Russia Holds "De-Dollarization Meeting": China, Iran Willing To Drop USD From Bilateral Trade

As an American I hope are folks know what they are doing, the petrodollar system allows for a ever increasing demand for dollars, this allows our dollar to be the world reserve currency without a gold back. Without the increasing demand for dollars and our FEDs massive money printing, we will not be able to export our inflation and we could see serious currency problems, up to and including hyperinflation. Twenty first century geopolitics with nuclear powers is not about the size of your aircraft carriers, but the size of your bank account minus your debt.  Remember Putin just wrote a fifty billion dollar check on some olympic games, here state side we would have to argue about shutting down the government or raise taxes to cover that expense. Can we afford to mess with Russia isn't this what Reagan did to them as part of the Soviet Union . - Gary 

Zerohedge.com

That Russia has been pushing for trade arrangements that minimize the participation (and influence) of the US dollar ever since the onset of the Ukraine crisis (and before) is no secret: this has been covered extensively on these pages before (see Gazprom Prepares "Symbolic" Bond Issue In Chinese Yuan; Petrodollar Alert: Putin Prepares To Announce "Holy Grail" Gas Deal With China; Russia And China About To Sign "Holy Grail" Gas Deal; 40 Central Banks Are Betting This Will Be The Next Reserve Currency; From the Petrodollar to the Gas-o-yuan and so on).

But until now much of this was in the realm of hearsay and general wishful thinking. After all, surely it is "ridiculous" that a country can seriously contemplate to exist outside the ideological and religious confines of the Petrodollar... because if one can do it, all can do it, and next thing you know the US has hyperinflation, social collapse, civil war and all those other features prominently featured in other socialist banana republics like Venezuela which alas do not have a global reserve currency to kick around.

Or so the Keynesian economists, aka tenured priests of said Petrodollar religion, would demand that the world believe.

However, as much as it may trouble the statists to read, Russia is actively pushing on with plans to put the US dollar in the rearview mirror and replace it with a dollar-free system. Or, as it is called in Russia, a "de-dollarized" world.

Voice of Russia reports citing Russian press sources that the country's Ministry of Finance is ready to greenlight a plan to radically increase the role of the Russian ruble in export operations while reducing the share of dollar-denominated transactions. Governmental sources believe that the Russian banking sector is "ready to handle the increased number of ruble-denominated transactions".

According to the Prime news agency, on April 24th the government organized a special meeting dedicated to finding a solution for getting rid of the US dollar in Russian export operations. Top level experts from the energy sector, banks and governmental agencies were summoned and a number of measures were proposed as a response for American sanctions against Russia.


Well, if the west wanted Russia's response to ever escalating sanctions against the country, it is about to get it.

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