It’s a smart move by Russian President Vladimir Putin. Facing financial sanctions and economic pressures from the U.S, NATO, EU and western allies, Putin stated today that all oil and gas payments must be made in Russian rubles.
The EU has few options as they are reliant upon Russia for energy products oil and gas. If Putin organizes payment in rubles, his currency will automatically increase. This sets the stage for other less hostile countries like the BRICS alliance to assist Putin ideologically and financially by transacting in rubles through the Russian central bank.
(Oil and Gas) – […] Russian President Vladimir Putin said on Wednesday that Russia would start charging the countries it considers “hostile” in rubles for its natural gas.
“I have taken a decision to switch to ruble payments for our natural gas supplies to the so-called hostile states, stop using the compromised currencies in such transactions,” Putin said, per a transcript published on the Kremlin website as carried by Bloomberg.
The Russian President—whose list of “hostile” states includes the United States, all EU member states, Switzerland, Canada, Norway, South Korea, Japan, and many others – has ordered the Bank of Russia, the central bank, to develop a system for payments in rubles within a week.
“At the same time, I want to emphasize that Russia will definitely continue to supply natural gas in line with the volumes and prices, pricing mechanisms set forth in the existing contracts,” Putin said at a government meeting today.
It makes no sense for Russia to export goods to the EU or the United States in U.S. dollars or euros, Putin added. (more)
It will be interesting to see how quickly they can get this up and running.
check……..
Mate.
Wew…
you mean PewPewPew
“stop using the compromised currencies in such transactions”
An apt description when a foreign government can seize your country’s assets, and your citizen’s, because they don’t like your politics or foreign policy.
A ten year old could see this coming, so it was by design. Russia has commodities the world needs and they will sell them. The real attack is on the US financial system and planned by the globalists.
I feel like Putin is just playing his part too. Isn’t he also a WEF Young Global Leader?
Doesn’t matter. Russia oil production is crashing because they can’t produce it or ship it. So, much ado about less and less.
Um, no. they are currently fulfilling their contracts to the US and EU, so still sending gas and oil, even through the pipeline running through Ukraine. And they will begin to sell eastward, which should be available by the time the western contracts are ended. India, China, as well as other Asian countries have already aligned with them.
Didn’t Modi sign an agreement with Russia a few days ago?
many years ago…yes…BRICS..
in “other” news (predictive), Saudi Arabia will extend an offer for russia to join OPEC.
I don’t think russia will find it necessary to answer back.
the paradigm change ….the world is shifting in broad daylight.
be prepared.
things just got very expensive for being a citizen of an inept, corrupt USG and it’s stupid foreign policy.
Nope. Not about joining BRICS. Modi just signed an agreement with Russia for oil. I’ll have to check the Treehouse.
Modi bought less than a day’s worth of oil (I think it was 3mil barrels).
A shot across the bow.
biden apparently didn’t notice.
“BRICS is the acronym coined to associate five major emerging economies: Brazil, Russia, India, China, and South Africa.”
https://infobrics.org/
Que?
China has “emerged” so they probably don’t belong in that group any longer. But I guess that would muck up the acronym so it stays.
Please read previous articles posted on this Website.
And where are you sourcing your information from?
There has been ZERO indication that Russian oil production is “crashing”. India & China along with Turkey appear to be gobbling it up.
Kind of a lazy & half-baked response on your part.
“Doesn’t matter.”
Actually, what doesn’t matter is your foolishly ignorant handwaving. But by all means keep sticking your head in the sand.
where on earth are you getting this complete nonsense?
russia is moving and has been moving a light speed in production, infrastructure and now a entirely new line of FINTECH made possible by the completely moronic use of trade sanctions.
You know who is assisting (about 80 percent of capitol NOW) with this effort?
China!
China cannot operate without the direct line of supply of cheap fossil fuels from Russia.
Who else is going to support the 1,000 year agenda?
The “west” is playing a very bad hand of public side optics.
Of course, behind the scenes, almost all US and west oil and gas companies have HUGE stakes in russia oil and gas. Why wouldn’t they? it’s the smart move. And has been for at least 6 years now.
You should delete your comment! And change your name…
Not so fast:
No, he wasn’t. And the WEF has recently scrubbed all reference to Putin from its website. However, the final result may be multipolar globalism…
Like Axis and Allies?
Then it’s not globalism.
It’s multi polar globalism.
NO. He is not
He talks as if he is very much against the New /Nazi World Order.
Yes, Putin did attend WEF. It’s confusing, to me at least, to figure out how much of this Biden Administration Rolling Catastrophe (borders, immigration, petroleum, inflation, Afghanistan, Ukraine, Wuhan, Russia, Iran, etc) can be “credited to” Obama, Wall Street, Chamber of Commerce, George Soros, Klaus Schwab, Putin, Jinping, the Clintons, the Flu, etc.
The worst possible condition is for the USA to be saddled with a senile, mentally deficient, corrupt POTUS and even worse replacements in the entire line of succession.
Yes he definitely is not the Hitler figure that democrats paint him to be.
Remember the “Russian Reset” in 2009 when Obama sent crooked Hillary to cook corrupt deals with Putin ? People have almost forgotten Uranium One… or the time Obama told former Russian President and Putin crony Medvedev that he would have “more flexibility” to deal with Putin after he rigs the 2012 election.
https://theamericanreport.org/2021/08/05/the-uranium-one-deal-is-a-clear-and-present-danger-to-america/
To me its clear that the Deep State government wants an extremely weak US dollar
No he is not. He is not young and he is anti WEF
Clearly the policies of Biden have created this mess. And we know his family is compromised.
We have Biden (a mess of dementia), Harris (not a serious person) and Pelosi (whack job) as our top 3 leaders causing chaos both in/out US.
If one were attacking US financial system, what better time with these folks in charge?
Those who wish harm on our financial system or are just trying to strengthen their own currencies/economies by getting away from the dollar are a threat to US/West especially in inflationary times with US significant debt. We know we have escalating/exponential inflation coming, we cannot afford to lose the global currency at the same time.
Our military is the strength behind the dollar and we have been poking the Bear for quite some time in Ukraine.
US/West goal here is to remove Putin (and his anti-globalist policies) from power. Using Ukraine to muster Western politicians and media against Putin. If the effort is successful and Putin is removed, what will replace him?
That’s the real question/problem.
George Soros recently suggested publicly that the West should remove Presidents Putin and Xi from power to avoid WW3.
Klaus Schwab’s WEF announced that it severed relations with the Russian government and President Putin due to the invasion of Ukraine.
Two days ago, Biden stated that “There is going to be a New World Order”.
Seems as if the NWO Global Corporatists(WEF) are worried that the NWO Nationalists(BRICS) might win the NWO.
Either way, both groups want to destroy the US Petro-dollar as the major World Reserve Currency.
I think that this will happen through hyper-inflation.
What worries me is, what happens to the debt?
Do they just write it off?
No funds for Pensions, Social Security, Medicare, etc.
The FED has already monetized $ 9 trillion of debt creating money out of thin air, that’s why we have inflation. The FED will monetize the rest of the debt and we’ll have hyperinflation. You’ll get paid Soc Sec but it’ll buy nothing, crumbs.
People buying overpriced homes will have a pretty large property tax bill.
A home, the same home, can be labeled as worth 100 k, or one million dollars. It is worth another home of equal value, a real asset. So if you can afford the home, that asset is worth far more then the same dollars losing purchasing power at 15 percent a year. If the home heavily deflates as well, which sans trillions more in stimulus, it will, it can still be traded for another home of equal value, its worth is real. So if you can afford a home, and do not own one, it is always a decent investment despite the potential to lose monetary value, it real worth is there
Could we see one more round of stimulus if things crash. Why is Blackrock buying like crazy. Either the dollar is rapidly crashing, or yet another finishing round of stimulus is coming. BTW, in many states if valuations crash, so do taxes.
Social Security has been pegged to the CPI since 1975, to be specific, CPI-W. And while originally a COLA was not triggered unless the CPI was at least 3.0%, that minimum threshold was eliminated in 1986.
Soc Sec can be changed at any time.
As can everyone who is retired on a company pension. If they quit paying SS…there is no more America. Live your best life!
BRICS Countries aren’t trying to ruin themselves. They probably have border laws too.
Puzzled is correct , but we may also see a ” deal ” like 3rd world countries get from IMF.
IE – we’ll give you loans / erase debt , you give US >>> Natural Resources
Think UN / world con-Bank control of The Great Lakes fresh water ?
Or all oil in the Texas + Dakota basins……. Or ……????
And it will be somebody like Hunter Biden signing the “agreement”! All the black soil in Iowa for $10million, 100 pounds of meth, 100 hours with Debbie Dong and a new motorcycle.
The goal is cashless digital currency. Free will will be only a memory.
Actually I do not believe BRICS- with the exception of chyna – want to destroy the US petro-dollar. They have come to realize that when the UniParty is in control of the US government bad things happen. They saw what the demonic forces did to President Trump. They see what the same cabal did by provoking Russia then pretending their own evil, corrupt paws are clean. The NWOers of the west are a danger to the citizens of the world. Best to remove your country from their control.
True. If we didn’t have evil incompetents running our government our currency would still be considered the safest in the world. But they do need fallbacks when we do, like now.
Not sure what happens to 80+ trillion in debt. I bet that one day sooner than everyone thinks we will wake up one day and pensions and social security payments will be disappear. Like a fart in the wind.
The economy is going to be a dumpster fire of epic proportions in the not too distant future.
This Administration still has 2.5 years to make things even more catastrophic.
As much as I like DeSantis, I’m still heavily leaning towards Trump in 24. I trust him much more on economic issues, and things may be so bleak that it will be extremely difficult to dig out of.
Trump for 4 years and then DeSantis.
I agree. I want Trump 2024, too. But with no election reform in critical states, how is that going to happen? The Dems will shut-her-down on election night and stuff the bags. PA is still a s**t show – with mail-in ballots and drop boxes. (And we have our own PA state majority GOP who voted for it – like useless idiots!)
Look what they did in 2020 to throw the election. Color Revolution. First Covid, then Antifa/BLM . I was and am afraid if 2020 isn’t set right how will the people prevail in 2022? Obviously they can’t win – just like in 2019 they obviously couldn’t. We all have to get involved now or forever hold out peace. In whatever way we can contribute. No more silent majority.
Your right, “No more silent majority.” Elections Nov 2022 “The Red Line”.
Election frauds, mandatory prison. Paper ballots.
Government election administrators, if interfering with resolving election results validity, fired and charged. If its the state’s Governor, recalled immediately. No multi-year rope-a-dope in resolving election fraud.
Same here in ca… except they wouldn’t need to cheat- even though I’m sure they do- as there aren’t enough conservatives, except in a few rarified areas, to get anything but a dem elected. The Central Valley had a good portion but Nancy arranged to alter the final tally of several GOP seats and flipped them to democratic even AFTER a republican had been declared the winner. You just can’t make this craziness up!! It’s for real.
I don’t think I could live in California. PA was bad enough – until Trump. Trump turned many Dems into Republicans. It was really astonishing. (Your Dems are way too far gone to see the “light”!).
But the sad fact in PA today is that our majority House and Senate voted for Act 77 in Fall of 2021 – no excuse mail in voting. And it opened the door to the shenanigans on election night 2020. And nothing has changed since.
No true GOP would have ever voted for no excuse mail-in voting. Not when we need voter ID!
3 of these idiots are now running for Governor. One apologized for their stupidity and the other two evade the questions like slick snakes. And their GOP supporters gush all over them – forgetting their sins.
Be looking for DT to challenge his opponents to adopt a list of 2024 election reforms and practices to follow. He will be softening up the ground for a state by state army of civilian observers.
A single person is totally incapable of “fixing” AMERICA at this point. She is under control of an evil cabal that will use ANY level of violence against ANY opposition. If Trump does get back in, the conservative citizens of this country have 1 LAST CHANCE to restore the Constitution and a public-serving government administration by PARTICIPATING, SUPPORTING, ORGANIZING, RESISTING and SPEAKING OUT! Trump is a construction CEO; we need to be his union tradesmen!.
Yes, Trump’s strengths are the economy and foreign relations.
I’d say experience recovering from bankruptcy also serves as a strength. He knows how to come back. We’ll need that.
It’s impossible to get Trump into office.
With a worthless currency and rampant degeneracy, you will soon see why Weimar Germany produced an Adolf Hitler.
I worry you could be correct.
You are wrong!! . PERIOD.
Just in time for the reopening of the Russia stock market, which should work to it’s benefit.
Gavin Newsom unveils gas relief package:
-$400 rebate per registered car, max 2 cars. Payments could start in July
-$750M for 3 mos free public transit
-Up to $600M to pause part of diesel sales tax for 1 yr
-$523M to pause inflation adjustment to gas, diesel excise tax
Totals:
– $9 billion in direct payments to car owners
– $2 billion in relief for public transit & to pause portion of diesel sales tax and increase to gas/diesel excise tax
– $500 million to support active transportation programs (such as walking, biking projects)
The $400 per vehicle rebate also applies to owners of electric vehicles.
California prisoners will register more cars in the next few weeks than exist on used cars lots.
The taxpayers about to be scammed out of billions of dollars by a few guys sitting in jai,
Oh good, more money to flood the system.
Isn’t it like 400 bucks to register a car in CA?
That won’t be inflationary. /s
All these years, newly created dollars went to the Globalist companies, and they simply bought anything that is worth buying; now those new dollars are coming to hoi polloi, who will find those dollars are inadequate to meet the cost of living. There will be inflation, hyperinflation and finally currency collapse, but it will be blamed on the hoi polloi taking the dregs of the pork barrel…
11 billion in Free Relief. That’s a great idea!
sarc
All paid for with COVID cash?
Whether or not the special operation into Ukraine is the work of both Russia and the West is not relevant. What is relevant is that Russia created a parallel economy over the last 15 years and no one paid attention. V. Putin said in an interview that sanctions only made them smarter because they had to find work-arounds to keep their economy going. Russia will be fine while the West devolves into the abyss. The West is run by ideologues and geriatrics; elections have consequences. Russia is run by intelligent people who seem to genuinely care for their nation and its people. Western hegemony is dead. Welcome to the new order of things where we either continue to be abused by our leaders, or we find new ones and bend them to our will.
‘Bend them to our will’ as I recall, Henry V has the next lines ‘Or break them asunder.’
So I guess we tell our allies that we can no longer afford to protect them. They’re on their own, good luck. Wonder how that’ll play?
Since when has Ukraine been considered our “allie”?
We have no obligation to Ukraine in any capacity.
If an Article 5 violation occurs then a whole different conversation will ensue. And even then, we had better confirm & verify that alleged violation beyond reproach or question before we retaliate.
Hey, Brandon, your sanctions didn’t work. They just made him angrier.
If there is an end of the Petro-Dollar nobody would want to have them outside the US.
That means all those dollars that are abroad would want to buy American goods.
I think it could be good for the American workers but bad for the American bankers.
The “powers that be” did not think the confrontation with Russia would bring the Dollar down
because their power will be greatly diminished. But they still control this government and they will make sure they don’t come as the losers in this country.
There is the possibility that the US to help its ruling class creates a new currency and the winners and losers are going to be determined by who/what gets a conversion to the new currency.
Any way that was the plan once they took control of the entire World.
What American goods? Other than weaponry, we are a service economy, not a manufacturing economy.
The demonic cabal is pure, undiluted evil. That is it. Smart they are not..
The USA could & should be totally self sufficient, Gods land of milk and honey needs to go back to our roots.
I’m not sure folks are seeing the three and four moves ahead already calculated by the global cabal. Destruction of the dollar is part of it. Extreme hard times requiring the sheer welfare of the “government” to survive is part of it. To get that assistance you must be registered digitally and accepting of all government requirements. And….I contend….
SUSPENSION OF ELECTIONS DUE TO NATIONAL EMERGENCY/MARSHALL LAW IS PART OF IT.
Midterms may survive but will this nation?
Martial law!
Yep spell check got me and it was too close to supper to proof.
Beats Marital Law 😇
After 45 years of bliss (and rough patches) I may have avoided the results of that. Knock on wood.
How do you say, “We are so screwed,” in Russian?
мы так облажались.
This should have been the case for a very long time. The fact that it hasn’t has actually cost all of us a lot of money, for a very(!) long time. Let me explain …
Nearly every contract of interest is a futures contract: say, negotiating the price (and currency …) today for the delivery of X million gallons or tons of fuel tomorrow. A product that hasn’t yet been manufactured, or pulled from the ground and refined. Every airline, railroad, shipper, fleet trucking company, gas station owner … uses this, as do the wholesalers who supply them.
Obviously, such contracts are extremely vulnerable to both inflation and currency manipulation with regard to any currency(ies) that is involved. They are also vulnerable to which trading system (e.g. SWIFT) is used, and to which so-called “bourse” ultimately settles the transaction.
The United States Dollar (USD, US$) has been “a compulsory part” of most such trades, thanks to an archaic agreement made by Henry Kissinger(!) almost fifty years ago. It also owns several bourses and now-historically important trading systems, which used to be the only ones available. And, the United States has been taking ruthless advantage of that for many decades.
In order to counter these potential losses, which usually do occur, traders must “hedge.” In effect, buying insurance. The cost of this – sometimes a very large cost – is wrapped into the trade. And so, you pay for it all. In everything you buy at any store, in any airline ticket you buy, in every gallon at the pump. (The majority of the cost of everything represents costs, not profit.) The prices of all of these things, and of the fuel needed to move them, are settled in advance. “Futures trades.”
So, this is how and why you see the US Government “borrowing from itself” hundreds of billions or even trillions of “US$,” as though they could “simply do it” without affecting anyone. They do it because indeed it does not affect any of them. But, it certainly does affect you! “Nothing’s free – especially not money.”
Russia is entirely correct to recognize that these arrangements are, in the present day: harmful, irrelevant, and obsolete. It doesn’t need to play its game anymore in a casino where the cards are marked. And, neither does anyone else.
If Russia really wanted to own the EU… Simply demand physical gold as payment for oil and natural gas… The end result would be the destruction of the gold derivative and the US dollar as a viable reserve currency. To make matters worse for the US, the national debt outpaces the total US gold reserve by a factor of at least 2-to-1…
There is not enough gold on the planet to satisfy the daily needs of traders. We used to schlep gold bars from one room to another in big underground vaults in Manhattan, until we finally realized that it was utterly pointless to do so. Currency really is “an abstract thing.”
Also: the US$ has never been the only “reserve currency.” There are actually six or seven of them today. But, the US$ has been “a compulsory part” of certain trades – particularly oil – even when it did not make sense to the traders to include it. This is what is finally going away.
And I say, “good riddance!” (Yeah. And I’m an American.)
“And so, you pay for it all.”
Ah yes!!! the bottomless pockets of the American taxpayer.
One practical consequence of this move will be that the USA will be forced to realize that its pockets are not “bottomless” at all.
This will be “the spanking that was too long in coming.” No, the “spoiled child” will not die from it, even though he will howl that he surely is about to.
Next up:
Russia requires Europeans that need Russian Gas to ALSO take Russian Oil
• because Russia’s Oil Storage is tapped
• and Russia will now have to start shutting in wells if exports don’t resume
Russia requires Payment in ADVANCE for both
• rather than Payment on Delivery
• because Ships won’t pick up the Russian Oil
• and Central Banks won’t process Rubles
So basically Biden did Putin yet ANOTHER favor! Who’s the Russian asset now? 🤔
“The West did a STUPID thing.”
Knowingly and otherwise…business as usual.
It seems like the whole purpose of the Great Reset was to transfer all of the finances and power of the masses into the hands of a select few…the Committee of 300 per Klaus Schwab.
The final 2 obstacles that they had to overcome were:
1. The American Middle Class.
2. Russia.
They already stole the money from the American Middle Class during the Covid Lockdowns.
They did it through Black Rock, Vanguard, and State Street.
The politicians know this…the Uniparty is spending like crazy.
There is no money left to fund Pensions, Social Security, Medicare…
They have to crash the US Dollar and then, pretend to step in to save us from the depression that they are about to create.
If they can make us miserable enough by unemployment, homelessness, starvation…we’ll accept any handout from the Government.
They are in the process of doing the same thing to Russia…creating economic depression.
We need a Great Resistance:
Bring manufacturing back to the US.
Get rid of the FED.
Become energy independent again.
Get rid of most 3 letter agencies.
Protect the border.
Term Limits.
Extreme Federalism.
Good post.
It will be interesting to see where the ideology and loyalty of Europe falls. Does Europe side with the US and wholly reject Russian oil? Or does Europe embrace the Russian demands and begin buying oil in Rubles? Putin has successfully engineered a squeeze play with Europe. The green leftists in Europe are forced to choose. Brilliant!
Europe will embrace Russian oil and when Putin wants more than trade.with Europe they will cry like babies for American soldiers to rescue them.
I doubt Putin reverses this and accepts payments in other currencies even if the Ukraine war doesn’t last long (a big assumption, I know, as the GOP establishment and Dems seem to want another Afghanistan). This could have profound consequences. Russia is a big exporter of commodities other than oil and natural gas.
Way too much…
Gloom, despair, and agony on me
Deep, dark depression, excessive misery
If it weren’t for bad luck, I’d have no luck at all
Gloom, despair, and agony on me
Never forget the day after Dec 7, 1941 the Axis of Evil soon discovered their plans had some fatal errors by underestimating the resilience of the United States
Hee Haw … damn, I miss that show. (And, so many of the now-departed actors and actresses who played on it.)
I still remember what it looked like on a black-and-white television. (My grandfather had a color set!!)
1791 — America’s Bill of Rights!!!
Great User Name…congratulations.
GO ONE LEVEL DEEPER !!!
The EU simply does not have the Russian Rubles to pay for the gas. Where are they going to get them? And how are they going to buy them? Go to the Central Bank of Russia and ask them to exchange Euros for Rubles? Then why not pay in Euros to begin with?
This is why you see headlines that state “everyone is confused” by what Putin is doing. If the Central Bank of Russia won’t accept US Dollars or Euros, that leaves the Renminbi as an option. Russia can use those Renminbi to buy goods from China. However, the easiest thing to do is to exchange Rubles is GOLD.
And Russia has the largest gold reserves of any treasury on the planet, about $600 billion dollars worth. $600 billion does not seem like much, but remember the value of those reserves is calculated based on an exchange rate of ~$2000 usd/ounce.
So, what happens when the demand for gold increases, which it will because everyone needs it to buy Russian gas, and the value per ounce doubles or increases by a factor of ten?
Then Russia will be sitting on 6 trillion dollars worth of gold reserves. And the Russian GDP is 1.5 trillion dollars. To understand the significance of that: the US GDP is 22 trillion dollars and the deficit is $30 trillion dollars, so imagine having $220 trillion in treasury gold reserves!
Putin is not saying directly that he is switching to a Gold Standard or will only accept gold for oil, but by asking for Rubles it is essentially the same thing.
VERY CLEVER !!!
The United States has the highest gold reserves BY FAR than anyone else on the planet, followed by Germany, then France.
Ooops, sorry, you are correct, … I was thinking in gold reserves in relation to GDP. Given that the United States has 4 times the physical amount of gold, that would amount to 24 trillion if gold were to increase in price by a factor of 10. And that would not even cover the US national debt. However, the effect in Russia would be monumental by comparison. That is the general idea I was trying to convey.
And your correction/figures also indicates that the Europeans will have no problem getting the rubles they need for the gas purchases. Exchange their gold reserves for rubles and the gas will flow.
I’m not sure we do. Both Rand and Ron Paul have asked to audit this for years because they suspect we dumped a lot of our gold and Fort Knox is empty. Remember a couple of years ago when some country asked to take their gold we were storing back and we said it would take months and months?
As a numismatist for over 50 years I’ve been keenly aware of such suspicions and over the decades starting in 1974, and as recent as 2017, there have been audits.
https://coinweek.com/bullion-report/u-s-mint-releases-fort-knox-audit/
Fort Knox WAS empty in 2017. 😉
Strange belief……
USA GOLD has not been audited or seen since the 1950’s . America could not repay 700 tones of GERMAN GOLD…??????
Read 15 years or more ago that Russia can collapse America by simply going on the gold standard.for the above reason.
Everyone has a nose but very few notice them when shouting. Its obvious, the gold standard cometh ( National Bank Deposit control)…gold trade/commerce and big ticket personnel finance, with silver coins for a world without war.
America has gold nose rings …LBQXYZzzzzzs sex with pets, owning nothing and being happy… VOTE BRANDON.
One of the first things he did when becoming Secretary of the Treasury was Steve Mnuchin did an in person audit of the nation’s holdings at Fort Knox, among other places. Think he did that in 2017 shortly after his confirmation.
Sure it has but you’re not looking out for them: See response above
Think China has a lot more gold reserves than people realize.
No they don’t.
Russia is really only saying that it will only accept inbound trades whose “final settlement currency” is Rubles. That choice is a “drop-down list” on any trader’s computer screen . . . 🤷♂️
Saw this comment on another site today: Is it a violation of existing or possible future sanctions for Western countries to purchase rubles in the first place? If so, Russia may be forcing the issue here. If gas has to be paid for in rubles, and Europe needs gas to function at all, and if the US declares it illegal to buy rubles to pay for gas, then we see a huge conflict on the horizon between Europe’s ability to keep its people heated and fed and their obeisance to US dictates.
The US can “declare” whatever it wants. Good luck enforcing that.
This is Putin’s strategy. He intends to drive a deep wedge between the US and Europe. As an added bonus, he hopes to widen already existing fractures between Hungary and Poland on one side, and Germany and France on the other.
Memory says the only reason the use of a gold standard worked was because the nations agreed to keep the value of gold at an arbitrarily low price, think it was held at $21.00 per ounce. and before that it was deemed that the value of silver would be held at 1/16 the value of gold, hence the 16:1 standard that gave other nations a reliable number they could use to determine the value of their international trade.
Nothing to stop that arbitrary valuation to return if enough nations decide to adopt it again.
America has a country full of suckers because Communist China is playing all of them because they are buying Russian gas which provides the needed money to finance Putin’s War in the Ukraine along wiht President Biden also buying oil from Putin at the rate of $7 Billion per week.
https://www.theepochtimes.com/china-bought-twice-as-much-russian-liquefied-natural-gas-in-february_4356169.html?utm_campaign=socialshare_twitter&utm_source=twitter.com
I just checked the NY Times and Wall Street Journal to see how they reported this news. WSJ tried to downplay it, NY Times was neutral and simply stated the facts. What was interesting is that neither article was open for comments, which is a peculiar since articles like those typically allow comments. I’m thinking they don’t want any finance insiders laying out how bad this could turn out for the U.S.
The NY Times was what!?
Exactly…rolling eyes.
This only works until we get Pres. Trump back in the Whitehouse in 2024, then we’ll become again a net exporting Oil Nation.
Then the Russian will wish they were still using Dollars, especially once the cost of a barrel of Oil drops dramatically due to OUR domestic production.
The same applies to the Middle East and OPEC as we’ve ALWAYS allowing them to take our lunch due to self inflicted wounds such as banning drilling in the West Coast and recently with the Incontient and Chief stopping the Keystone Pipeline.
This is a huge day for the future of gold. One of its biggest days since 1971.
Not a return to the gold standard…this is a central bank scheme manipulated behind the curtain.
I believe this currency system will be BACKED by GOLD — totally transparent so the world can follow the money.
Gold destroys the Fed.
100%
The FDR’s 1933 E.O. 6102, and the 1934 GOLD Federal Reserve Act illegally confiscated our gold!
Now the U.S. Dollar is backed by the “full faith and credit” of the United States. Makes me feel better; how about you?
I would be very surprised if the Russian Federation Central Bank hadn’t already pre-planned this since it is a very predictable chess move given the circumstances.
If the BRICS countries abandon the dollar then the inflation rate in this country will skyrocket to levels never before seen. It will wipe out the savings of most middle class families and lead to wage and price controls that will cause widespread shortages. Things could get a lot uglier than they are now.
It’s been a thorn in the side of – especially, energy – traders for a very long time that certain trades must “pass through,” or “include,” the US$. And thus expose the trade to adverse manipulation by that particular country, when the traders would ordinarily and sensibly avoid using it for that same reason. (The US$ is basically a “compulsory side-trip” in many such trades.)
Henry Kissinger, amazingly enough, isn’t dead yet … but the damage that he caused fifty years ago just might be.
Right now, traders are forced to use this currency, and therefore they must “hedge.” Basically an insurance policy that y-o-u wind up paying for.
No, the US Dollar won’t “melt down” because of this … but you might wind up paying considerably less per gallon at the pump!
But, but, but “Puhtin is a madman.”
GOLD backed Rubles — BRILLIANT! pardon the pun 😉
“Currency units” are not actually “backed by” anything at all. The only thing that matters, at least to a futures trader, is that their market value changes over time. You contract to supply, say, a million gallons of Jet-A fuel at a price of $X (or any other currency) per gallon for delivery in one year. But you haven’t pumped or refined it yet. What matters to you is that the currency you received today might not be enough to profitably settle the contract tomorrow, when you have to pay other people to actually pump and refine the stuff, and send it through a pipeline to the airport next year.
The “reckless manipulation” that the USA regularly engages in, as it “borrows from itself” hundreds of millions or billions or even trillions of US$, is exactly the reason why you, as a sensible trader, do not want to include US$ in your trade at all. Nor should you have to. But, right now, you do!
Therefore, you have to “hedge,” and to build the cost of that hedge into the final cost of the contract. I think that we’re seeing this disappear right now. You just don’t realize how big that “hidden” cost component actually is.
ZERO crap 1971-2022 worthless fiat dollars. Is there one Treeper who believes that our fiat money has a true monetary value? At whatever the speed, it is losing value every day.
If you were Putin, would you be willing to sell your precious oil for worthless paper; as would no sane person.
the smart move would be to launder this transactions in yuan…and the back again as debt payments in rubles.
China needs to more and a direct transactions in rubles is missing a great opportunity.
have I said too much.?
that’s the smart play.
wait…who am I kidding…
WHO OWNS BRICS?
everything you see and hear in this new paradigm shift is deception.
Russia is playing 5D chess. And China is still one step ahead.
USG is not even on the board….EU is somewhat more intelligent as they are heavily invested in Russian gas and oil, so that tends to balance things out for them.
Tragic, the basics are being totally missed by our so called leadership. They are morons.
WE KNOW.
Trades are completely computerized now, and “settled” in milliseconds using “zero or more” intermediate currencies as indicated by the traders.
Currently, “US$” is a compulsory component of certain trades – particularly oil. Thanks to Henry Kissinger, fifty years or so ago. But, I think that we’re right now witnessing the end of this.
Right now, you pay a lot more for energy, basically as an “insurance premium” for what the USA might next decide to do to and with its “magic currency” during the period of time between the execution of a contract and its final settlement/delivery.
Suck on THAT, Biden.
Face it the Biden Administration are all playing in the politically correct kindergarten sand box pathetically parasitic hangers on now bumbling about in the Adult World .
Fortunately the MSM and leftist DC feral cats will continue their scurrying about covering their shit !
Everything is starting to smell and the real adults know it !
It’s that stench of fear and uncertainty while pretending to be tuff !
The current occupant of the WH (aka Resident Potato Head) has created a major clusterfk that will be almost impossible from which to recover.
Brilliant move by Putin. The Western economists caught with their pants down.
Next up … expect Saudi Arabia and UAE to start demanding payment in Chinese Yuan.
This will start the end of the U.S. dollar as the reserve currency. The purchasing power of the dollar for Americans will decline severely overnight. Maybe 25% or more. Nice going Biden you idiot.
Euro to Ruble trend.
This is the proverbial “crack” in the dike.
(Un)Intended consequences.
Modern Treaty of Versailles.
Make ours here in the US payable by those NATO Countries that sold military equipment that WE sold them for their defense. I saw a picture of Armored Personnel Carriers that we sold them, and they in turn sold them to Russia, that ARE US Army APC’S. What else have they forwarded to them? What other enemy of ours have they been arming with OUR weaponry?
Wait ’til he requires payment in gold/silver.