Kremlin confirms intention to Back Ruble with Gold and Commodities


On Tuesday 26 April in an interview with newspaper Rossiyskaya Gazeta (RG), the Secretary of the Russian Federation’s Safety Council, Nikolai Patrushev, stated that Russian consultants are engaged on a mission to again the Russian ruble with gold and different commodities.

The interview, which is in Russian, may be seen on the RG web site right here. 

For many who don’t know the identify Nikolai Patrushev, Patrushev is likely one of the Russia’s strongest safety / intelligence officers and an in depth ally of Putin. After serving between 1999 and 2008 as Director of the Russian Federal Safety Service (FSB) (the successor group to the KGB), Patrushev moved to being Secretary of the Russian Safety Council since 2008. In actual fact, Patrushev took over as Director of the FSB in 1999 from the earlier incumbent, Vladimir Putin.

The Safety Council of the Russian Federation is chaired by Putin, with Patrushev as Secretary, overseeing the Safety Council and answering on to Putin. The deputy chairman of the Safety Council is Medvedev Dmitry, the previous Russian president and prime minister. Among the many different member of the Safety Council are present Russian prime minister Mikhail Mishustin, and Russian international minister Sergei Lavrov.

So when Nikolai Patrushev says that Russia is engaged on a plan to again the ruble with gold and commodities, it’s not simply anybody saying this, it’s being stated by the best echelons of the Russian Authorities.

Media protection (in English) of Patrushev’s 26 April feedback may be seen on the Russia Immediately (RT.com) web site right here. For many who can’t entry RT.com because of it being regionally blocked and who don’t wish to use a VPN, the RT.com article may be seen on ‘thethreadtimes.com’ web site right here.

Patrushev and Putin

Intrinsic Worth    

Since its good to go proper again to the supply of Rossiyskaya Gazeta (RG), I’ve added an English translation of the related sections of Patrushev’s interview with RG (utilizing Yandex Translate) under.

RG Query: And what do we have to do to make sure the ruble’s sovereignty?

Nikolai Patrushev: “For any nationwide monetary system to be sovereignized, its technique of cost will need to have intrinsic worth and value stability, with out being pegged to the greenback.

Now consultants are engaged on a mission proposed by the scientific neighborhood to create a two-circuit financial and monetary system.

Specifically, it’s proposed to find out the worth of the ruble, which ought to be backed by each gold and a gaggle of products which might be forex values, and to put the ruble trade charge in step with the true buying energy parity.”

So there you may have it. The Russian Authorities is actively engaged on making a gold and commodity backed Russian ruble with intrinsic worth which is exterior the orbit of the US greenback. 

For the above paragraphs, Google Translate produces an almost equivalent translation into English as Yandex Translate does, besides whereas Yandex calls it a ‘a two-circuit financial and monetary system’, Google says a ‘dual-loop financial and monetary system’. ‘Two-circuit’ or ‘dual-loop’ refers right here to a ruble backed by each gold and commodities.

A New Orthodoxy

Following Patrushev’s remarks a couple of gold and commodity backed ruble, the RG interview probes additional:

RG Query: Comparable concepts have been voiced earlier than. Nevertheless, quite a few consultants said that they contradict the conclusions of financial concept…?

To which Nikolai Patrushev replies:

They don’t contradict the conclusions of economics, however somewhat the conclusions of Western economics textbooks.

The West has unilaterally appropriated an mental monopoly on the optimum construction of society and has been utilizing it for many years…

We aren’t against a market economic system and participation in world manufacturing chains, however we’re clearly conscious that the West permits different nations to be its companion solely when it’s worthwhile for it.

Subsequently, a very powerful situation for making certain Russia’s financial safety is to depend on the nation’s inside potential, a structural adjustment of the nationwide economic system on a contemporary technological foundation.”

Sanctions – An Personal Aim

As regards to the monetary sanctions themselves, and the freezing of Russia’s FX reserves held overseas, Patrushev states that by imposing sanctions in opposition to Russia, the “the West is hitting not solely Russia, but additionally itself”, and has broken belief within the US greenback because the world’s de facto reserve forex:

“The present world monetary system is constructed solely on belief, together with in the US because the issuer of the world’s reserve forex. Half a century in the past, the gold issue was current, however in 1971 the States untied its forex from its quotes, which made it doable to concern cash just about with out management.”

Majority of Asia – SCO and EAEU members. Supply

The West vs The Relaxation

Elsewhere within the interview, Patrushev drops some bombshell feedback about how Russia is intensifying cooperation with the non-Western world, feedback which have but to be appreciated by the mainstream Western media.

“I’m assured that we’ll clear up all the issues which have arisen because of the sanctions restrictions.

Immediately, Russia is shifting from the European market to the African, Asian and Latin American markets.

We give precedence consideration to the EAEU, whose significance is rising many instances over within the present circumstances.

We’re stepping up cooperation with the BRICS and SCO nations, which carry collectively about three and a half billion individuals on the planet.

Notice – The EAEU refers back to the Eurasian Financial Union. The EAEU, which was based in 2015, is a free-trade zone and customs union comprising Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan. See EAEU web site right here.

SCO refers back to the Shanghai Cooperation Organisation. The SCO, which was based in 2001, is a world intergovernmental grouping comprising the 8 member states of China, Russia, India, Kazakhstan, Pakistan, Uzbekistan, Kyrgyzstan, and Tajikistan, in addition to 4 observer states of Belarus, Iran, Afghanistan, and Mongolia, and an extra 6 dialogue companions within the type of Turkey, Azerbaijan, Armenia, Cambodia, Nepal, and Sri Lanka.

BRICS refers back to the world’s 5 largest rising economics and includes Brazil, Russia, India, China and South Africa. BRICS was established in 2006 and is now a proper grouping, with the BRICS nations formally cooperating and assembly on an annual foundation. The 2022 BRICS summit is being held in China.

EAEU. SCO. BRICS. Three and a half billion individuals. And now a gold and commodity backed ruble. One thing for the Western media to ponder.

Conclusion – A New Gold Normal?

In late March when the Financial institution of Russia supplied to purchase gold from Russian banks at a set value of 5000 rubles per gram, this was step one in linking the ruble to gold. That transfer additionally put a flooring value below the ruble and acted as a catalyst for the ruble to re-strengthen floor in opposition to the US greenback that had been misplaced in late February / early March.

Throughout the identical week in late March, Putin additionally knowledgeable the worldwide market that non-friendly importers of Russian gasoline must pay for Russian pure gasoline utilizing rubles. That transfer (which we are actually seeing taking part in out within the EU) was the opposite aspect of the equation, linking the ruble to commodities.

This was all specified by the Q&A article that I wrote for RT.com and which may be seen right here on the BullionStar web site titled “Russian Ruble relaunched linked to Gold and Commodities – RT.com Q and A”, and which was an enormous hit on ZeroHedge with greater than 650,000 views.     

What we’re seeing now could be Nikolai Patrushev and the Kremlin confirming this straightforward equation of linking the Russian ruble to gold and commodities. In different phrases, the start of a multilateral gold and commodity backed financial system, i.e. Bretton Woods III.  

Anybody who desires to learn an English translation of Nikolai Patrushev’s full interview with Rossiyskaya Gazeta can achieve this at this hyperlink. 

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