Russia’s President Vladimir Putin has expressed his disdain for the global U.S. dollar- based payments system so many times that few are still paying attention. The problem is that every time Putin speaks, his position grows stronger from the time before.
Russia is buying about 30 tons of gold per month and has increased its gold reserves from 600 tons to 2,000 tons over the past 10 years. Russia is also working with some of the world’s most sophisticated software developers to build a heavily encrypted state-of-the-art digital distributed ledger that can support a Russian-backed cryptocurrency possibly backed by gold.
These efforts are done in conjunction with similar efforts by the Chinese. As this article reports, the endgame is an alternative global payments system that will substitute for SWIFT and be controlled by Russia and China with participation by countries including Turkey, Iran, North Korea and possibly many others.
This alternative system will exclude the U.S. and U.S. dollars, finally creating a way for nations to trade and settle balance of payments without using dollars and without relying on portals such as SWIFT and Fedwire that are controlled by the U.S. In turn, this means that U.S. economic sanctions will no longer be effective because countries will have an easy way around them using this new nondollar system.
Putin is insistent on this new system and is close to achieving it. When the new system is rolled out, you won’t be able to say you weren’t warned.
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