Putin Plays A Golden Card

77
Tue, Apr 1, 2014 - 9:32pm

A rather significant development is soon to take place in the ongoing Ukrainian Crisis and I must admit that, until late Monday, I was completely unaware of it. Thanks to this wise and industrious community, however, we now know of this next escalation.

First of all, many thanks to those who posted and/or emailed this link: https://en.itar-tass.com/economy/725832 Please take the time to read this roughly-translated story. Go ahead. Do it right now. I'll wait...

So, what do we have here? Is this "no big deal"? Is that the reason you haven't seen or heard of this story before now?

Nope. This is a test case, a trial balloon and a warning shot...all rolled into one. This is Vlad, thumbing his nose at Woody and The West. This is Vlad, flipping the golden bird at those who foolishly think that they control the future.

But you need more background. What is Bank Roosiya? Based in St. Petersburg, it is technically the 15th-largest bank in Russia. Occasionally, it is also referred to as "The Kremlin's Bank" and the bank was the only financial institution "frozen out of the dollar" by the sanctions put in place by the US Congress and Woody last week. Here are a couple of "mainstream" stories from the past few days:

https://www.theguardian.com/world/2014/mar/20/crimea-crisis-kremlin-bank...
https://www.reuters.com/article/2014/03/28/ukraine-crisis-sanctions-bank...
https://www.bloomberg.com/news/2014-03-20/bank-rossiya-becomes-first-rus...

Hmmm. But now check out this link from RT, dated March 21: https://rt.com/news/putin-president-sanctions-bank-305/ Your money paragraphs have been conveniently c&pd below for you:

Putin also commented on the latest sanction of the US authorities that concerned Russia’s Rossiya Bank, to which international payment systems Visa and MasterCard stopped serving clients on Friday.

The Russian president said he will get his salary via the sanctioned bank.

“I’ve already said that I was going to open an account in this bank, more than that I asked for my salary to be transferred to this account,” he said.

Putin added that Russian authorities should provide any possible support for the clients of the blocked Rossiya Bank, as this “finance establishment has nothing to do with Ukraine crisis.”

“The clients of the bank must be taken under our protection. We also should make sure that neither clients nor the bank will sustain any negative outcome from this situation,” he added.

So, in light of this, what did Vlad do next? He has allowed Bank Roosiya to issue bank notes that are fully convertible into any foreign currency, including gold.

From the Tass link of Sunday, note this section:

"The Golden Symbol of Russian Rouble installation in front of the bank’s office in Perevedensky pereulok in Moscow will symbolize the rouble’s stability and its backing by the country’s gold reserves, the action’s organizers explained to Itar-Tass."

And then note that the article continues:

"The bank Rossiya’s decision to give up foreign currency and start working exclusively with the Russian rouble is a step forward towards converting the Russian economy and banking sector to national currency, Andrei Kostin, the VTB bank president, said in an interview with the Russia 24 TV news channel commenting the decision of bank Rossiya to operate only in the domestic market and exclusively with the Russian rouble."

The article concludes with this:

"We have been moving towards wider use of the Russian rouble as the currency of settlement for a long time...said Andrei Kostin, the VTB bank president...The VTB chief said that Russia should sell domestic products - from weapons to gas and oil - abroad for roubles and buy foreign goods also for roubles...“Only then are we going to use the advantages of the rouble being a foreign currency in full measure,” Kostin said, adding that AB Rossiya would form a vital part of the Russian banking system and would closely cooperate with other Russian banks, which would also expand the rouble’s use in settlements...“A new imperative motive has appeared for that now,” the VTB chief stressed.

As I stated above, this is just a start...a warning shot, if you will. This does not mean that Russia will institute a gold-backed and convertible ruble next week. What this does mean, however, is this:

All that you've read from me, Sinclair, Willie, Turk, Rickards, Butler and others is TRUE. This is going to happen. Eventually, the dollar-creditor nations will rise up. Perhaps it will be during/after the next Major Financial Crisis. Perhaps it will be in response to these and future, ridiculous and unnecessary sanctions. Perhaps it will simply be "time". Regardless...this is NOT a matter of IF, it is simply a matter of WHEN. This Russian trial balloon...this "flipping of the golden bird"...shoud prove this point to you unequivocally:

The next global financial system will not be based upon the endless printing of paper currency, backed by a sole superpower hegemon. It will, instead, be backed with gold.

China, Russia, India, Brazil, South Africa and all of the creditor nations know that this is an eventuality. In this link, a western journalist rolls out all the tried-and-true rationale for "BRICS Supporting Russia":

https://thediplomat.com/2014/03/why-did-brics-back-russia-on-crimea/

But the Status Quotians fail to comprehend the real reason these countries are banding together. They KNOW that the days of dollar supremacy and reserve currency status are numbered and they all want to be allied on the same path for the future. Putin's latest move to allow Bank Roosiya to issue currency backed with gold should be viewed by all as a clear sign and/or signal of what lies ahead.

TF

About the Author

Founder
tfmetalsreport [at] gmail [dot] com ()

Subscribe or login to read all comments.

Become member and subscribe to Turd's Vault

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 5/10

5/11 10:00 ET JOLTS job openings
5/11 12:00 ET Goon Brainard
5/12 8:30 ET Consumer Price Index
5/12 9:00 ET Goon Chlamydia
5/12 2:00 ET Federal Budget
5/13 8:30 ET Producer Price Index
5/14 8:30 ET Retail Sales
5/14 8:30 ET Import Price Index
5/14 9:15 ET Cap Ute & Ind Prod
5/14 10:00 ET Consumer Sentiment

Recent Comments

Forum Discussion

by 11IMIX, May 10, 2021 - 2:52pm
by Sovereign, May 10, 2021 - 1:51pm
by Green Lantern, May 10, 2021 - 5:49am
by Green Lantern, May 9, 2021 - 5:55pm