By Ronan Manly of Bullionstar.com
With Russia’s central bank having just profoundly altered the international trade and monetary system by linking the Russian ruble to both gold and commodities, journalists in Moscow asked me to write a Q and A article on what these developments mean, and the ramifications of these changes on the Russian ruble, the US dollar, the gold price and the global system of currencies. This article has been published on the RT.com website here.
Since RT.com is now blocked and censored in many Western locations such as the EU, UK, US and Canada, and since many readers may not be able to access the RT.com website (unless using a VPN), my Questions and Answers that are in the new RT.com article are now published here in their entirety.
Who would have thought that citizens of ‘free speech’ Western countries would need a VPN to read a Russian news site?
Why is setting a Fixed Price for Gold in Rubles significant?
By offering to buy gold from Russian banks at a fixed price of 5000 rubles per gram, the Bank of Russia has both linked the ruble to gold and, since gold trades in US dollars, set a floor price for the ruble in terms of the US dollar.
We can see this linkage in action since Friday 25 March when the Bank of Russia made the fixed price announcement. The ruble was trading at around 100 to the US dollar at that time, but has since strengthened and is nearing 80 to the US dollar. Why? Because gold has been trading on international markets at about US$ 62 per gram which is equivalent to (5000 / 62) = about 80.5, and markets and arbitrage traders have now taken note, driving the RUB / USD exchange rate higher.
So the ruble now has a floor to the US dollars, in terms of gold. But gold also has a floor, so to speak, because 5000 rubles per gram is 155,500 rubles per troy ounce of gold, and with a RUB / USD floor of about 80, that’s a gold price of around $1940. And if the Western paper gold markets of LBMA / COMEX try to drive the US dollar gold price lower, they will have to try to weaken the ruble as well or else the paper manipulations will be out in the open.
Additionally, with the new gold to ruble linkage, if the ruble continues to strengthen (for example due to demand created by obligatory energy payments in rubles), this will also be reflected in a stronger gold price.
What does this mean for Oil?
Russia is the world’s largest natural gas exporter and the world’s third largest oil exporter. We are seeing right now that Putin is demanding that foreign buyers (importers of Russian gas) must pay for this natural gas using rubles. This immediately links the price of natural gas to rubles and (because of the fixed link to gold) to the gold price. So Russian natural gas is now linked via the ruble to gold.
The same can now be done with Russian oil. If Russia begins to demand payment for oil exports with rubles, there will be an immediate indirect peg to gold (via the fixed price ruble – gold connection). Then Russia could begin accepting gold directly in payment for its oil exports. In fact, this can be applied to any commodities, not just oil and natural gas.
What does this mean for the Price of Gold?
By playing both sides of the equation, i.e. linking the ruble to gold and then linking energy payments to the ruble, the Bank of Russia and the Kremlin are fundamentally altering the entire working assumptions of the global trade system while accelerating change in the global monetary system. This wall of buyers in search of physical gold to pay for real commodities could certainly torpedo and blow up the paper gold markets of the LBMA and COMEX.
The fixed peg between the ruble and gold puts a floor on the RUB / USD rate but also a quasi-floor on the US dollar gold price. But beyond this, the linking of gold to energy payments is the main event. While increased demand for rubles should continue to strengthen the RUB / USD rate and show up as a higher gold price, due to the fixed ruble – gold linkage, if Russia begins to accept gold directly as a payment for oil, then this would be a new paradigm shift for the gold price as it would link the oil price directly to the gold price.
For example, Russia could start by specifying that it will now accept 1 gram of gold per barrel of oil. It doesn’t have to be 1 gram but would have to be a discounted offer to the current crude benchmark price so as to promote take up, e.g. 1.2 grams per barrel. Buyers would then scramble to buy physical gold to pay for Russian oil exports, which in turn would create huge strains in the paper gold markets of London and New York where the entire ‘gold price’ discovery is based on synthetic and fractionally-backed cash-settled unallocated ‘gold’ and gold price ‘derivatives.
What does this mean for the Ruble?
Linking the ruble to gold via the Bank of Russia’s fixed price has now put a floor under the RUB/ USD rate, and thereby stabilized and strengthened the ruble. Demanding that natural gas exports are paid for in rubles (and possibly oil and other commodities down the line) will again act as stabilization and support. If a majority of the international trading system begins accepting these rubles for commodity payments arrangements, this could propel the Russian ruble to becoming a major global currency. At the same time, any move by Russia to accept direct gold for oil payments will cause more international gold to flow into Russian reserves, which would also strengthen the balance sheet of the Bank of Russia and in turn strengthen the ruble.
Talk of a formal gold standard for the ruble might be premature, but a gold-backed ruble must be something the Bank of Russia has considered.
What does this mean for Other Currencies?
The global monetary landscape is changing rapidly and central banks around the world are obviously taking note. Western sanctions such as the freezing of the majority of Russia’s foreign exchange reserves while trying to sanction Russian gold have now made it obvious that property rights on FX reserves held abroad may not be respected, and likewise, that foreign central bank gold held in vault locations such as at the Bank of England and the New York Fed, is not beyond confiscation.
Other non-Western governments and central banks will therefore be taking a keen interest in Russia linking the ruble to gold and linking commodity export payments to the ruble. In other words, if Russia begins to accept payment for oil in gold, then other countries may feel the need to follow suit.
Look at who, apart from the US, are the world’s largest oil and natural gas producers – Iran, China, Saudi Arabia, UAE, Qatar. Obviously, all of the BRICS countries and Eurasian countries are also following all of this very closely. If the demise of the US dollar is nearing, all of these countries will want their currencies to be beneficiaries of a new multi-lateral monetary order.
What does this mean for the US Dollar?
Since 1971, the global reserve status of the US dollar has been underpinned by oil, and the petrodollar era has only been possible due to both the world’s continued use of US dollars to trade oil and the USA’s ability to prevent any competitor to the US dollar.
But what we are seeing right now looks like the beginning of the end of that 50-year system and the birth of a new gold and commodity backed multi-lateral monetary system. The freezing of Russia’s foreign exchange reserves has been the trigger. The giant commodity strong countries of the world such as China and the oil exporting nations may now feel that now is the time to move to a new more equitable monetary system. It’s not a surprise, they have been discussing it for years.
While it’s still too early to say how the US dollar will be affected, it will come out of this period weaker and less influential than before.
What are the Consequences of these Developments?
The Bank of Russia’s move to link the ruble to gold and link commodity payments to the ruble is a paradigm shift that the western media has not really yet been grasped. As the dominos fall, these events could reverberate in different ways. Increased demand for physical gold. Blowups in the paper gold markets. A revalued gold price. A shift away from the US dollar. Increased bilateral trade in commodities among non-Western counties in currencies other than the US dollar.
This whole (so far) Fata Morgana discussion reminds me of Dr. Strangelove:
“The whole point of the doomsday machine is lost if the Russian government keeps it a secret!”
“Why didn’t you tell the world?”
One of my favorite movies of all time…for a number of reasons. The source novel Red Alert (which was not a black comedy) was not a particularly big seller. The author was a kind of techno novelist before that became fashionable with Tom Clancy and The Hunt for Red October. In fact, the author, Peter George, had a sad life afterward, and as I recall committed suicide. Stanley Kubrick turned it into a masterpiece of cold war black comedy but had to hold back the release after JFK was assassinated. Had to redub a line or two and deal with legal issues with the movie version of Fail Safe.
George C. Scott impressed Kubrick and the whole production crew with his acting and ability to remember his lines. One particularly long monologue Scott had, Kubrick told him , “Just go as far as you can remember, and will restart with another camera position from that point.” He had expected at least two or three scenes, but Scott did the whole thing in one take, and the entire crew and actors applauded at the end. If you see the movie it is the monologue about Russian capabilities and what an American B-52 pilot can do.
Talk about karma. The US thought its abundance of paper money indicated wealth. But Russia sits on products of real wealth–food, fossil fuels, rare earths, fertilizers, etc. So when the US braintrust shuts Russia off from our (US) paper money, Russia simply responds by saying pay us for our products, which you desperately need, with gold or OUR (Russian) paper money. By the way, one of the only ways you can obtain OUR (Russian) paper money is by buying it with gold. Thank you very much.
So the brilliant leaders in the US have backed us into a gold standard which they desperately wanted to avoid.
Now we will see how much gold is really in Fort Knox.
Not that many years ago, I forget if it was under 44 or 45, countries whose gold we “hold” started to demand repatriation, only to be put off/delayed by the USSA.
I believe some may have left but not much and I bet there were some very interesting back channel talks going on. Max Keiser covered it quite a bit.
We, indeed, might just find out, the hard way, how much is left after years of rehypothecation by TPTB.
I remember years back some claims that Bill Clinton’s Treasury Dept. was playing games around the same time as” The Brown Bottom” when the stupid, stupid fuquere and Chancellor of the Exchequere Brown in the UK sold off all the British Gold for $260 an ounce.
Any of you folks who do not know what hypothecated and rehypothecated mean, please look it up. It’s a big deal and important to know.
Russia accepts BTC also. That is the biggest news inasmuch as the world is moving toward a block chain financial system.
This moment is the reason why the USA is negotiating the Iran nuclear deal. The Central Banking Nexus needs a nuclear armed Iran to obliterate any Gulf country that sells a significant portion of its oil exports in a currency other than US dollars (i.e., Federal Reserve Notes). It is essentially a form of mutually assured economic destruction – sell oil in currency X, get blown to bits, get blown to bits 15 – 20 million bopd is taken off market, 15 – 20 million bopd taken off market in one fail swoop sets off global economic Armageddon, global economic Armageddon starves 3 to 5 billion people, 3 to 5 billion people starved begins Great Reset just as there was a Great Reset after the Black Death.
We lost that last 14th century Great Reset where the combined powers of the crumbling aristocracy and the degenerate and useless Church combined forces long enough to keep Europe’s population down through treasury depleting wars until the people could be ruled over by the reborn aristocrats in the form of rentiers – a new form of feudalism via financial means with obligations to the Lord replaced with obligations to the Lender – who in turn formed a symbiotic relationship with democracy and the old court Jews who gained control over every nations issue of currency through their ownership of each nations central bank. Usury and democracy go hand in glove and when combined with media are the major components of Western mankind’s oppression.
Could it be that Trump and Mnunchin pulled the pin on the Federal Reserve Note financial grenade when they issued $17.66 trillion to international banks via REPO from Sep 2019 to Mar 2020? You know, two months before the first SARS-CoV-19 cases in China? Or are they just absolutely fucking stupid? Or were they under orders to issue in the Great Reset? Time will tell and there is probably more than one version of a Great Reset.
Are we witnessing the end of the Federal Reserve System and the end of global fake money? ECB can’t survive without Federal Reserve System as both are probably owned by same group of former court Jews. Stay tuned, and hoard food and ammo because we are being flooded with MS-13, 18th Street Gang, and ISIS across our border for a reason. Is Alan Greenspan’s Road to Roota (root_a) underway and the Central Banking Nexus going to bring down everything if it can’t retain control? Blood on the streets is my prediction. Be prepared.
“Usury and democracy go hand in and and when combined with media are the major components of mankind’s oppression.”
They sure do. Get rid of usury and a lot of our corruption will be taken care of in the process.
The hidden history of the world has been the never ending struggle not between good and evil, righteousness and sinner, left and right, but instead it has taken place between producers and non-producers (i.e., the ruling class). They are masters at setting the productive class upon its self or upon their surrogates.
The ‘rent seeking elite’ have been a problem globally for thousands of years.
ICE-9, can you repeat that in a way that democrat voters (aka Millenials and the other welfare classes) can understand? I didn’t think so. I appreciate it personally, though!
Ice,
You should combine both these two posts, add in a link to explain Road to Roota and submit it as a stand alone thread. Crackerjack time line, reacap and prediction.
Flesh these out and I think you would have something that would be picked up and open a lot of eyes.
Good chit mun!
I’m 20,000 words into an essay that deals with the moral history of western man’s subjugation. I started with Zoroastrianism and I’m just now at the Black Death – i.e., one of the two true great resets in the historical record of western Europe (the other was the fall of the Western Roman Empire). Hope to publish in next several months. It is part three of my series – the other two essays are here if you haven’t read them.
Ice,
I’m sorry to say I have missed both of them, SHIT!
Sometimes my TIME on TBP is a crap shoot because I have everything else in abundance but TIME.
However, I respect your opinion and I will read them both and circle back ASAP. It may take me a couple of days.
I’m in early spring planting, orchard mulching, massive baby chick and duck raising mode. I have a mini family reunion on my farm coming soon for five days, a daunting Honey Do list, and like you I see the grains of the sands of TSHTF harsh realities pouring through the narrow gap of most American’s propagandized perception as an avalanche of harsh reality that will overwhelming bring:
“Blood on the streets is my prediction. Be prepared”.
I’m hard after survival and my God given role…and defiantly shedding their blood (many different veins) not mine or those…I Sheepdog.
Re-post from yesterday.
Here’s the series of events that will lead to that dictatorship:
1) Aug – Sep 2019: Liquidity freezes up (again) as derivative positions begin to fail with the TBTF international banks.
2) Sep 2019: Treasury (Mnunchin and Trump) begin REPO program that eventually through March 2020 injects $17.66 trillion into TBTF banks. This is more than all the money ever issued combined. Final tallies have just been released – tell me again that Trump was making America great again?
3) Oct 2019: Such a massive money infusion if public knowledge (it’s true volume was kept secret for 2 years) would have triggered real hyperinflation so demand had to be crushed in order to produce just normal bad inflation. Thus SARS-CoV-19 was released in Wuhan China under cover of World Military Games where USA NBC team posing as athletes came in 35th. The BSL Level 4 biolab a short distance from the Wuhan wet market was the perfect cover for a false flag unintentional release. Global government, UN, and media response coordination is effected through John Hopkins pandemic simulation Event 201.
5) Jan 2020: Media goes to work framing fake epidemic whereby normal flu deaths are rebranded as COVID deaths beginning in nursing homes but then spreading primarily to the unhealthy diabetic and obese and immuno-compromised population. Adding to fear frenzy is first state lockdowns in March 2020 – two weeks to flatted the curve and protect grandma. All media and government responses coordinated in advance through Event 201.
4) May 2020: Operation Warp Speed announced (Trump again) to convince public that “something” was being done about the “pandemic”. Trump’s expectation based upon complete lack of scientific knowledge was that a vaccine would be produced and the pandemic could be lifted once the risk of hyperinflation was removed as REPO loans were repaid.
5) Dec 2020: Deep State via FDA screws Trump and approves EUA for “vaccines” that are in reality bioweapons that kill the recipient via DNA production of spike proteins. If the hyperinflation is to be kept in check then only a complete demand destruction will suffice and this is why it is mainly within western countries where the vaccines are being distributed as western countries represent great majority of demand. The “Unique Window of Opportunity” is opened for WEF to unleash death and chaos upon the west so it can deliver its pre-constructed solution and therefore deliver order out of chaos. So it is basically down to killing billions to keep the global monetary system in place and retain power for those who control that monetary system.
6) Feb 2021: first vaccinations start in USA. People full of fear line up by the millions but not enough die immediately proving bioweapon a dud. Enough time elapses to where many people begin to figure out they were had and the jig is starting to be up.
7) 2nd half 2021: Not enough people immediately die from the vaccine / bioweapon and thus demand is not crushed which unleashes bad inflation which as 2022 ensues begins to morph into hyperinflation as REPOs not yet repaid.
8) Feb 2022: Demand must be crushed in another way so Russia baited into war with Ukraine where supply chain killing sanctions are unleashed before enough people have died so this only exacerbates the bad inflation as the lag for vaccine deaths has a long way to go to catch up with the hyperinflation. Objective is to now kill off much of 3rd world with starvation as most refused vaccine bioweapon.
9) 2nd half 2022: Great Reset is implemented and is cover for maintaining control of western money system via creation of totally fake money not influenced by supply or demand and that is transformed into a political weapon that can be activated down to the individual consumer level. This will be introduced with promotions and discounts to suck the mugs in to using it and all corporations will go along and force their employees to adopt it. Only way to avoid getting vaccines henceforth and stay employed by a 3rd party is not to have heath insurance as vaccine proof will be monitored through health insurance like it is in countries like UK and Australia that have national programs. As more people die prolonged vaccine deaths, private health insurance will disappear to be replaced by mandatory national program that mandates vaccines and ultimately our demise. If we aren’t out in large numbers rounding up those responsible and lynching them right then and there we deserve what we get.
Good God! You nailed it. The large protests did nothing. They had the numbers then to take the government and hang all of them. Now we are in the final push to empty the stores to set off a real panic among the hoards. Unfortunately, they will not take out the government, but would rather fight amongst themselves.
The western mainstream media hasn’t even reported that Putin turned the gas spigot off on the EU and is now only accepting payment via his Russian banks – and will convert the payment currencies (euro, etc…) into Rubles. Total silence. The news today is that Putin is a war criminal. No mention of the documented war crimes in Iraq, Afghanistan, Pakistan, Libya, Syria or Yemen. Julian Assange reported on those and look what happened to him. Complete blackout of the facts and the truth.
With the demise ( not the elimination, not yet anyways) of the United States dollar as a global reserve currency countries will start to dump dollars into the world market, particularly into America. That action will accelerate inflation expodentially. If the United States government tries to stop this development with presidential decrees the dollars status will suffer even further. In Canada the Canadian dollar is tied closely to the American economy. Canadians will suffer the same fate as the Americans. Can Canada and American survive these consequences? President Biden called for regime change in Russia. Perhaps President Putin has his own ideas of regime change for the North American countries.
Sounds like the ruble has more behind it than the dollar.
Yes it does. Funny how Hitler had is right when he expelled the jew bankers and free masons and based the money off labor and production. Germans had no inflation and a booming economy. That was too much for the jews who declared war on Germany in the New Your Times. Learn your history. The fucking jews are the enemy of civilization.
The Greatest Story Never Told. It’s very long – divide up viewing into 45 minute increments over a few weeks.
The Greatest Identity Theft In The History Of The World
The two are inseparable.
In this brief account, I have given a concise demonstration connecting all of the necessary dots which clarify the people of today calling themselves “Israelis”, through Josephus and the Bible, all the way back to Cain! In addition to this, today’s Genesis 4:1 is a corrupted verse, as Adam was not Cain’s father!
Exhibit #5: From the Aramaic Targum pseudo-Jonathan, on Genesis 4:1, it reads: “And Adam knew that his wife Eve had conceived from Sammael the Angel (of death) and she became pregnant and bore Cain. And he was like those on high and not like those below. And she said: ‘I have got a man from the angel of the LORD’.” An example of an Aramaic targum can be found at Neh. 8:8, due to the change of language from Paleo-Hebrew to Aramaic, during Judah’s 70 years of exile.
Exhibit #6: Matt. 23:32; Gen 15:16 & Matt 23:35:
Matt. 23:32:“Fill ye up the measure of your fathers.(center reference, see Gen. 15:16: “… for the iniquity of the Amorites is not yet full.”)
Matt. 23:35:“That upon you[i.e., Amorites and company of Canaanites, today called Israelis] may come all the righteous blood shed upon the earth, from the blood of righteous Abel unto the blood of Zacharias son of Barachias[John the Baptist’s father], whom ye slew between the temple and the altar.”
At this point in Christ’s discourse, He was addressing a cosmopolitan population in Judaea representing many mixed ethnic groups, including the descendants of Esau, as well as the descendants of Cain. In red letter Words, Christ makes it very clear that He was speaking directly to some of the descendants of Cain, who murdered Abel! If that wasn’t literally true, Christ made Himself a false witness, and was guilty speaking a lie! Who killed Abel other than Cain? Not only that, Abel had racially pure righteous blood, while Cain’s blood was contaminated! There was at that time a remnant of pure Israelites of the tribes of Judah and Benjamin, amounting to less than one thousandth of 1% of all of the original twelve tribes of Israel, in Judaea.
Exhibit #7:Eusebius’ Church History, 1:6 by Paul L. Maier, p. 37: “… So Herod [the Edomite-jew], with no Israelite ancestry and pained by his base origins, burned the genealogical records, thinking he would appear of noble birth if no one were able to trace his bloodline from public documents. A few, however, carefully kept private records of their own, either remembering the names or finding them in copies, and took pride in preserving the memory of their aristocratic birth….”
It is apparent that Herod the Great was unaware that Flavius Josephus (a Levite), a few years later would record the Edomite conversion to Judaism (from whom Herod sprang), at Antiquities, bk. 13; ch. 9; par. 1. It is now time for the blind eyes of true Israel to be opened!
https://emahiser.christogenea.org/greatest-identity-theft-history-world
Flea,
I have always liked the fact about you that you are bold and fearless in putting out your beliefs and research to back them up.
“Exhibit #5: From the Aramaic Targum pseudo-Jonathan, on Genesis 4:1, it reads: “And Adam knew that his wife Eve had conceived from Sammael the Angel (of death) and she became pregnant and bore Cain. And he was like those on high and not like those below. And she said: ‘I have got a man from the angel of the LORD’.” An example of an Aramaic targum can be found at Neh. 8:8, due to the change of language from Paleo-Hebrew to Aramaic, during Judah’s 70 years of exile”.
Now its late and I’m heading to saw a log…but one book I read that backs you up on the above is:
‘GODS and Thrones’, subtitled: ‘Nachash, Forgotten Prophecy, & The Return of the Elohim’ by Carl Gallups. It was published in 2017.
It was a good read…and goes into the garden of Eden in ways 99.9% of Preachers would never touch with a 10 foot pole…that some one else was holding.
Thanks brother. My time is growing short so I’m trying to walk a line between bold and abrasive but time is too short for me to suffer any more fools. I also appreciate your own willingness to step off the Company information rez and back it up with legitimate links that can hold water. It’s late so I’ll see about ordering that book.
Here is one good link to back up your link and mine. well indexed and easy to read but always backed by scripture.
It don’t mean nothin.
Contains both audio and print.
https://christogenea.org/overview/concise-explanation-creation-jewish-people
I hope Putsky succeeds in shoving his foot straight up the LBMA/Banksters ass. Americans need to become more like the population of India, hold your money in gold (REAL MONEY) and convert only what you have to bankster fiat. This is especially true with regards to CBDC. Digital currency will make this situation far worse , gold and siver cures a lot of ills.
From what I can tell this is really what Putin going into Ukraine is all about. If he’s successful he’ll destroy the petrodollar. Then inflation will get worse here until the population either capitulates and accepts the great reset and it’s subsequent electronic chains or until the population tires of the fraud that is our monetary (and political) system and chases the money changers out of the temple. Based on their recent reactions to ‘mandates’ I’m banking on the latter. I think the patience of the ‘the people’ is growing very thin.
Meanwhile Natostan is cranking up war jargon and FF ops.
https://thesaker.is/sitrep-operation-z-4/
No surprises there. Comical to see PropaWiki already made a page for it.