This is interesting…….
Russia sets fixed gold price as it restarts official bullion purchases
Opinion: Russia just made a case for owning gold — and nobody noticed
Good for the price of gold! Russia anchors rouble to gold
So, as I read this, it seems that Russian oil will be paid for either in gold or in rubles, rather than dollars, since the rate of exchange is such that you’ll pay less for the oil in gold or rubles than you would in dollars. Or, looking at it from a different angle, the dollar is worth less than rubles and gold.
I need to read more about this…
Parr of the plant go away from the dollar as the reserve currency
Look for others to do the same
How did I go broke? Slowly then suddenly
Hemmingway in the Sun also rises.
Our waterfall event for the US Dollar is close enough to hear the waterfall.
If we had real leadership in the FED and US Government, we wouldn’t be in a Proxy War to prevent Russia from decoupling with the dollar and maybe gain some distance from the waterfall event of national bankruptcy.
But all we got is a Chinese owned sock puppet whose handlers want American “Fundamentally Transformed” aka Change you can step in.
Trade those Fiat Dollars beyond what you think you need for taxes and such into something that will hold value.
I think you mean watershed.
I think waterfall is more descriptive of what’s gonna happen. And I plan to steal the “Change you can step in” comment!
Made to order:
https://i.imgur.com/jpHR9Hr.png
1971: Nixon and The End of the “Gold Standard”
I was living in Germany, and we saw the Dollar go from 4 deutsche mark to the dollar to under 2.
I feel that this will have a larger impact to the dollar in the not too distant future.
Commander Zero, Watershed a critical moment in history? A Waterfall where an idiot without a paddle goes over to his-her-it’s doom?
Not much different in my eyes. The meme of a canoe full of arguers about folks having their tinfoil hat on too tight going over the waterfall seems apt.
Either way when the Saudi’s trade in their Patriot Missiles for S-400 and the dollar is replaced with yuan, gold and rubles EVERYTHING you and I buy in Walmart (as an example) will DOUBLE if you can get it at all.
All those stray trillions of US Dollars Once used to pay for Oil overseas will charge back HOME and thus, we will see hyperinflation.
IF we had LEADERSHIP, we would go bankrupt, pull all our overseas forces home and try to rebuild our Government and Economics in the manner more in line with what our Forefathers intended of this Republic.
“Peace, commerce, and honest friendship with all nations; entangling alliances with none.” Thomas Jefferson
I’ve already accepted my retirement check (IRA’s etc.) will be less than half its current value in gasoline-bread and so on. My taxes no doubt will Double as the Gov.com ALWAYS gets theirs.
Must have coin of the realm or the Bankers will sell your home-farm on the courthouse steps with the support of the Sheriffs just like in the Great Depression.
Planting more beans and potatoes (almost a complete protein) that plus a few ounces of meat a week (or two eggs) is a survival diet worth building upon.
Obtuse question, but,…2 eggs a day or 2 eggs a week in this particular dietary scenario?
Unintended consequences.
“But our intentions were GOOD!!11!”
Pointless, unless they’re willing to exchange “A” for “B”.
They aren’t, so this is just smoke-and-mirrors.
Poopypants making us energy importers just feeds the Beast, as when we were independent, the price they received was low (which was killing them), and the surplus from the rest of the world flowed to free countries, taking away their Euro monopoly.
Fake elections have real consequences.
When life gives you lemons, make lemonade.
Energy ETF’s, like the SPDR XLE (paid 58% over the past year) seem like a good buy if the energy sector is going to go crazy. Caveat Emptor.
Only problem I see with this is tens of billions of naked shorts are dropped on the “markets” and no one bats a eye and futures/commodity contracts can’t be enforced to “good delivery”. Would love to buy a position and see the armored car pull up to unload at below spot. The other is the Russians play some hard ball, Beirut a LNG terminal after the gas stops and watch europe crash,set up S-500 in Mexico and Cuba and declare a No-Fly zone around North America and ask Xi how much US farmland he wants to foreclose on to cover the US bonds that become worthless.
If the bonds are worthless, than by definition there is no collateral backing them. So, no land for China, but as a courtesy we can provide some sand for them to go pound!!!
Yeah, not so much.
They can have all the federal buildings.
That’s about it.
US bonds don’t entitle them to a square foot of other people’s farmland. (You could look it up.)
Most other “federal” land will be annexed back to the states from which it was stolen (especially west of the Mississippi, where fedgov helped themselves to state lands at a voluminous rate) about 0.2 seconds after fedgov ceases to exist, so they’d be better off taking the offer of the sand, loading it up, and heading back home to ChiComia.
If not, we can do the math, and see how many times 1 billion rounds go into 1 billion Chinamen, and see if there’s anything left over after doing long division.
The dollar is only worth less in this scenario because it is not accepted, in other words its value went to zero…but only when purchasing Russian oil. The US dollar is no different than Bitcoin, it has no value unless a bunch of people agree to accept is as a form of payment…gold and silver are the same minus a few industrial uses. Its the old argument of how if someone is hungry they don’t want a shiny piece of metal, in that case like the Russian oil-US Dollar example, gold would be worthless. Its all contextual.
Sorry Vertas and Aseop the only value of a fiat dollar or Ruble or Bitcoin is what you can buy with it.
America exports by value measurement far more T-bills and thus our debt than all other exports combined. The Petrodollar is the basis of the economy of America. Once that is lost FAITH in the value of the dollar is done.
FAITH in the value of fiat currency ONCE lost creates a rush to Spend it before everyone else does. OVERSEAS T-Bills are cashed in the USA. Thus creating a feedback cycle where you get less per currency unit and even more frantic spending until Hyperinflation destroys the economy.
Got Food? Got TRUSTED friends? Got developed gardens and seeds? Got skills and tools? THOSE are what gets you and yours through the Greater Depression coming soon to a neighborhood near you.
I said nothing different:
It’s an empty gesture, on behalf of a worthless currency.
Rubles are finely-engraved toilet paper, and always will be.
Machts nix.
A pound of rubles for a dollar?
How soon can you deliver? Ruble recovered 100% from drop and likely going much higher. Goldman made a boatload on buying a few weeks ago.
How many dollars would you like? And you’ll send me a pounds weight of ruble notes for each dollar?
putin has been buying gold for decades. they have the largest reserve at estimated 2200 TONS. next is china with half that. a) putin played us b) davos/soros played us both. either way we been played. either way, we lose. bohica. my question though is what is the gain from destroying the west and russia? china and india? neither can survive on their own without western money flowing in. destroy the world, then what? how does soros et al expect to survive then? or is that it, they want to end human habitation on earth?
2200 tons of gold = fart in a hurricane.
That means they can back 140.8B dollars of hard cash.
Anything else is toilet paper.
The annual Russian budget is 16 TRILLION rubles, i.e $233Billion, so they’re already printing toilet paper at the rate of $93B/yr, and 80% of their own GDP is fairy dust and ghost turds, and that’s just internally.
To back the ruble with gold, they’d need 15,000 tons of gold.
Which is about half the entire world’s gold supply, inclusive.
And their economy is barely 7% of that of the US.
They’re not backing the ruble with gold, nor tying one to the other.
It’s simply not possible for anyone to do, without massive deflation.
How much deflation?
Divide everything by 53 to get an idea.
You’ve got $10,000 in savings? Nope. It’s now $188.68.
A salary of $50K = $18.49/wk., gross, pre-tax.
$6/gal gasoline = 11.3¢/gal.
Your hourly pay rate = 46¢/hr.
Minimum wage = 28¢/hr.
Do that first, and we can put the entire world on sound currency.
And at that point, an ounce of gold would be worth $38.
About two weeks of take home, or over a month’s full-time work for the guy at McDonald’s. So, never, for him.
A new car would cost you $1K or so.
And the average salary in Zimbabwe would be about $4.25.
A month.
That’s real currency.
Bill Gates would be a billionaire, but with “only” 4 or so.
Trump would have about $100mil.
A ticket to a Broadway show or rock concert would be between 50¢ and $2.
A Glock 19 would be going for $9.50. Half a week’s pay for the middle class.
Steak dinner? 50¢.
Big Mac? 10¢. Or, 700 New Rubles. (Which is 0.012 dollars, since ever).
So no, Russia isn’t backing the ruble with gold.
Simply not possible, unless everyone else goes along.
And they won’t.
i didn’t say they were backing the ruble with gold. i said putin has more than anybody at this time and they can take gold for oil/gas/coal that everybody but us needs. this will crash the petrodollar and us with it.
2200 tons is about half of what is supposed to be in the US Bullion Depository at Ft. Knox (4580 tonnes). The US also has (supposedly) gold reserves in the Federal Reserve vaults in NYC, and other nations gold is stored there, as well.
Not an inconsequential amount for Russia, but not ‘a lot’.
Exactly. This is Texas trying to get paid in gold for Confederate money. Not gonna happen.
Russia demands inflated-value rubles (or gold) for oil?
Okay.
No one buys their oil.
Arabs/OPEC still take dollars?
Russian energy market crashes.
QED
“I’m only going to sell you my Big Mac for solid platinum!”
Burger King stock soars, Mickey D’s goes bankrupt.
This is textbook Econ 101 stuff.
Russia has no monopoly on anything they’re selling, so their demands, and what medium they’ll accept, is for suckers. You want to trade your gold for their oil? Go on ahead.
Now they have your gold this year, and next year, you still need oil. Now what?
Maybe folks have heard about what happened when Jack paid in cow for someone’s magic beans.
This is that. Without any giant.
And as for “who needs us”?
That would be all those other countries sitting on dollars, and dollar-denominated T-bonds, in metric f**ktons.
They drop the dollar, they slit their own throats.
China goes bankrupt overnight. For openers.
So we’ve descended into explaining Cleavon Little pulling a gun on himself in Blazing Saddles as a sound strategy.
Unless Russia discovers another 416M ounces of fine gold tomorrow, this is all fairytales and vaporware.
Have you taken a look over at:
https://market-ticker.org/akcs-www?post=245537
About how well and truly screwed we are with our money printing and sanctions?
Nothing like spending money you don’t have and them showing the world just how TRUSTWORTHY we are by stealing Russia’s reserves, just like we did to Venezuela’s gold and so on. HEY Germany did you ever get ALL Your Gold Back?
Riverrider why do you think Russia, India and China really NEEDS us? Please expand on your idea here. Our money is an endless flow without backing and our Trustworthiness (Creditworthiness) is nil.
Please explain this as I really want to know your thoughts and facts behind them.
Money is what 2 people agree that it is. Period.
Pretty rocks, minerals(anyone say salt?), printed paper of various origins, special designations inside a computer, whatever.
Gold is certainly the longest serving and most ingrained in the human psyche. But that doesnt guarantee that it really is money more than anything else.
What you better watch out for is the IMF Special Drawing Rights. The ‘elites’ are working towards making that THE global universal currency, displacing the dollar. And they are succeeding. Probably wont displace the dollar in my lifetime, but i think its something for you younger folks to watch out for.
As to Saudi oil not being priced in dollars, some of you need to bone up on your history. hint: its another tit-4-tat/
Aesop does the math.
https://raconteurreport.blogspot.com/2022/03/more-napkin-math.html
Math always has to establish the denominator.
Any Large Ginormous Number like America’s stack of mostly electronic Fiat Money has value as long as it’s not zero.
28 Trillion X Zero = Zero
Once the herd starts charging to SPEND those overseas T-bills on anything (MAYBE American Farms?) they come HOME to America. When the rest of the Herd sees that THEIR T-Bills will NOT buy as much as the first movers well…
China BTW is SPENDING their T-Bill pile for FOOD RIGHT NOW. They are in America right now buying trainloads of wheat, soy and such. Barrons source.
The Roman Empire didn’t fall to the Visigoths, they were but the carrion birds feeding from the corpse. They fell BECAUSE the Roman Silver Denari had been DEBASED by Money Printing by recalling old 90% denarii and issuing MOAR Less Silver Content Denari (Wash and Repeat) until by the time of the Visigoths the “Silver Denari” was a copper coin with silver glaze on it.
Buy Food, if China is spending their US Dollars for it maybe YOU should too?