Russian Ruble Success Highlights Demise of U.S. Dollar
For Immediate Release:
August 25, 2006
Contact: Ian Mathias 410-864-1652 imathias@agorafinancial.com
https://www.dailyreckoning.com: Russian Ruble Success Highlights Demise of U.S. Dollar
Baltimore, MD: The Russian Financial Ministry announced yesterday that they had successfully repaid $3.6 billion of debt in the first half of 2006. Compared to the U.S., which accrues, on average, well over a billion dollars of debt per day, Russia’s dedication to repay debt is as impressive as it is telling. The Russian ruble, which utterly collapsed less than a decade ago, is beginning to challenge the once reliable dollar as the next foreign reserve currency.
“The ruble’s rise is a serious gut-check confirmation,” said Justice Litle, an expert on international currency trade. Litle, who is the editor of the critically acclaimed newsletter Outstanding Investments, believes that the ruble’s recent growth signals the weakening of global democracies and the inevitable rise of national oil companies controlled by authoritarian states. “Russia's finances have become so strong, thanks to its position as a top energy exporter,” said Litle, “that there is talk of the (now fully convertible) ruble cutting into the dollar's turf as a regional reserve currency.”
The ruble is also backed by a booming economy. Baron’s recently reported that the Russia Trading System Index registered gains of 96% over the past 12 months, which grossly outpaces the Dow Jones’ measly 5.4% year-to-date growth.
“This is a remarkable sea change,” said Litle. “The Russian economy, along with the ruble, was completely down and out,” he stressed, “and now it has managed to start competing with the dollar. This shift highlights an economic and geopolitical reality that Americans are having a hard time facing: the dollar is in trouble.”
Justice Litle, editor of Outstanding Investments and contributing editor to The Daily Reckoning, has implemented sophisticated trading and hedging strategies for clients on a global scale – a broad cross section including soybean farmers, cattle ranchers, currency hedgers, energy consultants, scrap metal dealers and everything in between. He has worked with hedge funds, traded equities for a private partnership, and written multiple articles for highly respected news sources.
A product of Agora Financial, The Daily Reckoning is written by New York Times best-selling authors, Bill Bonner and Addison Wiggin. The Daily Reckoning is a daily, free e-letter that weaves information about the financial world, investing, and everyday life into an educational and entertaining format that has been engaging readers for over seven years.
SOURCE: https://www.dailyreckoning.com
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