"...Unfortunately, the US and those who are
associated with the old system, won’t go away quietly. When the USSR collapsed,
it did so quietly. The USA on the other hand, will try to drag whoever they can
with them into abyss. It’s not about the socialism vs. capitalism any more. In
fact, it never was. It had always been about the control of the
world..."
Global Consequences: Russia Announces Eurasian Union and New Currency Altyn
On multiple prior occasions I have
predicted that any sanctions against Russia by the West will only backfire,
expediting Russia’s re-orientation to the East and the unavoidable re-molding of
the Western financial/economic model.
Russia’s re-orientation and subsequent creation of the independent financial
system is what the banksters of Wall Street and London City fear most. This will
eventually result in a catastrophe for the US/UK and EU, except for those
European countries that succeed in re-orienting their economies to the East.
Meanwhile, Russia, China and other countries in the Eurasian space, will benefit
tremendously. Read: Ukraine Part 7: Russia’s
Geopolitics, USA’s Bluff and EU’s Big Mistake.
The US and EU can be proud: as a result of
their aggressively provocative behavior and the double standards galore, they
managed to expedite the process by at least ten years.
The Presidents of Russia, Kazakhstan and
Belarus have officially announced that the transition of the semi-formal Customs
Union into the formal economic Eurasian Union will be expedited and completed by
2015. The Eurasian Union will adopt a new currency: Altyn (Rus:
Алтын). Vladimir Putin announced that Altyn as the new Eurasian
currency was originally planned for 2025, but now, due to the US/EU sanctions
against Russia, the transition to Altyn may occur within 3-5 years.
Effectively, Russia is sending a signal to its “Western partners,” as Putin
so diplomatically calls them, that since Russia’s interests are not being
respected by the West, its new pivot is the East. At the risk of sounding like a
broken record, I’ll repeat again: driving a wedge between Russia and Western
Europe is one of the big geopolitical goals of the USA, and Western Europe is
very, very foolish to allow itself to be duped yet again.
The Eurasian Union and Altyn announcements
are in addition to the earlier announcement that Russia is developing its own
universal payment system after Visa and MasterCard tried to block Russian
transactions. The Visa and MC since backtracked, but the damage was already
done. Russia may unveil its new sovereign payment system as early as this year.
The new Russian system will be linked to the Chinese and Japanese sovereign
payment systems, which are currently accepted in 70 countries. This payment
system will eventually be used by the Eurasian Union. For more, read: Sanctions Backfire. Goodbye Visa:
Russia Will Create Its Own Payment System
Eventually, the Eurasian Union may also become a military union, countering
NATO.
The initiative to create the new currency
came from the Kazakh President, Nursultan Nazarbayev. In 2012, Vladimir Putin
supported this idea.
Altyn has a very ancient and long-ranging history. What is Altyn?Altyn means gold. The word is of Turkic origin (not to be confused with Turkish). The Turkic family of languages includes languages spoken by the Siberian peoples, Tatars, Mongols, and of course, Kazakhs.
Russia always was a multi-national country
and Turkic languages have been some of the widely spoken in the country. In
ancient and medieval times, Russians traded and maintained very extensive
relations with Asia and the Middle East. The Silk Road and other important
eastern trade routes went through Russia. Medieval Russians routinely spoke
Arabic and Turkic languages just as fluently as their native language. Some
Turkic words became part of the Russian language. One such word was “denga,”
from Turkic “tenge.” The contemporary Russian word for money is “dengi” in
plural.
Another such word was “altyn.” From the sheer number of the financially
related Turkic words it is clear how important historically was the Russian
trade relationship with its Eastern neighbors.
Altyn was the name of the ancient gold coin
once used by Russians extensively for trade with Turkic and Arabic neighbors.
Later, in medieval times, altyn, or “altynnik,” became one of the regular
Russian coins. In 15th century, altyn equalled six Moscow dengi, or 1/200s of a
Moscow ruble. It also equaled three Novgorod dengi, or 1/100s of a Novgorod
ruble. “Denga” was also called “kopeika” (kopeika is presently the 1/100s of a
ruble). In the ancient times it was also called the arian “kuna.”
The old Russian proverb was: “Had nothing,
and all of a sudden, altyn.” Rus: “Не
было ни гроша, да вдруг алтын”. This is an equvalent of English: “From rags to
riches.” In those days kopeikas and altyns were big money. And only the rich
owned rubles. Of course, back then all currency was real gold, silver and
bronze.
In this regard, the meaning of Altyn,
“gold,” is very telling.
Through Altyn, Russia/Kazakhstan/Belarus,
in short the new Eurasian Union, are sending a signal that they are targeting
the gold standard. Along with China also targeting the gold standard through the
Yuan, the new Eurasian currency will lead to the demise of the dollar as world
reserve currency.
This is where it gets really interesting!
Russia is one of the largest producers of gold. Despite that, together with
China, Russia is a net importer of gold. Russia officially admits to roughly
1000 tons of gold in reserves. However, the real number is several times higher.
China has recently increased its publicly admitted gold reserves from 1000 tons
to just under 3000 tons. Again, multiply this by 2, or more. Kazakhstan is never
spoken of as a gold powerhouse and they make it a point not to advertize their
gold reserves. But in addition to the rich oil and gas deposits, as well as
fertile soils, Kazakhstan possesses sizable deposits of gold. It is clear that
their gold reserves are substantial.
According to Paul Craig Roberts and other
analysts, the US gold reserves have been loaned out to dealers who sold that
gold in order to maintain the illusion of lower gold prices, stable dollar and
solvent economy; in short, to postpone the demise of the dollar as world reserve
currency. Lately, when China started demanding delivery on its futures gold
contracts, a large chunk of the US gold reserves had to be delivered to cover
obligations and to avoid Comex default. It has been long suspected, and now it’s
accepted by most observers, that the Fort Knox is empty. It appears the US gold
reserve is all but gone, or at least greatly diminished. There is no way of
knowing for certain how little of the publicly announced 8,000 tons of gold is
left, since no audits of the US gold reserve are allowed.
I strongly suspect that at least in part,
the Cyprus banking debacle was connected to the fact that Russia used Cyprus as
its gold clearing house. My conclusion is that several years ago Russia quietly
began demanding delivery on its gold futures contracts, just like China lately.
And they did it via Cyprus. That was one of the reasons Cyprus banking haven had
to be closed down: to make it more difficult for Russia to stockpile gold.
I believe that Russia discovered 5-6 years
ago that the US had been dumping naked shorts in the market in order to keep the
price of gold down and dollar value artificially up, and that Russia was first
to capitalize on that on a massive scale, demanding delivery. If this is the
case, then it becomes clear why the West believed that the Cyprus banking haven
closure would be a blow to Russia. The official explanation that it was hurting
Russian oligarchs didn’t hold water. I discussed why in my earlier piece on
Cyprus here.
It appears that the US managed to temporarily slow down the Russian gold
purchases. In addition, they leaned on India to slow down the India population’s
gold imports. India’s population is considered the world’s largest holder and
purchaser of gold. By estimates, Indian households privately hold 25,000 tons of
gold.These two moves bought the US a couple of years. Those who follow gold and silver will recall that crash of the gold and silver markets coincided with the timeframe of the Cyprus banking debacle. India’s ban on gold imports reinforced that.
Here is the problem: Since over the years
US spent most of its gold reserves creating an illusion of the solvent dollar,
they had to find more gold somewhere else when China started demanding delivery
on its gold contracts. To accomplish that, the US had to raid the gold reserves
of other counties whose gold it held in trust at the New York Fed. It became
impossible to cover up the fact that the gold was gone after Germany demanded
part of its gold back. Out of the 1500 tons it has been storing at the NY Fed,
Germany demanded only 400 tons back. However, even that partial amount the US
couldn’t muster. Germany was told that the delivery had to be made over the
course of 7 years, at the rate of 50 tons per year. In the first year, the US
was able to deliver only 5 tons, essentially admitting to the world that the US
squandered the gold it held in trust for other nations.
The economic and financial system of
capitalism and consumer economy is fastly collapsing. In conjunction with that,
the re-distribution of power is happening. The energy is progressively shifting
from the West to the East. This is a normal cycle. In medieval times the center
of the world trade and riches were Asia, Russia and the Middle East. At the same
time as Europe was destitute as a result of poor economy and devastating feudal
wars; when cities like Paris and London were gloomy and highly undesirable
places to be, Russia was called the golden-domed land of a hundred cities. In
fact, there were over 240 cities in Russia at the time. At the time when Europe
was going through the Dark Ages, the Middle East experienced the Golden Age
punctuated with incredible breakthroughs in science, art and medicine. China and
India were highly desirable places to be with untold riches, which were a dream
of every traveler and merchant.
This cycle is making a full circle; the power is shifting again to the East
and away from the West.
Through this entire decade, as well as the
two decades that follow, humans will continue experiencing this tectonic
revolutionary shift. We are present at the point of a fundamental transformation
of the existing world architecture into something completely different. The new
centers of power in the East are growing and the old ones in the West are dying.
The 20th century capitalism and socialism were two sides of the same coin, meant
to always oppose each other. The old capitalist system is now on its death bed.
As the USSR socialist system went away with the collapse of the country, the old
standoff between the two 20th century rival economic systems was supposed to
stop.
Unfortunately, the US and those who are
associated with the old system, won’t go away quietly. When the USSR collapsed,
it did so quietly. The USA on the other hand, will try to drag whoever they can
with them into abyss. It’s not about the socialism vs. capitalism any more. In
fact, it never was. It had always been about the control of the world.
The USA empire will continue grasping
desperately at straws. They will continue pretending they are still in control.
They will make it as difficult as possible for everyone else to transition to
the new system through sabotage and by instigating conflict and chaos. We have
seen it in Serbia, Iraq, Afghanistan, Libya, Syria and elsewhere throughout the
globe. We are presently seeing it in Ukraine. This is their modus operandi; they
are not capable of admitting their mistakes or going away with dignity. They
remind me of the Hollywood movie villains. No wonder Hollywood is so good at
portraying villains – they observe them every day in their own country. As a
character of the movie Knight and Day, starring Tom Cruise and Cameron Diaz,
said addressing one such die-hard villain, “Just die already!”
As the US and EU debt burden grows, as
economy falters, the US becomes increasingly desperate to slow down the progress
of the newly emerging alternative Eurasian model. As I predicted many times
before, this can only succeed very short-term and very temporarily. In the long
run it cannot succeed. Only in the past year the US suffered some pretty
humiliating blows as a result of the NSA/ Snowden scandal and the Syria fiasco.
Any USA’s actions to undermine other countries will continue backfiring on
themselves.
The creation of the alternative gold-backed
and/ or natural-resource-backed currencies and economies, juxtaposed to the
worthless Western paper currencies, and removed from the declining and corrupt
Western economic system, will continue.
As I have predicted in the beginning of the
Ukraine crisis, the decline of the West and the rise of the East is only being
expedited by the actions of the US, EU and their Kiev stooges.
Video
report about Altyn and Eurasian Union in Russian. Таможенный союз переходит на
новую валюту Алтын
.
Lada Ray’s recent interview analysing the
events in Ukraine:
.
Recommended read:
Lada’s video predictions and analysis of
world events coming soon to Youtube Channel
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