non dollar trading

Discussion in 'Current Affairs, News and Analysis' started by Grumblegrunt, Nov 23, 2010.

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  1. Grumblegrunt

    Grumblegrunt LE Book Reviewer

    interesting that russia and china have decided to trade goods in each others currencies. as seen on russia today.

    Part of the desire to move away from the dollar in the same way iran and libya trade in euros I reckon. Cant blame them either as the US is trying to devalue its currency, apparently forgetting the fact that its the world which owns its 14 trillion of debt and it doesnt want to see itself in negative returns.
     
  2. Old news mate, countries on the US shit list had to do that for ages, Venezuela and Iran (all but two) have been flogging oil in Euros for donkeys years!
     
  3. In some circles, quantitative easing is viewed as a form of currency manipulation and you could almost think the yanks were deliberately trying to discourage people from lending to them by printing money is such quantities as they recently have. Perhaps they've finally realised they're going to have to wean themselves off of other people's money before they can begin to sort their economy out?
     
  4. I think that's giving them too much credit. You've got a fully paid-up Keynesian in the White House and a fully paid-up Keynesian in the Fed. Given this, what else were they going to do?
     
  5. Grumblegrunt

    Grumblegrunt LE Book Reviewer

    yes they have been trading in euros for a while now but the euro isnt performing as an international currency standard now its realised that its nowhere near as powerfull as the mark used to be, the difference is that they are publically declaring it and fixing a trading mechanism which could exclude the markets from interfering. another poke in the eye for quantative easing.

    if countries deem it viable to trade in an old currency standard to devalue their own euro standard then they may do so. allmost back to the days of bartering I guess. so in the spirit of things I have a new mp3 player if anyone would like to give me a chicken for it!
     
  6. It's perfectly possible to do both: spending large amounts of your own public money is still Keynesian.
     
  7. But they don't have any of their own money any more, so your point (while technically correct) is moot.
     
  8. If you're saying the US economy isn't functioning anymore that's clearly not the case as it's still the largest by far generating the largest GDP per capita by far. It may be in trouble but it's not flatlining.