Grandmaster Putin’s Western trap or why Russia sells energy for physical gold?
So, after realizing their failure in Ukraine, the West, led by the United States, set a goal to destroy the Russian economy by lowering the price of oil and gas, respectively, as the main budget-forming sources of Russia's export earnings and the main sources of replenishing Russian gold reserves. It should be noted here that the main failure of the West in Ukraine is not at all military or political. And in the actual refusal of Putin to finance this western project of Ukraine, at the expense of the budget of the Russian Federation. What makes this project of the West a priori non-viable, in the near and inevitable future.
Last time, under Reagan, similar actions by the West to lower oil prices led to the success and collapse of the USSR. But the story does not repeat. This time, for the West, everything turns out differently. What Putin answered to the West seems to be both chess and judo at the same time. Where the forces expended by the enemy to attack, is used against him, but with minimal expenditure of his own forces and means of the defender. Putin’s real policy is not public. Therefore, the real policy of Putin, to a greater extent, is always directed not so much at the effect as at efficiency.
Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.
However strange it may seem, right now, Putin is selling Russian oil and gas, only for physical gold.
Putin does not shout about it to the whole world in the style of intrusive advertising. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all those USD from the sale of oil and gas for physical gold!
To understand this, it is enough to look at the dynamics of the growth of gold in the structure of the gold reserves of Russia and compare these data with the currency earnings of the Russian Federation from the sale of oil and gas over the same period.
Moreover, in the third quarter, Russia's purchases of physical gold were at unprecedentedly high, record levels. In the third quarter of 2018, Russia bought an incredible amount of gold. This is more than purchased according to official data, Central Banks of all countries of the world, taken together!
Not so long ago, British scientists successfully came to the same conclusion, which, a few years ago, was published in the Conclusion of the US Geological Survey. Namely: Europe will not be able to survive without energy supplies from Russia. What is translated from English to any other language in the world means: “The world cannot survive if we deduct supplies of oil and gas from Russia from the global balance of energy supplies”
Thus, the entire Western world, built on the hegemony of the petrodollar, was in a catastrophic situation. In which, the West cannot survive without oil and gas supplies from Russia, and Russia is now ready to sell its oil and gas to the West, only in exchange for physical gold! The piquancy of the current situation in Putin’s party is that the mechanism for selling Russian energy to the West only for gold is now working, regardless of whether the West agrees to pay for Russian oil and gas, with its artificially cheap gold, or not.
Because Russia, having at its disposal regular receipts of dollars, from the sale of oil and gas, in any case will be able to buy gold for them. At current gold prices, suppressed by hook or by crook, by the West itself.
That is, at those prices of gold that were artificially and carefully lowered by the Fed and ESF by several times, against the artificially inflated with the help of market manipulations, the purchasing power of the US dollar. Interesting fact: The suppression of gold prices by a special section of the US Government - ESF (Exchange Stabilization Fund), in order to stabilize the US dollar, was elevated to the United States in the rank of the Law.
In the financial world, the postulate that gold is an antidollar is accepted as an axiom.
- In 1971, US President Richard Nixon, closed the "golden window", stopping the free exchange of dollars for gold, guaranteed by the US earlier, in 1944, in Bretton Wood.
- In 2014, Russian President Vladimir Putin opened this “golden window”, not paying attention to what they think and say about this in Washington.
Right now, the West is spending a lot of its forces and funds to suppress the prices of gold and oil. So that, on the one hand, distort the existing economic reality, in favor of the US dollar. On the other hand, in order to destroy the economy of Russia, which refuses to play the role of a submissive vassal of the West.
Right now, assets such as gold and oil look proportionally weakened and overvalued against the US dollar. As a result of colossal economic efforts on the part of the West.
And right now, Putin is selling Russian energy resources, in exchange for these artificially strengthened by the efforts of the West, US dollars. For which, he immediately buys gold - artificially humiliated against the US dollar, through the efforts of the West itself!
Another interesting moment in Putin’s party is Russian uranium. Due to the supply of which, every sixth light bulb is currently operating in the USA. And which Russia is selling the US for dollars too.
Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with US dollars, the purchasing power of which is artificially inflated against oil and gold, through the efforts of the West itself. But Putin uses these US dollars only to withdraw his physical gold in exchange for them from the West, at the artificially lowered by the West itself gold prices expressed in US dollars.
This truly brilliant economic combination of Putin puts the West, led by the United States, in the position of a snake, aggressively and devoutly devouring its own tail.
The idea of this economic gold trap for the West, most likely, originally did not belong to Putin himself. Most likely, this was the idea of Putin’s Economic Advisor, Academician Glazyev. Otherwise, why, it would seem, the state official Glazyev, who was not involved in the business, along with many Russian businessmen, was personally included by Washington in the sanctions lists of the West? The idea of the economist Academician Glazyev, Putin brilliantly realized, having previously obtained full support from his colleague from China, Xi Jinping.
Of particular interest in this context is the November statement by the First Deputy Chairman of the Central Bank of the Russian Federation, Xenia Yudaeva. Which emphasized that the Central Bank of the Russian Federation, can use gold from the reserves, for payment of import, - if it is necessary. Obviously, in the conditions of sanctions from the Western world, this statement is addressed to the BRICS countries and, above all, to China. For China, Russia's readiness to pay for goods with western gold is very much the way it is. And that's why: as stated in one of the previous materials,
China has recently announced that it is ceasing to increase its gold reserves, denominated in US dollars. If we take into account the ever-growing trade balance deficit between the US and China (the current difference is five times in favor of China), this statement translated from a financial language reads as follows: "China stops selling its goods for dollars." The world's media, this is the grandest event in the latest monetary history, chose not to notice. And the question is not at all that China literally refuses to sell their goods for US dollars. China, of course, will still accept US dollars as an intermediate means of payment for its goods. But by accepting dollars, China will immediately get rid of them and replace the dollars in the structure of its gold reserves with something else. Otherwise, it makes no sense, the statement made by the monetary authorities of the PRC: “We stop building up our gold reserves, denominated in US dollars. " That is, China will no longer buy for the proceeds from trade with any countries dollars, treasures - US government bonds, as they did it all the time before.
Thus, China will replace all the dollars that it will receive for its goods not only from the United States, but also in general from any countries of the world, for something else - in order “not to increase its gold reserves denominated in US dollars”. And here, the most interesting question arises: what exactly will China replace all of its dollars from trade? What currency or asset? Analysis of the current monetary policy of the PRC shows that, most likely, the dollars coming from trade, or a significant part of them, China will quietly replace and de facto replace with Gold.
In this aspect, the solitaire of Russian-Chinese relations is extremely successful for both Moscow and Beijing. Russia buys goods from China directly for gold, at its current prices. And China, buys for gold at its current prices, Russian energy. At this Russian-Chinese celebration of life, there is a place for everything: Chinese goods, Russian energy resources, and gold as a means of mutual settlements. There is no place for this celebration of life, only one who wishes - the US dollar. And this is not surprising. Because the US dollar is neither a Chinese product, nor a Russian energy resource. It is only an interim financial instrument of mutual settlements - an unnecessary intermediary. And it is accepted to exclude unnecessary intermediaries from the scheme of interaction of two independent business partners.
It should be noted separately that the world market for physical gold is negligible in relation to the world market for physical supply of oil. And even more so, the world market for physical gold is microscopic, relative to the totality of the world markets for the physical supply of oil, gas, uranium and goods.
The emphasis on the phrase “physical gold” is made because in exchange for its physical, rather than paper, energy resources, Russia now withdraws gold from the West, only in the form of its physical, not paper, supply. The same thing makes China, withdrawing from the West at current artificially low prices at times, it is real physical gold - as a means of paying for physical supplies to the West, its real goods.
Hope of the West that Russia and China will accept as payment for their energy resources and goods of various kinds of Shitcoin or so-called "Paper gold", too, did not materialize. Russia and China, as a final means of payment, are only interested in gold and only as a physical metal.
For reference: Turnover in the paper gold market, only in the form of gold futures, is estimated at about $ 360 billion per month. But for only $ 280 million a month, a physical supply of gold is made. What constitutes at the auction of paper gold versus physical gold, the ratio is 1000 to 1.
By applying the mechanism of actively withdrawing from the market one financial asset artificially lowered by the West (gold), in exchange for another financial asset artificially inflated by the West (US dollars), Putin thereby included a countdown for the global hegemony of the petrodollar. Thus, Putin confounded the West in the absence of any positive economic outlook. The West can spend as much as it wants on the artificial increase in the purchasing power of the dollar, the decline in oil prices and the artificial decrease in the purchasing power of gold. The problem of the West is only that the reserves of physical gold at the disposal of the West are not unlimited. Therefore, the more the West devalues oil and gold against the US dollar, the more rapidly it loses the declining Gold, from its far from infinite reserves. In this economic combination, brilliantly played by Putin, physical gold from the reserves of the West is rapidly flowing to Russia, China, Brazil, Kazakhstan and India - to the BRICS countries. With such a rate of decline in reserves of physical gold as it is now, the West simply does not have time to do anything against Putin’s Russia, until the collapse of the entire Western construction of the petrodollar world. In chess, the situation in which Putin put the West, led by the United States, is called "Time Tote".
The Western world has never faced such economic events and phenomena that are happening right now. The USSR, in the face of falling oil prices, was rapidly selling gold. Russia, in the face of falling oil prices, is rapidly buying gold. Thus, Russia creates a real threat to the existence of the American model of petrodollar world domination.
The main principle of the petro-dollar world model, which allows Western countries led by the United States to live at the expense of labor and resources of other countries and peoples, is based on the role of the national currency of the United States (world currency system). The role of the US dollar in MIF is that it is the ultimate means of payment. This means that the national currency of the United States in the structure of the AIM, is the final asset of accumulation, which does not make sense to change it to any other asset. What the BRICS countries are now doing, led by Russia and China, is actually changing the role and status of the US dollar in the global monetary system. From the final means of payment and the asset of accumulation, the national currency of the United States, by joint actions of Moscow and Beijing, is transformed only into a kind of intermediate means of payment. Intended only to in order to exchange this intermediate means of payment, for another and truly final financial asset is gold. Thereby, the US dollar actually loses its role as an ultimate means of payment and an accumulation asset, yielding both of these roles to another generally accepted, denationalized and depoliticized monetary asset — gold.
Traditionally, the West used two ways to eliminate the threats to the hegemony of the petrodollar model of the world and the exorbitant privileges that flow from it to the West.
One of these methods is color revolutions. The second method, which is usually used by the West, if the first method does not work, is military aggression and bombardment.
But in the case of Russia, both of these methods turn out to be either impossible or unacceptable for the West.
Because, firstly, the population of Russia, unlike the population of many other countries, stubbornly does not want to exchange their freedom and the future of their children for Western sausage, which can be obtained right now. This is becoming obvious, according to Putin’s record high ratings, regularly published by leading Western rating agencies. The personal friendship of Washington's Navalny's protege, with Senator McCain, played a very negative role for him and Washington. Having learned about this fact from the media, 98% of the population of Russia now perceive Navalny, exclusively as a vassal of Washington and a traitor to Russia's national interests. Therefore, about any color revolution in Russia, Western professionals, thinking the realities, while not even dream of.
As for the second, traditional for the West method - direct military aggression, then Russia is certainly not Yugoslavia, not Iraq and not Libya. With any non-nuclear military operation against Russia, on the territory of Russia itself, the West, led by the United States, is doomed to a crushing defeat. And the generals at the Pentagon, who exercise the real leadership of the NATO forces, understand this well. Similarly, the nuclear war against Russia is unpromising, including the concept of the so-called. "Preventive disarming nuclear strike". NATO simply does not have the technical ability to deliver such a blow, which could completely disarm Russia's nuclear potential, in all its many manifestations. A retaliatory, massive nuclear retaliation against the enemy or the pool of opponents will be inevitable in this case. And its total capacity will be enough to so that the survivors envy the dead. That is, the exchange of nuclear strikes with a country like Russia is not, in principle, a solution to the emerging problem of the collapse of the petro-dollar world. This is, at best, the final chord and the last point in the history of its existence. In the worst case, this is a nuclear winter and the cessation of the existence of all life on the planet, with the exception of bacteria mutated by radiation.
In the Western economic establishment, they see and well understand the essence of the occurring phenomena.
Leading Western economists are certainly aware of the depth of the tragedy and hopelessness of the situation in which the Western world found itself, having fallen into Putin’s economic golden trap. After all, since the time of the Bretton Woods Agreements, the golden rule is well known to all: " Whoever has the most gold sets the rules . " But about this in the West, everyone is silent. They are silent because no one knows how to find a way out of this situation.
And because if we explain to the western public all the details of the ongoing economic catastrophe, then this public will begin to ask the most terrible questions for the supporters of the petrodollar world.
That will sound like this:
- How long will the West be able to buy oil and gas from Russia, in exchange for physical gold?
“And what will happen to the US petrodollar after the West has run out of physical gold, to pay for Russian oil, gas and uranium, and also to pay for Chinese goods?”
In the West today no one can answer these seemingly simple questions.
https://cont.ws/@severro/1260219