Another shot across the bow to the US dollar

More reasons to buy gold! In yesterday’s 5 Minute Forecast from Agora Financial, they discussed another looming problem for the US dollar. Here’s what they said: “China also just took another step on the road to diversifying out of the dollar — firming up plans with Russia to start trading each other’s currencies.

After all, when you’re the world’s second-biggest energy consumer (China), and the world’s biggest energy producer (Russia), trading in dollars just gets in the way.

Russia’s Micex stock exchange has already announced its plans (with the blessing of the central bank), and traders are telling Bloomberg the Chinese are quietly making arrangements on their end.

Thus China will add the ruble to its stable of currencies traded already traded on its interbank market: the dollar, Hong Kong dollar, Japanese yen, euro and the Malaysian ringgit.

Russian and Chinese leaders telegraphed this move more than a year ago at the annual meeting of the Shanghai Cooperation Organization. "There can be no successful global currency system if the financial instruments that are used are denominated in only one currency," Russian President Dmitry Medvedev said.”

Uh Oh! Read an article on the subject here from Bloomberg. Remember that when something is not good for the dollar, it is good for physical gold. Gold demand rises on announcements like this. Get yours today at Lear Capital!