Legendary financial & gold expert Jim Sinclair has issued an email alert to subscribers warning that the dollar’s reaction to the US stepping up sanctions against Russia on Thursday indicates that the market knows Russia has a nuclear economic weapon it can detonate on the West by dropping the petro-dollar standard.
Is Puting preparing to nuke the petro-dollar by announcing new Russia gas and oil deals in yuan, euros, real, and gold?
Sinclair’s full MUST READ alert is below:
Yesterday, Thursday the 20th, the Obama Administration stepped up the sanctions against Russia over Crimea. The sanctions still focus on selected banks and targets in terms of people.
This is a very dangerous “tit for tat” approach. An eye for an eye only ends up with a blind world.
The dollar reacted because that market (dollar) knows Russia has a nuclear economic weapon it can let loose on the West. The US dollar depends on its universal use in settling energy contracts.
This is known as the Petro Dollar and is the true dollar standard. When Nixon came off the gold standard for the dollar he adopted the energy standard for the dollar. Should Russia move away from utilization of the US dollar as the standard, the US dollar will crash into the .71 to .72 level on the USDX.
Western Sanctions against Russia is a game of “Financial Chicken” that the US dollar cannot win.
Visa, MasterCard Freeze Cards at Sanctioned Russian Banks
MOSCOW, March 21 (RIA Novosti) – US-based Visa Inc. and MasterCard Inc. have stopped processing payments by cardholders at Russian banks targeted by the United States for financial sanctionson Thursday, a number of Russian banks said Friday.
The news signaled the first impact on ordinary Russian citizens by a series of Western sanctions against Russia over the ongoing situation in Ukraine, the greatest geopolitical showdown between Russia and the West since the end of the Cold War.
Earlier sanctions had been restricted to targeting high-level officials.
Several banks reported that customer cards were being declined for payment and that they had received no advance notification of the changes. Customer deposits remained unaffected.
Visa confirmed Friday that it had blocked cards issued by four Russian banks for use on its payment network for online or retail purchases.
Visa said the list of the banks facing sanctions announced by the US Treasury on Thursday includes Rossiya Bank, SMP Bank, Sobinbank and Investcapitalbank, the latter two being part of Rossiya Bank.
“The management of Rossiya Bank understands the difficulties experienced by clients in this situation, and assures them that everything possible is being done to help,” Rossiya Bank said in a statement on its website.
The bank added that customers could still withdraw cash from the bank’s ATMs without difficulties, as well as those owned by partner banks.
Sobinbank said that its call centers had been swamped by customers who were abroad and suddenly found their cards were not working.