Russians: Do Not Give Us Dollars!


I was drinking my morning cup of coffee & thinking about the Worlds attitude toward the Dollar.

The Dollar has hit new all time lows. It is not just the World that says this, it is even showing in the USA. The sub prime issue, is bigger than anyone thinks. Those US Banks that gave the loans, also sold those same loans to foreign investors! (These foreign investors do not want to hear about defaulted loans)

The Dollar which is weaker than the Canadian dollar and Australian dollar right now, is being supported by countries such as China, Russia, Japan & all of Europe. At any given moment, China could destroy the USA monetarily. Just by converting their stockpiled of $ to Gold, Silver or Euros. Russia keeps a certain amount of her reserves in $. Russia could convert and do the same damage almost as China. The three countries that have the largest reserves is China, Russia & Japan! (China having the largest reserve)
Article on the Russian Reserves……….(RBC)

“Russia’s gold and foreign currency reserves stood at $455.2 billion as of November 9, up $7.3 billion or 1.6 percent from $447.9 billion a week before, the Central Bank of Russia has reported.

From October 5 to November 2, the reserves went up by $23.1 billion. In the last five weeks, from October 5 to November 9, they increased by $30.4 billion, or 7.1 percent.

The significant rise in such a short time could be due to the Central Bank’s increased acquisition of foreign currency on Russia’s forex market, bringing the reserves to their highest level ever recorded.

As a result, Russia has slightly reduced its gap from China and Japan, which have the largest gold and foreign currency reserves in the world. China’s reserves top $1.434 trillion, up $101 billion in the third quarter of this year alone and a more than 45 percent increase from January to September 2007 compared with the same period a year ago. Japan has over $945 billion.

The draft guidelines of the state monetary and credit policy for 2008, published by the Central Bank of Russia, say that the gold and foreign currency reserves will increase by $114.9 billion in 2007. In 2008 they are projected to rise by $37.9 billion to $68.4 billion, depending on Russia’s macroeconomic policy. In 2009 the reserves are expected to increase by between $8.6 billion and $46.3 billion. In 2010 they could drop by $4.5 billion or rise by $5.6 billion and $20.8 billion.

Meanwhile, from January 1 to November 2, Russia’s gold and foreign currency reserves increased by $144.2 billion, which is $29.3 billion more than the Central Bank had projected for the whole year.

Gold and foreign currency reserves are highly liquid financial assets controlled by the Central Bank and the Finance Ministry. They consist of monetary gold, special drawing rights, the reserve position in the International Monetary Fund, and foreign currency.”


Now as the ruble grows stronger against the dollar, more Russian companies are paying salaries in rubles instead of dollars. The salary structure has changed. Back in 2005, 45 percent of salaries were paid in rubles, and 44 percent in dollars. Currently, 80 percent of companies calculate salaries in rubles, and only 15 percent in dollars. (info RBC Report)

The good thing, “Unemployment is not a threat for Russia, with 72 percent of companies planning to hire more employees in 2008. (the problem of personnel training remains) In 2007, 70 percent of companies had difficulty finding personnel. Demand is very strong for competent office managers, secretaries, and young specialists with foreign language skills.”
(Analytical department of RIA RosBusinessConsulting)

The path that the Dollar is taking is a rocky path indeed! (more like boulders)


comments always welcome.

A survivor of six heart attacks and a brain tumor, a grumpy bear of a man, whom has declared Russia as his new and wonderful home. His wife is a true Russian Sweet Pea of a girl and she puts up with this bear of a guy and keeps him in line. Thank God for my Sweet Pea and Russia.