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.
Should you be scared? Is this the end of the dollar? Meh, not really. This is what everyone wants to see happen; we want the yuan to become a real currency used in trade, just like many other countries currencies are.
If you lived in Russia or China, which currency would you want to keep stashed in you mattress, greenbacks, yuans, or rubles? I would be holding onto my dollars. Goverment can make big announcements like this, but I think people will still be hoarding dollars and euros.
Thomas Sowell: There are no solutions, just trade-offs.
