Monday, June 09, 2014

US-Russia and the laws of unintended consequences

FT:

Russian companies prepare to pay for trade in renminbi

Russian companies are preparing to switch contracts to renminbi and other Asian currencies amid fears that western sanctions may freeze them out of the US dollar market, according to two top bankers.
“Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies and to set up accounts in Asian locations,” Pavel Teplukhin, head of Deutsche Bank in Russia, told the Financial Times.
We also had THIS last week.
And, of course we had  … THIS
And let’s now observe THIS…
Bill Gertz:

Not waiting for 2016: Gulf states talk with Russia about strategic shift

ABU DHABI — The Gulf Cooperation Council, amid major military projects with the United States, has sought an alliance with Russia.
Gulf Arab sources said several of the six-member GCC were conducting a strategic dialogue with Moscow in 2014 based in part on the assumption that the shifts in U.S. policy during the Obama administration is unlikely to change significantly until 2016.
They said the dialogue, launched nearly a year ago, marked an alternative to the GCC reliance on the United States to counter the Iranian nuclear and missile threat.
"There has been a realization that Washington is either unable or unwilling to stop Iran’s expansion," a source said. "Thus, the consensus is that other avenues must be explored, foremost being China and Russia."
The sources said the dialogue could lead to Russian weapons exports to GCC countries, particularly in the areas of ballistic missiles and air defense. They said such GCC states as Saudi Arabia and the United Arab Emirates would seek to use trade as an incentive for Moscow to restrain Iran."The Gulf states were very impressed by the commitment of Russian support to Assad, and the hope is that Moscow could do the same for the GCC," the source said. 
Obama’s ‘Don’t Do Stupid Shit’ foreign policy seems somewhat limited.
But I have a question, does supporting the Muslim Brotherhood and it various arms everywhere, including NOW in the West Bank/Gaza with HAMAS seem like REALLY stupid shit?

1 comment:

Charles Martel said...

This man has destabilized not just the Middle East, but the whole world.

Regarding China, it will be interesting to see how willing are American importers to help sink the dollar, or to stand their ground and refuse to bow down.

If "US importers can slash the cost of imports from China by agreeing to trade in renminbi rather than US dollars ..." I guess we will find out then who is who in American imports.

It may also be an excellent opportunity to rebuild industries and be more self sufficient rather than depend on China for everything.