Sanctions have backfired on those described by Vladimir Putin as the unfriendly nations. It is setting in train a series of events likely to undermine the whole Western financial system, as prices rise driving interest rates higher, and economic activity shrinks. These developments alone are leading to contracting bank credit, crashing stock markets, and sharply higher bond yields.
Last week, I wrote about the impact on the banking system and the likely consequences. Russia, China, and associated nations who depend upon them for trade and economic development are now moving to protect themselves from what is emerging as a full scale systemic and fiat currency crisis for the dollar and the entire Western financial system.
These developments are hastening the end of the petrodollar era and the dollar’s role as a reserve currency. A central Asian replacement is planned to be a new super-currency used for cross-border payments, based on an index of a basket of commodities and currencies of the participating nations. Including currencies is a mistake, but otherwise the proposition has merit.
This article explains why and how a properly constructed scheme would work. I demonstrate why it could act as a de facto gold standard.
Its designers intend this new trade currency to appeal to other important nations, such as Saudi Arabia, into using a commodity-linked currency for settling their trade payments, replacing the dying petrodollar. But its success could prove to be fatal for the fiat dollar and other Western currencies. With the demise of the dollar, the new super-currency can be expected to lead eventually to some national currencies adopting gold standards.
The ending of the petrodollar era
And who’s gonna profit…the marxist democrats who are the real colluding with russians
The BIDEN WAR !!!!!!