Economy splinters

[blackfeather]

There is a bill in congress to sanction Russian Gold sales.  Basically punish anyone willing to do trade with Russia in exchange for gold.  When I read this I thought, are they crazy?  Take a small country that trades normally with Russia, will they give up that trade?  Willing to give up gold for their goods? Or will they take inflating US dollars in trade with someone else?  This sums it up very well...

Which is why also on 7 March, Zoltan Pozsar the guru of global financial infrastructure who works with Credit Suisse, came out with an astounding report titled "Bretton Woods III", in which he says:



"We are witnessing the birth of Bretton Woods III – a new world (monetary) order centered around commodity-based currencies in the East that will likely weaken the Eurodollar system and also contribute to inflationary forces in the West.



A crisis is unfolding. A crisis of commodities. Commodities are collateral, and collateral is money, and this crisis is about the rising allure of outside money over inside money. Bretton Woods II was built on inside money, and its foundations crumbled a week ago when the G7 seized Russia’s FX reserves…"



And with the US "Stop Russian GOLD Act" now targeting the Russian gold reserves, this has just accelerated Bretton Woods III to a whole new level.

www.zerohedge.com/markets/us-tees-stop-russian-gold-act-triggering-lbma-and-comex-eject-russian-refiners

We are working hard to dedollarize about half the world.  

It's early to declare if Western sanctions will paralyze Russia, but what appears to be happening is that the global economy is becoming more fractured than ever as a great power struggle between the West and East flourishes.....

The global economy is splintering, and Russia could be inclined to unleash retaliatory economic measures outside the Eurasian Economic Union. This area in Eastern Europe, Western Asia, and Central Asia, is also home to some of China's Belt and Road Initiative, also known as One Belt One Road... and likely includes numerous so-called "friendly countries" including China.



Meanwhile, China FM Spokesperson, Zhao Lijian was quoted earlier today as saying Beijing will retaliate with a "serious response" if the US hits sanctions on China over Ukraine.

www.zerohedge.com/geopolitical/russia-considers-temporary-ban-agricultural-products-countries-outside-eurasia

The world is polarizing into two spheres of influence.  This must happen before a major world war.   The leaders of the west, in a hurry to virtue signal over Ukraine, are driving this separation without considering the consequences of their actions.  

[Ozarks Tom]

Brazil, Russia, India, China - the BRIC nations have been working toward de-dollarizing for several years. This invasion and sanctions could very well move it along no doubt. One problem of course is the EU willing to trade in other than the euro and the dollar? I don't see any advantage for the majority of nations to change what's been working for 70 years.

If Russia/China are wanting to establish gold backed currencies they'd have make their notes redeemable in gold. That's why we left the gold standard, it drains a country's gold supply and limits their printing of bills.

I don't see it happening.

[sawmilljim]

Mar 13, 2022 20:49:27 GMT Ozarks Tom said:

Brazil, Russia, India, China - the BRIC nations have been working toward de-dollarizing for several years. This invasion and sanctions could very well move it along no doubt. One problem of course is the EU willing to trade in other than the euro and the dollar? I don't see any advantage for the majority of nations to change what's been working for 70 years.

If Russia/China are wanting to establish gold backed currencies they'd have make their noted redeemable in gold. That's why we left the gold standard, it drains a country's gold supply and limits their printing of bills.

I don't see it happening.

China is the big player at this point China has the US over a barrel. I would bet they got other countries over a barrel to. If push comes to shove even though China and India don’t see eye to eye on a lot of things that might not keep them from trading with out using the dollar. Also if China backs Russia all the way it can get interesting fast to put it mildly.

[blackfeather]

The Saudis have been talking about taking Yuan for oil for a few years now but I guess it has now just become the thing to do, and Mohamad bin Salman refuses to take calls from Biden now.

[Ozarks Tom]

Mar 16, 2022 19:50:13 GMT blackfeather said:

The Saudis have been talking about taking Yuan for oil for a few years now but I guess it has now just become the thing to do, and Mohamad bin Salman refuses to take calls from Biden now.

In a way, I can't fault the Saudis from sticking a finger in Biden's eye.  He's basically underwriting Iran's nuclear project with this phony "agreement" being negotiated by of all people Russia and China.

Why would he do that?  Why, mean tweets of course.

[tarbe]

I went out today at lunch to buy another 40 ounces of silver.

I bought silver last week, when spot was a little more than a dollar higher than it is today.

The very same silver, at the very same shop was a dollar higher out the door, than last week when spot was a dollar+ higher.



I think this tells me supply/demand has tightened, at least in the Ozarks!

[Ozarks Tom]

Mar 16, 2022 22:49:54 GMT tarbe said:

I went out today at lunch to buy another 40 ounces of silver.

I bought silver last week, when spot was a little more than a dollar higher than it is today.

The very same silver, at the very same shop was a dollar higher out the door, than last week when spot was a dollar+ higher.



I think this tells me supply/demand has tightened, at least in the Ozarks!

Wait a month, that investment will seem like you've stolen money.