From Market Watch:
A senior Kremlin advisor has said Russia could respond to threatened U.S. economic sanctions by abandoning the U.S. dollar as a reserve currency and not repaying loans to U.S. banks, Russian media outlets reported Tuesday. “We have wonderful economic and trade relations with our southern and eastern partners,” said presidential aide Sergei Glazyev, who is an advisor rather than a policy maker, according to Voice of Russia . “We will find a way not just to eliminate our dependence on the U.S., but also profit from these sanctions.”
However, a senior source in the Kremlin told RIA Novosti Glazyev’s comments were only “personal opinion” and not the Kremlin’s position, according to reports
For now, this is a vacant threat–as vacant as the ones the West is hurling against Russia. Making this move now would likely not only plunge the world—starting with Europe—into a massive depression, it would also rebound and surely take down Russia’s own economy.
But… it indicates a further emboldening in other parts of the world to mention the unmentionable: Major players—China, Russia, Brazil, India, South Africa, and others—are looking ahead to the day when the dollar will be dethroned as the world’s reserve currency. In that day, the United States will suffer a massive loss of power and wealth such as the world has rarely, if ever, seen.
Rejection of the dollar speaks the name of history’s most devastating weapon of financial mass destruction.
Imagine waking up to find gasoline at $20 or more per gallon; food prices having tripled (or worse); the cost of every imported item (do we even make much of anything anymore?) having risen by three, four, or even five times or more. This is what losing reserve currency status will mean to us, when it happens.
China has been massively and quietly accumulating gold, and there is a strong sense that at some point they will have a sufficient amount to announce a semi- or full-backing for the Yuan. In that moment, the game for our economic system—based on official counterfeiting and monetary illusions—will detonate into its natural state: worthless paper.