Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

Russia Pegs the Rubles to Gold
Youtube ^ | 3-28-2022 | Heresy Financial

Posted on 03/30/2022 4:31:12 PM PDT by PK1991

It's official! Russian Central Bank announces that the ruble is tied to gold! 5000 rubles per gram.

The Central Bank of Russia has officially announced that the Russian ruble will be tied to gold as of March 28, 2022, The rate is 5,000 rubles per gram of gold ingots. There are 28 grams in each ounce. 28 grams for 5,000 rubles per gram is 140,000 rubles.

Are you following me this far?

The conversion rate of rubles into US dollar is 100 rubles, 90 pounds, for each US dollar.

If the rubles are tied to gold at 5000 rubles per gram, and there are 28 grams per ounce, which means that an ounce of gold would cost 140,000 rubles, then the conversion into US dollars means that gold costs 1400 dollars per ounce when used the rubles, instead of 1,928 dollars by ounce using the dollars.

Russia just wiped out about 30 percent (30%) of the US dollar worldwide when it comes to gold ingots.

People all over the world are literally throwing their money on the ruble and throwing away dollars and euros to do it. What Russia just did is the financial equivalent of detonating a nuclear bomb.

FYI, the last guy on this planet to try to support a currency with gold was Muammar Quadaffi of Libya.

NATO entered Libya, bombed it to death, until the Libyan people took Quadaffi on the street, beat him with blood and planted a bullet in their head. As of now, 10:39 PM EDT, I suspect bankers around the world are on the phone between themselves and the heads of state, instructing them that what Russia has done will totally destroy both the US dollar and the euro, and those bankers of Frog to the heads of state that world war 3 must start immediately.

Let me explain why.

Today, the Central Bank of Russia anchored the ruble to gold.

Last week, Russia said it would sell only OIL and GAS in . . . . Ruble!

This means that Russian oil and gas are anchored in gold with rubles like gold proxy.

EFFECT: Europe (which needs Russian gas and oil) will now have to buy rubles from Putin using gold, or pay for oil and gas with gold itself.

Currently, the FOREX rate for Rubli to Dollari is around 100:1

BUT... with 5,000 Rubli now equivalent to a gram of Gold, and oil being priced directly into Gold, we will see a MASSIVE price disturbance in the FOREX markets, in terms of how much Gold a Dollar can still buy.

Foreign countries holding our dollar debt notes as a reserve will see an immediate and much less use for them and want to start downloading them in favor of something more stable; something that holds its value.

Basically, any currency anchored in gold will fit into the account. which means countries like that - like Japan - will start unloading their dollar debt as soon as possible - are not going to go down with the ship! They'll move to more stable values like... The Ruble.

This will have a DE-flationistic effect on the Rublo, making it more precious with time. This also means that Putin can re-find the ruble whenever he wants, at 500, or 50, or 10. He just keeps getting more precious to him.

The immediate result is that all those foreign countries dumping their dollar reserves will make all those excess dollars start going home, triggering a worse hyper-inflation than we already have in the USA.


TOPICS:
KEYWORDS: bitcoin; brazil; brics; ccp; china; cryptocurrency; delusionalsystem; economicilliterates; gold; india; ntsa; petrodollar; putinlovertrollsonfr; putinsbuttboys; putinworshippers; reservecurrency; ruble; rupee; russia; southafrica; theusualsuspects; ukraine; ukrainicorns; yuan; zottherussiantrolls
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 next last
To: crz

Well, the Rooskies are apparently talkin’ Grams.


21 posted on 03/30/2022 4:50:31 PM PDT by Paladin2
[ Post Reply | Private Reply | To 19 | View Replies]

To: crz

Thanks.


22 posted on 03/30/2022 4:51:25 PM PDT by Paladin2
[ Post Reply | Private Reply | To 16 | View Replies]

To: PK1991

“Russia just wiped out about 30 percent (30%) of the US dollar worldwide when it comes to gold ingots.

People all over the world are literally throwing their money on the ruble and throwing away dollars and euros to do it. What Russia just did is the financial equivalent of detonating a nuclear bomb. “

Ok, this one is the funniest out of all the death of the dollar articles. I don’t know if this guy is coming down from an acid trip while writing this or he just thinks his readers are just very dumb.

6.2 trillion (yes, trillion, the one with the T) dollars trade daily. Russia Gross Domestic Product is about 1.5 trilion annually. They export roughly 500 billion. The ruble is a spit in the ocean. It is a gnat on an elephant’s behind. Stop with the kookery that it matters. It does not.


23 posted on 03/30/2022 4:52:46 PM PDT by BiglyCommentary
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mount Athos

Good catch...ya beat me to it!


24 posted on 03/30/2022 4:53:10 PM PDT by Cuttnhorse
[ Post Reply | Private Reply | To 4 | View Replies]

To: PK1991

Pretty good idea on Putin’s part.


25 posted on 03/30/2022 4:53:45 PM PDT by RinaseaofDs
[ Post Reply | Private Reply | To 1 | View Replies]

To: Paladin2

OK..I admit I skimmed over the article.

Shouldnt do that on here because someone will attack a person for noting these days.

Can hardly have a valid honest discussion without a war of words anymore.

And THAT pisses me off.


26 posted on 03/30/2022 4:55:03 PM PDT by crz
[ Post Reply | Private Reply | To 21 | View Replies]

To: PK1991

Russia has only $125 billion of gold. YAWN!!! Americans spend $100 billion on pet supplies and food.


27 posted on 03/30/2022 4:57:13 PM PDT by BiglyCommentary
[ Post Reply | Private Reply | To 1 | View Replies]

To: PK1991

Well, it’s a smart move to collapse fiat currencies that are overdue for a collapse.

The problem is Russia’s ruble is a fiat currency. They have to have enough gold to cover their M2 money supply of about 70 trillion rubles.

Gold is right now calling for about 162,000 rubles per ounce of gold.

So they need 25,000,000 pounds of gold to cover their currency. Or 12,538 tons.

They have 2300 tons.

https://suresource24.com/2022/03/sanctions-russia-stuck-with-140-billion-of-gold-reserves-with-no-buyers/

That means they’re short on gold or their ruble is overvalued by a factor of five.

Doing some quick and dirty math they have 73,600,000 ounces of gold and 70 tn rubles.

That works out to 951,086,956 rubles per ounce of gold on hand.

Seems to me the Russians are screwing themselves here.


28 posted on 03/30/2022 5:01:07 PM PDT by MercyFlush (I don't follow the science. I follow the money. )
[ Post Reply | Private Reply | To 1 | View Replies]

To: PK1991

Ok, this article is crazy. The ruble’s peg to gold changes the value of the ruble. Gold and the dollar have the same relative value. Nothing changes between the dollar and gold. The dollar is still about 1/1927 per gold ounce. The ruble on the other hand will float up and down with gold which has moved between 1700 and 2100 dollars. But its up a lot from the year 2018 when it dipped below 1200 an ounce.

With US interest rates going up, the dollar should push gold down. As it does not pay interest. So holding gold will not be a good investment while the fed is moving against the money supply and inflation. If more countries with bigger economies do this, like China, it would start to sink the dollar. But don’t expect it. China sells to the US and a very strong yuan relative to the dollar would make all Chinese products too expensive.

But this is very good for Russia because Russia has gold mines and gold reserves. So they can more easily handle the fluctuations. And they shield themselves somewhat from the American forces which have been trying to sink the ruble.


29 posted on 03/30/2022 5:01:17 PM PDT by poinq
[ Post Reply | Private Reply | To 1 | View Replies]

To: BiglyCommentary

Russia has only $125 billion of gold. MORE YAWNING!!! Americans spent roughly 300 billion in 2021 eating out at burger and pizza fast food places.


30 posted on 03/30/2022 5:01:36 PM PDT by BiglyCommentary
[ Post Reply | Private Reply | To 27 | View Replies]

To: MercyFlush

There was a big scandel in Russia recently that the central bank was selling their gold in London.


31 posted on 03/30/2022 5:04:14 PM PDT by BiglyCommentary
[ Post Reply | Private Reply | To 28 | View Replies]

To: BiglyCommentary

This guy is reasonably intelligent. Its a broader view not just Russia and Gold. “We are witnessing the birth of Bretton Woods III – a new world (monetary) order centered around commodity-based currencies in the East that will likely weaken
the Eurodollar system and also contribute to inflationary forces in the West. A crisis is unfolding. A crisis of commodities. Commodities are collateral, and
collateral is money, and this crisis is about the rising allure of outside money over inside money. Bretton Woods II was built on inside money, and its foundations crumbled a week ago when the G7 seized Russia’s FX reserves…” https://static.bullionstar.com/blogs/uploads/2022/03/Bretton-Woods-III-Zoltan-Pozsar.pdf


32 posted on 03/30/2022 5:05:27 PM PDT by PK1991 ( )
[ Post Reply | Private Reply | To 23 | View Replies]

To: poinq

“Ok, this article is crazy. The ruble’s peg to gold changes the value of the ruble.”

You notice the Russian central bank wasn’t kookoo enough to set the gold peg to anything other than the ruble”s recent value else they would just get laughed at by the whole financial world.


33 posted on 03/30/2022 5:11:01 PM PDT by BiglyCommentary
[ Post Reply | Private Reply | To 29 | View Replies]

To: PK1991

A couple of questions.
1. Does Russia have that much Gold on hand?
2. If I can buy 100R for a dollar will Russia allow me to then buy Gold for 140,000R per ounce?

I think the answer is Nyet to both.


34 posted on 03/30/2022 5:11:31 PM PDT by Boiler Plate ("Why be difficult, when with just a little more work, you can be impossible" Mom)
[ Post Reply | Private Reply | To 1 | View Replies]

To: MercyFlush

They have oil and many other resources. If Russia and the world transition to pegging currency to a basket of commodities there is plenty of backing correct? That’s what Zoltan Poznar sees as the new monetary system coming.


35 posted on 03/30/2022 5:13:05 PM PDT by PK1991 ( )
[ Post Reply | Private Reply | To 28 | View Replies]

To: Mount Athos

As soon as I saw that 28 g/oz silliness, I knew the author was clueless. The rest of the article bears this out.


36 posted on 03/30/2022 5:13:33 PM PDT by HartleyMBaldwin
[ Post Reply | Private Reply | To 4 | View Replies]

To: Paladin2

Exactly. Does Russia have the gold reserves to actually back the ruble?


37 posted on 03/30/2022 5:19:46 PM PDT by Blood of Tyrants (Inside every liberal is a blood-thirsty fascist yearning to be free of current societal constraints.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: PK1991

Thats all sounds wonderful if you dont know anything about this. I see this was posted on Bullion Star. Well how about that, a shill for precious metals site yapping about the death of the dollar to con suckers into buying what they have to sell.


38 posted on 03/30/2022 5:19:56 PM PDT by BiglyCommentary
[ Post Reply | Private Reply | To 32 | View Replies]

To: DoughtyOne

Nixon bought more than five decades with the petrodollar.

Now it is time for the reckoning.

“There are decades when nothing happens; and there are weeks when decades happen.”

V. I. Lenin


39 posted on 03/30/2022 5:21:00 PM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: BiglyCommentary

Putin is doing the laughing—all the way to the bank.


40 posted on 03/30/2022 5:21:46 PM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
[ Post Reply | Private Reply | To 33 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson