Sino-Russo Dollar Din

Tuesday saw an unprecedented level of accord between China and Russia made official as the two powers strengthened their alliance through a number of mutually beneficial deals.  The biggest news coming out of the high profile event is their agreement to discontinue trading with the dollar as their primary medium of exchange.

After the announcement last year that OPEC nations were merely considering the idea of moving to a basket of currencies to expedite petroleum trade, this latest knock on the Federal Reserve Note sounds a lot more like another nail in it’s coffin to most experts.

While those of a collectivist mentality praise the strengthening of Sino-Russo relations as the death knell of capitalism, many more see it merely as a mark against the progressive private forces currently dictating economic policy State-side.  Still others scoff at the move as mere posturing by both sides to counter the Obama administration’s increased support for Southeastern Asia. This announcement was originally released in August but now serves official notice abroad that the dollar is no longer being relied upon by two more of the world’s largest economic powers.

But regardless of the motivation or level of dissemination, the highly publicized declaration makes for another PR blow to the already weakened Federal Reserve which faces an incoming US Congress empowered by Tea Party supporters demanding solutions to the failing economy.