Russian President Dmitry Medvedev pulls new currency from his pocket

[TwixVoy]

http://www.telegraph.co.uk/finance/currency/5796892/Russian-President-Dmitry-Medvedev-pulls-new-world-currency-from-his-pocket.html

(on edit: and before anyone says "conspiracy" this is being reported in the MSM in the EU, as I have linked to, including pictures of the Russian president showing it off)

Folks, this is it. This happened yesterday. I am NOT surprised the media was talking about Michael Jackson and not this. Russia and China have been meeting frequently the past few months and have been discussing ways to dump the dollar. (the United States is NOT even being invited to participate in these meetings, for obvious reasons)

At the G8 summit the Russian president showed one of the new coins for the currency they are proposing to create to replace the dollar.

THIS CURRENCY IS BEING MINTED RIGHT NOW. They are not minting it for fun folks, they are minting it because they have decided to go ahead with this plan and have given the direction to start producing it.

As it stands now our powerful dollar allows us to import goods (and borrow/print money to pay for said goods). Many other nations who now have MUCH more powerful manufacturing capacity than we do (i.e. China) are tired of producing and letting us consume all those goods ON CREDIT TO THEM which they now realize we will never be able to pay back. We also produce not a damn thing in comparison. We are like the 25 year old who won't get a job and lives at home doing nothing but consuming the parents cash.

And that 25 year old is about to be kicked out on the street. The middle class is dead folks. Once the dollar loses its status and we can no longer import everything we need (on credit) and then allow "the people" to buy said goods (on credit) we are going to be in for a world of hurt.

The one nice thing is this new currency has some style. Pretty damn nice to look at.


From the article

"The possibility of a supranational currency “concerns everyone now, even the mints,” Mr Medvedev said. The test coin “means they’re getting ready. I think it’s a good sign that we understand how interdependent we are.”

Russia, alongside China and India, have all questioned the dollar's future as a global reserve currency - a status it has enjoyed since inheriting it from sterling last century.

China's central bank earlier this year laid out an alternative to the dollar in the form of a special international reserve currency administered by the International Monetary Fund. However, most experts it to take years for the dollar to be eclipsed. "

http://pics.livejournal.com/a_kolesnichenko/pic/00021ace

[rcrush]

1. He can do ahead and stick that right back up his ass.

[TwixVoy]

2. Nice attitude

problem is it won't stop them from doing it. You, me, and every common person in the United States are now irrelevant.

[rcrush]

3. Sounds like business as usual

[TwixVoy]

4. You have no clue what is coming

business as usual is being able to have Wal-mart, Target, et al import all your goods for you. The NEW business as usual is going to be living a very, very, poor life the likes of which you obviously have no understanding of.

Before I left Target we got a memo from HQ to all store management that basically said "We are going to redesign the structure of the check out lanes in the next 2 years to better support a consumer that buys limited (as in no more than 10 or so) items at a time". Obviously the corporate executives and world leaders know what is coming, but they are keeping it very quiet until it happens.

[Oregone]

6. Then the robots come

[NoPasaran]

10. ...And then the eight-foot tall fire breathing bunnies with bulletproof credit scores

[JVS]

17. The Russian and Chinese moves are attempts to have their cake and eat it too.

Russia and China both like to keep a relatively weak local currency in order to encourage exports. Russia and China have also historically liked to purchase US debt because it is much more stable than their own. Sending money to the US has historically been one of the safest places to keep it, whereas Russia defaulted in 1997. Russia and China both dislike a weak dollar because it both thwarts their efforts to maintain a favorably weak currency for exporting things and it also means that debt that they've purchased loses its value relative to their own price levels at home. The Euro does not offer a suitable alternative because it more or less functions the same way as the dollar. Traditionally in such a situation, the country afraid of devaluation of a foreign currency starts to use it's own money to denominate transactions. But because Russia and China want to be able to export, they'll both keep their currencies weak relative the dollar. The new international currency is an attempt to create some new entity to run a monetary policy the way China and Russia want the US and Eurozone to run policy (i.e. in their favor)

[Oregone]

5. Is United States relevancy dependent only on the greenback being the world's reserve currency?

If it is, thats a shitty way to bank your relevancy, and the repercussions are well-deserved.

[TwixVoy]

7. That and the military

And yes it is. We are now in the status of anicent Rome. During the final years of Rome ships came in to Rome FULL of goods, and they left completely empty because they produced nothing.

Same situation with us... but even worse.... Rome at least was paying in GOLD. We are paying in paper dollars backed by our "full faith and credit", but as Russia, China, and India have realized we are completely broke both government and people, and will never be able to pay back the debt we owe them. The game is over.

[Oregone]

9. The irony is...

That if the US gave up trying to be militarily relevant, they could of used the money to produce a stable social net and a strong economy, and would never of worried about anyone losing confidence in the greenback.

Hey, no worries. This is how the world turns. Catch you on the flipside

[dysfunctional press]

19. as far as being "militarily relevant" is concerned- we won't have that going for us forever...

all that money and effort that went into producing weapons, missiles, and bombs will end up having been totally wasted, as newer weapons make the old ones obsolete, and others rust away unused.
if the wealth had been used to build a stronger society- at least we'd have something more to show for it.

those who do not learn from history are doomed to repeat it.

we are on the cusp of a great upheaval and unraveling, and it's going to get very scary very soon.

[varelse]

8. I wonder what it will take to get people to pay attention to this

it represents a shift in the international power struggle - going from military power to currency - and we are about to be knocked off the top of the hill. That might not be all bad, but surely it's better to see it coming than to be blindsided by the loss of our status as "most powerful nation in the world".

[TwixVoy]

11. But as the posts at DU show

(and the unrecs my post is getting, interesting) even people at DU don't understand the huge significance of this and what is currently going on right now that they are paying no attention to.... until it happens and they suddenly realize they are screwed and start saying "Why didn't anyone talk about this?" This is perhaps the biggest news story of this next decade, as it will be the final death blow of the middle class in this country.

Bookmark this post. I will be.

[varelse]

18. This is an American thing

hardly restricted to DU. We simply aren't looking at what is right in front of us. That's sad, because it's a fucking freight train loaded with hurt and it is headed straight for us. :(

[madrchsod]

12. silly russian-trixs are for kids

coins are now being minted.....:rofl:

[TwixVoy]

13. Laugh at your own peril

enjoy being a very poor person.

[madrchsod]

20. i all ready am a poor person

[DFW]

14. Key phrase: "years for the dollar to be eclipsed"

The Monyetny Dvor has to get their fantasy coin minted in Belgium?

The dollar may be fictional in its value, but so are most currencies at this point. Gold backing
used to be the deciding factor, but in a global crunch, what good is gold? It pays no interest, you
can't eat it, heat your home with, or drive it work. Russia and China are sitting on a mountain of
as yet unexploited natural resources, where many of ours are exhausted. But they need help in exploiting
them in an efficient manner. The old wasteful, polluting ways don't cut it any more, even there. Wree and
the Europeans are way ahead of them, and they need to spend some of those useless dollars and euros
to buy the tech and techies.

Our currencies as measures of economic votes of confidence (and by now, they are little else) are down
but not completely out, and don't get too excited about farming out contracts to mint exotic coins.
Katanga had 20,000 Katangan coins minted (in gold, no less!) for them in Brussels back in 1961. Despite
this, the Katangan currency went the way of their nation--nowhere.

[TwixVoy]

15. Exactly

"years" may not FEEL as long as you think.

We are being told that we will stop losing jobs. Told that recovery is just around the corner.

Problem is I don't believe recovery is just around the corner. I think we are going to see a steady decline (but not a rapid decline) over the next few years. We will continue to bleed jobs, and continue to see the middle class phased out.

I believe calling this a recession is completely wrong. We are not in recession, but rather something much different. We are seeing the middle class be completely wiped out, but we just don't know it because we have never seen this happen like this before. It's like having a stomach ache after dinner. You think at first it's just an upset stomach and nothing to worry about. Logical. 24 hours later though you are dead because the food was actually poisoned. Of course how were you to know? Upset stomachs are a lot more common than poison in your food.

Same situation here. I think 5 years from now we will look back and say "this wasn't a recession, but rather the complete elimination of the middle class".

[JVS]

16. Russia and China each have their own currencies. That they are unwilling to execute their own...

monetary policy, but instead want to do it through some kind of supernational currency proxy, shows that they really don't have the ability to make a decision that pleases themselves between the dollar and the euro.

[abumbyanyothername]

21. How is this bad for American PEOPLE (as opposed to corporations)?

The best thing that could happen to us is that Russia, China, et al. don't want our dollars anymore.

Then the rich will have to use their dollars to pay us to do whatever the hell it is they want done.

And we will learn just how empty our consumerist life-styles were anyway.

[Holly_Hobby]

22. Here's my post from Bloomberg:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x6036535

I was told it was "art" LOL