The Ruble and Gold, The Dollar and Vapor

Written by  Dinesh Prakash Veer and Archpriest Symeon Elias.


It's official! Russian Central Bank announced that the Ruble is tied to Gold! 5000 rubles per gram.

The Central Bank of Russia has officially announced that the Russian Ruble will be tied to Gold as of March 28, 2022. The rate is 5,000 rubles per gram of Gold.
There are 28 grams in each ounce. Twenty-eight grams for 5,000 rubles per gram is 140,000 Rubles.

Are you following me this far?

The conversion rate of rubles into U.S. dollars is 100 Rubles for each U.S. dollar.
If the Rubles are tied to Gold at 5000 rubles per gram, and there are 28 grams per ounce, which means that an ounce of Gold would cost 140,000 rubles, then the conversion into U.S. dollars means that Gold costs 1400 dollars per ounce when using Rubles, instead of 1,928 dollars per ounce using the dollars.

Russia just wiped out about 30 percent (30%) of the U.S. dollar worldwide when purchasing Gold.

People worldwide are throwing their money on the Ruble and throwing away dollars and euros.

What Russia just did is the financial equivalent of detonating a nuclear bomb.
Remember, the last national leader with a vast gold supply who went on the Gold Standard was Muammar Qaddafi of Libya.

Qaddafi was mere weeks away from creating a Gold-backed African reserve currency that would have destroyed the U.S. Petro-dollar. NATO entered and destroyed  Libya, and the CIA-controlled mob drug Qaddafi through the streets, beating him; they sodomized him and finally and mercifully put a bullet in his skull.

I suspect bankers worldwide are on the phone between themselves and the heads of state, instructing them that what Russia has done will destroy the U.S. dollar and the Euro. The U.S. started this Economic War with Russia when they levied the first sanction against Russia, an act of War. This is world war three, even if there is no nuclear conflagration between the U.S., NATO, and Russia.

So, the Central Bank of Russia anchored the Ruble to Gold. Previous to this, Russia said it would sell only OIL and GAS only in Rubles. Now, the Russian Finance minister said that Russia would do everything in its power through the Russian Central Bank to make the transition from Dollars and Euros to Rubles as smooth and painless as possible. He stated they would even negotiate with some countries to make the change incremental over several months to keep from destroying international markets.

The result is that Russian oil and gas are anchored in Gold with Rubles as a proxy for Gold. And Russia has announced that in the future, they will be extending the mandatory use of Rubles to other commodities as well, like wheat and other grains, minerals, etc. Everything Russia sells in bulk will be mandated to Ruble only sales.

EFFECT: Europe (which needs Russian gas and oil) will have to buy Rubles from Putin using Gold or pay for oil and gas with Gold itself.

Currently, the FOREX (The Foreign Exchange Market) rate for Rubles to Dollars is around 100:1. However, with 5,000 Rubles now equivalent to a gram of Gold and oil being priced directly into Gold, we will see a MASSIVE price disturbance in the FOREX markets regarding how much Gold a Dollar can still buy. Foreign countries holding dollar debt notes as a reserve will start divesting debt dollars in favor of something more stable, something that holds its value.
Any currency anchored in Gold will be preferred, which means countries like Japan will start unloading their dollar debt as soon as possible. Why should they voluntarily choose to suffer along with the Dollar's fate?

The Ruble will rise in value with time.
And there is a possibility that Putin will revalue the Ruble against Gold in the future, placing further pressure on the debt currencies.

What happens as the Dollar and the Euro are dumped? There will be massive pressure toward inflation and possibly hyperinflation.

Now take some comfort that this article is written by financial neophytes, an Orthodox Priest, and an Evangelical Pastor, one in India and one in the U.S.A. If you are a financial expert, we will welcome your input in the comment section.