Alasdair Macleod: Putin to Use Gold As a Weapon Against the West!

gun forcedThe West is not just confronting Russia, but potentially China and the other Shanghai Cooperative Organization members as well. Russia’s relationship with the SCO brings with it the possibility of using gold as a weapon against the West, because most governments involved with the SCO have been actively buying gold while western central banks have been providing it.
So far the SCO members have been content to accumulate the west’s gold on falling prices, being careful not to disrupt the market.

We cannot say the Ukrainian crisis is over. It is more than likely Putin will not be fully satisfied until there is a Russian-friendly government in Kiev. And if a senior Russian politician cares to have another conversation with China over maximizing turmoil on Wall Street, driving up the gold price is the obvious financial weapon of choice.

 

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Submitted by Alasdair Macleod, GoldMoney:

There is a fascinating story from Robert Peston, the BBC’s business editor about his interview with Hank Paulson, who was the US treasury secretary at the time of the Lehman crisis. Paulson said that he was told by the Chinese that they had a message from the Russians suggesting they club together to drive down the prices of Fannie and Freddie “to maximise the turmoil on Wall Street”. The Chinese declined, but in doing so they made sure the Treasury was aware that China and Russia know that between them they have the power to break western capital markets.

This presents a problem for NATO’s geopolitical strategists, exposed by Russia’s unchallenged absorption of Crimea. Assuming military options are a non-starter, the West’s financial condition is too fragile to withstand an alternative financial war with the world’s largest energy exporter and eighth largest economy, let alone a combination of Russia and China working together.
America also has a problem in the Pacific containing China’s territorial ambitions, including attempted possession of the Senkaku Islands from Japan and the Scarborough Shoal from the Philippines. Unless America punishes Russia adequately for her take-over of Crimea, China may be encouraged to believe that the US is a push-over. At least, that is the worry in Washington.

This is why the US and also the UK would have gone much further than the more parochial EU in imposing sanctions against selected Russians and Ukrainians. The division of interests within NATO has allowed Putin to outmanoeuvre the west. He is now taking the steam out of the situation by stating he has no further plans with respect to other Ukrainian regions. However, this is not believed by the Ukrainian government and the West, nor indeed by the Russian people, who were given a more gung-ho message.

China’s position in this should not be neglected. As co-founder with Russia of the Shanghai Cooperation Organisation (SCO), China is bound to be on Russia’s side or at least to not oppose her, a point driven home by her abstention on a US-led resolution at the UN censuring Russia over Crimea. Only this morning, Putin publicly expressed his gratitude to China.

This means that the West is not just confronting Russia, but potentially China and the other SCO members as well. Russia’s relationship with the SCO brings with it the possibility of using gold as a weapon against the West, because most governments involved with the SCO have been actively buying gold while western central banks have been providing it. So far the SCO members have been content to accumulate the west’s gold on falling prices, being careful not to disrupt the market.

We cannot say the Ukrainian crisis is over. It is more than likely Putin will not be fully satisfied until there is a Russian-friendly government in Kiev. And if a senior Russian politician cares to have another conversation with China over maximizing turmoil on Wall Street, driving up the gold price is the obvious financial weapon of choice.

 

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Comments

  1. Ahh, yet more here say and speculation. And if my Aunt had balls she’s be my Uncle, but I digress.

  2. ‘unless America punishes Russia ‘adequately’ for her takeover of Crimea’
    What the freep is this?   punishing Russia adequately?   that has to be the dumbest phrase I’ve seen lately since yesterday’s dumbest phrase
    What’s KLUMMAC going to do?  Take Putin out to the woodshed?  Have an arm wresting contest?  Whip it out to see who has the biggest.  Pistol duel at dawn?
    Crikey, this is one of the biggest problems on the planet.
     No, it’s the biggest problem on the planet and the puppet masters are grinning from ear to ear
    Psychopaths pretend elected to high office, looking to see how they can rack up the highest body count in the modern day
    version of the Hunger Games: The World on Fire.
    In this game, these lunatics don’t kill each other.  Their contest involves us and how many they can imprison, embeggar and destroy while they are in office
    I guess there must be a nice comfy castle waiting somewhere once the winner submits his or her count to the IOBC
    The International Official Body Count authority  tallies the bodies and then declares the winner.
    KLUMMAC, the prints of appeasement, is the winner hands down right now.  Well over 3,000 in drone kills and climbing
    Whoo Hoo  America America Uber Alles.
     Son of a bitch, this sort of stuff really pisses me off
    Soon enough Putin or Jinping will decide how to adequately punish America for its sins.
     And the reckoning is going to be a mother—    that’s half a word
    The Sino-Soviet Co Prosperity Sphere (Sarc) may have the last word in this matter

  3. If you believe BBC then you believe all the propaganda. They never let you know what’s the real intent. Looks like they are setting up the crash to blame it on Russia/China to me.

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