Thank you for your reply. I was hoping you would.
I've had people much smarter than me tell me that the dollar as the world's reserve currency is dead, and that Russia, China, and Iran are hand-shaking this deal in anticipation of that. They have also told me that if you look at history, this actually happens all the time, the only exception is gold. Countries have always defaulted to gold.
My understanding of the article was China's concern of the Ruble being strong enough to supplant the Petro-Dollar. I'm curious to see if RCI start trading petroleum in Rubles, not the dollar (or Petro-Dollar). Because that will hurt. In limited research it appears that the deal was approved, but I'm not hearing anything about it in the MSM so I really don't know what it means long term.
It's no secret that China is hoarding gold, and has supplanted the U.S. as the world's biggest economy. China is setting themselves up quite well for the future by hoarding all of that gold. My understanding is that India missed the boat on the gold so instead they are buying up silver. I really wish I had invested in gold/silver back in '08 before it sky-rocketed.
I have talked to people who believe the same thing, America's reserve currency status is very much a function of liquidity too.
All those countries you listed aren't just fed up with the dollar just because, they are fed up with the dollar because it's a defacto banking empire of credit.
Most of the world's debt is denominated in dollars and there is a giant club of central banks that none of those countries you listed wish to belong to.
China is being attacked right now, has been for decades with the sole purpose of sticking it in the club.
Right now it participates without club member status because it has to. I am sure it would prefer NEVER to be in the club but to start it's own.
There is a gigantic problem with that. China in no way has the financial know how to do this. It has fallen prey to a massive debt manipulation where our cheap credit has infested it with perhaps the largest credit bubble ever witnessed on planet earth and that popping is EXACTLY what will be used to bring it into the fold.
It doesn't have enough gold to even pee into that ocean.
Gold is a good idea but it too can be easily manipulated, the central banking elite that rule the earth didn't fall off the last turnip truck. They know exactly what they are doing.
They have provided China with the means to levitate itself into the statosphere all based on cheap credit. Cut that off and BOOM all the mis-allocation of capital comes undone at once, equal GINORMOUS depression that China will be lucky to survive without revolutions.
Nothing that happens is by accident and those who make the rules get all the gold.
They rule the world, through debt, they will control everything unless the world stops this insanity.
It's a modern slavery system based on debt, that's all it is.
The next step is to miraculously make the dollar gain value, that's what no one is banking on.
Tighten credit, ie the taper, and it DESTROYS our ability to buy goods made in China and as they try in vain to stimulate their own demand they will shortly figure out how far down the tiny limb they have climbed and nothing they do will work.
You will see a much worse depression in China than ours in 1929 and when it's over they will take over as the number one economy because it will ring every ounce of fiscal insanity out of their system but it will nearly if not actually kill them in the process.
They aren't going to be doing anything but trying to feed their own people for a long time.
I am predicting it's happening now, it could happen in 20 years but from the little I've seen on numbers for how fast their financial economy is growing and from hearing things about having problems selling previously sizzling apartments I'd say there is a good chance it's already underway.
I forget how long it took ours from it's start in farmland to eventually reach the stock market and crash it kicking it off.
It could take 5 years, or it could subside this time, heck they could even blow another bubble and stop it but every time that can is kicked the can just gets bigger and heavier.
They have expanded at a pace that makes the industrialization of the USA look timid by comparison, that means their fall will be as fierce as their climb.
I would not want to live in China right now.
