Let's try to visualise this.
The Fed claims there is only 2.335 trillion USD in ciculation. There is no chance that is real. We don't know how much USD is out there.
What we do know is that the US Federal debt is 30 trillion, its unfunded liabilities exceed that, and the States, Municipals and Individual and Corporate debts, well, we're over 50 trillion, and then there' a total of around 100 trillion all considered with the financial instruments such as insurance and credit swaps plus their derivatives. Correct me if I'm off too much, but you get the point. The problem is compounded by the lack of transparency.
Russia has 82 trillion RUB in circulation. We know Russia central bank has intentionally let the ruble weaken, so that its export markets are stimulated, especially during the blowback and sanctions due to the Ukraine War. This means Russia is going through a temporary period of currency weakness, one which Putin approves of, but only for a limited time frame.
The ruble trades at about 1 cent per USD. 82 trillion X .01 = 820 billion. This means the FX markets are valuing all Russian rubles at less than 1 trillion dollars. Russia's national debt is 20 trillion RUB. Russia is financiall sound. Look at the difference. In the US, there is 2.3 t in circulation, and debt is over 30 trillion, or 13x more. In Russia, the factor is reversed. There is 4x more currency in circulation than there is total national debt.
This means that the RUB should actually be worth MORE than the USD. If you're not sold on that yet, consider the expanding BRICS organization. The BRICS founding members are Brazil, Russia, India, China, and South Africa. On January 1, 2024, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates become full members. Slated to join upon approval, and having already officially applied for membership are: Algeria, Bahrain, Bangladesh, Belarus, Bolivia, Cuba, Honduras, Kazakhstan, Kuwait, Palestine, Senegal, Thailand, Venezuela, and Vietnam. Beyond this, Afghanistan, Angola, Comoros, Democratic Republic of the Congo, Gabon, Guinnea-Bissau, Nicaragua, Pakistan, Sudan, Syria, Tunisia, Turkey, Uganda, and Zimbabwe have expressed interest so far.
BRICS have developed a Development Bank, Contingency Reserve, Payment System, and done preliminary work on a standalone Currency. The Development Bank has equal partners among the 5 founders. BRICS organization is offering the World an alternative to the Fed/Bank of England/EU based World Trade Organization and the International Monetary Fund. Much of the world felt exploited by those groups.
Back to the numbers. Russia is far more solvent. Russia has greater industrial capacity, greater energy and mineral reserves, and does not fundamentally link its "real economy" and its "real output" to Western-style financial models. That's how Russia can outproduce the US for pennies on the dollar, and its agreements with suppliers and manufacturers are at cost, or slightly higher, whereas in the US, the Pentagon pays many multiples higher price than is necessary. Why? To pay the corrupt politicians, and to line the pockets of the corrupt banks and Wall Street. This makes the US and Western markets APPEAR larger than they really are, in REAL TERMS. They are inflated because the relationship between real production and labor capacity is perverted to give false impressions of value.
Furthermore, in 2024, Russia takes the presidency of BRICS. It is likely to further develop the Currency, and link that currency to oil, gold, and other REAL ASSETS, not in Debt, which the US/Bank of England model has been matriculted upon since the 1970's. The so-called "Petrodollar" was never an official mechanism, it is not a binding agreement, and the Saudi's, as a new BRICS member, are already on the "other side" now. Here is an article explaining how & why Russia may see fit to back the RUB with gold. Backing the RUB with gold will further expand pressures against the West, and entice third world countries, many of whom are already jumping over each other in a race to be admitted. For how long do you think the growing BRICS will use all their own separate currencies? That is highly unlikely, as BRICS expands, and becomes more sophisticated, admitted countries such as Argentina do not have strong currencies, but offer much in terms of TRUE value. The same may be said for many of the other applicants. Founders like India and China that don't have as much raw metarials or raw precious metals are nonetheless financial powerhouses for other reasons, and they will seek to value their own holdings across the world, and their own currencies according to some new standard. That standard would easily be gold, as the people of both nations readily and historically value gold as money.
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