Thursday 18 June 2009

ChinaDaily announcement post-BRIC-meeting-in-Russia

As I anticipated, there was:

1) no urgent call to dump the dollar as feared, but words of encouragement that the world should work towards that end


2) nations to embrace ways of working together cooperatively to smooth international trade issues

For (1) I read "death to your dollar... tomorrow, when we are better prepared...", and for (2) I read "we are going to setup more currency swaps with as many of our key trading partner countries as possible, therefore bypassing the need to use more dollars". All is as it should be then.

There is an additional implication in "The document called for broader cooperation in the energy sphere, diversifying energy resources and energy transit routes" too. For this I read "China will loan Russia the money needed to construct a gas pipeline to China's border, and China will take the lion's share of the gas Russia was formerly exporting through their pipelines into Europe" (Russia doesn't have the spare cash that it would require to fund such a project, so it has to borrow it from China.) Is it just me, or is it starting to get a bit chilly?

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