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Written by Ahmed Adel, Cairo-based geopolitics and political economy researcher
During their recent meeting in Moscow, Indian Prime Minister Narendra Modi and Russian President Vladimir Putin agreed in a Joint Declaration to conduct trade and investment in their respective national currencies (the rupee and the ruble), which amounts, without using the term, to a de facto de-dollarisation of India – a country projected to be the world’s second-largest economy in the coming years – and Russia, which has already displaced Japan from fourth spot in the global ranking measuring purchasing power, according to the World Bank. In fact, it is expected that de-dollarisation will pick up even more pace at the upcoming BRICS+ summit in Kazan in October, which Russia will chair.
On July 9, US Treasury Secretary Janet Yellen, during a question-and-answer session before the House Finance Committee, stated that her “biggest fear” was de-dollarisation due to the harshness of sanctions imposed against Washington’s adversaries who are seeking alternatives other than the dollar.
Hong Kong-based analyst William Pesek of Asia Times affirms and confirms Janet Yellen’s “extraordinary admission: De-dollarization is now her biggest fear.” Pesek contrasted Yellen’s optimism from more than two years ago when she boasted, “I don’t think the dollar has any serious competition and it’s not likely to for a long time.”
In March 2022, Russia’s demilitarisation of Ukraine had barely been underway for a month when the pugnacious Undersecretary of State Victoria Nuland, now ousted for failing in her position, was counting on the fact that the sanctions against Moscow would bring it to its knees and plummet Russia’s economic ranking. Instead, earlier this month, The World Bank announced that Russia was classified as a high-income country, affirming the West’s failed sanctions regime.
According to Pesek, two dynamics are accelerating de-dollarisation in Washington: the US national debt has increased exponentially and is now close to $35 trillion, and the US election cycle. And that was before the failed assassination attempt on candidate Donald Trump and after Biden finally announced that he was stepping down as a candidate in November’s US presidential election.
De-dollarisation seems like a paradox when, so far this year, the dollar has increased by 13% against the Japanese yen, not to mention more than 10% against the euro. However, the de-dollarisation process concerns the dollar’s status as a reserve currency.
Analysts calculate that the dollar’s strength comes from its hegemonic bond, which 11 years ago was 9.36% of global GDP. According to the International Monetary Fund, global GDP is estimated to reach nearly $110 trillion this year. Nonetheless, despite the enormous global economy, Western absolutist sycophants continue to praise the dollar and dismiss other forms of currency, such as the GeoEconomics Center of the Atlantic Council, which celebrates the buoyant US economy but hides the fact that US growth is due to the “war economy” of the military-industrial complex, whose contribution to the domestic GDP are wars in Ukraine and Gaza.
Still, despite Washington’s attempts to preserve the dollar’s dominance in global trade, India and Russia agreed to continue working together to promote a bilateral settlement system using national currencies when Modi visited Moscow on July 8-9.
Since 2023, India and Russia have doubled their payments in their national currencies despite US-led sanctions, said Russia’s largest bank, Sberbank, handles most payments for Indian exports to Russia. Naturally, this rise is expected to be even more accentuated following Modi’s visit to Moscow, especially after Indian economists and businessmen working in Russia expressed hope of benefiting from the vacuum created by the exit of Western companies.
India’s exports to Russia grew by 59% between the Financial Years 2021 and 2024, while imports surged by about 8300% due to India’s procurement of crude oil at a vastly cheap price. Although the trade deficit has risen to $57.2 billion from $2.8 billion before the war, the Indian think tank Global Trade Research Initiative notes that this surge is due to favourable trade terms, such as discounted energy, and Moscow’s need to find new markets amidst Western sanctions.
“Aiming to further accelerate and sustain the growth of bilateral trade, the leaders agreed to set the bilateral trade target to 100 billion USD by 2030,” said the 12th point of the total 81-point joint statement following the conclusion of the 22nd India-Russia annual summit.
Although New Delhi is not actively attempting to antagonise Washington by boosting trade relations with Russia and trading in national currencies, Indian decision-makers will not hold off on serving their country’s best interests, such as attaining cheap Russian energy, for the sake of US interests in Ukraine. By cutting Russia off the SWIFT system and imposing sanctions, the US, as every serious analyst warned for years, has instead accelerated de-dollarisation rather than preserving their hegemonic system.
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bloodsuckers drain a country and move on to the next more prosperous one, beware. for 30 years, the blackmailed blackrock cronies have drained the country and gotten every last penny they can from their companies, not caring about the long or short term consequences. you can barely buy a product worth any money at all anymore, the companies are so hollowed out from wanton greed. at least we will have things that work and are worth the money in the future once they move on to their next victim.
insanity has various symptoms…
wtf took them so long?… i can see the weeping and gnashing of teeth by zelensky and his anglo-zi0ni$t interlopers as they watch the remaining $ands passing through the hour glass telling them that their time is short. make no mistake -this is why the “inflatable trump” is coming out of the closet because they know that they are out of both time and money with their ever crumbling mic that now will require pm backed rupees and roubles instead of $usd!
about the economics. the u.s. can screw all the world as long as their military can do anything they want. it means printing dollars, spreading democracy and weapons. if they run of ukraininas, never mind, they can send polish troops and then german troops and so on so the u.s. hegemony can economically exist nearly forever.
and as for as india. india is economically nowhere close to china and guess what. u.s. is driving china against india and these 2 countries are on the brink of war because indian leaders are stupid. russia wants to be friend of both countries but in long run they will run off luck and one of their “brics” ally will eventually betray russians china or india, it is just a matter of time.
this is problem of russia, they want to play good with their friends and enemies as well and are unable to define their politics and chose side. russian friends are more and more pissed off (as syria) because russians play nice with israel and screw assad. on the other hand, u.s. and israel treats russia as garbage as they see russians weak and dumb. in the end, russia is completely alone, with bunch of opportunists and losers around them,
as a result, the marriage of necessity between russia and china will come to end. i predict that before the war in ukraine is over, the u.s. will manage to start a hot war between india and china, and then probably escalate the conflict on taiwan and open 2nd and 3rd front in asia. i’m very curious how brics bunch of idiots will manage a war on three fronts, ukraine, kashmir and taiwan simultaneously with russia in the epicenter of it. oh , i nearly forgot the proxy wars in syria and gaza.
you assume indians, chinese and asians in general are stupud like european neanderthals
it is consistent conclusion with my observing. i see 10m jews bowing to soros & rotshild and their lapdog netanyahu. then i see 350m americans bending knee to10m israelis. then i see 750m eu being treated by the u.s. as whores. then i see 150m of russian being treated like scum by putin and the u.s & eu coalition in nato simultaneously. then i see 1m stupid chinese together with 1m stupid indians who are eager to kill each other because the u.s. agencies told them it is a great idea.
and then i see stupid ppl on sf who are still repeating their mantra about clever putin and stupid u.s. president or democratic party or republican party. the problem is that u.s. presidents are not in charge in u.s. since kennedy was killed by secret services 60 years ago. u.s. deep state and mic is in charge and putin never adresed them. never told who is behind 11.9. and let them bomb nord stream so guess what – he has deals with them. he is the same scum as western politicians.
nordstream was owned by an eu swiss based consortium and insured by lloyds. so who are the losers.
he dont glorify puftas you dumb godless drug addict git,define the realm,cope!
that’s just a neocon wet dream.
my dumb amerikunt peasant–walmart no give you pension after scrub toilets for 43 years?
you cant accept change you are defeated( period) stop trying to patronise,
you fool no one with your low iq degen rants,master of null,fossils will crush you!
you dont have the power to predict anything for real,because you been defeated by lies and lies wont cut it in the real world no more,free lunch is over rover,bend over!
wernt fo russia insolvent goy,the world would be in diapers into covid jabs,godless one!
fossil energy has more power then you sodomised lieing wishfull stinking low iq weak sosos punk!
moron amerikan—“amerikans are the living refutation of the cogito ergo sum. amerikuns are yet they do not think. the amerikan mind primitive and peurile…” julius evola
they cannot send polish or german troops.
neither of them consider ukraine to be part of the eu
and therefore worthy of sacrificing lives for it.
the public is already weary of the consequences of the war
and want it to end.
history proves otherwise and back then all empires had tougher people than your woke pufy wonders,
being underprepared will be the cause of your death or ignorance take your pick,oh useless lieing one!
sovereign countries will puruse soveriegn strategic interests, not yankee narcissism
now tell me what countries are sovereign. north korea ? iran ? or cuba perhaps ? all other countries have rotschild’s central bankers in charge so i doubt they are independent against his meddling with their politicians and governments. and i really doubt that cuba or iran or north korea are capable to increase the level of global civilization. i ti quite opposite i’m afraid as these are all shithole countries.
“the. banality of amerika–the radical absence of culture”. j baudrilliard
rather be self reliant then fake independant who need dirty dozen other army to keep you degen kweer useless fks on the soros payroll,give it up,you cant rape mother nature,your going down!
jewnited snakes:-
$35 trillion national debt, $2 trillion budget deficit, $900 billion debt interest.
uncle sugar and the kikenreich are going down together.
world bank figures, economies by size:-
1. china $35 trillion.
2. jewnited snakes. $27.4 trillion.
3. india. $14.6 trillion.
4. russia. $6.45 trillion.
5. japan. $6.3 trillion.
6. germany. $5.9 trillion.
as future prez in amerika lgbt dick-tatorship i will double free fentanyl distribution
the feeble minded globalists are not only defeated on the battlefield they are also defeated in the economic spectrum. who are these deep state idiots
the same degenerates who lied about their moon landings,nuff said!