Russia Stockpiles Gold, But Why?

Authored by Tom Lewis via GoldTelegraph.com,

The US’s overhang of debt and looming trade war is worrisome on many levels as the value of the dollar keeps decreasing and the national debt spiraling. So, what should we make of the fact that the Central Bank of Russia has been steadily amassing vast gold reserves since 2015? By the end of 2017, its total gold reserves rose to 1,828.56 tons, usurping China’s place as the country with the fifth largest gold reserves.

Russia has been aggressively increasing its gold reserves for a reason. It has seen the US dollar dominate as a global currency and is working with China to end the US/Western currency supremacy. Their strategy appears to be working. Russia and China are in the midst of rumors of introducing gold-backed futures to circumvent the U.S dollar. 

The US dollar has had no gold-backing since 1933, nor has the US increased its gold reserves for a decade. See chart below.

With  speculation of Russia and China working on a gold-backed currency, a shift in monetary power from the West to the East seems to be their ambitions. The situation between East and West is exacerbated by recent tensions between Russia and the UK, since the alleged Kremlin poisoning of former spy Sergei Skripal and his daughter. British Prime Minister Theresa May has ousted 23 Russian diplomats from Great Britain. Geopolitical tension is once again, high.

It seems Russian may have tossed aside Das Kapital as its economic guidebook. Not only is creating a gold-backed currency appearing more likely month over month, but Russia has also brought inflation way down over the past decade. More importantly, Russia continues to lower their national debt, while the US has been increasing its debt to a record $21 trillion.

Russia’s financial strategy is making the country less vulnerable to volatile geopolitics. Not only is it a significant player in gold, but it is also the world’s third-largest gold producer, with the Central Bank of Russia buying up its supplies. During the past decade, Russian has mined more than 2,000 tons of gold, with tonnage expected to increase by 400 tons annually by 2030.

Russia and China understand the value of real, physical gold, a lesson that the US has forgotten while reveling in worthless paper currency.

If Russia and China establish a 100 percent gold-backed currency, it inevitably changes the game in the West. The dollar will continue to devalue against gold at a rapid rate.

Ultimately, the battle will not be Eastern vs. Western dominance. The real battle long term will be between the US dollar (fiat) and gold.

But remember:

Comments

Government nee… JimmyJones Tue, 03/27/2018 - 08:57 Permalink

Russia and China have placed their bets on long-term PHYSICAL assets, infrastructure, and realpolitik.  The West has placed its bet on fiatbux, technology for controlling/watching others, 'diversity', and global .gov.  Which side of this trade would you rather be on?!?  If it comes to getting into a trench with the individual next you, which way will the tranny-queer, the raghead, and the nigger shoot?  At you, or at the other team?!?

In reply to by JimmyJones

Oldwood Government nee… Tue, 03/27/2018 - 09:21 Permalink

Gold might seem like a physical asset, but what does it do, produce, create? It is a STORE of wealth, not a producer of wealth. For all the nations hording gold, what else could they have done with that money, what investments in actual production, technology, etc. could they have made?

Gold is only "smart" for "end of times" scenarios, not growth. Very pessimistic outlook, possibly well deserved, but nothing good will come of it. The economy is a delusion ever since it diverged from barter. If that's what we want to go back to, then lets embrace its reality....look closely at that life style absolutely dependent upon reality, digging your food from the soil. The END of entitlements.

In reply to by Government nee…

Karl Marxist Oldwood Tue, 03/27/2018 - 10:11 Permalink

Leave my fucking "entitlement" alone. I worked long and hard for it, motherfucker. Other than that, you're right on the money about the uselessness of gold which, those who HODL theirs, might use it for barter at some point.

Because money is an idea backed by confidence. What confidence will there be if only a few have all the gold? Why all the cheerleading for gold when it is completely a bankers' game? Gold backed paper means centralized power. Cryptos are the future as they are the most equitable for all humanity.

In reply to by Oldwood

jin187 Bay of Pigs Tue, 03/27/2018 - 10:41 Permalink

He's right.  When shit hits the fan, the people with the gold will fall somewhere between irrelevant, and tangos.  Remember that the vast majority of people in this country, regardless of their wealth, have no control over the means of production, don't know where their food comes from, and don't know how to make anything.  No one will be trading their last can of beans for a gold brick.  By time the dust settles, and gold is worth something again, the original owner of the gold is likely to be long dead.

In reply to by Bay of Pigs

PrayingMantis DownWithYogaPants Tue, 03/27/2018 - 14:38 Permalink

 

... “if Russia really kicked out Rothschild bankers?”...

... there were some noises out there, but it’s difficult to prove the veracity of the reports ... however,  I’ll leave it to the reader to decide their “truthiness” ...

... >>> ... “Putin Has Banned Rothschild And His New World Order Banking Cartel Family From Entering Russian Territory”

>>> http://csglobe.com/putin-banned-rothschild-banking-cartel-russia/ ... 

... here’s some other reading materials and infos from the same source ...

... >>> “Rothschild Bank Now Under Criminal Investigation After Baron David De Rothschild Indictment” >>> http://csglobe.com/rothschild-bank-now-criminal-investigation-baron-david-de-rothschild-indictment/

... >>> “Rothschild & Rockefeller — Trillionaires Of The World” >>> http://csglobe.com/rothschild-rockefeller-trillionaires-world/ 

 

... and here’s a chronological summary of how the (((Red Shield))) came into being ... >>> https://politicalvelcraft.org/rothschild/ ...

 

... there’s something to remember ... Russia is debt free from the (((Red Shield))) cartel ... they, along with the rest of the BRICS consortium had formed the BRICS bank to eliminate their dependence from (((Red Shield-owned))) IMF, World Bank, BIS ... and they are ready to detach from (((Red Shield-owned))) SWIFT ... https://www.rt.com/business/422103-russia-swift-shutdown-rosneft/ ...

 

... by these actions one can safely deduce that Russia has, by their actions, kicked the (((Rothschilds))) out of Russia ...

 

In reply to by DownWithYogaPants

MEFOBILLS Oldwood Tue, 03/27/2018 - 13:44 Permalink

Oldwood,

I've studied all the gold systems from the past.  I'm also the one that keeps reminding ZH readers that money's true nature is law, not metal.

But, the fact of the matter is, we live in a debt instrument world, where said instruments are used to hypothecate bank credit.  

The actual best kind of money fluxes legally in relation to goods and services. We could use this kind of legal money to buy and sell from each other, so it would be a one to one relation.   But, we don't have that, we have private bank credit that we use.

But, here's the rub.  Russia or China can back their currency, or futures, or whatever with an escape clause.  The escape clause is basically this:  You can exchange into gold, and then go anywhere.  

In other words it UN-SILOS (is that word) the Ruble.  Certain gold backed instruments within Russia, denominated in Rubles, allow escape to Gold.  Gold in turn can typically be sold anywhere, and typically gold does not decline.  

This is not GOLD AS MONEY, but instead is gold backing.  Two different things.

I believe Russia is still a party to BIS basel rules which determine capital ratios. In other words, some loans need less reserves on hand than others.    A house is a good capital risk, so the set aside into reserves is smaller.  (Hence part of reason for housing bubble.)

Atlantic Integrationists still control Russian central bank.  However, using Rubles to buy Russian Gold Production, means that Russian Gold can be monetized and stuffed into central bank reserve loops at any time.  This then allows Ruble Emission.

In other words, even the Rothschilds and City banks, when they made up Russian Central Bank Charter, did not disallow gold from being  a capital asset within its reserve loop.  

The gold play by Putin is a smart one.  Putin is no dummy.  

As an aside, he did get elected with enough margin to sideline the Atlantic Integrationists by going for their jugular.  But, then the west would go even more berserk than it already is.

 

In reply to by Oldwood

Theosebes Goodfellow Government nee… Tue, 03/27/2018 - 10:01 Permalink

Really Tom Lewis? You really don't know why Russia is "stacking"? After that dog-and-pony show our GS treas sec Munchkin put on visiting Ft. Knox?

Jim Willie, (who occasionally sounds to me like an agitated Rick Moranis), thinks that the US depositories hold two 55 gallon drums of Gold Eagles and the rest of it is nerve gas, (no 8100 tonnes). He may be right. I'm of the mindset that says we should have 24 hour live video feeds of the inside of our reserves. I want to be able to go to my computer at 3am and look at stacks of gold bars my country holds for me and my fellow citizens. It nourishes trust. But that ain't gonna' happen.

The government is run by the CIA and Wall Street Banks. It'd be great to go back on a gold standard, but that would require the USA to actually own some. What are the odds of that?/r

Say..., what's in your safe?

In reply to by Government nee…

Adolph.H. Troy Ounce Tue, 03/27/2018 - 07:08 Permalink

Money changers menu du jour

Appetizer:

  • Osama bin Laden

 

Main course:

  • Saddam Hussein
  • Muhammar Khadafi

 

And (((they))) hope for dessert (((they)))'ll have:

  • Bashar El Assad
  • Hassan Rouhani 
  • Vladimir Putin
  • Xi Jin Ping

 

Might be a bit too much for (((their))) diet. 

Sometimes it's better not to have one's eyes bigger than one's belly...

In reply to by Troy Ounce

Bay of Pigs RedBaron616 Tue, 03/27/2018 - 10:32 Permalink

Not according to Gen. Wesley Clark who identified those countries as part of a list to be taken down via the Wolfowitz Doctrine (PNAC Neocon designed US foreign policy). And what do most of them have in common? Oh, that’s right, no Central Bank.

The Bin Laden fake death was coincided to take gold down as well if I recall correctly. Yes, on that exact day. Go look it up.

 

In reply to by RedBaron616

Debugas Tue, 03/27/2018 - 07:05 Permalink

russia stockpiles gold because its mining industry has no buyers so the only buyer the russian state supports the industry to stay afloat

chubbar Pearson365 Tue, 03/27/2018 - 08:02 Permalink

To believe that Putin only has 1828 tonnes of gold is to believe in the tooth fairy. Reports are that they have in excess of 20,000 tonnes, as does China. Just the sheer magnitude of gold that has been moving from west to east suggests these numbers.

Russia has been keeping every ounce of it's mined gold for decades and has been hitting record imports the past few years. We are on the cusp of a new monetary system, anyone paying attention knows it. The world is tired of the US gov't printing money and spending it to build up it's military, only to then dictate to the rest of the world how to govern themselves over the threat of a gun.

In reply to by Pearson365

shovelhead chubbar Tue, 03/27/2018 - 10:14 Permalink

In the end, "Money" is a concept that requires belief that it's not being debased and has the stated value. Once a viable alternative that has that value is introduced, the common use will switch to the alternative. It doesn't happen like flipping a light switch, but there's no doubt the dollar has abused it's forced reserve currency status for a very long time.

In reply to by chubbar

you_are_cleared_hot Tue, 03/27/2018 - 07:16 Permalink

AND...let's not forget, China and Russia plan to go to war with the US. The more gold they have on hand, the better. Why this does not seem to scare people to death is beyond me.

This coming war with China and Russia will not be a year or two...this will make Afghanistan look like a quick get and get out. Picture it this way: You are in the dentist chair, he cannot hit numb the nerve to save his life and you have a few more visits to go...yeah, it's going to be like that!