So, will Putin play the ‘Gold Card’?

So, will Putin play the ‘Gold Card’?

Given these achievements, Putin is not a leader to be taken lightly and we should pay attention when he says it it his desire to end the ‘dictatorship of the dollar’, as he did just this week. Perhaps he will indeed play the gold card he has hidden up his sleeve and thus kill two birds with one stone: shore up the rouble and Russian economy on the one hand; dethrone the dollar on the other. A period of international monetary and associated economic chaos might ensue, but with Russia suffering already under unwelcome sanctions and thus with relatively less to lose, Putin might calculate that now is the time to make his move. He may have already achieved his place in the Russian history books but imagine how he will be regarded in world history books if he sets in motion that which culminates ultimately in the return to some form of global gold standard.

Source

If he does this we can except global economic fireworks.

I bet he uses this to pressure the West, but with the West not willing to listen as we have seen with the G20 and Putin not someone who`s waiting for ever, there`s a good change he might do it in the not so near future.

And then you will need more as popcorn.

a reply to: BornAgainAlien

I rather think that Putin probably feels with many in this world that the USA occasionally with its allies thinks it can do whatever it likes in the world and on occasions it gets the legal OK but it still operates purely to USA and corporation desire; whilst it never suffers any real consequences over its action and I bet he's fed up with this behaviour on the world stage.

This position of power has slowly been eroded and sooner or later, despite the propaganda that economies in the USA and UK are well on the rise - which the publics of both don't agree with, is going to come home to roost. Putin I rather think will play his cards purely to the advantage of Russia, which is in many people's view the wronged country with the EU pushing right up to its borders. I suspect the consequences when he does will be pretty dire for some.

a reply to: BornAgainAlien

It is not that easy.

Trade blockade to Russia does not really work at all.

Russia was an importer of EU/US goods. Their main export to EU/US interests was oil & gas. Blockade on imports gives loss of income to EU/US businesses, rather than provide any loss of income at the Russian end. On exports, Russians have already sold it to China. So, Russians can watch by as long as we want but any economic pressures they really do not have. On the opposite, most of the EU states around Baltic Sea are begging mercy and money from EU bureaucrats to cover for losses...

What comes to currencies, obviously when there is significantly less exports to Russia from EU/US, there is equally less demand for Russian Rubles, and it will loose value. BUT, this loss of value has meaning only ON EXTERNAL TRADE. And due to trade blockade there ain't much of that at all. So again for Russias, even this currency game has no meaning at all.

There is no incentive what so ever for Russia to do anything. They really do not need to play Gold Card - nor any other card. Life goes on in Russia. Instead of selling oil and gas to Europe, they sell it to China. Deal done.


That's the dilemma. US plays the show, Europe pays for it, and Russia does not even watch it, but goes to visit Peking instead.

Yes, Putin is upset with 'the west' Russia has always been invaded from the west, the Swedes, Poles, Teutonic knights, the French, and twice in thirty years, the Germans, now he has the EU to contend with.

a reply to: deckdel

I also don`t think the Kremlin is wanting to do this that quickly, they are more likely to wait for the mounting pressure which is growing against the sanctions in Europe to erupt.

On the other hand, we have seen with Crimea and the first humanitarian convoy Putin can be unpredictable and doens`t wait forever.

The goal of the West is to hit Russia economical hard and by so to undermine Putin his position, so he could feel at a certain point his position becoming too threatened and go ahead anyways with it. It probably will all depend on how hard the Russian economy will get hit by the West, they can up the game even more if they want to, but the willingness to do so doesn`t seem to be that great with the not hardliners.

But knowing the hardliners they could come up with something even more dramatic as MH17 to push on.

a reply to: BornAgainAlien

No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.

In 1971, US President Richard Nixon closed the 'gold window', ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods.

In 2014, Russian President Vladimir Putin has reopened the 'gold window', without asking Washington's permission.

Grandmaster Putin's Golden Trap

a reply to: maghun

Very good read and it gives the urgency of the West to cooperate with China and Russia as a way out, and simply acknowledge the sole Super Power status of the West is gone.

But the hardliners probably aren`t willing to give up power, and so the inevitable will happen in the end, hence the desperation regarding the wars against Assad and later Iran.

You most likely will see the West going to do desperate things in the ME down the road.

Anyone wondering about my "desperate things in the ME" from the last post.

Assad is now being weakened and needs to be removed in order to get Qatar gas flowing towards the EU (and sideline Russia), so the West will go after him in a few years time. IS is just smoke and mirrors to weaken Assad even further.

Iran is the other big problem and will follow after that, and a scenario like this is a good possibility then...

Towards a World War III Scenario: America’s “Contingency Plan” to Attack Iran with Nuclear Weapons

Source

a reply to: BornAgainAlien

to Attack Iran with Nuclear Weapons

Hope Russia is capable to "shoot down" any such attempt.

a reply to: maghun

Yeah...finally one can hope for a return to a gold standard. The death of the petrodollar cant come soon enough.

originally posted by: maghun
a reply to: BornAgainAlien

to Attack Iran with Nuclear Weapons

Hope Russia is capable to "shoot down" any such attempt.

Not really. tomohawk missiles with the nuke warheads are still able to be brought out of mothball. It would be over before the russians could do anything.

would i be foolishly naive "pisceatically dreaming" that a part of Schindler must live-on in someone else?

the moral of that story and seeing how putin ain't rich enough... saddens me.

sadly, flesh holds more value?

wheres a good pedistalite when we need one?

originally posted by: deckdel
That's the dilemma. US plays the show, Europe pays for it, and Russia does not even watch it, but goes to visit Peking instead.

Well put ... this is my take on it as well. And I like to emphasize your words "EUROPE PAYS FOR IT". I do not believe, for one instance, that the US doesn't understand that the loser in this game is Central Europe. Therefore, the only conclusion can be ... that the US is deliberately targeting Central Europe.

We have been fortunate enough, to have a mild winter ... imagine if this was a really cold winter, in EU.

originally posted by: BornAgainAlien
So, will Putin play the ‘Gold Card’?

Given these achievements, Putin is not a leader to be taken lightly and we should pay attention when he says it it his desire to end the ‘dictatorship of the dollar’, as he did just this week. Perhaps he will indeed play the gold card he has hidden up his sleeve and thus kill two birds with one stone: shore up the rouble and Russian economy on the one hand; dethrone the dollar on the other. A period of international monetary and associated economic chaos might ensue, but with Russia suffering already under unwelcome sanctions and thus with relatively less to lose, Putin might calculate that now is the time to make his move. He may have already achieved his place in the Russian history books but imagine how he will be regarded in world history books if he sets in motion that which culminates ultimately in the return to some form of global gold standard.

Source

If he does this we can except global economic fireworks.

Yes, it's known as a self-embargo and is a childish move. Like Iranians threatening to blow up ships running through the Strait of Hormuz (excuse me, but where do YOUR oil exports sail through?)

Russia won't be able to sell as much of its oil products, because of the high transaction costs and slow delivery of gold.
Russian state finances get worse, Putin's political power declines.

The people with money have dollars and euros.

Let's remember, the size of the gold trade, and the petroleum trade is very small compared to the size of the money trade, i.e. the BOND market. And few people with lots of money want to invest in Russia or Rubles with Putin running things.

It isn't a petrodollar. It's a bond-market dollar.

originally posted by: bjarneorn

originally posted by: deckdel
That's the dilemma. US plays the show, Europe pays for it, and Russia does not even watch it, but goes to visit Peking instead.

Well put ... this is my take on it as well. And I like to emphasize your words "EUROPE PAYS FOR IT". I do not believe, for one instance, that the US doesn't understand that the loser in this game is Central Europe.

Germans are being idiots, shutting down their reactors.

Therefore, the only conclusion can be ... that the US is deliberately targeting Central Europe.

hardly. they're targeting Putin, because Putin is targeting them.

I do have to say this that Putin has played this game 20 steps ahead of everyone The man is brilliant and deserves the Nobel Peace prize that Obama falsely received

Not only did he unite several nations of the Middle East but also Asia under the new Euro-Asian Union. Which would also explain why the Rubel has been set to free sailing, the gold card will be a big Ace in the hole type of play and would blow everyone's minds

But the question is - What will America do if the USD suddenly collapses Just my idea though! Would this not cause a long awaited revolution within the United States