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S. Glazev:
United States and Japan to trash US dollar
 

State price policy-United_States_one_dollar_bill,_obverse02August 29 2007
Global economic crisis can help the Russian economy, if the Russian Government will use it's financial instruments to the best advantage of Russia...

"The United States and Japan are going to drive down the world markets within next three to four years." That stunning announcement was made by the famous Russian economist Dr. Sergey Glazev. He said that the credit system of these countries appears to be a financial pyramid and that the U.S. dollar and the Japanese yen have practically zero value now.
"The Federal Reserve Bank of the United States and the Bank of Japan have been flooding the world economy with their bank notes since 1971. At a time when the Central Bank of Russia does not use its credit and financial policies for the benefit of the Russian economy, the U.S. and Japan have been printing money all these years to finance their budget deficits." 
According to Dr. Glazev, the Bank of Japan is printing as much money as Japan and neighboring countries can accept. In addition, the Bank of Japan is officially doing that at zero, or even negative, interest.
The Russian economist made the point that "the stability of the U.S. dollar is determined by the psychological habit of financial players to do business in dollars. The world financial markets are heavily influenced by the decision of the governments of different countries, including Russia, to keep their foreign currency reserves in dollars."
Dr. Glazev attracted public attention to the following fact: "All financial pyramids collapse sooner or later. The bankruptcy of several European banks specializing in carry trades of cheap Japanese yen credits into European currencies became the first sign of the coming crisis. Simultaneously, the real estate and mortgage pyramid in the U.S. is collapsing, while the amount of mortgages reached 10 trillion dollars and the national debt of the U.S. is more than 8 trillion dollars."
"This is a typical financial pyramid, supported by the Federal Reserve's printing press. Last year the "Fed" was printing money at a rate of $2 billion dollars a day, but recently the necessity of coping with the mortgage crisis has forced the Federal Reserve to increase this rate to several dozens of billion dollars a day. We kept trying to bring this point to an attention of Russian Central Bank management, but they never paid attention. They just answered that it is a common practice to keep currency reserves in dollars."
Dr. Glazev described the events as alarming: "Current situation management in the U.S. resembles the Russian government in 1998 – everybody knew that a big crisis was coming, but nobody did anything about it. It is scary to see unrecovered mortgages reaching $10 trillion dollars while combined U.S. debt is over $30 trillion dollars. The U.S. has cornered itself and can't stop. If the Fed's printings press stops, market investors will consider it as a signal to run." But the United States's ability to cope with the situation is decreasing.  The U.S. is running out of political and military measures to support the dollar. It is obvious that they attacked Iraq in order to prevent a currency collapse and now they are preparing to attack Iran for the same reason. The so called "rogue states" just wanted to stop trading oil in dollars and start using their own currencies, but that caused a real war to be declared on them."
According to Dr. Glazev, Russia was caught by the dollar trap too. The decision of the government to keep its currency reserves in dollars has put those reserves in jeopardy: "The losses of Russian national economy in the coming crisis will be much more than the losses of the 1998 default. All big Russian corporations trading in dollars will loose their long-term contracts. Our national savings will evaporate and we are going to loose everything that we managed to make in 10 years," warned Dr. Glazev.
Only extreme measures can help. Dr. Glazev suggests radically decreasing the dollar share in currency reserves and investing the "Stabilizing Fund" into the Russian economy. Several times during the press conference he made the point that Russia is financing the U.S. military budget by keeping its Stabilizing Fund in U.S. securities.
The next step is obvious: foreign buyers should pay for Russian oil with Russian roubles. Rouble will become stable and reliable and post-soviet countries will have to keep their currency reserves in roubles. Roubles will have to go through Russian economy and that will facilitate investments into basic industry. That in turn will force USA and Europe to accept rouble as one of reserve currencies. .