Why Vladmir Putin's invasion of Ukraine will kill US Dollar and change world monetary policy forever ???

Why Vladmir Putin's invasion of Ukraine will kill US Dollar and change world monetary policy forever ???

A masterplan to destroy the Petrodollar system of oil exchange

For more than 50 years, Russia & China have looked for ways to re-monetize gold & exit abuses of SWIFT system as a geo-political tool against them.

But, how would they do it ? How could they exit SWIFT system without any dispute? What if doing that is termed as an act of aggression ?

This Ukraine invasion just accomplished that end for them. And the West is hitting the Axe in its own foot by banning Russia from the global SWIFT system.

Remember, Russians don’t do anything without a plan.

Every move they have made since Feb 24 was meticulously planned & carefully executed. China & Russia have been getting ready for this moment for years and here is the real play- (Remember, Game Theory)-

Russia's first move was stating NATO expansion into Ukraine was a red line (knowing that Ukraine will certainly make that move).?

Now they had an inevitable reason to invade Ukraine.

While invading Ukraine, they had already strategized against West's response of excluding Russia from global SWIFT $ system (more on this in second half of this article)

At this point, it was reasonable to expect that Russia’s next step would have been to shut off oil/gas pipelines to Europe (enabled by West Govt.), as Russia continues to build up their national reserves in huge Yuan, gold & commodity reserves.?

Until today, it is all going perfectly as planned by Russia.

What does the future hold?

Ban on Oil/Gas will cause massive price and supply disruptions (war level).

Now, as they are free from SWIFT system due to West Govt, Russia will now say “we will turn oil pipelines back on, but not for dollars.”?

Lets not forget that Russia is 3rd largest global oil producer contributing to 14% of total oil production. Secondly, Russian/Ukrainian wheat constitutes 25% of global wheat production. Russia then declares any commodity exchanges with them must be paid in Gold, or using the ruble-yuan gold backed payment system.?

Because of heavy dependence on Russian oil, this will cause almost immediate price shocks to the western world. A good part of the population could immediately be unable to heat their homes.?

Almost equal to the oil shock they’d cause is their ability to cause food shortages and price spikes through the disruption of wheat production.?

Unmentioned in all this is China. Who has been silent in the matter & not condemned Russia for its act.

China will act to soak up Russian production of oil and wheat to soften the blow to their “strategic partner”.?

This will again be through the Yuan-Ruble monetary exchange policy (described in detail later) and at some point overtly-stated gold backing of that system by Russia and China.?

At this point that there will be a clear fracture of the world’s monetary system into 2 competing East/West?structures, circling back to the initial point that the 50 year global petrodollar system has just officially been ended by Putin.?

If the above analysis is indeed correct, then the threat to the petro-$ is no different to the time of Charles De Gaulle or Gaddafi, but on a far larger scale. They can't remove Putin as easy as they did with previous leaders who challenged their fraudulent petrodollar monetary system.?

Now, what does removal of Russia from world Swift system change for the world?

SPFS (‘System for Transfer of Financial Messages') is a Russian equivalent of the SWIFT financial transfer system, developed by the Central Bank of Russia. The system has been in development since 2014, after US Govt threatened to disconnect Russia from the SWIFT system.

Above, we saw that the West cannot completely stop import of Russian oil & wheat. Also, a large of export deficit caused to Russia will be filled in by China & India. (those being the two most populated countries in the world resulting in massive consumption power)

There are plans to integrate the SPFS network with the China-based CIPS (Cross-Border Inter-Bank Payments System) & the eventually to India's SFMS....

Can you imagine the effect?

If Russia is removed from SWIFT, the blow to the US economy, and especially that of EU would be enormous.?The vast majority of SWIFT transactions are settled in US dollars, which helps solidify the US currency status as the global reserve currency.

This gives the US tremendous influence over the world economy, therein lies the real power.

If Russia + China + India come up with an alternate system to compete against SWIFT that will be a competing currency transactional system and it’ll further weaken the US dollar.

Not to mention Russia is the second largest exporter of energy and China is the largest manufacture exporter with India fast catching up.

They could start their own economy & adopt existing partners such as African countries (largest precious mineral producer) and Saudi Arabia (third largest energy producer) putting Europe and United States economy on back foot extensively.

By Removing Russia (one of the biggest oil producers) from Swift, USD will be DESTROYED as global currency as oil, most traded commodity in world, is paid in USD.

?If "forced to leave SWIFT", Russia will expand SPFS internationally, and nations that intend to keep importing Russian oil & natural gas will have to join Russia’s new banking transaction system.

And you know that Russian Gas is cheapest in the world.

If Russia breaks from SWIFT, watch for China & India to announce same. We are actually watching the destruction of the USD taking place before our eyes.

Other countries will be more than happy to assist with this New System which gives them a chance to improve their currency.

Start looking for words “Eurasian Union” to appear in articles very soon. We are getting closer to the new digital economic system and global digital currency soon.?What is horrific is that developed countries [US etc] will drop from having 80% of World's income to 35%.

Ordinary Americans calling for Russia to be ejected from SWIFT, do not realize that US uses the dollar to borrow at discounted rates, that debt is $30Trillion as of today, so if the dollars’ influence is reduced, US transactions would be much more expensive.

US economy will be on verge of destruction while paying interest elements only.

While costs for businesses would pass on to US consumers, Americans would have to then pay more for everything. Are they ready for that? Are US politicians & companies ready for that as well?

Do you still think that President Putin acted in haste with Ukraine Offensive?

William G. Scotti Jr.

Senior Sales & Operations Management

1 年

So why would the United States sacrifice their whole economy and plunge the US into a major recession/depression over a former Soviet Republic? There are horrible governments all over our planet who invade and kill citizens with impunity. What makes the Ukrainian people anymore important or of greater significance over other failed states, such as Syria, Libya, Sudan, Somalia, Nigeria, the Congo? The article makes too much sense. Are the American People just sitting by in a catatonic state as their leadership? Will the American people wake up or have Americans allowed themselves to be content with defeatism. The American condition, their psyche, has been hijacked & brainwashed to a point of no return. The Genie is out of the bottle and our enemy is us. https://baptistnews.com/article/another-year-more-conflict-in-africa-wheres-the-off-ramp/?gclid=CjwKCAjw8-OhBhB5EiwADyoY1f77GohSP436jByggFbGWJdcQKifYM3s8yiPz2zFonApFtyt78ItShoC6MIQAvD_BwE

Frank Filser , PhD

Inventor, Implementer and Mover, Coach and Consultant. Looking for new challenges and opportunities

3 年

It might be a scenario. 1- Putin is a liar and breaks agreements . Who is ?in bed‘ with Putin will get his arm chopped off. Even the worries of doing business with Putin will have impact. 2- we see a track record of Putin in other countries , eg georgia , crimea, Belarus . Countries gonna choose being lead or not by somebody who produced wealth or poverty, freedom or prisons , move forward or propaganda. Getting under his dependence is - at least not wishful for me. Same with china . 3- I see that we move from fossil to renewable energy towards renewable energy and that the shift is causing problems in the countries selling fosil energy. Go through your narrative and reduce fosil energy to 50% or to 25% of today consumption. Fosil energy will also be much more expensive than alternative energy and hence I see china and India also converting towards alternative . The war has accelerated that move . Natural gas is deemed being transitional . -4 china has not Leadership role and specifically did not take one in these times. China has issues a few statements of ?should‘ or ?could‘ or ?must‘ which we know are not part of leadership . Leadership is about being responsible . US, EU together with intern cooperations took leadership

Medical emergency...

Ishan Kenia

Assistant Vice president at Deutsche Bank

3 年

Well written and logical too Jay Vekaria

Anju Mehrotra

Director - Investor Relations at Vatsala New Renewables Energy Ltd.

3 年

A logical analysis Jay.

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