Who Is Really Winning The Economic Chess Game? – Silver Doctors

Russia has simply made some strikes which can be going to alter the worldwide monetary system without end…

by Michael Snyder of The Financial Collapse Weblog

Russia has simply made some strikes which can be going to alter the worldwide monetary system without end.  When the battle in Ukraine initially erupted, the U.S. instantly tried to crash the worth of Russia’s foreign money.  These makes an attempt had been profitable for a couple of days, however now the worth of the ruble relative to the U.S. greenback is nearly all the way in which again to the place it was earlier than the beginning of the struggle.  This has completely shocked lots of the consultants, as a result of they thought that U.S. sanctions would completely cripple Russia.  So what occurred?  Properly, it seems that the Russians have made some very savvy strikes which have turned the tables on the Biden administration.

For one factor, Russia has began to demand cost in rubles when it sells pure gasoline to non-friendly nations.  Loads of nations in western Europe are fairly upset about this, however they actually haven’t any selection, as a result of they’re exceedingly depending on Russian gasoline.  So from this level ahead, western powers are literally going to be compelled to assist prop up the worth of the ruble…

Russia needs “unfriendly nations” to pay for Russian pure gasoline in rubles. That’s a brand new directive from President Vladimir Putin as he makes an attempt to leverage his nation’s in-demand assets to counter a barrage of Western sanctions.

“I’ve determined to implement … a sequence of measures to modify funds — we’ll begin with that — for our pure gasoline provides to so-called unfriendly nations into Russian rubles,” Putin stated in a televised authorities assembly, including that belief within the greenback and euro had been “compromised” by the West’s seizure of Russian property.

Secondly, the Russians have determined that U.S. {dollars} will not be accepted as cost for something that they promote to different nations.  Pavel Zavalny, the top of the Russian parliament, says that U.S. foreign money “has misplaced all curiosity for us”…

Far more attention-grabbing was Zavalny’s fundamental level, though it has been largely ignored. If different nations need to purchase oil, gasoline, different assets or anything from Russia, he stated, “allow them to pay both in laborious foreign money, and that is gold for us, or pay as it’s handy for us, that is the nationwide foreign money.”

In different phrases, Russia is blissful to just accept your nationwide foreign money — yuan, lira, ringgits or no matter — or rubles, or “laborious foreign money,” and for them that not means U.S. {dollars}, it means gold.

“The greenback ceases to be a way of cost for us, it has misplaced all curiosity for us,” Zavalny added, calling the buck no higher than “sweet wrappers.”

That is enormous, but it surely isn’t being mentioned a lot by the company media in the USA.

The Russians aren’t simply saying that they don’t acknowledge U.S. {dollars} because the reserve foreign money of the world any longer.

That might be unhealthy sufficient.

At this level, they’re really saying that they’ll not settle for U.S. {dollars} as a type of cost in any respect.


Thirdly, the central financial institution in Russia has fastened the worth of the ruble to the worth of gold for a minimum of the subsequent three months…

The Russian central financial institution will restart shopping for gold from banks and can pay a set worth of 5000 roubles ($52) per gramme between March 28 and June 30, the financial institution stated on Friday.

However you gained’t hear about this on CNN or MSNBC.

This can be a transfer that would probably change every thing.

As soon as upon a time, the worth of the U.S. greenback was tied to gold, and that helped the U.S. greenback change into the dominant foreign money on your complete planet.

However then Nixon took us off the gold commonplace within the early Seventies, and issues have gone haywire ever since.

Now Russia has linked the worth of the ruble to the worth of gold, and lots of imagine that this is admittedly going to shake issues up…

“I’m reminded of what the U.S. did in the course of the Nice Despair. For the subsequent 40 years, gold’s worth was pegged to the U.S. greenback at $35. There’s a precedent for this. It leads me to imagine that Russia’s intention could be for the worth of the ruble to be linked on to the worth of gold,” Gainesville Cash treasured metals professional Everett Millman informed Kitco Information. “Setting a set worth for rubles per gram of gold appears to be the intention. That’s fairly necessary on the subject of how Russia might search funding and handle its central financial institution financing exterior of the U.S. greenback system.”

Others imagine that this transfer will create nice instability within the international monetary system.

For instance, Tom Luongo is warning that the next might quickly occur…

  • 1: At $1550 per ounce the primary order impact right here is that’s implies a RUB/USD price of round 75. Incentivizing these holding RUB to proceed and people needing them to bid up the worth from present ranges.
  • 2: This creates a optimistic incentive loop to deliver the ruble again to pre-war ranges.  Then after that market results take over as ruble demand turns into structural, primarily based on Russia’s commerce stability.
  • 3: As soon as that occurs and the RUB/USD falls under 75, then the USD worth of gold rises structurally draining the paper gold markets and collapsing the monetary system primarily based on leveraged/hypothecated gold.  Now we’re into the arb. section @Lukegromen postulated w/ 1000bbls/oz.

Time will inform if Luongo is correct or if he’s mistaken.

However for sure, issues haven’t performed out the way in which that Biden administration officers had been hoping.

That they had hoped that U.S. sanctions would crush the ruble, the Russian monetary system and your complete Russian financial system.

As an alternative, the Russians have been in a position to efficiently prop up the worth of the ruble and have made strikes that straight threaten the dominance of the U.S. greenback.

It doesn’t matter what occurs with the ceasefire talks, I count on the USA and Russia to proceed this financial battle for the foreseeable future.

In the end, that will likely be unhealthy for each of our nations.

And as historical past has proven, financial conflicts have a method of changing into taking pictures wars method too typically.  For sure, we undoubtedly don’t want a taking pictures struggle with Russia.

Leaders on either side ought to be looking for methods to attain peace and to repair the large harm that has already been accomplished.

Sadly, everybody appears to need to proceed to escalate issues, and that ought to deeply alarm all of us.

***It’s lastly right here! Michael’s new e book entitled “7 12 months Apocalypse” is now accessible in paperback and for the Kindle on Amazon.***

Concerning the Creator: My title is Michael and my model new e book entitled “7 12 months Apocalypse” is now accessible on Amazon.com.  Along with my new e book I’ve written 5 different books which can be accessible on Amazon.com together with  “Misplaced Prophecies Of The Future Of America”, “The Starting Of The Finish”, “Get Ready Now”, and “Residing A Life That Actually Issues”. (#CommissionsEarned)  If you buy any of those books you assist to help the work that I’m doing, and a technique which you could actually assistance is by sending digital copies as presents by Amazon to household and associates.  Time is brief, and I need assistance getting these warnings into the fingers of as many individuals as doable.  I’ve printed 1000’s of articles on The Financial Collapse Weblog, Finish Of The American Dream and The Most Essential Information, and the articles that I publish on these websites are republished on dozens of different distinguished web sites everywhere in the globe.  I all the time freely and fortunately enable others to republish my articles on their very own web sites, however I additionally ask that they embrace this “Concerning the Creator” part with every article.  The fabric contained on this article is for normal info functions solely, and readers ought to seek the advice of licensed professionals earlier than making any authorized, enterprise, monetary or well being choices.  I encourage you to observe me on social media on Fb and Twitter, and any method which you could share these articles with others is a superb assist.  These are such troubled instances, and other people want hope.  John 3:16 tells us concerning the hope that God has given us by Jesus Christ: “For God so beloved the world, that he gave his solely begotten Son, that whosoever believeth in him shouldn’t perish, however have eternal life.”  When you have not already accomplished so, I strongly urge you to ask Jesus to be your Lord and Savior at the moment.


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