Mar 112023
 March 11, 2023  Posted by at 1:15 pm Finance Tagged with: , , , , , , , ,

Henri Matisse Young Woman at the Window, Sunset 1921

Andrew Korybko:

Reuters reported on Wednesday that “India’s Oil Deals With Russia Dent Decades-Old Dollar Dominance”, which informed their audience that the growing trend of those two using national or third-party currencies like the UAE’s is something significant for everyone to pay attention to. To that outlet’s credit, it also reminded readers that IMF Deputy Managing Director Gita Gopinath foresaw in the month after Russia’s special operation began that the West’s sanctions “could erode the dollar’s dominance”.

Lo and behold, that’s precisely what happened, with India of all countries accelerating de-dollarization through its non-dollar-denominated energy deals with Russia. About them, Russia has since become India’s largest supplier over the past year and now provides a whopping 35% of that country’s needs, which is also the world’s third-largest oil importer and fifth-largest economy. Their new energy ties, and particularly the growing de-dollarization dimension of their deals, are thus globally important.

None of what was just described is driven by any anti-American animus on India’s part since everything is purely motivated by the pursuit of that country’s objective national interests. Delhi had no choice but to gradually diversify away from dollar-denominated energy deals with Moscow due to Washington’s illegal sanctions. Its multipolar leadership wasn’t going to let the world’s most populous country slip into an economic crisis just to please the US by eschewing the import of discounted oil from Russia.

By defying American pressure upon it to unilaterally concede on those aforementioned objective national interests, India’s economy ended up growing at twice the pace of China’s, which contributed to catapulting that country to the forefront of the global systemic transition to multipolarity. Amidst the impending trifurcation of International Relations, India is now poised to de facto lead the Global South in helping fellow developing countries balance between the Golden Billion and the Sino-Russo Entente.

Had India complied with the US’ illegal sanctions, then the New York Times wouldn’t have recently admitted that those restrictions failed just like the West’s efforts to “isolate” Russia did as well. It was largely due to that South Asian Great Power’s truly independent grand strategy that this latest phase of the New Cold War didn’t decisively end in the Golden Billion’s victory over Russia and the restoration of unipolarity, which would have been detrimental to India and every other developing country’s interests.

India therefore changed the course of history by remaining committed to the pursuit of its objective national interests, which to remind everyone, aren’t driven by any desire to harm the interests of third parties like the US. Its leading role in de-dollarization via its increasing number of non-dollar-denominated energy deals with Russia is also reshaping the global financial system by reducing that currency’s prior dominance and thus leading to a more multipolar state of affairs for everyone.

Even the US itself seems to have finally accepted that it can’t reverse this trend, which is evidenced by former Indian Ambassador to Russia Kanwal Sibal recently telling TASS that “Lately, the discourse from Washington has changed and India is no longer being asked to stop buying oil from Russia. In a recent visit to India, the US Treasury Secretary actually said that India can buy discounted oil from Russia as much as it wants so long as western tankers and insurance companies are not used.”

Nevertheless, radical liberalglobalist ideologues like Color Revolution mastermind George Soros are still desperately clinging to the dream of restoring the US’ rapidly declining unipolar hegemony, hence why he de facto declared Hybrid War against India during the Munich Security Conference last month. It remains unclear whether he and his network have enough support in the Western Establishment to advance that regime change agenda, but his threat is still worrisome and should be taken seriously.

Reuters’ latest report about India’s role in accelerating de-dollarization might fuel interest among likeminded “Western Exceptionalists” in supporting his de facto Hybrid War against that country so observers should closely monitor related developments in order to assess whether this happens. In any case, those who sincerely support multipolarity should loudly applaud India for its indispensable role in comprehensively facilitating this process, especially its financial dimension as described in this analysis.

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Home Forums India Takes A Leading Role In De-Dollarization

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    Henri Matisse Young Woman at the Window, Sunset 1921 Andrew Korybko: Reuters reported on Wednesday that “India’s Oil Deals With Russia Dent Decades-Ol
    [See the full post at: India Takes A Leading Role In De-Dollarization]


    Writing , or even understanding, International Trade agreements between India and Russia is beyond my abilities

    Dr. D

    “US Treasury Secretary [The forgettable Ms. Yellen] actually said that India can buy discounted oil from Russia as much as it wants so long as western tankers and insurance companies are not used.”

    “You can buy as much as you want only if we can find no way to punish you.” Thanks! I’m glad all’s forgiven. Like Africa (?) and Macron the other day, um “We don’t need your permission? Stop being as condescending as Biden’s Press Secretary, we’re better than you and you’re not my daddy?” Piss off.

    Aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaand London Insurance and Shipping is now dying the slow death whereas it was just pleasantly raking billions a year in good money for doing f-all before. Brilliant!

    Armstrong is right: the West is gone, now ceded their financial focus to places that do things, like Singapore. I would be caught dead dealing with London and I speak English.

    Please go faster. Never stop.

    John Day

    Thank you for continuing to track this, Andrew.
    I am also tracking it, and you got Tom Luongo’s attentin on this. You may read his work.
    Both of you have noticed poor Mr. Soros and his recent frustrations, as well.


    The blows to the Western Empire are coming fast and furious:

    The US occupation of Syria and Iraq is untenable with China brokering peace with Iran and Saudi Arabia. From now on, to get Middle East oil and LNG, Europe and North America will have to pay full price. China assures its future energy supplies can bought with renminbi, (Chinese: “people’s money”). The hegemon is dead.

    Russian oil and the sanctions are triggering alternative currency trades. The off shore 2.1 trillion Euro-dollar trading, each day, is at risk. The US dollar inevitably will be discounted. Instead of the global economy, it will be pegged only to North America’s depleted resources, the sick work force, and the failed governments.

    The collapse of the Silicon Valley Bank, puts lie to “this is the best of all possible world” propaganda. Unless a buyer is found to take on the bank’s debt, the tech world, the UK subsidiary, and California grape growers will have lost a major source of money. $250,000 is not much solace to millionaire depositors. We shall see if FDIC will prevent future runs on other banks. I’d open accounts at other banks if I had more than $250,000 in one bank account.

    The proxy WWIII in Ukraine is unsustainable. The Kremlin is not going to crumble. An Armistice and a DMZ – peace – is the only alternative.

    Once trust is lost and everyone realizes that they are on their own, civilization is finished.

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