A New Gold Standard? Kremlin Confirms Intention to Back Ruble with Gold and Commodities
The comments below are an edited and abridged synopsis of an article by Ronan Manly
On April 26, Nikolai Patrushev, Secretary of the Russian Federation’s Security Council, said that Russian experts are working on a project to back the ruble with gold and other commodities. Patrushev is one of Russia’s most powerful security/intelligence officers and a close ally of Prime Minister Vladimir Putin.
The Security Council is chaired by Putin. Other members include Deputy Chairman Medvedev Dmitry, Prime Minister Mikhail Mishustin and Foreign Minister Sergei Lavrov.
So when Patrushev says that Russia is working on a plan to back the ruble with gold and commodities, it is being said by the highest echelons of the Russian government.
Up for discussion: Intrinsic value; a new orthodoxy; the West vs. the rest; and conclusion—a new gold standard?
“In late March when the Bank of Russia offered to buy gold from Russian banks at a fixed price of 5000 rubles per gram, this was the first step in linking the ruble to gold. That move also put a floor price under the ruble and acted as a catalyst for the ruble to re-strengthen ground against the US dollar that had been lost in late February/early March.”
“During the same week in late March, Putin also informed the global market that non-friendly importers of Russian gas would have to pay for Russian natural gas using rubles. That move (which we are now seeing playing out in the EU) was the other side of the equation, linking the ruble to commodities.”
Now Patrushev and the Kremlin are confirming the linking the ruble to gold and commodities. In other words, the beginning of a multilateral gold and commodity-backed monetary system, i.e. Bretton Woods III.