A Decisive Shift In The Power Balance Has Occurred. “Russia no Longer Tolerates Washington’s Vicious, Stupid and Failed Policies”

 

 

Putin-Obama-400x225The world is beginning to realize that a seachange in world affairs occured on September 28 when President Putin of Russia stated in his UN speech that Russia can no longer tolerate Washington’s vicious, stupid, and failed policies that have unleashed chaos, which is engulfing the Middle East and now Europe. Two days later, Russia took over the military situation in Syria and began the destruction of the Islamic State forces.

Perhaps among Obama’s advisors there are a few who are not drowning in hubris and can understand this seachange. Sputnik news reports that some high-level security advisors to Obama have advised him to withdraw US military forces from Syria and give up his plan to overthrow Assad. They advised Obama to cooperate with Russia in order to stop the refugee flow that is overwhelming Washington’s vassals in Europe. The influx of unwanted peoples is making Europeans aware of the high cost of enabling US foreign policy. Advisors have told Obama that the idiocy of the neoconservatives’ policies threaten Washington’s empire in Europe.

Several commentators, such as Mike Whitney and Stephen Lendman, have concluded, correctly, that there is nothing that Washington can do about Russian actions against the Islamic State. The neoconservatives’ plan for a UN no-fly zone over Syria in order to push out the Russians is a pipedream. No such resolution will come out of the UN. Indeed, the Russians have already established a de facto no-fly zone.

Putin, without issuing any verbal threats or engaging in any name-calling, has decisively shifted the power balance, and the world knows it.

Washington’s response consists of name-calling, bluster and more lies, some of which is echoed by some of Washington’s ever more doubtful vassals. The only effect is to demonstrate Washington’s impotence.

If Obama has any sense, he will dismiss from his government the neoconservative morons who have squandered Washington’s power, and he will focus instead on holding on to Europe by working with Russia to destroy, rather than to sponsor, the terrorism in the Middle East that is overwhelming Europe with refugees.

If Obama cannot admit a mistake, the United States will continue to lose credibility and prestige around the world.

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books areThe Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

Video and Audio of Pilots Who Bombed Hospital in Afghanistan

I [WE] want the video and audio recordings of every bombing of the past 14 years. I[WE] want Youtube and Facebook and Twitter full, not just of racist cops murdering black men for walking or chewing gum, but also of racist pilots (and drone “pilots”) murdering dark-skinned men, women, and children for living in the wrong countries. ~ David Swanson,

 

Region: Asia
In-depth Report: AFGHANISTAN

 

medicins-sans-frontieres-logoThere is video and audio. It exists. The Pentagon says it’s critically important. Congress has asked for it and been refused. WikiLeaks is offering $50,000 to the next brave soul willing to be punished for a good deed in the manner of Chelsea Manning, Thomas Drake, Edward Snowden, and so many others. You can petition the White House to hand it over here.

The entire world thinks the U.S. military intentionally attacked a hospital because it considered some of the patients enemies, didn’t give a damn about the others, and has zero respect for the rule of law in the course of waging an illegal war. Even Congress members think this. All the Pentagon would have to do to exonerate itself would be to hand over the audio and video of the pilots talking with each other and with their co-conspirators on the ground during the commission of the crime — that is, if there is something exculpatory on the tapes, such as, “Hey, John, you’re sure they evacuated all the patients last week, right?”

All Congress would have to do to settle the matter would be to take the following steps one-at-a-time until one of them succeeds: publicly demand the recordings; send a subpoena for the recordings and the appearance of the Secretary of “Defense” from any committee or subcommittee in either house; exercise the long dormant power of inherent contempt by locking up said Secretary until he complies; open impeachment hearings against both the same Secretary and his Commander in Chief; impeach them; try them; convict them. A serious threat of this series of steps would make most or all of the steps unnecessary.

Since the Pentagon won’t act and Congress won’t act and the President won’t act (except by apologizing for having attacked a location containing white people with access to means of communication), and since we have numerous similar past incidents to base our analysis on, we are left to assume that it is highly unlikely that the hidden recordings include any exculpatory comments, but more likely conversation resembling that recorded in the collateral murder video (“Well it’s their fault for bringing their kids into a battle.”)

There isn’t actually any question that the U.S. military intentionally targeted what it knew to be a hospital. The only mystery is really how colorful, blood-thirsty, and racist the language was in the cockpit. Left in the dark, we will tend to assume the worst, since past revelations have usually measured up to that standard.

For those of you working to compel police officers in the United States to wear body cameras, it’s worth noting that the U.S. military already has them. The planes record their acts of murder. Even the unmanned planes, the drones, record video of their victims before, during, and after murdering them. These videos are not turned over to any grand juries or legislators or the people of the “democracy” for which so many people and places are being blown into little bits.

Law professors that measure up to the standards of Congressional hearings on kill lists never seem to ask for the videos; they always ask for the legal memos that make the drone murders around the world part of a war and therefore acceptable. Because in wars, they imply, all is fair. Doctors Without Borders, on the other hand, declares that even in wars there are rules. Actually, in life there are rules, and one of them is that war is a crime. It’s a crime under the U.N. Charter and under the Kellogg-Briand Pact, and when one mass-murder out of millions makes the news, we ought to seize that opportunity to draw attention, outrage, and criminal prosecution to all the others.

I don’t want the video and audio recordings of the hospital bombing. I want the video and audio recordings of every bombing of the past 14 years. I want Youtube and Facebook and Twitter full, not just of racist cops murdering black men for walking or chewing gum, but also of racist pilots (and drone “pilots”) murdering dark-skinned men, women, and children for living in the wrong countries. Exposing that material would be a healing act beyond national prejudice and truly worthy of honoring Doctors Without Borders.

Greece’s Parliament Cannot Override the NO Vote. The Agreement with the Creditors is Illegal

Global Research, July 21, 2015

 

greece-troika-400x224FIRA, GREECE. On Sunday  July 5, the Greek people voted in a historic referendum to refuse the Troika’s draft agreement. 

The Referendum was an outright  ”ritual of democracy”.  The Greek people were betrayed. On Monday morning, July 6, on the day following the referendum, Prime minister Tsipras put forth a 13 page draft proposal which included most of the demands of the creditors.  This proposal, which was drafted before the referendum in close consultation with the creditors was essentially intended to lead towards the acceptance of the creditors’ demands, namely to support the YES vote which was defeated in the July 5 Referendum.  

This about-turn had been carefully engineered. The Greek people were misled and deceived. PM Tsipras was “in bed with the creditors” while leading the No Campaign. He had made a deal with the creditors, he was in favor of accepting the demands of the creditors all along. The NO mandate of  the Greek people was meant to be ignored. And the decision to stall the implementation of the NO Vote was taken BEFORE the referendum. 

The July 6 post referendum document put forth by PM Tsipras on Monday 6 July was accepted in substance by the Troika. It was then endorsed by the Greek Parliament. 

The important question for the Greek people.

Does the vote of acceptance by the Greek parliament provide a legally binding green-light to the government to finalize debt negotiations AGAINST the Greek people, overriding the NO Vote in the Referendum. 

What is the role of a referendum under Greece’s constitution?

While the result of a referendum is not always legally binding, it nonetheless provides  an explicit political mandate to the government which has to be followed. A referendum  cannot be based on an a priori deception. The results cannot be ignored in a democracy. 

The referendum was held while the Tsipras government had already decided to cave in to the creditors.

Neither the Parliament nor the government can rescind the VOTE of the Greek people on the July 5 2015.

Under a democracy, the government has a responsibility to implement the NO vote in the Referendum, which was sponsored by the Syriza government in the first place.

If it is not willing to respond to the demands of the Greek people it must resign.

It is important at this stage that the Greek people question the legality of the parliamentary decision. It is worth noting that the Supreme Special Court (Ανώτατο Ειδικό Δικαστήριο) endorsed the holding of the Referendum.

What must now be established is the constitutionality of the parliament’s denial of the Referendum procedure and its de facto endorsement of the YES Vote.  That decision has to be challenged.  And this must be done before a final binding agreement with the creditors is reached. 

Disclaimer: The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible for any inaccurate or incorrect statement in this article.

Crying Wolf? Impending Global Financial Collapse Will Change the World Order

 

Global Research, June 25, 2015

 

unnamedWorse than any disease or even leprosy, anyone spouting Austrian economics or even “common sense” (almost extinct today) has been shoved into the outcast corner by the mass delusional majority. Over the last few years, “theory after theory” has become fact after FACT afterFACT! There can no longer be any question, conspiracy to delude and defraud has run rampant and is a day to day operation in the Western world.

Originally my thought was to write this piece about and around the perfect response, “but you do agree the government is bankrupt, right?“. I say this because almost anyone (in the U.S.), no matter what age, sex, religion, race or financial status will generally agree with this. For those who don’t agree, it is better to leave well enough alone, this is a subset living in their own delusional world.

For those who do agree “the government is broke”, they are broken down into basic subsets. There are those who “get it” fully. There are those who know the government is broke but don’t really understand what it means or the ramifications (they can’t connect the dots). Another group are those who agree and know in the back of their mind this is true …but they don’t REALLY believe it because they simply cannot …”it’s too awful to comprehend”. Then, we have another group, probably the largest of all, those who agree but think it really doesn’t matter. They may also believe no financial crisis will ever occur because “the government will never let it happen”. Let’s talk about this group next.

The “can’t happen here” crowd only need the dots connected for them. I believe it is best to ask them questions in an effort to lead them to their own answer and understanding. This is much better than lecturing or “telling” them because they will actually have to think to answer your questions. Questions such as:

  1. if the government is broke, how will they make good on their obligations such as payrolls, Social Security, food stamps, paying the military and most importantly paying on their debt? Forget the first four, “do you realize Treasury securities are what funds Social Security, your pension, the bank’s balance sheet which holds your money …AND what underlies the dollar itself?”!
  2. If the above doesn’t work, you might ask if the economy currently “feels good”? Then ask, do you realize the federal government spends almost 20% of GDP (and their spending is “counted” as part of GDP). If they are broke and have to drastically cut back on spending, will the economy not shrink by the amount the government can no longer spend? Do you see without government spending, under any definition we would be in a depression greater than the 1930′s?

I don’t want to go through the entire exercise but please understand, “guiding” someone to their own conclusion which happens to be correct is best done with questions, MANY OF THEM. If you can, take two, three or even more philosophical roads to help them reach the same conclusion each time …the understanding will be that much more cemented in their mind when they finally do(hopefully) arrive!

Switching gears just a bit, we have seen the “mentality” change somewhat over the last year or so. Even the mainstream is showing some signs of a shift. This “shift” has even become evident amongst and within the “old boys club”. For example, who would have imagined Germany, Netherlands, Belgium and Austria would ever ask for their gold back? Or Texas building its own depository and using the words “not” and “confiscate” in the legislation for proposed repatriation?

Several very well known and at one time mainstream money managers have publicly told of the dangerous situation. The latest is a bond manager who has gone entirely to cash, how’s this for putting a crash helmet on?

http://www.bloomberg.com/news/articles/2015-06-22/tcw-braces-for-bond-market-collapse-by-piling-the-cash-up-high

Just a few weeks ago, Bloomberg put out an article asking if China could gold back the yuan. This was significant because no news source (other than maybe Kitco) has been as bearish and slandering regarding gold than Bloomberg.

http://www.bloomberg.com/news/articles/2015-05-20/chinese-gold-standard-would-need-a-rate-50-times-bullion-s-price

Going to the beginning and back to the top, who exactly was correct in 1999-2000? Who was correct from 2005-2008 about an impending crisis? The answer of course is the very same people screaming bloody murder today “the financial system will come apart from the seams”. Are those who were correct before, now “crying wolf”? Or are they saying the same things for the same reason and forecasting the same results as before? “They” (we) were not crazy then and are not crazy now. In fact, it is even much easier to see now than previous. As a side note if you recall, we heard in late 2008 and 2009, “who could have seen it coming”? Or, “no one could have seen it coming”. This is dead wrong! In fact, even within the mainstream press there was a concerted effort to silence the truth. For example, Greg Hunter while at CNN tried to warn of the banking collapse. He was told “don’t go there” and was rewarded by having his contract not renewed!

“Some” saw the dotcom bubble coming, more saw and warned of the 2008 crisis coming …and even more see this one coming. Not only are there more and louder voices today, the numbers are growing slowly but surely and even engulfing some mainstreamers who used to laugh at “us tinfoilers”!

I know how difficult it is and has been.

The financial landscape is perverted beyond recognition and any time you open your mouth, you are proven wrong.

Gold goes down the following day along with a new high in stocks so you look “stupid”. You are not.

“We” cannot make price, we can only tell the truth as we see it and suggest via common sense and logic the need to prepare for the worst. As I see it, the outcome is not in any doubt and becomes clearer each day. My fear is we are not in 2008 anymore, the coming collapse will change the world order to one unrecognizable to today. The U.S. is in fact “broke” as we spoke of at the beginning. The “realization” of this not only can happen but WILL happen. Sadly, because of how badly the U.S. has treated the world over these last years, we will be given no mercy when negotiating our bankruptcy. It will be a real live wolf at our door!

Disclaimer: The contents of this article are of sole responsibility of the author(s). Unruly Hearts will not be responsible for any inaccurate or incorrect statement in this article.
Copyright © Bill Holter, Global Research, 2015

Eastern Ukraine: One Year After the Odessa Massacre

Global Research News Hour Episode 102

 

Global Research, May 03, 2015

Length (59:32)

Odessa Trade Union House on fire

Odessa Trade Union Building on fire

Should the central government lose effective control over the east, the program will need to be re-designed.”

-From a Staff report on the $17 billion International Monetary Fund bailout for Ukraine (May 1, 2015)

 

 

Click to download the audio (MP3 format)
Saturday May 2 marks the anniversary of the Odessa massacre, when the Ukrainian Black Sea Port city’s House of Trade Unions was set ablaze condemning dozens of people who had taken refuge there to a fiery demise.

Early reporting by the international press painted the incident as violent clashes between well-armed pro-unity protesters, who had organized a march, and “pro-Russian separatists” who had set up a protest camp for several weeks. A London Telegraph article depicted the anti-Maidan contingent as having initiated violence when individuals adorned with the black and orange ribbons of St. George started attacking the pro-unity demonstrators.

Bricks, petrol bombs, and even firearms were used during the melee. The Anti-maidan side retreated after being outnumbered. The Pro-Maidan side destroyed the anti-government camp, setting fire to the tents.

The Anti-Maidan faction made their last stand in the House of Trade Unions. The official record however is murky on whether the inferno was deliberate or an accident inadvertently started by the Anti-Maidan group.

These events took place soon after statements from the International Monetary Fund warning of a possible change to the IMF bail-out package should Ukraine lose control of the east of the country.

As the Global Research website has revealed over the past year, there are good reasons to question the official Western account. Videos have surfaced revealing the use of Agents Provocateurs at the outset of the conflict, as well as clear use of molotov cocktails on the Pro-Maidan side.

THE ODESSA MASSACRE – WHAT REALLY HAPPENED

 

Nevertheless, Russian President Putin gets the blame for everything befalling the people of the Donbass, including apparently, the Odessa Massacre.

This week’s episode of the Global Research News Hour puts this year old tragedy in context with two interviews.

LISTEN TO THE SHOW

Click to download the audio (MP3 format)

 

 

Stephen Lendman is an author and blogger, and the host of the Progressive Radio News Hour on the Progressive Radio Network. He is also the editor of the recent book Flashpoint in Ukraine: How the US Drive for Hegemony Risks World War III from Clarity Press. Lendman contributed a chapter on the Odessa Massacre and shares his thoughts in the first half hour of the program.

The Global Research News Hour airs every Friday at 1pm CT on CKUW 95.9FM in Winnipeg. The programme is also podcast at globalresearch.ca .

The  show can be heard on the Progressive Radio Network at prn.fm. Listen in every Monday at 3pm ET.

Community Radio Stations carrying the Global Research News Hour:

CFUV 101. 9 FM in Victoria. Airing Sundays from 7-8am PT.

CHLY 101.7 FM in Nanaimo, B.C – Thursdays at 1pm PT

Boston College Radio WZBC 90.3FM NEWTONS  during the Truth and Justice Radio Programming slot -Sundays at 7am ET.

Port Perry Radio in Port Perry, Ontario – Thursdays at 1pm ET

Burnaby Radio Station CJSF out of Simon Fraser University. 90.1FM to most of Greater Vancouver, from Langley to Point Grey and from the North Shore to the US Border. It is also available on 93.9 FM cable in the communities of SFU, Burnaby, New Westminister, Coquitlam, Port Coquitlam, Port Moody, Surrey and Delta, in British Columbia Canada. – Tune in every Saturday at 6am.

Stephen Lendman is an author and blogger, and the host of the Progressive Radio News Hour on the Progressive Radio Network. He is also the editor of the recent book Flashpoint in Ukraine: How the US Drive for Hegemony Risks World War III from Clarity Press. Lendman contributed a chapter on the Odessa Massacre and shares his thoughts in the first half hour of the program.

Roger Annis is a retired aerospace worker, trade union activist and editor of newcoldwar.org. He recently went on a fact-finding mission in the Donbass region including the hotspots of Donnetsk and Lugansk. He shares what he witnessed in the war zone and discusses his most recent posts in the second half hour of the program.

Disclaimer: The contents of this article are of sole responsibility of the author(s). Unruly Hearts will not be responsible for any inaccurate or incorrect statement in this article.

Russia Under Attack

By Dr. Paul Craig Roberts

Global Research
In-depth Report:

 

While Washington works assiduously to undermine the Minsk agreement that German chancellor Merkel and French president Hollande achieved in order to halt the military conflict in Ukraine, Washington has sent Victoria Nuland to Armenia to organize a “color revolution” or coup there, has sent Richard Miles as ambassador to Kyrgyzstan to do the same there, and has sent Pamela Spratlen as ambassador to Uzbekistan to purchase that government’s allegiance away from Russia.  The result would be to break up the Collective Security Treaty Organization and present Russia and China with destabilization where they can least afford it.

For details go here:  http://russia-insider.com/en/2015/03/18/4656

Thus, Russia faces the renewal of conflict in Ukraine simultaneously with three more Ukraine-type situations along its Asian border.

 And this is only the beginning of the pressure that Washington is mounting on Russia.

On March 18 the Secretary General of NATO denounced the peace settlement between Russia and Georgia that ended Georgia’s military assault on South Ossetia. The NATO Secretary General said that NATO rejects the settlement because it “hampers ongoing efforts by the international community to strengthen security and stability in the region.”

Look closely at this statement. It defines the “international community” as Washington’s NATO puppet states, and it defines strengthening security and stability as removing buffers between Russia and Georgia so that Washington can position military bases in Georgia directly on Russia’s border.

In Poland and the Baltic states Washington and NATO lies about a pending Russian invasion are being used to justify provocative war games on Russia’s borders and to build up US forces in NATO military bases on Russia’s borders.

We have crazed US generals on national television calling for “killing Russians.”

The EU leadership has agreed to launch a propaganda war against Russia, broadcasting Washington’s lies inside Russia in an effort to undermine the Russian people’s support of their government.

All of this is being done in order to coerce Russia into handing over Crimea and its Black Sea naval base to Washington and accepting vassalage under Washington’s suzerainty.

If Saddam Hussein, Gaddafi, Assad, and the Taliban would not fold to Washington’s threats, why do the fools in Washington think Putin, who holds in his hands the largest nuclear arsenal in the world, will fold?

European governments, apparently, are incapable of any thought.  Washington has set London and the capitals of every European country, as well as every American city, for destruction by Russian nuclear weapons.  The stupid Europeans rush to destroy themselves in service to their Washington master.

Human intelligence has gone missing if after 14 years of US military aggression against eight countries the world does not understand that Washington is lost in arrogance and hubris and imagines itself the ruler of the universe who will tolerate no dissent from its will.

We know that the American, British, and European media are whores well paid to lie for their master.  We know that the NATO commander and secretary general, if not the member countries, are lusting for war.  We know that the American Dr. Strangeloves in the Pentagon and armaments industry cannot wait to test their ABMs and new weapons systems in which they always place excessive confidence.

We know that the prime minister of Britain is a total cipher. But are the chancellor of Germany and the president of France ready for the destruction of their countries and of Europe?  If the EU is of such value, why is the very existence of its populations put at risk in order to bow down and accept leadership from an insane Washington whose megalomania will destroy life on earth?

Disclaimer: The contents of this article are of sole responsibility of the author(s).  Unruly Hearts will not be responsible for any inaccurate or incorrect statement in this article. The Center of Research on Globalization grants permission to cross-post original Global Research articles on community internet sites as long as the text & title are not modified. The source and the author’s copyright must be displayed. For publication of Global Research articles in print or other forms including commercial internet sites, contact: publications@globalresearch.ca

Grandmaster Putin’s Trap: Russia is Selling Oil and Gas in Exchange for Physical Gold

 

putin041Accusations of the West towards Putin are traditionally based on the fact that he worked in the KGB. And therefore he is a cruel and immoral person. Putin is blamed for everything. But nobody ever accused Putin of the lack of intelligence.

Any accusations against this man only emphasize his ability for quick analytical thinking and making clear and balanced political and economic decisions.

Often Western media compares this ability with the ability of a grandmaster, conducting a public chess simul. Recent developments in US economy and the West in general allow us to conclude that in this part of the assessment of Putin’s personality Western media are absolutely right.

Despite numerous success reports in the style of Fox News and CNN, today, Western economy, led by the United States is in Putin’s trap, the way out of which no one in the West can see or find.And the more the West is trying to escape from this trap, the more stuck it becomes.

What is the truly tragic predicament of the West and the United States, in which they find themselves? And why all the Western media and leading Western economists are silent about this, as a well guarded military secret? Let’s try to understand the essence of current economic events, in the context of the economy, setting aside the factors of morality, ethics and geopolitics.

Development of crude oil prices.

Development of crude oil prices.

After realizing its failure in Ukraine, the West, led by the US set out to destroy Russian economy by lowering oil prices, and accordingly gas prices as the main budget sources of export revenue in Russia and the main sources of replenishment of Russian gold reserves. It should be noted that the main failure of the West in Ukraine is not military or political. But in the actual refusal of Putin to fund the Western project of Ukraine at the expense of the budget of Russian Federation. What makes this Western project not viable in the near and inevitable future.

Last time under president Reagan, such actions of the West’s lowering of oil prices led to ‘success’ and the collapse of USSR. But history does not repeat itself all the time. This time things are different for the West. Putin’s response to the West resembles both chess and judo, when the strength used by the enemy is used against him, but with minimal costs to the strength and resources of the defender. Putin’s real policies are not public. Therefore, Putin’s policy largely has always focused not so much on effect, but on efficiency.

Very few people understand what Putin is doing at the momentAnd almost no one understands what he will do in the future.

No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.

Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!

To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the Russia coming from the sale of oil and gas over the same period.

goldMoreover, in the third quarter the purchases by Russia of physical gold are at all-time high record levels. In the third quarter of this year, Russia had purchased an incredible amount of gold in the amount of 55 tons. It’s more than all the central banks of all countries of the world combined (according to official data)!

In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. It was the 15th consecutive quarter of net purchases of gold by Central banks. Of the 93 tonnes of gold purchases by central banks around the world during this period, the staggering volume of purchases – of 55 tons – belongs to Russia.

Not so long ago, British scientists have successfully come to the same conclusion, as was published in the Conclusion of the U.S. Geological survey a few years ago. Namely: Europe will not be able to survive without energy supply from Russia. Translated from English to any other language in the world it means: “The world will not be able to survive if oil and gas from Russia is subtracted from the global balance of energy supply”.

Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin’s game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not.

Because Russia, having a regular flow of dollars from the sale of oil and gas, in any case, will be able to convert them to gold with current gold prices, depressed by all means by the West. That is,at the price of gold, which had been artificially and meticulously lowered by the Fed and ESF many times, against artificially inflated purchasing power of the dollar through market manipulation.

Interesting fact: the suppression of gold prices by the special department of US Government – ESF (Exchange Stabilization Fund) – with the aim of stabilizing the dollar has been made into a law in the United States.

In the financial world it is accepted as a given that gold is an antidollar.

  • In 1971, US President Richard Nixon closed the ‘gold window’, ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods.
  • In 2014, Russian President Vladimir Putin has reopened the ‘gold window’, without asking Washington’s permission.

Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West.

Today assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West.

And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With which he immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!

sourcesThere is another interesting element in Putin’s game. It’s Russian uranium. Every sixth light bulb in the USA depends on its supply. Which Russia sells to the US too, for dollars.

Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts of the West. But Putin uses these dollars only to withdraw physical gold from the West in exchange, for the price denominated in US dollars, artificially lowered by the same West.

This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail.

The idea of this economic golden trap for the West, probably originated not from Putin himself. Most likely it was the idea of Putin’s Advisor for Economic Affairs – doctor Sergey Glazyev. Otherwise why seemingly not involved in business bureaucrat Glazyev, along with many Russian businessmen, was personally included by Washington on the sanction list?  The idea of an economist, doctor Glazyev was brilliantly executed by Putin, with full endorsement from his Chinese colleague – Xi Jinping.

Especially interesting in this context looks the November statement of the first Deputy Chairman of Central Bank of Russia Ksenia Yudaeva, which stressed that the Central Bank of Russia can use the gold from its reserves to pay for imports, if needed. It is obvious that in terms of sanctions by the Western world, this statement is addressed to the BRICS countries, and first of all China. For China, Russia’s willingness to pay for goods with Western gold is very convenient. And here’s why:

China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars. Considering the growing trade deficit between the US and China (the current difference is five times in favor of China), then this statement translated from the financial language reads: “China stops selling their goods for dollars”. The world’s media chose not to notice this grandest in the recent monetary history event . The issue is not that China literally refuses to sell its goods for US dollars. China, of course, will continue to accept US dollars as an intermediate means of payment for its goods. But, having taken dollars, China will immediately get rid of them and replace with something else in the structure of its gold and currency reserves. Otherwise the statement made by the monetary authorities of China loses its meaning: “We are stopping the increase of our gold and currency reserves, denominated in US dollars.” That is, China will no longer buy United States Treasury bonds for dollars earned from trade with any countries, as they did this before.

Thus, China will replace all the dollars that it will receive for its goods not only from the US but from all over the world with something else not to increase their gold currency reserves, denominated in US dollars. And here is an interesting question: what will China replace all the trade dollars with? What currency or an asset? Analysis of the current monetary policy of China shows that most likely the dollars coming from trade, or a substantial chunk of them, China will quietly replace and de facto is already replacing with Gold.

Are we witnessing the end of dollar era?

Are we witnessing the end of dollar era?

In this aspect, the solitaire of Russian-Chinese relations is extremely successful for Moscow and Beijing.Russia buys goods from China directly for gold at its current price. While China buys Russian energy resources for gold at its current price. At this Russian-Chinese festival of life there is a place for everything: Chinese goods, Russian energy resources, and gold – as a means of mutual payment. Only US dollar has no place at this festival of life. And this is not surprising. Because the US dollar is not a Chinese product, nor a Russian energy resource. It is only an intermediate financial instrument of settlement – and an unnecessary intermediary. And it is customary to exclude unnecessary intermediaries from the interaction of two independent business partners.

It should be noted separately that the global market for physical gold is extremely small relative to the world market for physical oil supplies. And especially the world market for physical gold is microscopic compared to the entirety of world markets for physical delivery of oil, gas, uranium and goods.

Emphasis on the phrase “physical gold” is made because in exchange for its physical, not ‘paper’ energy resources, Russia is now withdrawing gold from the West, but only in its physical, not paper form. So does China, by acquiring from the West the artificially devalued physical gold as a payment for physical delivery of real products to the West.

The West’s hopes that Russia and China will accept as payment for their energy resources and goods “shitcoin” or so-called “paper gold” of various kinds also did not materialize. Russia and China are only interested in gold and only physical metal as a final means of payment.

For reference: the turnover of the market of paper gold, only of gold futures, is estimated at $360 billion per month. But physical delivery of gold is only for $280 million a month. Which makes the ratio of trade of paper gold versus physical gold: 1000 to 1.

Using the mechanism of active withdrawal from the market of one artificially lowered by the West financial asset (gold) in exchange for another artificially inflated by the West financial asset (USD),Putin has thereby started the countdown to the end of the world hegemony of petrodollar. Thus, Putin has put the West in a deadlock of the absence of any positive economic prospects. The West can spend as much of its efforts and resources to artificially increase the purchasing power of the dollar, lower oil prices and artificially lower the purchasing power of gold. The problem of the West is that the stocks of physical gold in possession of the West are not unlimited. Therefore, the more the West devalues oil and gold against the US dollar, the faster it loses devaluing Gold from its not infinite reserves. In this brilliantly played by Putin economic combination the physical gold is rapidly flowing to Russia, China, Brazil, Kazakhstan and India, the BRICS countries, from the reserves of the West. At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin’s Russia until the collapse of the entire Western petrodollar world. In chess the situation in which Putin has put the West, led by the US, is called “time trouble”.

The Western world has never faced such economic events and phenomena that are happening right now. USSR rapidly sold gold during the fall of oil prices. Russia rapidly buys gold during the fall in oil prices. Thus, Russia poses a real threat to the American model of petrodollar world domination.

The main principle of world petrodollar model is allowing Western countries led by the United States to live at the expense of the labor and resources of other countries and peoples based on the role of the US currency, dominant in the global monetary system (GMS) . The role of the US dollar in the GMS is that it is the ultimate means of payment. This means that the national currency of the United States in the structure of the GMS is the ultimate asset accumulator, to exchange which to any other asset does not make sense. What the BRICS countries, led by Russia and China, are doing now is actually changing the role and status of the US dollar in the global monetary system. From the ultimate means of payment and asset accumulation, the national currency of the USA, by the joint actions of Moscow and Beijing is turned into only an intermediate means of payment. Intended only to exchange this interim payment for another and the ulimate financial asset – gold. Thus, the US dollar actually loses its role as the ultimate means of payment and asset accumulation, yielding both of those roles to another recognized, denationalized and depoliticized monetary asset – gold.

Traditionally, the West has used two methods to eliminate the threat to the hegemony of petrodollar model in the world and the consequent excessive privileges for the West.

Map of Coloured revolutions

One of these methods – colored revolutions. The second method, which is usually applied by the West, if the first fails – military aggression and bombing.

But in Russia’s case both of these methods are either impossible or unacceptable for the West.

Because, firstly, the population of Russia, unlike people in many other countries, does not wish to exchange their freedom and the future of their children for Western sausage. This is evident from the record ratings of Putin, regularly published by the leading Western rating agencies. Personal friendship of Washington protégé Navalny with Senator McCain played for him and Washington a very negative role. Having learned this fact from the media, 98% of the Russian population now perceive Navalny only as a vassal of Washington and a traitor of Russia’s national interests. Therefore Western professionals, who have not yet lost their mind, cannot dream about any colour revolution in Russia.

As for the second traditional Western way of direct military aggression, Russia is certainly not Yugoslavia, not Iraq or Libya. In any non-nuclear military operation against Russia, on the territory of Russia, the West led by the US is doomed to defeat. And the generals in the Pentagon exercising real leadership of NATO forces are aware of this. Similarly hopeless is a nuclear war against Russia, including the concept of so-called “preventive disarming nuclear strike”. NATO is simply not technically able to strike a blow that would completely disarm the nuclear potential of Russia in all its many manifestations. A massive nuclear retaliatory strike on the enemy or a pool of enemies would be inevitable. And its total capacity will be enough for survivors to envy the dead. That is, an exchange of nuclear strikes with a country like Russia is not a solution to the looming problem of the collapse of a petrodollar world. It is in the best case, a final chord and the last point in the history of its existence. In the worst case – a nuclear winter and the demise of all life on the planet, except for the bacteria mutated from radiation.

The Western economic establishment can see and understand the essence of the situation.Leading Western economists are certainly aware of the severity of the predicament and hopelessness of the situation the Western world finds itself in, in Putin’s economic gold trap. After all, since the Bretton Woods agreements, we all know the Golden rule: “Who has more gold sets the rules.” But everyone in the West is silent about it. Silent because no one knows now how to get out of this situation.

If you explain to the Western public all the details of the looming economic disaster, the public will ask the supporters of a petrodollar world the most terrible questions, which will sound like this:

How long will the West be able to buy oil and gas from Russia in exchange for physical gold?
And what will happen to the US petrodollar after the West runs out of physical gold to pay for Russian oil, gas and uranium, as well as to pay for Chinese goods?

No one in the West today can answer these seemingly simple questions.

And this is called “Checkmate”, ladies and gentlemen. The game is over.

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Source in Russian: Investcafe

Translated by ORIENTAL REVIEW