Russia & China cut U.S. Dollar Out

No need for U.S. dollars anymore

Russia and China have announced an interesting agreement recently...

To settle their ordinary trading of about $50 billion per year, they will no longer convert to U.S. dollars.

You see, it used to be that China had to obtain dollars to buy gas supplies from Russia. But not anymore. And Russia no longer needs U.S. dollars to buy stuff from the Chinese.

And this brings us to one of the biggest and most important facts regarding the U.S. dollar.

As the dollar loses it's place as the world's reserve currency, foreign countries will no longer need to maintain large holdings of dollars. This means we will no longer be able to print as much money as we want.

This move would have been unthinkable 10 years ago, but today it is the new reality.