Putin, the Ukraine, China and the west

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.

Most interesting:

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.

6 comments for “Putin, the Ukraine, China and the west

  1. Flyinthesky
    December 29, 2014 at 1:23 pm

    My considered opinion is the UN is the eu on steroids. Both entities are extremely good “concepts” but with vested interest inspired mission creep they have both become monstrous abominations.
    They both have their tentacles so far entwined in our actual existance they have almost, if not actually, become too great to address.
    We are stuck on this road now till it reaches it’s own conclusion and as you infer the conclusion may well be world conflict.

    The much vaunted world trade is no solution either. UK government: we’ll trade our way out of our difficulties, yea right, even if we could it isn’t a zero sum game is it, any gains we make are another nations loss. Notwithstanding, as we see in the Russian situation, trade can be weaponised and ulimately lead to conflict.

    We have bizzare situations arising where China is lending America and other nations funds to maintain their liquidity and enable them to continue to buy Chinese goods, surely this is finite and the conclusion may not be pretty.

    Trade should be a bonus, if becomes a necessity, as it is to us, you become subserviant to it and subject to the vagaries of it.
    The winners in this big game will be the nations that retain the autonomous capacity to service their own populations, there aren’t many and we passed that point some 20+ million people ago.

    The nag in the back of my mind is you can’t have the NWO until you have completely destroyed the old one and I feel it’s ongoing.

    • December 29, 2014 at 1:29 pm

      We have bizzare situations arising where China is lending America and other nations funds to maintain their liquidity and enable them to continue to buy Chinese goods, surely this is finite and the conclusion may not be pretty.

      Yep. Let me add what Rossa has just added:

      Just to add in a few other strands.

      Putin went to Cuba and signed a deal with Raoul Castro for Rosneft to help the Cubans develop their oil fields. Then we have the US restoring diplomatic ‘relations’ with Cuba. As the US is renowned for using their Embassies to bring in their spies, economic advisers etc., that’s one to watch.

      A number of South American countries have closed down their American Embassies and are watching this with interest.

      There is a suggestion that one of the Baltic countries may invoke an Article 5 (think that’s right) asking for NATO to intervene if Russia ‘invades’. Ukraine has ‘decided’ to join Nato. Couple of points with that. There is no way the US/EU/NATO could win a conventional, boots on the ground, war with Russia. Like Afghanistan, never been done, can’t be done. Russia is not Iran or Venezuela. They go the nuke route, game over, as we’re all done for. Not happening.

      I did find it interesting that Russia is ‘allowed’ to have up to 25k soldiers in Crimea. And they have not breached that international agreement. All the western propaganda about an invasion is absolute nonsense.

      There is even talk about the US sending ISIS (their construct) into Chechneya to destabilise and set up another front for Russia to fight against. Good luck with that one. Russia has about 100,000 soldiers in the vicinity and most of the natives will have no truck with the West having seen what happens to those that do.

      For me this is all stage managed to get us panicked into believing there will be a war and with the economic ‘Crash 2’ yet to be orchestrated there will be enough people demanding that They do something.

      One of my closest friends believes all the West’s propaganda and has a number of Republican customers. He is the perfect example of someone with blinkers on. Can’t see the wood for the trees. You’ve got to look at this globally now. Even my financial adviser, who I rate quite highly, hadn’t even heard of Special Drawing Rights and they’ve been around for 20 years or so. IMO these are all moves towards bringing in the global currency and dollar hegemony is coming to an end. They did it to Sterling. Why does anyone think They can’t or won’t do it again with the dollar.

      PS Good post on Market Ticker about the fact that the US economy hasn’t actually expanded in terms of production for 30 years. Adding in debt and now drugs and prostitution to their GDP figures does not a recovery make.


      O/T slightly. Samaras, Greek PM, has just lost the 3rd round of voting for his Presidential candidate. Troika will not be pleased. Snap general election now.


      • Flyinthesky
        December 29, 2014 at 2:56 pm

        It’s all gone a bit wrong hasn’t it.

        One situation that confounds me is the Ukraine, no one seems to see the parallels with the Cuban missile crisis. The US went ballistic, no pun intended, at the concept of Russian missiles on an island with near a hundred miles of ocean between it and the USA. Yet can’t see a problem with wanting to put missiles in Russias front garden.
        The propaganda excercise is almost complete now, most people that you speak too have now been convinced that Russia is the aggressor and the west’s intents are totally altruistic.

        After reading the market ticker piece I’m rather glad I don’t have a metaphorical pot to……… I have enough concerns without it.

        The Greece situation to me is a perfect illustration of the eu’s M.O., I’m sorry I can’t bring myself to capitalise “eu” childish I know but there we are, woo it, bribe it, bust it, own it and we’re all on the menu.

  2. Viscount Rectum
    December 29, 2014 at 8:16 pm

    Just dont know what to say, what about Agenda 21 forgot that? and how can you speculate on all this when no-one can even prove Obama is not an Indonesian citizen, such a simple thing.

    • Flyinthesky
      December 29, 2014 at 9:03 pm

      Obama’s nationality is an aside, The real consideration is there are many agendas afoot, none of them ours. Agenda 21 is ongoing no matter who’s in office.
      In the absence of democracy, it is absent and the perception is an illusion apart from a few small enclaves. We have been relegated from players to pieces, we’re all pawns in someone elses game.

  3. johnnyrvf
    December 31, 2014 at 6:39 pm

    The latest from Russia is that they have struck a lend/lease deal with Argentina. In return for Beef and Wheat Russia will supply a number of SU 24 ‘Fencer’ fighter bombers and technical know how to operate them. With a 3.000 km range they will have no trouble targeting the Falkland Islands. There are 4 Typhoon fighter jets protecting the islands, what a great situation to see just how effective they are in action; the Russian military must be rubbing their hands in glee at this opportunity!

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