Russia to Pass a Law Formally Dumping the U.S. Dollar

Posted by on September 13, 2015 in Agencies & Systems, Bankers & Wall St., Government with 32 Comments

Michael Snyder | HumansAreFree

Russian President Vladimir Putin has introduced legislation that would deal a tremendous blow to the U.S. dollar.

If Putin gets his way, and he almost certainly will, the U.S. dollar will be eliminated from trade between nations that belong to the Commonwealth of Independent States.

In addition to Russia, that list of countries includes Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Uzbekistan.

Obviously this would not mean “the death of the dollar”, but it would be a very significant step toward the end of the era of the absolute dominance of the U.S. dollar.

Most people don’t realize this, but more U.S. dollars are actually used outside of the United States than are used inside this country.

If the rest of the planet decides to stop accumulating dollars, using them to trade with one another, and loaning them back to us at ultra-low interest rates, we are going to be in for a world of hurt.

Unfortunately for us, it is only a matter of time until that happens.

When I first read the following excerpt from a recent RT article, I was absolutely stunned:

Russian President Vladimir Putin has drafted a bill that aims to eliminate the US dollar and the Euro from trade between CIS countries.

This means the creation of a single financial market between Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and other countries of the former Soviet Union.

“This would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets”, said a statement from Kremlin.

For a long time, tensions have been building between the United States and Russia over Syria, Ukraine, the price of oil and a whole host of other issues.  But I didn’t anticipate that things would get to this level quite yet.  It is expected that Putin’s new bill will become law, and this is only one element of a much larger trend that is now developing.

You see, the truth is that Russia and China have both been dumping dollar-denominated assets for months.  The following comes from a recent piece by Mac Slavo:

“Last year Russia began unloading massive amounts of their US dollar reserves. In the month of December 2014 alone Putin sold some 20% of the country’s U.S. Treasurys, a move that further increased tensions surrounding what can only be described as economic warfare between East and West.

“Then, as if part of a coordinated effort, this summer it was revealed that China had implemented a similar strategy,dumping half a trillion in dollar denominated assets.

“But that’s just the beginning of the end for the US dollar. Amid a major meltdown in Chinese stock markets the People’s Republic sold off billions in dollar assets last week in what was reported to be an effort to stabilize their collapsing financial markets.

“And now, as Russia’s economy collapses under the weight of American and European sanctions, including what many believe to be widespread downward manipulation of oil prices, Vladimir Putin is sending a clear signal to the central bank of the world’s reserve currency.”

China has the second largest economy on the entire planet, and Russia has the tenth largest.  In recent years, these two superpowers have become much tighter.


Read the rest of the article here.

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32 Reader Comments

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  1.' Levi Dominguez says:

    Iraq tried that

  2.' Leena Laitinen says:

    Back to the USSR…

    •' Leena Laitinen says:

      How many of you have actually been to SU or Russia? I spent a term there, at a Uni, studying the language to complete my university degree, and have visited the country several times. Not since 1995 though because I’d rather spend my time in the West which is stable, safe, predictable, logical and clean unlike Russia. And now they are really going to hit the bottom…

  3.' Dan Walper says:

    There is no money in the future

  4.' Zen Hec Ryan says:

    But isn’t the reason the U.S. dollar is used around the world because the dollar is trusted? You can print what you want but if the people at the bottom of the food chain don’t trust the paper, and let’s be realistic it’s only paper, there is nothing backing this stuff in a bank ( gold etc) so your going by the “word” of the holder, we will see how many years this lasts, before the “TRUST” goes back to the US dollar??

    •' Mitch Blanco says:

      The trust isn’t there anymore, which is more and more countries are getting rid of the dollar. The article information is old because I have already seen other articles dating back around a year where not only Russia and China are dropping the dollar. More and more countries are making business deals with their own currencies or in Gold payments. India is one of those countries making deals with Russia and China. Pretty soon Africa will be doing the same. Also, there is a country in Africa that created a law officially banning any and all business dealings with the US dollar, which is why the US is already making a move to Africa, not only for their resources, but also to control the country, hence all the new military bases popping up there now.

    •' Zen Hec Ryan says:

      I didn’t know about India, China’s throwing there weight around the world everywhere as is Russia, but the poor nations will come back. Why! America offers better deals in the long run. With China you always are in debt they are very giving, pay back is forever. America is very for giving in loans which they write off to easy. Countries will take advantage of both, America in the long run is the lesser evil of the domanation of the powerhouses. Countries know this, China’s biggest mistake was threatening nations in the Southern Asian seas, giving America a winning lottery powerball ticket, that’s the game changer. Russia will always be there but there reach will always be limited. Really enjoyed your thoughts your on the ball.

    •' Mitch Blanco says:

      Let’s get something straight even if it hurts to know the truth about this beloved country!!! The US is the BIGGEST and first debt creator in the planet,,, China is most likely implementing the same structure the US has already implemented to everyone for about a century or more.

      Plus, America spends all its time throwing all it’s military might all over the world and if they don’t get what they want, they start to implement ‘sanctions’. When I was in the military and I was stationed overseas, want to know what ‘view’ the world has of America? The only view they have of the US is the fearmongering and bullying via military might. The type of ‘marketing’ or ‘media’ people from other countries see of America is what other atrocity US military personnel are committing across the globe. Want proof? Take a look at all the videos US military personnel are posting themselves in youtube,,, and that’s just one of the examples.

      And no, with the creation of the EEU, Russia, China and all the other countries that have already joined are only getting stronger because there are most countries trying to join the EEU and not the EU. The US dollar is weakening and the biggest thing of all, the US influence is already starting to be put to doubt.

    •' Zen Hec Ryan says:

      Man, I’m not an American never been to America, I’m in Nth Qld Aus..The Chinese have been spending their influence with money they throw it around like crazy but you pay it back no choice, no deals. America doesn’t do that you CAN make deals, sure you owe them. China don’t make deals.India will look after India they have no trust with the Chinese. Of course America is hated and was a lot worst in Asian 10years back but China building a Navy and claiming every piece of island, making Islands, building roads and there promises comes at a great cost as with Russia, They can have their meeting in South Africa all they want, but at the end of day your Dollars look good in trade everywhere, your brand is Coke Cola, Its the Brand, it may side and others may rise but it won’t crush you. Your not listening money not real, there is nothing to back it not enough gold in this world to cover nothing, so your ‘ make up’ money is better than their Monopoly

    •' Todd Speed says:

      Interesting reading other people’s thoughts on this subject. I was quite surprised as an engineer working on a billionaires yacht (American owned) that the shipyard in the Cape Verde/Cabo Verde Islands refused to repair his boat immediately because the contract they had with a Chinese fishing fleet was more important.

    •' Sunny Nonyas says:

      No one trust our dollar anymore because it’s widely know we cannot back it with gold or silver and haven’t for decades.

    •' James Payne says:

      Trust? lol I think we should call it fraud. your right its just paper. The reason the dollar is losing it’s strength is because America is the world’s bitch now. Thanks to Obama and Bush

    •' Sergio Vazquez says:

      Lol. Your really living under a rock, aren’t you.

  5.' Melissa Hobbes Cherry says:

    oh goodie, another reason for the conservatives to beat the war drums

  6.' Twan Howard says:

    WWIII for sure then!!!!

  7.' Vince Lendway says:

    Its almost as if you clowns are on a basketball team hoping your opponent wins. Thanks for nothing. Dumbies.

  8.' Jimm Reis says:

    Russian overseas workers will be losers too.

  9.' Yusuf Ameen says:

    Good move, but they will soon make up some reason to attack them for it, cause well, that is the American way.

  10.' Sarah Forsyth says:

    Shanan Lawson

  11.' Estrelle Estrelle says:

    Goodbye USD

  12.' Ivan A Hernandez says:

    Rene Vela Jr.

  13.' David Nora says:

    Our out of control debt has the rest of the world worried…

  14.' Lisa Marie says:

    “In God we trust” is on US MONEY. IN God we trusted there was gold etc to back the US dollar. Lies and deceit

  15.' Melinda Biddle says:

    its about time thank you Putin ! YES

  16.' David Bailey says:

    it is time for us all to dump us dollar

  17.' Jack Sherman says:

    Dump Peutin.

  18.' Olzha Bolatbek says:

    Kazakhs do not support it. But who cares ? He has no power over CIS, it’s a council.

  19.' Joe Wakefield says:


  20.' Hank Diesel says:

    Who cares? You can’t force other countries to accept a foreign currency. Our money is a fraud anyway.

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