The future of MONEY pivots this Friday [Washington time] as Putin sets deadline for dropping the dollar, requiring rubles for energy exports......
02 April 2022
Regardless of what you think about Putin’s morals or ethics, he is a genius strategist whose intellect is vastly superior to Joe Biden’s. Putin latest move threatens the very future of the dollar (fiat) currency and may spell the beginning of the end for the dollar.
Beginning this Friday, Russia will only accept roubles, gold or bitcoin as payment for energy exports to “unfriendly” countries. No dollars or euros will be accepted. And why should Putin accept dollars or euros anyway, given that the western financial system has told Putin he can no longer use dollars or euros to purchase anything.
As a result, Putin is demanding roubles, gold or bitcoin. And that means the Russian rouble is now backed by commodities exports, making it a currency backed by something real. If you buy roubles, in other words, you can trade those roubles for natural gas or oil.
Putin blasted the “theft” of Moscow’s resources and mocked the notion that first-world currency reserve holders are “reliable.”
Russia has just made some moves that are going to change the global financial system forever.
When the conflict in Ukraine originally erupted, the U.S. immediately attempted to crash the value of Russia’s currency. Those attempts were successful for a few days, but now the value of the rouble relative to the U.S. dollar is almost all the way back to where it was before the start of the war.
This has absolutely stunned many of the experts, because they thought that U.S. sanctions would absolutely cripple Russia. So what happened? Well, it turns out that the Russians have made some very savvy moves that have turned the tables on the Biden administration.
For one thing, Russia has started to demand payment in roubles when it sells natural gas to non-friendly nations. A lot of countries in western Europe are quite upset about this, but they really have no choice, because they are exceedingly dependent on Russian gas. So from this point forward, western powers are actually going to be forced to help prop up the value of the rouble…
This is a new directive from President Vladimir Putin as he attempts to leverage his country’s in-demand resources to counter a barrage of Western sanctions.
“I have decided to implement … a series of measures to switch payments — we’ll start with that — for our natural gas supplies to so-called unfriendly countries into Russian roubles,” Putin said in a televised government meeting, adding that trust in the dollar and euro had been “compromised” by the West’s seizure of Russian assets.
Secondly, the Russians have decided that U.S. dollars will no longer be accepted as payment for anything that they sell to other nations. Pavel Zavalny, the head of the Russian parliament, says that U.S. currency “has lost all interest for us”…
Much more interesting was Zavalny’s main point, even though it has been mostly overlooked. If other countries want to buy oil, gas, other resources or anything else from Russia, he said, “let them pay either in hard currency, and this is gold for us, or pay as it is convenient for us, this is the national currency.”
In other words, Russia is happy to accept your national currency — yuan, lira, ringgits or whatever — or roubles, or “hard currency,” and for them that no longer means U.S. dollars, it means gold.
“The dollar ceases to be a means of payment for us, it has lost all interest for us,” Zavalny added, calling the greenback “no better than “candy wrappers.”
This is huge, but it isn’t being discussed much by the corporate media in the United States, or Australia!.
The Russians aren’t just saying that they do not recognize U.S. dollars as the reserve currency of the world any longer. That would be bad enough.
At this point, they are actually saying that they will no longer accept U.S. dollars as a form of payment at all.
This is the largest seismic adjustment to the world financial system since the end of World War 2. Is everything happening all at once these days?