The biggest and most scariest news this week went unnoticed so far in the NZ mainstream media again. On 24 November China and Russia announced that they would “Quit” the dollar in favour of their domestic currencies.
While they emphasised that the agreement is not meant as a challenge to the dollar it will obviously threaten the status of the dollar as the worlds reserve currency and with that the role of the US as the worlds only empire.
The announcement should be big news as China is the worlds second biggest economy and is holding fast amounts US dollars. So if they prefer to deal with their own currency and that of Russia rouble they effectively undermine their own dollar holdings.
The only reason for doing so is that they are losing their faith in the ability of the US to pay their debt and the value of the dollar itself.
Added to that the Chinese are investing huge amounts of money (the US dollar no doubt) in gold