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How a new ‘gold ruble’ could shake the world financial system
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• 04/07/22
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The golden move: how has the Russian currency regained all its losses amid Western pressure
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3 years ago
Clearly, Putin learned from the big mistake of Bretton Woods. The immediate convertibility of cash to gold was what undid it. The U.S. was abusing its privilege and French President, Charles DeGaulle called us out by demanding gold for all the U.S. cash that French banks were sitting on. The value of our cash was grossly overvalued and DeGaulle didn't want to be caught holding a bag full of junk paper. Nixon closed the gold window to avoid a global run on our gold reserves in Fort Knox.
Gold's proper role is to use it in escrow to insure the exchange of goods and credit in international trade. A national bank must have gold, silver, and other highly valued commodities to put up as insurance (in escrow) for a deal to go though. Ideally, the trade will be fulfilled and paid for and the gold will return to the central bank. "Return" being a stack of gold bars once had an escrow agreement taped on it but, the trade went through and the gold bars now have the central bank Title restored on them. A legitimate Export-Import Bank would handle the escrow obligations of both countries where gold or other valuable commodities are held as insurance for the duration of the trade agreement.
3 years ago
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3 years ago
Interesting.
Despite the contentious politics of allegiance and alliances and the World Economic Forum etc., when this gets up, the scam of the US dollar and the bottomless credit system having bottomed out... will be overturned.