by Mintmoondog
I have seen too many trolls yapping that what Russia recently did with the 5000r/gram gold was “not” a technical gold standard.
Please ignore two things 1. Everyone has their own strict definition of what a “gold standard” requires. IMO – it doesn’t matter. When Russia declared they are buying 1 gram of gold for 5000 rubles they have definitively set a standard for trade. 2. When they also took all VAT taxes off the private purchase of gold they have fully monetized gold to their ruble to their general population. Everything else is irrelevant. I have read several posters say it is only a gold standard if you can redeem gold through central banks. Central banks? F*ck central banks – they are the enemy we are trying to destroy and yet you get morons here who say you cant validate a gold standard trade without them? Completely moronic.
Countries can trade bi-laterally and use physical gold or currencies that they know are backed by gold. Further there is no rule that a currency has to be backed 1 for 1 with gold – and to be honest anyone with a financial background would look puzzled as to what that actually means anyway. It can certainly be floating and the parties will assess that risk (IE the whole reason for 1971).
- Don’t fret about the change in exchange from 5000 rubles to some odd number below. This is just a required iteration of the exchange standard due to the fact that the dollar trade is probably collapsing even faster than the Russians expected. Last I heard it was down to 70ish…this is from 80 just a week ago…and as I posted this can indeed go to 50, 20, 10…1 doesnt’ matter. Russia has no National debt, no trade imbalance and their economy is commodity based (not manufacturing). The iterations of the exchange price may be a tamping of the brakes to allow time before the dollar crashes.
MOST IMPORTANT! Did any of you notice that when Russia announced an adjustment of their gold price per ruble they also slipped out a price for silver? They did not do this before. IMO this is a declaration that their central banks are now on the prowl for physical silver. I think this may be the first open purchase of silver by any country in 1/2 a century….this should be investigated and discussed.
EDIT: the dollar milkshake theory. Look, there is merit here – but what Brent and most experts know is that the dollar is part of a three legged stool with the Euro and Yen…I have taught this for many years and one can speak to any of my students: the Yen and/or Euro will collapse before the dollar. When they collapse the dollar will live for only 2-3 weeks before it goes. The yen and Euro are derivatives of the Brettonwoods $$$. So the dollar may go “up” against those two; but what will the dollar go down against? Gold – but if the central banks control paper gold then the ruble might be the surrogate