And now that China has become center stage for U.S. economic and terrorist aggression, Russia is returning the favor by going straight at the heart of Washington hegemony and calling for an end to dollar use in Eurasian countries within the CIS.
On Aug. 31, Russian President Vladimir Putin increased global tensions against the United States by doing two acts that threaten the national security of America's foreign and economic policies. Beginning in the Middle East, Putin sent arms and advisers in support of Syrian leader Bashir Assad against the Western backed terrorist groups of Al Qaeda and ISIS. Then just this morning on Sep. 1, the Russian President introduced legislation that would ban the use of the dollar within CIS economies that function within the Eurasian sphere of influence.
These new and sudden acts of aggression by Russiacome one day after China experienced their third mysterious attack on their ports and mainland in just the past 10 days, sparking a potential retaliation to what appears to be military or covert terrorist acts in response to China's dumping of U.S. Treasuries, and devaluation of their RMB currency. And with the world rushing headlong into global recession entering into the month of September, the ground is being set for the two year proxy war that has centered around economic sanctions to expand into direct confrontation. - Examiner
Yet this wasn't the only new move by Russia, and in fact, what might take place could be far more significant than the siphoning off of lessor Eurasian countries from using the dollar in global trade. As economic sanctions continue well into their second year, Japan is seeking to enlarge its currency swaps with the Rouble as trade has become much more difficult between the two economies because of these sanctions and through the dollar reserve system.
Japan Bank for International Cooperation (JBIC) is turning to currency swaps as using the US dollar in transactions is difficult because of the Western anti-Russia sanctions, the bank’s senior managing director said answering a question from Sputnik.
"We’re now studying that [the effects of ruble devaluation]. We need some of the swap arrangements with the local banks. We are elaborating opportunities with Russian banks such as Gazprombank, VTB, VEB… Because of the US sanctions, we cannot use the US dollar anymore, we have to switch to other currencies," Tadashi Maeda said on Thursday, speaking after a conference at the Eastern Economic Forum (EEF) in the Russian city of Vladivostok. - Sputnik News
Yet reliance only on the dollar is expected to change shortly as China is prepared to bring online their own parallel SWIFT system within the next 15-60 days, creating an alternative for nations to divest their dollar reserves and open the door for more direct bi-lateral trading, or at the very least, use of the Yuan as a medium for trade instead of the dollar.
What is also of interest, and something all Rogue Money members should pay close attention to going into the Labor Day weekend, is news that may come from Saudi Arabia's visit to the White House right now after spending time in Moscow during the MAKS airshow last week. OPEC is at a crossroads, and could decide the fate of the dollar if they choose to accept a future agreement with Russia to begin accepting payments for oil in currencies other than the dollar. And when you include China's saber rattling going on off the coast of Alaska at the very same time President Obama was visiting the Great White North, the conflict that had once been relegated to covert financial and cyber stratagems is now playing itself in the mainstream, and the stakes could now never be higher.