The Economic Collapse – by Michael Snyder
The Russians are actually making a move against the petrodollar. It appears that they are quite serious about their de-dollarization strategy. The largest natural gas producer on the planet, Gazprom, has signed agreements with some of their biggest customers to switch payments for natural gas from U.S. dollars to euros. And Gazprom would have never done this without the full approval of the Russian government, because the Russian government holds a majority stake in Gazprom. There hasn’t been a word about this from the big mainstream news networks in the United States, but this is huge. When you are talking about Gazprom, you are talking about a company that is absolutely massive. It is one of the largest companies in the entire world and it makes up 8 percent of Russian GDP all by itself. It holds 18 percent of the natural gas reserves of the entire planet, and it is also a very large oil producer. So for Gazprom to make a move like this is extremely significant.
When Barack Obama decided to slap some meaningless economic sanctions on Russia a while back, he probably figured that the world would forget about them after a few news cycles.
But the Russians do not forget, and they certainly do not forgive.
At this point the Russians are turning their back on the United States, and that includes the U.S. dollar.
What you are about to read is absolutely stunning, and yet you have not heard about it from any major U.S. news source. But what Gazprom is now doing has the potential to really shake up the global financial landscape. The following is an excerpt from a news report by the ITAR-TASS news agency…
Gazprom Neft had signed additional agreements with consumers on a possible switch from dollars to euros for payments under contracts, the oil company’s head Alexander Dyukov told a press conference.
“Additional agreements of Gazprom Neft on the possibility to switch contracts from dollars to euros are signed. With Belarus, payments in roubles are agreed on,” he said.
Dyukov said nine of ten consumers had agreed to switch to euros.
And Gazprom is not the only big company in Russia that is moving away from the U.S. dollar.
According to RT, other large Russian corporations are moving to other currencies as well…
Russia will start settling more contracts in Asian currencies, especially the yuan, in order to lessen its dependence on the dollar market, and because of Western-led sanctions that could freeze funds at any moment.
“Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies, and to set up accounts in Asian locations,” Pavel Teplukhin, head of Deutsche Bank in Russia, told the Financial Times, which was published in an article on Sunday.
Diversifying trade accounts from dollars to the Chinese yuan and other Asian currencies such as the Hong Kong dollar and Singapore dollar has been a part of Russia’s pivot towards Asian as tension with Europe and the US remain strained over Russia’s action in Ukraine.
And according to Zero Hedge, “expanding the use of non-dollar currencies” is one of the main things that major Russian banks are working on right now…
Andrei Kostin, chief executive of state bank VTB, said that expanding the use of non-dollar currencies was one of the bank’s “main tasks”. “Given the extent of our bilateral trade with China, developing the use of settlements in roubles and yuan [renminbi] is a priority on the agenda, and so we are working on it now,” he told Russia’s President Vladimir Putin during a briefing. “Since May, we have been carrying out this work.”
“There is nothing wrong with Russia trying to reduce its dependency on the dollar, actually it is an entirely reasonable thing to do,” said the Russia head of another large European bank. He added that Russia’s large exposure to the dollar subjects it to more market volatility in times of crisis. “There is no reason why you have to settle trade you do with Japan in dollars,” he said.
The entire country is undergoing a major financial conversion.
This is just staggering.
Meanwhile, Russians have been pulling money out of U.S. banks at an unprecedented pace…
So in March, without waiting for the sanction spiral to kick in, Russians yanked their moolah out of US banks. Deposits by Russians in US banks suddenly plunged from $21.6 billion to $8.4 billion. They yanked out 61% of their deposits in just one month! They’d learned their lesson in Cyprus the hard way: get your money out while you still can before it gets confiscated.
For those that don’t think that all of this could hurt the U.S. economy or the U.S. financial system, you really need to go back and read my previous article entitled “De-Dollarization: Russia Is On The Verge Of Dealing A Massive Blow To The Petrodollar“. The truth is that the U.S. economic system is extremely dependent on the financial behavior of the rest of the globe.
Because nearly everyone else around the rest of the planet uses our currency to trade with one another, that keeps the value of the U.S. dollar artificially high and it keeps our borrowing costs artificially low.
As Russia abandons the U.S. dollar that will hurt, but if other nations start following suit that could eventually cause a financial avalanche.
What we are witnessing right now is just a turning point.
The effects won’t be felt right away. So don’t expect this to cause financial disaster next week or next month.
But this is definitely another element in the “perfect storm” that is starting to brew for the U.S. economy.
Yes, we have been living in a temporary bubble of false stability for a few years. However, the long-term outlook has not gotten any better. In fact, the long-term trends that are destroying our economic and financial foundations just continue to get even worse.
So enjoy the “good times” while you still can.
They certainly will not last too much longer.
11 thoughts on “Russia Is Doing It – Russia Is Actually Abandoning The Dollar”
yep — this is significant, but we all knew it was coming. Not mentioned here is that Japan and France are joining the BRICS nations in subverting the dollar too, so this Gazprom arrangement isn’t even the end of it.
I also heard somewhere (tactical report?) that Saudis are considering selling their oil in other currencies too. Looks like a global movement to sink the dollar is underway.
I heard about the saudi’s, too… late last nite
Thanks JENO — nice to get some confirmation on that.
Yeah,.. that was on the Tactical Report I mentioned the Saudi Rumor.
Normally I don’t mention those kinds of unsupported financial news rumors, but I have seen it mentioned in several sources now, in addition,.. it would be a logical move for Saudi, as its largest customer is China,.. not the US,.. and we already know where China’s sympathies lie.
Although it is suggested that Putin is merely playing his role in the NWO right now,.. I’m still reluctant to fully jump on board with that for one simple reason,.. Putin does NOT need the NWO in any way, shape or form,.. in fact its the opposite,.. the NWO (International Banksters) DESPERATELY needs Putin,.. and Russian resources,.. and there is NOTHING on earth or in heaven that the International Banksters (NWO) could possibly offer Putin to entice his alliance to their agenda,.. nothing whatsoever,… so why would Putin have any measure of loyality to them?
Ans: He wouldn’t. All megalomanics prefer the solitude of their own avarice and consultation,.. he is certainly NOT going to do the bidding of the likes of the Rockefellas, Soros, Brzezinski, Warburgs, Rothchilds or any of the other inner circle elites.
They have your mindset right to their plan, your a pawn in the game. Read “The Red Fog over America” by William Guy Carr, to discover the rest of the plan.
I just finished the book Henry sent by Carr, “Pawns In The Game”.
I don’t think I fully agree with everything he wrote in it, as he never dicloses how he, as an outsider, would have obtained some of those salacious details,.. but none the less,.. I do feel that most of what he suggests seems the better explanation for what was observed in his time ( He died in 1959 I think it was),… and ours.
In regard to your comment: “They have your mindset right to their plan, your a pawn in the game.”
I’m not sure what you mean.
If me suggesting that Putin is acting on his own accords, rather than co-operatively with the Banksters,… this is not by their design,.. but rather from the simple of point of control they would need to exert over Putin.
The Internationalists simple do not have the points of leverage they hold over most others, from Merkel,.. to Reid,… right upto the Pope.
Putin has his own assassination force,.. and if they wanted to try and take him out,… they had better do it on the first shot, because that is all they will get, then Putin would pay them in spades.
They can’t touch him financially (he has Billions), they can’t touch him politically (he outlawed their main mechanism for that,.. the NGO’s),.. they can’t touch militarily,…. he has one of the biggest military’s at his beck and call,.. and he has the second to largest nuclear stock pile on the planet!
Why would Putin co-operate with them,.. when he has absolutely no reason to take orders from the top tier NWO leaders?,.. nor is their anything in heaven or earth that they could offer him, that he doesn’t already have.
No,.. Putin walks to his own beat,… has all the money, women, power, military force, nuclear force, political support, vast territory, vast material resources, vast human resources,… all at his complete disposal.
He doesn’t need the International Banksters NWO),.. they, need him.
So if your suggesting that there is a fake source of tension between Putin and the Banksters,… I’m not sure how you can justify that when their is no basis for Putin,… or his ego,.. to play second fiddle to a bunch of pyschopathic homosexuals that hide behind other people,.. but are still actuall in control of Putin.
If,.. this is what your suggesting.
Thx – JD
Quit teasing me !!! W/ all the suffering going on in this country , let`s get this party started !!!
Could be the dollar has to collapse first…
My late dad predicted this when Nixon took the dollar off the gold standard in 1971…just like he told me in 1969 that the Federal Reserve was privately owned (he worked as a foreign exchange trader for Bankers Trust)…just like he scolded me for even suggesting Israel couldn’t have attacked the USS Liberty in 1967…just like he told me when I was 11 that he was voting for Goldwater because LBJ was part of the JFK assassination plot…
I will ever be grateful to my dad for trying to wake me up in the 60s and 70s…now that I am awake.
I wish my Dad had been able to think outside the box like that. Too bad. I’m sure he thought I was bat$hit crazy before he died.
Now we know what Putin was saying to Ocommie in the video of their last meeting; Paybacks are a bitch.