Thursday , 18 August 2022

We Are On the Cusp of a Historic Financial Earthquake – Here’s Why

…The USD’s days of unchallenged dominance are quickly coming to an end – something even the Fed Chairman openly admits saying “It’s possible to have more than one reserve currency” – which means we are likely on the cusp of a historic financial earthquake…that could alter that direction of the U.S. forever and mark the biggest economic event of our lifetimes.

@$$4$…In the wake of Russia’s invasion of Ukraine, the U.S. government has launched its most aggressive sanctions campaign ever, exceeding even those imposed on Iran and North Korea. Here’s a brief rundown of what has happened.

  1. The U.S. and European governments froze the U.S. dollar and euro reserves (worth around $300 billion) of Russia.
  2. Russian banks have been kicked out of SWIFT, the system to send international wire transfers.
  3. A stampede of Western companies have left Russia and are banning average Russian citizens from using their platforms.
  4. Popular cryptocurrency exchange Coinbase blocked over 25,000 accounts linked to Russia.
  5. Visa, MasterCard, and American Express have cut off Russia from their networks…

These are just a few examples of how Russia is being cut off from the U.S.-dominated global financial system but, of course, all this comes as no surprise to the Russians who have prepared for this exact outcome for many years together with China…Instead of capitulating to U.S. pressure, Russia immediately implemented alternatives to bypass the U.S. dollar and U.S.-controlled financial institutions.

  • When U.S. credit card companies blacklisted anything to do with Russia from their systems, Russian banks seamlessly switched much of their payment processing to China UnionPay.
  • Russia switched to an alternatives to SWIFT to facilitate international financial transactions.
  • China, India, Iran, and Turkey, among other countries, announced, or already are, doing business with Russia in their local currencies instead of the U.S. dollar.

All of this is a big problem for the U.S. government which reaps an enormous amount of power because:

  • the U.S. dollar is the world’s premier reserve currency which allows the U.S. to print fake money out of thin air and export it to the rest of the world for real goods and services—a privilege no other country has and
  • gives Uncle Sam tremendous leverage to pressure people and businesses alike.

By isolating Russia and its trading partners, [however,] the U.S. government is incentivizing almost half of mankind to find alternatives to the dollar. In other words, they are undermining their own racket and promoting de-dollarization on an unprecedented scale.

Here’s the bottom line. These historical events are unfolding rapidly and…recent developments in the gold market are the giant flashing red sign that something big could be imminent.

As part of their strategy to insulate themselves from U.S. sanctions,

  • Russia has accumulated over 2,300 tonnes…worth over $140 billion as of writing which is held in Russia so the U.S. cannot touch it short of a military invasion.

Russia’s gold is a big deal because:

  • it gives them access to an apolitical neutral form of money with no counterparty risk…[which,] along with China’s, could form the foundation of a new monetary system outside of the control of the U.S. and
  • such a move would be the final nail in the coffin of dollar dominance, and recent events suggest they could be imminent.

It seems that the U.S. and their allies sense that Russia has nothing to lose and everything to gain by playing the gold card…which is why they…have kicked Russia out of the London Bullion Market Association. Also, a group of US senators introduced a bill that aims to sanction anyone buying or selling Russian gold. 

The above version of the original article by Nick Giambruno was edited [ ] and abridged (…) to provide you with a faster and easier read. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

 

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Related Articles From the munKNEE Vault:

1. Russian Gold Is Hit With De Facto Ban From Key London Market

London’s gold market has suspended all Russian refineries from its accredited list, meaning their newly minted bars can no longer trade in one of the world’s most important bullion centers.

2. Why SWIFT Matters To Russia

There are 862 individual SWIFT codes of Russian origin, belonging to somewhere around 300 financial institutions out of a total in the bank network of 11,000 and removing them from the network would prevent those banks from using the network to facilitate transfers.