Death Of The Dollar: The Countdown Has Begun

By Zine Larbaoui

The events shaking the Ukraine since February 2014, point to a frontal opposition between the European Union and the United States on one side, and Russia on the other. Putin’s wishes to establish a free trade zone between Lisbon and the Pacific – proposal of January 28, 2014 – have raised the ire of Anglo-Saxons. Indeed, the Russian ambition would negate a transatlantic market project dear to London and Washington.

Events in Kiev that started from Maidan square, have now created a gulf between the Russian world and the Euro-Atlantic bloc. Ukraine is at the crossroads of rivalry between these two worlds, they are engaged in a struggle where sanctions are exchanged on both sides. For the West, it is easy to announce coercive measures – such as the exclusion of Russia from the G8 now becoming G7 – Oblivious, however, that the retaliation of the Russian world in conjunction with Beijing may have devastating consequences.

The United States, a pillar of the Western world, is suffocating under the burden of debt. The dollar, real world currency exchange, is increasingly questioned by many countries, which ultimately threatens the credibility of the currency. Nearly 6,000 billion of Treasury bonds are held throughout the world. China and Russia hold about 23% of these, respectively $1,272.1 billions and $100.4 billions (March 2014). To this we must add that the dollar is the medium of exchange for commodities, especially oil and gas. The refusal to use the dollar may be costly to recalcitrant countries. Saddam Hussein’s Iraq knows something about it. However, it is the policy pursued by Putin in association with China, to get rid of the dollar in their trade, which took shape in February / March 2014. U.S. oligarchs seem prepared for this revolution, or are even be the initiators.

Indeed, a real message for insiders was issued in the Washington Times, October 25, 2012, from the pen of one of the system’s foremost authority, Grady Means (economist at the service of Nelson Rockefeller). Recalling that the strength of the dollar holds only by its use in the world, and finding a growing disengagement from many countries with regard to the currency, the oligarch announced a collapse of the U.S. economy for March 4, 2014. Despite that this event did not materialize on the date predicted, it is clear that the collapse of the dollar and the Western financial system process strangely started after the events of the Maidan square in February 2014.

Indeed, under the aegis of the Russian Government, the Deputy Prime Minister Igor Shuvalov chaired on April 24, a meeting in connection with the Minister of Finance, Alexei Moiseev, on the topic of getting rid of the dollar in Russian exports. The “De-dollarization” was the watchword of this meeting. Since then, the policy has accelerated with the signing of a gas mega-contract valued at $ 400 billion, 20 May 2014, between Russia and China. Moreover, representatives of the two countries pledged to use their respective currencies in this commercial exchange. A policy strengthened at the same time, with agreements signed between the second Russian bank VTB and Bank of China. Both partners showed their intentions to increase their trade in rubles and yuan.

To this must be added the creation of a Russian-Chinese credit rating agency. In addition to such a burst of measures against Western sanctions, the “Eurasian Economic Union” was created on May 29, 2014, bringing together Russia, Belarus and Kazakhstan. This block, a prelude in the words of Putin to the “Supranational Eurasian Union” must fit within the framework of global governance in which the financiers of each block can fiercely defend their share of the pie.

Finally, note that Gazprom has signed on 6 June a series of agreements with the opportunity to bypass the dollar in favor of the euro. At the same time, Russia announced its intention to “De-Dollarize” even more by trading with Asian countries in their respective currencies.

Faced with such an avalanche of Russian and Chinese measures, we can conclude that the countdown leading to the killing of “king dollar” was launched.

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