Sanctions against Russia could chip away at the global dominance of the US dollar, according to Gita Gopinath, the first deputy managing director of the International Monetary Fund.
“The dollar would remain the major global currency even in that landscape but fragmentation at a smaller level is certainly quite possible,” Gopinath said in an interview with the Financial Times on Wednesday.
She added that some countries are already renegotiating the currency in which they are paid for trade. Russia and India are currently preparing a rupee-ruble mechanism, replacing SWIFT. it would allow them to trade in national currencies while evading the dollar.
According to Gopinath, the radical restrictive measures introduced by Western countries amid Russia’s military operation in Ukraine could lead to the emergence of small currency blocs based on trade between individual groups of countries. Furthermore, the use of currencies other than the dollar or the euro in global trade would lead to the further diversification of the reserve assets held by national central banks.
Biden said recently that we are looking at a long, protracted war in Ukraine. The longer this goes on, the worse it gets for the US dollar and the energy crisis in the West.
APRIL FOOL’S DAY, WHEN THE RUSSIANS CUT OFF GAS TO EUROPE
As reported yesterday, Russian President Vladimir Putin has greenlighted ruble gas payments for buyers from countries that placed sanctions on Russia in connection with Ukraine.
Putin signed a decree on Thursday demanding that these buyers open accounts in Russian banks to facilitate the payments.
The measure takes effect from April 1.
“If unfriendly countries do not pay in rubles starting from April 1, we will consider this a default on gas contracts, in which case the existing contracts will be scrapped,” the president said.
The ‘unfriendly’ states Putin referred to are the US, UK, Canada, Australia, Japan, Taiwan, South Korea, Switzerland, the 27 nations of the European Union, and a number of smaller countries.
INDIA IS THE FUTURE AND THEY MIGHT JOIN RUSSIA’S VERSION OF SWIFT
The Indian government will make a decision next week about Moscow’s proposal to turn to the Russian payment system. It allows direct rupee-ruble transfers in bilateral trade.
The mechanism avoids trade in dollars and allows India to bypass Western sanctions.
The scheme involves rupee-ruble-denominated payments via Russia’s messaging system, SPFS. The final decision is expected to come after a two-day visit of Russian Foreign Minister Sergey Lavrov to India. That’s according to Bloomberg.
Under the proposal, rubles will reportedly be deposited into an Indian bank. They will be converted into rupees. And the same system will work in reverse. Russia also wants India to link its Unified Payments Interface with their MIR payments system for seamless use of cards issued by banks of both countries after Visa and Mastercard suspended operations in Russia.
India and China would then be solid trading partners. “Isolated” Russia isn’t that isolated. The ruble is also not crashing as Biden promised.
The Biden administration also seemed to believe China might support the US or at least not counter the US. Even Bill O’Reilly suggested it last night on his podcast. The notion is not even in the realm of reality.
CHINA WILL RESTRICT VISAS OF SOME US OFFICIALS
Currently, China has decided to restrict visas for a number of US officials. This is in response to similar measures introduced by Washington earlier this month over alleged human rights abuses.
“The Chinese side decided to impose retaliatory visa restrictions on certain US officials who spread lies on the issue of human rights, imposed sanctions against China, and harmed China’s interests,” stated Chinese Foreign Ministry spokesperson Wang Wenbin on Thursday.
“The spokesperson claims that the US used the false pretext of human rights issues to interfere in the internal affairs of China, discredit Beijing, and put pressure on Chinese officials.
Wang stated that such actions are a serious violation of the basic principles of international law and international relations.
We don’t know who it affects yet. But it will be those who allegedly invented “lies” on the issue of human rights.
The US just imposed visa restrictions on China and this is the response.
Blinken is most assuredly on the list.
The US needs to find a way to get along with these people.
It isn’t April just yet…but Year Zero is now.
Destroyed from within just as Long Marcher comrade Abe Lincoln said.
Stocking up with church pantry run and just back from the Sack-N-Save and the sad sack maskeraders, look for the Red Guards to go full retribution this spring/summer and then the externals will put the progressive abomination out of its misery.
Traitor Joe and the Godless Communist Democrat Liberal Losers have basically engineered the Collapse of the United States of America in under 2 years and the Congress has stood around with their heads up their asses ignoring what is going on. It started in earnest with the Destruction of American Oil Independence which exacerbated supply line shortages. Before that was the insane spending because of Covid, Covid was not the Black Death. The whole Covid response was a Democrat power grab. The spending, has as predictable, resulted in Stagflation. We had shortages and Government created business collapses, then the Congress throw fuel on that fire with Deficit Spending.
Now we have Ukraine! It starts with the RETREAT from Afghanistan which told the World there is a Compromised Coward in the White House. I suspect the Intel Agencies then started rumors that there would be another “flu” outbreak that would originate in Ukraine. This left Putin no choice but to take control of Ukraine Bio-Labs funded by the America Government. Then the Traitor Joe Administration come up with worthless sanctions that will hurt the US Dollar by forcing China and Russia to replace the USD as the Worlds Premier Currency. The Russian Ruble has already recovered from Sanctions. It’s the USD that is in serious trouble.
Now without America at full Oil Production, Russia will cut Europe’s Oil and Gas Supplies. OPEC isn’t going to come to Europe’s Aid. They hate Europe. OPEC doesn’t care for America either. They will sell to China because China now has the upper hand. Without Oil Production and depleting the Strategic Petroleum Reserves, America will not be in the position to repel a Chinese takeover of Taiwan. Modern Navies use a lot of Oil and we won’t have enough. When China takes control of Taiwan they will have control of almost all chip production in the world. China will have America by the Balls and will then start to squeeze very hard. Our only choice then will be a Nuclear World War Three and Godless Communist Democrat Liberal Losers are known cowards. In fact, the Godless Communist Democrat Liberal Losers are so brain washed, they are looking forward to Communist Rule.
At this point, I expect there will be Civil War in America and Blue Coastal States will side with China. There fate will not be pretty due to their population densities. I wish this wasn’t the case, but all signs are pointing to this. We are very close to the point of no return. The removal of Traitor Joe may buy us some time, but it is clear that if Traitor Joe remains in the White House, America will fail. Congress or the Cabinet must Act; and soon. Traitor Joe has already had two Stokes that we know of. Jill Biden reportedly has said he had 3 stokes. I am praying for Divine Intervention as that would result in minimal political turmoil. We can deal with Heels Up Harris later even though she will also be a disaster! We have no good choices!
Putin is playing chess, while the other idiots are playing checkers.
How’s that today Georgia and tomorrow the world working out for ya CPUSA?
Kinda hard to rule the world with Zimbabwe Wallpaper even if you have Weimar Wheelbarrows full.
Even after 10 minutes in, quite interesting concerning monetary policy, economics etc.
https://www.youtube.com/watch?v=I6FRgFwUedg