As Russia's Gold Hoard Soars, Putin Warns "US Sanctions Hurt Trust In Dollar As Reserve Currency"

Despite his absence from Vladimir Putin's annual economic showcase - which included such US allied luminaries as Japanese Prime Minister Shinzo Abe, French President Emmanuel Macron, China’s Vice President Wang Qishan and IMF chief Christine Lagarde - the conversation kept coming back to President Trump.

Led by an unusually outspoken Putin, Macron - who seemed more enamored with Putin than the rest, agreed with the Russian president's concerns over the erosion of trust and the specter of a global crisis brought on by Washington's disruptions.

“The free market and fair competition are being squeezed by confiscations, restrictions, sanctions,” Putin said.

“There are various terms but the meaning is the same -- they’ve become an official part of the trade policy of certain countries.”

The “spiral” of U.S. penalties is targeting “an ever larger number of countries and companies,” undermining “the current world order,” he said.

Macron replied: “I fully share your point of view.”

Such warnings only confirm Mr Putin’s world view. Without mentioning the US, he complained that the multilateral economic world order was being “crushed” by a proliferation of exceptions, restrictions and sanctions.

The “darkest cloud” on the economic horizon is the “determination of some to actually rock the system,” Lagarde said, prompting Wang, a new point-man for Chinese foreign policy, to agree.

“Politicizing economic and trade issues, and brandishing economic sanctions, are bound to damage the trust of others,” he said.

Putin also expressed frustration at having little contact with Trump and faulted the investigation into whether there was collusion between Trump's campaign and Russia and whether Russia tried to interfere with the 2016 U.S. election.

"We are hostages to this internal strife in the United States," Putin said. "I hope that it will end some day and the objective need for the development of Russian-American relationships will prevail."

As Bloomberg reports, the panel had its prickly moments. After Putin suggested that Europe depended on the U.S. for its security, and told Macron there was “no need to worry” because Russia would help, the French president shot back:

“I’m not afraid, because France has an army that knows how to protect itself.”

However, the most ominous and direct messages were from Putin himself about changes to the unipolar order.

In his opening statement at the plenary session, Putin says the global economic order is being undermined and that breaking the rules is becoming the rule of the game.

Coming a day after Russia's Finance Minister Anton Siluanov said at the St. Petersburg International Economic Forum that settlements in US currency could be dropped by Russia in favor of the euro

"As we see, restrictions imposed by the American partners are of an extraterritorial nature. The possibility of switching from the US dollar to the euro in settlements depends on Europe’s stance toward Washington’s position,” said Siluanov, who is also Russia’s first deputy prime minister.

“If our European partners declare their position unequivocally, we could definitely see a way to use the European common currency for financial settlements, such as payments for goods and services, which today are often subject to restrictions,” Siluanov added, dangling the bait in front of Merkel and Macron.

The global economy is facing a threat of a spiraling protectionist measures that can lead to a devastating crisis, Vladimir Putin warned. Nations must find a way to prevent this and establish rules on how the economy should work.

The Russian president spoke out against the growing trend of using unilateral restrictions to achieve economic advantage, as he addressed guests of the St. Petersburg International Economic Forum (SPIEF) on Friday.

“The system of multilateral cooperation, which took years to build, is no longer allowed to evolve. It is being broken in a very crude way. Breaking the rules is becoming the new rule,” he said.

Putin sharply criticized the sanctions, saying they signal "not just erosion but the dismantling of a system of multilateral cooperation that took decades to build."

Putin called for a change of course, for free trade to be defended, and for rules-based regulation of the global economy, which would alleviate the chaos resulting from the rapid technological transformations arising from the development of digital technology.

“The disregard for existing norms and a loss of trust may combine with the unpredictability and turbulence of the colossal change. These factors may lead to a systemic crisis, which the world has not seen yet,” he said.

Simply put, Putin concluded:

"US sanctions hurt trust in the US dollar as the world's reserve currency."

All of which appears to confirm many conspiracy-theorist's reasoning for why Russia is stockpiling gold faster than any other nation on earth...

Feels good, ha Vlad?







RationalLuddite sheikurbootie Sat, 05/26/2018 - 21:15 Permalink

Yes. I find Fisky's 2009 Independent article of continuing relevance re the unseating of the USD in ... 2018.…

The main point i want to draw attention to however is the 2 unexpected ćountries in this cohort - none other than France & Japan. And the IMF was going to be coerced too. And looky who are the standouts at the SPIEF 2018 ... 

It's wrong to think of all this as a grand global conspiracy, I would strongly argue. It is the opposite of grand conspiracy in fact. It is a battle between predator coalitions for supremacy,  and the US has essentially alienated almost all their tribute paying vassals. The gang of three against,  well, the world really. Foolish myopia. Pathological Narcissism does that. And victim mentality too. AND to paraphrase Humphrey Appleby, People far to often mistake fiat-induced lethargy as strategy.

In reply to by sheikurbootie

nmewn RationalLuddite Sat, 05/26/2018 - 21:18 Permalink

As Bloomberg reports, the panel had its prickly moments. After Putin suggested that Europe depended on the U.S. for its security, and told Macron there was “no need to worry” because Russia would help, the French president shot back:

“I’m not afraid, because France has an army that knows how to protect itself.”

...yes, because it always surrenders ;-)

In reply to by RationalLuddite

Escrava Isaura nmewn Sat, 05/26/2018 - 21:46 Permalink

Jesus, of course he's a globalist.

He has too or otherwise he would be bored to death and poor.

look at where he's sitting.

Oh better:

Look at Trump. His name is allover the world.

Do you drink coffee? Sugar? Do you use salt? Are you looking at your computer screen? Do you know how many ingredients is in a McDonald burger?

You wouldn't have these if wasn't for globalism.

And when globalism ends most Americans will starve to death because we are all globalists.



In reply to by nmewn

SilverSavant runningman18 Sun, 05/27/2018 - 03:40 Permalink

Bad Money is the problem.  Those with no morals can create it at will, those with morals are being robbed by inflation.  Thus the immoral are being rewarded and empowered in a way and to an extent that would not be possible if there were some kind of real money back by something real like precious metals.  If you think you can keep your shit fiat money without completely loosing this war, you are either ignorant or a troll.

In reply to by runningman18

Escrava Isaura runningman18 Sun, 05/27/2018 - 08:58 Permalink

runningman18: Money is not the problem, it's the people that are CONTROLLING the creation of money that are the problem.

And debt money that comes with usury, interest rates.

Good luck trying explaining these to an indoctrinated society.


"Once a nation parts with the control of its currency and credit, it matters not who makes the nation's laws. ... Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile." Mackenzie King, Canadian Prime Minister 1935-1948.


In reply to by runningman18

FBaggins raskefing Sun, 05/27/2018 - 10:44 Permalink

Putin is not a "globalist". He is leading the sovereignty movement. He wants fair and balanced trade. However, he does not want sanctions and to push back at the conference he played the free trade card, no doubt to curry favor with international business interests in the West influential with their own governments whom most of the other attendees actually represent despite the trade imbalances and foreign debts of their nations.

Putin is also right about the loss of trust in the US dollar essentially because of the ruthless regime-change efforts of the US to protect it, and the internal and eternal political discord and instability in the US entailing unreliability and unpredictability in foreign trade and business relations between nations. 

Trump, whose own companies have no doubt been sued so many times for breach of contract, ought to know that "reliance" and "trust" are central to contract law and for business to function smoothly without the incessant interference of the courts or external government supervision. However, Trump obviously is an elitist billionaire mogul who has used his money and influence to walk over the faces of his weaker competitors, and one who is no doubt used to people in higher places fixing things to advance his interests. He unfortunately is an usurper of trust and goodwill and that trait entirely explains his nation's present foreign policy. 

In reply to by raskefing

LaugherNYC runningman18 Sun, 05/27/2018 - 12:12 Permalink

You all are either idiots or Putin trolls. GEE, d’ya think Putin wants to jawbone against the dollar? Against US sanctions. YEs, the US unilaterally enacts sanctions and economic policies. Is it supposed to ask permission?

The US enacts sanctions in order to punish those who act against its interests on the global economic, geopolitical and military stages. Generally, that involves unfair and abusive trade practices (which have been defended by short-term profit motivated corporate whores) and abusive human rights and military practices (defended by trolls). Of course, the countries that fall afoul of these policies are China, Iran, Russia and North Korea.

So, Trump decides to lead from the front, not from behind. He will not allow the weak-willed LGBTQQ Euroweenies to back off - if they do, they get punished, too. Alliances aren’t just for the good times. Sometimes, you have to live with some hard consequences in the short term to get to the long term benefits. 

Which team do you people want to be on? The US led group fighting for fair trade and human rights, for peace on the Korean Peninsula, to end Russian territorial imperatives in the former SSRs, Chineseexpansion in the South China Sea, and the protection of Western governments and utilities from the disruption of Russian and Chinese cyber-intrusion and attack? Or the authoritarian, repressive, oppressive, murderous, aggressive, expansionist, corrupt and debased group of Russia,Iran, NoKo and China?

If  the latter, then you are either deluded, a liar or on their payroll. Is there ANYONE fighting to get into any of those four countries? Does ANYONE want to become subject to those regimes?

Let’s get real.  

In reply to by runningman18

Jack Oliver Escrava Isaura Sun, 05/27/2018 - 04:47 Permalink

Putin has no need for money - he prefers to go fishing or spend time in the DOJO !! 

He has stated before that we live in a “surreal monetary world” ! 

With all these countries being ‘enabled’ by Putin - You have to wonder who else he has promised to protect !!! 

Korea ( Nth & Sth) Turkey - Iraq - Qatar - Japan - Germany ??? 

Putin is officially the most powerful man on the FUCKING planet !! 


In reply to by Escrava Isaura

BlueDune Escrava Isaura Sun, 05/27/2018 - 09:08 Permalink

It seems there is a perception problem here.

Being a nationalist does not mean advocating for becoming an isolated island.

Nationalism is perfectly compatible with inter-national cooperation, as in the list you presented.

Globalism, on the other hand, is not characteristic by inter-national cooperation, but rather by the drive to erode communities, nationalities and races in favor of a huge system of centralizes governance. 

That is the huge danger of Globalism as well as the deep connections to aahh...cough..cough you know, rhymes with who.

In reply to by Escrava Isaura

spyware-free 1 Alabama Sat, 05/26/2018 - 22:35 Permalink

You've nailed it. What Putin is really saying is "Live by the sword, die by the sword". Trump is breaking the established norms by using economic threats against allies to coerce them into obliging political and military foreign policy elsewhere (see NOKO & Iran). The problem with this strategy as you've pointed out is that it is short sighted and alienates friends. Longer term, if / when the U.S. loses it's position as the dominant economic power you can expect reciprocity (a word Trump likes to use) when foreign powers deal with the U.S. the same way. The orange mastermind will have at once cemented his legacy as a great negotiator and fucked future generations with animosity towards the U.S. for years to come. All because he has to satisfy the blood lust of zio-parasites that run the country.

In reply to by 1 Alabama

OverTheHedge nmewn Sun, 05/27/2018 - 01:24 Permalink

A group of people who are fully immersed in the status quo, are complaining that the status quo is not being allowed to continue. Putin (actually Russia, but remember that the only person who does anything in Russia is young Vladimir, who is personally responsible for EVERYTHING) needs to sell Russia's natural resources to the world, so needs a global banking and trade system in place. Russia does not need a rampaging bull knocking all the China off the table, such as banning german/russian pipeline initiatives, chaos in the ME etc. Hence the complaining. 

Is the US intentionally isolating itself, or just too self-centred to understand? It is currently a big, ugly Pitbull on a chain, guarding the gates to the world trade system, but everyone else seems keen to make holes in the fence, and go behind the rabid dog's back. Will that dog slip it's leash? Or just bark impotently at the end of the chain.....

In reply to by nmewn

lucitanian OverTheHedge Sun, 05/27/2018 - 05:52 Permalink

The rest of the world has to export to earn dollars to pay for energy, oil while the US doesn't even need to print them but they can create them electronically and ride on their protected fiat debt, thereby subsidizing their enforcer MIC with a reserve currency. It was not a fair system - read Confessions of an Economic Hit Man

The simple fact is the mechanism was never designed so that a few wealthy oligarchs dominate global power through Washington and get wealthier, but that's what's happened, and the rest of the world is fed up and needs it changed. The US has not protected free trade but defeated it purely for the interests of those few, abusing its power.

Nobody wants to put the dog down, but it needs some training. 

In reply to by OverTheHedge

7thGenMO lucitanian Sun, 05/27/2018 - 10:07 Permalink

"put the dog down" - my Russian wolf-dog understands.  One day while out walking, a feral American Pit Bull charged us.  My Russian picked him up by the neck, slammed him to the ground, his eyes opened up big when he realized he was powerless, and he then screamed before crapping himself.

I wonder if the oligarchs that own The Fed will soil themselves when they realize their MIC Pit Bull is getting old and just wants to lay down, lick his own balls, smoke some weed, and eat cheese burgers, instead of fighting with a Russian.

In reply to by lucitanian

GreatUncle nmewn Sun, 05/27/2018 - 07:05 Permalink

I see the Putin's free trade comment - So Putin believes that Russians can compete with "bowl of rice economics"

Need tarrifs weighted on the trade deficit between countries. - So Putin is going to go down as another fool.

When the FX market was not so fraudulent this is solved by currency rates.

From that you can see what the inherent flaw is in the euro across all those different cost nations.


In reply to by nmewn

Matteo S. nmewn Sun, 05/27/2018 - 11:02 Permalink

Well, surrendering to Nazi Germany in 1940 was certainly one of the worst carastrophees of French History.


However, Germany being then twice as populated as France, it was not that a big surprise given geography.


Being protected by a sea or an ocean is no motive of pride.


Besides, it is quite funny to see British and Americans boasting about the defeat of Nazi Germany since it was the soviets that defeated the Nazis alone. The anglo-saxons just came at the 11th hour to avoid Western Europe being liberated and occupied by the soviet forces.

In reply to by nmewn