I have referred to the petrodollar before with emphasis on
it being the only real cause for war.
With every other geopolitical catastrophe,
taking place it is hard to focus on just one.
Russia and China seem
to be climbing in bed together with a new energy deal, where Russia would provide oil and gas to China. Russia,
who has been mimicking China
and buying up gold in major quantities this last year. Putin may have more in mind in doing this,
knowing this could entice China
into further trades we do not see just. In
fact, instead of worrying about its own currency, Russia has had a focus on gold even
issuing new policies to purchase much more of the bullion. Looking at gold ratio charts in the last 13
months Russia’s gold reserves increased over 33%, with more than 10% of
Russia’s reserve currency is held in bullion, and that is just increasing daily. As they get closer and closer to the EU’s 40%
would take currency back to the gold standard, then maybe people will see Putin’s
plan as he is selling his USD for gold.
We know Putin is not a fan of the U.S. and aligning itself with China could be huge in a long-term
perspective considering they could truly isolate themselves with land and sea. Russia
has many raw materials and China
has the manufacturing capability. This
could cause a truly massive power shift from the U.S.
dominance into the hands of Asia. Just to give you an idea of the foreign gold
reserves these counties are holding, China is number one in the world, with $
3,821,000,000,000, Russia is number six with $ 515,600,000,000, and the U.S. is
number twenty, with only 4% of what
China has, so in lame terms, they have 96% more than us.
As an American,
I am so disappointed in my country, its corruption, and lack of good decisions in
general. We are possibly trying to
strong-arm Putin, by driving down the oil prices and the Ruble. However what we are doing will not last, Saudi
Arabia wont let that happen, OPEC wont let it happen, just how long till a
civil war takes place and some major bombing right on there pipelines? Putin is by far not an idiot and has a strong
military backing and unlike other leaders, he does not need a vote, poll, or
any congressional approval to bomb or make any moves that benefit him. Russians will survive, unlike the Americans
they do not have the faith in government, Central banks, or leadership as most
do after the last Dictator let millions starve to death. It will be interesting if all of a sudden we
see oil being bought in the Euro, Europe buying gas and oil from Russia, all
because of the gold backing and loss of the petrodollar.
