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The United States declared economic war on Russia. It is hard to pinpoint the why of the matter but in this author’s opinion it always comes back to US dollar dominance. Russia has made no secret of its disdain for the global pricing mechanism of oil. The chart below shows what matters in the pricing of oil and it has zero to do with shale miracles or over supply.
It is the dollar and only the dollar that matters in the pricing of oil with an exception being an act of nature.-
-And finally in March of this year, Louis Woodhill began a column for Forbes with the following:
“How should the U.S. deal with Vladimir Putin’s invasion of the Ukraine? We should do to Russia what Ronald Reagan did to its predecessor, the old Soviet Union. We should drive them into bankruptcy by stabilizing the U.S. dollar.”
Full Story Here
Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.
Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!-
-Not so long ago, 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”.
Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin’s game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not.-
-In this brilliantly played by Putin economic combination, physical gold from the reserves of the West is rapidly flowing to Russia, China, Brazil, Kazakhstan and India (i.e. the BRICS countries). At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin’s Russia until the collapse of the entire Western petrodollar world. In chess the situation in which Putin has put the West, led by the US, is called “time trouble”.
Full Story Here
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.
originally posted by: InverseLookingGlass
a reply to: BornAgainAlien
You seem confused about who the aggressors are.
And Saddam was selling in Euros.
As The American Dream's Michael Snyder explains, the Chinese are on a real estate buying spree all over America. In fact, in some cases large chunks of land are actually being given to them. Yes, you read that correctly. China is on the way to becoming the dominant land owner in the entire country, and that is starting to alarm a lot of people. Do we really want a foreign superpower to physically own so much of our territory?
There are some that are playing down this threat by making a distinction between the Chinese government and Chinese corporations, but things work differently over in China than they do here. In China, the government is involved in everything. In fact, 43 percent of all corporate profits in China are produced by companies that the Chinese government controls.
In other cases, the Chinese are gaining control over vast tracts of U.S. territory by buying up our large corporations.
...when the Chinese purchased Smithfield Foods, they suddenly owned 460 large farms and became the top employer in dozens of communities all over the United States…
originally posted by: DJMSN
I always thought it was rather smart on the US's behalf to do away with paper money and debt backed by gold reserves. When the default comes it is no longer backed by any assets and simply resets like most bankruptcies and everyone will have to sue and get in line to do so.
They will eventually be paid but with new currency perhaps backed by treasury gold perhaps by oil, who knows perhaps by the same paper they get now, in the end it is in everyone's interest to allow it to happen and reset their own economies at the same time and from the US's perspective all based on a new dollar that is worth more since its backed by treasury gold, creditors would then be paid off with less paper than before.
Don't see WW3 as a result yet, Russia and China still need to harvest some alliances closer to the mainland to carry out a proper war, they need to form closer ties with South American countries and have troops on the ground there, either in joint bases or simply training agreements....look for it.
The dollar, no longer backed by anything, became a pure fiat currency and soon began to lose value against other currencies. OPEC continued to price its oil in USDs but then saw it was losing money and started to consider using other currencies, or even gold.
A new big idea was urgently required in order to restore the USD to its former position.
Move aside Machiavelli — enter Henry Kissinger!
The story goes that in 1973 Nixon dispatched him to Saudi for a series of secret high-level talks.
By the end of it, one year later, a deal was made:
“Amazingly, a new system was devised which allowed the U.S. to operate the printing presses for the world reserve currency with no restraints placed on it — not even a pretense of gold convertibility! …This gave the dollar a special place among world currencies and in essence backed the dollar with oil.” - Ron Paul.
Link
...if it were robust in any real terms, this would not be the case.
originally posted by: BornAgainAlien
a reply to: MrSpad
Russia is not selling oil for Gold.
Read it again, they convert the Dollars into Gold, and that`s the game being played.
You clearly haven`t gotten the grasp about it, maybe read the links too...?