Another rant, this time uncharacteristically brief ))) Gold pegged ruble is as much of a legend as Russia selling their natural gas for rubles. Those who know how that scheme works understand that European buyer of gas is never touching no rubles, as according to the central ideological committee rubles are extremely toxic to Europeans! Instead they pay their negotiated price in euros, as they always did, and Gazprombank quietly exchanges these euros for rubles in the background. That is in short how resources for rubles scheme works right now. Another fatal blow, I'm sure.
This is one funny "documentary" video, Edward! Well, I have to admit, I may have been entirely wrong about your talents and you are not lost to the world of "La haute cinématographie"!
Oh, those entirely pro-russian pundits like Matt Ehret, Tom Luongo, Scott Ritter or The Duran duo and many others. I'm convinced that in an ocean of the pro-Western, pro-globalist pundits these people outnumbered by one to a thousand must also exist to provide some sense of balance in this world. But I could never understand how do they get paid? Some smart people must have developed clever schemes how to support daily lives of these individuals without leaving a trace of their financial connection to Russia. It is either that or a silent agreement exists, where such people on both ends of the bargain are allowed to be, like for the longest time RT was tolerated in exchange for Western media presence in Russia. I wish them well! They are the bellwethers of the official propaganda talking points from the Russian side that help us to see the bigger picture.
Now to the gold pegged ruble and things of this nature. The truth is it doesn't matter if ruble was pegged by gold or it was not. It doesn't matter for Russians that while having increased their purchases of the physical gold from Russia's banks do it at a price far exceeding what CBR may be buying it for from the gold miners. Nor does it matter for us here in the West as I'm not aware of the option to even open ruble account, let alone to exchange those rubles for a physical gold somewhere.
What matters to the Russian and to a degree to a Western economy is that Russian ruble continues to show the strength and resiliency against dollar and euro and for the reasons that have to do not with the strength of Russian economy, but with the fact that Russia is overflowing with Western currency that very few people there want to have. So why suddenly Russian individuals and businesses don't want to have dollars and euros anymore? This is because their capability to exchange these fiat currencies for something useful was significantly reduced by sanctions. So on one hand appreciation of the ruble in Russia made Chinese imports way cheaper in Russia, and this works against struggling manufacturing sector in the country. On the other hand strong local currency has undercut budgetary infusions from resource exports, as stronger ruble means less rubles for the budget, that went from 3 trillion surplus in 2021 to one trillion deficit in 2022.
But the most important and menacing thing for Russia is that inequivalent trade exchange continues. This year alone trade surplus is expected to reach 250 billion dollars. To explain this in layman terms, Russia continues to export real resources out of the country in exchange for fiat money that it can't use. If before the start of the SMO in February this model worked, albeit poorly, now it comes to a point where it couldn't be sustained for much longer. If we look at the Russian trade surpluses historically between 1994 and 2021 we'll see that Russia had total trade surplus of 3 trillion dollars that ended up in the Western bank accounts through different kinds of offshore schemes. Taking into account regular capital outflow from Russia that for the same period reached 2 trillion dollars, total donation by Russia to the international monetary system was 5 trillion dollars plus. Probably the most significant donation by any country during this period.
By comparison, all of CBR's physical gold reserves are estimated to be at about 130 billion dollars now. If we look at the figures above the difference is an order of magnitude. This helps us to understand that the real game here is not gold but other physical riches that country has and gives them away in exchange for basically nothing. How long can this continue? I don't think for much longer, maybe a year, at most. Some smart people suggest for Russia to start building their reserves not based on gold, but using other types of resources, like non-ferrous metals. Aluminum, for one, is a form of stored energy. But that may be a topic for the next note.
So this gold for rouble scheme is one big nothing burger! But what about the other shell game? The so called gas for rouble scheme looks like a shell game to me also. Here is why. Russia's major European gas customers do not hold rouble balances or rouble bonds. So they have convert their Euros to rouble and then pay for the gas in rouble. Presumably Gazprom Bank does the conversion. Then Gazprom Bank has the Euro payments and the rouble transactions look like mere bookkeeping entries. Perhaps Gazprom collects some extra fees for transactions? But where do the Euros go? Does Gazprom Bank decorate its office walls with them? Does it transfer them CBR in exchange for what? Does it use them to purchase stuff in the international markets? Does it exchange them for some other currencies in the FX market?
The gold pegged ruble is a distraction from the real story. The eurodollar system is nearing collapse. Each future eurodollar of value has been promised to 25 people. In the forms of pensions, bonds, stocks, insurance... This must lead to a reset.
What new currency will rise to take the place of the eurodollar?
Aug 25, 2022·edited Aug 25, 2022Liked by Edward Slavsquat
"...Margarita Simonyan erotica..."
Ick ick ick...
Stop this what you are doing, Edvardski. Have you no religion? I have no choice but to defend myself. Spirits protect me! https://youtu.be/xxtxfxILWNQ
The inevitable corruption of 'indy media' is strange to watch. Along with obvious causes like bribery and blackmail, indy media, like all journalism including neighbor gossip, is chained by its weakest link to its sacred cows of political belief. Same with us peanut gallery members. We claim to be oh so open-minded yet are oh so attached to this or that conviction. Having lost faith in those who claim to rule with righteous authority, we turn said faith to Cthulhu and trust it to behave in a neat, orderly, and systematically evil manner so that we can say 'I told you so'.
***
Gold-pegged means nothing to me, btw. Gold is a lousy basis for a currency; only tradition recommends it. Sure, the Central Bank of Cthulhu will attempt some kind of digital global fiatsco but that will fail spectacularly, maybe even before it's launched, and we'll soon find ourselves trading currency of actual value -- like whiskey/vodka,gasoline/diesel/kerosene, ammo, 25-lb sacks of grain -- while the putative Masters of the World discover that their human Rottweiler/Doberman security goons have no use for them now that their money is useless. Who needs an evil megalomaniacal boss when you can have his mansion after feeding your former boss to the sharks in his underground swimming pool?
Memories of a time when Modern Progress seemed like not such a bad idea, maybe:
Well researched and to the point, Riley. It's so hard to muddle through the highly idealistic and also at times highly naive, alt-media pundits. There is some truth and good stuff to be gleaned from old timers like Escobar, even though their zeal oftentimes gets the better of them
So, one more reason to appreciate your witty analysis and research based utterances. Just don't become arrogant because your spot on on some stuff, OK? This is not a competition. You've got my email, let me know in clear terms how I can divest myself of my subscription to your garbage ;-) just in case my grandmother dies (fat chance) or some other calamity befalls me.
I think that the, er, beauty of this recording, the song's, er, theofascist (is that still a word?) lyrics, and the impeccable name of the singer with the voice of a hyper-sexed tuba, earn it a spot in the vintage jukebox in Riley's favorite hookah lounge.
(I am an Anglophile in terms of its hi-falutin art and general absence of lederhosen but despise it politically, especially its role in the bankster historical continuum. Chaucer, Beatles, Ralph Vaughn WIlliams, King Arthurian legend,Charles Hautrey, yes. Bank of England, Sir Baden-Powell<>Winston Churchill, etc., no. Although I do cherish how Winny handled prose. )
The pro-"Russia" (i.e. pro-Putin) "Indy" media in the West need to make their official song the Beatles' Nowhere Man, "Just sees what he wants to see." Thanks again, Riley.
But we’re still going to get the digital ruble, pegged to enslavement, right? Don’t shatter all my dreams.
I can't stand how Luongo, Ehret, and others are so willfully blind.
They're such fan boys that they ignore evidence to the contrary and then gaslight anyone that has a good point.
Same fkin thing with the vaccines and convid, like they're really dumb or just doing this to appeal to the people that want a hit of hopeium.
Either way, these guys are a joke and I stopped following them months ago.
Tom Luongo is an ahole in his response to that question. Sounds exactly like the "trust the science" people, instead "trust Russia".
Can't thank you enough for making me realize 've been inundated by nasty noise.
Another rant, this time uncharacteristically brief ))) Gold pegged ruble is as much of a legend as Russia selling their natural gas for rubles. Those who know how that scheme works understand that European buyer of gas is never touching no rubles, as according to the central ideological committee rubles are extremely toxic to Europeans! Instead they pay their negotiated price in euros, as they always did, and Gazprombank quietly exchanges these euros for rubles in the background. That is in short how resources for rubles scheme works right now. Another fatal blow, I'm sure.
This is one funny "documentary" video, Edward! Well, I have to admit, I may have been entirely wrong about your talents and you are not lost to the world of "La haute cinématographie"!
Oh, those entirely pro-russian pundits like Matt Ehret, Tom Luongo, Scott Ritter or The Duran duo and many others. I'm convinced that in an ocean of the pro-Western, pro-globalist pundits these people outnumbered by one to a thousand must also exist to provide some sense of balance in this world. But I could never understand how do they get paid? Some smart people must have developed clever schemes how to support daily lives of these individuals without leaving a trace of their financial connection to Russia. It is either that or a silent agreement exists, where such people on both ends of the bargain are allowed to be, like for the longest time RT was tolerated in exchange for Western media presence in Russia. I wish them well! They are the bellwethers of the official propaganda talking points from the Russian side that help us to see the bigger picture.
Now to the gold pegged ruble and things of this nature. The truth is it doesn't matter if ruble was pegged by gold or it was not. It doesn't matter for Russians that while having increased their purchases of the physical gold from Russia's banks do it at a price far exceeding what CBR may be buying it for from the gold miners. Nor does it matter for us here in the West as I'm not aware of the option to even open ruble account, let alone to exchange those rubles for a physical gold somewhere.
What matters to the Russian and to a degree to a Western economy is that Russian ruble continues to show the strength and resiliency against dollar and euro and for the reasons that have to do not with the strength of Russian economy, but with the fact that Russia is overflowing with Western currency that very few people there want to have. So why suddenly Russian individuals and businesses don't want to have dollars and euros anymore? This is because their capability to exchange these fiat currencies for something useful was significantly reduced by sanctions. So on one hand appreciation of the ruble in Russia made Chinese imports way cheaper in Russia, and this works against struggling manufacturing sector in the country. On the other hand strong local currency has undercut budgetary infusions from resource exports, as stronger ruble means less rubles for the budget, that went from 3 trillion surplus in 2021 to one trillion deficit in 2022.
But the most important and menacing thing for Russia is that inequivalent trade exchange continues. This year alone trade surplus is expected to reach 250 billion dollars. To explain this in layman terms, Russia continues to export real resources out of the country in exchange for fiat money that it can't use. If before the start of the SMO in February this model worked, albeit poorly, now it comes to a point where it couldn't be sustained for much longer. If we look at the Russian trade surpluses historically between 1994 and 2021 we'll see that Russia had total trade surplus of 3 trillion dollars that ended up in the Western bank accounts through different kinds of offshore schemes. Taking into account regular capital outflow from Russia that for the same period reached 2 trillion dollars, total donation by Russia to the international monetary system was 5 trillion dollars plus. Probably the most significant donation by any country during this period.
By comparison, all of CBR's physical gold reserves are estimated to be at about 130 billion dollars now. If we look at the figures above the difference is an order of magnitude. This helps us to understand that the real game here is not gold but other physical riches that country has and gives them away in exchange for basically nothing. How long can this continue? I don't think for much longer, maybe a year, at most. Some smart people suggest for Russia to start building their reserves not based on gold, but using other types of resources, like non-ferrous metals. Aluminum, for one, is a form of stored energy. But that may be a topic for the next note.
So this gold for rouble scheme is one big nothing burger! But what about the other shell game? The so called gas for rouble scheme looks like a shell game to me also. Here is why. Russia's major European gas customers do not hold rouble balances or rouble bonds. So they have convert their Euros to rouble and then pay for the gas in rouble. Presumably Gazprom Bank does the conversion. Then Gazprom Bank has the Euro payments and the rouble transactions look like mere bookkeeping entries. Perhaps Gazprom collects some extra fees for transactions? But where do the Euros go? Does Gazprom Bank decorate its office walls with them? Does it transfer them CBR in exchange for what? Does it use them to purchase stuff in the international markets? Does it exchange them for some other currencies in the FX market?
The gold pegged ruble is a distraction from the real story. The eurodollar system is nearing collapse. Each future eurodollar of value has been promised to 25 people. In the forms of pensions, bonds, stocks, insurance... This must lead to a reset.
What new currency will rise to take the place of the eurodollar?
"...Margarita Simonyan erotica..."
Ick ick ick...
Stop this what you are doing, Edvardski. Have you no religion? I have no choice but to defend myself. Spirits protect me! https://youtu.be/xxtxfxILWNQ
The inevitable corruption of 'indy media' is strange to watch. Along with obvious causes like bribery and blackmail, indy media, like all journalism including neighbor gossip, is chained by its weakest link to its sacred cows of political belief. Same with us peanut gallery members. We claim to be oh so open-minded yet are oh so attached to this or that conviction. Having lost faith in those who claim to rule with righteous authority, we turn said faith to Cthulhu and trust it to behave in a neat, orderly, and systematically evil manner so that we can say 'I told you so'.
***
Gold-pegged means nothing to me, btw. Gold is a lousy basis for a currency; only tradition recommends it. Sure, the Central Bank of Cthulhu will attempt some kind of digital global fiatsco but that will fail spectacularly, maybe even before it's launched, and we'll soon find ourselves trading currency of actual value -- like whiskey/vodka,gasoline/diesel/kerosene, ammo, 25-lb sacks of grain -- while the putative Masters of the World discover that their human Rottweiler/Doberman security goons have no use for them now that their money is useless. Who needs an evil megalomaniacal boss when you can have his mansion after feeding your former boss to the sharks in his underground swimming pool?
Memories of a time when Modern Progress seemed like not such a bad idea, maybe:
http://9bill.blogspot.com/2020/04/a-sad-songformer-glories.html
"The gold-pegged ruble did not take place." — Jean Baudrillard
Ruble "pegged" with gold made me think of a rather obscene action by the bankers 🤣
Poor ruble, ruthlessly violated from behind
Well done expose the lies. They are no different to the injectable cure all.
The light of TRVTH is so bright it hurts my eyes!
Well researched and to the point, Riley. It's so hard to muddle through the highly idealistic and also at times highly naive, alt-media pundits. There is some truth and good stuff to be gleaned from old timers like Escobar, even though their zeal oftentimes gets the better of them
So, one more reason to appreciate your witty analysis and research based utterances. Just don't become arrogant because your spot on on some stuff, OK? This is not a competition. You've got my email, let me know in clear terms how I can divest myself of my subscription to your garbage ;-) just in case my grandmother dies (fat chance) or some other calamity befalls me.
I think that the, er, beauty of this recording, the song's, er, theofascist (is that still a word?) lyrics, and the impeccable name of the singer with the voice of a hyper-sexed tuba, earn it a spot in the vintage jukebox in Riley's favorite hookah lounge.
https://youtu.be/iefmyjEv6_0
(I am an Anglophile in terms of its hi-falutin art and general absence of lederhosen but despise it politically, especially its role in the bankster historical continuum. Chaucer, Beatles, Ralph Vaughn WIlliams, King Arthurian legend,Charles Hautrey, yes. Bank of England, Sir Baden-Powell<>Winston Churchill, etc., no. Although I do cherish how Winny handled prose. )
https://wp-media.patheos.com/blogs/sites/188/2019/05/menintights.png
Hi to everyone.
Does anybody know the position of Alexander Dugin about the Corona circus?
The pro-"Russia" (i.e. pro-Putin) "Indy" media in the West need to make their official song the Beatles' Nowhere Man, "Just sees what he wants to see." Thanks again, Riley.