BRICS nations, which include Russia, India and China, have been moving away from the dollar amid western sanctions over Russia’s Ukraine invasion as well as Russia’s exclusion from SWIFT. The move was aimed at Russian gas and oil exports, and as a result, Russia is now demanding that these essential commodities be purchased using rubles rather than the U.S. dollar, which has long been the currency of choice for these transactions.
In addition, Russia’s central bank has just (temporarily) backed the ruble with gold. Russia is the world’s second-biggest gold producer, responsible for 9.5 percent of the gold mined each year on average, most of which ends up in the hands of the state. This means that instead of the ruble being dead as many had predicted, the ruble’s value has spiked since currency markets started reopening in the country. Russia is believed to possess around $140 billion in gold in what is one of the biggest stashes in the world.
Some experts believe that a recent rush by Russia and China to buy up significant quantities of physical gold was to hedge against inflation and the impending collapse of the U.S. dollar as the global reserve currency – and that those countries may have been warned about the impending Great Reset. After all, globalists have made no secret of their desire to destroy the U.S. dollar and marginalize the American economy.
Now, with the EU relying on Russian gas and oil exports for 40 percent of its energy needs, it will have little choice but to either pay for energy in rubles, which seems unlikely, or find another source for oil and gas, which is not possible at the moment. Although Biden is releasing strategic petroleum reserves in an attempt to temper price spikes, there is simply not enough there to offset the volume needed by European countries. Therefore, gas prices are likely to continue rising.
Countries like Iran, Turkey, China and India have already started doing business with Russia using their own currencies, which means a market of more than 3 billion people is no longer relying on dollars for trading. This is a significant threat to the power America gets from being the home nation of the top reserve currency. Although this alone may not be enough to unseat the dollar’s power, it is likely to set off a chain of reactions that could ultimately see it lose its global reserve status.
Russia and China make for a formidable pairing, with Russia’s significant raw materials and natural resources complementing China’s huge manufacturing and exporting base. Moreover, with China and India home to more than a third of the world’s population, they have more than enough people to serve as a consumer foundation.
In a piece republished by Blacklisted News, Brandon Smith warns: “This does not mean the BRICS will not see some fiscal pain as a result of the economic war, but it’s important for the western public to understand this fact: WE are the real target of the conflict, NOT Russia. It is the U.S. and Europe that will be hurt most, with the dollar suffering the worst damage.”
At the same time, the Fed has moved to raise interest rates against a backdrop of rapidly rising prices on necessities such as energy, housing and food. Yet for some reason, the mainstream media has been ignoring the implications of all of these moves, and many Americans continue to believe that everything that is going wrong with our economy right now can be pinned on Putin.
Sources for this article include: