As ever in the social media world, the real-world behavior of the man on the Clapham omnibus seems to be amplified, exaggerated, Characatured.
The new convert to a particular belief recently discovered will evangelize and shout it from the Twitter Tops, day and night, social media is
a great recycler of Money for old rope, anyway those jigsaw puzzle pieces.
The World Economic Forum – WEF – Financial Collapse or not Collapse – that is the Question
By Peter Koenig
Global Research, January 28, 2016
TeleSUR suggests that the WEF’s claim to make the world a better place is a joke. That might be an understatement considering who the WEF’s partners are. Nestlé, the Swiss food giant, whose CEO, Peter Brabeck, recently stated that considering water as a fundamental human right is “extreme”. Nestlé’s human rights and environmental abuses abound. They are accused of forced child labor on their cocoa plantations in the Ivory Coast. Nestlé’s water CEO, Tim Brown, has refused to stop bottling water in Sacramento, California, despite the extreme drought. While farmers were ordered to stop pumping water to irrigate their crops, Brown retorted, “If I could increase (bottling water) I would.”
Other disreputable WEF partners include Chevron which dumped allegedly over 16 billion gallons of oil and toxic waste in the pristine forests of Ecuador’s Amazon, affecting 30,000 indigenous residents, some with cancer and early death. They won a US$ 9.5 billion law suit for damages which Chevron never paid.
There is also Coca Cola with water conflicts throughout Latin America, including in a northern El Salvador municipality, where the beverage giant affects the lives of tens of thousands of residents with contaminated water they say poisons them and kills their animals. Elsewhere in Latin America, Coca Cola allegedly hires paramilitaries for intimidation, torture and murder of unionists in Colombia and Guatemala.
Social justice activist Susan George calls the Davos gang “predatory”, running the west’s major institutions. She sums the conference up as an organization of dirty partners, from polluting miners, to money-laundering banks and community-destroying corporations. Yet, the populace is made believe that the WEF is “committed to improving the state of the world.”
As long as the Masters of the Universe are in charge – and they have been for the last at least 150 years – there is no chance for a world of harmony and peace. They have decided the fate of the Middle East and the world – next Syria and eventually Iran must fall. The following targets are Russia, then China through Central Asia and the South China Sea. The well-paid WEF morons in Davos are ordered to deceive and confuse, time and again, as they have done throughout the 45 annual WEF summits – all adapted to the ‘current dangers and fears’. It is high time that we, The People, the 99.99% wake up and open our eyes to an uncomfortable reality.
Financial Warfare: “The Anglo-American Caliphate” Confronts BRICS
By Peter Koenig
Global Research, September 10, 2014
Neoliberals are short-sighted. They are overwhelmed by greed, instant gratification, and a dream of Full Spectrum Dominance, meaning controlling the world’s resources, money and people. But their caliphate empire is doomed, since lies and deceptions work some of the time with some of the people, but not all the time with all of the people. In fact, the tide is shifting – which is the silver lining of the dark cloud shed by the monstrous, murderous western war machine. The larger of the European minions, Germany and France, and some of the newer ones, Poland, Hungary the Czech Republic, to name but a few, become doubting and hesitating on the way of sanctions. They start feeling the hurt.
The Zionist Anglo-Saxon caliphate needs conflicts and wars in order to survive. Its economy is based on producing weapons and on destruction. World peace would make it collapse.
To attain their objective, the western caliphate is using a thousands-of-year-old wisdom – dividing to rein. By a multi-billion dollar driven worldwide propaganda and lie campaign, Obama and his European bootlickers first confuse the people of nations and continents, distort their common sense, then they drive a wedge between them, between allies, neighbors, common cultures, families – turning friends into foes.
Remember, the dollar is fiat money, not worth the paper it’s printed on. It is produced at will and is called Quantitative Easing (QE), a conveniently confusing euphemism for creating debt held as monetary reserves by nations’ treasuries around the globe.
The same happens with funding of the eternal war machine. Printing money at will has become a pastime justifying wars, mass killings for conquering the world’s resources and people. It will last as long as the rest of the world permits it. It’s already a fading phenomenon. Ten to fifteen years ago close to 90% of the world’s reserves were denominated in US dollars. Today that figure has shrunk to about 60%.
Dividing to rein is precisely what the western caliphate intends to do with the BRICS. Starting with Brazil, Washington attempts through an ugly smear campaign to slander Brazil’s leader, Dilma Rousseff and to defame Brazil’s economy. The former is accused of corruption and nepotism and Brazil’s economy is admonished for runaway private debt that supposedly stands at 80% of GDP. However, the smear-campaigners do not explain that thanks to the increase in private debt Brazil’s GDP has grown by 30% in the last decade. They don’t explain either that Brazil’s foreign debt to GDP ratio stands at less than 57%, compared with that of the US of almost 101.5% and of Germany’s, 82%.
“Russian Invasion” – Screaming ‘Wolf!’ Strategy of Deception. Lies Repeated Umpteen Times. What is the Endgame?
“Russian Invasion” – How long is screaming ‘Wolf!’ having an impact on Western public opinion? – Until Full Spectrum Dominance has been attained?
By Peter Koenig
Global Research, August 30, 2014
There is enough proof about who caused the 22 February 2014 coup (Maidan) – Madame Nuland, Kerry’s assistant, bragged about it at the Washington Press club – remember the US$ 5 billion “investment” in Ukraine’s regime change that cannot be let go down the drain because of the f….ing Europeans. She was caught hot-handed or hot-voiced on the phone with the US Ambassador in Kiev.
Ever since that infamous coup, the US / NATO and the EU have had their dirty hands in Kiev’s Nazi killer junta – otherwise the Kiev thugs would have never had either the courage or the military knowledge to advance to the Donbas area of Ukraine, where they were literally ordered to kill their brothers. Some of them with some conscience defected early on; then they were accompanied under threats of life by CIA ‘advisers’. Eventually they defected by the thousands because of lack of food and ammunition and the resulting low-low morale.
It is actually irrelevant whether Russia has troops and armory in East Ukraine. In fact it would be well justified for Russia to defend her countrymen from savage slaughter, as many Donbas citizens are originally Russians. But – they don’t, as Mr. Putin is too smart to spoil his diplomatic assets on a war that is already lost by Kiev.
Be this as it may, why do we, truth seekers, at a time of Obama’s lie exclamations and countless media repetitions not present more frequently the US / NATO invasion in Ukraine and their assistance to the Kiev murderers, rather than always being on the defensive, undoing lies in defense of Russia?
The truth of what the US-NATO killing machine, its vassal EU states and its paid mercenaries are up to in Ukraine, and that they won’t let go regardless of what Obama mutters to tranquilize the world — the truth is in one way or another Washington is committed to its financial and corporate elite to achieve Full Spectrum Dominance, meaning complete subjugation of the world to Washington’s masters, the military-security industrial complex and the war financing monetary system – FED-Wall Street-IMF, the latter being a mere extension of the US Treasury.
The Endgame means encircling Russia and China with more NATO bases, including Ukraine and Moldova, as close as possible to Moscow’s doorsteps; and, foreseen by 2015, with 60% of the US naval fleet in the South China Sea.
The Big Picture of the Geopolitical Chess Game: Ukraine is A “Square on the Chessboard”
By Peter Koenig
Global Research, June 01, 2014
This US / EU organized coup is now turning Ukraine, a once prosperous country, the breadbasket of the Soviet Union and the cradle of Russia into chaos, to become easy prey for the usual western money sharks, the IMF, European Commission (EC) and the European Central Bank (ECB). Behind them are the FED and Wall Street, to make sure they do as told. No mercy. For starters a US$ 17.5 billion IMF loan with the usual killer strings attached, à la Greece – large-scale privatization of the country’s social safety net, i.e. cutting salaries pensions (in half), food and fuel subsidies, increasing taxes – is rapidly becoming a nightmare for the average citizen and especially the poor.
In addition, a US / NATO sledgehammer style killing machine is launched against the ‘pro-Russian opposition’ movement, now also called the Neo-Rossiia Defense Force (NDF).
So – why is Mr. Putin not speaking up – acting up – saving fellow Russian lives? Why does he seemingly accept the sham election that brought the corrupt and corrupted multi-billionaire, chocolate magnate, Petr Poroshenko to power? – The straw in the wind, that bends to where the money flows?
There is a higher agenda at stake.
Ukraine is a mere square on the chessboard of a large-scale and long-term geopolitical game; one that is about to cause a slow but steady tectonic power shift. The symbiotic alliance between the two giants – Russia and China, the world’s largest economy, has been under preparation for the last couple of decades. It came to a sudden head thanks to Washington’s bullying arrogance, thrashing around with empty threats, worthless sanctions, anti-Russia and Putin demonizing lies and propaganda.
The historic signing on 21 May 2014 of the US$ 400 billion equivalent gas deal between Mr. Vladimir Putin and China’s President Xi Jinping had an important symbolic significance. It is a complement to the US$ 270 billion equivalent oil deal, signed in June 2013 between Russia’s Rosneft and China. The treaties are not denominated in dollars but in the two countries’ local currencies. In a larger context, the – $ 400 billion over 30 years, about $ 13 billion per year – is nothing extraordinary. Russia’s annual trade in hydrocarbons alone is estimated at close to one trillion dollars.
Russia’s Petro-Ruble Challenges US Dollar Hegemony. China Seeks Development of Eurasian Trade
China will re-open the old Silk Road as a new trading route linking Germany, Russia and China
By Peter Koenig
Global Research, April 08, 2014
In addition, the BRICS are preparing to launch a new currency – composed by a basket of their local currencies – to be used for international trading, as well as for a new reserve currency, replacing the rather worthless debt ridden dollar – a welcome feat for the world.
Along with the new BRICS(A) currency will come a new international payment settlement system, replacing the SWIFT and IBAN exchanges, thereby breaking the hegemony of the infamous privately owned currency and gold manipulator, the Bank for International Settlement (BIS) in Basle, Switzerland – also called the central bank of all central banks.
To be sure – the BIS is a privately owned for profit institution, was created in the early 1930’s, in the midst of the big economic melt-down of the 20th Century. The BIS was formed precisely for that purpose – to control the world’s monetary system, along with the also privately owned FED and the Wall Street Banksters – the epitome of private unregulated ownership.
The BIS is known to hold at least half a dozen secret meetings per year, attended by the world’s elite, deciding the fate of countries and entire populations. Their demise would be another welcome new development.
China heading off cold war through economic diplomacy
During his visit to Duisburg, Chinese President Xi Jinping made a master stroke of economic diplomacy that runs directly counter to the Washington neo-conservative faction’s effort to bring a new confrontation between NATO and Russia.
Using the role of Duisburg as the world’s largest inland harbor, an historic transportation hub of Europe and of Germany’s Ruhr steel industry center, he proposed that Germany and China cooperate on building a new “economic Silk Road” linking China and Europe. The implications for economic growth across Eurasia are staggering.
In his remarks, accompanied by German Economics Minister Sigmund Gabriel and local politicians, Xi stressed that Germany and China were the two economic locomotives at either end of that Silk Road and, by cooperating on a shared vision of rail and other infrastructure, could being entire new economic areas into being along the route. The term Silk Road is a conscious Chinese revival of the term used to describe the ancient trade and cultural routes between China and Central and South Asia, Europe and the Middle East that were created during the Han Dynasty, about AD 200 BC.
ST PETERSBURG INTERNATIONAL ECONOMIC FORUM
Oligarchs and billionaires hit by Ukraine sanctions
PUBLISHED THU, MAY 22 20141:38 AM EDTUPDATED FRI, OCT 2 20159:02 AM EDT
As tensions between Ukraine and Russia escalate following the ouster of the Ukrainian President, Viktor Yanukovych, a number of Western countries have started to impose sanctions on Russian individuals.
Accusing Russia of destabilizing the political landscape in Ukraine, the U.S., EU, U.K. along with Japan, Canada and Switzerland targeted Russian and Ukrainian individuals and corporations.
Overall, nearly 150 names have been targeted as separate countries, led by their own interests, did not punish the same people.
Click ahead for some of the most high-profile individuals hit by the measures.
By CNBC’s Alice Tidey.
Views on the Russo-American conflict
In 2015, Glazyev felt that the American capitalist model was entering an inevitable, very dangerous, phase of self-destruction. We are, he felt, “truly on the verge of a global war.” Although this coming war poses a great danger for Russia, Glazyev said that the USA will fail to achieve its hegemonic goals of controlling Russia and the entire world.
Following the August 2017 round of sanctions against the Russian Federation by the American Congress, Glazyev suggested that the USA should be officially designated as an “aggressor country.” Believing that United States’ power is based in part on the status of the dollar as the world’s reserve currency, Glazyev suggested that Russia abandons the dollar and liquidates its sizeable ($110 billion in August 2017) investment in the U.S. Federal Reserve.
The World is Dedollarizing, by Peter Koenig .#GrubStreetJournal #GrubStreetPolitics #GrubStreetGeoPolitics #GrubStreetPoliticalEconomy #GrubStreetMoneyandFinance #ConquestofDough #TidesofTheDollarMoonaPoem
MAY 26, 2011 LEAVE A COMMENT
A question for the Bank of England, what is the true state of our banking sector? | Mindful Money
What strikes me about this question is the continuing notion afield that the system is capable of some sort of redemption if House prices or property prices were lower or if government spending were lower or more efficient if only people saved more instead of spending.
The problem is the Banking System and how money is created. 97% of our money supply is created by the banks as Debt and Banks are licensed the responsibility for regulating the money supply which has allowed them and still allows them to manipulate markets.
There is a significant and huge problem in that the basic unsatisfactory nature of this systenm for the taxpayer/citizen is offset with the highly satisfactory control that the Bankers and Governments themselves enjoy from the FIAT money illusion.
In short a new system is required fixing the current one, which is arcane and antiquated at its root philosophy, is simply not an option. We need a post industrial 21st Century solution not an 18th century dinosaur of a system that has simply gone well past its sell by date.
Positive money have a very good campaign seeking a reform to Honest money, Douglas Carswell had tabled a bill regarding fractional reserve banking last November, issues such as peak oil have really stymied the perto dollar hedgemony that obvioulsy troubles nations that hold substantial dollar reserves ( all the OIL countries ( including Russia) and China)
The narrative on oil is very thin Ellen brown has written convincingly regarding the currency side of Oil and the necessity for regime change in Iraq and Libya based upon their plans to adopt a Euro based trading currency whilst planning a shift to the Gold Dinnar. Geo politically the tables have turned regarding the very childish way in which our Banking Sions have sought to sell their illusions of certainty in an uncertain world to countries who have a much longer history of civilisation and appreciation of real tangible wealth over the Mad Hatters of the wall street and square mile casino. And theres the RUB.
Its the Casino stupid!
Since 2011 my appreciation of some of the more cork-sniffy aspects of our monetary system has expanded essentially though my initial evangelical zeal has mellowed somewhat and an appreciation of a Chestertons’ Gate approach to the problem seems to me now to be necessary.
Essentially the problem of regulatory and fifth estate capture has worsened considerably since I started maintaining this blog.
The only question really worth asking is
Here’s my query to them, in a Box forum online and in an email:
On my blog, A Yappy Trade Barrier, I have a “Who Is Arrby?” page. I am Arrby. And I link to a passage in the Christian Bible. It can be found at Luke chapter 22. This is it:
“However, there also arose a heated dispute among them over which one of them was considered to be the greatest. But he said to them: “The kings of the nations lord it over them and those having authority over them are called Benefactors. You, though, are not to be that way. But let the one who is the greatest among you become as the youngest, and the one taking the lead, the one ministering. For which one is greater, the one dining or the one serving? Is it not the one dining? But I am among you as the one serving.”” -Luke 22:24-27
NIMBLE BOOKS LLC546UKRAINE AND THE GRAND CHESSBOARD
The US State Department, via spokeswoman Jennifer Psaki, said that
reports of CIA Director John Brennan telling regime changers in Kiev to
“conduct tactical operations”—or an “anti-terrorist” offensive—in Eastern Ukraine are “completely false.” This means Brennan did issue his
marching orders. And by now the “anti-terrorist” campaign—with its
nice little Dubya rhetorical touch—has degenerated into farce.
Now couple that with NATO secretary general, Danish retriever Anders Fogh Rasmussen, yapping about the strengthening of military footprint along NATO’s eastern border: “We will have more planes in the air,
mores ships on the water and more readiness on the land.”
Welcome to the Two Stooges doctrine of post-modern warfare.
Pay up or freeze to death
Ukraine is for all practical purposes broke. The Kremlin’s consistent
position for the past three months has been to encourage the European
Union to find a solution to Ukraine’s dire economic mess. Brussels did
nothing. It was betting on regime change to the benefit of Germany’s
heavyweight puppet Vladimir Klitschko, aka Klitsch The Boxer.
Regime change did happen, but orchestrated by the Khaganate of Nulands—a neocon cell of the State Department and its assistant secretary
of state for European and Eurasian Affairs Victoria Nuland. And now the
presidential option is between—what else—two US puppets, chocobillionaire Petro Poroshenko and “Saint Yulia” Timoshenko, Ukraine’s
former prime minister, ex-convict and prospective president. The EU is left to pick up the (unpayable) bill. Enter the IMF—via a nasty, upcoming
“structural adjustment” that will send Ukrainians to a hellhole even
grimmer than the one they are already familiar with.
Once again, for all the hysteria propagated by the US Ministry of
Truth and its franchises across the Western corporate media, the Kremlin does not need to “invade” anything. If Gazprom does not get paid all
it needs to do is to shut down the Ukrainian stretch of Pipelineistan. Kiev
will then have no option but to use part of the gas supply destined for
some EU countries so Ukrainians won’t run out of fuel to keep themselves and the country’s industries alive. And the EU—whose “energy
policy” overall is already a joke—will find itself with yet another selfinflicted problem.
The EU will be mired in a perennial lose-lose situation if Brussels does
not talk seriously with Moscow. There’s only one explanation for the refusal: hardcore Washington pressure, mounted via NATO.
Again, to counterpunch the current hysteria—the EU remains Gazprom’s top client, with 61% of its overall exports. It’s a complex relationship based on interdependence. The capitalization of Nord Stream, Blue
Stream and the to-be-completed South Stream includes German, Dutch,
French and Italian companies.
So yes, Gazprom does need the EU market. But up to a point, considering the mega-deal of Siberian gas delivery to China which most probably will be signed next month in Beijing when Russian President
Vladimir Putin visits President Xi Jinping.
Grandmaster Putin’s Golden Trap
The following piece by Dmitry Kalinichenko for Investcafe.ru suggests that Putin is using manipulated gold and energy prices to combat Western powers. Putin’s response to the West resembles both chess and judo, when the strength used by the enemy is used against him, but with minimal costs to the strength and resources of the defender. This comes on the heels of Russia’s central bank Governor Elvira Nabiullina telling the lower house of parliament about recent significant Russian gold purchases of roughly 150 metric tons. She is an economist, head of the Central Bank of Russia and was Vladimir Putin’s economic adviser between May 2012 to June 2013.
Accusations of the West towards Putin traditionally are based on the fact that he worked in the KGB. And therefore he is a cruel and immoral person. Putin is blamed for everything. But nobody ever accused Putin of lack of intelligence.
Any accusations against this man only emphasize his ability for quick analytical thinking and making clear and balanced political and economic decisions.
Often Western media compares this ability with the ability of a grandmaster, conducting a public chess simul. Recent developments in US economy and the West in general allow us to conclude that in this part of the assessment of Putin’s personality Western media is absolutely right.
Despite numerous success reports in the style of Fox News and CNN, today, Western economy, led by the United States is in Putin’s trap, the way out of which no one in the West can see or find. And the more the West is trying to escape from this trap, the more stuck it becomes.
What is the truly tragic predicament of the West and the United States, in which they find themselves? And why all the Western media and leading Western economists are silent about this, as a well guarded military secret? Let’s try to understand the essence of current economic events, in the context of the economy, setting aside the factors of morality, ethics and geopolitics.
After realizing its failure in Ukraine, the West, led by the US set out to destroy Russian economy by lowering oil prices, and accordingly gas prices as the main budget sources of export revenue in Russia and the main sources of replenishment of Russian gold reserves.
It should be noted that the main failure of the West in Ukraine is not military or political. But in the actual refusal of Putin to fund the Western project of Ukraine at the expense of the budget of Russian Federation. What makes this Western project not viable in the near and inevitable future.
Last time under president Reagan, such actions of the West’s lowering of oil prices led to ‘success’ and the collapse of USSR. But history does not repeat itself all the time. This time things are different for the West. Putin’s response to the West resembles both chess and judo, when the strength used by the enemy is used against him, but with minimal costs to the strength and resources of the defender. Putin’s real policies are not public. Therefore, Putin’s policy largely has always focused not so much on effect, but on efficiency.
Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.
Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!
To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the RF coming from the sale of oil and gas over the same period.
Moreover, in the third quarter the purchases by Russia of physical gold are at an all-time high, record levels. In the third quarter of this year, Russia had purchased an incredible amount of gold in the amount of 55 tons. It’s more than all the central banks of all countries of the world combined (according to official data)!
In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. It was the 15th consecutive quarter of net purchases of gold by Central banks. Of the 93 tonnes of gold purchases by central banks around the world during this period, the staggering volume of purchases – of 55 tons – belongs to Russia.
Not so long ago, British scientists have successfully come to the same conclusion, as was published in the Conclusion of the U.S. Geological survey a few years ago. Namely: Europe will not be able to survive without energy supply from Russia. Translated from English to any other language in the world it means: “The world will not be able to survive if oil and gas from Russia is subtracted from the global balance of energy supply”.
Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin’s game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not.
Because Russia, having a regular flow of dollars from the sale of oil and gas, in any case, will be able to convert them to gold with current gold prices, depressed by all means by the West. That is, at the price of gold, which had been artificially and meticulously lowered by the Fed and ESF many times, against artificially inflated purchasing power of the dollar through market manipulation.
Interesting fact: the suppression of gold prices by the special department of US Government – ESF (Exchange Stabilization Fund) – with the aim of stabilizing the dollar has been made into a law in the United States.
In the financial world it is accepted as a given that gold is an antidollar.
In 1971, US President Richard Nixon closed the ‘gold window’, ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods.
In 2014, Russian President Vladimir Putin has reopened the ‘gold window’, without asking Washington’s permission.
Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West.
Today assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West.
And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With which he immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!
There is another interesting element in Putin’s game. It’s Russian uranium. Every sixth light bulb in the USA depends on its supply. Which Russia sells to the US too, for dollars.
Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts of the West. But Putin uses these dollars only to withdraw physical gold from the West in exchange, for the price denominated in US dollars, artificially lowered by the same West.
This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail.
The idea of this economic golden trap for the West, probably originated not from Putin himself. Most likely it was the idea of Putin’s Advisor for Economic Affairs – doctor Sergey Glazyev. Otherwise why seemingly not involved in business bureaucrat Glazyev, along with many Russian businessmen, was personally included by Washington on the sanction list? The idea of an economist, doctor Glazyev was brilliantly executed by Putin, with full endorsement from his Chinese colleague – XI Jinping.
Especially interesting in this context looks the November statement of the first Deputy Chairman of Central Bank of Russia Ksenia Yudaeva, which stressed that the CBR can use the gold from its reserves to pay for imports, if need be. It is obvious that in terms of sanctions by the Western world, this statement is addressed to the BRICS countries, and first of all China. For China, Russia’s willingness to pay for goods with Western gold is very convenient. And here’s why:
China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars. Considering the growing trade deficit between the US and China (the current difference is five times in favor of China), then this statement translated from the financial language reads: “China stops selling their goods for dollars”. The world’s media chose not to notice this grandest in the recent monetary history event . The issue is not that China literally refuses to sell its goods for US dollars. China, of course, will continue to accept US dollars as an intermediate means of payment for its goods. But, having taken dollars, China will immediately get rid of them and replace with something else in the structure of its gold and currency reserves. Otherwise the statement made by the monetary authorities of China loses its meaning: “We are stopping the increase of our gold and currency reserves, denominated in US dollars.” That is, China will no longer buy United States Treasury bonds for dollars earned from trade with any countries, as they did this before.
Thus, China will replace all the dollars that it will receive for its goods not only from the US but from all over the world with something else not to increase their gold currency reserves, denominated in US dollars. And here is an interesting question: what will China replace all the trade dollars with? What currency or an asset? Analysis of the current monetary policy of China shows that most likely the dollars coming from trade, or a substantial chunk of them, China will quietly replace and de facto is already replacing with Gold.
In this aspect, the solitaire of Russian-Chinese relations is extremely successful for Moscow and Beijing. Russia buys goods from China directly for gold at its current price. While China buys Russian energy resources for gold at its current price. At this Russian-Chinese festival of life there is a place for everything: Chinese goods, Russian energy resources, and gold – as a means of mutual payment. Only US dollar has no place at this festival of life. And this is not surprising. Because the US dollar is not a Chinese product, nor a Russian energy resource. It is only an intermediate financial instrument of settlement – and an unnecessary intermediary. And it is customary to exclude unnecessary intermediaries from the interaction of two independent business partners.
It should be noted separately that the global market for physical gold is extremely small relative to the world market for physical oil supplies. And especially the world market for physical gold is microscopic compared to the entirety of world markets for physical delivery of oil, gas, uranium and goods.
Emphasis on the phrase “physical gold” is made because in exchange for its physical, not ‘paper’ energy resources, Russia is now withdrawing gold from the West, but only in its physical, not paper form. So does China, by acquiring from the West the artificially devalued physical gold as a payment for physical delivery of real products to the West.
The West’s hopes that Russia and China will accept as payment for their energy resources and goods “shitcoin” or so-called “paper gold” of various kinds also did not materialize. Russia and China are only interested in gold and only physical metal as a final means of payment.
For reference: the turnover of the market of paper gold, only of gold futures, is estimated at $360 billion per month. But physical delivery of gold is only for $280 million a month. Which makes the ratio of trade of paper gold versus physical gold: 1000 to 1.
Using the mechanism of active withdrawal from the market of one artificially lowered by the West financial asset (gold) in exchange for another artificially inflated by the West financial asset (USD), Putin has thereby started the countdown to the end of the world hegemony of petrodollar. Thus, Putin has put the West in a deadlock of the absence of any positive economic prospects.
The West can spend as much of its efforts and resources to artificially increase the purchasing power of the dollar, lower oil prices and artificially lower the purchasing power of gold. The problem of the West is that the stocks of physical gold in possession of the West are not unlimited. Therefore, the more the West devalues oil and gold against the US dollar, the faster it loses devaluing Gold from its not infinite reserves.
In this brilliantly played by Putin economic combination the physical gold is rapidly flowing to Russia, China, Brazil, Kazakhstan and India, the BRICS countries, from the reserves of the West. At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin’s Russia until the collapse of the entire Western petrodollar world. In chess the situation in which Putin has put the West, led by the US, is called “time trouble”.
The Western world has never faced such economic events and phenomena that are happening right now. USSR rapidly sold gold during the fall of oil prices. Russia rapidly buys gold during the fall in oil prices. Thus, Russia poses a real threat to the American model of petrodollar world domination.
The main principle of world petrodollar model is allowing Western countries led by the United States to live at the expense of the labor and resources of other countries and peoples based on the role of the US currency, dominant in the global monetary system (GMS) . The role of the US dollar in the GMS is that it is the ultimate means of payment. This means that the national currency of the United States in the structure of the GMS is the ultimate asset accumulator, to exchange which to any other asset does not make sense.
What the BRICS countries, led by Russia and China, are doing now is actually changing the role and status of the US dollar in the global monetary system. From the ultimate means of payment and asset accumulation, the national currency of the USA, by the joint actions of Moscow and Beijing is turned into only an intermediate means of payment. Intended only to exchange this interim payment for another and the ulimate financial asset – gold. Thus, the US dollar actually loses its role as the ultimate means of payment and asset accumulation, yielding both of those roles to another recognized, denationalized and depoliticized monetary asset – gold.
Traditionally, the West has used two methods to eliminate the threat to the hegemony of petrodollar model in the world and the consequent excessive privileges for the West.
One of these methods – colored revolutions. The second method, which is usually applied by the West, if the first fails – military aggression and bombing.
But in Russia’s case both of these methods are either impossible or unacceptable for the West.
Because, firstly, the population of Russia, unlike people in many other countries, does not wish to exchange their freedom and the future of their children for Western kielbasa. This is evident from the record ratings of Putin, regularly published by the leading Western rating agencies. Personal friendship of Washington protégé Navalny with Senator McCain played for him and Washington a very negative role. Having learned this fact from the media, 98% of the Russian population now perceive Navalny only as a vassal of Washington and a traitor of Russia’s national interests. Therefore Western professionals, who have not yet lost their mind, cannot dream about any color revolution in Russia.
As for the second traditional Western way of direct military aggression, Russia is certainly not Yugoslavia, not Iraq or Libya. In any non-nuclear military operation against Russia, on the territory of Russia, the West led by the US is doomed to defeat. And the generals in the Pentagon exercising real leadership of NATO forces are aware of this. Similarly hopeless is a nuclear war against Russia, including the concept of so-called “preventive disarming nuclear strike”. NATO is simply not technically able to strike a blow that would completely disarm the nuclear potential of Russia in all its many manifestations. A massive nuclear retaliatory strike on the enemy or a pool of enemies would be inevitable. And its total capacity will be enough for survivors to envy the dead. That is, an exchange of nuclear strikes with a country like Russia is not a solution to the looming problem of the collapse of a petrodollar world. It is in the best case, a final chord and the last point in the history of its existence. In the worst case – a nuclear winter and the demise of all life on the planet, except for the bacteria mutated from radiation.
The Western economic establishment can see and understand the essence of the situation. Leading Western economists are certainly aware of the severity of the predicament and hopelessness of the situation the Western world finds itself in, in Putin’s economic gold trap. After all, since the Bretton Woods agreements, we all know the Golden rule: “Who has more gold sets the rules.” But everyone in the West is silent about it. Silent because no one knows now how to get out of this situation.
If you explain to the Western public all the details of the looming economic disaster, the public will ask the supporters of a petrodollar world the most terrible questions, which will sound like this:
– How long will the West be able to buy oil and gas from Russia in exchange for physical gold?
And what will happen to the US petrodollar after the West runs out of physical gold to pay for Russian oil, gas and uranium, as well as to pay for Chinese goods?
No one in the west today can answer these seemingly simple questions.
And this is called “Checkmate”, ladies and gentlemen. The game is over.
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