This page has been archived and commenting is disabled.
Guest Post: Gold, Oil, & 'Grandmaster' Putin's Trap
In December of last year we published an intriguing article by Dmitry Kalinichenko, “Grandmaster Putin’s Trap,” which has drawn far more attention from readers than we ever expected. It continues to be cited by many international political and economic experts. That article addressed Russia’s latent strategy to get rid of US bonds and use its petrodollars to buy monetary gold. It seemed for a while that the ruble’s nosedive late last year, coupled with the Kremlin’s reduced fiscal space, has left Moscow unable to pursue its plan to permanently diversify the international financial system. Nevertheless, taking a look at 2015, it turned out that Putin’s strategy is working quite well.
Due to invisible market’s hand the gold-to-oil price ratio has more than doubled in the past two years. While in May 2014 it costed 12 barrels of oil to buy one ounce of gold, this ratio rose to 26 barrels/ounce in January 2015 (where it currently remains). By lowering the price of oil relative to gold, it looks like Wall Street & London’s City are trying to hamper Russian tactic of buying gold in exchange for oil and natural gas (gas prices are linked to oil via BTU). However, these actions fell short of their goals.
Declining oil prices and a depreciating national currency have not led to a slowdown in the Bank of Russia’s gold purchases on the domestic market for rubles. Despite threats and sanctions, Russia has continued to add to its gold reserves. Bank of Russia bought a record 171 tons of gold in 2014 and another 120 tons in the first ten months of 2015. Consequently, by Nov. 1, 2015 the Bank of Russia had accumulated a total of 1,200 tons of gold in its reserves, which are officially the fifth largest in the world, although in reality Russia is actually in 4th place, as Germany is allowed to store only one-third of its reserves at home. In fairness it should be noted that China has not provided updated data on its gold reserves since 2009, when it officially possessed 1,054 tons. According to some estimates, Chinese reserves may have tripled since than.
The year 2014 brought Wall Street yet another unpleasant surprise. Russia emerged as the world’s second biggest gold producer, surpassed only by China. China and Russia’s global leadership in gold mining enables them to create their own currency and trading systems, built on a solid foundation of gold, which will be used by the BRICS countries as a universal unit of account and as a fixed measure of cost.
Faced with the prospect of having to grapple with a powerful Russian-Chinese gold alliance soon that will call into question the dollar’s future as global reserve currency, the United States has begun to employ all its traditional punitive measures against a country that has dared to challenge America’s financial clout in the world. Ignore all the blather about “democratic values” – these measures are nothing but a way to force Russia to sell gold.
The Russian people have heard Washington’s ultimatum and understand it perfectly: the US has imposed sanctions in order to oust the legitimate and democratically elected government in Moscow. But not surprisingly, the sanctions levied by the US against the Russian public – at great cost to the EU – have had the opposite effect. Russians have rallied around their nation’s leader, and China and Russia are now closer than ever before. The foreign policy of dictatorship of unmitigated arrogance, so fecklessly conducted by Washington, has had the expected consequences. By habitually and universally replacing the force of law with the right of force, the US has bungled away all of the political capital and credibility it had previously earned among the Russian and Chinese public.
It is China’s support of Russia’s position that is neutralizing all of Washington’s attempts to lean on Moscow. Even if Russia is forced to sell gold, it will sell it … to China, meaning that it will remain within the “gold alliance.” It is noteworthy that President Xi Jinping’s September visit to the US has not led to any substantial agreements. China is well aware that if Washington is able to sever the alliance between Russia and China, the first action of a Russia’s hypothetic pro-US government would be putting an energy garrote on China’s neck. Wall Street needs to colonize Russia first in order to subsequently colonize China. China’s leaders understand this very well. Incidentally, the same fate awaits Europe, which is yet another geopolitical competitor of the US. However, unlike Beijing, Europe’s leaders have not yet figured this out.
It is important to keep in mind that the dollar’s attacks on gold end always end the same way – in a painful knockout for the dollar. There have been no exceptions to this rule throughout monetary history. Nor will there be this time. Hence the well-known market rule: “Any maximum of the gold price is not the last one.” It would be naive to believe that this golden rule is unknown to that grandmaster of patience, Vladimir Putin, and to Xi Jinping. By systematically increasing their gold reserves, Russia and China are relentlessly moving forward to strip the US dollar of its status as a global reserve currency.
America’s standard military solution won’t work in this situation. Russia is not Iraq, Libya, or Yugoslavia. Were the US to launch direct aggression against a country like Russia, that would be their last move ever. Therefore, the White House is trying to use radical militants from Muslim and European countries as cannon fodder. There was a time when that approach was more effective. In the mid-twentieth century, Wall Street & London’s City managed to drag Europe into a war against the Soviet Union using their protégé Hitler, whom they had literally brought to power in Germany. Today Ukraine and Syria are the theaters for America’s hot war against Russia, and the European Union is the theater for America’s economic war against Russia (it is noteworthy that while European entrepreneurs are suffering under the sanctions imposed on Russia, their American competitors are busy signing lucrative new deals with Moscow).
Recently, European countries have begun to realize that Washington is simply conning them. After all, any product is, first and foremost, nothing but energy manifested in the form of a commodity. Taking its cue from America’s geopolitical ambitions, Europe is single-handedly reducing its own level of competitiveness. If we peel away the lofty slogans and declarations about “values” and just consider the dry economics of the matter, everything becomes clear: if the EU is cut off from its supply of cheap Russian energy, in addition to being cut off from the massive Russian market for its goods, Europe will not be able to survive in its present form.
Wall Street & London’s City, as before, do not know what Putin has in mind. But everyone is quite certain that Putin is up to something, and whatever that is will surprise everyone and advance the interests of Russia and its allies.
Trying to make sense of Putin’s and his counterpart Xi Jinping’s actions, Bloomberg published an interesting article six months ago about the future of the gold market:
“It would probably have to be very different than an old gold standard,” Kenneth Hoffman, the Princeton-based head of global metals and mining research at Bloomberg Intelligence… “It wouldn’t be a traditional system where you walk into a bank and you walk out with an ounce of gold. It would have to be something new and different.”
Predictions by leading Western media outlets about the imminent emergence of a Russian-Chinese alliance to revive the gold standard are heard often enough that they now seem like signals or even calls for such a step, addressed to Moscow and Beijing.
Back in the 18th century, the philosopher and writer Voltaire stated: “Paper money eventually returns to its intrinsic value – zero,” and he was absolutely right. There have been many different paper currencies throughout the history of mankind. But all of them, in one way or another, eventually reverted to zero and vanished. Those who lived during the reigns of such historical figures as Alexander the Great, Napoleon, Hitler, and Stalin honestly believed that the currency existing at that time would remain in circulation forever. But not one of those currencies still exists. And all that today’s dollar and ruble have in common with their previous incarnations from 100 years ago is the fact that their names are unchanged.
The modern dollar and ruble are entirely different currencies, with different purchasing power, and a different appearance. Some currencies die off suddenly, some revert to zero through gradual depreciation, but somehow or other they are all worth nothing in the end. Obviously, the enfeebled US dollar that has lost 98% of its purchasing power in the last 40 years (as just another unsecured pseudo-currency) is already on the brink of its natural devolution to zero.
This argument is increasingly used by advocates of a return to the gold standard. However, they forget that all gold currencies previously in circulation eventually died just as surely as the paper currencies. Why did this happen, since the gold currencies were secured by the gold they physically contained? Because any gold currency is, first and foremost, a currency with a designated value, not money based on the weight of the gold contained in those coins!
Gold currencies had a fiat value represented by the denomination embossed on them, which imposed a legal duty on all market players. This duty required that they use all gold coins exclusively as currency, with a face value specified and assigned by law. But eventually an inevitable inconsistency emerged between the market value of the gold contained in the coin in accordance with its weight vs. the fiat value of the denomination that was embossed on the gold coin itself. This inconsistency has spelled the end for every single form of gold currency throughout humanity’s monetary history. There are no exceptions to this rule, which is well known on Wall Street. It is critically important for that crowd that Russia and China be goaded into minting yet another doomed gold currency. As soon as Russia and (or) China issues such a gold currency, it will be immediately attacked by Soros and other speculators in Wall Street’s pocket like him. Whatever the face value, in rubles or yuan, that is embossed on the gold currency of Russia or China, after a while that value will begin to diverge from the value of the gold within the coin. It will become profitable for speculators to cyclically exchange paper currency for gold currency, which will deplete the country’s gold reserves and consequently lead to default.
As the situation currently stands, there is no one in the world who can answer this ostensibly simple question: why, knowing that it is not feasible to mint a gold national currency, are Russia and China continuing the rush to build up their gold reserves? Right now no one in the world knows that…. except Putin himself and his colleague Xi Jinping…
- 714 reads
- Printer-friendly version
- Send to friend
- advertisements -





Putin a grandmaster? That's hilarious. He might be a grandmaster at beating and killing people who try to get in the way of him and his crony kleptocrats. But other than that, he's a very unremarkable man.
Hilarious? Just wait for Hitlery to rule the White House. That will be some show ...
Wonder whose passport they'll find next to the dead US dollar?
15 year old Syrian stripper at the Secret Service office in the White House?
"built on a solid foundation of gold"
that is a funny thing to say because gold is not backed by anything!
hugs,
bridget
https://www.youtube.com/watch?v=ZLL2r3hXmjA#t=20s
The stupidity is stunning.
Yomutti's mom passport. Or better US Social Security card and a foodstamp that gives you only the right to suck cock as meal.
http://www.thepornster.com/video/475/homeless-blowjob-reality-porn
Putin is just another thug. He's also a shame-filled homosexual. That's why he always has his shirt off. The man has lots of psychological problems.
@ Pretty Bird Thus far your comments on ZH are inane.
If you can't advance the conversation, or at least mildly amuse, fuck off.
He's a homo cuz he had his shirt off? I thought i was feeling dandy before i got dressed this morning.
comments are mildly amusing, but still can fuck off
your freudian is showing...
and fuck off spamming your shit blog here too.
LOL !!
Didn't quite make it to economics 101. Barely made it through English 101 by the looks of it.
Things are valued (backed) by the energy used to produce them and Gold is desirable to hold.
The Dollar costs nothing to produce.
OK, so which is worthless (backed by nothing) ??!!
Jacques Rueff's
it will be immediately attacked by Soros and other speculators in Wall Street’s pocket like him
Hers is the most likely solution to that
Russia can Execute Soros and China can arrest all the wall street bankers problem solved
I still find it amazing the Britain did not drop
Soros' temperature down to that of the room he was in.
He made billions on his attack on the Pound while millions of people in the UK suffered.
In fact he committed an act of war on that country.
The British government not only had the right but the duty (to their own citizens) to kill the evil bastard.
They should have done it and then declared so publicly and gave the reason why.
millions of people in the UK suffered...
and how many ways did that hurt high govt that
were in on it?
Because we believe in the rule of law, what he did was not illegal.
The real blame for it lies with us, the British, for entering into a fantasy where we can fix our currency against an artificial peg, all in the pursuit of a European dream that certainly does not benefit the people of the UK. So if anyone should be punished for it then it should be those that tried to ignore reality in the British government by imposing this policy on the country, and not those that made money out of our stupidity.
They have to explain why they didn't do the same thing to the rest of their thieving, pedophile elites.
Well they can issue the currency and put measures in place to stop the speculators, allowing only small amounts and perhaps with justifiable reasons for the conversions, such as needing some gold teeth LOL, instead of gold coins for the barmitvazh or whatever they call it.
Or just issue metal tokens.
One ounce of platinum, one ounce of gold, one ounce of palladium, one ounce of silver, one ounce of copper. Multiples and submultiples.
And let the market determine the exchange rate between those various metals.
Contracts written in metal. Or offered at retail - one Mars bar costs one ounce of copper. And so on.
You want a contract for crude oil? One barrel of crude oil for 3.88 ounces of silver, or two ounces of silver plus 19 ounces of copper, or whatever.
I read somewhere that Mexico either had, or was planning on having a silver coin without a designated value. The value would change day to day with the price of silver.
That would be cool
I believe that is the theory behind "Freegold". The daily rate, similar to any other daily commodity fix like the oil price, would set the rate of currency exchange in a transaction. With the advent of computerized cash atm's, tellers, etc, I hardly think it's a big leap of technology. Hell, I can go into any 7/11 and see and up to the minute Megabucks jackpot being displayed.
In this manner, one could use gold as savings and the dollar as currency, as it was intended. Of course this does hinder the gov't confiscation of one's labor through inflation.
This is only part of the full article by Dmitry Kalinichenko.
The full version has a full explanation of what will do and how will do Russia and China to build its alternative world currency system.
However, the full version of this article http://cont.ws/post/92743 has never been translated from Russian into English.
All translations of this article into English, have ignored the last the most interesting and most important part of this article:
"What exactly will be do Russia and China and how exactly they will be do it very soon".
Mr. Yellen's, duh.
They found a democratic voting card too.
Are you his buddy? lmao
This yomutti guy was conceived in a drunken stupor, and then lightly swung a head about a wall, it's kind of obvious from the first his post.
Once again. Brilliant, flowery prose. Keep up the good insults against the Baltic retards.
Meh, His(Her) super power is turning alcohol into regrets! :>D
The U.S. Kleptocrats are a little more descrete about their whackings.
U>= supr~dupr Dim Sum.
You're what Lenin called a useful idiot.
A 7 week useful idiot.
You're, what we call an UC indoctrinate.
Go back to Israel, and take all those crooks from Wall Street with you.
Yomuttii "... He might be a grandmaster at beating and killing people who try to get in the way of him and his crony kleptocrats. But other than that, he's a very unremarkable man." Who are you referring to, any of the US presidents for the last 30 years?
Welcome, you 7-week-old POS.
Mutt, congratulations, you set a record for stupid.
How does an article published on Nov. 13, 2015 claim, "China has not provided updated data on its gold reserves since 2009"?
wondered the same thing m'self...
And Barry is a remarkable man?...
Perhaps remarkable to some unfortunates... but is a man?
Gold will be revalued at 10,000 febux overnight.......then let them take it..............If they do then it'll go to 50,000 fedbux the next day ...THAT is a free market. Are you gonna trade fedbux for real gold??
I do not see a way for the dollar to be revalued in gold terms...how do you see that working...and the dollar surviving.
America will need a new currency beofre we get back on track.
gold buyers like xi and putin are just filthy hoarders. real investors hoard stocks and bonds
duh
They probably are looking to have a currency like the Euro. Gold at a fixed fiat price is, I agree doomed. Gold as a reserve, MARKED TO MARKET (catch that? no one seems to) can serve as the asset of choice on the CB balance sheet yet allow the currency to float vs the value of gold. There is no need for treasuries on the CB balance sheet...just physical gold...SOROS can't touch that.
Entirely possible Russia and China are stacking primarily to keep the gold away from the Bankster Cabal. This does not necessarily mean gold is scarce. No chance in hell only 170K MT.
Where is the gold from the CB of Ukraine? Yeah I'm sure the Banksters will return it any day now.
Why won't the Fed return Germany's gold?
Putin is surrounding the Cabal from as many angles as possible and feasible.
Ukraine and Germany's gold are away for safekeeping. It ensures compliance. If Germany were to disobey on Russian sanctions, something will be confiscated for punishment. It is tempting to undermine the USD when all the riches ever produce is more wars.
I don't normally say things twice, the first post looked like not taking for quite a while.
Hey, since we're looking at the chart of the US dollar decline since 1913, let's look at one for the Russian ruble across the same time frame just for fun.
It collapsed to zero after the end of WWI and was replaced with the First Soviet Ruble.
Which collapsed and was replaced with the Second Soviet Ruble.
Which collapsed and was replaced with the Third Soviet Ruble.
Which collapsed and was replaced with the Fourth Soviet Ruble.
Which collapsed and was replaced with the Fifth Soviet Ruble.
Which collapsed and was replaced with the Sixth Soviet Ruble.
Which collapsed and was replaced with the Seventh Soviet Ruble.
Which collapsed and was replaced with the restored Russian ruble.
Which was issued on a 5.96:1 basis against the USD in 1998.
Which has effectively collapsed yet again and now trades in the 50-70:1 ratio
So it has lost, what, 90% of its value even after the last official collapse a mere 17 years ago.
Even if we disregard the two total collapses in the ruble and stipulate to the author's contention that the US has lost 98% of its value over the last 40 years, the fact that the Russian ruble has collapsed 900% against the USD since 1998 puts its percentage losses over the same period well into four digits.
Compared to this deliberate and continuous monetary malpractice, the Fed looks like a gaggle of freakin geniuses.
Let's look. You're comparing Grape Fruits with Mangos.
Typical Liberal thinking. If you make a chart, and show the decline rise vs X-Y axis, it must be true.
How's the weather on the, " Eiffel Tower"? Say hello to Al~internet~ Gore for me.
Okay, let's look at how the ruble did since 1913 compared to that decline in the USD...
It collapsed to zero during WWI and was replaced with the First Soviet Ruble. (1917)
Which collapsed and was replaced with the Second Soviet Ruble. (10,000-1 exchange, 1922)
Which collapsed and was replaced with the Third Soviet Ruble. (100-1 exchange, 1923)
Which collapsed and was replaced with the Fourth Soviet Ruble. (50,000-1, 1924)
Which collapsed and was replaced with the Fifth Soviet Ruble. (confiscatory 10:1 redenomination, no sums over 3000 rubles, 1947)
Which collapsed and was replaced with the Sixth Soviet Ruble. (confiscatory 10:1 redenomination, no sums over 3000 rubles, 1961)
Which collapsed and was replaced with the Seventh Soviet Ruble. (three day exchange window, 10:1, no sum over 1000 rubles, 1991)
Which collapsed and was replaced with the restored Russian ruble. (1000-1, 1998)
Which was issued on a 5.96:1 basis against the USD in 1998.
Which has effectively collapsed yet again and now trades in the 50-70:1 ratio.
Weather in Centennial State good, but a storm front is expected over the next couple of days. Will send Al your kindest regards if I ever happen to run across him.
You're using the currency trade to conflate economic and fiscal management.
I'll spare you the argument of history and hedgemony.
I'm using the historical record to refute someone who wishes to accuse the US of acute fiscal malpractice while simultaneously stroking Russia for being a paragon of fiduciary virtue-- which it clearly is not.
The Fed are not nice people when it comes to upholding the intrinsic value of your money, but they are indeed wizards in comparison to the record rolled up by the Russians over the last century.
Get back on the boat.
Why is it so hard for people to accept the reality that all governments currently in existence are out-of-control oligarchies propping themselves up with state power, massive propaganda, and theft of private assets?
That they won't hesitate to plunder their own people if they cannot find someone else to prey upon?
That they will never, ever sacrifice their own personal interests so that you can live in a safe, prosperous, and lawful society?
Preferring the Rule of Gangster A over Gangster B does not seem like much of a choice to me. Away with them all.
"all"?
Sure. Clean slate.
ALL OF THEM!!!
OFF WITH THEIR HEADS.
HANG THEM ALL FROM THE LAMPPOSTS.
I'd season that dish with a considerable helping of St. Helena. All I ask is that they get pried away from the levers of power and prevented from returning.
All. So long as you are not using force against the person or property of another, no one has a right to use force against you to make you do X, Y, or Z. Anyone who does is a criminal. That he chooses to wear a fancy costume or shiny badge and call himself government does not somehow endow him with superior rights than you.
Funny how reserve currency status transmogrifies fraudulous accounting into wizardry.
When US dollar evicted as reserve the laughter of wizards will somehow discontinue.
When the US dollar gets evicted from reserve currency status, which is a definite possibility but not super imminent due to the lack of a credible contender, NOBODY will be laughing. Wizards, ostlers, swineherds, and knights errant everywhere will all feel the burn.
This is what happens when you allow governments to have power-- they start using it for their own benefit and not for the benefit of their supposed constituents. Away with the idea of giving government the power to do anything, because ultimately it is all about taking from one person to give to someone else-- with a very hefty commission for themselves thrown on top of the transaction.
It would be cheaper if you just got robbed directly by the people you are supposedly "helping". Conversely, you would get more "help" if you simply stole it yourself rather than hiring a bloated bureaucratic crime syndicate to drop off your skimpy cut of the loot at your door.
But then all of those public "servants" would need to get actual jobs and work for a living. Can't have that. Yay, Putin. Yay, Obama. Yay, Chinese dude-- whatever your name is.
No doubt the Russian currency has had several marks to the market in the last 100 years. The political domination by the U.S. has certainly had much to do with the Russian misfortune. Now the over extension of the U.S. and its financial come uppance is at hand. The mighty will fall due to its arrogance and greed. So yes your point is well taken on the PAST. Will the Russians rule who knows? Will the U.S. hegemony survive....NO. The U.S. has much further to fall the loss of faith in its corrupt and doomed systems is gaining momentum.
Russia has it baggage too but it still has great physical wealth to harvest. The U.S. is burdened by montrous legacy costs and massive social /racial over burden. Not to mention an robber class of skimmers fully empowered by its elite. Like a prize hound covered with ticks and infested with blood sucking worms. Still on the hunt but failing more by the day. A pathetic desperate sight. A hollowed out carcass.. The epitomy of corruption and decadence a disgrace in motion. Bankruptcy over runs Legitimacy.
You see, this is exactly my complaint. Everyone is very keen to point out the many faults of the US, yet assumes that everyone else is at least a little more virtuous, a little better, a little more endowed in some way or other. And thus more deserving of support.
I see them as a united confederacy of swollen oligarchs who have taken control of every society everywhere. Cutting the cancer out of one region will not save the global patient. These crime lords and their supporters and dependents need to be excised from every society everywhere or the cancer will once again puke out from whatever safe lair remains to it.
Finish the job and sweep them all away.
And you always very keen to point out the many faults Russia.
Black kettles and pots.
I am VERY KEEN to point out that ALL GOVERNMENTS in existence today are ALL morally corrupt and reprehensible.
My fondest wish for Russia and the Russians, including (presumably) yourself, is the same wish I entertain for America and China and everywhere else.
That the yoke of state power and mass media delusion should one day be stricken off their necks and ours, and that we could then all live as brothers in freedom and at peace with one another. Call me crazy, but these things CANNOT happen so long as the current crop of authoritarians sit on their thrones everywhere.
You make very good points and I agree. The negative reaction you're getting here is because nearly everyone is focused on the more immediate problem, which is the west being the bigger dickheads at the moment.
You can't just 'sweep all governments away.' Even at a tribal size, humans form rules of governance that they agree to live under. This opens the door to corruption through deception.
Most people haven't thought this through. Most believe it is impossible to devise systems of large-scale governance that can withstand the corruption that results from humans' deceptive capabilities. I believe it is possible, though it will take thorough demonstration to get people to understand it. I think the way to do this is through the free market - a more efficient system will eventually win and a system with significantly supressed corruption is, by nature, substantially more efficient than a system that more weakly supresses corruption.
Back to the west-vs-Russia+China issue: You're point is moot with this audience without a solution to the universal bad-guy theory you're proffering. Sans such a solution, the best outcome for most in the current zeitgeist is for the west to lose their hegemony.
What's wrong with calling a dickhead a dickhead, regardless of his relative ranking among dickheads?
Men do not need governments and their aggression to live. This is a myth promoted by, guess who, the people who get to call themselves government leaders or profit off purchasing government privilege.
Voluntarily chosen leaders who attempt deception lose their position the second they are uncovered or a more effective (uncorrupt) leader comes along. So long as individuals are free to choose a different leader or none at all giving him as little or as much of their cooperation as they want to, men can remain free yet still work within voluntary hierarchies as they find beneficial.
The forces of competition flush out corruption. Corruption is only possible under conditions of a violently enforced monopoly like government.
Nothing is wrong with calling a dickhead a dickhead. However, claiming that humans "don't need goverment" ignores the natural human instinct to form groups with government (tribes.)
A white lie is technically 'corruption.' I agree that large-scale corruption is only currently seen with large-scale government/management structures. However, that's a matter of definition.
I'm glad you didn't say that large-scale government will always cause corruption, because that would mean that you've conceived every possible form of government, which is not possible. I don't exclude the possibility that someone will devise a form of large-scale goverment that removes most large-scale corruption as a consequence of its structure.
" Call me crazy, but these things CANNOT happen so long as the current crop of authoritarians sit on their thrones everywhere."
Call me crazy, but these things cannot happen as long as long as the current crop of sheeple remain braindead while sitting on their asses everywhere.
I will agree with that.
But when you suggest that I should trust the Bank if Russia over that of the Federal Reserve as you did below there seems to be some inconsistency.
Tom, the above post was intended as sarcasm for someone who suggested that everything bad that ever happened in Russia was the fault of the evil Jews.
Their own worldview claims that it is now a utopia and a sturdy, reliable opponent of the universal conspiracy against human liberty.
If this be true, then that is the safe harbor they should rely upon. But they do not because they are not willing to do insane things with their own money.
tarabel
Who, and what institutions, funded the Bolshevik Revolution???
Are they the same institutions that installed the former Soviet Union leadership?
While you are distracted by Nationalisic pride the shadow rulers shake and move the World.
The former Soviet Union is not today's Russia anymore than today's'Germany is being run by the Nazi Party or the Stazi...
You ought to read some Antony C. Sutton. I know that Al Gore would be very disappointed that you actually sought out the truth because it is inconvenient after all.
Here is a good one to start with...
http://reformed-theology.org/html/books/bolshevik_revolution/
I just wonder if those Wall Street Bankers had anything to do with the raids on the former Soviet Union Rubles...Hmmm.
Yeah...Like Soros raiding the Bank of England??
Nah...They are just too damned principled, right?
And of course a visiting scholar to the prestigious Hoover Research Institute at Stanford University, and Professor Emeritus of History at the University of California at Los Angeles, is just some hare brained conspiracy theorist, right?
Then you can read about how Wall Street installed Hitler...
https://www.voltairenet.org/IMG/pdf/Sutton_Wall_Street_and_Hitler.pdf
But there are none so blind as those who refuse to see.
Well, of course everyone knows that the Soviet leadership cadre was installed by Ludendorff and the German General Staff, but I don't see how that helps you all that much since he was not a Jew nor was the OHL a bank.
What's wrong with Soros raiding the Bank of England?
Come on, fess up. You HATE the Bank of England. Why isn't he your hero for ripping them off for a cool billion and making them squeal like little girls?
Oh, you don't like what he did with the money he got. Well, that's his business and not yours, right? Or should he be compelled to surrender his fortune to someone who is better qualified to judge how it should be spent?
I detest ALL CENTRAL BANKS equally.
Who financed the Bolshevik Revolution? Was Leon Trotsky on Wall Sreet?
Why are you bringing up the Jews? I do not give a damn if they were Jewish or German or English.
Sutton is not an antisemite.
My foster mother was Jewish-Christian.
So fuck you.
I can't say that I detest all central banks equally, but I certainly do so generally. There are certainly some who are more of a danger than others. The Fed is certainly a huge risk to everyone, while the Bank of El Salvador can only do limited damage no matter what they are up to-- if anything.
I'm sure you realize the usual meme around here is that "bankers" is shorthand for "evil Jewish, or zionist, or zio, or ZWO bankers", you will have to forgive me for making a quick assumption as to your bona fides.
But I do not, and will not ever, excuse the actions of the actual actors in favor of whatever backers that might have been behind them. Every soul possesses free will. What the Bolsheviks did, what the Nazis did, what everybody does, is ultimately their own responsibility--no matter who finances them or eggs them on. In this regard, I reject the notion that bankers are more guilty than the people whose deeds they finance. At worst, they are equally guilty.
Apology accepted.
There is, however, the complicity of the Minor Central Banks with the Major Central Bans that allow the evils to maniifest.
Without the cooperation of the minor Central Banks the Major players would be powerless as the corruption would be exposed by the minors.
That is the reason that I hate them all equally. They are all in it together...except Iceland...who had the intestinal fortitude to stand up to them. I was impressed by that and it does give me a glimmer of hope.
1917 to 1998 = zio rule of Christian Russia. When Bolshevik non-Russians and non-Christians murdered 25 million Christian Russians.
Now that they're free and Christian once again, it should be a great place to store your gold and cash. Totally safe from the Jewish-Capitalist Fed pigs in the USA.
No tarabel...it is not
The choice between the lesser of two evils is always a choice for evil and I will not fall into that false dillema paradigm..
If you do not hold it then you do not own it.
And what?
US dollar collapsed 1933 with FDR gold confiscation, revalued from 1/20 troy oz. to 1/35 troy oz.
US dollar collapsed again 1965 with LBJ discontinuation silver coins the minting.
US dollar collapsed again 1971 with Nixon default on Bretton Woods the gold window closed. With pure fiat money printing since has the collapse avoided by way of perpetual value decline.
Also you avoided the mentioning since over your indicated time span the US has the foreign currencies, and includes the ruble, manipulated and ruined with deliberation to this day continues.
But hey, cherry picking is solid American tradition.
And yet, no matter how much the USD has fallen, the ruble has fallen EVEN FARTHER in relation to that ever-dropping buck.
Again, I'm not saying that the Fed has done a good job, merely that Russia has done a worse job.
You have remarkable selectivity reading.
Taking the First Soviet Ruble as a baseline 1...
10,000 x 100 x 50,000 x 10 x 10 x 10 x 1000 means that the ruble collapsed to 1/ 5 quadrillionth of its original value -- not counting the three enforced confiscations of sums above a very nominal 1000-3000 of the old inflated rubles of the previous series, or the later 90% drop in the value of the current ruble over just 17 years of existence.
That makes the 95% drop in the USD over the same period of time look pretty darn good in comparison. But only in comparison. It's still a question of stealing money from private holders for the benefit of the government(s) in question. Stealing is stealing, any way you slice it.
Do you read it any differently?
Ah, such exemplary delights the maths provide. Yields the degree of adequation nearly that of measuring the area of a spherical horse in the vacuum.
What?
First you wanted to talk turkey on the numbers and now you want to fall back on effeminate world-weary mockery once I lay some out for you to comment on.
An slkava na nak tafaya egon sklurk yabba-dabba-do. Or don't, if you prefer.
These words to you remain invisible? Urgently to eye clinic if still unseen:
Your maths are enchanting and somehow diminished in stature when placed next to subterfuge over decades by reserve currency maintainers.
Excuse me sir, but if someone will with the Papuan talk, on unfamiliar language, that Papuan does not understanding, will you blame Papuan or an idiot, talking to Papuan in an incomprehensible language?
Go to the forest, please.
Huh...........??
True but Russia doing a better job now.
You have Russia confused with the USSR.
The dollar will collapse as soon as we run out of zeros.
No doubt.
But, again, I am not suggesting that this is not happening, but merely that other central banks are not watering holes for angels.
Yes. Bet on the Russians to survive. That is what they do. Bet on the Russians to win? Never. The Counter-Force to the West -- what I call the forces of Destruction -- will appear to be winning through 2019, but then they will collapse. We collapsed in 2001, although we pretended not to. 18 years of creation (1983-2001) followed by 18 years of destruction (2001-2019). In 2019, the West will rise from the dead again.
Remember how close to victory the Russians were in 1983? The Queen of England was so scared she was even practicing her speech of the beginning of World War III. Russian agents tried to kill Reagan and the Pope. Russia shot down flight 007 filled with South Korean citizens. WE decided the war had to begin. The Queen agreed. But look what happened to Russia from 1983-19992. Then Russia joined the Capitalists. Russia and Isis and Islam appear to be winning. But God will take away their victory in 2019. The Lord gives; the Lord takes away. 18 years of power; 18 years of demise. To the West also. Eminently fair.
You need to have a very high IQ for compare to each other old royal ruble, ruble USSR and the Russian ruble right now.
A comparison of the purchasing power of currencies from three different countries - it is certainly top of genius! Bravo, I take my hat off!
And you are making at times there a comparison in value to the dollar let alone gold, so I think it is a fair point to say that the dollar has done a lot better than the Rouble.
There then comes a significant factor for any currency, the economy, the dollar has lost a lot less value then the Rouble for a reason, because the US has more capitalism then Russia/Soviet union, central planning doesn't work. So I then have doubts about any Russian or Chinese currency, while I like a lot of things Putin does he is no free market capitalist, but no one is perfect, and the Chinese have profited from running a slave labour gig with their economy.
Is it really in either of their interests to pursue a gold back currency to further personal liberty (the liberty of being free to spend your wealth as you please)? Unfortunately I do not believe they are doing this, at least for this reason, the Chinese especially are believers in state spending so they will want a currency that supports this.
Of course the US dollar looks better than the Russian ruble or the Zimbabwe dollar. I do not see that someone here is arguing against this fact.
But if the government of Russia or Zimbabwe have the ability to print on a printer that the rest of the world should be seen as "money" under the threat of military destruction, in this case the US dollar would have looked worse.
Moreover, if the world's reserve currency has been the Zimbabwe dollar, then all of the most significant achievements of the high-tech, belonged to Zimbabwe, but not the United States.
It's very easy to push the button "print" and buy all over the world the best minds and the best equipment.
And it's very easy to push the button "print" and to have the largest in the world expenditure for the army.
What a "a great" (except the Great Depression) had the United States, in those times, before the national currency of the United States became the world's reserve currency?
OK, I had to upvote you - full marks for balance and context. You did smoke out a bunch of anti-American russophiles.......good work!
Gold reserves augment reserve currency status. And that is why the United States of America is losing the war to control World Reserve Currency, and status, and China, and the Russian Federation, are winning it.
All China needs to have their currency dominate is the backing of the Russian Federation, and their gold reserves. And that is what they are up to given the incompetence of the USA to know enough to bolster their gold reserves instead of relying on that fiat paper shit that few in the world will want to wipe their arse with when this currency supremacy war is finalized.
Once again America is shit out of luck and up Shit Creek in a leaky boat without a paddle.
Yeah, like my Dad used to say-- He's got so much water on the brain he's got a creek in his neck"
Got it. Good one.
OT
Happening Now!
FBI: Weapons missing after break-in at Army facility in Worcesterhttp://www.whdh.com/story/30523224/fbi-weapons-missing-after-break-in-at-army-facility-in-worcester
Tick
Tock
It is very tempting to develop strategies to undermine USD when they keep spending it on wars. Some people like me are naive, played in the rubble and don't find wars attractive.
The world is developing a new monetary system.
It is the result of new thinking about money itself. It began long ago even before Rueff but continued to be flushed out until the makers of the Euro put it into action.
The functions of money will be split. Fiat currencies will persist as the various media of exchange. They will not be hoarded and will therefore not tend to need to be created in excess. The store of value function will be taken by gold. From Central Banks to peasants in India the world can use gold as a way to back currencies and save. If a currency is over printed then the price of gold will rise in that currency. Holders of gold in that currency zone will see their purchasing power preserved.
The structure of the Euro is practically shouting the strategy to the world but not a single monetary thinker (beside Fofoa) has even taken note...not one in the 5.5 years I have been reading on these topics....not ONE.
You'd think that the structure of the Euro and it's 10,800 tons of gold wold at least get mentioned....nope...
I don't think many people understand the plan.
It will not be good for the dollar.
Very insightful article. Brought up some points i either didn't know or had forgotten. Thanks for the post!! Milestones
Hey State Dept and zio trolls who troll about ZH man love for Putin. It may not be that many hear love Putin. It is in some part how much we hate the evil scum who are attacking Putin.
The other thing is we like watching Putin rub ZATO/ZWO (and evil evil western politicians) faces in their own dog shit.
Finally, I like the Russians. They are serious people. the men do not cheer on Trayvon thug ballplayer-rapists like white American men.
Thugs??
If you value your life then do not fuck with the Russian Mafia. They are as vicious as any gangsta over here in the States.
They are no better than us. They are not any worse than us.
They are Human Beings with all of the same virtues and the same flaws.
The grass is NOT GREENER on the other side.
I believe you are fundamentally correct, Tom. However, here in the US (and esp. Europe) we seem to have been infected with some parasitic meme of political correctness that is curiously absent from other cultures. It is crippling and ultimately fatal. I liken it to the bee parasites destroying hives. I find it even more remarkable that the most ardent practicioners of early Marxist-Leninist ideology-China and Russia, seem unaffected by our PC disease, which has disconnected most of our population from reality.
Any social anthropologists lurking about?
Lately I've been watching the new fashion: If a person stands on the positions of truth, morality, goodness, family values and justice, WH trolls always will announced him as "fan of Putin." LOL
***
Anecdote of the day:
U.S., Yale University professor in a huge audience reads students a lecture on civics:
"We have to promote in our country universal moral and ethical values. We need to educate society of people who can think, and be honest and decent."
Professor interrupts hysterical cry from the audience: "Stop! Stop immediately your pro-Putin propaganda!".
"In fairness it should be noted that China has not provided updated data on its gold reserves since 2009, when it officially possessed 1,054 tons. According to some estimates, Chinese reserves may have tripled since than."
I like those 'some estimates' dudes - they really know their shit, but not from Shinola...
estimates, yeah, opinions too says the ratings agencies. Don't forget 'forecasts', and 'projections'. My personal favorite is 'longitudinal studies indicate', and 'peer review indicates'. If only I could get a job on Wall Street writing their spew. At least I would be creative and embellish things for creative prose objectives. I like listening to Bloomberg New York Radio for those catch phrases, and buzz words, every once in a while. It's like listening to the K-Tel guy bark out a commercial for the Walmart of Economics. I marvel at the level of economic fascism displayed in the belief systems of these radio shills for Bloomberg.
Purchasing power the dollar? A loaf of GOOD bread was 5 cents in 1905. How much is it now?
Thanks "Fed" assholes.
$5+
And Monsanto style.
as are you.
To support the Dollar and other fiat currencies gold must be supressed in real terms.
To suppress gold in real terms the US has lowered the price of oil?
Um... Wouldn't that be RAISING the price of gold in "real" terms????
BTW... We know that PHYSICAL INVENTORIES of oil are at capacity... and growing (because tankers are being left at sea full of oil).
How did the US get the other oil producers of the world, including RUSSIA!!!, to go along with their dastardly plan by producing too much oil??????
We know how Gold is suppressed. If is suppressed by sales contracts for gold which 'accidentally' can't be filled, and are reimbursed from newly printed dollars.
So...
If the US can't produce gold at will, why should I believe they CAN produce oil at will?????
Because they are ALL in it together.
I am waiting to see the White House (gay house now) burn
with radiation
& no survivors in DC
The center of all evil on earth
vatican city, london, tel aviv, the beast has more than one head.
And the beast is not confined to this dimension.
Forget about the District of Columbia? (IMF)
How about Basle,,,er Basel, Switzerland as it is now spellled? (BIS)
What about Brussels?
Wall Street?
what benefits usa could get if they abadon the reserve currency status?
You could use the US paper currency to heat your house, if you have a fireplace or wood stove. Or if you have a table that rocks you could fold up the bills to wedge under one of the legs. Lots of benefits. You'll see.
USD would tank like nothing before.
the chinese tackled the gold problem in another life. the pms purchasing power was based upon the weight of the coin. the description of the coin, posted on the coin, was in term of weight.
it is clear russia and china will establish a more real currency system based upon something that includes gold or just gold. if they are able to establish a gold standard currency system, even within a closed system amongst important trading partners, the dollar is dead.
One mints gold and silver coins so citizens have money to trade with. This builds a civilized economy.
Dumb Germany
-lost it's gold
-overrun by refugees - lost its heritage, soon to have ISIS blow up the place and rape the girls....
-lost jobs to dumb sanctions
-VW to be bankrupt by USA jewish lawyers, fines from US jewish Gov
-DB to explode due to jewish traders, fined by US jewish gov
dumb dumb dumb dumb dumb Germany...
Jewish revenge continues... soon Germany shall be KAPUT
What is baffling to me, is knowing that
a) the USA is fighting an assymetric war, including a financial and currency war, against both Russia & China
and
b) Russia and China are both still actively buying gpld
and
c) they are both dumping US Treasuries to do that.
Why does the USA not allow the price of gold to rise to make it more expensive to accomplish that?
Because they are ALL in it together... For the second time... This thread.
Possibly, if the "they" refers to the Central Banking cartel and not the governments.
cause that would lower the value of the dollar.... high dollar crushes ability of foreigners to repay loans in US dollars. As well as other tricks...
That can't be it, the US is a net debtor nation and it is getting worse.
http://www.financialsense.com/contributors/leslie-cuadra/2011/08/31/list...
Because as hinted by an Austrian Central Bank official, the Chinese are the manipulators. They are accumulating all the gold they can before this thing blows.
CORRECT!!! and when this thing blows the price of gold will skyrocket. Who will be in the winners circle then? Those who have a lot of gold....again, China and Russia. Also, with the Chinese trying to gain control of gold pricing through the Shanghi index, that would just make it a win, win, win situation for them and Russia.
I predict that when the 'controllers' who determine SDR and global exchange rates etc; finally jettison the dollar as global reserve currency, that fiat will be used for local exchange, backed by gold, and int'l trade will be conducted digitally some how.
The world reserve currency has always been backed by armies, I predict that will not change. Almost all transactions are digital now, that will not change anytime soon either.
The only reason the EU does not deal with the US policies is because all the politicians have been bought and paid for.
Neither China or Russia can allow the other to fall as it would make them next top of the US economic hit list.If anything now is the time for China using Russia as a missile shield finally achieve ascendency. You see the USA loves to hate Russia so nothing new there then and the perfect shield.
Look at the presidential runners and see what is in store for US.
"The fish starts rottening from the head."
The leaderships of both the Democratic and Republican parties are so corrupte morally that should they don't reform US will be hit by a political, financial, and socials huricanes.
You can't have morons running big corporations and have them successful- It is impossible.
By buying us debt or dollars as reserve they are funding the very military that threatens them. It is not a positive choice but a negative one.
If all fiat bites the dust that will be the end of a nasty experiment that has plagued the world for centuries.
From that point on everything will be valued as a percentage of or as multiples of an oz of gold or silver. No more currencies.....just money.
Things have not been better in Russia in -literally- a thousand years. Until one can come to an understanding of why that is, their understanding of what Putin is up to is dubious.
I do not think Putin is doing anything but furthering that positive paradigm for Russia. And this is why his people love him.
So whenever I read that Putin is rocking the boat, I say to myself, "Bullshit." Putin has no incentive to rock the boat. He only has an incentive to continue to improve conditions in Russia.
And doing that requires holding his cards close to his chest, and continuing along the same path which has brought Russia so far, so fast.
I'll let you decide what that path has been that had propelled Russia to its greater stature and security in the world. It should be obvious.
"As the situation currently stands, there is no one in the world who can answer this ostensibly simple question: why, knowing that it is not feasible to mint a gold national currency, are Russia and China continuing the rush to build up their gold reserves?" ... I would direct the author to the writing of ANOTHER and his friend via FOFOA... why indeed would a nation go down the failed yellow brick road of a gold standard when they only need unshackle gold from it's monetary chains? When the stacks Over in China and Russia are 'sufficient' all either of them need do is bid for gold in the open market, you can bet with USD/Bonds. :D. I wonder how much gold will move when 1 Trillion in US bonds get put on offer for raw tonnage?... let's see 1T USD would buy, at current 'prices' 925,240,562 troy Oz or roughly 28,777 metric tonnes. I'm sure this is chump change for the comex or LBMA.
Just see next year. It's started this year alright. Those of you that reads Russians/Chinese news? Knows what happens.
I'm not i the mood of explaining. And actually i don't want to tipped the Russian/Chinese hatters. I did explain it on other forum alright.
So, we'll see next year..
Will the pedophile politburo of traitors in BrUSsel$ dare to tell USSA to go to hell? Never, as long as the NSA GESTAPO and all the sundry peeping Toms, and voyeurs that EuroPeons call their "intelligence services" are on the payroll of the Washing town thugocracy. However, as the €uroPeons collectively sicken of being overrun and slaughtered by USSA'S liver-eating I$I$ ghouls, (the defenders of the Saudi Mercan petroscrip dollah) it is inevitable that the politburo in pedophile BrUSsels collapses into insignificance as Urupp itself breaks apart and the former nation states recover some semblance of sovereignty.
Either way the stinking albatross of USSA and the crazed neocon filth that feeds it will not survive the coming conflagration that in their perversion they have spawned.
Boy, the trolls were up early this morning. Guess it didn't snow in St. Pete. Zdras voi tia
built on a solid foundation of gold, which will be used by the BRICS countries as a universal unit of account and as a fixed measure of cost.
WOW....that sure seems like the text book definition of the gold standard, or should I say a gold backed currency.
We will be using the USD for toilet paper before long.