of Russian GDP all by itself. It holds 18 percent of the natural gas reserves of the entire planet, and it is also a very large oil producer. So for Gazprom to make a move like this is extremely significant.

http://theeconomiccollapseblog.com/archives/russia-is-doing-it-russia-is-actually-abandoning-the-dollar

 

Russia Dumps 20% Of Its Treasury Holdings As Mystery "Belgium" Buyer Adds Another Whopping $40 Billion

Submitted by Tyler Durden on 05/15/2014 13:23 -0400

Back in mid-March, there was a brief scare after the start of the Ukraine conflict, when Fed custody holdings plunged by a record $104.5 billion (if promptly bouncing back the following week), leading many to believe that Russia may have dumped its Treasurys, or at least change its bond custodian. We noted that we wouldn't have a definitive answer until the May TIC number came out to know for sure how much Russia had sold, or if indeed, anything. Moments ago the May TIC numbers did come out, and as expected, Russia indeed dumped a record $26 billion, or some 20% of all of its holdings, bringing its post-March total to just over $100 billion - the lowest since the Lehman crisis.

http://www.zerohedge.com/news/2014-05-15/russia-dumps-20-its-treasury-holdings-mystery-belgium-buyer-adds-another-whopping-40

 

Gaddafi and Saddam tried to abandon the dollar for gold or Euro in their oil business. Both were killed in wars activated by US and its allies. Will they do samething to Russia?

Gaddafi gold-for-oil, dollar-doom plans behind Libya 'mission'?
https://www.youtube.com/watch?v=GuqZfaj34nc
http://youtu.be/GuqZfaj34nc
--------------------
Iraq nets handsome profit by dumping dollar for euro
Faisal Islam, economics correspondent
The Observer, Saturday 15 February 2003
A bizarre political statement by Saddam Hussein has earned Iraq a windfall of hundreds of million of euros. In October 2000 Iraq insisted on dumping the US dollar - 'the currency of the enemy' - for the more multilateral euro.
The changeover was announced on almost exactly the same day that the euro reached its lowest ebb, buying just $0.82, and the G7 Finance Ministers were forced to bail out the currency. On Friday the euro had reached $1.08, up 30 per cent from that time.
Almost all of Iraq's oil exports under the United Nations oil-for-food programme have been paid in euros since 2001. Around 26 billion euros (£17.4bn) has been paid for 3.3 billion barrels of oil into an escrow account in New York.
http://www.theguardian.com/business/2003/feb/16/iraq.theeuro

 

839. Iraqi crisis created to save dollar (6/18/2014)
In early June, Russia switches the oil payment from dollars to Euros.

This is very important news. If people starting to abandon the dollar, US will be hurt seriously in economy. Yet the news was little reported by the mainstream media. Several days later, the ISIL rebel in Iraq activates an offensive. The puppet Iraqi government retreats without any resistance. As a result, the oil price goes up.

Since the money used in most oil trading is dollar, the higher oil price will force the buyer to keep more dollar in bank as purchasing power. It’s a big amount if future option is included. Manipulating oil price becomes a strategy to save the dollar. Iraq is a big country of oil production and exportation. Its political stability has huge influence to oil price. US has turned it into a switch to adjust the oil price.
840. US keeps Iraq a battle field to adjust oil price (6/25/2014)
Since the recent Iraq crisis created by the US is to save dollar, US will maintain the current situation unchanged. A US craft carrier has been deployed in Mid-East, no air attack has done so far.

Three hundred US military advisors were sent to Iraq. Their role likely is to instruct Iraqi troops to retreat from cities or oil fields when they want the oil price to go up. Or vice versa.
The US will turn Iraq into another battle field. Let Arabs fight Arabs. Decades ago, it was Saddam's Iraq vs. Iran. Now it will be Sunni's Iraq, Saudi, Qarda vs. Shiiti Iraq, Iran.
That's a strategy it used to play, just like it manipulates Democrats and Republicans in domestic politics.

 

844. To save the dollar by hitting the Euro (7/17/2014)

Someone argues,

That’s true. But oil price is the fastest way to adjust the demand of the dollar. We saw then the Euro – an alternative to the dollar, is threatened.

Euro is the reserve currencynext to the dollar. When dollar is weak that oil buyers have to use Euros for payment to Russian oil, what if Euro’s value is threatened? Similar situation had acted four years ago when US had a financial crisis (the bankruptcy of Leman Brothers caused by sub-prime loan collapse), US resolved it by introducing the Greek financial crisis.

If the high oil price would benefit enemy Russia, then US has to dig into the foundation of ally’s wallet. Last time the ignition was Greece, this time it is Portugal.

 

845. Another way to weaken the Euro (7/21/2014)

The energy supply of Europe is heavily dependent on Russia. About one third to 40% of its natural gas and oil are imported from Russia. One important gas pipe is inside Ukraine. If there is a turmoil in Ukraine, the gas supply to Europe will be affected. The economy of Europe would be weakened, so be the Euro. That’s why we saw an upheaval in Ukraine.

Here EU used to be a follower of the US. I think the Europeans have sensed the coming danger the US will bring to them. German is a major power of EU. Recently, German has twice revealed two US spy cases and eventually expelled a CIA intelligence official. That’s unusual.

I would say German has sensed (or with its state ability, having the intelligence) that US would sacrifice European’s economy by creating a crisis in Europe. It could be terror attack; or war. The deportation of US intelligence official is just a warning or protest of disagreement. Several days later, Malaysia airliner MH17 was down in Ukraine.

 

847. Puppets show to save the dollar (8/1/2014)

The MH17 crash was obviously an attempt to draw Europe into a war crisis in Ukraine. As a result, Euro goes down wards.

Russia wants buyers to abandon the dollar and use the Euro for its oil. Ukraine crisis forces traders to sell the Euro. That’s how US to save its dollar – by creating war crisis.

Moreover, there is a turmoil in Libya lately. Libya is an oil rich country. The upheaval there not only push up the oil price, but also hurt economy of European countries. It’s not a coincidence.

When there were “dictators”, the media blew the trumpet for “democracy”, “color revolution”, “Arab spring”. After the fall of the dictatorship, what left over are all US assets: ISIS, Iraq’s Maliki puppet government, rival militias (include Al Qaida) in Libya. Now you rarely hear the angry cry for justice although those agents are more cruel than the “dictators” – they are bombing civilians; beheading P.O.W. and doing religious extinction. Because all those puppets are working for the same master.

The puppets now are acting war shows in Iraq, Libya and Ukraine(where only Russia is the real enemy), all for one purpose, to save the dollar from collapse.

 

849. Ebola spreading is a bio attack (8/12/2014)
The recent outbreak of Ebola epidemic is a bio attack. It plays the same role as SARS to create a public panic which finally will cause a heavy economic damage. The target aims at E.U.. The main project is to create a conflict between E.U. and Russia in Ukraine crisis. E.U. and Russia all realize it and are trying to avoid such a confrontation. The shooting down of MH17 was one of the efforts. To push the reluctant E.U. countries to step up the confrontation with Russia, US activate the Ebola attack. It’s a whipping, a blackmail. If you don’t do to my way, you’ll be suffered an epidemic. Your economy will be damaged.
The bird flu virus and Ebola virus, are the secret weapons of Pentagon because so far the outside world has no effective medicine to deal with them.

The source of Ebola was well selected. Watch the map, Guinea, Liberia, Nigeria and Sierra Leone are below West Europe, then it goes north to Spain. The dead Spanish priest indicates E.U. would be the target.
Of course, to get rid of being suspected as the original source of Ebola spreader. US got two American aid workers being contaminated with the Ebola. Both recovered from the deadly disease. It means US has developed the Ebola vaccine already. Nobody will start a bio war that would also hit himself unless he has had effective cure medicine already. That’s why there was such a comic that WHO demanded the drug but US said it’s too early as it was still in test. The possible production will be in next year.
They won't let out the new drug before they seeing the result of this bio attack - the economic crisis in Europe. That likely will happen in September.

 

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.

Until now.

According to Russia's RIA Novosti, citing business daily Kommersant, Gazprom Neft has agreed to export 80,000 tons of oil from Novoportovskoye field in the Arctic; it will accept payment in rubles, and will also deliver oil via the Eastern Siberia-Pacific Ocean pipeline (ESPO), accepting payment in Chinese yuan for the transfers. Meaning Russia will export energy to either Europe or China, and receive payment in either Rubles or Yuan, in effect making the two currencies equivalent as far as the Eurasian axis is conerned, but most importantly, transact completely away from the US dollar thus, finally putin'(sic) in action the move for a Petrodollar-free world.
http://www.zerohedge.com/news/2014-08-27/gazprom-begins-accepting-payment-oil-ruble-yuan

 

556. Petro-dollar, the cause of Iran war (7/4/08)

People think the nuclear ambition of Iran is the reason for Iran war. That is only right on Israel's part. For US part, it is petro-dollar.

US dollar is appointed currency in oil trading. Because the oil trade is a huge business, a large amount of dollar is locked up in that trade. That money is called petro-dollar. Why it is so important to US? Because it acts as a long term none interest loan The prosperous US economy partly was based on the petro-dollar - a long term loan without interest. Let me depict it in this way:

US bought a house from Japan (whom represents the oil customers of Iran) for one million dollars. US also bought another house from France (whom represents other oil customers of OPEC) for one million dollars. Japan and France use these two million dollars as fund to buy oil. The money was used in oil trading circle and never back to US. US enjoys the two houses almost free. He doesn't have to pay monthly mortgage payment. Not a penny for interest, nor for principle. All the cost was the printing of a green back paper. However, that green back paper - petro dollar, is still a debit note. How long is it? So far it's more than forty years - since dollar became the appointed oil trade currency.

But suddenly, Iran refuses to accept dollar. Japan has to ask US to exchange that one million dollar into Euro or yen. What US can do is: 1. to get the dollar back by export more merchandise. But he is not able to. He has a trade deficit already. 2. To get the dollar back with gold or foreign currency reserve. But he hasn't that much reserve. 3. To lock up that extra one million dollar in US Bond by raising the interest rate to attract the buyer. But he unwilling to do it. There is a sub-prime crisis in real estate market. Any interest increase will further devalue the house. Feds holds a large amount of real estates in my case, they don't allow such thing to happen. So to solve the problem, they go to the fourth option. 4. By pushing up the oil price.

France (other oil consumption countries) keeps one million dollar as oil trading fund. How much does he need if the oil price doubled? Two million. Thus the one million dollar Japan abandoned is absorbed by France. That's why the oil price jumped like crazy in recent days - a tricky way to keep US dollar from collapsing.

US has to pay for high oil price too. Ordinary people bear the cost. But the high oil price will hurt the economy. The condition won't last long. So war on Iran is unavoidable.

Of course, US is a "democratic" country. It can't start a war because others refusing to use its currency. Then beware of another 911 style false flag attack.

We know there was an incident of live nuclear head weapons being carried over the continental US by a B-52 last August. There is attempt of dirty bomb attack in Houston this year.

Quote, "State of Emergency: The US in the Final Six Months of the George W. Bush Administration
by Lewis Seiler and Dan Hamburg

June 13, 2008 by CommonDreams.org
.......

Former National Security Agency analyst and naval intelligence officer Wayne Madsen has been in Houston investigating the Carnaby case at great personal risk. Madsen believes Carnaby was involved both in heading off a potential war with Iran (by leaking Mossad plans to assassinate Hezbollah leader Hassan Nasrallah just days before Carnaby himself was killed) and in trying to forestall a potential terrorist attack on the port.

According to Madsen, “federal agents in Houston fear that ‘another 9/11-type part false flag’ attack is imminent, perhaps as early as July 4.”.......

http://www.commondreams.org/archive/2008/06/13/9596/

 

Banned From U.S. Banks, Russian Oil Giant Turns To Even Bigger Banks In China
Russian state owned oil company Gazprom is turning to China for foreign sources of capital now that the U.S. and European financial markets are closed to them.
Beijing is trying to open its capital markets, and lending to foreign institutions is par for the course. Gazprom make for a solid borrower, with tons of collateral in the form of gold…black gold that is. For Gazprom, Chinese interest rates aren’t as low as what Western banks can offer. But they are still more attractive than Russian banks. China’s benchmark interest rate is 6%, while Russia’s rate is 8%.
http://www.forbes.com/sites/kenrapoza/2014/10/15/banned-from-u-s-banks-russian-oil-giant-turns-to-even-bigger-banks-in-china/?partner=yahootix

 

The Cost Of Putin’s Ukrainian Adventure: Russia’s Currency Is Plummeting

The Russian ruble is worth 41% less, in dollar terms, than it was on January 1. U.S. and E.U. sanctions, plus a big drop in oil prices, are to blame. posted on Nov. 6, 2014,


The Russian currency, the ruble, has plummeted this year, hitting fresh lows of 46 rubles to the dollar on Thursday. It traded at 40 rubles to the dollar just in the last month, and has depreciated 41.8% this year.


That means that if you had $100 worth of rubles on January 1, they would be worth less than $60 today.
http://www.buzzfeed.com/matthewzeitlin/the-cost-of-putins-ukrainian-adventure-russias-currency-is-p

 

The Kerry-Abdullah Secret Deal And An Oil-Gas Pipeline War On Iran, Syria And Russia

By F. William Engdahl

27 October, 2014
Engdahl.oilgeopolitics.net

http://www.countercurrents.org/engdahl271014.htm

 

Russia falls in US' oil trap, or US falls in "Putin's gold trap? Interesting article to read.


Grandmaster Putin’s Trap

Thu, Dec 25, 2014

Russia, United States
By Dmitry KALINICHENKO (Russia
Despite numerous success reports in the style of Fox News and CNN, today, Western economy, led by the United States is in Putin’s trap, the way out of which no one in the West can see or find. And the more the West is trying to escape from this trap, the more stuck it becomes.
http://orientalreview.org/2014/12/25/grandmaster-putins-trap/

 

Russia still adding to gold reserves big time

With an addition of 18.7 tonnes in October, Russia continues to build up its gold reserves.

Author: Lawrence Williams
Posted: Friday , 21 Nov 2014

LONDON (Mineweb) -

The latest announcement from the Russian Central Bank shows that the nation is still accumulating gold at a high level. Total gold reserves according to figures compiled by Nick Laird of www.sharelynx.com have now reached 1,169 tonnes having been expanded by a further 600,000 ounces (18.7 tonnes) in October.
http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=260489&sn=Detail

 

Currency Wars – Russia and Netherlands Central Banks Buy 30.34 Tonnes Gold In December
By GoldCore Research / January 27, 2015

Russia and surprisingly the Netherlands were the largest central bank buyers in December – accumulating a significant 30.34 tonnes between them as currency wars intensify.
The Netherlands, which has the ninth-biggest gold reserves, raised its bullion holdings for the first time in 16 years. It added 9.61 tonnes to bring total gold reserves to 622.08 tonnes.

Russia raised its gold reserves for a ninth straight month in December as the country continued its multi month gold buying spree, adding to the fifth-biggest gold holdings in the world, data from the IMF showed yesterday.
Russia continues to dollar cost average into gold and increased its bullion holdings by another hefty 20.73 tonnes to 1,208.23 tonnes in December.
http://www.brotherjohnf.com/archives/368066

 

BRICS Bank to Take Major Step Forward with Russia Backing

4 February 2015

The new development bank took one step closer to becoming a reality with legislation submitted to the Russian Parliament.
http://www.telesurtv.net/english/news/BRICS-Bank-to-Take-Major-Step-Forward-with-Russia-Backing-20150204-0016.html

 

Russia and China ‘Furiously’ Buying Up Gold As “a Global Currency Crisis – Albeit Unstated – is Underway”

Mac Slavo
January 20th, 2015

http://www.shtfplan.com/headline-news/russia-and-china-furiously-buying-up-gold-as-a-global-currency-crisis-albeit-unstated-is-underway_01202015

 

Russia unloads 20% of its total U.S. holdings in one month

February 21, 2015

By Mac Slavo
According to a report from Zero Hedge the Russians have already started unloading their dollar reserves. In the month of December alone they sold a record $22 billion in U.S. Treasurys. While this may not seem like a big number, it is over 20% of their total US dollar holdings.
https://www.intellihub.com/russia-unloads-20-total-u-s-holdings-one-month/

 

Legendary Richard Russell Predicts Within A Year All Physical Gold Will Be Swept Off The Market
January 23, 2015
http://www.brotherjohnf.com/archives/367122