Golden Rubles

[shinnosuke]

https://www.goldmoney.com/research/gold ... revolution

Alright, first let's all agree that a website called goldmoney.com is going to be pro-gold and, naturally, anti-fiat. Nothing wrong with that, of course, but it does tend to cloud one's judgment if constantly peering through lenses made of gold. Timing is also the question that never gets answered correctly. We can find solemn predictions of financial disaster going back for decades, and yet, here we are enjoying air conditioning and chocolate cookies like nothing's ever going to go wrong. The author, Macleod, is merely selling his inventory -- financial advice and precious metals. Nothing wrong with that either.

With that introduction out of the way, I want to say that the info at the link above is quite good. Make it your long article to read this weekend.

Just a snippet below, but consider momentarily the appreciation of the Mexican peso against the US$. Friends, if the Peso is showing strength vis-a-vis the greenback, your Federal Reserve Hiney Wipes are in terminal decline.

From the article:
All that is coming to an end with a new commoditisation — what respected flows analyst Zoltan Pozsar at Credit Suisse calls Bretton Woods III. In his enumeration the first was suspended by President Nixon in 1971, and the second ran from then until now when the dollar has ruled indisputably. That brings us to Bretton Woods III.

Russia’s insistence that importers of its energy pay in roubles and not in dollars or euros is a significant development, a direct challenge to the dollar’s role. There are no options for Russia’s “unfriendlies”, Russia’s description for the alliance united against it. The EU, which is the largest importer of Russian natural gas, either bites the bullet or scrambles for insufficient alternatives. The option is to buy natural gas and oil at reasonable rouble prices or drive prices up in euros and still not get enough to keep their economies going and the citizens warm and mobile. Either way, it seems Russia wins, and one way the EU loses.

As to Pozsar’s belief that we are on the verge of Bretton Woods III, one can see the logic of his argument. The highly inflated financial bubble marks the end of an era, fifty years in the making. Negative interest rates in the EU and Japan are not just an anomaly, but the last throw of the dice for the yen and the euro. The ECB and the Bank of Japan have bond portfolios which have wiped out their equity, and then some. All Western central banks which have indulged in QE have the same problem. Contrastingly, the Russian central bank and the Peoples Bank of China have not conducted any QE and have clean balance sheets. (shinnosuke's note: really?) Rising interest rates in Western currencies are made more certain and their height even greater by Russia’s aggressive response to Western sanctions. It hastens the bankruptcy of the entire Western banking system and by bursting the highly inflated financial bubble will leave little more than hollowed-out economies.

Putin has taken as his model the 1973 Nixon/Kissinger agreement with the Saudis to only accept US dollars in payment for oil, and to use its dominant role in OPEC to force other members to follow suit. As the World’s largest energy exporter Russia now says she will only accept roubles, repeating for the rouble the petrodollar strategy. And even Saudi Arabia is now bending with the wind and accepting China’s renminbi for its oil, calling symbolic time on the Nixon/Kissinger petrodollar agreement.

The West, by which we mean America, the EU, Britain, Japan, South Korea, and a few others have set themselves up to be the fall guys. That statement barely describes the strategic stupidity — an Ignoble Award is closer to the truth. By phasing out fossil fuels before they could be replaced entirely with green energy sources, an enormous shortfall in energy supplies has arisen. With an almost religious zeal, Germany has been cutting out nuclear generation. And even as recently as last month it still ruled out extending the lifespan of its nuclear facilities. The entire G7 membership were not only unprepared for Russia turning the tables on its members, but so far, they have yet to come up with an adequate response.

Russia has effectively commoditised its currency, particularly for energy, gold, and food. It is following China down a similar path. In doing so it has undermined the dollar’s hegemony, perhaps fatally. As the driving force behind currency values, commodities will be the collateral replacing financial assets. It is interesting to observe the strength in the Mexican peso against the dollar (up 9.7% since November 2021) and the Brazilian real (up 21% over a year) And even the South African rand has risen by 11% in the last five months. That these flaky currencies are rising tells us that resource backing for currencies has its attractions beyond the rouble and renminbi. (close quote)

Keep stacking!

[Treetop]

Last I looked china was still adding debt internally much higher rates then the US or any other major country. Always baffling to me how many of these types of articles dont acknowledge that. I keep hearing stories through my wifes mom who still goes to my wifes childhood church. Which has mostly polish but also russian and ukrainian immigrants there. According to what Ive heard from them, while the ruble might have went back up their prices are out of control and many basic things if from out of russia are at insane prices or just gone. They seem to think they will win the non war by the 9th and everything will be back to normal. I highly doubt that though. even if russia wins the non war which looks more doubtful by the day Im doubting their wealth or economy is better for decades with the same leadership. Guess we will see. World is starting to see about russia and putin what eastern europeans knew for a long time.

[shinnosuke]

Plenty of issues, to be sure. But they do have the resources the world needs. After the disasters by Napoleon and Hitler, have we learned not to try to occupy Russia?

[68Camaro]

Plenty of issues, to be sure. But they do have the resources the world needs. After the disasters by Napoleon and Hitler, have we learned not to try to occupy Russia?

Ya know, you would think so, but then humanity always seems to forget the past lessons and/or believe they know better than their elders.

[Treetop]

??? russia is occupying ukraine though. lol. Kinda funny to hear that in relation to a war russia prepped so poorly for and would be doing insanely better if they has taken care of their equipment and trained well. Looked more into russias recent conflicts after this. Tiny Chechnya stood against them for many years and only had 1m people without anywhere close to the backing ukraine has. Germany did miscalculate russias winter versus their gear but would have erased them with ease anyway if they werent fighting on so many fronts for no decent reason. As someone who likes to contemplate alternate land usage and such I find russia wanting more land kinda bizarre since they have so much they basically dont use but could easily with even just things they do in limited ways now. One friend I told this to mentioned ukraines farmland...... except russia could easily grow grain on insane amounts of land they have right now they just dont. They even invested greatly in breeding projects to make such a thing even viable. Their sick ideals about what russia is or should be blind them from the obvious.

Id correct your statement though.... Russia like most places has resources. The EU has them as well btw, they just dont harness them near as much as they could for bizarre political reasons. Similar to what the Us is doing atm. I kinda think there might be weird behind the scenes reasons the west empowered so many weird countries like russia and china. As the media told us it was inevitable lol. No it wasnt. Without mentioning a million details on why I think this is the case.... I think the wests "owners" are sad they dont have the political control over their plebians that china, and russia and others have. Sorry but russia doesnt fit the delusions many have of it. It would fall with ease to any nation with a little resilience, and weapons that work in winter. They might pretend but they dont even respect themselves. Its a joke country. If it wasnt for the west purposely ignorinh their resources russia would have already been forgotten as the weak barely functioning joke theyve always been,

[Doctor Steuss]

Plenty of issues, to be sure. But they do have the resources the world needs. After the disasters by Napoleon and Hitler, have we learned not to try to occupy Russia?

Ya know, you would think so, but then humanity always seems to forget the past lessons and/or believe they know better than their elders.

Reminds me of something that a historian friend of mine said when he finally completed his doctorate. "Human nature is learning from the past to not just prevent making the same mistakes, but to use that knowledge to make spectacularly better mistakes."