STAFF NEWS & ANALYSIS
Dollar Disaster Looms? China and Russian Currencies Break Away
By Daily Bell Staff - August 20, 2016

Russia leaves the Dollar based monetary system and adopts a system of Sovereign Currency. The implications are phenomenal! “In 1990 the first priority of Washington and the IMF was to pressure Yeltsin and the Duma to “privatize” the State Bank of Russia, under a Constitutional amendment that mandated the new Central Bank of Russia, like the Federal Reserve or European Central Bank, be a purely monetarist entity whose only mandate is to control inflation and stabilize the Ruble. In effect, money creation in Russia was removed from state sovereignty and tied to the US dollar.”

2016: “The Stolypin club report advises to increase the investment, pumping up the economy with money from the state budget and by the issue of the Bank of Russia”. Putin decided to follow the Stolypin club advice as the new monetary policy of the country. -Before It’s News

Money is changing fast and the US dollar is going to crash.

Here’s an excerpt from yet another recently published article (translated from the Russian) describing how the ruble may now evolve (here).

We must nationalize the ruble. What does it mean? It means that we must separate the internal markets from the external ones.

… Thus, the first step for Russia is secession from the IMF and others similar institutions designed to keep the entire world in bondage. The dollar noose must be cut.

Now the amount of printed rubles will not be determined by how many dollars we have but by the actual needs of our economy.

… We have absolutely no need in the central bank in its current form, but we do need a financial regular. Under any regime, it was the Treasury that performed this function. Let it remain the same now regardless of the official name. It may continue to be called the Central Bank. If the essence is changed, there is no need in changing plaques.

You can also see an article (here) that goes into this issue more deeply and claims that Putin has in mind backing a portion of the ruble with gold as well. (We should note there are claims the  ruble is backed by gold already.)

The dramatic – historical – Russian currency changes (if these articles are accurate) seem a little difficult to discern in full at this moment, but obviously things are changing fast. And they are changing for China’s “money” as well. In fact, some have speculated China and Russia could launch a joint, gold-backed currency (here, see bottom of article).

At the beginning of October, the yuan joins the IMF’s SDR  basket (here). This means that major international institutions can issue bonds payable in yuan (actually RMB, the Chinese external currency).

And that is just what has happened already. The World Bank is issuing a large yuan/RMB tranche and this will be the first of many (here).

Investors who want to place funds in RMB rather than dollars will use the new yuan/RMB-based instruments. The US will continue to print dollars but those dollars may not find a home abroad so easily. Instead they may circulate back into the US economy creating significant price inflation.

The US was able to do so much damage domestically and abroad because of its virtually unlimited spending power. It’s been able to prosecute endless, horrible wars and imprison up to five percent of its adult population at any one time.

Now things are changing. Between the Russian announcement and yuan/RMB convertibility, the US will gradually have more trouble printing money at will. Perhaps the corrupt military-industrial complex will be impelled to shrink and large-scale social programs like the wretched Obamacare will have more difficulty with funding as well.

As a libertarian publication, we should rejoice over the upcoming starvation of the US fedgov.

But we will not. We are well aware that the same banking influences that created the monstrous, modern state is ruining US and the West generally in order to build up a more febrile internationalism.

The BRICs, invented by Goldman Sachs are part of it. So is this reconfiguration of reserve currencies.

It seems natural, of course, as “directed history”always does. But it is not natural in the slightest. From what we can tell, it is pre-planned.

Remember both the IMF and the World Bank are controlled by the US. And yet it is these two organizations that are facilitating the rise of the yuan/RMB.

Also, please pay attention to how Russia will issue rubles into the economic system (from the same translated article we quoted previously):

How can we calculate [how many rubles Russia needs]? In exactly the same way as the United States calculates the amount of dollars needed for its economy. Just as the European Union does the same.

The best justification would be that from now on Russia issues rubles based on the value (in rubles) of all natural resources explored on its territory. It is quite amusing that subsequent steps are no rocket science; they are dictated by common sense itself. Since we are breaking down the disadvantageous system,

Putin may be taking a big step, but by circumventing his central bank (initially imposed by the West) he can be seen as moving toward more state control of Russian currency.

And for years, we have debated heatedly with people like Ellen Brown (here) who believe that federal governments can do a much better job of printing money than quasi-independent central banks.

Good Lord! What’s wrong with a little monetary freedom?

All Putin has to do if he wants a healthy currency is declare that the new ruble will be backed by gold and that its issuance will be a private or regional matter.

Let a thousand gold mines bloom. Let the circulation of gold and its related paper notes travel up or down depending on quantity and demand – not the determinations of yet another shadowy, elite clique.

This is the way the US ran before the Civil War and created one of the world’s most prosperous and freest cultures. Those in the US live yet on the dregs of that “golden” period.

But this is not well understood. As time goes on the often-illiterate alternative media may join in hosannas for Putin’s upcoming currency shift. But, again, just because “Russia” will now control its currency instead of a central bank reporting to the IMF, doesn’t necessarily create a better system.

Of course, the argument will be made this sort of system is what Hitler installed in Nazi Germany in order to create the German “miracle” of the 1930s (which we are supposedly not able to talk about). But that system might have destroyed itself over time. Surely it would have.

To begin with, such systems may work very well. But since the “money” is being created by human deciders rather than the competitive market, distortions are inevitable. Price-fixing, which is what it is, never works.

And while we are making the point that this newfound ruble freedom may not be so profound as advertised, let us note that the advent of a currency war is being accompanied by military tension as well.

Conclusion: Whether such tensions are legitimate or dramatized is difficult to say. But given elite banking control of so much around the world, we would not be surprised if we are simply being exposed to a gigantic performance of sorts directed from the top down.Ironically, despite apparent “setbacks,” London’s City surely leads the way.

 

 

 

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  • dave jr

    Now lets see if the MSM minions, on orders, begin to boost the Donald in the polls, because the ptb would prefer an experienced Comptroller in Chief, hired to preside over a fedgov receivership (e.g. Russia late eighties). If otherwise; Hillary the neocon progressive, cracked puppet skull and all, would be preferred if more ‘intervention’ were needed. The race will be a close one, down to the wire, either way.

    “Perhaps the corrupt military-industrial complex will be impelled to shrink…” – DB

    I doubt it. Even though the Donald has remarked that NATO is obsolete, he also says that the Nations endowed with US military bases need to pay their protectionary “fair share”. To whom? And in a worse case scenario, we can’t let the high tech military hardware fall into terr’st hands after all.

    I haven’t been proven wrong in any of my controversial prognostications here at the DB over the years, so I believe I am due some credit. I said ‘lift off’ of US interest rates won’t happen until they are ready to crash US fedgov / dollar. Since then we’ve had a measly 25 bsp increase in range and no movement in the federal funds rate. I said, don’t look for a one world currency, rather, a means of control over exchange rates. And we have an increasing SDR (coming China inclusion) and basket of currencies. I said don’t waste time looking out for an emergent world government. World governance is here, it just needs the specter of legitimate funding. And much more as the dominoes are being meticulously set into place.

    All that is needed is for Congress to sign the Paris Climate Change Treaty and fate will be sealed. The world will not be able to meet its’ CO2 reduction commitments as is the design and will be on the hook for 100 billion dollars annually, right out of the box payable to the internationalist technocracy. The penalty will increase each year as everyone is supposed to reduce their ‘carbon foot print’ by 85% before the year 2030. The carbon credits / deficits will be used to help manipulate international exchange rates to fit the whims of technocratic ‘leaders’.

    Even the sciences have been corrupted. The likes of Al Gore should have been kicked to the curb long ago. He is a thick skulled trained neanderthal in a suit. He is an automaton and there are many more like him being ‘skooled’. They can’t answer any intelligent questions without droning on about ‘settled facts’. Now he / they want to prosecute anyone who questions their ‘scientific authority’.

    The enemy is not at the gate folks, they are all around, maybe even in your household? But it is a psychological war, so lets keep it non violent. Blind them with truth and be unwavering in our conviction toward reality. For it is in this real world that they are powerless if we so choose it to be so.

    • Webforager

      I agree with your comment in general and your views on Trump. I think he’s slated to win the US presidency since it appears his campaign rhetoric aligns with the larger international trend with the U.S. dollar losing it’s status as the premier reserve currency. I also tend to see him as the poster child for a newly refreshed GOP.
      As for carbon taxing and credits, I’m tending towards keeping an eye out for the unit of account these are to be paid, and to whom, as taxation is used to drive demand for that unit. It seems to me climate change is being used as the justification to add to the structure for a global and stateless monetary hegemon.

      My 2 cents FWIW and, as always, we’ll have to wait and see.

    • Klugeman

      If voting mattered, you would not be allowed to vote. When viewed from that perspective, it gives a whole new meaning to the election proceedings.

      It’s purpose? The process has been designed to deliberately discredit both parties and the nation state itself, to create deep friction within the country as offers limited hang-out to the world with respect to policy. The US is being rapidly discredited for it’s policies, both the left and right are now untenable
      and have been designed as such.

      Now, the global hegemony that has existed since the second world war and more to the point, the US dollar as a viable reserve currency may be questioned.

      The US may well find itself positioned and labeled as “unfit to lead”. We may near a major point of inflection, in particular with global finance.

      The US owns the reserve currency but for how much longer will the world follow the Keynesian polices of Mr. Krugman, The Times, The Post and the FED?

      Until the next major financial accident and then we likely will see the US cede it’s current leadership role to a non-sovereign entity.

  • Aburns

    The current fiat monetary system has already transferred most of the worlds wealth to the top 1%. The world has been re-educated into thinking gold is merely a commodity after 45 year post Nixon.

    Where is all the gold? In unaudited Fort Knox? “Central Banks stand ready to lease gold in ever increasing quantities should the price begin to rise” Mr. Greenspan told us. The central banking system as we know it ( the entire worlds monetary system) has been set up to fail.
    No one really knows who owns all the worlds gold and just how may claims may lay to it’s ownership.

    Gold will almost surely be repriced and formally reintroduced into the monetary system under the guise of the greater good as the greatest fiat monetary experiment ever conducted comes to an end.

    • dave jr

      This is more than likely correct if the monetary magi fail, which means that everyday individuals took back their lives. Unfortunately, I don’t yet see this happening. I see the technocratic machinations moving forward as everyone seems to be stupefied and mesmerized with their gadgets as if they were some sort of staircase to social prominence.
      In dire straights, if one needs food, fuel, shelter, transportation and communication; and these can only be had by forwarding coupons, then one will work for and accept coupons. Gold need not apply for a position in this technocracy.
      See the facts first, decide if it is workable or not. And then be comforted that if all else fails, gold is still there, no matter who owns it, as the tried and true historical means of exchange.
      BTW, so long as the technocrats at large lie through their teeth and act as corrupt and spoiled kids, I personally don’t see their regime as workable.

      • Samarami

        I agree with your comment, Dave Jr — especially “…which means that everyday individuals (take) back their lives…”

        My lament is that none of us reading or writing today on DB can fully envision absolute freedom. Everywhere. Freedom among those who survive world economic collapse. That’s partly because none of us can fully envision absolute collapse — the inevitable finale not only of economics as we know it, but also that segment of technocracy that depends upon current economics — which will have to founder with it.

        Fear of the unknown.

        I believe it may not be nearly as catastrophic as one might fear. For survivors. I look at myself as a survivor: 81, planning to live well past 110 — perhaps past 120 — realistically. I have to believe that my 26th grandchild — a little girl, Naomi Mae, born last Thursday — will grow up to experience liberty alongside me. That you and I and those remaining steadfast in DB principles might play a strong roll in showing Naomi, her 9 brothers and sisters, and the millions of little ones, the way to liberty. https://www.youtube.com/watch?v=muHg86Mys7I

        Sam

        • Congrats.

          • Samarami

            Many Thanks! Sam

        • mary

          wonderful, Sam. I’m with you. 😉

  • Samarami

    “…To begin with, such systems may work
    very well. But since the “money”
    is being created by human deciders rather
    than the competitive market, distortions are
    inevitable. Price-fixing, which is what it is, never
    works.

    “And while we are making the point that this
    newfound ruble freedom may not be so profound
    as advertised, let us note that the advent of a
    currency war is being accompanied by military
    tension as well…”

    Seemingly separate points in reality no doubt a single argument: fiat “money” often results in war (or is the catalyst thereof). Or (and), war stems ultimately from the enforced media of exchange — “money”. All wars require huge portions of the production of the serfs making up what we like to call “nations” (psychopaths, since nations are but brainless abstractions) conducting them. Wars are necessary as incentives for serfs to increase production. And on, and on “history” goes.

    I believe each and every ancient emperor — our true “forefathers” — understood the necessity of garnering all exchange media into one “basket” (“economists” still enjoy using that term today) — controlled by central political authority.

    As I’ve so often observed, it’s difficult for any of us reading or writing here to even envision freedom. That would particularly and specifically include free media of exchange — flexible, interchangeable, non-nationalistic (non-“fiat”, or not enforceable). Most of us have read about various items in the ancient past that have been used as “money”: horseshoes, horseshoe nails, shells, of course scarce (and thus “precious”) gems and metals. Out in the Island of Yap they even have used (and still do to some degree) submerged, inaccessible discs of limestone.

    But inevitably the hoi polloi desire central political authority once again (a king) — with the image of Caesar emblazoned on specie. Let’s hope this coming bread-and-circus spectacle hastens the end of that hopeless spiral. Sam

    • Nick Jackson

      Sam,
      I agree with your comments.
      Central banking and the monopoly on the issue of currency is a scourge on mankind and leads to wars, death, and destruction.
      You cannot have a true. free market in goods and services unless the medium of exchange, money, is also a free market

    • Brindle Dane

      Well said Sam!
      Blessings
      M

  • One does well to remember and never forget that the global/universal system and its attendant and dependent interdependent systems, the entangled quantum mess, are not run by machines and institutions, no matter how many times that particular peculiar red herring is servered up for swallowing, it is the wrecked toy plaything of an intellectually challenged servant with a mastery of nothing real and valuable.

    New fangled entangled valuable toys are needed, and that requires them to be realised and virtually produced.

    By whom though is that which entertains and can terrify all and sundry?

    Or do you see things differently and identify clearly another practical meme with other viable virtual means to present the bigger picture and its future ways forward ?

  • rahrog

    Russia & China have been slowly moving away from the USD for quite some time now. If either of those countries (or another entity) were to announce a gold backed monetary unit The Ruling Class of The West would immediately start a world war. Russia is trying to create some space for it’s economy/society before the dollar blows up.

    • william beeby

      You are right as can be proved by history as the article points out. Without the USD as the reserve currency for world commodities trading the US can only sink just as Britain did when the pound sterling was replaced by the USD . So the ruling elite in the USA have two choices , world war 111 ( possible nuclear war to end the planet ) or knuckle down and put it`s people back to work to compete and trade in a fair way with the rest of the world.

      • apberusdisvet

        The psychopaths see only one choice; God help us all.

  • georgesilver

    When I retired (early with a good final salary pension) I decided to day-trade. I soon discovered that the markets were rigged. I decided then to put all of my savings into Gold. This had a number of benefits. I could stop worrying about investments and it was a hedge against anything happening to my pension. Over the years I have found my decision has paid off by being able to sleep at night. Friends have told me they have done very well in the markets but they never look at the devaluation of fiat currency when assessing their ‘profits’. They also never realise that their investment portfolio could be wiped out overnight. I realise, of course, that the Gold market is also rigged but the suppression is only trying to keep the price down and this suppression is failing day by day. So what is my point? The point is that by holding Gold I don’t care about the shenanigans in the currency markets.

    • Some good points.

    • patrickhenri

      Your investment is only as good as your power to protect it. Unfortunately, if they want your gold, they will take it.

      • Sven

        I could make that case for anything in your possession. In the gold/silver world, your statement is long in the tooth. Old and rotten. Fear based at its finest.

  • william beeby

    It strikes me that not until the crash of 2007/08 did any of us really give a thought to the function of central banks and elite financial rulers like the Rothschild global entity. When Hank Poulson put a gun to the head of congress and demanded USD 700,000 it revealed to the rest of the world that the Emperor had no clothes and the USD , backed by nothing , was just another fiat currency . Maybe if Poulson had bailed out Lehmans in some way and then kept quiet about the other banks things could have worked out differently and the system could have trundled on. I think the whole thing was manufactured just like the 1929 crash and sure enough for the 1% it has made them richer than ever to the cost of EVERYONE else to a larger or small extent.

  • EDD

    I’m not so sure the ‘Donald’s’ phenomena is a contrivance of the elite. Consider; some of the leaders of the Republican party would rather vote for the opposition. Imo, they fear his agenda will destroy their hold on their ‘ill gotten gains’ of the political situation as it exists.

    His entrance into the political arena has surprised many people, including the msm which are profoundly aghast at his success. It is also possible that he is surprised at the responses also. The ‘political correctness’ of entrenched systems does not seem to have any effects on him. Could this be the demise of the prophetic scenes described in Orwell’s ‘1984’? After all, Orwell had many insights into how he thought the world’s culture might evolve.

    Is Trump for real? Does he dare go places where some, (JFK for example), have gone and paid for their exposure of truth with their lives? Surely he must know of the direction the monetary elite is going. Will he have answers to the unrest that will accompany such a process?

    It is difficult to know a man’s inner thought processes. But he has spoken well when it comes to the questions foremost in the minds of the populace who have begun to understand the dialectic even though some may not have had exposure to the written concepts of the equation. I, for one, hope he is the real thing, even though he sometimes irritates my taste in personal preferences.

  • Here be a valid point to consider and an abiding APT* ACT**ive problem for current systems relying on open communications to command and control the masses who are learning very quickly of the ways of their virtual gaolers. To imagine there will not be an almighty correction and smart strategic and tactical targeting of leading talking heads and their bidding masters is a bet only for fools to make and expect to be a near to medium and far future reality. General global intelligence is growing at quite an exponential rate despite the complicity of mainstream media in trying to avoid having to deal with and deliver the hidden truths in dodgy matters.

    amanfromMars said… asking a valid question of any secretive intelligence service and servers on https://amanfrommars.blogspot.co.uk/2016/08/160819.html

    Whenever all that everyone offers is bullshit, Casey E, one has to conclude that intelligence is missing in their produce. And that leaves both buyers and sellers catastrophically vulnerable to simple truthful information and original novelties.

    It is a small world indeed which thinks everything revolves around the pondering of an NSA type enterprise plagued with right dodgy business practices which general revelation would reveal are designedly destructive when certainly not creative.

    Is that sort of an agency a smart move, or is it the result of a massive egotistical stupidity ‽ .

    The world is changed and constantly changing and the worlds of tomorrow are nothing at all like the presents portrayed today by media and IT dependent systems of administration/SCADA*** Command and Control

    * Advanced Persistent Threat [and/or Treat]
    ** Advanced Cyber Threat [and/or Treat]
    *** Supervisory Control and Data Acquisition

  • Igor Orlov

    Referenced article in russian dated 2010..

    Also “Ruble backed by gold”.. proof link please.

  • SkyWatch

    “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.” Thomas Jefferson

    • Jefferson was obviously talking about quasi-monopoly central banking. What we have today …

  • ColoradoPublicBanks

    You want a system backed by gold, but the financial elites control most of the gold, so such a system will not change a thing, not to mention that there is not enough gold to back the world’s currencies and still have price stability.

    The choice is: creating a medium of exchange that benefits the cartel, i.e. commodities that they manipulate, such as money turned into capital via interest; or, creating a medium of exchange that is based on people (labor), and prohibiting interest.

    http://coloradopublicbanking.blogspot.com/2013/11/7-steps-to-global-economic-and_28.html

    • SkyWatch

      “…the banks and corporations that will grow up around them will deprive the people of ALL PROPERTY until their children wake up homeless on the continent their Fathers conquered.”

      The time has long since passed for a non violent resolution to this problem. And yet the “violent solution” holds no promise except ACCELERATED death and misery for MANY. We wait for the CRASH & BURN phase.

    • We don’t want a system “backed by gold.” We want a PRIVATE system in which some (central bankers) are not given monopoly privileges.

      • ColoradoPublicBanks

        Please elaborate, as this makes no sense to me. A privately owned system will necessarily result in the same profiteering on the money supply that we have now. Only in a publicly owned system can we avoid this, and the inflation that necessarily follows from charging interest on currency.

    • alohajim

      Sorry, there’s always enough gold to back the world’s currencies, its a simple matter of ‘price’. And it does not matter if the elites control most of the gold, as under a gold standard wages would be paid in gold/siver resulting in a monumental shift of wealth from elites to the people every payday. Bring it!

      Totally agree that money MUST represent human labor but we don’t have to create a new medium of exchange, merely return to the sound and proven bi-metallic standard of silver and gold. Credit cards and digital bank accounts and everything we enjoy about our ‘modern’ money would not have to change. The difference would be all paper and digits be redeemable in gold/silver upon demand and no group of men would have ever the ‘right’ to create currencies from nothing.

      Shangri-La for every human being – not so much for the banking families and the institutions they created to control and harvest the labor of every human being.

    • SkyWatch

      “WE” want a system backed by the RULE OF LAW. As you can plainly see, it matters not WHAT the “system” is if operated by a bunch of fu–ing criminals.

  • aj54

    “Of course, the argument will be made this sort of system is what Hitler installed in Nazi Germany in order to create the German “miracle” of the 1930s (which we are supposedly not able to talk about). But that system might have destroyed itself over time. Surely it would have.”
    ….the rest of the world was mired in the great depression, it took three years to build all new infrastructure by employing labor. Velocity of money took care of the rest. The world was envious of the new found abundance, really just labor employed, so the international banksters, who had been kicked out of Germany, had to destroy it, and it was okay if they had to destroy the world to do so. Can’t have sovereigns usurping the money majick. But of course, you think a “… quasi-independent central banks.” which have proven here lately just what a great job they do at monetary policy, are somehow preferable to a Treasury functioning as the Founders intended.

    • Your history is wrong and so is your characterization of DB’s monetary approach. If there must be large pan-industry monetary facilities, let them be ENTIRELY private and without ANY monopoly privileges. No doubt you want an “public” monopoly central bank, as if that will do something besides bankrupt the state over time. As it will.

      • esqualido

        Private money facilities are a recipe for disaster. Even when the dollar was on the gold standard, the individual states were allowed to issue their own gold-backed currencies, which could circulate nationally but had to be presented to the issuing bank for gold redemption, extremely difficult in early America. The result was variations of the corrupt practice of fractional reserve banking and the whole system collapsed. There must be a public Treasury Department with NO private (i.e., CB-like) entities, with sufficient number of branches to keep the system honest- and an elimination of fractional reserve banking. The simplest solution would be to make the Mylar so-called “security thread” out of gold or an alloy.

        • Yes, only the state can guarantee trustworthy money. And yet … we don’t believe it. And history likely shows otherwise.

        • Webforager

          Because “public” people are more honest than “private” people? And what number is sufficient to determine honesty?

    • JohnnyZ

      It seems that Hitler just pretended to be against the (rich) jews and bankers. He was financed by them initially and the City of London. He had many fans in the West, including the British King.
      His centrally planned economy enjoyed a similar miracle as the US “escape” from the doldrums of the Great Depression via the military economy of the early 1940s.

  • esqualido

    “…like the Federal Reserve or European Central Bank, be a purely monetarist entity whose only mandate is to control inflation and stabilize the [currency]. The greedy SOB’s running the central banks could care less about controlling inflation or stabilizing the currency: the dollar under the Fed has lost 98% of its buying power, and the Fed charter specifically mentions a goal of an “elastic currency.”
    Russia stumbled into a good idea when, in an effort to encourage compliance, it adopted a flat income tax. Maybe they will also fortuitously stumble, despite Lenin’s
    declaration that gold was only good for lining urinals, back to the gold standard. They should bone up on the history of Albert Gallatin’s administration of the Treasury Department as the epitome of honesty and efficiency, for both will be required.

  • Ambrose Bierce

    The rollout of SDR will proceed (probably) in terms additive to the global monetary base. Gold reserves determine shares (so China has been buying. read Jim Rickards) US is the most powerful voting bloc on IMF, the advantage in the new SDRs works against the BRICs, (lower gold reserves). The EM takes a back seat in the deal, which is financial hegemony but Central bankers have customers and if a gold backed currency is what their clients want, they will get it.
    The dollar may lose reserve status, while the biggest can in the world is kicked down the longest road ever. Can you imagine what doubling the global monetary base would do to existing debt? And all this with a common cross border currency, with SDR bonds rather than US treasury bonds held as fx reserves. Whoever has the most SDRs is the de facto reserve currency, and sweat dollars for people on the ground, properly managed of course.

  • Steven Rogers

    Load of nonsense. Russia is quickly going bankrupt because of sustained low oil prices. Printing more rubles won’t change that. Next step in that road is hyperinflation and collapse. Gold-backed currency is ancient history, there isn’t enough gold to underwrite the volume of trade, not even close.

    • Fiat currency is counterfeiting.
      The U.S. Constitution mandates gold or silver backed currency in article one section ten.

    • A Del Mar

      “Gold-backed currency is ancient history, there isn’t enough gold to underwrite the volume of trade, not even close.”
      Technically incorrect. Instead of thinking about how much gold you will need, by sheer volume, to underwrite the volume of trade, think how finely the amount of gold available can be subdivided and the immense value each subdivision will have in order to be viable for transactions. Instead of prices in FRN dollars we would have prices in gold grams. The market will determine the exchange rate of all current gold grams. It will be “high” in lieu of “there not being enough gold.” Few gold grams may be required to buy a cart load of groceries. Your salary in gold grams will be in relation to a cart of groceries as your salary in $USD is today in relation to the same cart of groceries. The extreme pain would come in the form of being unable to tax the productive public to provide subsistence living to the nonproductive underclass or to print money out of future inflation for the same purpose. Or similar machinations to bail out banks and the super-rich. Otherwise I agree the userious masters will not allow the common serf debt slaves to have an honest monetary system.

    • orx

      Why bother posting, if you are not knowledgeable.

    • Steven Rogers

      Dream all you like, but a return to a gold standard will never happen, and Russia is still economically irrelevant and well along the road to bankruptcy, Nobody wants rubles, and the more they print the less they will be worth. The dollar is not going to collapse any time soon, despite the opinions of the fringe loonies that have been predicting its demise continuously for the last few decades. The land of conspiracy theory is imaginative, but thoroughly disconnected from reality.

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