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.
This is pure madness for the US dollar. Coupled with North and South Korea on the verge of a full scale war we would assume that Gold and Silver will rise on this breaking news, but it didn’t rise at all. In fact both Gold and Silver appear to be taking a slight nosedive on another China story, that they are raising interest rates to prevent people from buying gold and silver.
It’s almost funny, it’s like we woke up one morning, and found China being the sole superpower on the world, that at a whim can raise or drop your fortunes in 5 seconds flat.