Re: Petrodollar further analysis - Putin buying gold with “little fanfare, but on a large scale”
Further, I found this a good read: http://sputniknews.com/russia/20160226/1035375018/russia-gold-reserves-incre... Against the Dollar? What Russia’s Increase of Bullion Reserves Could Mean 10:30 26.02.2016(updated 10:52 26.02.2016) Get short URL 11643350 Russia seems to be launching a silent attack on the supremacy of the dollar and the Western countries, as President Putin is buying gold with “little fanfare, but on a large scale”; as there is no evident economic reason for such an increase, the move will provide Russia with an insurance against crises, according to German media. “It is a silent attack on the supremacy of the dollar,” states German newspaper Die Welt, referring to Russia’s recent increased resupply of its gold reserves. The outlet notes that “it is a declaration of independence, proclaimed in secret.” ( Bank bar manufacturing line opens at Yekaterinburg Plant ( © Sputnik/ Pavel Lisitsyn ( Can Russia's Big Gold Hedge Save the Ruble? “Russian President Vladimir Putin is buying gold at the moment — with little fanfare, but on a large scale,” it says, noting that in January alone Russia’s gold reserves increased by 20 metric tons. Russia’s stock now stands at more than 1,300 tons, it adds (according to statistics portal Statista, as of February 2016, it is already almost 1,400 tons — 1,392,9). “While politicians fear a new Cold War between Moscow and the West, it has already begun in the financial sector,” the newspaper further states. It also explains that there are no evident economic reasons for such an increase, therefore it might be also an attack on the supremacy of the reserve currencies of America and Europe. “One who buys gold reduces the dominance of the Western currencies,” the newspaper states. ( Yekaterinburg Non-Ferrous Metals Processing Plant ( © Sputnik/ Pavel Lisitsyn ( Putin's Payoff? Gold Surges Amid Stock Market Mayhem Since 2005, Russia’s gold reserves have nearly quadrupled, it says, adding that in the last twelve months they had grown by more than 200 tons. Ian Bremmer, an American political scientist specializing in US foreign policy and the president of Eurasia Group, a political risk research and consulting firm told the newspaper that money is often used as a financial weapon and in fact, Washington has used the dollar in the past to put pressure on Russia. Therefore the Russian head of state apparently wants to avoid such dependency in the future by using bullion reserves to insure against crises. The metal is recognized and is sought after worldwide, and its stockpile can’t be increased artificially. The newspaper also notes that there is only one country that is buying gold even more actively, and that is China. Its reserves now total nearly 1,600 tons (according to Statista — 1,762,3) – it ranks fifth globally, after the US, Germany, Italy and France. Russia comes sixth. Apparently, China also hopes to get rid of the dominance of Western reserve currencies.
One nail at a time... here's the next one. Lest anyone ever wondered why sanctions were -really- brought against Russia :) http://russia-insider.com/en/another-nail-dollars-coffin-russia-and-india-pl... Another Nail in the Dollar's Coffin: Russia and India Plan to Trade in National Currencies Moscow and New Delhi plan to begin trading in their own currencies. The announcement is the latest indicator that BRICS nations are moving away from the dollar Matthew Allen BRICS is dumping the dollar BRICS nations, led by Russia, are beginning to chip away at the dollar. As we reported earlier this month, Russia and China are now settling oil payments in yuan ( http://russia-insider.com/en/politics/saudi-arabia-has-lost-asia-russia-now-... ), a move that western analysts say is responsible for Russia overtaking the Saudis as China's leading oil exporter. Iran (not a BRICS member, but considered a key partner, as well as a potential member) has also sent clear signals that it wants to abandon the dollar: Tehran is now demanding euros ( http://russia-insider.com/en/politics/iran-dumps-petrodollar-wants-euros-all... ) for all oil sales. While these developments have so far centered around oil, Moscow is looking to conduct all trade in national currencies. Moscow and New Delhi are already drawing up the plans ( https://www.rt.com/business/333486-russia-india-currencies-exchange/ ): India and Russia are developing a road map for mutual settlements in national currencies which could open prospects for both countries, India’s Ambassador to Russia Pankaj Saran told RIA Novosti on Wednesday. "Transition to mutual settlements in national currencies of the BRICS looks promising. Russian and Indian companies are interested in using national currencies in trade settlements,” he said, adding that there is already a mechanism in place for them to use. According to the ambassador, New Delhi and Moscow aim expanding economic and trade cooperation. They have already chosen priority sectors such as agriculture, pharmaceuticals, jewelry, technical equipment and machinery, oil and gas, and textiles. The decision is expected to drastically boost trade between the two countries. Russia and India are hoping to triple trade to $30 billion over the next ten years. The two nations have also signed a number of landmark defense and energy deals. New Delhi has already approved the purchase of five S-400 air defense systems. BRICS is dumping the dollar -- and Russia is leading the charge.
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Zenaan Harkness