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Headlines : MiscellaneousRussia ends de facto dollar peg and moves to align rouble with euro
Russia’s economic decision to separate the rouble from the dollar could trigger other countries, currently on the fence about dropping the dollar in favor of the Euro, to take a firm stance on what could result in a mass capital flight from the US.
[Posted By Anil]Republished from Financial Times
Russia said yesterday it had abandoned efforts to tie the rouble’s movement closely to the dollar and switched to shadowing both the euro and the US currency.
The move heightened expectations that other countries operating de facto dollar pegs, such as China, could follow suit.With 81 per cent of Russia’s oil exports currently sold to Europe, the move also provoked fresh speculation that Russia could decide to denominate its oil in euros. Russia is the world’s second-largest oil exporter, behind Saudi Arabia.
“Russia has talked about the idea of pricing its oil in euros. If it is starting to put more weight on the euro in terms of its forex regime and reserves, then that speculation will be re-ignited,” said Ian Stannard, currency strategist at BNP Paribas.
Russia had announced its intention to introduce a basket arrangement last April but did not set a firm date for the change. The Bank of Russia, the central bank, has been building its euro reserves in readiness, with some 30 per cent of its reserves now estimated to be in euros, against just 5 per cent in 2000. Traders said it appeared Russia had begun to loosen its peg to the dollar in October, when…
Posted by Anil
Trying to be a writer. Oh hell, that’s not even a sentence, is it? But this one is. And so was the last one. Four out of six isn’t bad. I hear that’s how Orwell got started.
If your considering a hedge against the dollar, go for Junior Gold Mining companies (small time stuff not Newmont which most of us probably cannot afford) and wait patiently. Gold will surge relative to the stability of all currencies, so until people figure out how to balance their portfolios, anything related to finances will be in a state of flux. The Chinese Yuan would also be a good prospect to look at for an investment.
Bear in mind that if China decides to unpeg the Yaun from the dollar, they may choose not only other currency(ies) but a Gold peg as well, so if you own Yuans, your in good shape long term.
China will be the next economy that revives us after a decade or more (after the crash) as well as other economies.
Long term, do not liquidate all dollar currency. As other countries buy our products, the dollar has a better chance of regaining lost value.
Stipulation. Do your own research.
The U.S. government (Alan Greenspan, economists, admin in on the squeeze play) know that they have got to get rid of some of the socialist programs like Medicare, SS, various organizations that are funded by Uncle Scam, Welfare Assistance, etc….
The idealogical approach to an ownership society requires them to crash the system first. They, the powers that be, don’t give a fuck who gets burned because they are set for life.
In order to do so, they must break the bank, i.e. spend us into oblivion so that any resources we had are gone/unavailable, then allow the dollar to lose value so that everybody, except the wealthy, has to curb spending, debt, liabilities, etc…and some will lose a whole bunch of shit that they and their parents worked hard to aquire.
The wealthy will not be as heavily affected with exception to stockholders who have not diversified (Millionaire to broke nearly overnight because they tied up too much money into one stock or one sector of the economy that is heavily affected after the crash), so the key is diversification within the limits of your discretionary income.
Best of Luck.
http://www.antiwar.com/ips/marquez.php?articleid=3731
there seems to be a quickly developing alliance between venezuela and China (via Iran) and between venezuela, russia, china and india)
with a large arms purchase from russia and a 1 billion dollar capital investement into venezuela’s oil infrastructure from moscow, venezuela seems to be ready to move into this very powerfull alliance. If moscow and venezuela both monitize to euros, the u.s. dollar will continue to plunge (from one dollar to 85cents in 2001 to 1.33 dollars to a euro today).
Twitch or anyone who can help,
An under represented topic in our blog forums is how we can be better prepared for this imminent event – the crash. Can someone post info or suggest references for people to research how to prepare for grim economic future, especially for those with limited means. How does someone making minimum wage or even middle class income get ready and preserve thier life savings? With what companies can one invest small amounts of money (less than $10,000) in say gold or euros? I don’t mean to sound ignorant, but I think we should establish a better sense of community and really try to help each other as much as possible. I believe this is the true human spirit as opposed to greed. In stead of “best of luck”, how about here’s who can help you or how you can help yourself? Thanks.
Can someone post info or suggest references for people to research how to prepare for grim economic future, especially for those with limited means. How does someone making minimum wage or even middle class income get ready and preserve thier life savings?
Buy lots of ammo.
Ha! The ol’ butter or guns argument:-)
Butter just makes you fat.
Hardy fuckin har.
You are absolutely right Beast. My apologies.
I think a Forum would be a Great Idea. We have Media Traders Forum. Any ideas for a title?
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