I don’t think everyone has yet caught the significance of Russia announcing they are putting a floor under the price of gold. But, to be clear, Russia just broke the paper gold suppression scheme.
On Friday the Bank of Russia announced:
RUB5000 to the gram at an exchange rate of 100 RUB/USD implies a $1550 per ounce gold price.
For a few days previous to this announcement, which they knew was coming, The West was running around with multiple bits of legislation to try and keep the Russians from selling their gold.
The G7 think the sanctions are hitting so hard that Putin will be forced to sell his gold to evade sanctions to pay for things. They are literally running a script in their heads that is not actually playing out in the real world.
But, whatever, Neocons never met an ugly stick that they didn’t want to use to beat someone over the head with. Too bad all they’re doing is hitting a rubber tire.
Because here’s the gig, Russia won’t be selling any gold. They’re buying it.
These are supposed to be the architects of the global monetary system and you would think they are the ones that understand it the best. But, clearly they do not.
What they think they understand is that they still control the flow of commodities around the world through price suppression schemes on the CRIMEX, LBMA and ICE.
They do not.
Ultimately, ‘outside money’ trumps ‘inside money.’
Austrians, like myself, have always understood that eventually Inside Money [money that exists within the financial system] fails because it is ultimately nothing more than a Ponzi Scheme built on top of Outside Money — money that exists outside the financial system, like commodities and bitcoin.
Money, It’s a Hit!
Let’s start with the basics. Why do we create money? To act as a way to mitigate the time risk between selling what we have and buying what we want. So we sell our labor today to buy gasoline, printer paper or blow jobs tomorrow. In the meantime we hold money.
It is a way to turn thought and personal application of energy and time into a token which can procure for us real goods in the real world.
With that in mind, now think about the current financial system where all inside money is created by first selling a debt instrument to someone willing to hold it for a vig.
Back to the ruble and gold. Because once I lay out the new incentive structure it will be clear as to why the G7 has no friends in this fight anymore.
Davos’ power rests on the ability to create credit and sell it at a positive interest carry to commodity producers. Since base commodity production in any kind of efficient market should be a very low margin enterprise, think 1-4% real annual return, selling them debt to extract oil or gold out of the ground at higher rates than that ultimately sucks all the profit out of the venture.
Free markets when allowed to function properly grind out profit through competitive arbitrage. It is both brutal and the spark of new innovations and efficiencies.
It is the desire for higher profits over baseline that does this.
In base commodities that is difficult, at best, to do. Why? Because they aren’t anything more than a second order good. First order would be the ore or timber harvested. Second order would be the ingot or lumber produced. The higher order the good, the more specialized it is and the higher opportunity for profit through product differentiation on something other than price emerges.
That’s most difficult to do in improving resource extraction because, it follows, most of the major gains in efficiency occurred in the past when the economy was less specialized.
Confusion Over ‘The System’
If the banks are on both sides of the trade setting the price of money, then they ultimately control who wins and who loses while this goes on. And let’s not mince words, it’s them. The profit rolls up to those that produce the highest order goods with the most complex supply chains.
The banks plough the profits from getting interest on the original debt into the very companies producing the higher order goods needed to ensure the lower order goods produce no wealth through the grinding out of profit via arbitrage throughout the supply chain.
Don’t believe me? Ask cattle farmers.
In this respect the current financing of these industries is nothing more than a virtualized version of the colonial economic model of the 15th through 19th centuries.
Instead of using physical men to subjugate the locals through superior weaponry and bribes to get them to extract the mineral wealth which the colonialists take back home, today we use the post-WWII institutions to run that same system through debt issuance for capex and the interest payments (in this case pure economic rent – unearned wealth).
The producer countries of all the mineral wealth in the world are nothing but debt slaves to the money masters in Brussels, City of London and New York. That’s the gig.
Since we’ve reached the point of debt saturation where no more debt can be issued to extract mineral wealth and have the markets believe it could ever be paid back at these real yields, the system has to be reset.
The whole Great Reset is a way to crash the existing system but leave the same colonialists in power legally.
It’s not really more complicated than that.
When you understand that dynamic now you can understand why Russia, in particular, is the vanguard of the Global South’s desire to change the System of the World.
It is also the one country that has the commodity production power to expose the vulnerabilities of this System.
That’s Nice… #GotRubles?
And that’s where pegging the ruble to gold comes in.
The Bank of Russia is now a buyer of gold at 5000 rubles to the gram, or 155,500 rubles to the troy ounce. At a Friday March 25th closing price of RUB96.62 vs. the USD that implies a gold price of $1610 per ounce.
The ruble is now freely strengthening versus the US dollar.
Now, that is not that remarkable on its own.
As I explained on Twitter that day:
- 1: At $1550 per ounce the first order effect here is that is implies a RUB/USD rate of around 75. Incentivizing those holding RUB to continue and those needing them to bid up the price from current levels.
- 2: This creates a positive incentive loop to bring the ruble back to pre-war levels. Then after that market effects take over as ruble demand becomes structural, based on Russia’s trade balance.
- 3: Once that happens and the RUB/USD falls below 75, then the USD price of gold rises structurally draining the paper gold markets and collapsing the financial system based on leveraged/hypothecated gold. Now we’re into the arb. phase @Lukegromen postulated w/ 1000bbls/oz.
So, this scheme incentivizes Russians to hold savings in rubles, because the ruble is undervalued. It also incentivizes foreign traders to hold rubles because the ruble is undervalued relative to an overvalued open gold price.
Clearly currency speculators in Moscow, Shanghai, Singapore, Mumbai and Hong Kong are having a field day with this.
Coupled with Putin demanding ‘unfriendly countries’ paying for their Russian imports with either gold or the ruble, the natural choice is for them to buy rubles until such time as the price of gold and the ruble are in sync on international markets.
The howls of pain from the G-7 and Germany in particular are equal parts pathetic and hilarious as they complain that Putin is in ‘breach of contract’ for demanding a different payment currency for gas other than the euros stipulated in the contract.
Earlier Monday German Economy Minister Robert Habeck said from Berlin that the Kremlin demand for natural gas contracts to be paid in rubles is a “one-sided and clear breach of contracts” – saying the contracts must be honored under prior conditions, according to Bloomberg. “That means that a payment in rubles is not acceptable and we urge the relevant companies not to comply with Putin’s demand,” Habeck said. “Putin’s effort to drive a wedge between us is obvious but you can see that we won’t allow ourselves to be divided and the answer from the G-7 is clear: the contracts will be honored.”
The Kremlin’s quick shooting down of the German economy minister’s comments and the G-7’s stance on the ruble came Monday via a Russian lawmaker to state-run RIA Novosti: “Russian lawmaker Abramov says G7’s refusal to pay in Russian roubles for gas will definitely lead to a halt in supplies.”
Pissed off Russians certainly have a way with words, as a writer, I appreciate this greatly. According to TASS:
Moscow is handling the details of its gas delivery plans to unfriendly countries for payment in rubles, but it won’t engage in charity if Europe refuses to pay in the Russian currency, Kremlin Spokesman Dmitry Peskov told reporters on Monday.
…The Kremlin spokesman remained tight-lipped on what measures Russia might take if Europe refused to pay for gas in rubles, noting that these “issues should be sorted out as they develop.” “But we will definitely not supply gas for free, that’s for sure. It is hardly possible and reasonable to engage in charity in our situation,” he emphasized.
Do you hear that Davos? That’s the sound of the ticking clock.
The Trade’s the Thing…
The reason why this current scheme is already working is that Russia runs a positive trade balance mostly in base commodity exports. Davos doesn’t want them making any money selling those commodities to the world and will continue to put sanctions on to get people to not use rubles.
They are however fighting the invisible hand of Adam Smith’s market. The demand for the ruble will rise above the pre-war exchange rate of around 75:1 vs. the USD.
The price point for gold/ruble implies that exchange rate. Russia will revisit this at the end of Q2. This also implies they expect the ruble/dollar rate to fall to 75 by the end of Q2, if not earlier.
After that if the ruble strengthens beyond that they can adjust the gold buying price.
If the ruble/dollar rate dips below their pegged price, buyers are getting oil at a discount when paying in gold. That will force the CRIMEX and LBMA into a supply shortage situation or they will have to end the expansion of paper gold versus real gold and allow real price discovery to the upside.
If the sanctions are successful in scaring everyone into not using
rubles gold Russian commodities then the exchange rate will stay stubbornly above 75 and the boycotting world will lose competitive advantage versus those willing to brave the US’s ire by getting Russian commodities on the cheap.
As I talked about in previous articles, this sets up the opportunity to end the suppression of the price of gold through rehypothecation of physical gold in the paper markets which is the basis for the entire financial colonization system I described above.
FYI, this same scenario is going to play out in Bitcoin now that Russia has said ‘friendly countries’ can pay for imports with Bitcoin. Has anyone noticed the current rally in the World’s Most Hated Cryptocurrency?
We now have a full gold/bitcoin/ruble (and soon Yuan) interconversion system that completely and utterly cuts out Davos and destroys their colonial debt model while also taking away their power to crash economies through hot money in and out flows.
Because the next step in all of this is for Russia to close their capital account and nationalizing the Bank of Russia making the only source of international rubles be the Russian government.
Internally, the ruble will be de facto backed by gold and can circulate freely.
The War Without End, Ended
The war is over folks. Russia, China and the rest of the Global South have already won. As Luke Gromen replied to me., “in the end there’s nothing they can do about it.”
What scares me is the last thing I tweeted out in that thread:
“Other than widen the war on the ground. That’s the part that scares me.”
And that’s exactly what I expect to happen next, sadly. Biden is in Brussels saying the quiet parts out loud talking with the 82nd Airborne about going into Ukraine and calling for regime change in Moscow.
These people still believe their own bullshit to the point where they think this becomes a war the Russians can’t win.
Putin let the world down easy with this announcement. He could have walked right in and said 8000 rubles to the gram or $2575/oz and that would have broken the markets Friday going into the weekend, by selling his oil and gas at a steep discount.
He waited until after OpEx last Friday and the Fed’s interest rate hike plan was announced.
Timing matters guys.
But, by doing this he has very subtly also supported the Fed and it’s plan to withdraw dollars from Europe, because this will keep the price of gold in check for a little while and keeping the ECB from offsetting spiking Eurobond yields with higher gold reserves on its balance sheet.
Putin on the left arm, Powell on the right and Lagarde is about to get pulled apart at the seams if Davos doesn’t play ball and give up.
The problem there is the unquenchable arrogance of these European elites who simply do not believe they could be bested by the “colonies” in the US and the “dirty slavs” in Russia. I’ve told you for years now that it is their inherent racism that drives their actions.
So, do not be surprised if they empower the neocons in the UK and US to escalate from here. The signs are piling up that the Pentagon and the White House are at odds over the planned escalations. The State and Treasury Depts. are nests of vipers having usurped Congress to wage war without declaring it.
I can only hope that serious and adult people within the Pentagon will finally end this nonsense before we wind up in a war no one wants except a bunch of inbred Eurotrash well past their ‘use-by’ date.
I always say that spooks start civil wars but militaries end them. Let’s hope that we never get to the point of needing any other military than the Russians’ to end this war.
In the meantime, the message is clear, #GotGoldorRubles?
Join my Patreon if you #GoldGold
My subscription to this newsletter is keeping me sane. It was a joy to see you on the Duran. My other go to is M. Armstrong. Thank you so much !
Tom…Should I buy some rubles now?
if you can get them.
How can you get them?
Does staking to RUBN on WAVES accomplish this indirectly?
Tom, do you think Russia and China will become friendly once again to Bitcoin mining now that Russia has announced it will accept Bitcoin payment for oil?
Russia was never hostile to bitcoin mining, if anything the new rules allow for Russia to take some of the market share that China abdicated.
China I don’t see changing their stance, they have energy issues. Russia, on the other hand, can compete with the US and others for cheap mining and wants their banks to use bitcoin to assist in sanctions evasion.
How does one do that through Waves?
Follow up question (answer might be obvious, but asking, anyway):
Now that a country as large and important as Russia is endorsing Bitcoin as a means of sanctions evasion, do you believe this will exert a significant upwards pressure on the price? We’ve seen a price increase the last couple of days, just wondering if this will continue – or at least raise the floor on prices (Bitcoin price being a tad unstable, to say the least…)
The ghouls that rule in Europe are insane and now refusing to buy Russian gas. “We have to sacrifice to fight Putin…” that nasty EU witch, what’s-her-name, says. Who exactly has to sacrifice? No one asked me if I want to. Surely it isn’t those pedophile WEF scum that are going to sacrifice. After all, there’s no sanctions put on luxury goods or diamonds from Russia…yet. So they continue to torture the rest of us instead who aren’t one of them, and which are trapped here and can’t afford to live. Add to that, the past few weeks there have been strikes and protests all over Europe of trucker unions complaining that costs are too high. In Spain, trucks that are still willing to deliver have rocks thrown at them and nails put in the road. Supply chains are crashing. But does the corporate media call these protesters nazis like they did protesters that just wanted their lives back from covid policy…OF COURSE NOT!! These strikes and protests are coordinated, not spontaneous. Prices of necessities are going through the roof, business is grinding to a halt. Seems like all according to plan. One last bit of insanity… Anyone wondering where the covid relief money is going that Spain received from the EU — I’ve been here for eight years, there has been no construction. After all, over-building is what killed Spain’s economy in 2007-08, when the market crashed. Covid came along and killed it more in 2020-21. Now all of the sudden, apartment complexes that no one has demand for are springing up everywhere in the past 8 months. Spain gets EU covid relief money and where does it go, right back to the place that destroyed their economy in 2008. These people couldn’t be more stupid and worthless if they tried. Did the banks just want one more picking of the bones before everything goes strait to hell?
First, as a bonafide recovering member of Economists Anonymous, complete with the highest degree in said “field”, I completely agree with Tom’s analysis….a blind man could see it. Further, based on Russia’s national pastime of chess, I would submit that it was this combination that led to his leaving fiat reserves available for the West to seize, much like sacrificing a board piece of importance with ‘checkmate’ following immediately…..checkmate in this case being the overnight destruction of the petrodollar and US hegemony. Having done so, he will amortize the loss within the next few months and from that point forward the Russian standard of living with explode upward. Checkmate, indeed.
I’ve also lived in Spain some 12 years now, and still find myself flabbergasted by the short-sightedness of the governing class here. Everything, and I mean the entire economy from top to bottom, is based upon rentiers’ debt creation, and now that it has soured, yet again, the cry of the social-communist parties in power is “Europe, save us!”.
The entire economy in the south of Spain consists of three things. 1. Agriculture. 2. Tourism. 3. Owning apartments/terraced houses near the beach (that have usually been owned by families for decades) and waiting for June-August to charge astronomical rents that Brits and Germans are dumb enough to pay. That number 3 earns a Spaniard enough money to live for the entire year, in only 3 months…and they have to do absolutely nothing to earn it. These people don’t work. You look up lazy and irresponsible in the dictionary and there is a picture of a Spaniard, with a dumb expression on their face. There is a reason they had a “dictator” ruling over them since the mid-1970s.
Gotta read it slow to absorb the terrific analysis. As I began to see how the Global South essentially has Globohomo in a giant Catch 22 a lump swelled in my throat. I came to the same conclusion that war escalation might be their only play. Read Kunstler’s updated Clusterfuck Nation piece earlier. It is pretty dark and pairs nicely with this article. Tom’s article is the precise roadmap to answer the “how we get there” aspect.
As you so eloquently put it Tom the inside money has run out of room. Hence the need for the Great Reset. The goal is to wipe it all out and start over; the only thing that doesn’t get reset are the same assholes running things now are the same assholes running the show in the aftermath.
Question for Tom or anyone else; are we still ok with Gold and Silver funds? I ended up buying OUNZ the commenter Willem suggested it. I bought PSLV for silver and the Franco Nevada mining company. I don’t have anything physical except for a shitload of brass and lead. Very comfortable with my stock in that.
All paper gold in any way shape or form — funds or otherwise — in and of itself intrinsically still is what it always was and will forever be, i.e., a promise on paper — and under current circumstances a very weak one at that — possible future value of which in turn further depends on the credibility of the issuer and what you were made to believe regarding your rights on the “investment”.
Skeptics simply need to watch the Anthony Quinn scene in “Lawrence of Arabia”.
Miners stock possible future effective value will depend upon many yet unforeseeable circumstances, but at least with those you may have some hope… unless of course “windfall” taxes come out of nowhere to ruin the party. Just sayin´…
Thanks for the update Bexit. Tom warned us to be wary of GLD Bull Gator but not sure why. I can only assume it is very much like Brexit described. Another commenter Willem recommended OUNZ as you can supposedly get your gold shipped to you for a decent fee. I believe the Silver fund PSLV Sprotty Silver was somewhat similar.
I have abandoned all things tech for now. Though I’m kicking myself in the balls for dumping Nvidia at the present moment. Tried to organize the portfolio by buying stocks that seemed to have a correlation to something tangible. Went with LAND (Gladstone Farmland), DE (Deere), Dollar General, Scots Miracle Grow.
Seems like we are approaching our event horizon. It almost seems inevitable at this point and will be delivered to us in the form of a total economic meltdown or a nuclear one. We talked a lot about the so called vaccines last week. Could be these things were put together just for this very purpose?
If shit starts going south perhaps another bio weapon will be released from a lab. A very dangerous virus would be very similar to Omicron (Covid but different structure). Would be highly transmissible but also highly virulent. Like Omicron this new hypothetical weapon would be all over those who took the shots. Would be very effective at keeping the proles in line.
Me too Luke. Do I or don’t I stay in gold and silver ETFs?
Physical gold only, bro. Every other form of gold is inside money.
p.s. Is Putin buying silver? No? Why are you? The price of gold can potentially move infinitely high, so no other media are necessary. First mover advantage, eh?
Been a long time coming. Thanks Tom. Shout out to fofoa.blogspot.com who has been describing this transition in ridiculous detail since 2008. Cheers bro.
Let me tell you what I did today:
Cashed out savings bonds from when I was a child.
Cashed a check for some other money I had been owed for a long time
Went to a pawn shop and bought 24 karat gold foil.
Now; anyone is free to object to that way of buying gold because they are definitely marking it up, but; when I buy it, it is in my hands immediately. Nobody can fail to ship it because the market explodes before they get around to it and nobody can tell me “sorry but the receipt you have for gold actually isn’t backed by anything, here is your money back in dollars”.
A month ago I bought some coins online because there was still plenty of time. Now that the Ruble is pegged to gold I don’t plan on expecting deliveries to be made.
(All previous statements are anecdotal and are not financial advice)
Something to consider: unless gold is hallmarked by an approved refinery it has to be assayed before it becomes truly negotiable. It has the same status as scrap, which of course has value, but must be assayed and refined at your cost. Alternatively, the offer price spread will allow for the costs.
Is there some reason why you have limited yourself to on-line purchases. I did that one back in 2005 but soon learned a better method was simply to drive to my local gold and silver store and buy various gold coins that way. No shipping. No wait. Negligible paper trail.
Hold on to that currency it’s the best and be careful of the federal goon squads that are confiscating as much as they can by means of fourth amendment rights violations
It’s funny somehow I ended up in those Gold/Silver Trusts OUNZ/PSLV like Tom mentions. I know its best to have the physical stuff but I do not. Like I had previously mentioned if it gets to that point have plenty of brass and lead I can barter. Of course that’s in worst case scenario. Like I said holding the real thing in your hand is no doubt best option I’m sure. Stay away from Paper only the clock is ticking.
What about shares in GLD and SGOL? Are these just air money or are they real shares of Gold held in the vaults as advertised?
Long ago I owned GLD, then PHYS. But after reading their prospectuses closely, I realized that these are really only appropriate for people who want investments that will TRACK the price of gold, and only during “normal” times. But neither of them have “their” gold in a separate place–it’s just part of one or more of the big pools in London and/or NY. That gold is transferred around on paper regularly, and neither of the funds was ever designed for ordinary investors to take delivery.
I thought OUNZ was better, and as I have mentioned before, I have actually been able to take delivery of physical in exchange for shares.. See https://www.merkgold.com/overview.html for more details if you’re interested.
Thanks Willem I followed your lead on OUNZ.
´paper gold´ a.k.a. un-allocated, re-hypotecated, leveraged, encumbered, compromised, re-loaned, fractional, synthetic, swapped, and/or leased gold… usually a part of one of the many possible Digital Derivative Pricing Schemes… thru which no one can know who owns what where (if anything) ? I kid you not…
It’s paper, keep it simple
While the Obiden Junta mumbles, stumbles and gaffes, Putin and the Russians have pushed the paper empire of the West into a corner they can only escape from by widening the war into a nuclear catastrophe. The Junta is incompetence masquerading as omnipotence. With Milley and his cast of woke fools posing as military geniuses civilization ending disaster has never been nearer.
Huh? I did not understand one word of this essay? Could you possibly edit it and produced a dumbed-down version for me and any one else who also doesn’t understand all of this? Like a CliffNotes version?
If you really want to understand this essay, go back to Tom’s podcast here (video at bottom of page):
The Golden Ruble verses The Great Reset!
Here is a synopsis of it that I did in a previous comment:
Q: What is Money?
A: Tokenized Energy.
And that integrates the scientific, economic and social definitions. The ability to store, transfer and do work.
So, if you have the energy (oil) you don’t need the tokens and/or you can insist upon how energy is tokenized. (i.e. a gold backed ruble)
SUPER TANKER ANALOGY
You can imagine that Davos/WEF, Biden and the West are in the bridge (fighting for control of the wheel), believing they run the ship …while, below deck, Russia and China (and all of the other nations that agree with them) are in the process of cutting off the bridge from the engine room and the rudders.
So, Russia has the “oil”, China has the “factories”. And the West has the “tokens” (stock certificates & paper money).
So, what Russia is doing by demanding payment in rubles is saying, “we don’t like your tokens” (USD or EURO). It is not an “oil embargo” but just them reasonably saying: “give us something of value for our oil, as you made your currency valueless to us”. So, in order to get rubles, the West will have to exchange gold for them (there is no point in the Russian Central Bank accepting USD or EUROs as they could have just sold the oil for them in the first place).
Furthermore, Russia said, to make it easier on you, we will discount the ruble when you exchange it for gold. So for example, say oil is going for $150/barrel in Saudi Arabia. If you have $150 usd you can buy 1 barrel of Saudi Oil. Or, you can exchange your $150 usd for gold then use that gold to buy rubles. So, assume the discount rate is 50% you can then buy 2 barrels of Russian oil for that same $150 usd. And what do you think people will do?
I hope that helps… if you got this far, take the time to understand what Tom is trying to say, it is really brilliant. IMHO
Great breakdown right here.
Good explaining :)
until trump returns, destroys fed and cb system of fiat currency. usa has twice the oil [shale, in ground] of russia and saudia together. every nation will be forced to go to asset backed currencies–fiat burns to the ground. no nation matches military of usa, but under true president –trump–military will not be used to defend the petro dollar/cb fiat scam. the world will be freed at last……
Subscribe to the man’s Patreon and make demands there.
“Demands”? I didn’t make no stinkin’ demands.
“With that in mind, now think about the current financial system where all inside money is created by first selling a debt instrument to someone willing to hold it for a vig.”
And just what in the hell is a “vig”?
“Vig” is short for vigorish. It is slang to denote interest on a loan, usually in reference to the shadier, black market type of loans.
If Tom is using such arcane terms for a layman like myself, assuming I will understand, then no wonder this whole essay is beyond me.
A vig fee is money payed to a booky for his services. Basically mafia shit.
No offense but you’re probably out of your depth at this level. Asking for a dumbed down version, in my opinion is pretty rich. Instead of asking a professional, who is giving you FREE information, to personally tailor his information to your level, perhaps you get a highlighter and highlight everything you don’t know in his article, then go do your own research. You’ll be quite surprised if you put forth a good effort. As mentioned by another, but restated, go to patreon and pay him to do your homework. Also, please say thank you to the participants who answered your question. If you believe in “teaching a man to fish” (hopefully that’s not too antiquated of a reference) then I should not expect you to get your panties in a wad from my feedback. You’re welcome.
Oh so sorry Sir Anonymous! However I have not yet seen a reply to my comment from the actual OWNER of this blog, unless Tom appointed you his Chief Chastiser unbeknownst to me.
Tom seems like a pretty good bloke to me and so I assumed that he would want to know if his essays were not accessible to anyone with an interest in his subject. Call it feedback.
He also has not advised me that his blog is aimed at only those at a certain “level”. And that others need not try to read his posts. Heck there might be others like myself that are too timid to speak up, and they may be glad to have seen my ignorance self-admitted.
In other words Sir Anon, there could be other interpretations of my comment-questions that are different from yours. It could be that you are not the arbiter of Standards anymore than you are the owner of this blog.
Contrary to your opening sentence, I found your remarks, and hence you, as very offensive.
Putin playing 3D chess when the rest has a hard time figuring out the rules of checkers…
…From where I’m sitting, it appears more like Team Davos are playing drunk Twister…
Maybe you say this, and I’ve missed it. Hasn’t Russia just rebirthed the gold standard, in denominations of their choosing, but only for nice people, and so clearly excluding the dollar and euro, which are left outside to the sound of weeping and gnashing of teeth. They can’t say they weren’t warned to chose wisely.
Yet another brilliant article. Thanks Tom. I tried to digest the article by reading carefully a few times. Your thoughts regarding the financial side of things corroborates the centuries long grand scheme of colonialist money exchangers and makes things clearer to see in terms of both world finance and geopolitics. War raging between Davos versus US is spot on. All indications point at that, provided you put the pieces of the puzzle correctly together. Davos lost the game yet in their desperate minds they believe in a grand war as their last ditch effort to salvage their future financial colonization scheme. US mid term election is looming ahead. They have to do something in the next six months or they are toast. There will be eventful months ahead of us. Hope the sane minds at Pentagon prevail and prevent a ‘Mother of All’ false flag event conspired by those ‘Eurotrash inbreds’.
I’m curious where do you see the end point in global finance? Obviously each “party” has it’s own plan but that does not always play out as expected. Do we end up with two,three,x finance blocks ? What will be the global exchange currency or currencies? What part does crypto and/or CBDC (the poor pathetic cousin to Crypto) play? Once all the shit has hit the fan and the toilet paper has run out after Covid 2024, we still have a world with different commodities that need to trade with one another……how?
According to Tom (borrowed from Martin Armstrong), if I have been listening correctly, once the world becomes skeptical of the dollar, those dollars will start heading back to the United States and will be used to buy whatever of value people think they can get their hands on. Stocks at first and then more tangible assets like real estate. So, there should be another bubble in stocks and real estate… however, the next problem will be is how to continue to get goods into the United States if suppliers become leery of the US dollar? … and at that point, then the US is at the end of the road with the paper money experiment.
The EU apparently is in an even more precarious position than the US, so they ought to go under first, by a similar mechanism, if I have been listening correctly.
That is about as far as I got regarding what to expect next.
Does this mean Russia and China will become friendly to Bitcoin mining once again?
Fascinating. The lawyer in me listened to the German finance minister blather on about the terms of the contract, and I though, the terms the West voided by making Euros and Dollars unavailable and spendable for Russia, meaning financial assets with no real value.
The West, particularly the US, is truly amusing when they blather on about the rule of law and property rights while at the same time denying these things to those they don’t like.
Bottom line: West has financial assets that are only useful in paper form as toilet paper or fuel if they can’t source enough of real assets to keep the ponzi going. Try wiping your bottom or heating your house with a Central Bank Digital Euro, Mr. Lindner.
LIndner needs to shut up and geot his butt out of Olaf the Clown’s SIlly Coalition before he destroys what’s left of the FDP. I’ve lived in Germany, once married to one of his countrywomen and know they are not apt to give up their comforts or economy for a squabble beween two Russian tribes, both of which they despise.
Excellent analysis. But again, do not worry about conflict with Russia. There is zero chance that anyone will challenge an army which has demonstrated superiority like the Russian army did in the Ukraine. Expect conflict in Europe, on home turfs. It really depends on how hard Putin will push regime change. The only reason he has even waited this long was out of the Russian misplaced idea to get Germany to denazify internally.
Since this didn’t happen, the best case scenario for the eurownakers is a slow dissolution of the EU, the worst is upping the financial pain to where the French military starts running tanks in Paris, court marshals Macron and ends the whole EU debacle in one swoop.
A few thoughts; there isn’t enough gold to go around to protect all of these insiders and elites, nor enough private planes to get them outta dodge when things get even more “interesting.” Tom is right, the neocons are nuts, but anything nuclear will wipe out the Davos tech utopia infrastructure, why risk that plan…and with 3 billion people having taken the poison inoculations, all they gotta do is wait it out…patience is a virtue.
Still puzzling about these inoculations in the greater scheme and how they relate tot the different factions in the play.
They seem coming from Davos and to be related to The Internet of Bodies, Digital ID & financializing big data, health and surveillance. The ‘health benefits’ may of may not be intended. Not sure.
Both Russia and China have their own inoculations. Are they into the Internet of Bodies independent from Davos, in spite of the financial war and the proxy war on the ground together with Davos or were they playing along to not interrupt an enemy making a mistake? Or was it precaution from them to develop these vaccins and innoculate their own population?
I think digital IDs was the goal (which has basically already been achieved world-wide), and every country on earth except for some in Africa was on board with that, because that is every government’s wet dream — Total control of their own livestock. I also think there was a compromise with Davos and Russia/China — we’ll gladly go along, just let us develop our own “vaccines”. Something fell apart between Davos and Russia (and now the rest of the East) on the way to this current Ukraine mess. Who knows what that was, and what it will ultimately lead to, but it looks like the West is going to be the loser. Or maybe Russia/China was playing Davos all along?? Either way, the outcome is government everywhere having more control over their own cattle.
@Max……I think I may know. Me and a couple guys including Brexit were bouncing theories around last week. I had a very smart lady make an entire substack into answering my questions. Reading her piece yesterday combined with Tom’s paints a pretty grim picture.
There’s no doubt Fauci/CDC/FDA/Pharma are all aware now the vaccines are a disaster. Yet they continue to push them going for even younger children and more boosters. If you look at the data out of heavily vax’d UK, Scotland, and Israel you will find the highest cases. In the last couple months the hospitalizations and deaths have been overwhelmingly attributed to the jabbed. Many of these are older people with comorbidities. These numbers are essentially based around the latest variant Omicron. The vaccine’s protection (if there is any) wanes quickly and actually sets the person up for a more dangerous experience than the unjabbed.
The military data, known by Fauci & Crew, reflect a younger audience where different ailments are way up. This coincides with group life insurance companies (working age) experiencing a large increase in Q3 & Q4 2021 all cause mortality. These are mere inconveniences. I am not trying to minimize the pain to people who have experienced adverse reactions or have lost loved ones, but these are not the goal. It actually makes the job of getting people vax’d/boosted harder as these stories leak out.
After reading this piece from Tom yesterday I came away understanding more about the great reset. It seems we are almost out of time with regards to our fiat currency (dollar & euro). Many believe Omicron was born in a lab same as the original Wuhan strain. Sharyl Atkisson a fantastic journalist just wrote about it. The link I sent above will lead you there as well.
This brings me to my conclusion and where we are today. I believe the so called vaccines are a kill switch. Davos and Co know full well when shit implodes things will get crazy. Especially in the US with many firearms. As Tom stated their goal was to RESET yet still keep themselves on top of the pile. This could be very difficult to achieve with hordes of people starving many of them armed. Solution: now that the vaccines have proven that they indeed will promote Antibody Dependent Enhancement (ADE) which assists the disease under certain conditions attack the host. They will let loose a much more virulent strain when ready. This will keep people from going too crazy and also off the streets looking for blood. Many will be too scared to fight.
I know it sounds “out there” but after playing with the puzzle for months and combining it with Tom’s input this is what I came up with. I had thought these so called vaccines would be used as more of a slow kill weapon. Rare cancers and auto immune diseases become much more frequent in the next 3-10 years. This could still be the case; however, after truly understanding their timetable and motivations I think it is indeed a literal kill switch that can be activated anytime. If this is the case know it will be quite dangerous for the unvax’d as well but the one’s who got the shot are really going to be marked. Again I advise your to look to Omicron and how it seems to be seeking these people out. I don’t suspect a lot of politicians are actually in on it either. They’re simply greedy and stupid who will do whatever Pharma and the puppet masters tell them too.
Just to add to my comment Max you stated about the jabs,
“They seem coming from Davos and to be related to The Internet of Bodies, Digital ID & financializing big data, health and surveillance.”
This is most likely correct as well. Not all will succumb to more virulent strain if set loose. I probably should have made that more clear. And I don’t suspect they want to go down that road until all other avenues have been exhausted. The kill switch option is a safety net I think. In the last couple days I have become convinced that if necessary something highly transmissible will be released that does not interact well with these shots.
They will no doubt be able to treat it before they release it (vax’d or not) be it monoclonal antibody IVM, etc. Assholes have been doing it the whole time meanwhile castigating anyone else who dares.
This article “Encapsulates” everything!
There is no other alternative answer other than delusion and wishful thinking. Best thingy have ever read.
All politics is local…”the cost of food and gold.”
The power of thought and planing: the “Putin Strategy.”
PS : I want to pay some money for this read….but as a pensioner I don’t understand or trust BIT coins. I do BPAY and bank transfers…but I suppose that gets skimmed, skinned and tracked by the FED Thought Police.
Credit to a Feed Stock store for goat tucker maybe ?
It’s actually worse than you say.
Russia clearly anticipated this…
That was a month ago.
Sure you can buy rubles on FX but there simply isn’t the LQ for gas. Few million $s a day, sure… $500m? No chance.
They also can’t earn rubles by selling Adidas or VWs as they cuckstropped out of the Russian market. So the only way to get rubles is via their central bank at an extortionate rate.
But the rate changes… You swap hundreds of millions of Euros for rubles and the Euro falls… So you get fewer rubles. It’s effectively compound interest.
Meanwhile as you say the only way out is to militarily defeat Russia. Not merely defeat them in Ukraine. Even there Nato relies completely on airpower. Whilst the Russians appear to have had fun almost trolling with their Iskanders targetting individual SAM systems. The message sent is clear.. Your ABM systems are trash and your airbases would burn. Not that the West has much ABM in the first place.
Also sanctions themselves are largely pointless, and self defeating. Long standing sanctions on Cuba, Venezuela etc are regularly busted using crypto. By accepting bitcoin Russia might as well have said ‘here’s how you get around sanctions’. Bitcoin offers pseudonomity, Ethereum offers true anonymity for transactions through Railgun app. Doubt it’ll be long before they announce they’ll accept Eth too. Sberbank’s imminent stablecoin certainly hints at this.
Question is how low can the Euro go? Having to swap 2% of GDP into another currency at an extortionate rate will have effects. Weak Euro is inflationary and the WEF types assume they can print and borrow their way out of trouble. But the great circle of capital is broken. Russia is offering 20% with a strengthening currency, the Euro area sometimes negative rates with a weakening one.
Who holds the counterparty risk to gas futures which won’t be fulfilled? Paper gold, silver and other commodities? There’s only so many times you can wind back LME days before it’s the exchange which is destroyed.
Meanwhile regime change? Yeah we’ll see it all right. Once base rates are jacked and millions in the West lose their homes the ejection of our current dangerous brand of idiot elites is a certainty. South Korea just elected a government on an antifeminist ticket… This will sweep the board. Political parties across Europe have no defence, except for mean tweets, as they’ve only selected cucks and feminists for a generation.
Going to war with Russia isn’t a solution either, as that requires energy. Energy that the Russians won’t be providing, and that Europe has no alternatives for. Russia appears to have them in checkmate.
Do nukes exist? Trickery is the art of war. Is functional nukes a psyop? Perhaps the idea of nukes has been the real weapon all along. https://amzn.to/3LnVI0m
I’m a subscriber and I’ve been reading Tom’s posts for several months, loving the clarity I’ve been getting from them; a mental framework with which to confront a chaotic world. I realize my comment about nukes might appear to be spam, but I wanted to use as little bandwidth as possible to share an idea that has actually been a real comfort to me as a father and soon, a grandfather.
Over 12,000 nuclear warheads currently are reported to exist. To be battle tested there must have been many tests of each kind. So there have been thousands of nuclear explosions. Where have all these tests taken place? Not on military bases or they would be unuseable for 700 million years. Not underground because then you could not measure results.
Mike, why has there never been an accidental nuclear explosion? There are thousands of nuclear devices on subs, in silos, in motion on trucks, onboard aircraft, suitcase nukes, each one handled by human beings. A perfect record since before July 16, 1945.
Nor has anyone intentionally used a nuke as a weapon. If they had they would certainly not keep it a secret.
This doesn’t sound like any human endeavor I’ve ever heard of. The use of nukes is now being openly discussed. Is the likes of Hillary, Nuland, and the Davos crowd, not to mention all the other morally challenged leaders since 1945 restrained by some divine impulse that is foreign to every other human being?
Maybe a functional explosive nuclear device cannot be built. Maybe nukes are the biggest psyop of all time. Maybe Putin figured it out years ago and focused on building functional hyper-sonic weapons.
*since Hiroshima and Nagasaki
Inside money trumps outside money because the vast majority of people want it. I wouldn’t know what to do with a barrel of oil or pipeline of gas to my house. Same with 99.99% of everyone else. The winner will be the US. Oil is the most valuable inside money and we are a top producer. Plus we have the most deep and trusted capital markets so we can leverage it. Who else has both?
Sorry to tell you that under current circumstances the US ain´t no “winner” as you say and MOST probably a clear “loser” simply because
(1) the US is deeply addicted to hydrocarbons with no way out for the foreseeable future because of many good reasons, including politics.
(2) for years to come the US will continue to be a net IMPORTER of oil
(3) the US supposed “top production” was only during a very brief time span and on the basis of UN-sustainable shale fields only kept on running somewhat for the sole purpose of faking a self-sufficiency of sorts. With shale, the oil & gas industry knows all too well that the more your drill and produce … the more money you lose… only to be compensated, yet again, by the Fed´s impunity at “money” printing something which now flashes RED to the whole wide world and is intimately related to the essence of this excellent Tom Luongo article.
(4) Shale “sweet spots” no longer exist as they are fully exhausted. The only aspect that subsists is the enormous pollution footprint generated during production and now left behind with enormous pending costs of many almost un-solvable impacts environmental or otherwise.
(5) The “depth and trustworthiness” of the US dollar and corresponding capital markets which you mention is PRECISELY what this article is all about, title of which please read out loud and repeat until you fully grasp its consequences “Russia Just The Back Of The West”…
Or maybe for simpler, shorter reading please do take a quick look at my posts right here on this chat above which fully agree with its essence.
I unvoluntarily MIS-quoted the title of this excellent Tom Luongo article.
I meant and should have said “Russia Just BROKE The Back Of The West”
Nothing is absolute. In 1-5 above I ask, relative to whom?
UK? The hydrocarbons are in the ground…
US only has light oil, good for making gasoline but not much else. It imports its heavy oil from Russia (previously Venezuela) that is used for diesel, other fuels, and industrial solvents.
Your capital markets are all built on monopoly dollars and a service economy. A giant house of cards, and Russia just lit the match.
8% from Russia is not huge. And the heavy needed is just because of the type of refineries we have. I believe a new deal with Venezuela is in the works.
Yes, they went there a couple of weeks ago to try to talk Maduro into replacing their Russian oil. He told them to go talk to Guaido.
Venezuela is friendly with Russia. I wouldn’t be counting on much help from them. You could always ask the Iranians…
Well there is the small matter of the U.S. having a criminal syndicate government that is bent on destroying said ‘top oil producer’.
Yes I think that is where Tom’s Davos crowd comes in. Euros want to financialize(?) electricity through carbon credits, ESG, etc. since oil is becoming hard to source. Domestic politics is beneath some here in the US even though that’s their job. The real prize is global. And the real global reserve system of ledger money Eurodollars requires T-bills, the best of the best, with a whole gang of global interests coming up with reasons to supply them. Triffins dilemma hit the US decades ago but making promises, spending money and blaming the other guy gets you reelected.
Gregory. if nukes don’t exist, then someone has been VERY busy faking them. There is far too much compelling evidence that not only do they exist, but that they have been demonstrated multiple times.
On another note, one of the basic assumptions some of you make is that we are dealing with rational people. I suspect that is very much not the case, when you get into many of the upper level “leadership” classes. They no doubt have very deep bunkers to retreat to. This is a very dangerous time for the Empire to be ruled by a cabal of irrational zealots, who are currently at each throats.
“Inbred Eurotrash” is PERFECT.
If the Davosians hope to impose a global (crypto)currency then they will need the major fiat currencies of the world to converge beforehand, to lessen currency shocks during transition.
So IF the Great Reset will require such a convergence, we’d expect to see moves to weaken strong fiat currencies, and strengthen weak ones.
Tom – great article. My end game sees Russia backing the Ruble ultimately with Rhodium as the Oligarchs are done pumping up the metal on the London Exchange…kinda like a Russian Bitcoin…thoughts?
Thank you for the detailed explaination. It was most appreciated.
I personally don’t believe there will be any military response against Russia, at all. I think its all “fear based rhetoric” on the media’s part, as well as the White House, to keep people worried about something else. Keep humans thinking only “ONE SIDED” about this situation, (“must mean war!”), so the brain does not “free” think, and try to figure out the complex puzzle Putin has tossed onto the global table. You cannot play 3D chess if you posess a 1D mind.
I DO NOT BELIEVE Putin would have gone down this road, if he ever believed he, or Russia would be destroyed ultimately by the West. He just would not. He’s a very smart, smart man. Like it or not. This, “war,” is an economic war against the west. Not a military industrial complex war. I still believe a “PUTIN Checkmate” is coming. Time will tell.
I wish the EU was racist but they aint. allowed millions of primates into Europe and tens of millions on the way
I wish the EU was racist but they aint. allowed millions of primates into Europe with tens of millions on their way
Sorry but I had to stop reading after the second paragraph. The tweet clearly says Russia will pay 5000 rubles per GRAM. There are just shy of 28 grams in an ounce. So we are talking about over $42000 per ounce or 21X the current price. NOT 1550 per ounce a 25% discount from the current price. The difference is so staggering that the conclusions drawn from a decision to buy gold at $42k would be the exact polar opposite of what they would be for a decision to buy it at $1550 per ounce. So at this point I don’t know what the truth is, and don’t see the point of reading any further. I need to go find out which statement is even the true one. Disappointing. Obs the boss move would be to buy it at 42k per ounce to expose the true weakness of the dollar. Then pay for it with crude oil that they pull out of the ground all day for dirt cheap. Because this is the picture of a strong economy. One that can afford lavish investments paid for by it’s own productive output. But apparently it seems that Tom has some theory that the boss move is Russia devaluing gold by buying it at a 25% discount from spot price. I guess he missed the last 50 years and what the suppression of the pice of gold has wrought on the world.? Anyway off to verify the facts I didn’t get here.
Wrong. 31.1 per troy ounce. Do the math again… you are wrong.
28.35 grams to the ounce. Troy ounces are larger
So, read it again after you’ve done some proper math.
The opening quote says “5000 rubles per Gram…” A Troy ounce is 31.1 grams, correct. Your commentary opens with the statement that Russia will pay “5000 rubles per ounce…” which is not correct. I’m lousy at math, but this appears to be elementary.
5000 RUB/gram X 31.1 gram/oz = 155,500 RUB/oz
155,500RUB/oz divided by 1950usd/oz equals just under 80 RUB/USD.
After that the incentives work out. The Russians are offering to buy gold UNDER THE MARKET.
What is that in moles?
We even get a little dimensional analysis here at GG&G. Good to see that you have not gotten rusty being away from the bench ! ;)
Dubdlds I had to quit reading after your 3rd sentence. There are 31.1 grams of gold in a Troy Ounce. Repeat, TROY ounce.
Ok back from the fact check. Russia is paying 5000 rubles per GRAM but this does also equal 1550 per OUNCE. Everybody had it wrong. So Russia is playing it old school. Effectively pegging the price of the Ruble to gold, but at a favorable exchange rate so as to spur investment in their economy. Something you can’t do when you have $30 trillion in national debt. What’s old is new again. Is that what Tom said? Never finished the article. Details matter
Yes. BUYING gold, not selling.
Yes, this is exactly what I’m saying. You should try math before getting triggered.
Dublids, admitting yet again you didn’t finish the article while quibbling over one point (which you seem to squarely not get) is one of the best Dunning-Kruger examples I have seen lately.
Wonderful analysis, thank you. I am afraid that I do not possess the backgrond to fully understand the nuances, still digesting all.
I also found on this topic the following for those interested.
I am trying to figure out what parties are involved in this geo-strategic shift, their goals, their strengts and prospects.. Wallstreet, Davos, Russia, China, etc. For a while I thought they all participated in the Reset, but this plot is too complex to use as a cover :)
I would appreciate your thoughts about this in this moment of time. Read your earlier thoughts with interest, but an update would be nice.
It’s clear i don’t think Russia or China… and now the Federal Reserve, are down with the Great Reset. I’ve covered this at length here on the blog and in the podcasts.
I will continue to update this as I go along, but understand I will be building on these ideas further rather than simply restating them over and over.
I just did a podcast with Tom Mullen which helps review some of the basics. When it’s out look for it here on the blog.
Based on a discussion over at Conservative Treehouse, in the comment section, there seems to have been a recent movement to obviate the Fed on the way to a digital currency.
I can’t determine the legitimacy of the concern, but it seems to have to do with this: https://lynch.house.gov/_cache/files/1/7/17e47e5a-2bff-42c1-b509-eb8a50931fa6/BDDFF183213326821B5C88B7F326EABB.ecashact-lynch.pdf
That’s what ECASH is about
His country (Russia) produces nothing. All we have to do is stop sending the parts for all his stuff if he stops sending US the oil and commodities. Sheeshh……..
They just liberated the intellectual property of everyone who refused to do business with Russia. They will make what they need on their own or make arrangements with China to do it for them.
Haven’t really been following all the developments very closely I gather?
This is a big deal which no one is really talking about. Pepe Escobar wrote a piece on it last month.
Those ´unfriendly´ companies who now refuse to do business with Russia will find their Intellectual Property know-how & know-why patents etc etc put to good use by the Russians in the understanding that abandonment justifies forfeiture. Apparently the above does NOT include brands or brand model names.
This topic is huge and implies LOTS of real life outside money.
Same goes for businesses which just decided to abandon Russia leaving behind their awarded licenses, premises, personnel, property and also the diligent care of the above in Russian soil committment made from the get-go years ago.
So, for example, MacDonald´s now is run by new owners (Uncle Vanya”) who assume diligent care of such.
New winds blowing, new times a´coming
“The sanctions have also led a Russian judge to dismiss a copyright and trademark infringement lawsuit brought by the British company that produces animated series Peppa Pig” . Patented designs fashion or otherwise are also included.
Heres a query, if these same gangbangers could produce worldwide pandemic, er scamdemic, collusion, whats to say this isn’t all going swimmingly to plan?
I still can’t find a single economist that accounts for the unincorporated American Fed Gov… which, presuming anything Anna von Reitz has said is true, should be coming online in the next few months… since all the unincorporated states assemblies have been populated.
America forced all its citizens to give the government all their gold coins, bullion, and gold certificates in 1933 with executive order 6102. This led to the enactment of the Gold Reserve act of 1934, which prevented citizens from owning physical gold. This theft was to protect the currency system of the Federal Reserve bank.
_The Federal Reserve bank is a private bank. It is not owned by the US government or citizens. It is owned by large US banks. It is not part of the US government. This put the US under the silver standard internally, but external foreign transactions were still under the international gold standard.
_President Kennedy tried to return control of the US money supply to the citizens by executive order 11110. Citizens were able to exchange federal reserve notes for silver coins and silver certificates. The US constitution says that the money of the land will be gold and silver (Article 1, section 5). It doesn’t say anything about money being green ink on cotton paper. Kennedy was assassinated only 3 months after issuing this executive order.
_President Johnson reversed this order. Johnson also ended the backing of the US dollar by silver. He used inflation to pay for the Vietnam war. On July 23, 1965, he approved the Coinage Act of 1965. This removed silver from circulating coins and authorized that silver clad coins be used for the half dollar, quarter, and dime. An ounce of silver in 1965 costs one US Federal Reserve bank paper dollar bill. At the time of this writing, an ounce of silver sold at a coin dealer costs 26 US Federal Reserve bank paper dollar bills. If you go to a bank and ask them to exchange your paper dollars for metal gold or silver coins, they will laugh at you. They will refer you to a coin dealer.
_This inflation is caused by the Federal Reserve ordering printing of new issues of dollar bills. This does not require the approval of voters or Congress, only a vote of the officers of the bank. This new fiat money is put into circulation by loaning it to banks. Prices then race to keep up with this sort of inflation. This new money dilutes the value of any existing monies kept as cash, savings, or cash annuities.
_President Nixon stopped a run on US gold by foreign nation creditors in 1971 by ending the conversion of gold to dollars and vice versa. This ended all backing of US federal reserve notes by gold. The US dollar became strictly a fiat currency. The Federal Reserve promissory notes have been losing value ever since. For example, if a person held $100,000 in a non-interest-bearing savings account in 1965 and left it there until today, the present-day buying power of that money would only be $26,000, a whopping 74% loss. The average citizen will never understand this.
_President Carter ordered the sale of US gold to the Arabs. In return, they promised they would not raise the price of oil anymore. They did not keep their promise. Fort Knox is empty except for a token display of gold they keep near the front entrance. This is to show any government leader that shows up on a surprise visit without an appointment and demands a tour as proof there are still US gold reserves. The US will never be able to go on the gold standard again since it has no large gold reserves.
_The other gold reserves are kept in the basement of the federal reserve bank in New York. This gold belongs to foreign countries, but is stored in the US. All countries have been flatly refused that have tried to take physical possession of “their” gold to repatriate the bars to their home country.
_America has instigated over 200 armed conflicts since WW2 ended. Most of them were to protect the stability of the dollar. One of the results of the war was that the reserve currency for the world became the US dollar. This actually worked as long as it had some form of silver backing or gold international backing.
_To review briefly the conflicts since WW2:
• Iraq stopped accepting USD for oil in 2000. It was invaded in 2001. Saddam Hussein was hanged in 2006.
• Libya stopped accepting USD for oil in 2011. It created and issued a gold-backed currency. Libya was invaded during a general uprising of the people. Mu’ammar Al-Qadhdhāfī was assassinated in Oct. 2011 while hiding in a grocery store.
• Venezuela stopped accepting USD for oil in 2017. They created a gold and oil backed currency. A coup was attempted but failed. The US gets much of its sour crude oil shipments from Venezuela. Some of it is first shipped to Mexico or Brazil to disguise its origins.
• Iran stopped accepting USD for oil in 2008. It banned the USD completely in 2017. The CIA has attempted to incite protests and a regime change, but this has not worked. The US has severely sanctioned Iran to the point of crippling its economy. Poor and working people are the most impacted by this with widescale unemployment, hunger, and poverty.
• Russia and China agreed in 2019 to bypass the Swift Payment System. This is used to settle large debts between countries. It uses the USD as its reserve currency. Transactions are settled in USD. They established the CIPS Chinese financial clearing system as an alternative. President Trump tried to force China back into the Swift System by punitive tariffs. China responded with severe tariffs of its own. Trump’s tariffs backfired.
_The USD is supported by supplying generous gifts to countries as foreign aid. This sounds charitable and looks good on paper for the US to help poor countries. All foreign aid must be spent on buying US manufactured weapons or other US manufactured goods. The gifts are quickly recycled back into the US economy, less the amounts used to buy friends and goodwill. This amounts to a subsidy to US arms manufacturers.
_The bottom line here is that the super-rich elites who own the banks that own the Federal Reserve will go to extreme measures to protect the supremacy of the dollar as the world reserve currency. They know their own fortunes, future, and legacies depend on this. The super-rich elites are all fine-looking, well-educated, and for the most part decent acting people. In actuality, they are sociopaths who do not care for anyone or anything other than their families and their personal or family wealth. Their two main goals are to get richer as a class and to control the world as much as possible to guarantee their benefit and increase. _They react swiftly and severely to any real threats. Any world leader that would challenge this status quo must be informed of the possible consequences. There will be consequences depending on the level of threat and situation.
This story about JFK and silver certificates, etc. has been debunked many times, even by someone as conspiracy aware at G. Edward Griffin. This alone makes me suspicious of the rest of your claims. You should at least have known it wasn’t true.
hmm… looks like they blocked my post twice… your loss, Tom Luongo
just approved. It didn’t show up in the ‘notifications’ I found it and approved it.
This might be a dumb question but wouldn’t just about anyone be willing/wanting to buy gold at $1550/oz right now? That is significantly less than the market price, after all. What am I missing?
Sure, but the Russians aren’t selling gold at that price, only buying it
OK I see what you mean. OK then here’s the next question: who would SELL gold to the Russkies under the current spot much less current physical (whatever that is today at my local coin store)???
Glad to see your post. I thought for a second when I saw it that it was mine. I wonder(ed) the same thing. Maybe the answer will be up there somewhere in the scores of posts I am working my way thru on my email inbox.
There is still no gold or substance in circulation or at risk. Therefore trust is entirely with the individual (there can only be one!) that ‘sets’ the gold ‘price’. It’s still upside down!
Of all of your articles that I have read Tom, this one strikes me as the most profound and most important.
I would like to add that in respect to ‘First Order’ raw materials whether they are minerals, ores or hydrocarbons we are not where we were 100 years ago. This new ‘cycle’ whatever it will be will not have the luxury of abundant easy to extract natural wealth. This cycle will start with an uphill struggle and a re-pricing of the First Order.
Mars looks very close to me.
The Bank of England never relinquished its view of the United States of America as a taxable colony after the Declaration of Independence. And as long as Americans pay their taxes, England and much of Europe will continue to live off the backs of the American taxpayer.
Since the Rubles backed by Gold, doesn’t that make it the securest currency in the world?
Rubles today are not backed by gold. The Russians very simply now require unfriendly nations to pay up for Russian exports in Rubles. And if such don´t have Rubles — most don´t — Russia will kindly buy their physical gold bullion to the tune of 5000 Rubles per gram which would be equivlanet to USD $ 1550 per Troy ounce… until June 30… after which nobody knows what Russia may decide to do.
But beware, Russia only BUYS gold and it doesn´t sell it for nothing no matter what you or anybody else cares to give them. And if for whatever reasons you have Rubles in your bank account you can indeed buy products and services that Russia would be willing to sell you albeit not always and not to unfriendly nations. But with those Rubles of yours today you CANNOT buy gold from Russia, they will not sell you any.
In other words, as Tom Luongo has made perfectly clear
(a) Rubles today are NOT backed by gold.
(b) Russians only sell you their stuff if you pay them in Rubles.
(c) You have no Rubles ? Russia will kindly buy your gold till June 30 at $ 5000 Rubles per gram at approx. 20% below current market price
(d) Russia does NOT sell any gold at any price in any currency
(e) Russia keeps all of it physical gold bullion within its borders
Ok. Very good. Getting less and less hazy. But how does this blow up the paper gold ponzi scheme? If very few have Rubles, and most wouldn’t want to sell their gold at below market price, doesn’t that just mean that they are still stuck in the old system?
Castelletto ( “small castle” huh ? )
Well, the reason why the paper gold ponzi scheme is being very SERIOUSLY attacked by this Russian decision is precisely because — as YOU correctly observe Castelletto — most wouldn’t want to sell their gold at below market price… So they will try to sell at the running market price with NO discount.
But the problem is that FIRST they have to get a hold of their gold, if they do have. Some do, but is it available or fumbled up by the Bank of England ?
And what about Brexit unfinished business with physical gold bullion delivery weaponized for pending EU-UK negotionans ? And if they don´t have gold they´ll have to buy it and TAKE DELIVERY, no paper allowed. And THAT would destroy the paper gold ponzi scheme that rightfully worries you right now.
First sentence is wrong: “RUB5000 to the ounce at an exchange rate of 100 RUB/USD implies a $1550 per ounce gold price.”
It’s RUB5000 to the gram!
Since the announcements were contiguous, it’s not clear to what extent Putin’s gas-ruble standard, (the Gruble?) influenced the ruble strengthening. But actually, he says the gas sanction is the 1st tranche, indicating a Petrol sanction will follow, so really, the PEGruble.
The reason why Europe is shuddering already is that 55% of it’s diesel comes from Russia. Globally, half of the world’s diesel comes from Russia, half from the ME. So when the Gruble becomes the PEGruble, I think the shit really hits the fan.
If the G7 wants to play the refractory Mt St Helen’s rancher, Europe enters a giga depression doesn’t it? Maybe this is the plan.
also all metals, ores, wood, fertilizer
But if Putin is taking prophylactic measures against potential internal economic unrest by allowing Russians to exchange their rubles for gold, then he is forced anyhow to put in a floor. Otherwise, as he rolls out the gold standard, the Crimex will smash gold into peanuts in order to buy the gold to pay for energy, and Russians citizens will feel that they’ve simply exchanged groundnuts for peanuts?
Saddam Hussein tried to break the petrodollar (2000)
Muammar Gaddafi same (2009)
Hafez Assad (2006)
The best laid plans of mice and men oftimes gang agley.
Neither Gaddafi nor Hussein had nukes,a real military or the marginal barrel of oil
Tom, 100% correct.
Still, I dare to add that
(1) as Charles XII of Sweden + Napoleon + Hitler learned the hard way, Russia also has unique geographical advantages for conventional warfare, climate included.
(2) Russia also has very proud and loyal Russians soldiers
Take care and keep up the excellent work Tom
Putin is not Saddam or Gaddafi and Russia is not Iraq or Libya.
We have a local mint in our city. Saunter up to the counter, hand over the money – hallmarked bullion is handed over. No problems – unless you’re buying by the ton…..
Brilliant article Tom. Finally paper gold fraud Ponzi gets destroyed. Bitcoin becoming a chess piece to destroy the dollar hegemony is significant. This war unfortunately is just the overture to the larger conflagration expanding this fall. There is always lag time to impacts on financial markets. You can’t taper a Ponzi. There are counter parties to all these commodity contracts that have imploded due to these mad sanctions and Russia’s reciprocal actions. We will see who is actually swimming naked. There is going to a worse than Lehman event this fall for sure as the Fed, the ECB and BOJ are unable to print currency to cover the implosions. As they say when all else fails they take you to war. I see what these crazy neocons will do in succession. Invade Saudi Arabia after they allow RMB trade for their oil, create an insurgency in Ukraine that will spill over Europe thereby creating security instability all over Western Europe, collapse of European economy means the unemployed population will join criminal gangs and other revolutionary militias furthering the political and security crisis in the continent. By fall, the burn with us Neocons will take the war to Asia by declaring Tsaiwan independent unilaterally. Of course China will not take this running through its red line lying flat. Chinese fight wars differently adhering to Sun Tzu which first exhaust all non kinetic and economic response. Knowing how these neocons work they will ignite the war through a gulf of Tonkin like incident and all bets are off for use of nukes and end of life scenario. A war in Tsaiwan this time around is a world war as it ignites North Korea, Iran, Japan and others to the fray aside from the big actors. We’re living in interesting times yet scary times indeed.
Looking forward to your upcoming articles Tom. By the way nice to see you in the Duran hope to see you more often interacting with the Duran team.
Tom said “ It’s clear i don’t think Russia or China… and now the Federal Reserve, are down with the Great Reset. I’ve covered this at length here on the blog and in the podcasts.”
They may not be down with the great reset via the Schwab view, but they’re definitely pushing part of the agenda. Several times last year, both Powell and Yellen were imploring everyone to take the vaccines. That’s weird. Why are financial people discussing vaccines? Russia and China have their own sketchy inoculations. I don’t think the vials contain vitamin B12 for a nice refreshing boost of good energy. Both China and Russia seem intent on reducing their populations.
Future Olympic Games might be held with events such as “who can stand the longest without stroking out.”
Arthur, the last thing that Putin wants is fewer Russians! There are already too few of them as is. Think about it. Look at the birth rate in Russia.
I think the main goal with the vaccines was digital IDs for all the livestock. That is a goal of every government (Davos-linked or not), and has now been achieved. Perhaps population reduction is the hail Mary pass if the transition doesn’t go well, and if it’s impossible to pay for all those pensioners. Sure many of the shots are dangerous, but over half the world now has them, so if they were really dangerous even the average mind-numbed zombie would figure it out with their own eyes in daily life. A few hundred thousand cases of myocarditis and 10s of thousands of deaths here and there aren’t even a blip on the radar. Heck the original “virus” wasn’t even a blip in terms of excess mortality. If there was no media coverage or world-wide hysterical reaction, hardly anyone would have noticed it was different from any other flu season. The vast majority of the shots are saline, and/or weaker versions of “active ingredients” and don’t do anything at all.
Yes exactly – digital IDs.
COVID and the vaccines were all just theatre – all they cared about was the digital IDs.
Not even the actual IDs all issued to everyone – just the technologies developed, the legislation passed and the consent manufactured.
Now they have all that, a controlled demolition of the global economy and financial system will get people begging for an emergency universal basic income.
Public crypto, which you will need the digital ID to qualify for.
Perhaps a self assembling digital id was in the vaxx? Might want to look into “mesh networks”. Wasn’t all this covered in Revalations?
Here’s a thought experiment for those (such as myself) who find it difficult to assemble known(?) data (which is full of contradictions) into a satisfactory (coherent) narrative… temporarily accept the premise that evil both exists as an actual agent in and has control of the world. How many contradictions are there now?
You can of course jettison this premise anytime you like, as it was only an interesting mental exercise, and return to your pre-existing status quo.
Per Reuters, all of Russia´s exports could soon be payable only in Rubles.
Got gold ?
Today 3/30 it’s 84.50 Roubles to the dollar making gold 1,840 !!
Why does the author refer to plain old leftists as “Neocons?” Why not call them just what they are, or not call them anything?
I believe you meant mid-1930s?
Why would Russia offer to buy gold at a price LOWER than the going price? That’s how I read this piece. And that’s the basis for my “huh?”.
BB it´s real simple.
Since August 15, 1971 and most specially since the London Gold Pool bankruptcy debacle in 1968, the Bank of England and the US Federal Reserve manipulate gold prices every single day many times per day as per their exclusive needs and wishes. It´s the Gold Ponzi scheme many posters refer to which does not allow for any possible gold price discovery.
(a) Russia does not wish to engage in Euro-charity or traditional Euro give-away subsidies.
(b) Russia wants to be payed for its produce, same as you or I would, right ?
But Russia cannot accept dollars or euros that would be readily confiscated yet again by Western democracies. Such Western currencies are now WORTHLESS to Russia or anybody else subject to same THEFT. So beware of Western democracies which confiscate your accumulated bank savings without batting an eyelash if they care to.
(1) Russia sells its exports under very precise contract clauses.
(2) Russia used to be payed in dollars and euros but the WEST froze its accounts
(3) Russia will not give away its produce for NOTHING
(4) Russia accordingly says pay me in Rubles then… and if you have no Rubles pay me in gold (NOT confiscatable dollars or euros) at the conservative rate of R$ 5000 per gram I am buying your gold at which under CURRENT market prices is equivalent to USD $ 1850 per ounce Troy which is approx. 10% below today´s market price, not 20% as it was yesterday, for example.
And if you don´t like my conservative price for your gold just pay me in Rubles.
You don´t suggest going back to 3rd. century barter, do you ?
I’m taking a contrarian perspective on intent. Not on any of the detailed analysis and economic ramifications, which is all very insightful and fits very well. This probably won’t be a popular opinion but I believe its highly likely that the Davos cabal have fully intended most, if not all, of the assorted economic consequences (and related forecasts) that are in play. I openly admit that my economic depth is about as shallow as an inflatable wading pool in contrast to a practiced analyst. Even still, by keeping up with analysis and economic events, it seemed obvious to me even before the first sanctions were dished out (by the West against the western middle class, placing blame on Russia) that Russia could easily have the West and the dollar by the short hairs, if Russia and the West ever went toe to toe in any serious fashion. The energy dependencies built around Russia are simply too strong. In fact, a detailed hindsight review of related energy history over the past 30 years demonstrates what looks like intent to set up a dependency. Most of you will know what I’m talking g about, re: diminishing western energy infrastructure, as Russian infrastructure is growing. So I have to ask myself the question: Are the Davosian dogmatics so tunnel-visioned that they couldn’t predict how this might play out? The so-called economic playwriters entirely missed the plot? Did they put all of the pieces in place in Ukraine to draw Russia into a trap, without ever examining or managing the associate risks? Is it merely a coincidence that much of the fallout will contribute to reset goals? Are we therefore witnessing coincidence theory? Maybe I’m too jaded. I’m not buying it.
You know our fearless leader said the other day, I’m paraphrasing here, “These sanctions aren’t going to hurt Putin, they will hurt the people. Hell all the people.” My first thought is why the hell are you doing them jackass? Seems like that would be an easy question for one of our esteemed press to follow up on but I digress.
Hearing scuttlebutt about Friday could be a big day. Sorry no sources can’t even recall but have heard it several times. Sounds like there is a possibility for Putin to really put it in West’s ass if he so chooses. April Fool’s could be a big day. Could someone please explain the significance of Friday?
First trading day of Q2
The answer to all of your 5 questions at the end of your post is “YES”.
I could prove it to you… but not here… simply because this forum is not about me… or you — or Tom for that matter — but rather is a virtual place that Tom kindly makes available to all of us to discuss and debate Tom´s articles for everybody´s benefit.
Concerned, YES the world´s top leaders and most of their teams are completely isolated from reality, are definetly mediocre in every sense of the term, and run the most disingenous analyses reaching unbelievably dumb conclusions as you so rightly point out.
Yes, they are THAT unbelievably stupid… but still in charge of our future.
@Brexitologist. Agreed this forum isn’t the place for dissertation. Without proof I’m going to respectfully disagree, although I’m aligned with you overall. It’s my experience that yes, the sycophants and narcissists who are pushing these agenda’s are certainly capable of stupidity. But often, decisions that seem moronic will make sense once you know the purpose and the agenda. Also, these groups are supported by a massive network of expert teams who provide detailed expert analysis and guidance.
Another point – these globalists organizations have had their eyes on an integrated world system of some sort for many decades. Now that the pieces are falling into place towards justification and rhetoric for building a new/different system, is it safe to assume this is all an accident due to stupidity? Imagine that your neighbor plans to build a new home on his current property, in place of his existing house. Before the plans are implemented, his existing house ends up burning down because he “stupidly” left the fireplace unattended after starting a roaring fire. He gets a new house via insurance coverage, and ends up way ahead of the game. What a moron, right? Sorry, but I would have a hard time buying his story.
In a fateful week in 1963, when Kennedy’s retinue were discussing his schedule for the week ahead, one of the CIA team said:
“Friday’s gonna be one helluva day”
…The whole Great Reset is a way to crash the existing system but leave the same colonialists in power legally…. So if the currency collapses will we see a rise in clandestine barter?
All you people complaining about inflation and having to make sacrifices, you need to check yourselves and consider how lucky you are.
Not only have the Russians stopped paying Hunter Biden’s “consulting” bribe from Bursima, the Chinese have also stopped paying claiming that the bribes they paid didn’t even stop “the Big Guy” from selling weapons to Taiwan.
Hunter Biden hasn’t sold one of his finger paintings in over a month!!! Think about that, and what it means. The costs of hookers and blow are climbing way more than groceries.
Sacrifices need to be made my fellow Earthlings, and y’all need to think how lucky you are.
Hunter needs his bribe money. Nancy Pelosi needs to do some more insider trades. McConnell and Schumer need a brain and a heart and some courage — some youth wouldn’t hurt either. And do you have any idea how difficult it is for Joe to find his sippy cup when his dementia acts up?
Do you have any idea how humiliating it is for a member of Congress to have to fly on a commercial flight with whiny voters instead of flying a private jet?
To top this off, the 1% learn their yachts have lost value because there are so many stolen Russian yachts for sale. That does not put them in the mood to make more bribes… (cough) I mean campaign contributions.
Putin orders phaseout of foreign software…
In previous posts you mentioned that the Davos plan is:
2) Broken US
3) Capital flight to EU
Plan now seems to be Reset at all costs (via inflation), EU be damned because the Russians shot a hole into the USD World Financial Order ship?
Question, is this an on-the-fly improvisation or the controlled demolition is now out of control (and Davos is basically hanging on for dear life?)
It seems like something worked. The ruble is trading at parity with other currencies at the same level as before the invasion. It will be interesting to see if it increases in value with Russia being the most sanctioned country on Earth? Someone is buying rubles. (lol)
Meanwhile Lavrov and Daleep Singh are both in India. While simultaneously there is nationwide general strike going on sponsored by the Gates Foundation, Soros and the NED. The timing could not be more perfect for India in terms of deciding who its friends really are; the guy with the sanctions (CAATSA) and Color Revolutions or the guy with the oil and other things to trade?
If anyone really wants to understand what may be going on in India, I really recommend this 20 minute interview with Philippine President, Rodrigo Duterte. I saw this years ago and still can’t get this line out of my mind: “If I survive the CIA, I still have five years to go”. (quote @t=10:52)
What is the difference between that and Biden telling the Counsel of Foreign Relations that the Ukrainians wouldn’t be getting their billion dollar IMF loan unless they fired their prosecutor?
And Poland just announced it won’t purchase Russian coal or buy fuel products from Russia for rubles. While that seems to support NATO it also allows them to halt the destruction of their coal industry and contravene the EU climate mandates; an action right up there with their proposed peacekeeping mission to L’vov. (lol)
The invisible undercurrents going on here are just amazing. IMHO
URGENT – Moscow
“Putin Signs Decree Ordering Gas Exports To Be Halted If Buyers Don’t Pay In Rubles
Putin signed a decree requiring payment in rubles for Russian gas supplies as from Friday, April 1 which also demands buyers of gas to open accounts in Russian banks warning that Moscow can halt gas contracts if buyers don’t pay in rubles. Additionally, new payment proceedings in EUR or USD could be blocked.
No April Fool´s Day prank, no bluff.
Just head-on gloves-off confrontation with “unfriendly” nations that hate Russia´s guts.
Good updates here as well. We’ll see who caves first.
Commodities are for practical purposes fungible. Until cyber currencies are asset based they are nothing but cyber space.
Tom, I´ve been trying to send you a direct email and it´s rejected over and over again.
The email address I have was posted before per ” tom DOT luongo AT outlook DOT com ” to no avail. Could you please let me have a different email address to reach you ?
@Brexitologist. “Agreed this forum isn’t the place for dissertation. Without proof I’m going to respectfully disagree, although I’m aligned with you overall. It’s my experience that yes, the sycophants and narcissists who are pushing these agenda’s are certainly capable of stupidity. But often, decisions that seem moronic will make sense once you know the purpose and the agenda. Also, these groups are supported by a massive network of expert teams who provide detailed expert analysis and guidance.
Another point – these globalists organizations have had their eyes on an integrated world system of some sort for many decades. Now that the pieces are falling into place towards justification and rhetoric for building a new/different system, is it safe to assume this is all an accident due to stupidity”?
I’ve quoted “Concerned’s” reply to your earlier because he/she perfectly explains my thinking. I had written the same idea today (4-04-22) before I saw his reply to your comment.
Brandon Smith ceaselessly points out that once you know the Agenda, then work your way back through the various acts and you begin to see how so far the criminal Cabal is winning.
I remember seeing a brief video clip of George Soros talking about how terrible a thing it was to have Trump as President of the USA. How it really messed up his plans, etc. But then he said, and I paraphrase, “Nonetheless, Trump will be out of office after the next election”. Not I hope he will be. He WILL BE. Now if you look back at what happened in that stolen election you can see why Soros was so confident of his prediction.
I am confused about the chart under “That’s Nice… #GotRubles?”. The label is USD/RUB with a current value of 90.7666. The text following the chart uses the reverse ratio, RUB/USD and talks about a value of 75. Both ratios can’t be right?
Money, it’s a hit
Don’t give me that do goody good bullshit
So you listen to real music… ;]
Hi Tom Article by Alasdair MacLeod 1/4/22
… The Holy Grail in the evolving discussions about a multipolar world, since the BRICS summits in the 2000s featuring Putin, Hu Jintao and Lula, has always been how to bypass dollar hegemony. It’s now right in front of the whole Global South, as a benign apparition bearing a Cheshire cat’s smile: the golden ruble, or ruble backed by oil, gas, minerals, commodity exports….
Enjoyed reading The Saker piece. Thanks for the share.
I just found this today. It’s frightening shit but this guy seems to be on point. He aligns with a lot of what I am hearing on this site. What I am asking is do you guys think the situation is this dire?
Gotterdammerung … twilight of the gods … Marx was taken with Wagner as were others like Shaw, the brilliant curmudgeon, whose book The Perfect Wagnerite is predictive. The rate of demise is the question.
If his name was ‘Shaw’ and he was a curmudgeon then it must be GEORGE BERNARD! He was one of the founders of the Fabian Society which has had a big hand in everything that has happened since around 1900. What the WEF-Davos crowd is about is Fabian Socialism. And these guys aren’t foolin’ around. They’re all in right now ever since Trump Happened.
Just listened to the latest podcast. Loved the discussion around Triffins paradox (dilemma) and the “strange bedfellows” created by the incentive to keep feeding the Eurodollar beast with US treasuries. My pushback is without creative finance oil and natgas won’t get pulled out of the ground. This isn’t There Will Be Blood. All the shit left is extremely difficult to extract.
You must log in to post a comment.