Rossa is an author and contributor at our personal site – she has sent some topics through of late and here are the urls first, then some comment.
Those are worth a look. Rossa tends to send material on heavier topics and each one takes a long read, which in my constant reading and writing life, I tend to put in the “come back to later in the day” category and you know what happens. So this morning I’ve gone through these.
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold. In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. It was the 15th consecutive quarter of net purchases of gold by Central banks. Of the 93 tonnes of gold purchases by central banks around the world during this period, the staggering volume of purchases – of 55 tons – belongs to Russia.
Actually, that was clearly written before the Ukrainian gold went to the U.S. to be stolen on an American promise, followed a few days later with 100 plus tons going from America to Holland [previous post on the matter]. Hmmmmm:
I hope Putin realizes the US is not playing games here, as this is a financial and strategic game to the death for Washington and it’s Western allies that have foolishly followed the Goldman Sachs/central banking cartel’s deadly sovereign debt recipe and for growth and prosperity. The time is up; the debts can never be repaid and sooner or later must be repudiated one way or the other.
China is waiting in the wings as the new world economic power and while it is too big to challenge, US strategy is to take out its top two allies, Iran and Russia, to buy time for Wall Street and Washington.
The world was slow to wake up to the new reality in which China is now the de facto IMF sovereign backstop, as Zero Hedge described two weeks ago in “China Prepares To Bailout Russia” when we noted that a PBOC swap-line was meant to reduce the role of the US dollar if China and Russia need to help each other overcome a liquidity squeeze, something we first noted over two months ago in “China, Russia Sign CNY150 Billion Local-Currency Swap As Plunging Oil Prices Sting Putin.”
In fact, it was only this week that Bloomberg reported that “China Offers Russia Help With Currency Swap Suggestion.” But in order to fully backstop Russia away from a SWIFT-world in which the dollar reigns supreme, one extra step was necessary: the launching of direct FX trade involving the Russian and Chinese currencies, either spot or forward – a move away from purely theoretical bilateral FX trade agreements – which would not only enable and make direct currency trading more efficient by sidestepping the dollar entirely, but also allow Russian companies to budget in Chinese Yuan terms. It is no surprise then that this is precisely the missing step that was announced overnight, and will be implemented starting Monday.
And of course:
As a reminder, it was about a month ago when we learned courtesy of an interview on Ukraine TV with the country’s central bank head Valeriya Gontareva, that Ukraine’s gold was virtually all gone, when she made the stunning admission that “in the vaults of the central bank there is almost no gold left. There is a small amount of gold bullion left, but it’s just 1% of reserves.”
Russia will not collapse – there is no such thing, it does not compute. It may well go back to an agrarian/industrial economy of its own and trade with China, people will keep their roubles in shoeboxes in their hall cupboards again but there will always be cabbage, buckwheat and meat, not to mention carrots and watermelon and berries in summer, mushrooms in September, to be bottled, Russian people simply bring out and dust off their “banki”, their bottles which they have the sealing gear for in each house, western goods will be approximated through the China trade and they’ll live as before.
Those housing blocks will still be centrally heated through the winter for a pittance. The lifts will still semi-work.
The people directly hit by these sanctions are the middle-business nouveau riche and the aspirational. The oligarchs fly out of Russia to shop, the poor do as the poor have always done, under any system.
Meanwhile, the U.S. is facing a genuine end to dollar hegemony and Obama is hurting businesses in Europe with his sanctions on Russia. Russian weaponry is less efficient these days, ships have rusted out and been looted, but weapons still fire and stop Ukraine taking over the Donbass. Unless America and the EU/NATO/CIA get out of the Ukraine, there will be military confrontation, as there is. Russia will not brook missiles on its doorstep.
Why would America want this? The backers of America, the banksters and other members of Them know it’s coming to collapse for the west – they’ve done that to us – and the traditional way out of this for the west has been to start world wars and send in the cannon fodder, thereby culling the population as is their wont.
And as people are always reminding this blog author – keep an eye on the UN, source of a huge amount of the trouble afflicting the world today.