Argentina, Brazil to drop U.S. dollar in bilateral commercial transactions

[Judi Lynn]

Source: Xinhua

Argentina, Brazil to drop U.S. dollar in bilateral commercial transactions


www.chinaview.cn 2008-03-16 14:03:09

BUENOS AIRES, March 15 (Xinhua) -- Argentina and Brazil are to scrap bilateral commercial transactions in U.S. dollars and start using their own currencies from August, an official in charge of currency settlement at the Argentine Central Bank said here Saturday.

The new payment system is aimed at reducing costs in commercial transactions and would benefit small and medium-sized enterprises, the official said.

Under the new system, there will be a unified exchange rate between the real and peso, the so-called reference rate, which will be applied by Brazilian and Argentine central banks at the end of each day.

Brazilian President Luiz Inacio Lula da Silva reached an agreement to establish a new payment system with his Argentine counterpart Cristina Fernandez de Kirchner during his visit to Argentina in February.




Read more: http://news.xinhuanet.com/english/2008-03/16/content_7800121.htm

[Joanne98]

1. Whoa.. I didn't see that one coming. kr

[Cymric]

2. Unpegging from the USD

As countries unpeg from the US dollar and peg to the Euro or free-float their currency the lower the US Dollar will sink. The result will be like turbo-inflation - prices for everything will skyrocket! Thanks George! You kept ONE promise since 2000 ... to run the US like a business! It's too bad every business you ran went belly-up - and you are succeeding to do the same with the US!

[AP]

7. How many countries are still pegged to the dollar? I don't think this is about pegging.

It's about denominating your contracts in dollars.

If they don't, then you don't have to buy dollars to do your deals, and if you don't have to buy dollars, then the value of the dollar falls more.

[krkaufman]

22. Right. Having to convert to dollars for transactions adds an additional cost ...

... so direct trading will save them money. Unfortunately for the US, this will lessen demand for the dollar, and so it's value might start to drop. :)

[formercia]

3. Expect Argentina and Brazil to dump Dollar reserves.

now that they have no reason to keep any except for commerce with the US.

[Kolesar]

4. China is becoming Latin America's new colonial master

China sends plenty of money their way to buy commodities and buy cooperation. Don't expect China's trading partners to criticize China's human rights violations or China's move against Taiwan.

[Lydia Leftcoast]

5. The rest of the world is disgusted with the U.S.

Truly disgusted.

However, they know that they can never defeat our government militarily. Hence, they use the only weapon they have, attacking our currency.

Thanks, Republicans. :sarcasm:

[AP]

6. Even if they loved America, it still wouldn't make sense to hang on to the dollar

out of friendship or loyalty.

[Angela Shelley]

15. THEY are not attacking our currency

We have done that by ourselves.

[Lydia Leftcoast]

16. True, but for other countries to drop U.S. currency is a way of

expressing their displeasure.

[Angela Shelley]

17. It´s money, which knows no emotions.

They are dropping the currency because the value of the dollar is falling.

The US is currently a poorly managed corporation, and the price of stock is falling, (that´s the value of the dollar).

Don´t take it personally when foreign countries don´t want to use the dollar.

Just put your hardhat on.

[Javaman]

8. Sooo...when do the sanctions start? When do we invade? when do we accuse them

of have having a nuclear weapons program?

[superkia]

9. They are already wanting Venezuela on the terrorist country list,...

I'm sure those other folks will be added as well. The worst part about all of this, is our generations legacy will be one that enabled the elite to rape and then steal our country without a response from us. The media has completely hidden anyone that tries and everyone else probably figures they are in this alone because they don't see the marches or protests on tv.

[Judi Lynn]

10. I've read in the last few days that it was the Cuban "exile" Congresspeople in South Florida

who started lobbying with the White House to get Chavez get put on the terrorist list.

You may recall hearing the Cuban "exiles" who fled after their US butcher puppet dictator Batista was removed from office, to South Florida, where they have dominated, have joined forces with a lot of Venezuelan elite who either have other homes there, or who have moved there more permanently. They held a joint demonstration years ago on the same day the rest of the country, and the world was out protesting in the streets concerning _Bush's invasion of Iraq.

In Miami, the Cuban "exile" extremists brought in two men who had organized a strike against Chavez from the pro-Bush sector, and made them the celebrity guests of the parade. They have both been waging constant war against Chavez all this time, even in matters so obnoxious as Cuban "exile" demonstrators rushing across a street to attack Venezuelan pro-Chavez demonstrators and chasing them down the street.



"Former opposition leaders Carlos Fernandez, at center with raised
thumb, and Carlos Ortega, in a white Venezuela T-shirt, move to
the front of the protest march as it heads east on Calle Ocho, Miami.
The two men helped lead a national strike in their homeland."




"Marchers in Little Havana demanded international help and denounced
the governments in Venezuela and Cuba as “serious threats” to Latin
America."



Cuban "exile" Miguel Saavedra hurling his bullhorn at Venezuelan pro-Chavez demonstrator.

[Lydia Leftcoast]

12. Same tricks as in the 1980s, when the

Miami Cubans allied themselves with the Somocistas.

[Judi Lynn]

18. Wow! Didn't know that about the 1980's! It figures! Some of the "exiles" participated in the ugliest

parts of the Iran/Contra war. You undoubtedly know that bomber/mass murderer Luis Posada Carriles worked for the CIA in Iran/Contra, too.

Well, it does follow their pattern. I had heard that their Congresswoman Ileana Ros-Lehtinen raised holy hell over the thought the U.S. might give sanctuary to some of the peasants who were made homeless by the war. I'm sure she got her way. She's called a "she-wolf" in Cuba.

Here's a thumbnail sketch of the racket the Somosas had going in Nicaragua for anyone who didn't know:

ANASTASIO SOMOZA, SR. AND JR.
Presidents of Nicaragua
The Marines invaded Nicaragua in 1912, and stayed until 1933, fighting but never defeating the revolutionary Augusto Sandino. They created the Nicaraguan National Guard and installed Anastasio Somoza Garcia in power. Then Sandino, who had signed a truce and put down his arms, was assassinated by Somoza. A general who led the Marines into Nicaragua, explained, " I was a high class muscle-man for big business, for Wall Street and for the banks. In short, I was a racketeer for capitalism. l helped purify Nicaragua for an International banking house." President Franklin Roosevelt put it another way. "Somoza may be a son-of-a-bitch, but he's our son-of-a-bitch." Corruption, torture, and wholesale murder of dissidents continued for 45 years under two generations of Somozas, for after Somoza Garcia was gunned down in the streets in 1956, his son Anastasio Somoza Debayle took control. The Somozas plundered Nicaragua and became millionaires. The younger Somoza, made $12 million a year buying the blood of his people and selling it abroad at a 300% mark-up. In 1972 after an earthquake killed and wounded hundreds of thousands of Nicaraguans, Somoza had his National Guard seize $30 million in international relief supplies and sold them to the highest bidder. Near the end of his reign, he aerially bombed his own capital to stay in power, but he was overthrown in 1979 by a rebel group who called themselves the Sandinistas, after the revolutionary hero his father had slain.

http://www.thirdworldtraveler.com/US_ThirdWorld/dictators.html

Pathetic, isn't it?

Thanks, Lydia Leftcoast.

[bluesmail]

11. Thanks Judi Lynn for posting all relevant issues

from south of the border, regards. I learn something from each article.

[Judi Lynn]

19. Hi, bluesmail. Good to see you around again. n/t

[bronxiteforever]

13. Kick & R-WOW! Thanks for the post!

[Judi Lynn]

20. Hi, bronxiteforever. Thank YOU. n/t

[roamer65]

14. Next up will be the Gulf oil states and Hong Kong.

They're still pegged and inflation is going through the roof. The countries will have no choice but to "depeg" in order to control inflation.

[Judi Lynn]

21. Dollar loses international clout

Dollar loses international clout
Executives, vendors shun U.S. currency
Associated Press
Article Launched: 03/14/2008 12:00:00 AM MDT

~snip~
In Bolivia, billboards feature George Washington's image on a $1 bill alongside a bright pink 500 euro note, encouraging savers to turn to the euro to tuck away money earned abroad or sent home in remittances.

"If the dollar's going down ... save it in Euros!!!" say the signs popping up around La Paz for Bolivia's Banco Bisa.

And in neighboring Brazil, the Confidence Cambio money-changing service was the first to start offering yuan so travelers to China no longer have to change the money into dollars first. The service is already a hit because Brazil does big business with China, and lots of Brazilians are heading to the Olympics this summer.

"Now we tell people not to take dollars when they go abroad, it's better to change it directly to the local currency," said Fabio Agostinho, one of the firm's managing partners. "If people leave here with dollars and go abroad, they lose when they exchange them. It's the same thing whether they're heading to China, Europe or even Argentina."

More:
http://www.elpasotimes.com/business/ci_8564484

[Supersedeas]

23. nothing to see here -- feed them more Spitzer and McGreevey sensationalisms

[Vidar]

24. Reaping what we sow with our banana republic imperialism down south.