The real was is monetary and financial, and Russia and China are winning. From Alasdair Macleod at goldmoney.com:
The chasm between Eurasia and the Western defence groupings (NATO, Five-eyes, AUKUS etc.) is widening rapidly. While media commentary focuses on the visible side of the conflict in Ukraine, the economic and financial aspects are what really matter.
There is an increasing inevitability about it all. China has been riding the inflationist Western tiger for the last forty years and now that it sees the dollar’s debasement accelerating wonders how to get off. Russia perhaps is more advanced in its plans to do without dollars and other Western currencies, hastened by sanctions. Meanwhile, the West is increasingly vulnerable with no apparent alternative to the dollar’s hegemony.
By imposing sanctions on Russia, the West has effectively lined up its geopolitical opponents into a common cause against an American dollar-dominated faction. Russia happens to be the world’s largest exporters of energy, commodities, and raw materials. And China is the supplier of semi-manufactured and consumer goods to the world. The consequences of the West’s sanctions ignore this vital point.
The EU’s leaders want to pay Russia for its exports with Euros that are deposited in European bank accounts that Russia can’t access. Yes, it really is that stupid. From Jorge Vilches at thesaker.is:
What ? Payment in Rubles ?? Unthinkable, don´t even mention the word say EU officials and authorities.
Instead, Europe has formally demanded to pay for Russian imports with Schrödinger euros as explained below.
So it´s high time for psychiatrists to step in as the livelihood of 800 million Europeans depends on whatever this incredible set of un-elected delusional EU leaders decide. Let´s get this straight folks: the EU does not want to pay in Rubles – or gold — because it is playing cutie by pretending to “pay” for Russian imports for free. Be it natural gas, or oil, or coal or whatever Russian, instead of really “paying” the EU pretends to pull a “print & deposit + freeze & hide” wise-up gimmick. To make it clear for any audience, the above would be the equivalent of you pretending to “pay” at the check-out counter of any store with a photo of a fully sealed box that you say contains “money” that you will keep hidden at your home – unopened — as long as you want. Please allow me to explain the EU trickery in layman´s terms
Russia has the energy resources and Europe isn’t going to be able to get them anywhere else. From Tom Luongo at tomluongo.me:
“Energy makes energy anyhow
So spend yourself and get rich right now”
— Marillion “Rich”
This day has been a long time coming. From the moment, more than a decade ago, when it was finally admitted that Europe was destined to be an energy importer, we were going to see the climax of the showdown between the West and Russia.
Europe as energy importer always meant that time was on Russia’s side. All it had to do was draw the conflict out long enough, survive long enough, to force Europe into submission. Russia has the energy Europe needs, no one else can supply it, therefore the final decision will be to accept this fate.
No amount of financial wizardry, pathetic virtue signaling about Climate Change, malinvestment into inefficient and unsustainable ‘renewables,’ or military threats would ultimately change the outcome of this story.
The petrodollar is no more, and the dollar is no longer considered the reserve currency in a substantial portion of the world. From Pepe Escobar at strategic-culture.org:
A new reality is being formed: the unipolar world is irrevocably becoming a thing of the past, a multipolar one is taking shape
It was something to behold. Dmitri Medvedev, former Russian President, unrepentant Atlanticist, current deputy chairman of the Russian Security Council, decided to go totally unplugged in an outburst matching the combat star turn of Mr. Khinzal that delivered palpable shock and awe all across NATOstan.
Medvedev said “hellish” Western sanctions not only have failed to cripple Russia, but are instead “returning to the West like a boomerang.” Confidence in reserve currencies is “fading like the morning mist”, and ditching the US dollar and the euro is not unrealistic anymore: “The era of regional currencies is coming.”
After all, he added, “no matter if they want it or not, they’ll have to negotiate a new financial order (…) And the decisive voice will then be with those countries that have a strong and advanced economy, healthy public finances and a reliable monetary system.”
Is the real regime getting set to removed Joe Biden from office, one way or another? Like the Kremlinologists of old, you have to study the U.S. regime and from small scraps of information try to figure out what it’s doing. You certainly can’t rely on its official media organs. From The Zman at zman.com:
Regime-ology is a new field of study so the practitioners are still working out the tools and methods for interpreting regime activity. Unlike Kremlinology, on which regime-ology is modeled, the focus is not on a hierarchical structure. The Soviet empire was run by a vertical organization that operated like a corporation. The American empire is a horizontal organization modeled on the Mafia. It is a collection of elite gangster organizations jostling for power within the elite.
With Kremlinology, events could be interpreted as either a signal from the party elite or representing internal party changes. If someone disappeared from the public eye, it meant he had fallen out of favor with the party leaders. If party media reported something hanky about a party member, it was assumed to have been done with the permission of the party leaders to prepare the public for a change. The target was being shaped as a scoundrel so he could be denounced.
This is what happens when you make your currency unusable: it quits being used. Russia has no use for dollars now that their foreign exchange reserves have been frozen. Bye bye petrodollar standard. From Tyler Durden at zerohedge.com:
With the ruble mostly stuck in sanctions limbo and trading around 100 to the dollar in recent days (an improvement from the USDRUB 140 hit on March 8), the Kremlin appears to have found a new way to prop up the Russian currency besides merely central bank interventions: make foreign customers of Russian gas demand it.
During an address to the nation moments ago, Vladimir Putin said that Russia will demand that countries it has labeled “unfriendly” (which includes U.S., U.K., and European Union countries) must pay in rubles for Russian gas, Interfax reported. As a result, Putin ordered the central bank and government in a week’s time to determine the scheme of ruble payments for Russian gas, and also ordered Gazprom to make corresponding changes to gas contracts.
Putin also said that Russia will continue supplying contracted volumes, will only change payment currency.
Following Putin’s comments, the Russian ruble strengthened rising over 5% at MICEX after indicative prices briefly jumped more than 8% twice (its biggest single-day gain since 2014)
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