The Ukraine Is The Financial Waterloo Of The West. Russia Bets On Gold And Crypto. The West Destroys Itself While Seeking Whom It Might Devour
/By Stan Szymanski
“Be sober, be vigilant; because your adversary the devil, as a roaring lion, walketh about, seeking whom he may devour:” (1 Peter 5:8 KJV)
As recounted in the 2015 film ‘The Big Short’, in 2008 (and a few years before that) people were buying houses with no money down and no job; there were literally -no- standards that they had to meet except to be able to breathe and sign the loan application. This malfeasance of oversight, business practice and the leverage thereof ultimately became a large part of the undoing of the world financial system in 2008.
Fast forward to our current era. In early 2020 the Federal Reserve disclosed …’As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.’…
So starting at that point just two years ago, the banks of the United States were now able to run their business without having to satisfy the long standing reserve requirement of maintaining 10% of their deposits. They could operate with no safety net (no reserve requirement)… So just as the banks relieved individuals of the burden of meeting any criteria in order to participate in the housing market in 2008, in our current era, the Federal Reserve has relieved the depository institutions under its umbrella of maintaining a buffer to make sure they …‘possess enough liquidity for withdrawals and obligations and for withstanding the impact of unforeseen market conditions.’…
In other words in 2022 it is 2008 all over again, but worse. In 2008 it was the mortgage business that was allowed act like drunken privileged teenagers who had their rich parents to bail them out via TAARP. In 2008 there was at least a reserve requirement in place to not stop the financial crisis, but it at least played a part in the mitigation of the emergency (some banks needed the money and some did not even though they took it). In 2022 there is no reserve requirement for the banks. So when things go (are going) wrong where is the provision (reserve) for ‘withstanding the impact of unseen market conditions’?
In 1929 margin requirements to buy stock were 10%; in other words $100 bought $1,000 of stock-great when stocks are going up and catastrophic on the way down. That’s why in modern times the margin requirements have typically been 50%. When moral constraints are removed from a market (like the Fed removing the banks’ reserve requirement) the outcome cannot be beneficial to the public. The US financial system is destroying itself.
Once again according to Corporate Finance Institute…’A lower reserve ratio means that banks hold more capital available for lending. It would imply an increase in the money supply in an economy.’ …
So the Fed lowered the reserve requirement in 2020. That tells you that they were and now, still are, trying to stimulate the economy. In 2022 they are stimulating the economy so much that we now have a high inflation rate of officially over 7% and according to John Williams at ShadowStats inflation is really 15%.
So now we have a crappy economy, high inflation as the Fed purposefully floods the system with money and a banking system unable to handle any kind of systemic shock because it has jettisoned its traditional buffer in the reserve requirement.
So what does any of this have to do with the Ukraine and Russia? We have shown the single minded unstableness of the Fed. Now for the double mindedness…
The United States and its parasitic host, The Federal Reserve, has been able to benefit the US and the owners of the Federal Reserve because of the hegemony that the US possesses as the controller of the world’s reserve currency. Until recently, all oil transactions had to be done in the US Dollar. That always created a demand for the Greenback and kept its purchasing power high. Officially, the dollar (US Treasuries) is touted to be backed by the ‘full faith and credit’ of the US Government. In reality, it is backed by the US military.
In a 2018 opinion piece in The New York Times Paul Krugman (2008 winner of a Nobel prize in Economics) said…’fiat currencies have underlying value because men with guns say they do.’…
And guns are what are used when a country has tried to trade in currency ‘other than dollar’. Examples of when countries attempted to trade oil in something else than US Dollars have ended badly for those now poor and dead participants. Please reference the Iraq War of the early 2000’s. According to Bart Gruzalski at counterpunch.org …’Saddam Hussein was about to begin selling oil using the EU currency, not the US dollar. This would have weakened the value of the dollar and undermined the US economy. That is the unpublicized reason for the elimination of Saddam Hussein.’… Later in the same article Ron Paul is quoted with a similar sentiment.
A more recent example of retribution for rebelling against Dollar hegemony is the story of Qaddafi’s Libya. According to Ellen Brown at The Ecologist …’Libya's Qadhafi (African Union 2009 Chair) conceived and financed a plan to unify the sovereign States of Africa with one gold currency (United States of Africa). In 2004, a pan-African Parliament (53 nations) laid plans for the African Economic Community - with a single gold currency by 2023.
"African oil-producing nations were planning to abandon the petro-dollar, and demand gold payment for oil/gas."…
…’Qaddafi had done more than organize an African monetary coup. He had demonstrated that financial independence could be achieved. His greatest infrastructure project, the Great Man-made River, was turning arid regions into a breadbasket for Libya; and the $33 billion project was being funded interest-free without foreign debt, through Libya's own state-owned bank.
That could explain why this critical piece of infrastructure was destroyed in 2011. NATO not only bombed the pipeline but finished off the project by bombing the factory producing the pipes necessary to repair it.’…
So you see, Libya, under Qaddafi , had created economic freedom for their country by foregoing the US Dollar for the safe, stable and dependable haven of GOLD. And after that incredible achievement Libya was invaded and Qaddafi met his end and was dragged through the streets of his hometown, a sight that the premiere of Russia apparently never forgot.
Is it any wonder why Putin and Russia do not want NATO and the US on its doorstep?
Since the financial crisis of 2008-9 the Central banks of the world have been net buyers of gold, led by China and Russia. Do you think that they want to put the fate of their economies in the hands of the US and the dollar after how the last crisis came about and was handled? According to Drew Woodhouse-‘Countries went on a gold-buying spree before coronavirus took hold – here’s why‘: …’Stocking up has made sense to many countries in the populist climate. It is also a sign of countries diversifying from dollars. The likes of Russia, China and even countries in Western Europe want to break the US dominance of the financial system, having seen it used as leverage in everything from economic sanctions to trade threats.’… In the last four years Russia is surging in its desire for Gold (‘Russia overtakes China in gold reserves race to end US dollar dominance‘).
If it is true as Paul Krugman stated that…’ fiat currencies have underlying value because men with guns say they do.. .. Then how much better is it if gold backed currencies have value because they are gold backed -and- have men with guns who say they do!
The 2014 overthrow of the democratically elected Ukrainian government in favor of the rabidly anti-Russian regime engineered by Victoria Nuland and her cronies is well documented (Strategic Culture Foundation-‘How and Why the US Government Perpetrated the 2014 Coup in Ukraine’). In the SCF piece by Eric Zeusse it points out: …’During the 1962 Cuban Missile Crisis, America had reason to fear Soviet nuclear missiles 103 miles from America’s border. But, after America’s Ukrainian coup in 2014, Russia has reason to fear NATO nuclear missiles not just near, but on, Russia’s border. That would be catastrophic.’…So while the west is destroying their own financial system they at the same time are threatening Russia with nukes…James 1:8 says: ‘“A double minded man is unstable in all his ways.” (James 1:8 KJV)
So you have the West now with nuclear missiles -on- the border of the biggest country to stand up to American financial hegemony. Russia is clearly making plans to -not- be part of the west’s monetary structure. ‘Russia's foreign affairs ministry believes SWIFT can be replaced by more advanced systems, mentioning blockchain.‘ …’Russia's Ministry of Foreign Affairs, Alexander Pankin, talking to the RIA Novosti news agency on Monday’… said …’future alternatives to SWIFT will be more advanced and not dependent on being a monopoly.’…
So in 2021 the Russians transparently left the door open for the possibility of blockchain to be used for settlement. Even though my own views on cryptocurrency is mixed, we can unequivocally say that -someone- is using crypto for settlement as opposed to the US Dollar. From an article I posted on the Encouraging Angels blog ‘An Open Letter To The Board Of Govenors Of The Federal Reserve System Regarding The Proposed Digital Currency’: …’According to Rob Kirby of Kirby Analytics …’Elephants are hard to hide. It’s also hard to hide $150 billion in daily turnover in cryptos. That translates into a $54 trillion annual run rate’… (Watch the Rob Kirby video at the usawatchdog link where Mr. Kirby talks about the Bitcoin settlement). Kirby is saying that …’More dollars are being pushed into the world market every year, and fewer of them are being used in trade settlement.’ So that means that apparently it is crypto that is being used in trade settlement in these amounts, -not- the US dollar…’…The entire crypto market at the time of this writing has a total market cap of 1.89 Trillion US Dollars. So the Kirby’s case for the use of cryptocurrency for settlement is a viable one and even more believable in light of the comments by the Minister of Russian Foreign Affairs.
The main theory of this writing is that the geopolitical situation in the Ukraine is not about Russia just wanting to invade that country. It is much bigger than that. It is about the western money magnates wanting to make Russia pay for even thinking about trading in ‘other than dollar’. Why else would our military and nuclear arsenals be on the doorstep and ‘all up and in the grill’ of the Russians? The appearance of this thing looks like Russia (and China ,India and others) has seriously compromised the validity of the dollar as the world reserve currency, has plans for a new world alignment of financial influence and is in fact bringing it to pass.
Crypto is being used for settlement. Now we have a reasonable case to be made that Russia (and who knows how many other countries) want to transact business in a currency and system other than where the demonic, satan worshipping owners and controllers of the Federal Reserve have world reserve currency status. The US has proved time and time again that they will abuse their power. When it comes to the Ukraine, add in Burisma and Hunter Biden (‘Hunter Biden, Burisma, and Corruption: The Impact on U.S. Government Policy and Related Concerns’ - U.S. Senate Committee on Homeland Security and Governmental Affairs U.S. Senate Committee on Finance Majority Staff Report) and how can you blame the Russians of their desire to be free of tyranny and to want this long standing ‘Cuban Missile Crisis’ over that is literally in their front yard?
I am not a proponent for Putin or of Russia. The Russians are betting on Gold and cryptocurrency to launch themselves out of the orbit of the cleptocrats and save their country and people. Those who live in the 50 states are being attacked financially, medically and spiritually by those who claim to be for their good. I am an American who wants a country and a leadership I can be proud of. Unfortunately, as The Rolling Stones said, ‘You Can’t Always Get What You Want’. But that doesn’t mean that I want my country put in danger of destruction because of the double minded satanists who want it all and will still want it all when they discover they were wrong as the skin is melting off of their face due to them also being wrong about being able to stop the Russian hypersonic nuclear missiles that the US has no technological or military answer for. Pray for God to intervene in a geopolitical situation in the Ukraine that is deteriorating. Pray for a miraculous resolution of the banking system crisis in the US that is about as responsible as a drunken fool driving a car hurdling down a winding mountain road with no guardrail. Pray for the leadership of the US and the Federal Reserve to truly have a sincerely life changing ‘Come-To-Jesus’ moment’ as Jesus is the only one who can save any of us.
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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.