Russian lawmaker wants to outlaw U.S. dollar, calls it a Ponzi scheme

[Butifldrm]

  Russian lawmaker seeks to ban US dollar, predicts 2017 collapse  

Published time: November 13, 2013 19:53 

Edited time: November 14, 2013 07:31

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RIA Novosti / Mikhail Mordasov

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Crisis, Currencies, Law, Politics, Russian economy, USA

To protect Russians against the “collapsing US debt pyramid”, a Russian legislator has filed a draft bill to ban circulation of the currency in Russia.

Once a Moscow mayoral hopeful, Mikhail Degtyarev, 32, likens the US dollar to a worldwide ponzi scheme which he says is scheduled to end in 2017.

“If US national debt continues to grow at its current rate, the dollar system will collapse in 2017,” the submitted draft legislation says.  

“In light of this, the fact that confidence in the US dollar is growing among Russian citizens is extremely dangerous,”  Degtyarev wrote in his explanatory note attached to the bill.  

The bill would impose a ban on dollars within a year of its passage, and any private citizen holding accounts in dollars would either need to spend the money or convert it to another currency. There is no proposed ban on the euro, British pound, yen, or yuan.

If one doesn’t exchange or transfer dollars within a year, the dollars will be seized by officials, and reimbursed in rubles within 30 calendar days. 

Under the proposed legislation, Russians would still be able to use dollars abroad and have foreign bank accounts, as well as buy goods on the Internet in dollars. 

The Russian government, Central Bank, Foreign Ministry, Federal Treasury, Federal Security Service, and other state branches would be exempt from the law. 

To protect Russian nationals, Degtyarev proposes to end dollar transactions and deposits at Russian banks, which would give rise to the ruble, and end dependence on the world’s dominant currency. 

Part of the bill aims to restore the prestige of the ruble, which has weakened as the Russian economy battles inflation and slow growth. 

Raising the prestige of the ruble by nixing foreign currency isn’t a novel idea- it was practiced during the Soviet Union when holding foreign currencies was illegal. A similar ‘anti-dollar’ proposal was filed by Duma deputies in 2003, but completely flopped. 

Moscow, a developing financial center, is home to several international corporations, and many companies pay their employees in dollars, or ruble salaries pegged to the dollar. 

If the bill garners enough support, it will continue onto as many as three preliminary hearings before being passed into law. 

Degtyarev has made a name for himself with his outlandish proposals- from giving women extra holidays during menstruation, to his declaration Russia would lead the fight in defeating the antichrist. He serves as the head of the science and technology committee in the lower house of the Duma. 

The populist Liberal Democratic Party (LDPR) is a political platform for Vladimir Zhirinovsky, who is famous for political antics and outlandish bills. 

On the same day, November 13, Belarus issued a statement denying rumors they were mulling a similar currency ban, after an opposition group reported a currency circulation ban that would get rid of dollars and euros in two months. 

Citing Alexander Timoshenko, a representative of the Belarus’s National Bank, Interfax reported the rumors were “absolute nonsense” for a country with an open economy. 

Dollars in demand  

Public demand for foreign banknotes in Russia, especially dollars, has greatly increased as the ruble continues its slow devaluation. 

The Russia’s Central Bank (CBR) said they believe the ruble has stabilized, but that hasn’t curbed investors, both private and public, to not put all their rubles in one basket.

The aggregate demand for foreign currency in September 2013 increased $9.1 billion, up 7 percent from August, according data from the the Bank's September 2013 Review of State and Domestic Foreign Currency Market report, available on its website. 

The Bank has allowed the ruble to flow more freely to accommodate foreign investment and financial markets, but this has created a tough inflation balancing act for the CBR.

Demand for dollars in September 2013 rose $5.9 billion, up 11 percent from August. Over the last year, aggregate demand for dollars has dropped 1 percent, but has jumped 12 percent by individuals' purchase and conversion of greenbacks. 

The ruble’s daily trade range is 32.45–39.45, which the regulator increased on Tuesday. The bank buys between $200 and $400 million in rubles per day to counter losses. At 20:15 Moscow time, the ruble was trading 32.7643 per one US dollar. 

Consumer prices rose 6.3 percent from October, year-on-year, which is within the bank’s target inflation range of 5-6 percent. Inflation fears have prevented the bank from cutting the official interest rate for the last 14 month.

Over $13.3 billion in foreign currency flowed into (bought, acquired) authorized Russian banks in September, and nearly $13.1 billion flowed out.

In foreign currencies, total demand for the dollar in September was 65 percent, and 34 percent for euros.

http://rt.com/business/russian-lawmaker-dollar-ban-663/

 

Russian Lawmaker Wants To Ban U.S. Dollar From Russian Banks

By Joseph Adinolfi

on November 13 2013 7:31 AM

88

Russian President Vladimir Putin Reuters

A Russian lawmaker has proposed legislation to ban dollar deposits and transactions from Russian banks, claiming the currency is on the brink of collapse.

Mikhail Degtyaryov, a member of the Liberal Democratic Party, said that if U.S. national debt continues to grow at current levels, the dollar will collapse by 2017, according to a story in the Moscow Times. Countries that depend on the currency would suffer “an economic disaster.”

The ban would take effect in a year after the bill’s passage. It stipulates that any holder of a dollar-denominated account would need to spend the money, convert it to rubles or another currency, or the bank will convert the account to rubles at the average exchange rate for the previous year.

Russians would still be allowed to hold dollar-denominated accounts in foreign banks, buy and sell dollars while abroad and engage in e-commerce using dollars.

According to the Times, it is unclear when the bill might have its first legislative hearing, and whether it has enough support in the pro-Kremlin legislature to be passed into law.

"In light of this, the fact that confidence in the dollar is growing among Russian citizens is extremely dangerous," Degtyaryov said in an explanatory note attached to the bill.

http://www.ibtimes.com/russian-lawmaker-wants-ban-us-dollar-russian-banks-1467910

 

 

[stealthwarrior]

He is right.I don't trust the dollar and I LIVE HERE.2017 sounds a little too far for me.i think it will be sooner.if the dinar rv's then invest in gold,silver and other countries currency thats stable like Canada.

[yota691]

ObamaCare Update, Russian Lawmaker Pushing to Make Accepting US Dollar Illegal & More

DITCHING THE DOLLAR: Canadian Province Issues $2.5 Billion in Chinese Yuan Bonds, Russian Lawmaker Pushing to Make Accepting US Dollar Illegal, Billionaires Around The World Are Bailing Out Of The Dollar

November 15th, 2013

 

THIS IS AS CLEAR A WARNING TO EVERYONE AS I’VE SEEN TO DATE

(Beijing) – Canada’s western province of British Columbia said on November 5 it had completed the issuance of one-year offshore yuan-denominated bonds and raised 2.5 billion yuan.

This is the first time a foreign government has issued offshore yuan bonds. Mike de Jong, finance minister of Canada’s westernmost province, said officials had intended to raise only 500 million yuan but the bonds were largely oversubscribed.

Central banks and foreign institutions snapped up 62 percent of the bonds. Fund asset managers bought 18 percent. Investors in Hong Kong took 46 percent of the bonds, and 40 percent went to U.S. investors.

The bonds carry a yield of 2.25 percent. This is 10 to 15 basis points lower than bonds sold by the Chinese government, said HSBC, the sole book runner of the issuance. The bonds will be listed in Luxembourg.

Edited November 16, 2013 by yota691

[FreckledFuzz]

http://www.washingtontimes.com/news/2013/nov/13/bill-would-outlaw-us-dollar-russia/

 

 

 

MOSCOW — Predicting the imminent collapse of the U.S. dollar, a Russian lawmaker submitted a bill to his country’s parliament Wednesday that would ban the use or possession of the American currency.

 

Mikhail Degtyarev, the lawmaker who proposed the bill, compared the dollar to a Ponzi scheme. He warned that the government would have to bail out Russians holding the U.S. currency if it collapses.

 

“If the U.S. national debt continues to grow, the collapse of the dollar system will take place in 2017,” said Mr. Degtyarev, a member of the nationalist Liberal Democrat Party who lost in Moscow’s recent mayoral election.

 

“The countries that will suffer the most will be those that have failed to wean themselves off their dependence on the dollar in time. In light of this, the fact that confidence in the dollar is growing among Russian citizens is extremely dangerous.”

 

The bill would partially revive a Soviet-era ban on the dollar. It would prohibit Russians from holding dollars in the country’s banks, and banks would be unable to carry out transactions in the dollar.

However, Russians still would be able to buy or sell dollars while abroad and hold dollar accounts in foreign banks.

 

Russia’s Central Bank and the government would be exempt from the law.

Russian financial analysts were largely critical of the bill, which they suggested was more about making political capital on the back of rising anti-U.S. sentiment in Russia than protecting the country’s economy.

 

“The American financial system, despite all its existing problems, remains the most stable and low-risk in the world,” said financial analyst Andrei Shenk.

 

He also warned that the bill would harm Russia’s investment climate.

 

Another analyst warned that the bill would strip Russians of the ability to flee the country to seek greater political and social freedoms.

 

“The right to the free exchange of currencies is a fundamental element of capitalism,” said Moscow-based economics analyst Igor Suzdaltsev. “It allows citizens to leave the country when a dictatorship is imposed by selling their property and exchanging their assets for the necessary currency.”

 

 

[bigwave]

The US people that will suffer the most will be those that have failed to wean themselves off their dependence on the dollar in time.
 

[yota691]

US dollars to be swept out of Russia