One world is based on debt and fiat currencies, the other world is moving towards production and gold. Which shall prevail? From Alasdair Macleod at goldmoney.com:
In the war between the western alliance and the Asian axis, the media focus is on the Ukrainian battlefield. The real war is in currencies, with Russia capable of destroying the dollar.
So far, Putin’s actions have been relatively passive. But already, both Russia and China have accumulated enough gold to implement gold standards. It is now overwhelmingly in their interests to do so.
From Sergey Glazyev’s recent article in a Russian business newspaper, it is clear that settlement of trade balances between members, dialog partners, and associate members of the Shanghai Cooperation Organisation (SCO) optionally will be in gold. Furthermore, the Russian economy would benefit enormously from a decline in borrowing rates from current levels of over 13% to a level more consistent with sound money.
To understand the consequences, in this article the comparison is made between the western alliance’s fiat currency and deficit spending regime and the Russian-Chinese axis’s planned industrial revolution for some 3.8 billion people in the SCO family. China has a remarkable savings rate, which will underscore the investment capital for a rapid increase in Asian industrialisation, without inflationary consequences.
With a new round of military action in Ukraine shortly to kick off, it will be in Putin’s interest to move from passivity to financial aggression. It will not take much for him to undermine the entire western fiat currency system — a danger barely recognised by a gung-ho NATO military complex.
In the geopolitical tussle between the old and new hegemons, we see the best of strategies and the worst of strategies, where belief is pitted against credulity. It is the season of light and the season of darkness, the spring of hope and the winter of despair…
Recalling some of Charles Dickens’ famous opening lines from his Tale of Two Cities to describe the current state of global politics sums up the potential of a new industrial revolution throughout Asia and much of the rest of the under-developed world (the best of times), compared with the western alliance abetted by its military arm, NATO, which is determined to suppress the plans for the new hegemons at its own peoples’ expense (the worst of times). Ironically, the nations which will benefit most from the western alliance’s proxy war are those which align themselves with its enemies.