of the best articles I have read in a while.
(Granted we've been a lil busy lately
and its long
but its worth a read.)
Currency Wars Versus Gold Standards
"Russia and the Saudis are driving up oil and diesel prices. But these moves are likely to undermine the rouble more than they undermine the dollar, euro, and other major currencies. Therefore, higher energy prices will rebound on the Russians this winter: if they shiver in Germany, they will freeze in Russia. If the dollar is king of the fiats, the rouble is just a lowly serf.
(Battle of Stalingrad yo, they simply do not care.)
There is little doubt that Putin and his advisers are aware of this problem. Plan A was to introduce a new gold-backed BRICS currency which might be expected to weaken the dollar and euro relative to the rouble. Plan B was more drastic: to back the rouble itself with gold. This is the financial equivalent of dropping a hydrogen bomb on the dollar and the global fiat currency system upon which it is based.
(I disagree, plan B was plan A all along)
It is, as a matter of fact, very easy for Russia to reintroduce a gold standard for the rouble, but the consequences for the global fiat currency system are nothing short of lethal.
(It's over, (fiat currency), actually its been over for a while
just nobody is admitting it yet.
Financial Crisis = Low interest rates
Covid = Inflation
Put both of them together?
And we are headed straight to the new economic system
spoke of in Rev 13.)
"The weakness of the rouble is perhaps the only real pressure point that America and NATO can apply. The war in Ukraine is turning out to be yet another NATO debacle, which only appears not to be the failure it is due to the western alliance’s control of its media-reporting. In a world driven by propaganda, we cannot know the truth. But any military commander who thinks, as did Napoleon and Hitler, that a land-borne army can defeat the Russians in Eastern Europe is deluding himself. While grinding down the Ukrainian army, the Russians are digging in for the long haul, expecting growing dissent in the NATO membership to undermine its unity. It is a plan which appears to be working.
(Somebody been tellin ya you are being lied to and that the "grinding down" (war of attrition) was the game plan here all along. If you dont know the history behind the battle of Stalingrad? Dont waste your time trying to explain to me how wrong I am, educate yourself and get up to speed, there's more to life than tic toc videos people.)
"While the EU’s gas reserves are relatively full at 90% of capacity, it is not nearly enough to see the EU through the winter. From December onwards, there will be a scramble for more supplies. And the end of the agreement on Black Sea grain exports will put further pressure on food prices as well."
(Food and energy are going to go back up people, theres no way around it. They are going to break our backs, they already are, breaking our backs...)
"Therefore, the western alliance will face further inflationary pressures, likely to give higher interest rates and bond yields a new impetus. Already, there is a credit crisis developing in key western economies, with banks trying to reduce their risk exposure to financial and non-financial markets in the face of a recession. And as the credit crunch intensifies, the likelihood of a new round of bank failures increases."
(Where exactly do you think this is leading?
Some of us have the playbook and believe in it.)
"The problem for Russia is that in pursuing energy policies with the intention of undermining the dollar and euro, the consequences for the rouble are likely to be far worse."
(Stalingrad.
It's kinda my trump card.
The Russians dont care.
They just think, and always have, along the lines of;
"Fuck you, we're tougher than you are
So we'll just outlast you."
"we're tougher than you are
So we'll just outlast you"
All ears.
Last time I did a google search for:
"Pride night Dodger stadium"
several pictures like that showed up.
This time?
Not one...not one...let that sink in a minute.)
"Withholding energy from western markets will undoubtedly destabilise their currencies."
(Kinda the point here people.
"But the blowback on the rouble will be even worse. "
(I keep telling ya, Stalingrad...they dont care yo.)
"In June 1992 a barrel of oil was 2.03 grammes (of gold), today it is 1.41 grammes, a fall of 30%. Bearing in mind that gold is real money, and currencies are highly unstable credit, Russia is getting 30% less for her oil today than she did in 1992.
(I said it a while back and I'll say it again, he got tired of the US deciding what his countries natural resources are worth and he decided to do something about it. If that was the US in that situation listed above? What do you think we would have done?)
"Again, in common with the Saudis, the Russians are aware that American monetary policy has had the consequence of undermining the true value of their oil..."
(Etc...)
"Therefore, a successful gold standard must allow for the management and containment of banking crises, the inevitable consequence of periodic over-expansions of credit."
(Low interest rates since the financial crisis = "over-expansions of credit". All that wondering why people kept getting junk mail after junk mail about how much credit they could have if they opened up a new account/card with bank blah blah blah when they really didnt have all that much income to start with? It was to preserve a system they already knew was dying. And what is going to be the outcome of all that?
"banking crises"
"the inevitable consequence of periodic over-expansions of credit"
Can you not see?
Can you not tell?
Do you not know?)
"Chalk and cheese, oil and water, diamonds and dust: whatever metaphor you care to choose, it must be clear that a mixture of gold standards and fiat currencies will not last long. Priced in fiat currencies, gold’s value might be expected to rise significantly, as central banks in what is now termed The Global South (the Asian hegemons and those aligned with them) move towards replacing fiat currencies in their reserves with gold."
According to Ambrose Evens-Pritchard (Wednesday’s Daily Telegraph), “The Global South holds three-quarters of the world’s $12 trillion of foreign exchange reserves (59 per cent held in dollars)”. And in addition to a $2-plus budget deficit, in the next year the US Government has to refinance about 30% of its existing debt.
(At 5.5%? or there abouts? Not a pretty picture. We will default, not if but when and that day is inching closer all the time.)
"Therefore, the impact of a move to gold on funding the western alliance’s deficits will be substantial, because not only will The Global South stop buying their bonds, but they will seek to liquidate their existing holdings. In the absence of severe spending cuts and increased taxes, increasing monetisation of government debt will become inevitable. Kiss goodbye to lower inflation, lower interest rates, and lower bond yields: embrace crashing bond prices and collapsing asset values. What over-leveraged bank can survive the squeeze on their balance sheets? Which of the western alliance’s central banks, already deeply into negative equity will be able to monetise their government’s debt with further QE against a background of soaring bond yields?"
(Translation:
Were gonna need people to buy more of our bonds/treasuries etc right when they are gonna quit buying them. Not only are they gonna quit buying them? They are gonna get rid of what they are already in possession of and buy gold and it's already started happening. Youre gonna wake up ione day and your $ gonna be worth .03 cents. You gonna praise your God then?
Job 2:10
But he said unto her, Thou speakest as one of the foolish women speaketh. What? shall we receive good at the hand of God, and shall we not receive evil? In all this did not Job sin with his lips.)
"Truly, if Russia does introduce a gold standard for the rouble, it will be the financial and economic equivalent of a nuclear attack on the entire fiat currency system. There can be little doubt that these consequences for the global financial system are what have made Russia hesitate so far. China is sure to have arrived at a similar conclusion, one reason why she was too cautious to support Russia’s proposal for a gold backed trade settlement medium. But Russia is reaching a point where she has no other way to stabilise her currency."
(Translation:
"If were going to go down?
So are all yall.")
"Russia and NATO (by which we really mean America) have got themselves into positions from which they cannot back down."
(Yup...)
"It will be a tragic end to the dollar-based fiat currency regime."
(It's already here
you just dont know it yet.)
There is only one way out folks:
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