RUSSIA’S NEW CENTRAL BANK HEAD: RUSSIA WILL CONTINUE ...
Russia's central bank has a new head, and he's telegraphing some definite messages:
In previous blogs and video blogs, I have suggested the idea that the moves afoot to repatriate gold, particularly in Germany's case, would not be occurring if there was not a reassessment taking place quietly and secretly within the councils of government. That reassessment, I have argued, includes an understanding of the Bearer Bond Scandal as being an indicator of a vast amount of fraud in the financial system of the West, fraud that was used to support the military machine of the West and of the USA in particular. As America's actions seemingly become increasingly bellicose and imperialistic, the decision appears to have been taken to pull the plug on this system. Germany, I argued, would not be pursuing this course alone, without the backing of another major power, in this case, Russia.
Which puts that opening paragraph of this article into an interesting perspective:
"The Russian central bank will continue to buy gold as it seeks to diversify its foreign reserves away from paper assets it views as risky, First Deputy Chairman Alexei Ulyukayev said on Thursday."
Translation: the US Dollar and any US Dollar-denominated securities (i.e., US Treasuries and any other bonds connected to the US federal leviathan) are suspect and therefore no longer trustworthy. Russia is diversifying in order to continue to conduct international trade. Further translation: yet another step has been taken signalling the looming abandonment of the dollar as the global reserve currency.
This is signaled by yet another interesting series of statements:
"Ulyukayev, 56, has weighed into an intensifying debate over the 'currency wars' that have broken out as advanced economies pursuing aggressive monetary stimulus in a bid to grow their way out of a debt trap.
"He recently accused Japan of "protectionist monetary policy" and, detailing the current composition of the central bank's foreign exchange reserves, he made no mention of the yen.
"According to a breakdown given a year ago, the central bank held 1.6 percent of its forex reserves in yen. It was not immediately clear whether or when that position had been sold."
Basic transalation: so long as Japan remains in the Western orbit, it will be viewed as tainted by the same untrustworthiness as the rest of the Western system. This, of course, is vastly overstating the case, and there are pressing reasons why Japan's own national fiscal policy has led to this condition, over and above any part it plays within the wider system.
The bottom line here is this, folks: the financial situation is now hardening into geopolitical realignments... when this is over, I believe the current tapestry of international relationships will look very different. And that translates to: watch Germany and Italy very closely.
See you on the flip side.
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