When you are the one who drives it. What 10 years ago could have been viewed as an overstepping the red line of US Dollar's hegemony, today is a normal, business-like occurrence. Vladimir Putin effectively offers Russian Ruble as a reserve currency within BRICS in Brasilia at BRICS summit. Starts at roughly 4:00. Albeit the whole report is very interesting.
Now, Putin may wax all he wants (for the consumption of business people and investors) about Russia's macroeconomic situation which looks, indeed, stable and is not dependent on hydrocarbons market. That is easy. What needs to be emphasized, yet again, is that US Dollar's reserve status in the last 50 or so years is based primarily on the myth of American military power, period. The times when the United States was a manufacturing powerhouse of the globe are long gone, with China taking this position, and, once this American capacity was gone, the only thing which remained, apart from the "soft power" driven primarily by Hollywood, the only thing on which US Dollar's status remained to be based became expeditionary warfare. As Moammar Qaddafi, and few others, learned the hard way--one doesn't question the dominance of US currency, nor US "economic" views. That is, of course, if you are Libya, Iraq or any other location where the pre-deployment of about 300,000 US marines and GIs could be done without interruption from subject or, rather object, to be taught a valuable lesson. Color revolutions are also in this teaching tool-box.
But those instruments go only so far, until they run into the wall of near-peer, let alone peer, who, actually, can teach its own lessons and draw its own red lines. Once one considers that Russia sits on roughly 30% (by different estimates) of global mineral wealth, has modern economy, stable political system and, what really matters, state-of-the-art Armed Forces armed with some mind-boggling weapons--that is the moment when one, like Russia, can offer a variety of alternatives from increasing the share (already growing) of payments in national currencies, to using Ruble as a main payment tool within BRICS at least. Not only Russia can, but she questions US Dollar's hegemony and, in fact, calls for overthrowing it. She can afford to. In the end, it is Russia, not even China, who now stands guard on Eurasian economic integration and this guard function requires a real high-end military capability, which is a first derivative of economy of scale. As one long-time observer of China noted recently:
No Chinese citizen doesn’t understand what is going on. They are unified that the US is trying to destroy what they built in the last 40 years. And they perceive it as racist, also. It’s a recapitulation of centuries of racist imperialism. The reason the Chinese have stated their strategic relationship and acted in coordination with Russia, more and more every day, is their sense of need of Russia’s titanium spine against the Hegemon. China knows it is not strong enough to handle the storm.
Russia is. In fact that's Russian professional occupation for the last 1000 years--to handle storms. As I continue to state ad nauseam now for years--Russia has a product so valuable, so desirable by so many around the globe, that the question of price is not even that important, even if making Ruble a main currency of BRICS. Stability and peace are the names of this most treasured commodity and it is only the strength of arms which can provide it. How ironic, indeed.
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