Vladimir Putin didn’t just invade Ukraine on 24 February 2022; he officially ended the petrodollar system.
How? Remember, Russians don’t do anything without a plan. They & China have been prepping for this moment for years & are now ready:
The few pointers which were hanging fire are enumerated below -
⁃ Russia has stated NATO expansion into Ukraine was a red line.
⁃ They knew their invasion of Ukraine would be inevitable and would have strategized that the US/West’s response would be SWIFT $ system exclusions/sanctions.
⁃ It is reasonable to expect that Russia’s next step would have been to shut off oil/gas pipelines to Europe, as Russia has built up huge Yuan, gold & commodity reserves.
⁃ This will cause massive price and supply disruptions (war level) to the western markets & monetary system.
⁃ For years, Russia & China have looked for ways to re-monetize gold & exit abuses of the SWIFT system as a geopolitical tool against them, but how to do it, how to exit, without West declaring it an act of aggression or war against West?
⁃ This Ukraine invasion just accomplished that end for them and, the West is doing it themselves.
⁃ Now, freed to declare themselves SWIFT system outcasts by the western govt hands, Russia can now say, “we will turn oil pipelines back on, but not for dollars.”
⁃ Russia then declares that Europe or anyone that wants Russian oil (as of 3rd largest global producer) or Russian/Ukrainian wheat (1/4 of worlds production) must pay in gold or use the ruble-yuan gold-backed payment system.
⁃ Their leverage as an oil producer (who cuts off supply) 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 & not condemned Russia? That means silent approval & cooperation.
- 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 facility and at some point overtly-stated gold backing of that system by Russia and China.
- The West will, of course, declare those last two bullets as acts of global aggression and direct threats to the “world monetary system”.
- At this point that there will be an intelligible fracture of the world’s monetary system into 2 competing East/West structures, circling back to the initial point that Putin has officially ended the 50-year global petrodollar system.
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 simply as they did with previous leaders who challenged their fraudulent petrodollar monetary system.
Interesting analysis on removing Russia from the SWIFT system:
What are the consequences of the US & EU kicking Russia off SWIFT System?
Will it hurt the Russian Economy? Economists like Raghuram Rajan want you to believe this.
But, Removing Russia from SWIFT could be exactly what Russia, China, and Bharat desire.
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 the US Govt threatened to disconnect Russia from the SWIFT system.
There are plans to integrate the SPFS network with the China-based CIPS (Cross-Border Inter-Bank Payments System). If either of those then interconnects to Bharat's SFMS ….
Can you imagine the effect?
If Russia is removed from SWIFT, the blow to the US economy and, especially, that of the EU would be enormous.
This gives the US tremendous influence over the world economy. Therein lies the real power. In a couple of weeks, the balance of power is likely to be tilted, and the new world order will emerge, nullifying the USD as the global economic power. It is waiting and watching for now.
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