Zerohedge- “A Paradigm Shift Western Media Hasn’t Grasped Yet” – Russian Ruble Relaunched, Linked To Gold & Commodities
Since 1971, the global reserve status of the US dollar has been underpinned by oil, and the petrodollar era has only been possible due to both the world’s continued use of US dollars to trade oil and the USA’s ability to prevent any competitor to the US dollar.
But what we are seeing right now looks like the beginning of the end of that 50-year system and the birth of a new gold and commodity backed multi-lateral monetary system. The freezing of Russia’s foreign exchange reserves has been the trigger. The giant commodity strong countries of the world such as China and the oil exporting nations may now feel that now is the time to move to a new more equitable monetary system. It’s not a surprise, they have been discussing it for years.
I don’t think anyone believes the Russians or the Chinese are going to hold to a standard of any kind, gold or otherwise.
The US dollar has been battered as of late, for very good reasons, but it shall still be the currency of choice for traders for some time yet.
Your right.
Traders and politicians will go down with the dollar to the end…
Reality will make sure its short lived as fuels starvation takes effect and collapses the infrastructure and many electrical grids that need replacing or repairs.
Made in China is pretty cheap products that don’t last long which our politicians totally embraced.
Not sure about that at all. The US dollar represents less and less in terms of intrinsic value, it has been so debased by printing. A different standard would be adopted quickly enough, whores are gonna whore. The main US contribution to the world economy is demand, and technology. Do you see Tim Cook or Mark Zuckerberg or any of the others as great patriots? No. They are in for themselves, as are all individuals to a greater or lesser extent. the absolute beauty of this is the exposure of the WEF and the great reset, a.k.a New World Order. This would stop it in it’s tracks as Schwab and co. now aren’t the big dogs in the room. A side benefit would be Trudeau and Freeland seeking asylum in Davos.
You might be right but to me it looks quite advantageous for Russia and others to move and hold to a gold standard.
Many, myself included are finding it hard, if not impossible, to put one’s trust in a currency backed only by the word of the government.
Call the existing currency petrodollars if you want but the printing presses are flowing far faster than the oil wells.
Venezuela dick stole thousands of Gold bars shipped them to Russian dicks. Colombian cartels
Russia and China will send you an army, or fresh human kidneys for Gold.
China wants to undervalue their currency. Russia wants to overvalue their currency until they want to undervalue it. China wants to royally screw everyone else. How is this going to be managed? Russia is a third world shithole economy and nothing they do will be of more than minor concern to anyone else, like the Zimbabwe dollar.
End game is Bankruptcy worldwide in which Russia and China emerges with a reset and new joint monetary system.
Everything dollar related is bankrupt and the US Dollar is only good to spend in the United States only.
Since all fiat currencies are U.S. dollar derivatives, bankrupting everything dollar related bankrupts all other fiat currencies as well.
Untrue in every aspect. You must work for Soros.
Crops will still grow, water will still flow, and factories can continue to pump out goods people want, the only thing that ever prevents them from doing so is utter mismanagement of what should be a medium of exchange, not another commodity.
The ONLY cause of inflation is printing too much money, preventing goods from getting to market, or both.
Period.
Inflation is always a monetary phenomenon, anything else is just an excuse for laziness.
What you are witnessing it the decline of North American predominance. It is following a well established pattern that is in full swing. The 20 / 80 rule says 20% of the people achieve 8o% of the productivity. In large organizations it has been shown to be exponentially worse. Our largest organization is government ,a huge unaccountable money pit. You must consider all the levels and authorities. Their agenda in the name of fairness will lead to poverty for the masses or dominance by other groups. Their quest for fairness gives no value to those who actually produce wealth. In the meantime they will blame Russia and China for or self imposed demise.
One can go to a bank in Russia and buy a gram of gold for 5461.2 Rubles today.
https://livepriceofgold.com/russia-gold-price.html
The USD will soon be tied to the price of cock-rings and/or dildos.
A gold standard means withdrawal of the currency units from circulation when they are redeemed for gold. When you buy gold with fiat, the fiat currency units remain in circulation. This is not a gold standard.
“One can go to a bank in Russia and buy a gram of gold for 5461.2 Rubles today.”
I call BS. What happens when they run out of gold? What value of gold do they have? Maybe 1 or 2% of outstanding currency. I call it currency manipulation and everyone knows it. They are signalling weakness not strength.
Yeah, the worldwide precious metals market website is Kremlin propaganda.
“What happens when they run out of gold?” What a retarded thing to say.
What if we run out of dog food? All the dogs will starve!!!!
Why should they run out? Do you think Russians are running to buy gold? Do you think Russia has no gold mines?
Russia, unlike the west, isn’t retarded, and doesn’t de-value their currency by printing money at the speed of light like the west is.
Putin is less evil, by miles, than any western leader.
I’ve already read enough of your “unprovoked attack” BS, and “Putin eats babies” BS to totally ignore anything you have to say, other than to mock it.
““What happens when they run out of gold?” What a retarded thing to say.”
The US tried to maintain a modified gold standard from 1933 to 1971. They quit when the pressure to convert dollars to gold which they didn’t have became too great. No country will ever use a gold standard because it would get in the way of managing the economy with monetary policy which has saved us from a depression for over 93 years. We haven’t gone into a depression since abandoning the gold standard. No coincidence.
The US got off the gold standard because they needed to default on their debt to pay for vietnam. Since then they haven’t had a depression because they’ve had 50 years of free stuff, because after stealing everyone’s gold they managed to create a quid pro quo with those good ol’ boys, the wahhabi fundamentalist house of Saud, offering them the protection of the US state in return for pricing oil in USD, essentially creating a permanent worldwide charity benefit drive for the entire US, paid for by everyone who isn’t the US.
That scheme gave Francis Fukuyama and the ideological fanatics in the state dept. the delusion that by taking the rest of the world’s labour and resources and giving them paper in return, the US had somehow fundamentally solved the problem of statehood and so they used those resources to run amok the world over, on a mission to bring the Project for a New American Century to fruition, destabilising countries, creating anarchic hellscapes, the refugee crisis and of course, everyone’s favourite: accidentally murdering millions of people in the middle east in the process.
So yeah, giving the US government what amounts to the power of unrestricted spending has worked out pretty well. In fact I asked an Iraqi refugee about it the other day and he told me “I hope Putin wins”. And the US is pretty much utopia now, so wins all round.
Sadly the US has been destroying the integrity of its dollar for decades and has only increased that process with quantitative easing started under Obama. You simply can not continue to create 5 trillion dollars out of nothing and expect those 5 trillion dollars to be worth anything.
Oh, and the US is still buying lots of oil and petroleum products from Russia.
Demand for USD only needs to shrink, not disappear, for interest rates to rise, and rising rates will cause economic collapse.
They’ll print more money to try to stave it off, which will create hyperinflationary pressure.
They sure are HiHo.
All those blaming Putin for high energy prices should ask themselves who cancelled the keystone and energy East, and who is trying to eliminate fossil fuels.
It ain’t Putin.
Brilliant! In a single move the man has just upset the cart and potentially destroyed the US and world cabal of corrupt finance and fiat in a series of moves that show playing chess is an international strategy by real people understanding actions have consequences unlike the children the western countries have that play with shiny babbles, trinkets and fire.
Interesting to watch how the weeping will begin as the ineffectual west contorts, demands and stamp their feet like the spoilt children they are.
Gold is about to become the only currency again, after a small and brief interlude of 50years the centuries old standard returns. Watch the next weeks ahead as WEF and international bankers see their mirrors smoke over.
In order for a gold standard to arise, fiat currency debt must be converted to gold bonds, with interest and principal payable in gold. Once paid off in gold, the debt is actually extinguished.
It’s pretty clear that you’re all about a debt driven economy rather than a production/wealth driven economy, thus your infatuation with interest rates.
Trusting western fiat bankers to help manage the economy is the same as trusting wolves to help design your hen-house, with results that speak for themselves.
I don’t think it is possible to link your currency to gold – for a hundred reasons but just consider these few.
1. what if you print more rubles? Will you devalue the ruble proportionally? If not, no link.
2. what if you don’t have enough gold to back all your rubles? To bad, so sad?
3. you will let go of rubles but will you also exchange them for gold? I’m asking you Russia.
4. can you trust the Russians to keep an honest account of the number of rubles in circulation and the amount of gold in their vaults? Probably hell no.
It’s great to say you are pegging your dollar to gold but it’s a worthless promise if you print more money and won’t allow people to exchange printed money for gold bars.
Another reason why gold will never return as the world exchange currency – the gold mines are in the wrong countries.
Yet another reason why gold will never reign – the increase in gold mined yearly is about 1-2% of existing supply. Would that not be the limit of economic growth?
“Would that not be the limit of economic growth?”
No.
But people have been programmed to think deflation = bad, and inflation = good.
How people came to believe the idea that a finite amount of money = Malthusian catastrophe I’ll never know, the fact is the idea is a con, a sham that plays into the hands of those who get very, very rich while producing nothing of any tangible value, like Soros or Schwab, unlike Trump or Musk.
This is the essential difference between mere capitalism and free markets.
It’s not a con. It’s just one way of doing things although it’s out of control. Imagine working at your job and the boss shows up to tell you of the impending pay cut because prices are falling. Eventually the government would have to invent smaller and smaller forms of currency. It does work both ways but it is not static. But enough of Malthusian catastrophes and back to Russia. How can Russia back its currency with gold if it keeps printing more rubles? Only if the value per ruble times the amount of rubles remains constant (relative to gold’s price). This means we would be dependent on Russia to keep an honest account of how many rubles it has printed. Would they do that?
Russia doesn’t really need a stable ruble to trade. It just needs things to trade, such as oil & gas. As long as oil & gas can be benchmarked having a stable ruble is not important. So why is Russia trying to tie the ruble to gold? I think they are just trying to undermine the US dollar. This is just another stick poked into the wasp’s nest.
Being dependent on the US to keep an accurate account of how many dollars it has printed is no better.
Inflation is a pay cut. The only wise monetary policy is to keep the amount of money floating around a function of the amount of production going on.
See some serious deflation? Print some more money.
See some serious inflation? Stop printing money.
Also, why is the amount of gold held constant in everybody’s calculations? Why is it assumed that Russia is printing money like the west is?
Linking currency to gold and commodities is a natural way to hedge against both inflation and deflation.
More gold and commodities = more rubles.
Linking currency to nothing is a scam.
Funny, for over 400 years the BoE linked the Sterling to gold and silver. The issue in 1914 wasn’t gold per se, but repatriation of gold reserves on the eve of the global war economists had said could never happen (The Grand Illusion).
The German government had to peg the Mark to land to halt the Weimar hyperinflation (Rentenmark). That shut off the inflationary spigot right quick. The gold peg is to control domestic prices as the Russian Central Bank shifts from foreign to domestic reserves.
I really am stunned how quickly “full faith and credit of the US government” became …
“occasional faith and some credit of the US government, as long as you do what we say, and allow us to treat you and your resources as Hunter Biden’s personal piggybank and sexual playthings”.
What Sovereign Central Bank in their right mind will now seek to make massive deposits into such a system?
https://www.thegatewaypundit.com/2022/04/fox-news-interviews-ukrainian-president-zelensky-edits-responding-azov-battalion-atrocities/
I can see this happening. What benefit is it to the majority (rest of world) when the minority (western democracies) rig the current fiat system to their benefit on trade and economic issues.
A poorer resource rich country could peg the value of their trade payments with the value of resources they trade by pegging payment in their currency, not US or EU dollars.
The current system which favours the west, currently keeps the value of those resources lower and ripe for exploitation.
That’s a game changer.
Fiat currencies would free fall in this scenario as demand for them falls. It only takes a few large resource exporters to start this trend. What’s the west gonna do. Invade them to stop them? Or go without?
I’m surprised that nobody has mentioned Bitcoin yet.
When Western currencies collapse, we’ll need something that can easily transfer value between buyers and sellers.
Pretending that Bitcoin is all a Ponzi scheme used to be fashionable before people saw the Canadian government merely ask banks to freeze accounts, with no evidence, and they complied without a whimper of concern.
Every country on the planet is considering a digital currency right now.
Once people on social assistance start receiving their government cheques via ones and zeros, how long before they and others realize a few things about the whole process:
1. A central bank digital currency isn’t that hard to use.
2. There are a bunch of limits put in place by the government on how I can spend my digital Cannuck bucks
3. If a digital Cannuck buck is easy to use, maybe I should look at other crypto currencies?
4. Those digital Cannuck bucks are going to end up in the hands of non-wellfare users eventually and those people will also realize that crypto isn’t the boogieman the media and bankers have been crying about since 2011.
Eventually, we’ll all be using a digital currency. The governments all want it.
Get with the program people.
One day, you’ll get a tax return in digital Cannuck bucks and you’ll have to decide to either accept it or ignore your digital balance because getting it in physical money won’t be an option.
“The governments all want it.”
Which is all the more reason to fight it, tooth & nail. “I’m from the gov’t & I’m here to help you” should scare the living hell out of every red-blooded human on the planet.
Digital currency is merely part of the next step of The Great Reset, a digital social credit rating. Thx, but no thanks.
You’re missing the point.
Governments want THEIR crypto to be used.
They’ll issue a Central Bank Digital Currency or CBDC.
A CBDC will feature all the worst possible functions that a digital currency can offer such as:
1. No limit to supply
2. Total control over spending
3. No ability to collect it without the government knowing about it.
4. No ability to spend it without the government knowing about it.
5. The ability to seize it whenever they like, including automatically taking a chunk of it for whatever reasons they dream up.
Bitcoin on the other hand suffers from none of those “features” which make it so appealing to a government.
No government has to know that you own any bitcoin at all.
They have no ability to stop you from spending it.
They can’t seize it unless you let them have your keys. The popular phrase is “not my keys, not my coins”. If you can keep your keys private, then there’s no earthly way to seize your Bitcoin. Lose your keys and there’s no way to get it back. Ever. It’s gone like a dollar bill thrown in a blast furnace.
Time was, you could hoard cash under your mattress and be a wealthy man but not anymore, the government prints a couple trillion dollars and your nest egg is devalued overnight.
Real estate used to be safe but there’s no way to spend a plot of land when you need a cup of milk and a cup of butter.
Today, you need to control assets that the government can’t ruin like base metals or crypto.
Better yet, an asset that the government doesn’t know you have because it’s beyond their control.
I agree that Bitcoin and other cryptos move around a lot but with wide spread adoption, the market gyrations should get weaker.
Me, I do lots of day to day transactions in cash but the day will come when the physical dollar simply isn’t worth carrying around anymore.
By tax return do you mean tax refund? Haven’t seen one is 30 years, don’t care. Digital Canuck Bucks? Only can use this many per month on gas. Donate to the wrong cause (party) and you’re frozen. Tax returns a thing of the past as they already have every transaction. EV’s only soon. Just the baby steps on the road to tyranny.
Dystopian enough for you? Not sure what currency will be used for the black market, but it will be thriving.
Is it possible to get censored on here like Trudeau does?