Russia. Gold. US Bonds

Atipatiya Vladimir Putin, Hillary Clinton is known. The Russian president allegedly joined the American election campaign in order to harm the candidate from the Democrats and help Donald Trump to take up his post. However, it seems that Putin and Trump do not trust a penny. This is at least evidenced by the most recent economic indicators from Moscow. According to these data, the Russian issuing bank in February increased its gold reserves by another 9.3 tons. Now the stock is over 1650 tons – as never since the collapse of the Soviet Union.

These purchases allow only one conclusion. The Kremlin wants to break the economic superiority of America and Europe. Unlike the dollar or the euro, gold is a currency without the state. Here, no government has the right to vote, which is why this authoritative ruler is so willing to use this noble metal.

Many experts wondered if Putin, even after Trump’s election victory, would reduce his economic dependence on America. The latest data no longer leave in it any doubt. Since November, Putin has increased the state treasury by 72 tons of gold.

“Putin is buying gold because he expects that in the long run, confidence in the dollar will decrease or the dollar will be used as a weapon against Russia,” said political adviser and author of books James Rickards. According to him, gold is an ideal investment to protect yourself from this. “Putin is not emotional. In relation to Trump for him it is simply about the power and its interests, as well as about the interests of the country, “Rickards said. “Feelings have nothing to do with it.”

Neither the financial crisis of 2008, nor the turbulent situation with oil and ruble in the past years could not keep Putin from continuing to implement his plan.

It is noteworthy that after the crisis began in Ukraine, the purchases once again suddenly increased. “It’s not about ideology, it’s about the strategic plan,” says political adviser Rickards.

The idea of ​​all this can also be recognized by the fact that, in parallel with the purchase of gold, Moscow has drastically reduced its stocks of US government bonds. Since 2014, Putin dropped US-Treasuries, as the markets call the US Treasury bonds, at $ 60 billion, which follows from the financial information service Bloomberg.

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At present, Russia has US bonds only for 86 billion dollars, almost 100 billion less than in the old times. If the Kremlin once was one of the largest creditors of the United States, now Moscow does not even belong to the top ten largest creditors in America.

Even Ireland, Switzerland or Brazil gave America more money than Russia. Thus, Putin moved further away from America. Because in times of unstable bank balances and geopolitical turbulences, the weak person is the one who gives out loans, and not the one who receives the money.

The poles of power are shifting towards the east

Gold is also a kind of insurance for Putin. This metal is recognized all over the world, and its quantity can not increase indefinitely. States that buy gold, on the one hand, lose some of the flexibility, because ingots can not simply be floated like US government bonds. And they do not go to interest. However, gold protects against the ups and downs in the currency markets.

The purchase of gold shows what kind of power politics Putin is pursuing in reality. Why does one who believes in detente and peace increase his reserves of a crisis currency?

Also, other countries have lost confidence in the US dollar and US policy and are looking for their independence in gold. China also significantly reduced its holdings of US government bonds and increased reserves of precious metal. Beijing with its 1842 tons occupies the sixth place in the world in terms of gold reserves. Part of the gold was acquired through the sale of US government bonds. Since 2014, the Communist Party has got rid of US-Treasuries for $ 300 billion and purchased 775 tons of gold.

Together, Russia and China have 3,500 tons of gold – 1,500 tons more than in 2013. Both countries got rid of state bonds worth $ 400 billion. From a financial point of view, this is nothing more than a shift of power poles from America toward the east. Even the former head of the Federal Reserve, Alan Greenspan (Alan Greenspan), said recently about the understanding of powerful movements in large states. “Gold is an ultimatum insurance policy,” said Alan Greenspan in an interview with Goldinvestor.
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