Gold-Backed Ruble, Yuan to Trigger Global De-Dollarization
SputnikNews.com
05.12.2015
A gold-backed ruble and gold-backed yuan could start a ‘snowball exit’ from dollar F. William Engdahl notes, adding that it will diminish America’s ability to use the reserve dollar role to finance Washington’s perpetual overseas wars.
The irony of the situation is that the central banks of China, Russia, Brazil and other countries “diametrically opposed” to US foreign policy course are forced to stockpile dollars in the form of “safe” US Treasury debt in order to protect their economies, American-German researcher, historian and strategic risk consultant F. William Engdahl stresses.
The truth of the matter is that the role of the US dollar as the world’s major reserve currency is the countries’ economic Achilles Heel, the strategic risk consultant elaborates.
At the same time, by buying US Treasury debt in dollars, they are de facto financing Washington’s “endless” overseas military operations.
Fortunately, “[t]hat’s quietly changing. In 2014 Russia and China signed two mammoth 30-year contracts for Russian gas to China. The contracts specified that the exchange would be done in Renminbi [yuan] and Russian rubles, not in dollars. That was the beginning of an accelerating process of de-dollarization that is underway today,” Engdahl writes in his article for New Eastern Outlook.
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