It cannot be understated Russia’s response to Western establishment sanctions, in particular the freezing of around $300 billion of Russian foreign reserves and gold in Western Banks. The threat of using these funds to rebuild Ukraine without Russian consent only further undermines the unipolar fiat monetary system.
Russia responds by:
1.requiring Ruble or Gold for purchase of Russian gas from unfriendly countries (and already started to cut gas supplies to Germany through the Yamal-Europe pipeline, critical infrastructure for Europe gas supply and cut off Russian gas to the UK for the UK’s establishment anti-Russian everything stance, which will only add to the increasing inflation in the UK).
2. increasing purchases of gold through linking the Ruble to Gold as determined by the Bank of Russia.
3. giving unfriendly countries one month in good faith to ensure Russian gas is paid for in Ruble or Gold, or else gas will be cut off with catastrophic consequences for the EU economy.
As image above shows Russia has stabilized its currency, and the Ruble should strength versus the US$ as more and more Russian trade is conducted in Ruble or Gold.
This statement summarizes the brilliancy of Russia’s move:
“Linking the ruble to gold via the Bank of Russia’s fixed price has now put a floor under the RUB/USD rate, and thereby stabilized and strengthened the ruble. Demanding that natural gas exports are paid for in rubles (and possibly oil and other commodities down the line) will again act as stabilization and support. If a majority of the international trading system begins accepting these rubles for commodity payments arrangements, this could propel the Russian ruble to becoming a major global currency. At the same time, any move by Russia to accept direct gold for oil payments will cause more international gold to flow into Russian reserves, which would also strengthen the balance sheet of the Bank of Russia and in turn strengthen the ruble.”
The US reserved currency aka petro$ will face less and less demand as commodity exporting countries follow Russia’s move. The inevitable decline in the US$ will have the reverse effect of the Western sanctions on Russia. It should be noted the USfiat$ was already in peril with mounting national debt of $30.35 trillion, low near zero interest rates, increasing inflation (40 year high of 7.9%), and waning growth.
As images above show, Europe is in significant financial trouble with increasing inflation, low and even negative interest rates, weakening Euro, and growing debt… phasing out cost effective Russian gas will only accelerate the decline… the EU leadership out of Brussels and Germany appears out of touch with reality, while business leaders are sounding alarm:
“To put it bluntly: This (Russia cutting off gas supply) could bring the German economy into its worst crisis since the end of the Second World War and destroy our prosperity. For many small and medium-sized companies in particular, it could mean the end. We can’t risk that!”…
“A delivery stop for a short time would perhaps open the eyes of many – on both sides. It would make clear the magnitude of the consequences. But if we don’t get any more Russian gas for a long time, then we really have a problem here in Germany. At BASF, we would have to scale back or completely shut down production at our largest site in Ludwigshafen if the supply fell significantly and permanently below 50 percent of our maximum natural gas requirement.”
Is the Russian response to Western sanctions according to plan by the Western deep state or something not anticipated?
In the State of the Union Address, puppet Biden was bragging sadistically at the weakening of the Ruble to 140, but now the puppet is silent on the recent turn of events. The Western establishment sanctions have only hurt the everyday Westerner with increased inflation that was already increasing before the Russia Ukraine conflict started.
Putin’s approval ratings have soared to 86% as he addresses long standing national security issues in Ukraine and the one-sided world order.
Puppet Biden’s policy to give temporary relief to the US consumer via lower US gas prices by draining US strategic reserves is putting political interests ahead of strategic and with nominal impact, and the oil price will only surge higher when the reserves are replenished while in the meantime weakening US emergency preparedness.