Peak Oil is You

Donate Bitcoins ;-) or Paypal :-)

Page added on July 23, 2022

Bookmark and Share

Russia And China Announce “New Global Reserve Currency”

Russia And China Announce “New Global Reserve Currency” thumbnail

If you’ve blinked over the last month, you may have missed it…

China and Russia are taking their shot at the U.S. dollar. And as often happens with consequential news in the United States and the West, no one seems to notice or even care.

Since the beginning of the year, I have been writing about the possibility of Russia and China challenging the US dollar’s global reserve status. Now, it’s happening.

It shouldn’t be any surprise to those paying attention that Russia and China are strengthening their economic ties amidst continued Western sanctions on Russia as a result of the country’s war in Ukraine.

What may surprise some people, however, is that Russia and the BRICS countries, including Brazil, Russia, India, China, and South Africa, are officially working on their own “new global reserve currency,” RT reported in late June. Nobody even seemed to notice.

“The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,” Vladimir Putin said at the BRICS business forum last month.

And of course, as Russia has been cut off from the SWIFT system, it is also pairing with China and the BRIC nations to develop “reliable alternative mechanisms for international payments” in order to “cut reliance on the Western financial system.”

In the meantime, Russia is also taking other steps to strengthen the alliance between BRIC nations, including re-routing trade to China and India, according to CNN:

President Vladimir Putin said Wednesday that Russia is rerouting trade to “reliable international partners” such as Brazil, India, China and South Africa as the West attempts to sever economic ties.

“We are actively engaged in reorienting our trade flows and foreign economic contacts towards reliable international partners, primarily the BRICS countries,” Putin said in his opening video address to the participants of the virtual BRICS Summit.

In fact, “trade between Russia and the BRICS countries increased by 38% and reached $45 billion in the first three months of the year” this year, the report says. Meanwhile, Russian crude sales to China have hit record numbers during Spring of this year, edging out Saudi Arabia as China’s primary oil supplier.

“Together with BRICS partners, we are developing reliable alternative mechanisms for international settlements,” Putin said.

China is buying more Russian oil than ever, but that doesn't mean that  Putin has total loyalty | Fortune

Putin continued, stating last month: “Contacts between Russian business circles and the business community of the BRICS countries have intensified. For example, negotiations are underway to open Indian chain stores in Russia [and to] increase the share of Chinese cars, equipment and hardware on our market.”

In June, Putin also accused the West of ignoring”the basic principles of [the] market economy” such as free trade. “It undermines business interests on a global scale, negatively affecting the wellbeing of people, in effect, of all countries,” he said.

President Xi echoed Putin’s sentiments, according to a June writeup by Bloomberg:

“Politicizing, instrumentalizing and weaponizing the world economy using a dominant position in the global financial system to wantonly impose sanctions would only hurt others as well as hurting oneself, leaving people around the world suffering. Those who obsess with a position of strength, expand their military alliance, and seek their own security at the expense of others will only fall into a security conundrum.”

Today’s article is not behind a paywall, because I believe its content to be too important – but if you have the means and wish to support my work, I’d love to have you as a subscriber:

The developments obviously further my long held belief that a gold backed global reserve currency is on its way – something I have been writing about for months.

I’m also stunned that nobody seems to care that arguably the largest shift on the global macroeconomic playing field over the last half century may be taking place.

Sure, under the context of the conflict in Ukraine, the news may seem “par for the course” of sorts, which may result in the media and the financial world downplaying it. But put this piece of information out there on its own, without context – that there is a coordinated global challenge taking place to the U.S. dollar – and it would be the biggest news story in decades. Imagine if China and Russia just dropped this out of nowhere? Now, remember that both countries have been working on, and preparing for, this situation for years.

I mean, holy hell, look at Russia’s Treasury holdings as far back as 2018:

Russia's dollar reserves likely shifted to swaps after it dumped Treasuries

As I’ve noted before, Russia was also increasing its holdings of gold over the same period:

And this headline came out in 2020, just months before Russia’s invasaion of Ukraine

Does anyone think it’s a coincidence?

Nikkei wrote at the time:

Dedollarization has been a priority for Russia and China since 2014, when they began expanding economic cooperation following Moscow’s estrangement from the West over its annexation of Crimea. Replacing the dollar in trade settlements became a necessity to sidestep U.S. sanctions against Russia.

Ergo, it seems to me that the BRIC nations understand exactly how precarious of a financial situation the U.S. – and our dollar – is in. Despite the dollar’s recent strengthening, these nations have been in the midst of a multi-decade-long plan to de-dollarize. Even before the Ukraine conflict started, both China and Russia were stockpiling gold and working on denominating transactions outside of the U.S. dollar. It was another “secret” that was out there in the open.

Remember how “insane” this headline was just 6 months ago when I predicted it for the first time?

Everybody told me that it was a stretch. Today, it isn’t so much anymore.

Meanwhile, since the BRIC conference, ties between Russia and China continue to tighten, with Japan even warning this week about the pair’s “strengthening of military ties” – at the same time China has closely scrutinized a planned trip by House Speaker Nancy Pelosi to Taiwan.

Japan said this past week:

“As a result of the current aggression, it is possible that Russia’s national power in the medium- to longterm may decline, and the military balance within the region and military cooperation with China may change.

In the vicinity of Japan, Russia has made moves to strengthen cooperation with China, such as through joint bomber flights and joint warship sails involving the Russian and Chinese militaries, as well as moves to portray such military cooperation as strategic coordination.”

Japan said this alignment between the two countries “must continue to be closely watched in the future.”

While the economic gears turn behind the scenes, China is also becoming incresingly cagey about Taiwan. The country “has sent warplanes into Taiwan’s self-declared air defense zone identification zone many times in recent months,” according to CNN, and recently alluded to the idea of a no-fly zone over Taiwan ahead of a planned visit by Nancy Pelosi.

President Biden commented on Pelosi’s travel plans this week, stating: “The military thinks it’s not a good idea right now. But I don’t know what the status of it is.”

We’re sure Pelosi will wind up going anyway. Remember, this is the same woman who danced her way through Chinatown while Covid was spreading to the U.S., from China, to prove she wasn’t racist.

I can hear her en route to Taiwan now:

“I negotiate million dollar stock trades for breakfast, I’m sure I can handle this Euro trash.”

Hart Bochner interview: Ellis in Die Hard, directing, and more | Den of Geek

QTR’s Fringe Finance

35 Comments on "Russia And China Announce “New Global Reserve Currency”"

  1. Biden’s hairplug on Sat, 23rd Jul 2022 2:56 pm 

    Rightwing “internet generals” explain Ukraine war to folks like Hello:

  2. Hello on Sat, 23rd Jul 2022 5:51 pm 

    >>> Rightwing “internet generals” explain Ukraine war to folks like Hello

    Seriously, Clog. Do you believe this stuff? That’s the same dude that claimed imminent win for Vlad 3 month ago. Nothing the guy predicted came true. And now we’ve got an imminent assassination’s on the table?

  3. Biden’s hairplug on Sat, 23rd Jul 2022 6:06 pm 

    The point to make is that the brunt of the Uki army is in Donbass. Once Kramatorsk falls, the road all the way to the Dnjepr river is open.

  4. Hello on Sun, 24th Jul 2022 7:34 am 

    >>> the point to make is that the brunt of the Uki army is in Donbass

    well yes, it makes sense for the ukrainines to put their fighting force where the enemy is.

    The youtuber claims all the fortifications are in the donbass region and the rest of the country is smooth sailing. That makes me wonder why Vlad didn’t go AROUND the fortifications and take Kiev and roll ’em from behind.

    Answer? Because it didn’t go as planned and all Vlad can hope for now is hanging in there, hoping the russion families loosing their children fighting won’t get sick of the senseless killing all the while some sort of peace is brokered that let’s Vlad safe face. Maybe keeping a small land bridge to Krimea. And if shit goes bad for Vlad, the ukrainins retake Krimea.

  5. Theedrich on Sun, 24th Jul 2022 8:58 am 

    ACTIVE U.S. military are NOW fighting in Ukraine. And they have been for some time.  U.S.- provided HIMARS rocket launchers are being operated not by Ukrainians but by American forces in that theater, according to revelations from Moscow and Kherson.  According to international law, Germany too is now a party to the war.  Both the Washington and its toady, Berlin (along with other European vassals), are concealing this fact from their respective publics.  Ukrainian soldiers are being trained on various U.S. weapons at American and German bases, which makes both countries participants in the conflict.  Part of this was subtly revealed by the 𝕿𝖍𝖊 𝕹𝖊𝖜 𝖄𝖔𝖗𝖐 𝕿𝖎𝖒𝖊𝖘 in May.  The sinking of the Russian flagship “Moscow” has also now been analyzed and shown to have been done by American (NATO) military:  “As a direct consequence of hitting the Moskva, NATO managed to reopen an air corridor for the transfer of aircraft to the airfields of Chernivtsi, Transcarpathian and Ivano-Frankivsk regions.”

    Further, the U.S. infantry and other forces are using the HIMARS and other rocket systems to target residential areas, businesses, markets, health facilities and other significant institutions in Donetsk.  (The U.S. likes to kill civilians.)  The sophisticated satellite targeting system used by the HIMARS and other weaponry are too complex for the Ukrainians;  it is Washington’s uniformed murderers (under the pretense of being free-lance mercennaries who have retired from the military) who are operating them.  The Ukrainians have no satellite systems;  they are all American, as pointed out by Kirill Stremousov, deputy head of the military-civil administration in Kherson.

    “It’s not the Ukrainians who are shooting, the Americans are shooting with ‘highs’ — this is 100%, because there is a complex guidance system through the satellite, which they hit point-by-point.  The button is ordinary and any fool can press, but here you need to work with a complex system. These are American weapons, American satellites — after all, there are no Ukrainian satellites.  So this is the work of the Americans, who dream that this war will be eternal,” Stremousov said.

    Moscow has so far been reluctant to state these facts publicly and internationally, because it has been trying to avoid war with NATO.  But it is coming to the end of its rope.  The maniacs in Washington, who are directing this international crime, are playing with fire, given their dependence on that reluctance in order to “weaken Russia.”  They intend to draw out this war into the indefinite future.

    The result is that there is going to be a massive escalation of the war in August.  America, master of the false flag, will be happy.

    But the results may well wipe the smile off the faces of the Washington warlovers.

  6. Biden’s hairplug on Sun, 24th Jul 2022 10:12 am 

    The US is trying to provoke Russia into attacking NATO outside of Ukraine. Everything hinges on the willingness of China to, indirectly, come to the aid of Russia and open a 2nd front in East-Asia.

    I bet they will, eventually.
    A visit of Pelosi to Taipei would be a great help to “unhinge” China.

    We won’t be bored in the coming years, that’s for certain.

  7. Biden's hairplug on Sun, 24th Jul 2022 11:15 am 

    “Elon Musk ‘had AFFAIR with wife of Google founder Sergey Brin which led to their divorce and end of tech billionaires’ friendship'”

    Jeez, in the old days it would have been the other way around. The gal is jewish herself!

    Whitey is becoming a better predator than Sheeny! And richer too!

    What’s wrong with you folks, apneaman?
    Mighty no more.

    You seem to lose it, lately. You sure you wanna start WW3 under such omen?

  8. Biden's hairplug on Sun, 24th Jul 2022 11:24 am 

    Oops, Nicole Shanahan is apparently Christian, mixed-race, my bad.

  9. makati1 on Sun, 24th Jul 2022 5:40 pm 

    1. This dollar destruction has been ongoing, and is now becoming mainstream. The US is going down and taking the West with it. Few dumbed down Amerikans realize how this will destroy their world. They are already finding out. $10 gas by Christmas, or rationing? Food? Who knows?

    2. Russia is winning in the Ukraine and has been since day one. All the West can do is deplete their obsolete weapons piles and go deeper into debt until they implode. Coming soon, I think.

    3. China may not do anything until it is obvious that the US/West is brought to it’s knees financially and socially. Not a long wait as it seems.

    4. If you have not prepared for the coming events, it may be too late. Pass the popcorn.

  10. makati1 on Sun, 24th Jul 2022 6:24 pm 

    As I have been saying: “How the US is Killing its Principal Competitor – the EU.”

    “…the Ukrainian crisis, generated by Washington by bringing to power in Kyiv a manifestly Nazi regime, the US demands the European Union to impose numerous anti-Russian sanctions. Washington is far less affected by these sanctions as compared to its European partners, as the US is lenient to itself and tries not to be active in those spheres where its own economy may be seriously affected. Europeans especially suffer from such policy pursued by Washington in order to weaken the European Union as its competitor…”

    Exciting events unfolding. Pass the San Mig lite and the pretzels.

  11. Duncan Idaho on Mon, 25th Jul 2022 10:07 am 

    Lament of a Chickenhawk: Trump Complains That He Couldn’t Give Himself the Congressional Medal of Honor: “They Wouldn’t Let Me Do It”

  12. Duncan Idaho on Mon, 25th Jul 2022 10:52 am 

    “They don’t give a shit about the poor. As Liz Cheney is at last admitting, they don’t give a shit about Trump, either, so long as they’ve got their tax cuts and their millions and billions and they can keep the minimum wage at $7.25 an hour and maintain their control over red-state governments. Trump was just a hireling. He strayed off the reservation, and they grew tired of his gross lack of taste and slovenly appearance. So they’re serving up a few schmucks with smug grins on their faces to tell us what a bad guy they suddenly discovered he is, after his usefulness to them came to an end.

    It’s a con job. Don’t believe a word of it. They’re just ridding themselves of a cancer they accidentally found growing on one of their legs so they can continue stomping on poor people and women and gay people and anybody they don’t like and ensuring we stay in our place. They’re Republicans. It’s what they do.”

  13. Dredd on Mon, 25th Jul 2022 10:55 am 

    Everything is broking down into the quantum (Quantum Biology – 11)

  14. Biden's hairplug on Mon, 25th Jul 2022 4:01 pm 

    What do you think, Duncan? Should we in Europe begin to worry about America?

    “Nearly one in three Americans say it may soon be necessary to take up arms against the government”

    You will join in, Duncan?

  15. makati1 on Tue, 26th Jul 2022 4:52 pm 

    I would highly recommend that you take 10 minutes and read this article by one of my favorite authors.

    The author, Gordon Duff is a Marine combat veteran of the Vietnam War that has worked on veterans and POW issues for decades and consulted with governments challenged by security issues. He’s a senior editor and chairman of the board of Veterans Today, especially for the online magazine “New Eastern Outlook”.

  16. Duncan Idaho on Tue, 26th Jul 2022 8:31 pm 

    “Daddy, why is it so cold in our house?”
    “Because we have imposed sanctions.”
    “To make it bad for Russians.”
    “Daddy, are we Russians?”

    The author, Gordon Duff is a Marine combat veteran of the Vietnam War

    A loser? We lost that one big time.
    But I’m using my analysis– My experience is that Marines are clueless idiots.

  17. Biden's hairplug on Wed, 27th Jul 2022 4:12 am 

    Is this the Big One?

    Internal US battle about intended Pelosi travel to Taiwan. Biden is against, Pelosi and jingoistic Republicans in favor.

    Some Europeans and Russians are in favor too, but their motives aren’t exactly pure.

    The Chinese will be tempted to intercept her Boeing and make it go back or force it to land in mainland China, causing a major affront.

    I have a feeling that we in Europe could be liberated from the US mill stone soon.

  18. FamousDrScanlon on Wed, 27th Jul 2022 1:27 pm 

    clog, after the Americans go home how long will it take you Euro-Tards to resume slaughtering each other?

  19. when it comes to 911 i dont care about elite whitey supertard judy wood who is controlled opposition elite whitey supertard prof steven jones found elemental composition of thermate at WTC compound and thats conclusive to me on Wed, 27th Jul 2022 3:41 pm 

    it’s basic tard science. chemical reactions don’t destroy elemental compositions, only nukular reactions do that

    elite whitey supertard prof steven jones was forced to retire cuz he knows science. he found elemental composition of thermate at the WTC compound

    I appoint elite supertard FamousDrScanlon supertard double plus plus
    His title is “the lover” (of supremacist muzzies)

    please feel at ease among friends, we’re all lovers of supremacist muzzies here

  20. Biden’s hairplug on Wed, 27th Jul 2022 4:12 pm 

    “after the Americans go home how long will it take you Euro-Tards to resume slaughtering each other?“

    These European battles of the past took place in an environment, where only Europeans mattered. They could rule the world even as a set of competing nations.

    Things have thoroughly changed. I trust the existence of a new #1, China, will have a disciplining effect and the EU will hold.

    The only real danger for European civiliation is England. If necessary, we’ll deal with them.

    Btw: is it true that the justice department intends to go after Trump? That would hasten CW2 considerably.

  21. Biden’s hairplug on Wed, 27th Jul 2022 4:33 pm 

    “US Attorney General hints at prosecuting Trump over Capitol riot“

    You can bet now, what will happen first:

    1. the PLA intercepts Pelosi’s Boeing and forces it to return or land in mainland China
    2. The US destabilizes because Trump is prosecuted, the icon of white America..

    Interesting times

  22. makati1 on Wed, 27th Jul 2022 4:42 pm 

    Cloggie lives in a different world than the rest of us. Nuff said.

  23. Duncan Idaho on Wed, 27th Jul 2022 9:02 pm 

    Trump joins Aaron Burr and Jefferson Davis as Former High Office-Holder Investigated for Sedition

    The Fat Boy does have some history.
    If he wasn’t so stupid, this could get interesting.
    True, he does know how to rip people off.

  24. makati1 on Thu, 28th Jul 2022 5:02 pm 

    Duncan, I don’t think Trump is stupid. You don’t get to be a billionaire by being stupid or the world would be full of them.

    I agree with most of his ideas. The Deep State had to get rid of him to activate their plans and he was in the way. Think Lincoln, Kennedy, Qaddafi, Saddam, etc. He got lucky and walked away to try agaain.

    Close the border. Quit the corrupted UN. Quit NATO and pull the troops back into the 50 states. Get the Coast Guard guarding the US coasts, not supporting military adventures in Asia. Bring the National Guard back to guard the borders, etc.

    If I voted, I would likely vote for him, if he runs. But, I do not vote. There has not been a qualified person running for president in decades.

  25. Duncan Idaho on Thu, 28th Jul 2022 5:58 pm 

    Scientists establish link between religious fundamentalism and brain damage

    (lets not put down the brain damaged by comparing them to religious freaks)

  26. Duncan Idaho on Thu, 28th Jul 2022 6:16 pm 

    To be fair to Trump, 66.7% of his wives left him, 100% of his casinos have been bankrupted, 100% of his universities and charities were shut down, and over 50% of his other businesses have failed.
    But to be fair, he is good at ripping people off.
    Daddy gave him 500 million, but things didn’t work out well.
    He is good at ripping stupid repugs- let’s be fair.

  27. makati1 on Thu, 28th Jul 2022 6:37 pm 

    Fair? Have you ever had $3,000,000,000.00 to play with, his current net worth according to Forbes? He didn’t have the government backing him like so many current billionaires do. They would not exist without government subsidies and tax breaks. Prove me wrong.

  28. Duncan Idaho on Thu, 28th Jul 2022 8:21 pm 


    Never been a dim or repug.

  29. FamousDrScanlon on Fri, 29th Jul 2022 1:36 pm 

    clog the end is near.

    ‘Welcome to Empire?’: San Bernardino County urged to secede from California

    Real estate developer Jeff Burum envisions a new state, Empire

    “They’re not serious about the issues,” he said after the meeting. “They’re not trying to change anything. They’re just playing politics, trying to look good, sound good, so they can get reelected.”

    Frustrated by the obstacles to getting houses built in particular, Burum said he wanted to do something.

    “I don’t like to be one of these guys who sit around on a country club patio and complain about the way things are, unless you want to do something about it,” he said.

    And “doing something,” in this case, means washing his hands of the Golden State, which he says treats inland California “like a slum,” putting prisons in the region but not, say, the infrastructure needed to build more houses.

    “I think that California has become so large that it’s impractical to save the entire state. We’re the highest tax state in the entire union,” Burum said. “You’d think that, with that, we’d have the highest level of services, but we don’t.”

    If voters in San Bernardino County go for the proposed ballot measure, Burum thinks more might join them.

  30. ststich100 on Fri, 29th Jul 2022 4:04 pm 

    hey what a terrific put up i have come upon and believe me i have been looking for for this comparable kind of post for past per week and rarely came throughout this. Thanks very an awful lot and will search for greater postings from you. very informative publish

  31. Duncan Idaho on Fri, 29th Jul 2022 6:39 pm 

    San Bernardino County urged to secede from California
    Great idea!
    Maybe Texas, Mississippi, or Florida?
    It’s a huge county, and might increase the IQ of the above States.
    But not much.

    Pretty scary!

  32. when it comes to 911 i dont care about elite whitey supertard judy wood its controlled opposition elite whitey supertard prof steven jones found elemental composition of thermate at WTC compound and thats conclusive to me on Fri, 29th Jul 2022 10:14 pm 

    it’s basic tard science.
    chemical reactions don’t destroy elemental compositions, only nukular reactions do that

    elite whitey supertard prof steven jones was forced to retire cuz he knows science

    supertards, Please change ur undies at least once a week

    please feel at ease among friends, we’re all lovers of supremacist muzzies here

  33. Kadan on Sun, 7th Aug 2022 12:22 pm 

    This sends chill in my spine. Really scary news. I don’t know how they even came up with this idea, the two bullies joined forces. I’m out of words.

    Red Deer Heat Pumps

  34. Asshole sniffer III of New York on Sat, 13th Aug 2022 11:37 am 

    The evil frog Constantine plots against Kermit and all of us !!!

    The freedom of the not so free world is at stake!!

    Yikes ! Scooobeeeey!

  35. Flubba your muva on Sat, 13th Aug 2022 11:39 am 

    Flubadub dub bubbaflub club!

    Flubadub flubadub dub dub!!

    Peak oil is here !

    Bend over comrades!

Leave a Reply

Your email address will not be published. Required fields are marked *