Posted on 04/29/2022 2:31:08 PM PDT by PK1991
RG Question: And what do we need to do to ensure the ruble's sovereignty?
Nikolai Patrushev: “For any national financial system to be sovereignized, its means of payment must have intrinsic value and price stability, without being pegged to the dollar.
Now experts are working on a project proposed by the scientific community to create a two-circuit monetary and financial system.
In particular, it is proposed to determine the value of the ruble, which should be backed by both gold and a group of goods that are currency values, and to put the ruble exchange rate in line with the real purchasing power parity.” **** Elsewhere in the interview, Patrushev drops some bombshell comments about how Russia is intensifying cooperation with the non-Western world, comments which have yet to be appreciated by the mainstream Western media.
“I am confident that we will solve all the problems that have arisen as a result of the sanctions restrictions.
Today, Russia is moving from the European market to the African, Asian and Latin American markets.
We give priority attention to the EAEU, whose importance is growing many times over in the current conditions.
We are stepping up cooperation with the BRICS and SCO countries, which bring together about three and a half billion people on the planet.”
Do you believe that there is anything in Fort Knox?
Gold doesn’t back their currency. Right now, gold is their currency. They trade their reserves for what they need to import. They can keep it up for a year or so, and then they are out of gold.
If you had any idea why the us dollar is used in internatiobal trading you would not post kook garbage like that and would also understand how idiotic the talk of the ruble challenging it is.
“heck, their on people would sell the bullion on the black market and the day those reserves were drawn upon there’d be nothing left but an empty vault. “
BINGO!! READ THIS!!
“The potential for foul play became a bit more likely in June, when Russian President Vladimir Putin signed a law easing foreign exchange controls for gold exporters. The loosened regulations mean that sales of precious metals are now exempted from the requirement to credit the proceeds to Russian accounts. The cash can now be kept in Western banks.
As we understand it, this means gold could be mined in Russia and sold in London—with the earnings kept in euros in a Swiss bank account (for example).
Anyway, next time you’re at a cocktail party and someone mentions how Russia is scooping up all the world’s gold, for freedom, you can be that annoying person and say: “Well, actually…”
https://edwardslavsquat.substack.com/p/why-is-russia-sending-planes-full?s=r
And why is that? You tell me what’s wrong with the numbers.
Any decently educated economist will know that all backing up cash with gold does is leave you with no gold after a fairly short time.
Oh sure, Russia is so trustworthy in their financial accounting that we can take their gold reserve declarations as true, and no doubt they will also produce gold — or unspecified commodities — on demand by any holders of rubles. Gold bugs often seem to regard adopting a gold standard as a transformative magic declaration. My surmise though that few will actually put money behind trust in Russia.
So, all that Spanish Gold which disappeared during the Spanish Civil War, sent for safekeeping to Stalin will now be put to good use!
Their gold is about 1/4 of their annual oil and gas exports. If the ruble was redeemable in gold that gold could get wiped out in 3 months by outside entities.
I’m a little confused by the no. 5 post. It sounds like I can buy it, but I can’t physically take possession of it. Headaches and now a cold seem to have taken over my head and chest lately- not that I’m any great brain, LOL!
Bttt.
5.56mm
Reported several years ago that Russia was stock piling gold....and very low debt.
Russia’s been stock piling gold for years now...I doubt it’s just 130 Billion. Plus their debt load has been lower than most western nations.
Russia has a $140 billion stockpile of gold, but no one wants to buy it
https://www.yahoo.com/lifestyle/russia-140-billion-stockpile-gold-114400443.html#:~:text=And%20like%20oil%2C%20Russia%20holds%20some%20of%20the,sort%20of%20economic%20insurance%20policy%20for%20the%20country.
********* Rooskie gold is worth 140 billion USD. This is not enough to back the Rouble in any credible way. A gold backed Rouble is a myth.
Actually, stupid Rooskies have been selling off some of their gold in the last five years. IIRC this was freshly mined gold.
________
Major Russian gold miner opts for exports versus imports as local banks buy gold at discount
Anna Golubova Anna Golubova
Tuesday April 26, 2022 15:43
https://www.kitco.com/news/2022-04-26/Major-Russian-gold-miner-opts-for-exports-versus-imports-as-local-banks-buy-gold-at-discount.html
A real world gold standard experiment in the midst of a war. We do live in interesting times.
Russkies can proclaim their Rouble is backed by gold (and oil/gas). But just watch.... Anyone who tries to redeem their Rouble holdings for gold will be turned away. More fakery and quackery from Dr Putin.
“Any decently educated economist will know that all backing up cash with gold does is leave you with no gold after a fairly short time.”
I’m pretty sure that only happens if other countries accumulate more rubles than Russia can back with gold. If Russia isn’t increasing its money supply, is an exporter of commodities (they are), and isn’t importing much from the rest of the world then where is the gold drain?
The American gold standard as it once existed allowed you to exchange dollars for gold. Sometimes you had to go to Subtreasury offices to do it, it wasn’t always easy. And not all currency was redeemable IIRC, silver certificates and US Notes being examples.
For the Russian plan to be a gold standard they will have to allow people to turn in their rubles for gold upon demand. That eliminates a lot of the “trust me” factor. If you keep a ruble balance in a bank then you are hoping that nobody changes their mind leaving you holding the bag.
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