By Aleksandr Rodgers
Translated by Ollie Richardson and Angelina Siard
cross posted with http://www.stalkerzone.org/aleksandr-rodgers-russia-is-preparing-for-a-perfect-storm-in-the-global-economy/
In recent months Russia, as some claim, “strenuously prepared for Putin’s meeting with Trump”. What does this mean?
Firstly, in April the Central Bank of the Russian Federation dumped nearly a half of US Treasuries that it had on its balance, having reduced their stock from $96.2 billion to $48.7 billion.
In May the Central Bank continued to do this, having reduced the quantity of treasuries on its balance even more.
Certain news agencies only emphasized that Russia dropped out of the list of the largest holders of treasuries, having noted that this “is less than $30 billion”. They use students in these news agencies, and as a result such “news” appears.
Having read the full report of US Department of the Treasury, it is easy to see that the size of the Russian investments in treasuries was reduced to $14.9 billion.
I.e., more than sixfold in two months. But there still isn’t any data for June…
Secondly, some observers noticed that against this background the Central Bank of the Russian Federation continued to increase its gold reserves.
|Date||Monetary Gold (mln $)|
Since the Central Bank shows in its report the amount of gold in the dollar equivalent, we will have to convert it at the rate of the corresponding number.
- On April 1st 80482/1340 = 60,061 million ounces.
- On May 1st 81146/1315 = 61,707 million ounces.
- On June 1st 80511/1301 = 61,884 million ounces.
As we see, the amount of gold indeed steadily grows.
Some were stupid enough to be indignant because the Central Bank buys gold while it goes down in price. On the one hand, if it bought it at the top peak of the price, then it would be worse. On the other hand, it is possible to assume that in the near future certain events are expected that can significantly raise the price of gold.
If we work like system analysts, then we need to coordinate at least two more facts with the aforementioned.
Thirdly, the majority of Russian state corporations and a number of banks and companies with State capital switched (or are in the process of switching) to the Russian System for the transfer of financial messages of the Bank of Russia (SPFS), which actually means abandoning SWIFT.
Very recently, in June, “Gazprom Neft” also tested a transition to SPFS.
As was stated in the press release: “The use of a sole system that all Russian credit organisations are connected to instead of many local bank clients allows to considerably increase the speed, reliability, and security of carrying out financial operations and to optimise expenses”.
And fourthly, the head of “VTB” Andrey Kostin met with Putin the other day and presented to him a report on the activity of the bank. During the meeting Kostin, in particular, said two things:
“1. Since the beginning of this year, people seem to be less interested in making dollar deposits or taking out dollar loans, compared to ruble-denominated deposits and loans. We believe this to be an important step towards the de-dollarisation of the Russian finance sector.
2. VTB experts have drafted a package of proposals designed to further promote the ruble in international settlements and thus develop the Russian market for floating Eurobonds, shares and creating other derivatives that are now used only in the West. I think that we need to create our own financial tools. This would serve as an additional safeguard for the Russian financial sector against external shocks, and would give a new impetus to its development”.
As we can see, both State corporations, and State banks are actively preparing for the de-dollarisation of economy (or, if to be more exact, carrying it out with confidence) and possible problems from SWIFT, and also increase the self-sufficiency of all systems (communication, payment, and so on).
I think that if there is the desire, then it is possible to significantly add to the provided list of measures. Russia consistently and surely dumps the dollar (and, quite possibly, prepares for the “perfect storm” in the global economy that was predicted long ago), and today none of Trump’s words or actions can change these aspirations.
Because no Trump is able to stop the impending storm.
So what your saying is that the RF bought 325,000,000 million worth of Gold out of a total of 80 billion that they cashed in off US T-Bills. What are they going to do with the rest of the money . Convert ‘it’ into Rubles to stimulate the domestic economy . The price of gold actually went ‘down’ during this time frame which is against ‘supply and demand’ basics . The other aspect of this T-Bill selloff by the RF is that they are still following the WTO rules and still bound to the Western Banking regulations . The question is: Is the RF going to continue to accept its trade surplus to be denominated in Foreign Currencies and rely on the permissibility of converting the foreign debt to stimulate their own economy or decide (finally) that their own Central Bank can do the same as the Privately owned banksters do .
Try to use the words “supply and demand” very cautiously in this day and age of the fraudulent economic monetary system.
Actually avoid the term “supply and demand” when you speak about gold, oil, mortgages and other “financial instruments” until you actually have basic knowledge or studied how these instruments are used within the system.
Now read below how the gold price, just as the oil price among many other commodities and instruments are artificially manipulated within the system:
“” The total value of all Gold mined on Planet Earth to date is around $7.5 Trillion Dollars. Estimates of the total amount of Gold do vary between 140,000 to 170,000 metric tonnes.
We do know that a total of 32,825 metric tonnes is held in vaults by the IMF and all Central banks, with the United States holding the most gold at around 8,133 metric tonnes.
In contrast, over $10 Trillion (With a “T”) of Paper Gold Certificates were traded in 2016, up by 50% compared to the previous year.
Exchanges like Comex will list 202,000 ounces of gold in the “registered” / deliverable accounts of the Comex vault custodians. However, some trading days, Gold futures can account for 41,900,000 ounces of paper gold or over 200 to 1 of “Paper Gold” vs. Real Gold compared to what is actually being traded. Other exchanges could be better off worse than Comex.
Comex can never actually deliver on all of the contracts it has, as they simply lack the physical Gold to do so. Therefore the “Paper Gold” market is 100% fraudulent. These markets exist to provide traders and investor with another trading commodity to profit from and they are therefore not real investments. “”
Thanks for the reply. I am well aware of the ‘paper gold’ market and the naked shorts that artificially drive the price of Gold ‘down’ along with the bet that the price will later rise .Also you are correct to state that there is not enough fungible gold to cover if the manipulators decided to claim the real metal . Yet if enough traders were to demand delivery simultaneously then the price of gold would have to spike because of the shortage of the metal.
What I am referring to on the ‘supply and demand’ portion of my comment is if a country or person makes an offer to purchase a very large sum of gold then the tendency would be an increase in price
No worries Stefan !
The reason why China and Russia (India, Turkey are joining in on the fun too) are basically hoarding gold (lol !) is due to the very fact that the US is suppressing the gold price…..
……so because the price is not based on “supply and demand” in the first place, is what allows Russia and China to hoard even more gold. Actually since the first quarter of this year (since February) the gold price has dropped by 8 % while you can see in the table above how much Russia has been buying.
Look at the gold reserves in this chart:
Notice the stairs pattern :-) ….this is caused by some of the countries not sharing their actual reserves (lol), assuming they are even true in the first place, I have my reservations on literally any number I read.
When the Americans pump up the dollar and suppress gold price….they try to make for those who do not have dollars more expensive to buy gold…..because gold is traded in dollars !
With Russia, China and for example Japan dumping US T-bills….they have enough dollars to buy gold !! No need to trade rubles to dollars to get the gold. Obviously this is because dollar is still a global reserve currency.
Thanks Harry : I agree with what you wrote and yes if your not part of the favoured currency countries (US ,British Pound ,Euro ,Swiss frank) then indeed buying PM becomes rather pricey when the exchange rates are factored in . The biggest factors in this manipulation is the paper gold racket and the US Dollar index. Now if persons are interested in purchasing Gold then the price is actually very good at the moment but for how long is perhaps the question. Just as an aside the economic indicators don’t look very healthy at the moment . Interest rates are rising ,foreign currencies are being devalued which means that paying just the interest is going to be costly . Then there’s the Yield Curve which is close to being ‘inverted’ and top this off with increasing oil prices . My guess is this entire parasitic thing may start to unravel in the fourth quarter.
Back in the mid 1990’s when Peter Costello was the Australian Treasurer, he took the advice of George Soros and dumped most of Australia’s gold reserve onto the gold market, pushing the price of gold from about $328, I think it was to about $280,
When asked why he did this Peter Costello replied that gold was no longer what it used to be.
From there, gold and silver started to work their way back until both reached their peak of gold @ $1900 per ounce and silver @$50 per ounce and then came Easter 2009 and then they pulled the carpet from under the market and the prices dropped.
I also believe that the reason George Soros had the Australian gold dumped on the market was to initiate his attack on the ‘Seven Asian Tigers’ which forced most of those countries to use the IMF. However Malaysia under Dr Mahathir refused to do so and was not as badly damaged by the Soros attack.
However, Peter Costello was not the only member of his family to listen to George Soros. Peter’s brother, the Reverend Timothy Costello became the spokesman for another Soros foundation in Australia; The National Coalition for Gun Control after The Sydney based UN ‘spokesperson’, Samantha Lee, stepped aside after the Monash University attempted massacre where Lee and the Monash University lecturer, Brett Inder spoke against a shipment of Beretta pistols arriving in Australia in 2003.
The real question though has to be in regard to the ‘Gold at Fort Knox. Is this the gold currently being used by the IMF?
It boils down to protecting the US Dollar as the reserve currency and the fringe benefits that the FreeLoader Class obtain from ‘it’.
One of the smarter moves Hugo Chavez made while he was still alive was, he had a ship deliver to Venezuela the physical gold the state owned. Try to freeze those assets! (Unfortunately, Maduro is no Chavez)
This is my first world war…I didn’t realize they were so hard to start!
What is the betting that both China and Iran are aware of this Russian policy and actively considering the benefits of applying comparable policies? Shared intelligence for sure knowing Putin etc. No need for them to be in denial about the fragility of the Western Banking System.
Iran already banned USD operations last year.
Re: China it most probably is reverse. In the Double Helix it is Russia who is prima donna military wise, and China who holds the upper hand economy-wise
So i read it that Russia now, in the wake of sino-american trade war, considers US Treasuries highly risky, maybe even toxic asset.
IOW Russia does not spearhead something, Russia instead saves itself form the possible China-America fall out. For example many called China-owned US Treasuries “an economic nuclear option” – if China would just dump them all to the market and push ALL the treasuries in the world into death spiral.
My bet is that now – out of common sense or maybe having some specific message from Beijing – Russia started considering this previously hypothetical scenario now realistic possibility, so Russia is pro-actively moving away from the epicenter.
China, as far as I know has setup its own exchange system (in Shanghai?), which, as I understand it, is working with Russian System. As far as I can see it, China is stuck and must buy USofA certs if it wants to sell any goods to USofA. At least until USofA loses its supreme power or stops buying Chinese made goods.
> China is stuck and must buy USofA certs if it wants to sell any goods to USofA
1. “nuclear option” is just that, the ultimate blow, unlimited in both effects and consequences. If China goes for it, it would mean they no more care about export, it
2. China can start buying exactly as many treasuries as it need to buy something American. Like recent liquid gas in Alaska talks, where China promised to fund the factory development – by those very Treasuries
Interesting that this should come on at the same time as this observation:
Max Keiser and Stacy going back 4 yrs, watching what Russia was doing then by going back to 1998, and predicting how well Russia would handle the late crisis and the people in charge based on what she did in ’98.
I remember saying at the time, when there was so much criticism in some social media outlets about Elvira Nabiullina and Kudrin as having such a major role in Government economic policy, that Russia has gone ahead in leaps and bounds since 1998, and with these people at the helm, therefor they couldn’t be doing too badly by Russia.
It appears that chief of Bloombergs and also a chief of IMF agrees -what they have done, as Max and Stacy point out, is to just follow good, solid sound banking principles.
We needed to remember also, that Russia has a brilliant President who just happens to have a Ph.D. in Economics, of whom an examiner at his Thesis defence said “it was one of the best defence of thesis I have heard, made by someone who really understands the market”.
Put this together, and it does make sense that if Russia is preparing for a melt down to swamp the world, it just may have its ducks in a row, and be making a very accurate assessment.
The western-centric economies are on the road to nowhere since the whole system is kept going by a Ponzi scheme. That is to say that debt – private and sovereign – continues to growth faster than national income. In short the apparent cure for debt is more debt. Sovereign debt in the US is now 105% of GDP. Normally this wouldn’t matter since a stimulus would enable the US to grow its way out of debt. However, what we are witnessing is the return of David Ricardo’s dreaded symptom of diminishing returns to scale. This means that each additional input of stimulus results in smaller and smaller outputs. US GDP stands at $20 trillion, unfortunately the sovereign debt stands at $21 trillion. Add in private, household and corporate debt, in addition to unfunded future liabilities and you have a very big problem. Moreover this debt is not necessary productive. Much of it goes on consumption rather than productive investment and what investment which does take place is in financial instruments – stock buy backs and mergers and acquisitions. The trend line of debt to GDP is very worrying getting wider by the year and shows no sign of reversing.
This is clearly not a viable business model and the whole thing will hit the rocks sooner or later.
Yes, Russia is preparing for the coming financial storm, as is China. Both are preparing to introduce gold backed currencies, when the time is right.
When it comes to gold holdings, the article concentrates on the Russian Central Bank which, maybe, does not control all the Russian gold deposits. According to Dr Jim Willie, there are more than 30.000 tonnes of gold and 5.000 tonnes of silver stored in the Kremlin. The gold will be used for a new gold backed ruble, while the silver will be used for new cryptocurrency. If these facts are correct, then we shall be seeing a financial game changer.
And yes, Trump will not be in a position to do anything about it, bearing in mind the US foreign and domestic debt and the fact that the dollar is printed backed by nothing. Perhaps this explains all the vilification directed against Putin.
Based on “Gold reserves by country as of November 2017 (in metric tons)”
United States 8133.5, Germany 3373.6, IMF 2814, Italy 2451.8, France 2435.9, China 1842.6, Russia 1828.6
According to you, the US has 8.133,5 metric tonnes of gold. You sure it’s gold ? Perhaps it’s tungsten, as some analysts have pointed out.
I hope there are more than 30.000 tons of gold stored in the Kremlin.
Do you have a link?
According on “Gold reserves by country as of November 2017 (in metric tons)”
United States have 8133.5 tons Gold, and Russia have 1828.6 tons Gold.
We have to separate the Facts from Fictions.
If you are interested in Tungsten, then you can buy it at Alibaba Tungsten sheet US $40-100 / Kilogram or tungsten dart billets Alibaba China product US $52-79 / Kilograms.
Very Interesting link you provided regarding tungsten–apparently China provides about 75% of the world’s supply!
Thank you for your advice. However, I was never interested in tungsten, as I have no need of it. I raised the question if the “gold” in Fort Knox is really gold, or tungsten, as analysts have for years been claiming.
“…and the fact that the dollar is printed backed by nothing.”
While the above may be technically correct since Nixon ended gold backing of the dollar, the dollar is practically “backed” by the PetroDollar regime initiated by the US and Saudi’s/OPEC in 1973 (courtesy of genocidal CFR/Trilateralist US Sec. State Kissinger). That arrangement mandates that Saudi/OPEC oil be sold only in Dollars, with oil profits recycled into the western banking system (both on Wall Street and in W. European banks that participate in the EuroDollar trade), and in return the west guarantees the survival of the Wahabbi House of al Saud and other salafist autocratic monarchs in the Persian Gulf. They return the favor by sending hundreds of thousands of Wahabbi salafist lunatics to fight as proxy armies in our wars of aggression in the middle east and central Asia.
The PetroDollar regime is what permits the US to flippantly ignore decades of both massive trade deficits and budget deficits, because foreign nations are compelled by the PetroDollar regime to maintain US T Bills to purchase energy products, and likewise settle other international trade transactions, regardless of the fact that US Dollars / Federal Reserve Notes are, since 1972, technically un-backed fiat currency.
Anyone who poses a risk to the dollar’s status as the world’s reserve currency, and/or the PetroDollar regime, such as Iraq’s Saddam Hussein (the 1990’s UN approved “Food for Oil Program”) , Libya’s Khadafy (and his planned gold backed dinar), Iran & Venezuela (refusing to accept $USD in trade for oil), and now Russia and China, are deemed existential threats to the western financial wizards, propagandistically labeled as “terrorists”, purveyors of WMD’s, murderers of their own civilians with occasional gas attacks, meddler’s in elections, and/or trade manipulators, and thereafter subject to being visited by salafist terrorists, sanctions or trade wars, and eventually and US/UK/NATO armed forces.
I mention this only to point out that the quote is only half correct, and respectfully suggest that any mention of the privately owned Federal Reserve Bank’s unbacked fiat currency, i.e. the US Dollar, be coupled with reference to the PetroDollar regime, which, while only the unofficial backing of the fiat dollar, is so essential to the operation of the western (AngoAmericanZionist) financial system that our ruling elites are willing to destroy entire nations (killing millions in the process) and risk WW3 to protect.
It is really scary.
The US turned into bully completely controlled by Rothschild Zionist Crime cabal and was looted of all gold.
Kissinger got into our Government. Then Nixon Shock and Creation of Petro dollar set the stage for the middle East wars for Greater Israel.
It has been a royal fleecing from the inside.
I don’t know about preparing for “the perfect storm”, but Russia is certainly following policy changes that both reinforce her independence and limit the damage her adversaries can do to her.
They have also greatly stepped up the pace of this work since the zionazi quisling trump was selected as israel’s colonial satraps in the usa. I wonder why…
When the “folkshow pretenders” will ask for a russian Tzar gold to be return from London and New York?
Russian so called gevernment officials are bunch of poltron figures that Owners move for a cheap money on a chessboard. Missery.
Refined Oil Exports by Country June 3, 2018
Those countries that posted declines in the international sale of refined petroleum oils were led by: India (down -64%), Belgium (down -47.6%), Russia (down -46.8%), Netherlands (down -42.1%) and Canada (down -38.6%).
With Gold reserves as of November 2017, 1828.6 (in metric tons), and a decline in the international sale of refined petroleum oils down -46.8%, it is imperative for Russia to be Prepared for a “Perfect Storm” in the Global Economy. Hope for the best, but prepare for the Worst.
I would re-cast Russia’s preparations, as noted in this article:
When Greece’s ‘rebellious’ political party Syriza threatened to ‘haircut’ Western (DeutscheBank) loans, Greek economist Yanis Varoufakis noted that the nation could not succeed in facing-down the banksters without an in-place currency alternative to the Euro and an in-place financial-processing system indigenous to Greece. And so it turned out. The banksters were able to cut off funds, thwart transactions, and generally bully/terrify the public into submission…
Russia’s ‘preparations’ could be seen within the above lens. The article sees these preparations as ‘defensive’; weathering an outside storm. Alternatively, it could easily be that Russian leaders learned from Greece and Varoufakis. They are preparing for an ‘offensive’; a preparatory stance to changing their financial system.
The current Russian financial system was put in place by western capitalists during the ‘turbulent years’. Some have noted that this system might be more beholden to western bankster interests than the good of the Russian people. If so, any fundamental changes to this system would be expected to be ‘vigorously’ pushed-back against by the banksters. Hence, the need for the two in-place systems mentioned by Varoufakis.
In my eyes, Russia is slowly and thoughtfully preparing for an ‘offensive’ to take back its financial sovereignty, whatever the exact details may turn out to be…
Russia has been exploring ways to de-dollarise for quite a while.
China, possibly even longer.
“China has clearly been prepping for a considerable crisis in the dollar or in the world’s economic stability as shown in its sudden and aggressive stockpiling of gold reserves the past decade. Only recently surpassed by Russia in purchases, China is one of the most aggressive national buyers of gold. An expanding gold stockpile would be an effective hedge against a collapsing dollar market.
If the dollar loses its world reserve status, nations like China and Russia are placed well to mitigate the damages”
And the yuan is quietly increasing it’s presence in international usage
“The willingness of overseas investors to hold yuan-denominated assets is rising fast and the authorities plan to further increase the Chinese currency’s flexibility, China’s foreign exchange regulator Pan Gongsheng said on Thursday”
Countries such as Iran, Pakistan, Venezuela, India and others are also exploring ways of trading outside the dollar. China, the worlds biggest oil consumer is also encouraging it’s suppliers to accept petroyuan the advantage over the dollar being that they can convert these yuan into real gold. Analysts have suggested that if Saudi Arabia agrees to accept petroyuan for it’s oil then the other Gulf oil exporters will rapidly follow suit and the petrodollar will be dead pretty soon thereafter. China is believed to be considering buying a share in Saudi Aramco when the IPO comes up to bring this about.
The dollar is backed by nothing except military force but as it becomes increasingly obvious that the US military is quite unable to enforce US diktat, countries will surely feel more and more confident about defying the world bully and out of sheer self interest look to the yuan or alternative methods of payment eg crypto as a healthy alternative to the utterly toxic US dollar.
Surely, also as countries move away from the dollar the flood of Treasuries coming back to the US will rapidly reduce it’s value so ultimately everyone will want “out” before their holdings become worthless. China must be well aware of this and not want to be left holding a trillion dollars worth of paper rubbish. I am sure they are.
For those of us who live in the west though, life could become very difficult or even impossible.
Truth is – we just do not know how bad it will get or what the “trigger” for the collapse will be.
Very interesting post ; I believe that the ‘Trigger’ is going to be Iran….
“We’re no longer participating in a free market economy. And we’re no longer using sound money. Asset’s prices move up and down at the whim of the Federal Reserve.
It’s a sad fact that Washington now runs our economy and our monetary system.
By making trillions of dollars of credit available, it is conducting the largest monetary experiment in American History. Despite what the politicians say, they have no idea how it will all turn out.
I hope you seek to neutralize the threats our dangerous monetary system has created. What you do will determine the fate of your family’s financial future.” Quote By Dr. Ron Paul.
Source the Book – AMERICA 2020 THE SURVIVAL BLUEPRINT.
Considering the anti Russian hysteria in the U.S., it is downright dangerous for them to keep money here as it could easily be stolen, or “frozen”.
Thanks for bringing the article to this place, where I can read it.
The Russian leadership continues down one of the few viable approaches to mitigating the impending implosion of the empire, very pragmatic.
There is one thing in the article, which may bite back, in time,
Isn’t it so, that by these “tool” the empire’s financial system has been [negative sum gain] gamed, by the gamers?
Thereby undermine the entire system, upon which the empire has become dependent, the bogus financial system, which is actually a Ponzie scheme.
I understand that to compete with the empire’s system, one must appeal, in such a way, so as to woo organizations, even so large and complex as nations-states, to, join your club?
But in so doing, is it not laying down the parasite spores for future bloom, and infestation?
I’d have thought they might do it a bit better than that.
Very excellent preparations! Best of luck!
The picture in this article should be voted Picture of the Year.
As long as Chinese and European companies have not developed alternate markets for their products it is not in their interest to see a financial collapse in US. For example when threatened by President Trump with a 25% tax on their exported vehicles Germany immediately wanted to make a deal. If US declared bankruptcy tomorrow would the Chinese and Europeans bail the US out in order to protect their markets?