KTFA: Samson: Saudi Arabia And China Are About To Abandon The Dollar.. An Expert Lists The Reasons For The Move
19th March, 2022
An economic expert explains the reasons that prompted Saudi Arabia and China to consider abandoning the dollar in their oil transactions and relying instead on the Chinese yuan.
The Wall Street Journal reported earlier this week that Saudi Arabia is in talks to price some of its oil sales to China in yuan.
This potential move could highlight the concerns of many about dependence on the US dollar, and also could be taken as an indication of how well Beijing can develop its currency in other parts of the world.
Both countries could benefit from the dollar’s decline in importance on the world stage, economist and associate professor at Boston College Alexander Tomek tells Business Insider. “While any deal would be symbolic, the Chinese are not the only ones looking for an alternative currency other than the dollar,”
Tomic added. “Other countries’ need for dollars makes them dependent on the American financial sector, thus granting political influence to the United States.”
Some analysts downplayed the chances of the yuan’s deal with Saudi Arabia, noting that the Saudi riyal is pegged to the dollar, which helps protect its economy from fluctuations. But Tomic believes that the effectiveness of the sanctions imposed by the West on Russia has served as a wake-up call for countries seeking to reduce their dependence on the United States, while other regimes fear that they may be next if they violate Washington.
Tomic explains that “the potential deal between Saudi Arabia and China is a sign that the world is looking for some counterweight to the US dollar.” Tomic continues, the Saudis do not expect the dollar to be stable in the future, especially if the United States increases the money supply in response to economic challenges.
Meanwhile, Business Insider notes that China has long been pushing for the yuan to replace the dollar. But the collapse of major financial institutions in Russia as a result of Western sanctions imposed as a result of its invasion of Ukraine has increased the chances of a fundamental change, according to Tomek.
He points out that “China believes that the move to adopt the yuan will reduce the impact of any similar sanctions that the West may impose in the future if it does something that the United States and its allies oppose.” However, the Chinese yuan needs two important factors in order to establish itself as a reserve currency.
First, global faith in the dollar must wane, and this could happen if the US Federal Reserve fails to control inflation, according to Tomek.
Second, China has to ensure the yuan’s long-term stability to gain the trust of other countries, especially given that Beijing devalues its currency from time to time to boost exports, and this makes other countries unwilling to hold such a currency.
However, Tomic notes that China has high ambitions for the future of the yuan, as it believes that Africa is the most likely place to replace the dollar in trading. LINK
Cleitus: Moving away from the fiat currency and towards gold-backed currency. Which direction would you take?? IMO, of course!
Samson: Lavrov: The Cooperation Of Russia And China Will Be Strengthened, And The West Has Lost Its Credibility As An Economic Partner
19th March, 2022
Russian Foreign Minister Sergei Lavrov accused the West of “undermining the foundations of the world order,” stressing that Moscow and Beijing’s cooperation will be strengthened in these circumstances.
Speaking about the prospect of cooperation between Moscow and Beijing, Lavrov said, in a speech he delivered today, Saturday, to the participants in the international track of the “Leaders of Russia” competition: “This cooperation will be strengthened, and in conditions of the West flagrantly undermining all the foundations on which the world order depends, we, as two countries, must think about how to continue our lives in this world.”
“We have a lot of work to do, and our leaders and other members of our two governments and foreign ministries are actively working within the framework of the traditional, regular dialogue,” he continued.
The minister pointed out that the West at the current stage presents itself the goal of “eliminating Russia and moving to confront China,” noting that the West sees Beijing as a danger because of its economic growth, which began after China agreed to the rules of the international economic game.
Lavrov addressed the West by saying: “It (China) is in your court at the moment and it is winning against you according to your rules. Does this mean to you that it is time to change the rules of the game? It appears to be so.”
The minister stressed that the West’s behavior in the Ukrainian file and its sanctions against Russia and other issues confirms “the absence of credibility for it, either as a region in which the main reserve currencies arise, or as economic partners, or as countries in which gold reserves can be stored.” He continued, “They will just steal it” (these reserves). LINK
Cleitus: Are you paying attention, anyone! What does Russia and China have in common that the US does not…at this time!
Samson: Russia : Our economy will not collapse
19th March, 2022
Deputy Chairman of the Russian National Security Council Dmitry Medvedev stressed Saturday, that the Russian economy will not collapse, stressing that Moscow has many reliable partners in different parts of the world.
“Russia has many reliable partners, not only in the post-Soviet space, but also in China, Southeast Asia and Africa, and these are huge markets,” Medvedev said.
He added, “We have experienced crises, sanctions, threats and political pressures more than once, in 2008, 2014 and 2018, as well as various sanctions that were imposed on the Soviet Union more than a dozen times, but we stopped fearing for a long time, and then soon our opponents themselves came to us, demanding Back to the negotiating table on all issues.”
He continued, “Previous sanctions forced us to actively develop import alternatives in all industries and the Cabinet has already taken practical decisions to support the people and the economy. This is happening now.”
Medvedev said that the US State Department gradually began to retreat from its “unshakeable” positions, when officials in Washington made cautious statements about the possible lifting of most sanctions imposed on Russia. LINK
Samson: Report: Al-Kazemi is still the strongest candidate to head the next government
19th March, 2022
Bloggers wrote on social media that the outgoing Prime Minister, Mustafa Al-Kazemi, is still the most prominent candidate to head the new government, to complete the achievements of the current stage. And they said that (Al-Kazemi’s government succeeded during two years in distancing Iraq from external conflicts, and facing the crises that afflicted the country as a result of the economic conditions that the world witnessed as a result of the outbreak of the Corona pandemic), and they added that (Al-Kazemi is in the political race, and that his chances are strong to win the second term).
In turn, the political expert Essam Al-Faili said that (when Al-Kazemi took over the administration of the government from his predecessor, Adel Abdul-Mahdi, the state was boiling on a hot tin due to the outbreak of the October uprising as a result of the absence of services, and the state treasury at that time was empty in light of the presence of political forces racing to seize the state and a regional environment turbulent trying to settle his accounts in unstable areas, and therefore the stage required a surgeon who could deal with crises with a mentality), and added that (Al-Kazemi and his government team, they succeeded in crossing the challenges that faced Iraq, and dealt with crises calmly).
For his part, the academic Haider Hamid confirmed that (Al-Kazemi took over the government and the state was on the verge of collapse, and I think that during this stage he was able to absorb the challenges and succeeded in restoring relations at the regional and international levels, and keeping Iraq away from the conflict of the axes), noting that (international trust what Iraq gained in Al-Kazemi’s government was great, in addition to the fact that he dealt with everyone in the spirit of citizenship). LINK