Russia is ready to consider using the Russian and Chinese national currencies instead of the dollar in bilateral oil and gas dealings, Prime Minister Vladimir Putin said on Wednesday…
The Russian prime minister said the issue would be addressed among others at a meeting of Shanghai Cooperation Organization (SCO) finance ministers, who are to convene before the end of the year in Kazakhstan.
Britain’s Independent newspaper reported last Tuesday that Russian officials had held “secret meetings” with Arab states, China and France on ending the use of the U.S. dollar in international oil trade.
The move was not the first by a foreign industrialized country to discuss ditching the dollar. In March, the governor of China’s central bank, Zhou Xiaochuan, suggested using the International Monetary Fund’s Special Drawing Rights to supplant the greenback.
China’s central bank governor has issued a bold proposal to overhaul the global monetary system and one day replace the dollar as the world’s main reserve currency with the International Monetary Fund’s (IMF) Special Drawing Rights.
Zhou Xiaochuan, governor of the People’s Bank of China, argued that what he called a super-sovereign reserve currency would not only eliminate the risks inherent in currencies such as the dollar, which are backed only by the credit of the issuing country and not by gold or silver, but would also make it possible to manage global liquidity.
Shockingly, US Treasury Secretary Tim Geithner expressed support for the proposal.
Geithner, at the Council on Foreign Relations, said the U.S. is “open” to a headline-grabbing proposal by the governor of the China’s central bank, which was widely reported as being a call for a new global currency to replace the dollar…
[Zhou Xiaochuan is] a very thoughtful, very careful distinguished central banker. I generally find him sensible on every issue,” Geithner said, saying that however his interpretation of the proposal was to increase the use of International Monetary Fund’s special drawing rights…
The continued use of the dollar as a reserve currency, he added, “depends… on how effective we are in the United States.”
The statement alone sent the value of the dollar tumbling.
The U.S. dollar fell against major currencies after U.S. Treasury Secretary Timothy Geithner said he was open to expanding the use of the International Monetary Fund’s special drawing rights.
Investors initially interpreted his remarks as an endorsement of China’s proposal on Monday to eventually replace the dollar as the world’s reserve currency by the IMF’s SDRs.
Liberal Democrats have made backroom deals pledging hundreds of billions in US taxpayer dollars to prop up the International Monetary Fund as our own currency nosedives. $100 billion for the fund was slipped into a defense spending bill earlier this year, after Geithner promised at the April G-20 meeting in London to provide up to half a trillion dollars.
Geithner welcomed contributions made so far but stressed that “significant progress (on getting the additional 500 billion US dollars) … must be an important outcome of these meetings.”
President Barack Obama’s administration, he said, has made a commitment to seek Congressional approval for 100 billion US dollars and he urged other member states “to consider substantial additional contributions.”
The US and other developed countries also pledged at the G-20 summit to sell hundreds of tons of gold, which had been used to support national currencies, to raise funds for poorer nations.
Leaders from the Group of 20 nations Thursday endorsed the International Monetary Fund’s plan to sell 403 tons of gold to raise funds to support the world’s poorest countries…
Most of the IMF’s gold holdings come from the fund’s member countries, which are required to commit 25% of their quota in gold.
Worse still, the US is appeasing foreign marxist nations such as Brazil and China by handing over an increasing share of voting rights and the power to conduct a ‘peer review’ over the American economy.
The Group of 20 nations is close to an agreement that would require members to subject their economic policies to a type of “peer review,” according to several senior G-20 officials, in a shift that would expose the U.S. and China to broad scrutiny of the way they run their economies…
The initiative was pressed by U.S. President Barack Obama, but it satisfied the demands on Brazil, China, India and other large developing countries.
Author Jerome Corsi believes that the dealmaking is a deliberate effort to usurp economic control from the US and redistribute our wealth to the world’s poor in a ‘global new deal’.
We had a new deal under Franklin Roosevelt, which was redistribution of wealth in the United States, creating all these massive social welfare programs. Now it’s internationally going on where groups like the U.N., other groups, the World Bank, the International Monetary Fund. They want to redistribute U.S. wealth to the world…
And the whole issue is that if the International Monetary Fund is going to — or the United Nations or the World Bank say we’ve got to have more voting control from the third world. We’ve got to level the U.S. economy. We’ve got to make sure the U.S. plays by these international rules when — every time the president goes to these G-20 meetings…
And this attack is going on. Now even the Obama administration has endorsed the plan to use the International Monetary Funds special drawing rights as an alternative to the dollar in international trade.
China has advanced this plan. Russia has advanced it. And President Obama at the G-20 meeting in London in April signed the agreements that we are going to put $250 billions into the special drawing rights of the International Monetary Fund.
Hannity – Jerome Corsi interview on ‘America for Sale’