By Godfree Roberts – an early extract from his weekly Here Comes China newsletter and posted with permission
WILL RUSSIA DESTROY THE US DOLLAR?
Farewell to Inordinate Privilege
Earlier this week, Russia announced that countries on its Unfriendly Nations list must pay in roubles for its gas. Within hours, the rouble regained its pre-embargo value on international markets.
De facto, the rouble also established itself as a reserve currency in the EU, as is the petrodollar in the Middle East. Having renounced coal and nuclear power, Europe left itself with no alternative to Russian gas.
But wait, there’s more on the currency front: next week, Russia and China will offer frictionless access to the world’s largest market, via cheap, secure, trackable, instantaneous transactions that are free of government manipulation, currency fluctuations, embargoes, and sanctions.
Here’s the backstory: after helping America out of the GFC, PBOC Governor Zhou Xiaochuan observed, “The world needs an international reserve currency that is disconnected from individual nations and able to remain stable in the long run, removing the inherent deficiencies caused by using credit-based national currencies.”
Zhou proposed SDRs, Special Drawing Rights, a synthetic reserve currency dynamically revalued against a basket of trading currencies and commodities. Broad, deep, stable, and impossible to manipulate.
Nobelists Fred Bergsten, Robert Mundell, and Joseph Stieglitz approved: “The creation of a global currency would restore a needed coherence to the international monetary system, give the IMF a function that would help it to promote stability and be a catalyst for international harmony”.
Dr. Putin and Mr Xi wasted no time.
d
2012: Beijing and Moscow began valuing their currencies against an international currency/commodity basket.
2014: The IMF issued the first SDR loan
2016: The World Bank issued the first SDR bond
2017: Standard Chartered Bank issued the first commercial SDR notes.
2019: All central banks began stating currency reserves in SDRs
Mar. 14, 2022: “On April 1, China and the Eurasian Economic Union – Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan – will reveal an independent international monetary and financial system. It will be based on a new international currency, calculated from an index of national currencies of the participating countries and international commodity prices”.
SDRs are inspired by John Maynard Keynes’ invention of a synthetic currency that derives its value from a vast, global, publicly traded basket of currencies and commodities. Utterly resistant to manipulation it is as stable as the Pyramids.
SDRs pose an attractive alternative to the toxic US dollar for the EAEU, 143 BRI member states, the Shanghai Cooperation Organization (SCO), ASEAN, and the RCEP, none of which counts the United States as a member and all of which count Russia as a full or correspondent member.
Adding amusement to this development is the fact that the EAEU, BRI, SCO, ASEAN, and RCEP were already discussing a merger before the Ukraine operation.
I predict a currency mutiny.
—o0o—
Godfree Roberts wrote Why China Leads the World: Talent at the Top, Data in the Middle, Democracy at the Bottom, and publishes the newsletter, Here Comes China.
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It’s roubles now?
Got it.
LMFAO before work
https://en.wikipedia.org/wiki/Ruble
Edit: Both the spellings ruble and rouble are used in English
When was the last time you saw it spelled rouble? Or Kyiv?
Resets require the perpetual alteration of things we used to know into things we never knew in order to convince us that our memory is faulty so that when major alteration occur we are less likely to question them.
Gaslighting
Ruble yesterday, rouble today, rubble tomorrow.
Pretty sobering to listen, might want to rethink rubble thought.
Don’t worry, it’s John Maynard Keynes to the rescue…
Excellent.
Almost. It is rubles backed by real gold and the new leadership in the word combo of Russia and China.
You’re kind of missing the point. Who gives a fuck how it’s spelled?
Rhymes (almost) with “Troubles”….depending on how you say.
PO-tat-TO or po-TA-to….
“(T)Roubles, of which we will have, in bushel-fulls, coming up over the next few years.
On 7 March, the dollar/Rouble exchange rate was 1:133, and yesterday it was 1:99, almost a 30% improvement in the value of the “Rouble”. Or, perhaps, it was a 30% devaluation of the dollar?
I was trying to buy significant amount of “roubles” to support the Russians and Putin, but because of USGOV restrictions, was unable to do so.
So, who is really the (T)”rouble”-maker, and Slayer-of-the-Almighty-Dollar, for all of the World?
Not Russia….nor China….it’s the (((usual suspects)))….as always.
Remember, over the last 2,000 years, 109 countries couldn’t ALL be wrong by throwing the (((Khazarian Mafia))) out of their borders.
YMMV….
CONgress bears the burdon, along with whatever dupe is signing their democidal legislation into law.
The US thinks it can bring China to heel with ever-escalating sanctions. Did I miss where we recreated a manufacturing base after 30 years of intentional collapse? China could strategically pick things to not supply and collapse the US economy. We’re used to them wanting to sell things to us. Have we considered if they refuse to sell select things to us? Also, India is siding with Russia. They produce most of the world’s pharmaceuticals and pharmaceutical precursors.
Plus sell all their treasury notes and collapse the financial system.
Nah, the fed would just make them worthless by creating trillions more. It would increase inflation but they really don’t give a shit.
The West is going to see inflation just like Venezuela had. Instant impoverishment at the hands of politicians. The Rothchilds are shitting their pants. It’s the end of the Jew moneychangers.
The money changers are destroyed in Revelation 18. Until then Godwin use them to bring the earth into punishment for sin.
Foregone conclusion.
Russia has the raw materials.
China has the manufacturing base.
US has the debt.
So we’ll sanction the raw materials and the manufacturing and we’ll show them!
It’s good to be a mechanic when the world collapses…