Russia and China want to move away from the US dollar. Will the dollar collapse?

[LegendKiller]

This, exactly.

Given that Russia's currency is probably the worst performing in the world and China's is pegged to the dollar - and a quarter of their export economy is dependent on maintaining that relationship - the reporters at Reuters need to learn to avoid being beaten by the stupid stick.

EDIT: If the dollar loses out to anything it will be the euro - and common sense that probably won't happen as long as the Russian bear is eating chunks of its neighbors.

Until the ECB starts their own QE through ABS to prop up peripheral economies which devalues the Euro.

The Euro will *never* be a reserve currency unless Euro countries hand over sovereign fiscal power to the EU. Not a single person will make the Euro a huge portion of their FCR unless they can be certain that you cannot, for 100% certainty, have a Grexit.

 

[MongGrel]

We could always tell China and Russia to piss off at any given time, we're not paying you crap and rebuild manufacturing at home again, it's still pretty strong here.

Of course the US CEO's investing in China heavily atm would be really pissed off.

 

[LegendKiller]

And as far as the demise of the dollar - what will replace it? The non-floating, centrally controlled and politically unpalatable Yuan? The fractured Euro? The Rupee?

There isn't a single other currency on the planet that, on a relative value basis, is as stable as the Dollar.

Putin is desperate and he's turning to China because he has to go to somebody else. He doesn't trust the Chinese any more than he does the US, in fact, I'd say he trusts the Chinese less.

 

[LegendKiller]

We could always tell China and Russia to piss off at any given time, we're not paying you crap and rebuild manufacturing at home again, it's still pretty strong here.

Of course the US CEO's investing in China heavily atm would be really pissed off.

You want to destroy the Yuan/China in a day? Announce that the Federal Reserve, in collaboration with the associated banks, is going to create a synthetic Yuan swap market where the clearing level of the Yuan will be used to place a tariff on Chinese products equivalent to the difference between the current exchange rate and the true floating exchange rate. At the same time launch an "America First" propaganda platform where we encourage Americans to buy USA Made stuff. Use tariff proceeds to fund home-sourcing for manufacturers.

China wouldn't last 24hrs before they became our bitch.

Now of course, all of that assumes we have a President and Congress that cares more about this country than serving the short-term interests of the Chamber of Commerce.

 

[Capt Caveman]

Wow. Don't know who's more stupid, the OP or TH.

 

[Sulaco]

Wow. Don't know who's more stupid, the OP or TH.

When in doubt, always go with the safe bet (TH).

 

[sportage]

Im not reading thru this thread.
All I know is I LOVED what Obama said today about America and urgency.
Obama basically said when the world has an issue, an need, an emergency, they call to America for the rescue.
Not China. Not Russia. But America.
Great words!!!
Great enough to be put word for word on the dollar bill.
Suck on that Putin...

 

[Jhhnn]

You want to destroy the Yuan/China in a day? Announce that the Federal Reserve, in collaboration with the associated banks, is going to create a synthetic Yuan swap market where the clearing level of the Yuan will be used to place a tariff on Chinese products equivalent to the difference between the current exchange rate and the true floating exchange rate. At the same time launch an "America First" propaganda platform where we encourage Americans to buy USA Made stuff. Use tariff proceeds to fund home-sourcing for manufacturers.

China wouldn't last 24hrs before they became our bitch.

Now of course, all of that assumes we have a President and Congress that cares more about this country than serving the short-term interests of the Chamber of Commerce.

Well, yeh, but China is already Wall Street's bitch. Why would they want to let the rest of America have any of that sweet, sweet action?

 

[MongGrel]

You want to destroy the Yuan/China in a day? Announce that the Federal Reserve, in collaboration with the associated banks, is going to create a synthetic Yuan swap market where the clearing level of the Yuan will be used to place a tariff on Chinese products equivalent to the difference between the current exchange rate and the true floating exchange rate. At the same time launch an "America First" propaganda platform where we encourage Americans to buy USA Made stuff. Use tariff proceeds to fund home-sourcing for manufacturers.

China wouldn't last 24hrs before they became our bitch.

Now of course, all of that assumes we have a President and Congress that cares more about this country than serving the short-term interests of the Chamber of Commerce.

Works for me, obviously I'm not a World Economics expert.

Obviously there has been an exchange rate thing China has been exploiting for a long time going on to begin with, you know that end of it much better than I.

 

[alcoholbob]

Russia and China alone can't cause the dollar to lose its reserve status, that's one of the reasons Russia is pushing hard for a tighter BRICs alliance. Remember when the dollar became the world reserve currency post Bretton-Woods the United States owned 90% of the world's gold. China and Russia would have to have alot more assets to back up their currencies to begin causing a sell-off in the dollar. Even if China is accumulating around 1,000 tons of gold annually, it is at least 6 years away from just reaching parity with the EU.

 

[DominionSeraph]

The minimum wage in 1982 was 15.95 shares of Apple per hour (adjusted for splits). As of close today, that's $1593/hr.

 

[LegendKiller]

The minimum wage in 1982 was 15.95 shares of Apple per hour (adjusted for splits). As of close today, that's $1593/hr.

 

[Mai72]

Wow. Don't know who's more stupid, the OP or TH.

Just because you disagree with someone it doesn't make them stupid.

 

[momeNt]

The minimum wage in 1982 was 15.95 shares of Apple per hour (adjusted for splits). As of close today, that's $1593/hr.

So this is what our wealth would be if we had a 2% effective tax rate?

Hmm... go figure.

 

[Capt Caveman]

Just because you disagree with someone it doesn't make them stupid.

The fact is that you post things that you don't understand and will post anything fear mongering. So yes, you are ignorant, stupid and annoying which also includes TH and McOwned. I'm not the only one that thinks the same thing.