Thursday, April 3, 2014 The 4th Media News
Putin Flushes the US Dollar: Russia’s Gold Ruble Payments System Delinked from Dollar?
A New Financial System independent from Wall Street and City of London begins to take shape concretely in Russia?
Russia “forced” by the sanctions to create a currency system which is independent from the US dollar.
Russia announces that it will sell (and buy) products and commodities – including oil – in rubles rather than in dollars. The move is towards the development of bilateral.
Putin has been preparing this move — the creation of a payment system in rubles completely independent and protected from the Dollar and the “killer speculations” (e.g. short-selling) of the big Western financial institutions — for a long time.
After sanctioning several Russian banks to punish Russia for Crimea, the Washington politicians were told by the financial power-to-be to step back because obviously, the Wall Street vampires understand that putting Russian banks outside the reach of their blood sucking teeth is never a good idea.
For Wall Street and the city’s financial services, countries like Russia should always have an open financial door through which their real economy can be periodically looted.
So Washington announced that it was a mistake to enforce sanctions on all Russian banks; only one, the Rossiya bank shall be hit by sanctions, just for propaganda reasons and to make an example out of it.
It is what Putin needed. Since at least 2007, he was trying to launch an independent Ruble System, a financial system that would be based on Russia’s real economy and resources and guaranteed by its gold reserves.
No tolerance for looting and financial speculation: A peaceful move, but at the same time a declaration of independence that Wall Street will consider as a “declaration of war”.
According to the Judo strategy, the sanction attack created the ideal situation for a “defensive” move that would redirect the brute force of the adversary against him.
And now it’s happening. Bank Rossiya will be the first Russian bank to use exclusively the Russian ruble.
The move has not been done in secret. On the contrary. A huge golden ruble symbol will be set up in front of bank Rossiya headquarters in Perevedensky Pereulok in Moscow “to symbolize the ruble’s stability and its backing by the country’s gold reserves,” the official agency Itar-Tass explains quoting the bank officials.
In fact, the officials are very clear on their intention to punish the western speculators that have been looting their country for a long time:
“Russia, at its present stage of development, should not be dependent on foreign currencies; its internal resources will make its own economy invulnerable to political wheeler dealers.”
This is only the first step, declared Andrei Kostin, the president of VTB, another bank previously sanctioned:
“We have been moving towards wider use of the Russian rouble as the currency of settlement for a long time. The ruble became fully convertible quite a long time ago.
Unfortunately, we have seen predominantly negative consequences of this step so far revealed in the outflow of capital from this country. The influx of foreign investments into Russia has been speculative and considerably destabilizing to our stock markets.”
According to Itar-Tass, Kostin was very precise and concrete:
“Russia should sell domestic products – from weapons to gas and oil – abroad for roubles and buy foreign goods also for rubles….Only then are we going to use the advantages of the rouble being a foreign currency in full measure.”
Putin himself lobbied for the new siystem in meetings with members of the Upper House of the Duma, the parliament, on March 28, overcoming the last doubts and indecisions:“
“Why do we not do this? This definitely should be done, we need to protect our interests, and we will do it. These systems work, and work very successfully in such countries as Japan and China. They originally started as exclusively national [systems] confined to their own market and territory and their own population, but have gradually become more and more popular…”
Alea Iacta Est!
By Umberto Pascali, Information Clearing House
The US has dominated trade for nearly a century. That is coming to an end as its manufacturing sector continues to shrink. Yet the dollar continues to be the world currency, providing numerous advantages for the US that other countries resent.
The US is looked at as a declining power, hopelessly in debt. It is able, through the dollar, to export inflation to other countries.
The world views the US as fiscally and monetarily out of control and unwilling to make the proper, hard economic decisions. There is fear that continuance with the dollar risks massive inflation throughout the world and/or a collapse of the world’s only international currency.
Fortunately for the US, there is no other fiat currency capable of replacing the dollar — at least now. The Euro was a hope for awhile, but now it is apparent that the Euro will not survive much longer. The motives for finding an alternative to dollars is strong because the risks (and advantages) are so great.
One approach would be to create an international currency consisting of a basket of other currencies and/or commodities. How likely it is that one could be developed is moot. Suffice to say that there is strong motives on the part of many other countries to come up with such an alternative.
Sovereigns Declare War on U.S. Dollar
BY CHRIS BLASI01/24/2012
Profoundly significant news came out of the Middle East on Monday January 23, 2012. The headline via DEBKAfile* reads:
India to Pay Gold Instead of Dollars for Iranian Oil. Oil and Gold Markets Stunned
Within the body of the report were gleaned these crucial items:
- India has become the first buyer of Iranian oil to agree to settle purchases in gold.
- China is expected to follow India’s move.
- Approximately 40% of Iran’s total oil exports are consumed by India and China.
- Settling oil transactions in gold enables Tehran to circumvent the EU’s upcoming freeze on Iran’s Central Bank assets and the oil embargo announced Monday January 23rd.
- Due to the magnitude of the transactions proposed, the price of gold is expected to rise and the Dollar’s value depressed on world markets.
- The EU currently accounts for approximately 20% of Iran’s oil exports.
- The transactions are to be facilitated via two Indian state owned banks and a Turkish state owned bank.
- Financial mechanisms have also been implemented between Iran and Russia for the settlement of oil purchases in currencies other than the US Dollar.
Iranian Crisis Evolving into Dollar Hegemony and Western Power Challenge
At this point in time it is unnecessary to rehash the dismal state of fiscal and monetary affairs that plague the US. Excluding the willfully delusional, it is clear to any honest analyst that the gargantuan debts of the US can never be paid in full with dollars retaining current purchasing power. Further, with the insatiable need to issue exponentially growing volumes of debt to keep the welfare/warfare state hobbling along, who would willingly continue to finance such a debacle? All that’s left to supports this failing fiat experiment is an entrenched, yet deteriorating, reserve currency system to which there has not been a functioning alternative to date.
It is because of this macroeconomic environment, and the policies that gutted a previously productive goods producing economy, that the only tool left for the US to maintain the status quo is to defend at all costs the Dollar’s reserve currency status….and its foundational component the Petro Dollar. This is most likely the motive behind the quickening drumbeat to go to war with Iran. If keeping the world safe from rogue states with nuclear capabilities were the sole motive, than why have North Korea and Pakistan been given a pass?
Unlike the invasion of Iraq, whereby that oil rich nation had no allies come to its aid or at least none with the wherewithal to dare protest in a meaningful way, the Iranian crisis is developing into a far more serious geopolitical happening. Just as most wars are a smokescreen for behind the scenes power plays between the various ruling class, the events unfolding in the Persian Gulf look to be such in spades. What will shock the world when the actions reported above are fully digested is the choosing of sides and the clandestine development of alternative financial mechanisms by those nations previously believed not ready or unable to challenge the Western elites.
Following years of speculation as to the fate of the US Dollar and the lengths to which Western bankers would go to defend the system that serves them so well, could today’s headlines be the proverbial ringing bell? Unfortunately, the actions of most bankrupt and overextended empires is to march its people into a calamitous war. As with all historically recorded futile endeavors in defending the indefensible (i.e. a debt based paper monetary system), the most likely financial survivor will again be gold.
- Iran to Sell Crude Oil for Gold (adask.wordpress.com)
- Gold for Oil: India and Iran Ditch Dollar (the2012scenario.com)
- Sanctions dodge: India to pay gold for Iran oil, China may follow – RT (tribuneofthepeople.com)
- Despite Sanctions by EU & US, Irani Black Gold Turns into 24K Gold (jafrianews.com)
- Asia Continues to Dump the Dollar (radocracy.com)