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The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

Tyler Durden's picture




 

Several months ago, when Russia announced the much anticipated "Holy Grail" energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar's stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.

This changed in late June when first Gazprom's CFO announced the gas giant was ready to settle China contracts in Yuan or Rubles, and at the same time the People's Bank of China announced that its Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin held a meeting in which they discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.

And yet, while both sides declared their operational readiness and eagerness to bypass the dollar entirely, such plans remained purely in the arena of monetary foreplay and the long awaited first shot across the Petrodollar bow was absent.

Until now.

According to Russia's RIA Novosti, citing business daily Kommersant, Gazprom Neft has agreed to export 80,000 tons of oil from Novoportovskoye field in the Arctic; it will accept payment in rubles, and will also deliver oil via the Eastern Siberia-Pacific Ocean pipeline (ESPO), accepting payment in Chinese yuan for the transfers. Meaning Russia will export energy to either Europe or China, and receive payment in either Rubles or Yuan, in effect making the two currencies equivalent as far as the Eurasian axis is conerned, but most importantly, transact completely away from the US dollar thus, finally putin'(sic) in action the move for a Petrodollar-free world.

More on this long awaited first nail in the petrodollar coffin from RIA:

The Russian government and several of the country’s largest exporters have widely discussed the possibility of accepting payments in rubles for oil exports. Last week, Russia began to ship oil from the Novoportovskoye field to Europe by sea. Two oil tankers are expected to arrive in Europe in September.

 

According to Kommersant, the payment for these shipments will be received in rubles.

 

Gazprom Neft will not only accept payments in rubles; subsequent transfers via the ESPO may be paid for in yuan, the newspaper reported.

 

According to the newspaper, the change in currency was made because of the Western sanctions against Russia.

 

As a protective measure, Russia decided to avoid making its payments in US dollars, which can be tracked and controlled by the United States government, Kommersant reported.

"Protective measure" meaning that it was the US which managed to Plaxico itself by pushing Russia to transact away from the US Dollar, in the process showing the world it can be done, and slamming the first nail in the petrodollar's coffin.

This is not surprising to anyone who has been following our forecast of the next steps in the transition from the Petrodollar to the Gas-O-Yuan. Recall from April:

The New New Normal flow of funds:

  1. Gazprom delivering gas to China.
  2. China Gazprom paying in Yuan (convertible into Rubles)
  3. Gazprom funding itself increasingly in Yuan.
  4. Russia buying Chinese goods and services in Yuan (convertible into Rubles)

And all of this with the US banker cartel completely disintermediated courtesy of the glaring absence of the USD in any of the above listed steps, or as some may call it: from the Petrodollar to the Gas-o-yuan (something 40 central banks have already figured out... just not the Fed).

Still confused? Then read "90% Of Gazprom Clients Have "De-Dollarized", Will Transact In Euro & Renminbi" for just how Gazprom set the stage for the day it finally would push the button to skip the dollar entirely. Which it just did.

In conclusion we will merely say what we have said previously, and it touches on what will be the most remarkable aspect of Obama's legacy, because while the hypocrite "progressive" president who even his own people have accused of being a "brown-faced Clinton" after selling out to Wall Street and totally  wrecking US foreign policy abroad, is already the worst president in a century of US history according to public polls, the fitting epitaph will come when the president's policies put an end to dollar hegemony and end the reserve currency status of the dollar once and for all, thereby starting the rapid, and uncontrolled, collapse of the US empire. To wit:

In retrospect it will be very fitting that the crowning legacy of Obama's disastrous reign, both domestically and certainly internationally, will be to force the world's key ascendent superpowers (we certainly don't envision broke, insolvent Europe among them) to drop the Petrodollar and end the reserve status of the US currency.

As of this moment, both Russia and China have shown not on that it can be done, but it is done. Expect everyone to jump onboard the new superpower axis bandwagon soon enough.

 

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Wed, 08/27/2014 - 13:58 | 5150033 RacerX
RacerX's picture

and so it begins. The real reason for the war.

Wed, 08/27/2014 - 14:00 | 5150046 nope-1004
nope-1004's picture

Yes, war must occur now.  On the other side of it will be a new financial system that otherwise would not be publicly accepted.

 

Wed, 08/27/2014 - 14:01 | 5150055 BlackChicken
BlackChicken's picture

Holy shit, it's on.

Wed, 08/27/2014 - 14:04 | 5150076 Divided States ...
Divided States of America's picture

The end game is near for the USD...in order to keep investors invested in the USD is for them to keep buying US stocks...and the Fed is making sure that they do so by propping up the US stock markets with new highs every fuckin day.....lets see how long they can do this.

Wed, 08/27/2014 - 14:05 | 5150090 Pladizow
Pladizow's picture

Once the trade is complete, in what currency will the funds be parked?

Still the dollar - perhaps?

Wed, 08/27/2014 - 14:09 | 5150125 ZerOhead
ZerOhead's picture

It won't be Bitcoin...

Wed, 08/27/2014 - 14:13 | 5150153 SMG
SMG's picture

Petrodollar will live until Saudi Arabia does what Gazprom just did.  So not final yet.

Wed, 08/27/2014 - 14:15 | 5150174 Slave
Slave's picture

And what is the (R)etard solution to all of this...? Kill 'em all?

Wed, 08/27/2014 - 14:18 | 5150198 JoeSexPack
JoeSexPack's picture

Before the FED's owners take their loss they'll accuse Russia of cheating, flip the poker table & start a fight.

 

Trying to steal all chips & run out the back while the others knock each other out.

 

Bet on it.

Wed, 08/27/2014 - 14:20 | 5150206 strannick
strannick's picture

Oil in Rubles, and gold in Yuan,

Germany saying the US should just move along. Yep, its on.

Wed, 08/27/2014 - 14:24 | 5150229 Alea Iactaest
Alea Iactaest's picture

Der Speigal has clearly been moving away from the US embrace (death grip?) for awhile now. The stage is set. US will be a pariah, with the world cheering on every move to give the Exceptional what they consider we rightly have coming.

Wed, 08/27/2014 - 14:28 | 5150269 SafelyGraze
SafelyGraze's picture

"it doesn't really make any difference (to the US) whether oil is traded in dollars or rubles or yuan"

- ambrose

http://en.wikipedia.org/wiki/Ambrose_Evans-Pritchard

 

Wed, 08/27/2014 - 14:29 | 5150278 Latina Lover
Latina Lover's picture

I wonder how you say "Fuck You America" in Russian and Chinese?

Wed, 08/27/2014 - 14:34 | 5150320 linniepar
linniepar's picture

And gold "Yuans" at the news...

Wed, 08/27/2014 - 14:35 | 5150338 Pinto Currency
Pinto Currency's picture

 

 

Let's see how long the adolescent president and congress can avoid doing their homework which is currency reform and debt market restructuring.

Wed, 08/27/2014 - 14:40 | 5150383 ilion
ilion's picture

I kinda start to like the Russians.

Wed, 08/27/2014 - 14:46 | 5150438 y3maxx
y3maxx's picture

...Looks like the Fat Lady has started to sing.

Wed, 08/27/2014 - 14:55 | 5150502 Quus Ant
Quus Ant's picture

Maybe war.  Or will the US overthrow Russia with yet another color revolution?

https://www.youtube.com/watch?v=WNAPbuwLMHg

http://www.voltairenet.org/article185074.html

 

September is going to be a wild month. 

Wed, 08/27/2014 - 15:15 | 5150633 Save_America1st
Save_America1st's picture

Those who act first, act best.  There's already going to be a lot of followers to this....those nearly 100 other countries who have joined the BRICS aliance.

The one who acts last is fucked.  And I'm pretty sure America has been set up to be the only douche bag at the dance without a girl. 

Wed, 08/27/2014 - 16:38 | 5151110 Liberal
Liberal's picture

As a staunch liberal, I have no idea what this deal means.

Is this going to affect my EBT card?

Wed, 08/27/2014 - 21:50 | 5152234 asdasmos
asdasmos's picture

They are increasing the cost to renounce US citizenship to $2,350 after record renunciations.

isaacbrocksociety.ca/2014/08/27/state-department-to-hike-renunciation-fees-to-us2350-says-no-public-benefit-in-respecting-human-right-to-change-nationality/

The amount of people renouncing are undercounted. Waiting times around the world do not add up as they can process many per day. In Toronto, Canada, the amount they can process in a year is just about the same as the official number of renunciants and relinquishments for the wolrd per year.

Thu, 08/28/2014 - 01:22 | 5152677 HardlyZero
HardlyZero's picture

Nail is so old school.

They should say 'nailgun' in coffin.

For the banks.

 

Hey do DSK and Corzine date each other these days...no one else will ?

Thu, 08/28/2014 - 02:50 | 5152768 Drunk In Church
Drunk In Church's picture

The petro dollar is doing just fine and dandy.  If anything, the currency will gain quite significantly.  There's no future in gold.  The Yankee dolla is king. 

Wed, 08/27/2014 - 15:03 | 5150549 MeMadMax
MeMadMax's picture

I don't think Ochooma gives a shit... 

 

And why would he?

Wed, 08/27/2014 - 15:14 | 5150624 dontgoforit
dontgoforit's picture

It doesn't make a bit of difference.  None.

Wed, 08/27/2014 - 15:40 | 5150761 TheReplacement
TheReplacement's picture

You all are so cute and innocent still.  As if this is an accident of bad policy or some other unintential consequence.  Ha.

Thu, 08/28/2014 - 11:49 | 5153997 Meat Hammer
Meat Hammer's picture

Bingo! "They" are ready to crash the US dollar now that the plebs have made them retarded rich by jumping into the stock market with both feet and buying into the housing bubble...again.  They already own everything, so fuck it.  They'll jump out in time and we'll be left holding our dicks.

Putin and Obama are just actors in a play.

Same as it ever was.

Wed, 08/27/2014 - 16:41 | 5151124 logicalman
logicalman's picture

She's at least clearing her throat!

 

Wed, 08/27/2014 - 21:38 | 5152186 Tarshatha
Tarshatha's picture

There goes my fucking pension.

Thu, 08/28/2014 - 01:31 | 5152689 Ward no. 6
Ward no. 6's picture

russia is fascinating

not just what is happening now, but even their history (although some of it so sad )

I like their language for starts...

luv their writers... Dostoyevsky being one of my favorites...

even einstein once said ""Dostoevsky gives me more than any scientist, more than Gauss." 

Kefir originates from russia

interesting life in yakutia russia

http://askyakutia.com/

 

Wed, 08/27/2014 - 14:48 | 5150454 JRobby
JRobby's picture

That's math. And math is hard.

Wed, 08/27/2014 - 14:36 | 5150329 Pinto Currency
Pinto Currency's picture

-

Wed, 08/27/2014 - 16:33 | 5151089 NoDecaf
NoDecaf's picture

@ Latina Lover - In Russian it's "Idi na hoi" which translates into "go to the dick" which is their way of saying "fuck you"

Wed, 08/27/2014 - 21:50 | 5152231 Eeyores Enigma
Eeyores Enigma's picture

Lets be clear.

EVERY country will accept ANY currency for ANY of their resources.

BUT it will be PRICED in dollars so those with the goods will look at that and adjust accordingly. As soon as some currency or basket of currencies hold value compared to the dollar THEN and only then will it be used for international trade.

Hey...we didn't make the rules we just play by them...oh...wait a minute...we DID make the rules...never mind.

 

 

Thu, 08/28/2014 - 04:16 | 5152825 conscious being
conscious being's picture

Lets be clear.

You don't understand the petro$.

Wed, 08/27/2014 - 22:19 | 5152341 Moustache Rides
Moustache Rides's picture

No ticky, no laundry

Thu, 08/28/2014 - 01:25 | 5152669 HardlyZero
HardlyZero's picture

Fiat wars....and it's gone.

https://www.youtube.com/watch?v=_nVk25ZvTkU

 

Oiling up your car with trap greese will make the roadway smell like frys.

No tickee, no Oilee.

Wed, 08/27/2014 - 22:22 | 5152345 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

???????

Wed, 08/27/2014 - 19:48 | 5151801 SaracenSam
SaracenSam's picture

If that were true, they wouldn't have destroyed Iraq and Libya and killed their leaders.

Wed, 08/27/2014 - 16:34 | 5151091 Freddie
Freddie's picture

The USA is a Soros and Tel Aviv run country now.

Thu, 08/28/2014 - 07:14 | 5152967 Volaille de Bresse
Volaille de Bresse's picture

"The USA is a Soros and Tel Aviv run country now"

They're an easy scapegoat. I'm sure it's been ruiend by good old WASP's. The two poisons of Murica are ignorance and arrogance, not kippas.

You've displayed plenty of both during the 80's and the 90's now the bill is on the table and you gotta pay it.

Wed, 08/27/2014 - 19:32 | 5151738 Bangin7GramRocks
Bangin7GramRocks's picture

The U.S. still has how many soldiers stationed in Germany? I think this isn't what it appears. Rightly or wrongly, when the shit starts to unravel, they will all come running back to the dollar.

Wed, 08/27/2014 - 15:16 | 5150643 mt paul
mt paul's picture

dead mike wonders 

if the cigars he steals

will be priced in yuan or rubles

Wed, 08/27/2014 - 20:20 | 5151935 El Oregonian
El Oregonian's picture

Well, there's 4 players left with only 3 chairs remaining and the music has just stopped. One will lose, the USA is the furthest away from a chair....

Unfortunately, unless we have a Mexican Stand-off, then firepower will rule the day....

Wed, 08/27/2014 - 14:47 | 5150443 JRobby
JRobby's picture

"Before the FED's owners take their loss"

They will vaporize half of the globe. Hopefully more will begin to see the psychopaths that have BEEN running things for who they are soon.

Wed, 08/27/2014 - 16:03 | 5150922 AL_SWEARENGEN
AL_SWEARENGEN's picture

" finally putin'(sic) in action the move for a Petrodollar-free world."  Tyler, it's verbiage like that that keeps me coming back for more.

Wed, 08/27/2014 - 16:34 | 5151088 Time for Titus
Wed, 08/27/2014 - 18:21 | 5151497 American Dreams
American Dreams's picture

Oh dear God!!! Not the Banks!

Know your enemy

AD

Wed, 08/27/2014 - 20:19 | 5151930 BFUSA
BFUSA's picture

Drudge Report: Russians hacked American Banks

Jack Ryan: Shadow Recruit

 

http://youtu.be/K9KAnx4EvaE

Wed, 08/27/2014 - 14:30 | 5150284 JRobby
JRobby's picture

That would be full-retard no?

Wed, 08/27/2014 - 18:08 | 5151258 Slave
Slave's picture

For 2 years we got to see Democrat full retard with spend spend spend socialism and stimulus. They think there is nothing that cannot be solved by government spending.

By 2017 you'll have a full retard Republican Congress and President and you'll see war war war. They think there is nothing that cannot be solved by going to war. USA USA USA!!!

Isn't that all we've seen our whole lives? Spending, debt, and war increases and loss of civil liberties? Both parties carry the same flag, have their specialties, and are swapped out once in a while to maintain the illusion that we are in control at the polls and that they are different.

Wed, 08/27/2014 - 21:24 | 5152121 Bill of Rights
Bill of Rights's picture

Yes cause as we all know the (D)icks got this right?

Wed, 08/27/2014 - 22:10 | 5152317 Slave
Slave's picture

I prefer (D)umbasses, and no they don't, obviously. Is your point that the (R)etards do?

Wed, 08/27/2014 - 14:15 | 5150175 JoeSexPack
JoeSexPack's picture

Before the FED's owners take their loss they'll accuse Russia of cheating, flip the poker table & start a fight.

 

Trying to steal all chips & run out the back while the others knock each other out.

 

Bet on it.

Wed, 08/27/2014 - 15:06 | 5150545 Quus Ant
Quus Ant's picture

Petrodollar will live until Saudi Arabia does what Gazprom just did.  So not final yet.

Can't sell what you don't have.  Wait.  Strike that.  What a complete clusterfuck.  What happens when both sides of a trade are fictitious?

Wed, 08/27/2014 - 16:27 | 5151050 THX 1178
THX 1178's picture

Q: What happens when both sides of a trade are fictitious?

A: A modern economy

Wed, 08/27/2014 - 17:12 | 5151095 Quus Ant
Quus Ant's picture

Which looks something like THIS.

Wed, 08/27/2014 - 18:02 | 5151411 NeoRandian
NeoRandian's picture

Great clip. "You don't need proof when you have instinct."

Thu, 08/28/2014 - 01:18 | 5152672 HardlyZero
HardlyZero's picture

The Professionals.

Wed, 08/27/2014 - 15:21 | 5150659 BanksterSlayer
BanksterSlayer's picture

V. the Guerrilla Economist postulated in his audio blog yesterday that that is precisely the motive behind the recent news story of the Saudi Prince who got carjacked in Paris, with "documents" being stolen. Saudi Arabia has, for all practical purposes, already flipped Eastward.

Aug27:

http://roguemoney.net/

 

Aug18:

http://www.zerohedge.com/news/2014-08-18/gunmen-attack-saudi-prince-pari...

 

Wed, 08/27/2014 - 20:17 | 5150734 TeethVillage88s
TeethVillage88s's picture

Greg Morse says V the Guerrilla agrees that DTCC, US Holding Company, not only holds all the real stock certificates in USA and much of the world too... but is behind setting up the BRICS Central Bank.(146 Minutes into Video, Euroclear, Clearstream, Cede & Company, Luxembourg, Russia)

https://www.youtube.com/watch?v=HmJKrhWucC0

Cede & Company, Holding Company, Depository Trust, not local bank 45 minutes in.
Sole Registered owner of all stocks on wall street
Most powerful member of Federal Reserve owns all US Stocks as the Holding Company.
DTCC, 51 minutes in.
Wall Street makes self developed rules
SSRO, Self Regulating organization, 52:30 minutes.
Golden Rule applies www.saveourfamilyandhome.com -

BRICS & US Dollar Derivative & BRICS Bank 214 Minutes in

Wed, 08/27/2014 - 16:33 | 5151090 tonyw
tonyw's picture

what are the odds the US did the carjacking?

Wed, 08/27/2014 - 20:36 | 5151987 FreedomGuy
FreedomGuy's picture

Maybe, maybe not. Until China and Russia or someone else can also provide the protection the house of Saud needs, I do not think they will stray too far. There aren't three Chinese carrier groups within a day or military assets in place. Russia is close but not there and not capable of long distance support.

Let's see how these alternate currency trades go. These parties do not have a long history of friendship depsite their leftist governments.

Wed, 08/27/2014 - 16:14 | 5150975 TheInfoman
TheInfoman's picture

So is S.A. funding ISIS, or are they afraid of being overthrown by them?  

Wed, 08/27/2014 - 16:55 | 5151172 Canadian Dirtlump
Canadian Dirtlump's picture

Well people say this is the death knell, other say it doesn't matter but it's really just in between. Trade in USD has been on a steady decline, and we know we will tell when it's too far gone because then the big war starts.

Wed, 08/27/2014 - 17:23 | 5151270 Mr. Magoo
Wed, 08/27/2014 - 17:46 | 5151347 TeMpTeK
TeMpTeK's picture

And Gazprom will convert rubles and yuan to ... wait for it.......Dollars.... nothing to see here ppl, move along

Wed, 08/27/2014 - 18:47 | 5151587 barre-de-rire
barre-de-rire's picture

if dollar become worthless  arabs won't wait long to ask euro instead of dollars....

 

expect shtf around santa claus to me.

Thu, 08/28/2014 - 10:04 | 5153481 Vandal
Vandal's picture

Spot on...The petrodollar cycle that Kissinger worked out with the Saudis is one of the primary pillars of dominance. While interesting, I'm not concerned until the Saudis change the status quo and the BIS starts conducting banking settlements in something other than US dollars. That status quo will not change without violent consequence.

Thu, 08/28/2014 - 14:00 | 5154820 Road Hazard
Road Hazard's picture

And if SA does what Gazprom just did, I can see ISIS making a beeline for them as SA jumps to the top of the list of infidels overnight.

 

Wed, 08/27/2014 - 14:44 | 5150404 Rootin' for Putin
Rootin' for Putin's picture

Wait till Russia rolls out Putincoin

Wed, 08/27/2014 - 14:57 | 5150509 KnightTakesKing
KnightTakesKing's picture

 "Protective measure" meaning that it was the US which managed to Plaxico itself...

Love that turn of a phrase, Plaxico itself. The USA seems to Plaxico itself quite often these days.

Wed, 08/27/2014 - 17:05 | 5151202 espirit
espirit's picture

Boris would say engraving on Putincoin have 'balls of steel' on one side...

...is on other side 'balls of wookie' nailed to post.

Wed, 08/27/2014 - 22:07 | 5152308 Flagit
Flagit's picture

 

it was the US which managed to Plaxico itself by pushing Russia to transact away from the US Dollar,

 

I don't get it. The only thing he was famous for was dropping the ball, and shooting himself in the foot...

Wed, 08/27/2014 - 16:29 | 5151063 shitco.in
shitco.in's picture

China is much more involved in Bitcoin than you would think: http://www.thecoinsman.com/2014/08/bitcoin/inside-one-worlds-largest-bit...

Wed, 08/27/2014 - 17:36 | 5151311 pomlad5
pomlad5's picture

oru

Wed, 08/27/2014 - 14:10 | 5150130 the phantom
the phantom's picture

+1000 for the article's Plaxico reference. Too funny...

Wed, 08/27/2014 - 14:17 | 5150188 Kaiser Sousa
Kaiser Sousa's picture

"bye, bye Ms. America Pie..."

Wed, 08/27/2014 - 15:30 | 5150711 Kaiser Sousa
Kaiser Sousa's picture

"MOSCOW, August 27. /ITAR-TASS/. The Russian Central Bank and the government’s financial and economic departments have prepared a bill to create a Russian analog of the SWIFT international financial message system, Deputy Finance Minister Alexei Moiseyev said on Wednesday.

“We have prepared a bill. We have consulted with the banking industry and the Central Bank,” Moiseyev said.
Russia will go ahead with the bill as soon as it becomes clear that the Central Bank is technologically prepared “to transfer all operations to internal processing inside Russia.”

Central Bank First Deputy Chairman Georgy Luntovsky said in July that SWIFT was discussing a possibility with the Russian regulator to establish an operational center in Russia. SWIFT Director for Russia, CIS and Mongolia Matvei Gering confirmed this information at that time.

Moiseyev said in April that the Finance Ministry was going to initiate amendments to the legislation to transfer electronic settlements to Russia to ensure their reliable and uninterrupted nature. The system should be registered in Russia and comply with the requirements of the Russian Central Bank, Moiseyev told Rossiya-24 TV channel at the time.

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) transmits 1.8 billion communications a year, remitting payment orders worth $6 trillion a day. The system comprises over 10,000 financial organizations from 210 countries. Under the SWIFT charter, groups of members and users are set up in each country covered by the system. In Russia, these groups are united in the RosSWIFT association."

Wed, 08/27/2014 - 19:01 | 5151639 Kirk2NCC1701
Kirk2NCC1701's picture

Moiseyev? Interesting.

Wed, 08/27/2014 - 15:46 | 5150791 TheReplacement
TheReplacement's picture

I had to google that to understand.  It is sad that so many here didn't.

Wed, 08/27/2014 - 14:10 | 5150135 CrazyCooter
CrazyCooter's picture

Oil is the money ... which now has three proxy fiats to choose from ...

Regards,

Cooter

Wed, 08/27/2014 - 15:47 | 5150796 TheReplacement
TheReplacement's picture

Crazy?  Crazy like a fox.

Wed, 08/27/2014 - 14:13 | 5150159 Headbanger
Headbanger's picture

So this is the Black Swan which causes  foreign currencies to spike vs the US dollar killing the carry trades and thus equity markets even as the Feral Reserve jacks rates back up in a blind panic to save it from being worthless so we can still afford our military hegemony.

Wed, 08/27/2014 - 15:24 | 5150677 deadelephant
deadelephant's picture

Headbanger, 

You really need to switch to decaf and add a couple of sentence breaks.  My blood pressure just spiked reading that.  +1 for you none the less.

Wed, 08/27/2014 - 17:54 | 5151382 RaceToTheBottom
RaceToTheBottom's picture

Blood pressure???  Lets talk pegs now....

Wed, 08/27/2014 - 14:20 | 5150205 hungrydweller
hungrydweller's picture

To really drive the nail home, they need to start dumping dollars for gold and real assets abroad.

Wed, 08/27/2014 - 14:23 | 5150232 seek
seek's picture

They already have. The big one will be when treasuries were dumped.

This is WWIII, and this news is an atomic bomb. Treasury dump is the H-bomb. Probably late 2015 at the earliest, definitely by 2018.

Wed, 08/27/2014 - 14:49 | 5150461 Winston Churchill
Winston Churchill's picture

If they still even hold any, apart from in name only.

Lots of different ways to skin that particular cat, that if I can think of them, they surely can.

Wed, 08/27/2014 - 15:31 | 5150719 WillyGroper
WillyGroper's picture

Seek,

How do you arrive at these time frames?

Wed, 08/27/2014 - 15:55 | 5150863 JRobby
JRobby's picture

Novocaine followed by repeated blows to the head.

Wed, 08/27/2014 - 15:43 | 5150774 RafterManFMJ
RafterManFMJ's picture

There is only oil, and gold.

Gold to store your labor, IE your expended energies in a form that cannot be printed from air and is incorruptible.*

Oil, already the concentrated work of millions of years of sunlight or bacteria ... It's amazing the power distilled into one barrel of oil.

Gold, and oil. All else is a derivative or a fraud.

*http://en.m.wikipedia.org/wiki/Saddle_Ridge_Hoard

Wed, 08/27/2014 - 19:58 | 5151504 KnightTakesKing
KnightTakesKing's picture

I would throw silver in there too. For every day commerce.

Wed, 08/27/2014 - 18:55 | 5151618 barre-de-rire
barre-de-rire's picture

fixing process to control silver since 15 august will be applied for gold too within a year. this is the only way to slow down the global process. keeping it low as possible to kill any trade.

Wed, 08/27/2014 - 22:38 | 5152389 TheAnswerIs42
TheAnswerIs42's picture

Yes and let's not forget the BILLIONS of years of work stored in Uranium, etc...

It's amazing the power distilled into 1 gm of that stuff.

 

Wed, 08/27/2014 - 14:31 | 5150293 jballz
jballz's picture

 

Gold, bitchez.

 

and maybe a couple bitcoin. Putin likes to be diversified. 

Wed, 08/27/2014 - 15:08 | 5150588 agstacks
agstacks's picture

They will convert the currency into money.

Wed, 08/27/2014 - 15:11 | 5150609 Freddie
Freddie's picture

Does this mean I should buy Jessica Alba's diaper IPO?

Wed, 08/27/2014 - 15:32 | 5150723 WillyGroper
WillyGroper's picture

Are you that old?

Couldn't tell by some of your posts.

Wed, 08/27/2014 - 15:50 | 5150819 TheReplacement
TheReplacement's picture

Wait until the SHTF and you might be able to buy Jessica Alba herself, if you have the juice and her man wants to eat more than than he wants to keep listening to her.

Wed, 08/27/2014 - 19:10 | 5151669 Kirk2NCC1701
Kirk2NCC1701's picture

Show me a beautiful woman,  and I'll show you a guy who's tired of doing her.

Wed, 08/27/2014 - 16:05 | 5150926 SAT 800
SAT 800's picture

No. It means you should buy used 90% Silver US coins. laughingly referred to as "junk coins". These can be a savings account for the next five years; t hat will very, very, likely pay "interest".

Wed, 08/27/2014 - 17:58 | 5151392 RaceToTheBottom
RaceToTheBottom's picture

I am building a small planter using silver bricks.  

A little paint and no one will know where my little precious is...

Wed, 08/27/2014 - 22:38 | 5152392 e_goldstein
e_goldstein's picture

Boat Ballast

What could possibly go wrong?

Wed, 08/27/2014 - 17:00 | 5151195 Grinder74
Grinder74's picture

ISK = Islamic State Korans?

Wed, 08/27/2014 - 18:08 | 5151367 TeMpTeK
TeMpTeK's picture

Exactly Pladizow ... rubles and yuan that must add up to current USD OIL price per barrel...Gazprom will still convert to USD..

Wed, 08/27/2014 - 14:07 | 5150101 agent default
agent default's picture

I expect gold to crash hard any day now.  Someone surely is about to dump 2000 tons of gold within five seconds at 3AM.

Wed, 08/27/2014 - 15:21 | 5150664 Bunghole
Bunghole's picture

Hopefully they wait until the FED issues me my $1 trillion dollar coin.

Wed, 08/27/2014 - 14:07 | 5150108 BaBaBouy
BaBaBouy's picture

GOLD WOARs!!!

Wed, 08/27/2014 - 14:22 | 5150218 Pooper Popper
Pooper Popper's picture

Divided States

 

Outfucking standing comment!

Nicely done.

Wed, 08/27/2014 - 14:46 | 5150428 Bossman1967
Bossman1967's picture

So this would be why everytime gold ans silver go up its slapped rite back down 30 times a day. The charts look like a bad ekg.

Wed, 08/27/2014 - 15:34 | 5150730 Max Cynical
Max Cynical's picture

Serious question...

As the dollar continues to be devalued by printing coupled with a collapse in demand (around the world), won't stock prices continue to rise reflecting the loss in value of the dollar?

Is is actually possible that we'll see the Dow at say 50,000?

Wed, 08/27/2014 - 15:47 | 5150802 RafterManFMJ
RafterManFMJ's picture

Perhaps.

But what if the DOW hits 50K and gas is $50 bucks per gallon?

Are you winning?

I recall an article not long ago where they priced the DOW over the last decade and it was a losing bet compared to things like gas, beef, bananas and so on.

And that was w/o your brokerage fees and capital gains taxes, assuming you sold.

Wed, 08/27/2014 - 16:08 | 5150948 SAT 800
SAT 800's picture

It's true but no one wants to know about it. Most people refuse to revalue their "market gains" by real inflation. Silver bought in 2004, on the other hand doesn't look so shabby.

Wed, 08/27/2014 - 15:54 | 5150853 Zeena
Zeena's picture

Until the bunker is fully stocked and all appropriate defensive measures are in place at the perimeter.

 

 

Wed, 08/27/2014 - 17:28 | 5151282 Bingo Hammer
Bingo Hammer's picture

Was it only yesterday that Obama said the US was "the indespensible nation"...perfect timing

Thu, 08/28/2014 - 10:00 | 5153473 Falkor
Falkor's picture

I wanted to give +10 for this.

Wed, 08/27/2014 - 14:04 | 5150078 Headbanger
Headbanger's picture

This forces the Feral Reserve to start jacking rates back up to save the U.S. duh-lar from being worthless as a former world currency.

Wed, 08/27/2014 - 14:07 | 5150104 Winston Churchill
Winston Churchill's picture

Lose now,or lose later,are the FedRes's only options, short of WWIII removing the

threat that is.

Wed, 08/27/2014 - 14:15 | 5150142 ZerOhead
ZerOhead's picture

The Neocons created this problem.  Now I'm afraid they are going to have to find a way to solve it...

Wed, 08/27/2014 - 19:00 | 5151631 American Dreams
American Dreams's picture

Not a chance HB.  They would destroy themselves in the process, and that, just will not happen.  New Reserve currency wocu.com and then we are Japan with a 400% debt to GDP, because it just won't matter. 

Know your enemy

AD

Wed, 08/27/2014 - 14:05 | 5150089 Deathrips
Deathrips's picture

Metals and resources are cheaper than they will be when exchanged for hourly labor than they will be for the next 20+ years....at least. WHat are you buying today?

 

SILVER!!!

 

RIPS

Wed, 08/27/2014 - 15:26 | 5150698 Cobra
Cobra's picture

Indeed. If you feel you must hold dollars, hold silver / gold dollars.

Wed, 08/27/2014 - 15:53 | 5150841 TheReplacement
TheReplacement's picture

Don't forget land/guns/bullets/food/supplies dollars.  Prepare for the worst and hold for a little something better in the name of mercy.

Wed, 08/27/2014 - 14:06 | 5150095 saints51
saints51's picture

I have to see it to believe it. The FED is a true criminal organization. I just can't see them rolling over and letting their precious dollar die in the night. I would be willing to bet they have a few tricks up their sleeve. Plus the markets are not responding to this news. Then again maybe they shouldn't.

Wed, 08/27/2014 - 14:13 | 5150158 CrazyCooter
CrazyCooter's picture

The Fed is the bad bank. All the TBTF banks offloaded their shit there. While all the TBTF banks will get bonuses, all us tax donkeys get to foot the bill. Tax donkeys can't cross imaginary lines and should get back to work.

Regards,

Cooter

Wed, 08/27/2014 - 14:22 | 5150216 saints51
saints51's picture

I look at it this way. The US dollar will survive as long as the people of this country accept it as a form of payment for goods/services. People were forced/tricked into believing it was the right currency to have, so who is to say the FED can not keep their magic show going on longer by using their propaganda machines letting the people know its the best form of currency know matter what the news states. Hell, we see this everyday in the markets alone. Markets go up on bad news every week. As long as people believe in Santa Claus December 25th will come every year.

 

But I do agree with you about toxic assets unloaded on the FED by other TBTF banks

Wed, 08/27/2014 - 15:34 | 5150737 MisterMousePotato
MisterMousePotato's picture

I look at it this way. The US dollar will survive as long as it can be used to keep the FED's collection goons, the IRS, at bay.

Wed, 08/27/2014 - 15:53 | 5150831 RafterManFMJ
RafterManFMJ's picture

Learned the other day you cannot go to Canada if you have had a DUI in the last ten years. This is a personal and heartfelt message to Canada:

FUCK YOU.

I'll not, ever, go to that shit Cuntry again nor buy anything made there.

But yea, expect in 10 years you won't be allowed to own a gun, withdraw more than 50 bucks a day from the bank, or leave your home county except for work if you have a DUI.

Because reasons.

Also expect the .gov to suddenly "discover" the link between SSRI drugs and mass shootings ... Ever been on them? No more gun rights for you.

Wed, 08/27/2014 - 16:55 | 5151169 CrazyCooter
CrazyCooter's picture

It is a legal racket (literally); you just have to hire an attorney and spend a lot of money. It isn't unaffordable to J6P, just expensive.

Regards,

Cooter

Wed, 08/27/2014 - 17:35 | 5151309 RafterManFMJ
RafterManFMJ's picture

Oh I've seen the billboard by law firms advertising such services;

Question: How big of a worthless retard would you have to be to pay a blood sucking lawyer to get you into a country that banned you so you could then help said country's economy and the slack jawed populace?

I'd like to meet such a creature someday or interview it.

Wed, 08/27/2014 - 18:27 | 5151524 KnightTakesKing
KnightTakesKing's picture

How the hell does Canada know you have a DUI? NSA supplying Canada now with private information?

Wed, 08/27/2014 - 20:24 | 5151959 ForTheWorld
ForTheWorld's picture

I'd have to suspect that data contained in the ICReach application that intelligence services in the US have access to has some sort of service that allows Canada/UK/Australia/etc. to check police records. After all, for a US Citizen to get in to Canada, you need either a Passport (using a Drivers License as proof of ID), a Nexus card or if you're in Washington State (and probably other bordering states), you can use your Drivers License.

So, using one of those identifiers, it's pretty easy for them to find out if you've got a DUI charge.

Wed, 08/27/2014 - 15:54 | 5150854 TheReplacement
TheReplacement's picture

Dollars are what they use to manipulate our wealth from us into real assets for them.  They couldn't care less about the dollar, it is just a tool.  They will find a way to manipulate the next fiat, if they haven't already.  Either way, they have what they want and we are going to get stuck with the bill.

Wed, 08/27/2014 - 14:18 | 5150196 gatorboat
gatorboat's picture

Yep, I suppose the US will invade Russia now saying Putin has WMDs.  

The WMD excuse worked for Iraq when Saddam started selliing oil for Euros.

But I don't recall Saddam having ICBMs pointed at American cities, so maybe the WMD excuse won't work.

 

 

Wed, 08/27/2014 - 14:29 | 5150279 saints51
saints51's picture

haha I don't think it would work either.. I am sure Cuba will have a role to play if the US even attempts that bullshit with Russia and China will not sit idle either.

Wed, 08/27/2014 - 15:05 | 5150570 McMolotov
McMolotov's picture

We only invade countries who pose no real threat to us. Our foreign policy is based on the schoolyard bully model. We try not to pick fights with people who can actually fight back.

Wed, 08/27/2014 - 15:20 | 5150660 mt paul
mt paul's picture

mike brown foreign policy

it works, till it don't..

Wed, 08/27/2014 - 22:32 | 5152376 Flagit
Flagit's picture

 

http://www.washingtonsblog.com/2012/01/are-the-middle-east-wars-really-a...

 

Just in case anyone wants a refresher as to what happens when you try to give the world and option outside of $'s.

I will also add that this announcement from Russia falls very close to the anniversary of Gadaffi's death.

Wed, 08/27/2014 - 20:19 | 5150718 TeethVillage88s
TeethVillage88s's picture

DTCC is said by Greg Morse to be setting up the BRICS Central Banking system. DTCC has no interest in the US Dollar if that is the case. DTCC is a holing company which produces $1.6 Quadrillion in USD Transactions in Derivatives each year. But with 110 Countries & their Central banks all set up by DTCC... according to Greg Morse... they don't care if US Dollar survives at all. Hell they own the place already, and hold all the deeds to all our assets according to Morse.

This guy has filed a law suit and researched all the Mortgage Fraud, MERS Fraud, Destruction of Deed of Trusts, REMIC Fraud as IRS Tax Free organizations, and on and on. I wonder if he has a chance and is "smart enough" to be right?

Jurat Affidavit Of Gregory C. Morse In Support Of IRS Form 211 & SEC Form TCR Filings

4. The Securities Fraud, Tax Fraud and Tax Evasion perpetrated by the majority, if not all, of the banking, financial, ratings and legal entities, agencies and firms involved in the illegal securitization and trading of fraudulent RMBS (and illegally taking advantage of the REMIC tax exempt feature of Federal Law and the IRS Code), and simultaneously committing financially motivated RICO fraud activities, has resulted in the outright and direct theft of hundreds of billions, if not trillions, of tax dollars from the United States Treasury and has resulted in the well -documented amassing of $700-800 trillion dollars of worthless long term RMBS debt resulting from the multiple trading of these illegal and worthless securities.

http://saveourfamilyandhome.com/downloads/EXHIBIT%20723%20-%20%28JURAT%2...

Website Tab DTCC 1200 pages attached.
www.saveourfamilyandhome.com - DTCC as strongest member of FED, owns the FED, owns the US Treasury, owns the Cede & Company, and owns congress... is a Self Regulating Organization.

BRICS CB & WB/IMF & New Currency for Petro Trading (146 Minutes into Video, Euroclear, Clearstream, Cede & Company, Luxembourg, Russia)
Caravan To Midnight - Episode 110 Capital Kinetics with Greg Morse
https://www.youtube.com/watch?v=HmJKrhWucC0

Wed, 08/27/2014 - 16:48 | 5151045 ChiangMai
ChiangMai's picture

"Holy shit, it's on."

Perhaps; but first, let's celebrate...

[VIDEO - 03:27] Singing Putin: 'Blueberry Hill'

..., especially considering that there's always the possibility that the defeat of the USA empire of chaos, destruction and death might somehow occur without destroying the planet.

 

Wed, 08/27/2014 - 18:01 | 5151406 Antifaschistische
Antifaschistische's picture

So...who buys the extra couple trillion in US Debt this time around?

Wed, 08/27/2014 - 14:06 | 5150088 DetectiveStern
DetectiveStern's picture

It could get truely grizzly. Orwell was right and this could be the war he wrote about.

 

Orwell called it straight after WW2. Surely he should be view as a prophet by now.

Wed, 08/27/2014 - 14:14 | 5150173 CrazyCooter
CrazyCooter's picture

If Orwell was a prophet, he would have called his book 2014 instead of 1984. Not knocking him, he was a very insightful guy, just not a prophet.

Regards,

Cooter

Wed, 08/27/2014 - 14:20 | 5150212 Alea Iactaest
Alea Iactaest's picture

Got allegory?

 

He chose 1984 because it was far enough in the future to be plausible, but not so far in the future that people would dismiss it as pure fantasy.

Also, without some completely unprecedented hijinx by certain "interested" parties, this would all have happened much close to 1984.

We can quibble about the use of the word "prophet" but not much else.

Wed, 08/27/2014 - 15:11 | 5150604 sleigher
sleigher's picture

I always thought 1984 was the jumping of the shark for Van Halen.  He knew something bad was coming, just wasn't able to nail it down to that band.

Wed, 08/27/2014 - 16:55 | 5151174 CrazyCooter
CrazyCooter's picture

That was all I was quibbling about. Thought I said so in my post.

Regards,

Cooter

Wed, 08/27/2014 - 15:29 | 5150714 Quinvarius
Quinvarius's picture

If you want a vision of the future, picture a patriot stomping on the face of a politician...forever.

Wed, 08/27/2014 - 15:14 | 5150612 Lea
Lea's picture

"Yes, war must occur now"

There won't be any war. We're not talking some defenceless muslim country here, but Russia and China, two supergiants.

The USA are mad and destructive, but not suicidal. In fact, sorry, yes, suicidal they are: they are ready to suicide us to the last one. But not themselves.

 

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