Checkmate grandmasters Putins golden trap

www.goldstockbull.com...

The following piece by Dmitry Kalinichenko for Investcafe.ru suggests that Putin is using manipulated gold and energy prices to combat Western powers. Putin’s response to the West resembles both chess and judo, when the strength used by the enemy is used against him, but with minimal costs to the strength and resources of the defender. This comes on the heels of Russia’s central bank Governor Elvira Nabiullina telling the lower house of parliament about recent significant Russian gold purchases of roughly 150 metric tons. She is an economist, head of the Central Bank of Russia and was Vladimir Putin’s economic adviser between May 2012 to June 2013.

I dont get the article. How is buying lots of gold anything but a reaction to going towards incertainity and instability?

a reply to: Merinda

150 tonnes of Gold would actually be a stabilising effect on a falling Ruble.


Precious Metals will always surpass paper & digital numbers.
That's where the true uncertainty & instability comes from.

a reply to: CharlieSpeirs

She failed to mention it was 150 tons of Terrys Choclate Gold though?

en.wikipedia.org...

a reply to: ecossiepossie

If that's true, I can definitely see Vladimir put-in weight on

My thought is that Putin is going to move his pawns not in a way to defeat the threat but to naturalize it's effects .He will gain confidence with each move and still be able to make his plan for the future .Unfortunately for the west they will not be included . There is a much bigger emerging markets with India/China that will tower over the Wests decreasing economic status . It wont happen over night in his growth pursuits unless the west collapses from the weight of the many chickens that will eventually come home to roost . I think a lot in the west see it that way and I am sure the Russian people have lot's of confidence in their leader which will help in the long run . America is wanting a savior but with the possibility of another Clinton or Bush in the cards for POTUS the people wouldn't seem to have much real hope .

a reply to: CharlieSpeirs
Yup
If he Puts In to many his belly will grow.

originally posted by: Merinda
I dont get the article. How is buying lots of gold anything but a reaction to going towards incertainity and instability?

The Renminabi ("People's currency" in Chinese) is the BRIICS (Brazil, Russia, India, Iran, China, South Africa) nations solution to the future collapse of the USD.

The Renminabi is gold backed currency!

This is why Russia's purchase of 300,000 lbs of gold would hurt the USD and global fiat currencies across the board.

The more gold the BRIICS nations have the more "Renminabi" they can produce; which is directly backed by gold. When the USD collapses (as all fiat currencies have always done in recorded history); it is those countries with Renminabi that will emerge with actual value.

Putin is selling gas in non-USD.

This means nations can choose to buy gas in USD or Ruble; this creates 2 suppliers (Russia and OPEC) when before nations only had 1 (OPEC). For this reason gas prices have come down in the USA. It is not a "good" thing; it means there is more supply being purchased in Ruble forcing OPEC to drop the price of their oil to keep it competitive.

Without the USD monopoly on global oil prices the USA cannot sustain it current level of dept/spending and will collapse, and fairly shortly at that. When it does, the BRIICS nations are already in place to "fill the void" with gold backed Renminabi. Every nation on Earth will be begging for gold in order to secure Renminibi then; which will only serve to increase the gold reserve value of Russia.

Putin is smart. He knows that the fiat Ruble will collapse when the USD does; because all are fiat based. So he is playing both sides knowing that in the end he has the end game in place to win. Use the Ruble to compete with the USD to force the USA to drop the value of the USD (lower gas prices) until it collapses under its own weight. Then at the same time, stock up on gold reserves and establish the Renminabi so that when the Ruble falls with the USD; they are primed to take over global economic control.

God Bless,

a reply to: Merinda

When they say American Hegemony, one of the controlling influences around the world is the American dollar. It is behind a large part of world trade. The system that creates the dollars in America is heavily saddled with (trillions) of debt dollars. That 'uncertainty' of the future for investors is "hedged" by buying up gold. Some countries are even beginning to ask for their gold stored in US vaults back.

The large recent purchase of tons of gold by the other super powers also shows how uncertain they are of the future of the dollar. If the same people that ran the crash in America in 2008 are still running things (which they are) then there is no guarantee they won't crash it again. If the dollar fails the world will need to adopt new currencies to replace the dollar with. A nations ability to lend credence to their new currency will be how much gold reserve they have on hand to back the new currency.

That why the recent purchases of hundreds of tons of gold and the demands to get gold back from the US.

a reply to: Merinda


I am sick and tired of Putin is playing chess and you just wait and see...........You know what Putin will be alright he is the elite. He is the ruling class in Russia and even with losing millions still has millions more to lose.



Now the common man in Russia on the other hand.......Revolutions happen when the cost of food rises so high people can not afford to eat anymore......Russia is at 40%.

a reply to: ElohimJD

Without the USD monopoly on global oil prices the USA cannot sustain it current level of dept/spending and will collapse, and fairly shortly at that. When it does, the BRIICS nations are already in place to "fill the void" with gold backed Renminabi.

Excellent post overall, this part here, especially.

Lets hope there is a civilized "void" to fill with new currency after the smoke of that imminent "collapse" occurs.

originally posted by: ElohimJDThe Renminabi is gold backed currency!

No, the Renminbi, or Chinese Yuan, is pegged with a bunch of other currencies, notably the USD, Sterling, Yen and the Euro. It is not pegged to gold.

Gold is merely a constant – something with international value – that covers the falling ruble provides some stability and collateral for Russia.

Since the summer of 2014, the ruble has lost significant value against the yuan – about 40% of value in fact. This means that China is profiting from the agreement to trade without the dollar in bilateral transactions between Russia and China.

To suggest this is part of some sneaky economic master plan to shaft the West is laughable. Russia is losing hand over fist. It’s wishful thinking, but the Yuan is not going to supplant the USD, Euro, Yen or Sterling as a traded currency and there is no evidence that the Chinese are seeking to make this happen.

Regards

I just love these threads,

You guys are my economic, and international politics teachers.

You dont really get this stuff any where else, because it doesnt exist as fact, but in your opinions a truth becomes apparent to me.

a reply to: SubTruth

That is the plan. We are cut throat.

originally posted by: CharlieSpeirs
a reply to: Merinda

150 tonnes of Gold would actually be a stabilising effect on a falling Ruble.


Precious Metals will always surpass paper & digital numbers.
That's where the true uncertainty & instability comes from.

What is that about 7 billion dollars? Can't say that will stabilize a country but it could secure your retirement if the ruble really tanked and you were ousted.

gold is artifically priced low and has been for a couple years russia is colapsing and the there gonna have to sell that gold at cheap price to keep there economy going then after the collapse happens and all that gold they will have to sell will go back up and make alot of people rich and oil will bounce back too i give it 18 months Russia will be in ruins the price of oil and gold will go up and make lots of money for the West and Saudi's and elites this is how i see it going.

I would put little stock in this article.

It's published by a financial site that's trying to sell gold. These types of sites have been claiming Russia and China have been buying gold for years, and that the price is going to go up.

This article is a bitt too manic over this, but if the trend continues for a few years trouble awaits.
Depending on whether you believe official reported physical gold holding stats or not, I present this:
www.gold.org...
Page 16 has the summary of national gold reserves.
United states of America holds 8,133.5 Tons
Russia is number 6 at 1,149.8 Tons.

That's a huge divide. Even if you were to combine the BRICS nations (sans Brazil, whose holdings are not listed) you'd have:
Brazil: ? Presumably less than 77.1 Tons
Russia: 1,149.8 Tons
India: 557.7 Tons
China: 1,054.1 Tons
South AFrica: 125.2 Tons
TOTAL (assuming 77 Tons for Brazil)= 2,963.8 Tons, or just over 1/3rd USA's total physical reserves...

This is not a ratio which makes America look like a King about to be checkmated anytime soon. The BRICS countries would frankly need to figure out a way to increase the downward pressure on the US while rapidly increasing their own reserves. In addition, they would have to break the US dollar dominated oil market, a move which is going to be awfully tough to make a reality as long as there are international sanction on Russia, an oil boom in the US, and an OPEC which is curently re-learning how dependent on US imports their honeypot really is.

I like Putin, I honestly do. I like Russia. Combined they speak to my rebellious side and make me want to jump out of bed and greet the day yelling 'Dobroe utro!" with both middle fingers proudly waving, but they cannot win an economic war against the USA at this time. The US' tendrils run too deeply throughout the same markets and same policy makers as Russia depends on for their own economic strength.

As of 2014 no nation uses a gold standard as the basis of its monetary system, although many hold substantial gold reserves.

Also there is not enough gold currently mined and owned to cover ALL of the nations of the world currencies to support a change back to a gold standard.

The more gold in play, the less it will be worth so mining more gold will devalue it.

chess player he is not.

Just one thing though.

British scientists have successfully come to the same conclusion, as was published in the Conclusion of the U.S. Geological survey a few years ago. Namely: Europe will not be able to survive without energy supply from Russia. Translated from English to any other language in the world it means: “The world will not be able to survive if oil and gas from Russia is subtracted from the global balance of energy supply”.

I tried to find this report, all variations of this report ultimately led to the same articles published on different websites, none that I could find properly reference the source.

Can that quote be verified?

Sounds like an interesting read.

a reply to: Dabrazzo

Russia is the second largest oil exporter in the world currently prior to this current hiccup, exporting 5 million barrels per day of crude and they were the largest natural gas exporter in the world, providing about 20% of the world's gas imports. The world would survive, so that statement was certainly overdramatic, but there would be some serious changes needed and some significant pain felt if Russia's supplies were cut off to the world.