Ukraine is the Waterloo event for the USDollar.
Ukraine is the Waterloo event for the USDollar.
The 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. [Read more...]
Jim Sinclair Issues Alert: Dollar Reacting Because Market Knows Russia Has a Nuclear Economic Weapon
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: [Read more...]
Overall, U.S. and Western leaders should be lining up to thank Vladimir Putin for a painful but thorough lesson in how the adult leader of a nation protects his country’s genuine national interests. And, it must be noted, Putin is not teaching rocket science. Had Western leaders received a decent education — especially in the fields of history and human nature — they would have been absolutely certain from the start that any destabilizing Western intervention in Ukraine that even remotely threatened Russia’s assured access to its Crimean naval bases would provoke precisely the kind of Russian response that occurred. They also would have known that West and the UN could bleat forever about the requirements of various treaties and international law, but that a nation acting to protect what it perceives to be life-or-death national interests — as is Putin’s Russia — is both insane and suicidal if it refrains from acting because of a raft of documents designed to address Cold War conditions that no longer exist. [Read more...]
World renowned gold expert Jim Sinclair is issuing a warning of a massive downside risk to U.S. sanctions against Russia. Sinclair says watch the “struggling dollar” and Russia accepting any currency for oil and natural gas. Sinclair explains, “It’s struggling . . . because it smells the real teeth of retaliation for sanctions being in the simple acceptance of any currency whatsoever for payment for gas to Europe. Believe me, they will settle in other currencies. . . . It makes energy cheaper. Why in the world would anyone want to pay in dollars if they can pay in their own currency? Russia could retaliate in a way that would have phenomenal impact on the U.S. dollar. . . . Russia has the upper hand. They have it in their ability to turn the U.S. economy upside down and into collapse. There is no question whatsoever. Putin doesn’t need a nuclear bomb. He has a nuclear economic bomb that he can set off at any time.”
What would the price of gold be this year? Sinclair predicts, “Gold has $2,000 an ounce in its sites in 2014.” On silver, Sinclair says, “Silver is gold on steroids. When gold takes off, silver goes up faster. . . . So, the idea you are going to get an old high on silver or better is a given.”
Legendary gold trader Jim Sinclair’s MUST WATCH interview with Greg Hunter is below: [Read more...]
95.7% of Crimeans in Referendum Vote to join Russia, Change Currency to Ruble-Sanctions & Retaliation Next?
With nearly 96% of the vote approving Crimea’s return to Russia, the Crimean people have spoken, and will leave Ukraine and join the Russian Federation.
The White House has responded that it will not recognize the decision, and warns that severe economic sanctions against Russia may be implemented as soon as Monday.
Russia has responded that any economic sanctions by the West will be met with severe retaliation (i.e. the end of the petro-dollar).
Russia and NATO are playing a game of financial chicken over Ukraine, which is deeply concerning.
Russia appears to have calculated that the West would not dare to precipitate a financial and trade war with the largest exporter of energy on the planet. However, it appears that the West is ignoring economic risks: Russia is not to be permitted to invade a sovereign territory next to the EU’s border, so it’s political principals before money. To make the situation considerably more serious, China has weighed in on Russia’s side, as she was bound to do as co-founder with Russia of the Shanghai Cooperation Organisation.
The point is not lost on those interested in gold: it amounts to a financial war between long-time bulls in Eurasia, and long-time bears in the West.
All the golden cards are held by China and Russia while we Westerners have none.
Former Treasury Official: One Day the Chinese Will Buy 100 Tons of Gold, & We Won’t Be Able to Make Delivery
Former Assistant Treasury Secretary Dr. Paul Craig Roberts thinks the Neoconservatives in the U.S. government want war in Ukraine. Dr. Roberts says, “They definitely want war, of course. They’ve wanted it ever since Reagan was President. The Neocons were always saying we have to attack the Soviet Union, and Reagan said we are not going to win anything, we are going to end it. The Neocons got to where they really disliked Reagan because he wouldn’t take advantage of Soviet weakness to attack them. So, they are war minded. They produce documents that say nuclear war is winnable. So, they are basically crazy people; and, yet, they have determined the course of foreign policy since the Clinton Administration. Under George Bush, they controlled the show; and today, under Obama, the Neoconservatives control it.”
On gold, Dr. Roberts says, “To protect the dollar from Quantitative Easing (QE), the Fed is selling naked shorts in the gold market to keep the gold price from rising so rapidly that it exposes the worthlessness of the dollar. . . . The physical stock of gold in the West to meet delivery demand is diminishing rapidly. So, one day the Chinese will buy 100 tons of gold, and we won’t be able to make delivery. That would crash the system. It would just pop. So, there are things that could crash it suddenly. Regardless . . . the economy is going to gradually sink because there are no jobs, or no good jobs. . . So, there is not a recovery. The U.S. is a busted state. It’s completely busted.” [Read more...]
Jim Willie: Russia to Demand Rubles or Gold for Oil, US Dollar Will Decline By 80% in the Next 3 Years!
The Hat Trick Letter writer Dr. Jim Willie contends that the real problem for the West will be paying for oil and natural gas in something other than dollars. Willie warns, “What’s likely to come very soon is Russia is going to demand either rubles or gold bullion for their crude oil and their natural gas. . . . I don’t think it would be a shock to see the Russians come out and say we’ve got over 20,000 tons of gold, and we are going to back our ruble with gold. Screw the dollar. I think in the next year or so, the Russians and Chinese are going to let it be known that between them they own close to 40,000 tons of gold. They are going to have a real currency and do a real global reset and have a real return to the gold standard and screw the dollar with all its toxic sovereign bonds. One of the principle foundations of the dollar is not gold, it’s the military. We’re seeing it now.”
Dr. Willie predicts we will see a shocking “80% decline in the value of the U.S. dollar in three years.”
[Secretary of State, John ] Kerry, wallowing in his arrogance, hubris, and evil, has issued direct threats to Russia. The Russian foreign minister has dismissed Kerry’s threats as “unacceptable.” The stage is set for war. – Paul Craig Roberts [Read more...]
As Ukraine’s economy spins towards default, investors and bankers worry the financial turmoil will spill over into global markets, a scenario “nobody wants to deal with,” Arnaud Leclercq, Head of New Markets at Lombard Odier Darier Hentsch & Cie, told RT.
“The situation in the country is already in turmoil, very imbalanced and if you add to that a default, it would probably be a road to a much worse case scenario, that obviously nobody wants,” Leclercq said.
A Ukraine default will happen when the government announces it can no longer meet its debt obligations.
“Nobody would want to deal with that, because it will trigger a number of other consequences for the country itself. A ‘domino effect’ and a social effect,” Leclercq said.
Breaking reports confirmed by Reuters inform us that Russian forces are storming the Ukraine base near Sevastopol, home of anti-aircraft commander center.
Russian forces storming Ukraine base near Sevastopol, home of anti-aircraft commander center.
BREAKING: Crimea TV reporting that Russians have begun storming Ukraine air-force base on the peninsula, ramming the gates with a truck
— Simon Shuster (@shustry) March 7, 2014
So much for “isolating” Russia. The Chinese government is publicly siding with Russia on the crisis in Ukraine, and that is very bad news for the United States. Not only does it mean that the U.S. is essentially powerless to do anything about the situation in Ukraine, it also means that Russia and China are starting to understand how much economic leverage that they really have. Yes, the Obama administration can threaten to slap “sanctions” on Russia or threaten to kick Russia “out of the G8“, but those actions would not actually hurt too much. On the other hand, Russia and China hold approximately 25 percent of all foreign-owned U.S. debt, and if they started massively dumping U.S. debt it could rapidly create a nightmare scenario. If Russia and China got together and decided to kill the petrodollar, they could do it almost overnight.
So when it comes to Ukraine, it is definitely not the United States that has the leverage. [Read more...]