The Dollar: "The Quiet Revolt''

From Financial Sense
By Richard Russell

''Naturally, China and some other nations want to "get away" from the necessity of switching their currency into dollars in order to trade. The answer or escape from this is currency swaps. When China wants to trade with, say, Indonesia, they trade with Chinese Yuan, thereby side-stepping the dollar completely. China has arranged currency swaps with a number of Asian countries, but lately China has arranged currency swaps with Brazil, Argentina and other South American countries, thus avoiding the necessity of taking in dollars.

Russia, too, has climbed on the "avoid the dollar" bandwagon. What's happening is a quiet revolt against the world's reserve currency, the dollar. And why the revolt? Simple, the dollar has been losing purchasing power.''

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