Russian Roulette – Is the west about to shoot itself in the head, heart and the foot – just to make sure?
One year on, as the Federal Reserve celebrates another birthday, both Gold and Silver were beaten down in the London aftermarket close, while trading was at its lowest. And the Russian Rouble was similarly attacked by those behind the curtain.
As the Russian Rouble recovers some of its losses of the last week, in the last few days, I have been re-visiting some of my reading matter, of the last few weeks.
Ever since Russia annexed Crimea, ostensibly to give citizenship to ethnic Russians, but many feel it was to save its only warm water port, “The West”, has been ratcheting up the tension and the rhetoric on Russia.
The NATO block has interfered in Ukraine, too many times. The American led organisation the IMF, has been interfering, with its money, and the West has provided IMF led financial support to the Ukrainian Government and military, and rumours abound, that the IMF and its minions have taken Ukraine’s Gold – some 40 tons apparently – as a surety. (Rumoured to be the source of Holland’s recently returned 127 tons of Gold).
According to Bloomberg today, Ukraine has sold more of its Gold holdings, reducing its holdings from 26.1 tons, to 23.6 tons (2.5 tons) and Russia has bought more rising from 1,168.7 tons to 1,187.5 tons (18.8 tons).
But Russia is not the one in trouble – the Fed and the U.S. is. Russia’s Debt to GDP ratio is roughly 11 percent. What is the Debt to GDP ratio in the United States? According to the IMF it’s 112 percent. What is the Debt to GDP ratio in Japan? It’s a staggering 230 percent. And Russia is sitting on a lot of reserves of very valuable natural resources.
So Russia is not going to fold because of some pressure coming from the United States or NATO. And the real tragedy of all this is the collapse of the rouble is really hurting the Russian people. This is being done by the West as a method of financial warfare. The latest sanctions against Crimea are just hurting the people of Crimea.
According to Dr. Paul Craig Roberts, Russia could unleash possibly one or more “Black Swan” events. For those not familiar with the term, it is a reference to the fact that most swans are White, but occasionally, one is born Black, but is so infrequent as to be impossible to predict, and here is the scary part.
Both Russia and China now don’t believe in the cold war rhetoric of Mutually Assured Destruction – or MAD as it was known.
Now both appear to be willing to make a “First Strike”.
He also recently said about the Gold and silver markets…
“The downward manipulation of the prices of precious metals prevents the “crisis warning transmission system” from properly functioning. More important, the decline in the price of gold/silver vs. the U.S. dollar conveys the illusion that the dollar is strong at a time when, in fact, the dollar should be under pressure from the over-issuance of dollars and dollar-denominated debt.
What we have been experiencing since the 2008 crisis is not only the subordination of US economic policy to the needs of banks “too big to fail,” but also the subordination of law and the financial regulatory agencies to the interests of a few private banks. The manipulation of the bullion markets is illegal whether done by private parties or on public authority, and so we have the spectacle of the US government supporting a handful of banks via illegal means. Not only has economic accountability been set aside, but also legal accountability.”
What people also don’t know, is that the Russians are ready to shelter the majority of their population in major cities in the event of a nuclear war. By contrast, the United States only has facilities for the elite and key personnel in the form of roughly 234 underground bases. These bases are referred to by the military and the elite as Deep Underground Military Bases (or DUMB).
And reports are surfacing from U.S. food processors about huge orders of food by U.S. government agencies to be delivered to these underground bases. The key is the government has requested immediate shipment of this food so that it can be stockpiled. While this stockpiling, has been going on, reports have also surfaced from store managers from all over the country, that a large selection and quantity of food is disappearing from grocery store shelves in states where these underground bases are located such as Kentucky, West Virginia, Kansas, Pennsylvania, etc.
Also, in 2008, the U.S. government ordered 600 million rounds of soft-nosed hollow-point ammunition – 2 rounds for every person in America to be delivered over 6 years.
These are the type of preparations that would be taken if it appeared that civil unrest, world war, or a possible nuclear exchange was on the horizon.
Meanwhile, the Chinese are buying factories, farms, mines, fresh water resources, etc. Other Far Eastern and Middle Eastern sovereign wealth funds are also accumulating these key resources. The Chinese and the Russians understand that at the end of the day it’s all about natural resources and being able to deliver these natural resources to a market that has the money or gold to pay for these key commodities.
A cyber attack on the West’s Banks could close down the banking system for days or weeks. What would that do to the West’s economies? Just think Sony, only ten or a hundred times worse…
If Russia was attacked or provoked more seriously, they could respond by dumping U.S. Treasuries and Dollars, or by asking for delivery on gold futures contracts forcing a default at the COMEX, and/or LBMA.
Or they could just ring up all the leaders in Europe, and tell them, they won’t sell any more Gas/Oil except in roubles, or sell any to NATO members. Germany, France, Italy, and even the U.K., would cave in a heart-beat.
People used to think that those who were preparing for disaster – “Preppers” – were crazy. Now we see the United States government ordering survival kits for employees of every major bank as well as key personnel at the Office of the Comptroller of the Currency.
On this side of the pond, Europe teeters on the brink of a financial disaster. And if Russia simply stated it would not repay loans it has taken from European and U.S. banks (at least not yet) then it might force a rerun of 2008 which would seem like it was a nice day at the shops by comparison.
The European Parliament, as UKIP’s Nigel Farage is so fond of saying, has become a talking shop, a mouthpiece with no teeth. It also hasn’t had its accounts signed off for several years, making monitoring its politicians all but impossible. It has been called a gravy train.
Finally, I ran across two great quotes from the past. They are food for thought.
“The Roman Republic fell, not because of the ambition of Caesar or Augustus, but because it had already long ceased to be in any real sense a republic at all. When the sturdy Roman phlebeian, who lived by his own labor, who voted without reward according to his own convictions, and who with his fellows formed in war the terrible Roman legion, had been changed into an idle creature who craved nothing in life save the gratification of a thirst for vapid excitement, who was fed by the state, and directly or indirectly sold his vote to the highest bidder, then the end of the republic was at hand, and nothing could save it. The laws were the same as they had been, but the people behind the laws had changed, and so the laws counted for nothing.”
– President Theodore Roosevelt
“It is high time for me to put an end to your sitting in this place, which you have dishonored by your contempt of all virtue, and defiled by your practice of every vice; ye are a factious crew, and enemies to all good government; ye are a pack of mercenary wretches, and would like Esau sell your country for a mess of pottage, and like Judas betray your God for a few pieces of money.
Is there a single virtue now remaining amongst you? Is there one vice you do not possess? Ye have no more religion than my horse; gold is your God; which of you have not barter’d your conscience for bribes? Is there a man amongst you that has the least care for the good of the Commonwealth?
Ye sordid prostitutes have you not defil’d this sacred place, and turn’d the Lord’s temple into a den of thieves, by your immoral principles and wicked practices? Ye are grown intolerably odious to the whole nation; you were deputed here by the people to get grievances redress’d, are yourselves gone! So! Take away that shining bauble there, and lock up the doors.
In the name of God, go!”
– Oliver Cromwell – To the Long Parliament – 20 April 1653.
And tonight Sky News got into the fray, when it ran a programme called “The Doom Boom”, suggesting that those who are preparing for the forthcoming crash are somewhat crazy, or slightly unstable, yet the evidence above would suggest, that they may be just doing the only sane thing they can.
We wish all those who have read this over the last year, a Happy Christmas and Festive Season, and a safe and prosperous New Year.