Russia Plans To Unleash Gold-Based Currency: Gold Soars to $1,817 as Gold Futures Surge Another $57 And Silver Hits $23
The comments below are an edited and abridged synopsis of an article by King World News
Alasdair Macleod examines the current state of the fight for hegemonic control between the US on one side and Russia and China on the other. Ukraine is about to endure a winter without power and adequate food, potentially leading to a humanitarian crisis.
The other front is financial, with the US facing a coordinated attack by Russia and China on US-dollar hegemony. Russia is planning a replacement trade settlement currency, which could unleash a flood of foreign-owned dollars onto the foreign exchanges.
There is no way of knowing how advanced this plan is, but indications point to a gold-based digital currency. Moscow establishing a new gold exchange, Asian central banks accumulating additional gold reserves, and Saudi Arabia seeking non-dollar payments for oil sales are all circumstantial evidence.
There has been a shift away from the ‘everything’ financial bubble, with the prospect of higher interest rates looming. The reasons for foreign ownership of fiat dollars are diminishing, and a successful new Asian trade currency will only add to the US dollar’s woes.
Could all this compel the US to de-escalate with respect to sanctions against Russia? The argument to do so has become compelling. It is also a way to lower energy prices, giving central banks needed room for interest rate manoeuvre.
Up for discussion: Russia is making the most of winter; negotiations will not be a slam dunk; the EU dimension; the conflict between the US and the two Asian hegemons is escalating; the dollar’s hegemony is under threat; and managing foreign dollar liquidation.