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G-7 Nationalized Russian's Gold in The West?

serfserf Member Posts: 9,225 ✭✭✭✭

Could get real nasty soon! But But gold is not money right? 😁

serf

https://www.aljazeera.com/news/2022/3/25/gold-russia-ukraine-wa

The US announcement to block gold transactions was done alongside the Group of Seven and European Union allies.

According to the US Treasury Department, “US persons are prohibited from engaging in any transaction – including gold-related transactions – involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation or the Ministry of Finance of the Russian Federation.”

The rule effectively bans individuals – including gold dealers, distributors, wholesalers, buyers and financial institutions – from buying, selling or facilitating gold-related transactions involving Russia and the various parties that have been sanctioned.

Comments

  • BobJudyBobJudy Member Posts: 5,414 ✭✭✭✭

    Gold is not money but can be used as an asset to back a countries economy. In your other post concerning ruble payments for gas/oil, you could argue that Putin is basing the value of his currency on energy production. You could further argue that oil/gas is a stronger backing than gold. Gold won't heat/cool your dwelling, won't generate your electricity, power your agriculture, fuel your vehicles or make your plastics. Gold is a luxury that you buy after you take care of all of the necessities, otherwise it is uselss. If Putin thought gold was the way to go he would demand it in payment instead of rubles. Bob

  • serfserf Member Posts: 9,225 ✭✭✭✭
    edited March 25

    He can demand all he wants but you cannot store a lot of oil and move it very fast. Paper money is not worth the paper it's printed on during a World War especially with the weak U.S. dollar and it's weaken leaders with progressives in charge..

    Warfare demands another type of currency especially when you are losing. Get a clue gold is money and until they harness nuclear fusion then oil and gold is joined at the hip.

    Next will be an embargoes with force if they keep playing hard ball there bob. Looks like global war is coming unless there is a break through event soon ,very soon in fact.

    serf

  • BobJudyBobJudy Member Posts: 5,414 ✭✭✭✭

    Funny you should use the example of being on the losing side in a world war. The Nazis had the equivalent of 19 billion in today's dollars in gold and it didn't help them much. They were defeated in large part by the American industrial and military might that was paid in greenbacks. In 1944 the dollar was in part backed and redeemable for gold but hardly anyone took advantage of that. In 1971 the dollar was no longer redeemable for gold to prevent other countries from exhausting our reserves. I've mentioned this before, that the problem with a commodity (gold) redeemable currency is that it allows other countries to eventually own all of your currency commodity. When you are in a deficit trading economy, like we are now, this transfer is accelerated. What do we do when all of our commodity that backs our currency is gone? Gold backed currency would be viable if the countries using it were mostly self sufficient but that ship sailed long ago and most countries are part of the global marketplace. Bob

  • serfserf Member Posts: 9,225 ✭✭✭✭

    Watch China,Russia,Iran,Saudi Arabia,Brazil and few other oil exporting countries drop the debt ridden petrol reserve USA dollar and back it with gold and tell the West with their so called Great Reset with The New green deal to take a hike.

    serf


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