Russia planning to push Dollar in crisis ? Chance for Bitcoin ?

[newIndia]

Russia and US are always against the other and try to defeat the other.  The USA is the largest economy and the dollar is accepted as most reliable and valuable currency by most people in the world. Most goods or services are priced at dollar, even the cryptocurrency at the moment. To crash dollar system is not easy by any country even the Russia. In the future BTC will get accepted by the majority of the population then maybe BTC has the chance to take over dollar.

Why would Russia want to destroy this? They have been our ally for a world war and are our trading partner now

Have not u heard of cold war between Russia and USA ? Moreover, Putin does not like US's stance on Ukraine in the recent aggression.

Yes we had the cold war, however there was not actually any fighting directly between the US and Russia.

Putin is an old KGB agent though. Old habits die hard. I don't think he can do much more than saber rattle quite frankly. In a real shooting war with the west he would be way out gunned.

This may be true but Russia has a lot to lose and the chances of them loosing are greater now then in the cold war.

This is all about prediction. U never know what is actually happening deep inside China & Russia, because they are not so open like Western world.

China holds trillions of dollars and trillions more of other countries currencies. If China were to destroy the US dollar then they would lose money on those dollar investments.

In reality, dollar holding does not take place in a country's territory. It is shown on book. That is the reason US could freeze Putin's holding in swiss banks, because in reality the dollar is physically stored at US, where swiss bank cant do anything. They just need to erase Putin's holding from the book.

So, in short, China cant destroy USD directly like that. It is achieved through business and sanctions. And if Russia unites with China, US's business activity will surely take a hit.

The point is that if China were to take actions that were damaging to to the US Dollar then they themselves would take a hit as holders of Trillions of US Dollars.

U r missing the point. When u say a non-US country is holding USD, it does not mean they are physically holding that. They are holding an equivalent value. USD fall just needs a value change for them. It hurts only USA.

[houseo]

As both russia and china are pretty anti-bitcoin they will not officially approve of bitcoin

russian softening stance on bitcoin now so this story could have some weight.

[DannyElfman]

Russia and US are always against the other and try to defeat the other.  The USA is the largest economy and the dollar is accepted as most reliable and valuable currency by most people in the world. Most goods or services are priced at dollar, even the cryptocurrency at the moment. To crash dollar system is not easy by any country even the Russia. In the future BTC will get accepted by the majority of the population then maybe BTC has the chance to take over dollar.

Why would Russia want to destroy this? They have been our ally for a world war and are our trading partner now

Have not u heard of cold war between Russia and USA ? Moreover, Putin does not like US's stance on Ukraine in the recent aggression.

Yes we had the cold war, however there was not actually any fighting directly between the US and Russia.

Putin is an old KGB agent though. Old habits die hard. I don't think he can do much more than saber rattle quite frankly. In a real shooting war with the west he would be way out gunned.

This may be true but Russia has a lot to lose and the chances of them loosing are greater now then in the cold war.

This is all about prediction. U never know what is actually happening deep inside China & Russia, because they are not so open like Western world.

China holds trillions of dollars and trillions more of other countries currencies. If China were to destroy the US dollar then they would lose money on those dollar investments.

In reality, dollar holding does not take place in a country's territory. It is shown on book. That is the reason US could freeze Putin's holding in swiss banks, because in reality the dollar is physically stored at US, where swiss bank cant do anything. They just need to erase Putin's holding from the book.

So, in short, China cant destroy USD directly like that. It is achieved through business and sanctions. And if Russia unites with China, US's business activity will surely take a hit.

The point is that if China were to take actions that were damaging to to the US Dollar then they themselves would take a hit as holders of Trillions of US Dollars.

U r missing the point. When u say a non-US country is holding USD, it does not mean they are physically holding that. They are holding an equivalent value. USD fall just needs a value change for them. It hurts only USA.

If a country is holding dollars then these dollars can purchase a certain amount of goods/services. If the value of the dollar were to fall then the dollars that the country is holding can now purchase less goods/services

[ajareselde]

...
If a country is holding dollars then these dollars can purchase a certain amount of goods/services. If the value of the dollar were to fall then the dollars that the country is holding can now purchase less goods/services

And the dollar is certain to lose value so countries would need to put those dollars into safer stores of value as quickly as possible to avoid loses. That ups demand for safe havens making raw materials more expensive which makes essentials more expensive for all economies no matter how strong, that further increases demand for safe havens and the end result is global hyperinflation.

fact realy is that dollar is falling, but will bitcoin realy be the solution, im not so sure, but there will definetly be people who will spread FUD about that happening.

ive read about russia forgiving large portion of debt to korea, and germany that is allying with china, but it all may be a big hoax, we cant know for sure.

[Erdogan]

I used to believe strongly in the US dollar someday (soon) crashing into "mega-hyper-inflation." But I'm not so sure any more.

The main thing that changed my mind was learning about Bitcoin and what gives it its "intrinsic value."

The reason bitcoin has value is because it has great utility - in the present, and especially in the future. The US dollar also has great utility. It's the most accepted currency on the planet.

Now things like the OP posted will, of course, reduce that utility. But it will take a long time, and a lot of things like the above to turn the dollar into a useless piece of paper. Don't get me wrong, the dollar is going down significantly in the near future, but I think it will be just a big hit like Mt Gox was for Bitcoin. We can blame Mt Gox for cutting the value of Bitcoin in half and the Chinese "banning" for some more droppage, but it didn't kill Bitcoin and I don't think the things coming down the pike for the dollar will destroy it either. Of course those drops in value with the US dollar will be permanent unless policies dramatically change (ha-ha), where Bitcoin will continue to recover and move up in true buying power.

You are confused about what gives money value. That dollar is the most accepted currency on the planet is correct, and that is the hallmark of good money. The best money is the one that is most accepted. But that is now. If the money's value continues down its slippery slope, and if there are alternatives, it will not be the best money, and it will not be accepted to the same degree. So the causation relation is the other way: Good money is accepted, and the quality in question is the long time value, the other money qualities of the dollar is OK.

The inflation expectation, a favorite parameter for the central banks to measure, is about 2% yearly for dollars. So everyone integrates that number in their calculations and happily chug along. You could say that the value of the inflation adjusted dollar is constant. But we are talking about expectation here, and that is something that is in the mind of the actors, and everybody on the planet have the dollar value in their mind. The problem comes when all these people modifies their considerations. It is not up to the central bankers, all they can do is to present their "puts" and hope. The real reason for the value is the supply, which we know is increasing, and the reserve demand from all actors, a parameter that depends on the expectations for the continued value. A positive feedback loop.

[Erdogan]

is it just me or do other people think that when someone shouts illuminati, i/others imagine an armchair activist basement dweller that loves watching 36 hours of youtube FUD without sleep inbetween

Not just you, but be aware that the hordes are in a sense hypnotized, with a programmed reaction to certain words like conspiracy, dollar fall, gold bug, illuminati, government violence and a few others. They are programmed to adjust their normal side blinders to cover their eyes completely for a while, until the person uttering the words is gone. The wise thing to do, is to open your mind just a bit and think. All human action requires fantasy, emotions and knowledge. And without action you are just a helpless witness.

[Erdogan]

The Fallacy Of The Dollar Crash

http://realitybloger.wordpress.com/2012/03/20/the-fallacy-of-the-dollar-crash/

He suggests erroneously how the dollar has value:


The dollar has value, authority, and spending power simply due to the fact that the United States military beats the shit out of anyone who doesn’t accept it, making it what is referred to as the “world reserve currency”

See my earlier post why the dollar has value:
https://bitcointalk.org/index.php?topic=664620.msg7665783#msg7665783

[Erdogan]

The analysiz by Sergej Glazyev in the original post is mostly correct in my view.

The bank transfers, the credit card systems and all world remittance systems have all been captured by the bullies in the united states government. (That doesn't mean that the russian government are not bullies).

What the russians could and should do, is to establish a network of banks/exhanges in all countries totally disconnected from the current bank system, offering deposit accounts in rubles and renmimbi (and others) combined with market based exchanges for these currencies. For USD, only deposit and withdrawal of notes. Of course they would have to stop meddling with their exchange ratios.

That would take some of the power out of the USA bank hegemony.

[APSJEX.com]

Russia and China are pretty anti-bitcoin

[Harley997]

...
If a country is holding dollars then these dollars can purchase a certain amount of goods/services. If the value of the dollar were to fall then the dollars that the country is holding can now purchase less goods/services

And the dollar is certain to lose value so countries would need to put those dollars into safer stores of value as quickly as possible to avoid loses. That ups demand for safe havens making raw materials more expensive which makes essentials more expensive for all economies no matter how strong, that further increases demand for safe havens and the end result is global hyperinflation.

Why is the dollar certain to lose value? It is by far the most traded and the most accepted form of payment in the world.

[DannyElfman]

...
If a country is holding dollars then these dollars can purchase a certain amount of goods/services. If the value of the dollar were to fall then the dollars that the country is holding can now purchase less goods/services

And the dollar is certain to lose value so countries would need to put those dollars into safer stores of value as quickly as possible to avoid loses. That ups demand for safe havens making raw materials more expensive which makes essentials more expensive for all economies no matter how strong, that further increases demand for safe havens and the end result is global hyperinflation.

fact realy is that dollar is falling, but will bitcoin realy be the solution, im not so sure, but there will definetly be people who will spread FUD about that happening.

ive read about russia forgiving large portion of debt to korea, and germany that is allying with china, but it all may be a big hoax, we cant know for sure.

Do you have any sources regarding these rumors? Both sound contrary to what russia and Germany would likely wish to do.

I would also disagree that the dollars is falling in value

[Ron~Popeil]

...
If a country is holding dollars then these dollars can purchase a certain amount of goods/services. If the value of the dollar were to fall then the dollars that the country is holding can now purchase less goods/services

And the dollar is certain to lose value so countries would need to put those dollars into safer stores of value as quickly as possible to avoid loses. That ups demand for safe havens making raw materials more expensive which makes essentials more expensive for all economies no matter how strong, that further increases demand for safe havens and the end result is global hyperinflation.

Why is the dollar certain to lose value? It is by far the most traded and the most accepted form of payment in the world.

That dollar is losing value all the time. Inflation of any currency devalues it. The fact that it is a reserve currency can only prop it up for so long.

[Harley997]

...
If a country is holding dollars then these dollars can purchase a certain amount of goods/services. If the value of the dollar were to fall then the dollars that the country is holding can now purchase less goods/services

And the dollar is certain to lose value so countries would need to put those dollars into safer stores of value as quickly as possible to avoid loses. That ups demand for safe havens making raw materials more expensive which makes essentials more expensive for all economies no matter how strong, that further increases demand for safe havens and the end result is global hyperinflation.

Why is the dollar certain to lose value? It is by far the most traded and the most accepted form of payment in the world.

That dollar is losing value all the time. Inflation of any currency devalues it. The fact that it is a reserve currency can only prop it up for so long.

Inflation will always cause any currency to lose value, but inflation does not take a major toll on the buying power of currencies when kept in check (is low enough)

[bg002h]

Good read: http://www.amazon.com/Currency-Wars-Making-Global-Crises/dp/B006JAM3UU/ref=tmm_aud_title_0

Author served on a DoD war game where the USD was attacked by Russia...

[InwardContour]

The analysiz by Sergej Glazyev in the original post is mostly correct in my view.

The bank transfers, the credit card systems and all world remittance systems have all been captured by the bullies in the united states government. (That doesn't mean that the russian government are not bullies).

What the russians could and should do, is to establish a network of banks/exhanges in all countries totally disconnected from the current bank system, offering deposit accounts in rubles and renmimbi (and others) combined with market based exchanges for these currencies. For USD, only deposit and withdrawal of notes. Of course they would have to stop meddling with their exchange ratios.

That would take some of the power out of the USA bank hegemony.

Globalization would prevent this from being successful. Since Russia needs to trade with other countries and most trade is denominated in US Dollars, there would be a demand to have US based banking transfers. 

[Catmoonglow]

Maybe we'll get lucky and Putin will only target Washington D.C. with his nukes.

[mamarried]

Maybe we'll get lucky and Putin will only target Washington D.C. with his nukes.

did you even read the freaking article?

[APSJEX.com]

people that have the means do have this before investing a lot in other assets. 

[E-valuta]

Maybe we'll get lucky and Putin will only target Washington D.C. with his nukes.

You mean the nuke attack on NY and London that US will be responsible for?  On the 22/7?

[Eric2013]

interesting, but i dont think the Russian could make it happen. Dollar has been the leading currency for so many years mate.