Zero Hedge: Less than two weeks ago, I wrote an article proclaiming that Russia would back the ruble with gold as a way to fight back against Western economic sanctions. I also made similar predictions about the new digital Chinese currency last summer when I first started Fringe Finance.
To me, since I began piecing together my understanding of macroeconomics and the global economy about a decade ago, it had become painfully obvious that the fiat system the U.S. plays by, which hinges on the dollar being the global reserve currency, had its days numbered.
The catalyst that is helping hurl us toward our monetary rude awakening faster than ever has been the war in Ukraine. Actually, it hasn’t been the war so much as it has been the West’s reaction to the war. As only blindly arrogant believers in the Keynesian dog-and-pony show could do, we rushed to cut Russia off the SWIFT system, limited investing in Russia companies and sanctioned the country’s oligarchs.
To which Russia basically replied, “OK. We still have the oil.”
And that has been the attitude the Kremlin has adopted, for the most part. They are falling back on their country’s productive capacity when it comes to oil, continuing to do business with the Chinese, and are adding to their gold reserves. After small shocks lower in Russian markets and in the ruble, things have stabilized relatively quickly – except now, Russia has used the opportunity to make clear that they do not want to be participants in the global fiat system any longer.
And it looks like China (and likely India) feel similarly situated. Read More …
Opinion: Putin and the Russian oligarchs must be stunned by their good fortune. The shutting down of US oil production has placed Mother Russia in the driver’s seat, pun intended.
Putin: Listen Xi, we may not have Joe Biden for long, so if ever there was a chance to kill the dollar as world reserve currency, it is now. Bringing India into the fold should be a piece of cake, since Prime Minister Modi has already said that it would be foolish to turn down ‘cheap Russian oil’. We both know how much Iran hates the US, so now is our chance to make the yuan a second world reserve currency.
Xi: The rest of the BRICS nations (Brazil/South Africa) will follow, and since most Americans are asleep on this, the time is right.
From the Article: Just this weekend, the Kremlin said that sanctions against Russia would “accelerate the erosion of confidence in the dollar and Euro”.
Russia, China and the rest of the world – having seen billions in FX reserves essentially seized without due process globally – now understand they must get off the same monetary system as the rest of the world. Russia and China, in my opinion, will be leading the charge, once again, to a new era of sound money that I believe is going to bring the U.S.’s Keynesian experiment to its knees.
Psalm 2:1 asks: “Why do the nations rage, And the people plot a vain thing?“. Bible prophecy calls for one method of commerce in the tribulation period that is activated by a mark on the right hand or forehead (Revelation 13:16). The technology is ready.