2022-03-29
This slightly breathless report from the Hal Turner Radio Show notes that Russia is reported to have linked the rouble to gold at a rate that will have financial whizz-kids selling out of other currencies and buying into the rouble until the value of those currencies expressed as the purchasing power of gold matches the purchasing power of the rouble.
As they point out, this move may be unwelcome in western financial circles.
There will be a run on dollar/euro denominated assets such as bonds in favour of real assets such as property and gold-backed currencies. Unless governments move in to control foreign exchange transactions of course.
The bond market is huge.
"the last guy on this planet who tried to back a currency with Gold, was Muammar Quadaffi of Libya"
Whether the same fate can be bestowed upon Putin as was visited upon Gadaffi is debatable, but no doubt some form of retribution is being concocted.
I note also that China is poised to officially launch a digital yuan (also known as the renminbi - "people's currency") any time now if it hasn't already.
A Russia-China gold-backed currency axis to challenge the fiat currencies of the western central banks?
I'd say that the writing is on the wall for all to see.
It won't be the last.
