Pieter Bruegel the Elder. The Parable of the Blind.
Czech version: https://lacogroessling.wordpress.com/2014/04/08/rusko-spousti-akci-dvojhlavy-zlaty-orel-a-zapad-pochopil-ze-zacal-jeho-beh-o-zivot/
What is going on? Nothing less than the introduction of the Russian ruble as currency under gold standard.
Why? Because the Russians lost patience with the West. In particular, the Americans can not separate their sense of superiority from racional thinking and effort of world domination and so they have tried again and again in the last few weeks a some of theirs favorite tricks.
They tried to show, who is the boss on dunghill, and so centers of MasterCard and VISA blocked the operations of payment cards issued by the Bank Rossia . The last straw, when the Russian patience defected, was blocking of a payment from Russian Government via clearing of international payments sytem SWIFT ( Society for Worldwide Interbank Financial Telecommunication – Society for Worldwide Interbank Financial Telecommunication ) to some insurance company. Russia and also China have worked hard for several years on their own card payment and clearing systems . Warnings in the last year was the imposition of sanctions against Iran, including the closure of access for Iran to the SWIFT, which made the payments for Iranian oil deliveries too difficult. The problems was so heavy, that Iran had to redirected the payments from USD to the gold.
The events of recent weeks accelerated this planned action a lot. President Putin ordered to start the project Double-headed golden eagle. Russian National Bank starts minting five ruble gold coin contains 0.1244 troy ounces of gold (1 troy ounce = 31.1034768 grams) embossed with double-headed eagle with shield and crown. That will be an alternative to the U.S. dollar and the euro.
Another step toward the withdrawal of Russia from trading in USD and EURO were order to Sberbank, to stop to release of retail consumer loans in foreign currency. Russia can be able to afford massive minting of gold coins, it has the second highest gold reserves on the world, 1,500 tons of gold bricks in safes in the Russia National Banks and only in the newly opened mine in the Magadan are other 2,000 tons mineable.
What will be the consequences of this project?
Russia, after a creating of sufficient stock of gold rubles, will ask the customers to pay for the supply of raw materials, oil and gas in gold rubles, not in the green frog skins, as the Indians called dollars, or in slightly less impaired Euro . This will leads to gradually transition of international payments from dollars to rubles, and to the revelation of the true value of the dollar, as completely devalued currency, with worth of only printed paper. At the same time Russia and China will force to the world’s banks to accept a gold ruble and jüan and to participate the national SWIFT and payment cards systems. Who will participate, gets Russian gas and oil, who will not, will calculate losses and less bank profits .
Of course, Russia will continue in steps and in consultation with China , as a sudden withdrawal of the U.S. dollar would lead to a depreciation of the foreign currency reserves of the two major creditors of the West. The get rid of hundreds of billions of frog skins from Russian and China´s national reserves will therefore be gradually and coordinated. However, there is no reason to prolong this operations more than next five years .
The inevitable fall of the USD as a reserve currency will continue in the inflation jump on dollar markets and subsequent measures of the U.S. Federal Reserve which will be obliged to raise interest rates.
After that, the turn will lead to increase of interest rates on U.S. Government bonds, but also the debts of U.S. businesses and individuals connected with USD markets or currencies bound to the U.S. dollar, this all will reflect in the decline in the overall health of the U.S. economy. Similar effect will have the project of Two-headed golden eagle on the economies in colonial dependence of the USA, the Czech including. The inevitable result of the devaluation of the dollar will be more realistic price of the gold, the increase might be more than tenfold from the current $ 1,250 per ounce.
The whole crisis in Ukraine always more and more shows things in its true light, as a desperate attempt of the economic rescue of indebted West.
Russia will concentrate attention on usuall reactions of the debtors against creditors. Namely, to kill a creditor and via this way get rid of debt. These efforts will be even more likely , after the rise of social unrest in the countries affected by sudden inflation. But Russia will handle it.
The Czech Republic has only 5 years, to adapt itself to this revolution in the international financial system.
mlýn laca grősslinga (Laco G. Mlynář) 