Putin Flushes the US Dollar: Russia’s Gold Ruble Payments System Delinked from Dollar

There is a lot of hot air that comes out when you open the oven...

But it would seem, in this instance with the lack in reputable sources, that there is no Bread being baked in there... and that's all it really is... just a lot of hot air...

Elliot
Hmmm. Didn't Mr Saddam Hussain stop selling oil using the petrodollar?

Yes he did. Gaddafi was thinking to do the same going even further when planing to introduce a gold currency for all Africa. And we all know how it ended for both of them. This time though the "rebel kid" is not a woos but someone with balls of the size of a church bell. Putin is not Saddam or Gaddafi and Russia is not Iraq or Libya.

Here is a link to the real story, which is not as sensational, but a significant step in a direction a whole lot of people are thinking about going, even in the US.

www.themoscowtimes.com...

St. Petersburg-based Bank Rossiya is to cease all foreign currency operations and work only with the ruble in response to U.S. sanctions imposed last week, it said in a statement on Friday.

Bank Rossiya is Russia's 15th-largest bank by assets, and the only Russian company that has so far been included on the list of individuals and entities sanctioned over Russia's annexation of Crimea, because of its close links to businessmen seen as personal allies of President Vladimir Putin.
...
Kostin said Russia has been moving for some time towards making broader use of the ruble as a settlement currency — the currency in which goods and securities are paid for.

How can we, the people of the US disassociate ourselves from the FRD, which is not the USD, and we should keep making this point.

The thing is, even if sanctions and economics somehow work out so that Russia can only sell it's oil to Russia, who's really ahead in this game? Sure they're not taking on and being owed debts by others (which is how the U.S. is currently "on top") but sitting on piles of vast natural resources and having them available if needed is better than bank sometimes. Only thing Russia lacks is productivity, otherwise they'd be in a much better position. As a country they wont hurt from sanctions, but Ivan out on the street might find it hard to go and buy that VW or Opel. (Chinese stuff like electronics will still make it across the border though, since I don't see anyone stopping that even if China agrees to anything penalizing Russia officially.) If anyone comes out behind in this squabble it'll be those that have been doing business with Russia in Western Europe. You'd think there would be a lot more from the EU on this, as that's where this chicken is going home to roost. (However the 1%'ers of Europe are probably gaming on it with alternate resource suppliers. Which maybe explains why they've been too quiet?)

And no, I'm not cheering for Russia in any way. Just thinking that sometimes pissing matches are stupid when there's no real or obvious benefit for the greater good.

TritonTaranis
Whose going to force the US to pay its debt?

Nobody, but nobody really cares as US debt holdings is not overly relevant to this.

Whose economy relies on the debt ?

The most? The US, but again, not overly relevant to this issue.

Whose Russia going to sell its has and oil to which we all know is Russia's equivalent of the petro dollar propping it up?

Same people they are selling to now. It will be decades before any other oil producer will have the capacity to cover Russia's current exports.

It'll be absolute kaos, I really hope you are all truly prepared to defend your family's

No it won't. Countries have traded in non USD for decades. It really won't change much except the value of USD, which is not overly relevant in trades between Russia, EU, China, and India.

Hmmmmmmm, Iraq was attacked for that.....

Hmmmmmmm, they talk about attacking Iran for that.....

Hmmmmmmm, WW3 anyone?, all the same players are involved that were involved in WW1.....

HMMMMMMMMM!!.....

AnIntellectualRedneck
And then China comes on board, and then the other BRICS countries, and then nothing happens because after the country that alone accounts for 1/4 of the world's GDP stops doing business with them, they all collapse in a torrent of poverty and slip back into pre-Industrial poverty.

Oh wait, that's already happening in some of them.

They may own our debt, but we own the stuff that their economies make. Inflation will take care of the debt they dump; no amount of finagling will magically fix 20-40% reductions in their trade markets.

LOL did you just say that BRICS countries will turn "pre-industrial" without the US to buy their products?

You do realize that most of the products that the USA buys from BRICS countries are, in fact, produced by American companies that exploit cheap labour. Just because the USA domestically has a huge labour reserve army (over 20% unemployed) doesn't mean your companies will return to build factories to employ Americans inside the USA again.

In fact, switching back to more expensive variable labour costs will provide more money for Americans to consume, BUT it will dramatically decrease the rate of profit. The rate of profit is what matters to investors. So either something happens in the USA that leads to vastly cheaper labour (technological revolution or ultra police state), or it will collapse.

Now, this is only half of it. Where will the USA get vital resources from when an alliance like BRICS embargos them? China holds 95% control over all known reserves of rare earth elements. And how can the US government support both the military and the rest of the population at the same time when resources are limited?

...maybe I should just stop here. It's sounding more and more like a libertarian wet dream

reply to post by Elliot


Putin might come down with some plutonium poisoning.

Russia and all other countries should drop the dollar just because of how the US gov war-mongers and all the other crooked # that they and their "agents" do. I have no doubts that the US will see it as an "act of war" but I'm not surprised that the whole world wants to take us down. Our gov has become a monster of death and it needs to be slayed.

poet1b


Here is a link to the real story, which is not as sensational, but a significant step in a direction a whole lot of people are thinking about going, even in the US.

www.themoscowtimes.com...

St. Petersburg-based Bank Rossiya is to cease all foreign currency operations and work only with the ruble in response to U.S. sanctions imposed last week, it said in a statement on Friday.

And only on ATS with anti-West prejudices people think that this is some massive blow against the US dollar or EU euro?

A 'reserve currency' comes about because people want it, not because a dictator wills it. In practice, this means behaving the opposite of Vladimir Putin. Historically, it means possessing economic and military strength, but deployed in a way which increases stability, mutual trust, interconnected dependency, a completely open capital account, a deep and liquid bond market, safe international banking and a reasonably impartial and rule-driven, predictable legal system for resolving commercial disputes. Who did this? Roman Republic & Empire. British empire until 1930's (pound was the global reserve currency), USA since 1945, EU since 1990's.

When actual money is on the line, powerful and wealthy people usually behave rationally, and in the end, they trust the Fed and ECB and the associated payment and finance systems more than they trust banks which take orders from Tsar Putin. If you had to put YOUR money down, what would you do? (Personally I'd choose a German, Norweigian and Canadian bank if I were really worried).

Bank Rossiya didn't make this move because of customer demand.

So if Putin demands that oil and gas be only priced in rubles, and then prohibits banks from transacting in euro/ruble FX and currency futures, how is he going to sell his gas to europe? Since the ruble is obviously going to be much more chaotic and subject to political risk than euro or dollar, any energy buyer will want protection against exchange rate fluctuations with futures and options. That means there must be a *trustworthy* bank (low counterparty risk) which will offer these services---that means probably not a Russian bank these days.

What is the effect in the end? Russian gas effectively has its price raised for financial volatility reasons, inreasing competitiveness of alternatives, but the Russian government or firms will not benefit.

Making your only hard-currency exportable product more difficult to buy is not an economically winning move or a sign of strength.

The market has spoken about what currencies it wants:

online.wsj.com...

In currency trading: (total adds up to 200% because all trades are pairs of currencies)

US Dollar: 87.0%
Euro: 33.4%
Yen: 21.0%
UK pound: 11.8%
Australian dollar: 8.6%
Swiss Franc: 5.2%
Canadian dollar: 4.6%
Mexican peso: 2.5%
Chinese Yuan: 2.2%
NZ dollar: 2.0%
Swedish krona: 1.8%
Russian ruble: 1.6%
HK dollar: 1.4%
Singapore dollar: 1.4%
Turkish lira: 1.3%

CranialSponge
BRICS has been patiently waiting for this checkmate move for a very long time now whilst amassing vast amounts of gold in preparation for it.

BRICS are likely to do it, and do you know why?

Whether the OP's link is legit or not, this move will take place at some point in the near future, it's only a matter of when.

Well, the difference between the parties is ... that Putin is a chess player. He's playing chess ... while the US, is playing for the crowd. The US president, is standing before the masses, like Hitler did ... and bathing himself in the "Heil Hitler"

Russa, and China, are the ones who are holding up the dollar. They are buying dollar, like candy for the only purpose of holding up the dollar value ...

In the late 1980's, England with the aid of the US, dumped trillions of Rubles on the Soviet Union ... and it is probably the biggest reason, along with the wheat draught, that caused the collapse of the Soviet Union.

Just imagine what will happen to the US, if China and Russia dumped all their dollars out on the market ...

But they are likely to be waiting, until they can make Britain collapse as well.

If you are an American ... keep in mind the fact, that the only thing that remains of the Roman empire ... is a desease called herpes. Everything else ... is extinct, literally.

May you live, in interesting times.

buster2010

MALBOSIA

crazyewok

Elliot
Hmmm. Didn't Mr Sadam Hussain stop selling oil using the petrodollar?

Don't think Mr Putin will be so easy to remove from power somehow.

All 'good things' must come to an end...........

As the Chinese say, 'May you live in interesting times.'

No one Invades Russia if they have any brain cells....no one....

edit on 30-3-2014 by crazyewok because: (no reason given)

I fully agree. Not even because occupations of foreign lands NEVER lasts, it is because Russians are Russians and their "Motherland" is a belief among them that will out spirit any religion, government or monetary system. They are similar to Canadians but more ancient and unburdened with pleasantries. I think it has to do with living above the 49th parallel. If you don't, you won't understand.

I wish Canada and Russia would team up. The rest of the world requires hand-outs to survive and should be placed according in order.

Seeing how much Canada relies on America for it's economy this will never happen. If America were to stop buying Canada's oil how long do you think it would take before Canada's economy would collapse?

Perhaps you are forgetting Canada's huge wheat harvest?

Putins net worth is now like 75 billion dollars or something. Took office with a measly 11 million net worth. He's part of the very group some of you claim he's fighting. He may not be an architect but he's definitely been bought and payed for. He's playing his part on the world stage. To what end we will see.

Eventually the world will dump the fiat USD. He's just ahead of the curve.

MALBOSIA

TDawg61
And he huffed...and he puffed...but he couldn't blow the world's reserve currencies door down.And exactly who else is going to deal with rubles and damage their relations with the west?

Those in Europe and Asia that want food, water and energy? By "relation with the west" you mean extortion from the west. Right?

Can someone remind me what the US Israel and Britain are bringing to the table? What services do they offer the other 7/8 of the planet. I am scratching my head on this one.

edit on 30-3-2014 by MALBOSIA because: (no reason given)

Unfortunately for US taxpayers like me, they are offering the other 7/8ths of the planet our tax dollars in foreign aid.

reply to post by maddy21


Unless I am reading this all the wrong way, I see this as
Putin removing the weatern grip from it.
Seems to want a secure stable way of living within its borders.
Not getting fleeced.

And the US ( not the citizens) are pissed because of the loss of revenue, is that right.....but not only that, those that are trying to create conflucts are not the ones participating.

I'd say to those if serving in military units whether it be US , UK or any other countries armed forces globally.

It seems that those eager to get involved in a war or create a war are those who are pointing Russia.
Putin's probably sick of the bull#$@! and sees the collapse of a financial system and wants to make sure that he can do what he can for those he serves.

There's an article about him withdrawing troops from crimea, I say he will stand by his word. How long have we heard that the US and UK ttoops are pulling out of Iraq, Afghanistan and all other areas.
Cameron, Kerry, Hague, Bush, Blair .......on the fence about Obama but hey,.....all of them are quite happy sending troops on their behalf, months at a time away from their families, caught up in a conflict that really isn't about terrorism......it all boils down to money. Money, thats what lives are sacrificed on all sides for.

Men and women serving their nation is wars created by a bunch of fk ups who sacrifice nothing but the lives of others.
Men, women, children, families, communities ruined through greed.

Military personel should ask their leaders to take the lead.
I mean it seems as if those lost in action get a quick 2 second shout out on the news.

Is that all they are worth?
Rememberance day for instance the leaders have the neck to observe it knowing that while they remember the lost tgey aee still sending the next.
These are mams and dads, sons and daughters brothers, sisters, cousins, friends or just one of those faces that used to live near by.

If the conflicrs are because of inequality then I'd say why can't we fix it. It's we that add the pricetag therefore we are doing it to ourselves.

We live on one planet, to describe an area as a third world nation yet we all reside on the same world it's ridiculous. If uou cant see that.

But wars about money and commodities dressed up as terrorism and manipulating stock markets and various monetary systems through wars, conflicts and tactics to destabilise an economy and essentially the people that reside there?
And they're pointing fingers pmsl.

Maybe Putin should make a deal, he will remove his troops if the US and UK remove theirs. Afterall the Prime ministers and Presidents have been promising withdrawal, also most of them have families back home.

Back to Putin
Mobilization of his troops into Crimea prevented so much. The country wasn't allowed to implode in a sense through rioting, looting and spiralling out of total control.
The war mongers will be pist at that lol

I've said it many times. Don't be hasty.

reply to post by mbkennel


I am not anti-west, but I am against the current state of ICBing.

The FRD got to where it is because they used to do business a whole lot differently, and they were backed by massive US industrial capacity, which has since then been sold off for profit.

Sadly we seem to have lost something, and everyone can see it.

reply to post by bjarneorn


Until China and Russia build their own domestic markets, they will continue to be dependent on other markets to buy what they are selling.

In the case of Russia, they need Europe, and China needs both the US and Europe.

In order for China to have a domestic market, they will have to raise wages.

The problem of the US is not high wages, it is our outrageously over priced banking system.

reply to post by poet1b


Its not about anti western, anti eastern anyway man, everyone needs to see that its
anti-those who are profiting from proceeds of war.
The same people who create the divisions and conflicts.

The worst part of it is. .......it doesn't have to be this way at all.

Balance needs restored. Equilibrium.

Don't force people to live on a land where food will not grow or water doesn't flow. That's making them a prisoner in their land. Forcing them to rely on aid supplied by particular food suppliers and through the funds raised by the public to pay handsome wages to the introduced middlemen syphoning off from the charity funds

When people donate they want all of what they give to go to what or who they were donating too. Fair enough a wage but not to the extent of lavish lifeatyles paidfor through the hardship of others.

Aid should be determined in weights and measures not monetary value.

Like I said its not anti east or west its anti-suppresants and war mongers.

reply to post by maddy21


I Putin really wants to push the U.S. into a war. The U.S. is in talks with India and China right now over this. If China or India support this move by Russia then mark my words, war will start very soon. The Federal Reserve bankers will turn its big dog lose and that is the U.S. military and some other NATO nations in Europe.

I am sure we will start by taking something very dear to Russia like Syria!

Run Assad Run cause your days are numbered in months at the most.

reply to post by jazz10


The U.S. hardly does any business in Russia cause Putin stopped that a long time ago after U.S. oil companies once again went in and showed them how to pump it and where to find it. The U.S. companies were tossed out and Putin put himself in charge of the now single oil and gas company called Gasprom. A country as large and poor as Russia will never be able to make enough money to support itself and not have a big outside market.

Take away the oil and Russia would fold completely. Hell stop it for a month and they will implode.

reply to post by maddy21


You have to think for a minute, if the true puppetmasters are based in the U.S. the U.N. etc we aren't going anywhere anytime soon until their grand pre designed chess game is played out, considering going against the dollar, two have already met their fate from even insinuating they were abandoning it, Sadaam and Khadafi , which was a threat on the bankers that rule the world's money, do not mess with the Illuminati money scheme, and more than likely Putin will meet a similiar fate, could be similiar to events that kicked off WWI, if someone takes Putin out Russia will be in complete turmoil and unable to assist Iran when they are ultimately attacked by Israel.

If the true centers of power in the World have any influence, ie Israel, their friend is not Russia because they are old allies of Iran, also if you are really a student of the Bolshevik Revolution and know even a little about Tolstoy coming to NYC for his prepping if you will, then you best recognize the pawn that will lose in this, will not be the U.S. in my opinion Russia is only going to be weakened by their recent actions and they will not come out of this a winner by any stretch, they are to be used in the diversion of the upcoming defeat of Assad and then the ultimate attack on Israel or preemptive attack by Israel on Iran kicking off the fireworks is what lies ahead my friend, the Russians took the bait and they will be unable to help Iran.

I put money on that.