EN. RIA.RU
9/24/08

Russia’s role in the international financial system does not seem very large. However, as a major exporter of hydrocarbons, her role in the world economy is actually very important. As the age of the dollar draws to a close, Russia will have to consider selling her oil and gas not in the devalued American currency, but instead in the euro used by most of her customers. It is surely unnatural for two geographical neighbours to do such large volumes of business using the currency of a distant and now ailing nation.

Second, the Russian leaders might also consider making their own currency, the rouble, convertible into gold. The idea of gold convertible currencies is extremely unpopular among most economists: they dismiss gold as a “barbarous relic” (to use the famous phrase of John Maynard Keynes) and suggest either the present regime of paper currencies or, at best, a link to a basket of commodities.

Russia has shown surprising success in putting an end to the unipolar world of which American strategists have dreamed now for over a decade. There are no permanent victories in diplomacy, however, but a shift in the structure of the world financial system would help to entrench recent gains.

My comment: As the inevitable sunset on the dollar hegemony continues expect more trial balloons like this one. Why should countries support the US dollar as the reserve currency if the US is going to abuse its power? We are trying to make Russia into another boogeyman for whatever reason so why shouldn’t they help hasten the decline of the dollar. The dollar hegemony has been one of the main reasons we have been a superpower so long. As Neitzsche said “that which is about to fall deserves to pushed.” We have brought most of these problems on ourselves. We have overspent, we have allowed politicians to lie to us and we have believed them, we have adopted a childish wish upon a star group think, and we as a people have become stupid, fat , arrogant, and lazy. The end result will be economic decline, political, and social upheaval.

John Polomny
The Real Deal