The following Pravda article clearly spells out why our Republocrats and media are more worried about Donald Trump than protecting the power of the US Dollar.
he United States has declared a war of sanctions on Russia and continues putting trade pressure on China. It is not ruled out that the USA will restrict supplies of steel products from China. In return, Moscow and Beijing intend to abolish the US dollar in mutual settlements within the scope of the BRICS organization. The move will mark the end of the era of the undivided financial domination of the United States of America in the world.
As soon as the US Congress adopted a package of new sanctions against Russia, Deputy Foreign Minister of the Russian Federation Sergei Ryabkov issued a formidable warning to Washington. "US sanctions against Russia will only encourage Russia to create an alternative economic system, in which dollars will not be needed," the Russian diplomat said.
Interestingly, the statement was made on the eve of the two-day summit of BRICS trade ministers, which opened on August 1, 2017 in Shanghai. This organization, which includes Brazil, Russia, India, China and South Africa, becomes a powerful counterweight to the Group of Seven. Today, the BRICS countries account for 26% of the Earth's territory, 42% of the world's population (almost three billion people) and 27% of world GDP. According to experts' forecasts, the share of BRICS countries will account for more than 40% of world GDP by 2050.
However, BRICS trade ministers chose not to put the horse before the cart.
Russia's Minister for Economic Development Maxim Oreshkin stated that BRICS countries, in particular Russia and China, may switch to settlements in national currencies already in the near future. The minister also said that the trade turnover between Russia and China may reach $200 billion by 2020.
Meanwhile, on the sidelines of the Shanghai summit, the ministers discussed opportunities for the creation of a new monetary system to exclude the use of the US dollar. In 2015, President Vladimir Putin said that Russia was opting for settlements in national currencies and created currency pools with several countries.
Today, not only does Russia need to abjure the dollar - the country needs to ensure financial independence from the West. The BRICS countries have coordinated basic principles of the work of the New Development Bank, which is seen as a counterbalance to the World Bank, in which it is the Americans who set the rules of the game.
In addition, Russia considers a possibility to set up a separate payment system similar to SWIFT.
More than 300 Russian banks have switched to an alternative to SWIFT - the system known as SPFS (System for Transfer of Financial Messages). Elvira Nabiullina, Chairwoman of the Central Bank of Russia, said: "Threats were voiced that Russia could be cut off from SWIFT. We have completed the work on our own payment system, and if something happens, all operations in SWIFT format will work inside the country."
One of the main conditions for switching to settlements in national currencies is the stability of the national currencies of the BRICS members. The Russian ruble exchange rate may decrease due to relatively low world oil prices (within $52 per barrel).
Unstable exchange rates of national currencies is not the only obstacle to abjure the US dollar in mutual settlements. BRICS countries account for only 10% of global trade. Therefore, the alliance needs to increase indicators of mutual trade.
Moscow and Beijing have already introduced mutual settlements in yuans. Russia's Central Bank has opened its first foreign office in Beijing. Thus, the war of sanctions against Russia consolidates and boosts relations between Russia, China and other BRICS members.
The S&P 500 just did something it hasn’t done in 7 years The S&P 500 just did something it hasn’t done in 7 years
The S&P 500 is on pace for its 72nd straight trading session without a gain of 1 percent or more — its longest such streak since early 2007.
The implications of this kind of historical market calm that's been the subject of much debate across Wall Street this year are concerning to some strategists who believe low volatility (while the market grinds to all-time highs) is the so-called calm before the storm.
The last time the S&P posted a gain larger than 1 percent in a single trading session was on April 24, with a gain of 1.08 percent.
This relative market quiet "definitely" concerns Mark Tepper, founder and president at Strategic Wealth Partners.
"The fact that the VIX is near all-time lows, the fact that volatility is so low ... that is really signaling a lot of investor complacency, and that is typically a contrarian indicator. We saw similar levels in the VIX back in 2006, and we all know what happened in 2007," Tepper said Thursday on CNBC's "Trading Nation."
In 2006, the CBOE volatility index vacillated between the low 10's and at one point 23, in mid-June, before quickly falling. The stock market was similarly going stretches of time that year without daily gains and declines greater than 1 percent.
"The market right now seems to be priced for perfection, and it's not pricing in a lot of those big geopolitical risks ... so we are a little bit concerned," Tepper said, adding that despite this concern his firm is indeed overweight equities and will continue such an overweight position in equities for at least another year or so. But he would expect volatility in the market to pick up over the course of the next year and will then reduce exposure at that time.
But, Tepper said, he would expect volatility in the market to pick up over the course of the next year and will then reduce exposure at that time.
In a note to clients last week that was widely speculated to have sparked a midday sell-off, prominent JPMorgan quantitative and derivatives strategist Marko Kolanovic wrote that low volatility ought to give "pause to equity managers."
Furthermore, he recommended that investors hedge their portfolios to prepare for a market decline.
To Matt Maley, equity strategist at Miller Tabak, volatility will likely return to the market, and though he is somewhat concerned with low levels of implied volatility in the VIX, his anxiety is more muted than others:
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The two stories below cover the same exact area of the world . . . the Persian Gulf.
Iran will quietly comply with whatever the USA and its current administration desire. The American public will focus on fright rather than the future potential of what these companies can produce.
Laser weapons are now a real, viable, speed of light, defense weapon that will only become more efficient and powerful. Plus, as the technology develops exponentially faster, you can forget an atomic attack unless its a total inside job with the help of a Fed Ex, UPS, or a major transportation carrier like a ship or airline. So, the only thing exploding in the near future are the stock prices of the companies who produce each part of these amazing new defense weapons.
Political manipulation and fear exist in every decade right next to opportunity and wealth. I miss my Tang in the morning and my Foghat 8-track tapes of the 60's and early 70's. I just love my Dick Tracy Apple watch.
God Bless America
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Livio S. Nespoli has been a broker, registered investment advisor, and financial publisher since 1985.