Updated 11/27/10 - Huge News - China and Russia have Renounced the U.S. Dollar and have QUIT Using it for Bilateral Trade!

This is HUGE NEWS!  Putin Announced last night that China and Russia have Renounced the U.S. dollar and have QUIT using it in Bilateral Trade between the two countries!



They signed the papers and have now officially quit using the dollar.  Now that these two Big countries have done this, who will follow them? 

If it was not for the Euro troubles right now, the U.S. dollar would be on a downslide of mega proportions.  

Portions:

St. Petersburg, Russia - China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday. 

The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said. 

"That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries," he said. 

Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation. 

The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communiqu. Details of the documents have yet to be released.

Putin said one of the pacts between the two countries is about the purchase of two nuclear reactors from Russia by China's Tianwan nuclear power plant, the most advanced nuclear power complex in China.

UPDATE 11/27/10 

The trading between Russia and China in Yuan has officially started.  The Chinese officials basically say is "even though we have done this, nothing will replace the dollar as the international currency and this is just a little ripple in a big pond, that won't affect the dollar".    

But then another article is out today, with Putin saying he would like to get rid of using the U.S. dollar as a trading currency and would like to go to the Euro - as he has faith in the Euro surviving and it should take over as the trading currency of the world.   So.... we have the two countries that have just started trading without the U.S. dollar, saying two different things about the dollar.  So, which one is it?  U.S. dollar stays the trading currency without a problem or looking to totally get rid of it in all trades?   

Portion:

He added: "We know there are problems in Portugal, Greece, Ireland and the euro is wobbling a bit. On the whole it is a solid, good currency and it should take its place, its role as a reserve currency.