sorry vic. I mad and error and had to reload this thread.

I don't know how much trade they have. I can only assume it is a large amount. If you look at the article, it appears that Russia and China are hashing out a deal on Natural Gas.

 have seen this same announcement at least 30 times since 2001, somehow they always return to the dollar.  I am not an economist but my guess is that when they start doing something like this it causes the Yuan to rise which China does not want so they go back to using the dollar to keep their exports artificially cheap.

So should I add a question mark to the title?

I've seen it too, but i am acutally ready to believe it. These nations have to start taking steps to prepare for the post dollar world.

 I also don't really think there is a post dollar world, yeah we are kind of fucked up at the moment but as a reserve currency we are light years ahead of the only real viable competitor, the Euro.  I don't really see how it lasts the decade, but again I am not an economist.

Yeah, there isn't much of a viable option, i think a basket of curriencies and commodities is what has been floated.

You know what's good to wash down that Khlav Kalash? An ice-cold can of Crab Juice.

better than mountain dew.

If you like your renminbi...

Posted by: toby928™ at November 24, 2010 10:34 AM (S5YRY)

Worked for me!

Posted by: lethargic laceyunderalls at November 24, 2010 10:20 AM (pLTLS)

Yeah, I caught that...Not only is Woopy hard to look at, everything that spews from her mouth is cringe-worthy and nauseating. Imagine if a right leaning talking head said the same about blacks?

The Schrute Buck has real potential in that part of the world. 

When asked specifically if he thinks he can beat Sarah Palin in 2012, the president told Walters “I don’t think about Sarah Palin.”

“Obviously Sarah Palin has a strong base of support in the Republican Party and I respect those skills,” Obama said. “But I spend most of my time right now on how I can be the best possible president. And my attitude has always been, from the day I started this job that if I do a good job and if I’m delivering for the American people the politics will take care of itself.

“If I falter and the American people are dissatisfied, then I’ll have problems,” he said.

Posted by: FRONT TOWARD LEFT at November 24, 2010 10:48 AM (xJVlJ)

He makes perfect sense to me!

And China earlier this year for the first time issued bonds against its currency. The new Sino Russian financial lever makes for interesting bedfellows, kinda like finding miss piggy in lay with mortimer snerd.

After working through several late hour interventions along with 3 packs of Parliament Lights, 3 bottles of Courvoisier and a plate of hot wings, we finally convinced CAC to purchase a Thomas Kinkade painting.  

CAC does have an escape clause in the intervening agreement. If he ever runs out of drop cloths while painting, he may use his Kinkade painting.   

So, the Russians and Chinese want to play with each others' money.  Big deal.  The competitive devaluations should be fun to watch.  I am interested to see how a resource economy and a subsidized-export economy work together.

Our nation's debts are still denominated in dollars.  We still pay dollars for oil, and probably will for the foreseable future.  I don't see a problem.  The Euro is doomed - they can't hold it together.  China needs to keep its money devalued relative to others to support exports.  South America is growing in most places, but I doubt we're going to see a unified peso/real system emerge any time soon.  Africa will not be issuing a useful currency, and the middle easterners can't band together overy anything more complex than hatred of those who are better than them (which is everyone). 

As long as the supply in dollars in actual, working circulation is kept low enough to avoid high inflation, things are still good.  And if you do end up having too many dollars flowing around, driving up demand for goods, it's very easy to pull those dollars back out of the system - interest rate increases being the easiest.  Tax increases being another, less popular way.  You can suppress economic activity far more easily than you can stimulate it.

Jimmah sharing his expertise on North Korea in the Washington Post:

No one can completely understand the motivations of the North Koreans, but it is entirely possible that their recent revelation of their uranium enrichment centrifuges and Pyongyang's shelling of a South Korea island Tuesday are designed to remind the world that they deserve respect in negotiations that will shape their future. Ultimately, the choice for the United States may be between diplomatic niceties and avoiding a catastrophic confrontation.

Desiring to resolve the crisis through direct talks with the United States, Kim invited me to Pyongyang to discuss the outstanding issues.

Pyongyang has sent a consistent message that during direct talks with the United States, it is ready to conclude an agreement to end its nuclear programs, put them all under IAEA inspection and conclude a permanent peace treaty to replace the "temporary" cease-fire of 1953. We should consider responding to this offer. The unfortunate alternative is for North Koreans to take whatever actions they consider necessary to defend themselves from what they claim to fear most: a military attack supported by the United States, along with efforts to change the political regime.

And the lifetime clueless douche award goes to... Jimmah Carter

Posted by: Reactionary at November 24, 2010 11:17 AM (xUM1Q)

Reactionary, a bit of classical economics but I have a question.  The money supply is not being increased in circulation per se since the Fed is essentially booking credit transactions into commercial banks so as to prevent their collapse. Can you not still have inflationary forces by virtue of a public view that the dollar as a debt instrument is becoming devalued, irrespective if classical M3 supply is actually increased?  Certainly the pricing of gold is indicative of inflationary forces?  

what do we expect other countries to do?

they can see that we are trashing our own currency, and that we are trashing our currency because we are too wimpy to face the pain of our own debt.

if I were them I would abandon the dollar as well, anyone with any sense should abandon the dollar.

I don't like that, we benefit so greatly from having the world's default currency I do not understand why our own people seem hell-bent on destroying it.

it only makes sense if you are trying to destroy this country.  

 well we are weak, from an economic and policy standpoint. We  have N. Korea  punking us. China devaluing their Yen, Russia  having grabbed Georgia  (which send a signal to east and Europe.  It's a frikken free for all for all the un-freindlies in the world.

I'm actually scared to death at the lack of Strength shown by our Leaders.