15:20 GMT +321 February 2017
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    Gold-Backed Ruble, Yuan to Trigger Global De-Dollarization

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    A gold-backed ruble and gold-backed yuan could start a 'snowball exit' from dollar F. William Engdahl notes, adding that it will diminish America's ability to use the reserve dollar role to finance Washington's perpetual overseas wars.

    The irony of the situation is that the central banks of China, Russia, Brazil and other countries "diametrically opposed" to US foreign policy course are forced to stockpile dollars in the form of "safe" US Treasury debt in order to protect their economies, American-German researcher, historian and strategic risk consultant F. William Engdahl stresses.

    The truth of the matter is that the role of the US dollar as the world's major reserve currency is the countries' economic Achilles Heel, the strategic risk consultant elaborates.

    At the same time, by buying US Treasury debt in dollars, they are de facto financing Washington's "endless" overseas military operations.

    Fortunately, "[t]hat's quietly changing. In 2014 Russia and China signed two mammoth 30-year contracts for Russian gas to China. The contracts specified that the exchange would be done in Renminbi [yuan] and Russian rubles, not in dollars. That was the beginning of an accelerating process of de-dollarization that is underway today," Engdahl writes in his article for New Eastern Outlook.

    The researcher points out that on November 27 Russia's Central Bank reported that it has included the Chinese Renminbi (yuan) into its official reserves for the first time.

    Furthermore, in August 2015 Russian currency traders bought almost 18 billion yuan and only 3 billion US dollars. It is obvious that Russia is gradually increasing the use of the yuan in Russian financial markets, substituting it for the US dollar.

    "But the actions of Russia and China to replace the dollar as mediating currency in their mutual trade, a trade whose volume has grown significantly since US and EU sanctions in March 2014, are not the end of it," the researcher remarks.

    According to Engdahl, there are clear signs showing that gold "is about to make dramatic return to the world monetary stage."

    And it's not all good news for Washington.

    While it is believed that the US Federal Reserve holds about 8,133 tons of gold, the rumors circulated that things are not what they seem and "the gold chamber of Fort Knox" are nearly empty, Engdahl narrates.

    Adding more fuel to the fire are doubts surrounding US' official gold statistics, a strange event occurred in 2012.

    "In 2012 the German Government asked the Federal Reserve to return German central bank gold 'held in custody' for the Bundesbank by the Fed. Shocking the world, the US central bank refused to give Germany her gold back, using the flimsy excuse that the Federal Reserve 'could not differentiate German gold bars from US ones…' Perhaps we are to believe the auditors of US Federal Reserve gold were laid off in the US budget cuts?" the researcher asks.

    Engdahl remarks, that Germany is considered the second-largest gold holder with its reserves of 3,381 tons of golden ingots.

    Meanwhile, Moscow and Beijing are boosting their gold holdings steadily.

    Engdahl emphasizes that from January 2013 Russia's official gold reserves increased by 129 percent to 1,352 tons as of September 30, 2015, adding that during "the dark Yeltsin years" of the 1990s Russia's golden vaults contain only 343 tons.

    "Russia now holds as many ounces of gold as the gold exchange-traded funds (ETFs) do," he stresses.

    According to the researcher, Russia and China are decisively paving the way for the world economy de-dollarization.

    "A Russian-Chinese alternative to the dollar in the form of a gold-backed ruble and gold-backed Renminbi or yuan, could start a snowball exit from the US dollar, and with it, a severe decline in America's ability to use the reserve dollar role to finance her wars with other peoples' money," Engdahl concludes.


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    • avatar
      Randall Lee Hilburn
      This is the way to end US Imperialism once and for all. However, I'm afraid that the US Government is launching WW3 in order to maintain their position. Just look what happened to Libya, Iraq, and Hugo Chavez when they tried to leave the US controlled financial system, and they were nowhere near the threat to it that the BRICs countries are.
    • avatar
      Tactical Investor
      It will take time, but that is this the best way to end the easy financing the US enjoys at the expense of other nations. The more bilateral trades that are conducted by countries bypassing the dollar, the faster it will sink and the faster the world will move towards a point of equilibrium
    • Blackie
      Goodbye US .
    • avatar
      BRICS will have a BIG bank. SCO too.. EEU have one. And is growing fast. Soon the IMF and WB will be at the park feeding the doves. Russia MUST create powerful institutions. Gold reserves MUST be in the trillions. 3 times bigger than anyone ever... 30 trillions? That will assure Russia a stable future. You never know,.. But reserves of ALL kinds, including rare earths and recycled materials MUST be have. Just grow them and once limit reached, keep growing them indefinitely.
    • avatar
      If a country actually promises to redeem its currency for gold at a certain price, the Wall Street financial speculators will immediately buy its currency, exchange it for gold, and take the gold out of the country, by whatever means necessary, even if it is illegal and borders are controlled, it won't matter, that country will lose its gold. The simple thing to do is to offer to buy gold at a certain premium over the manipulated "paper gold" price, and keep raising the price. Then the speculators will looking for gold to sell in order to make a profit on the raised price ("buy low, sell high") and the gold will flow into the country. And then, the price of gold will be higher all over the world. And then the Wall Street price manipulation by "paper gold" will end, and the dollar will sink like a stone. And then the world can begin to use gold as a currency for international settlements instead of the dollar (although I don't know how that works, Michael Hudson does). It is a step toward sovereign currencies and the end of trading valuable goods for dollars in order to pay back the dollars to US financial speculators for loans.
    • avatar
      I'm all for it. I'm for anything that removes power from the terrorist American government. They have proven incompetent as a global leader.
    • Воин Света
      Best news I've seen all week.
    • avatar
      If it works to get the dollar back to just being the "money" (debt) of the U.S., fine, but gold is not, nor will it ever be, money. It is a commodity, worse, a scarce commodity. It could never be a real medium of exchange. No medium of exchange needs anything behind it but honesty. However, until the Rothschild cabal is separated from the earth there will be no honest money. Anyone who thinks the U.S. controls the debt dollar doesn't think.
    • Ann in reply toRandall Lee Hilburn(Show commentHide comment)
      Randall Lee Hilburn, It may end the US reign of terror, but we need to be ever vigilant, because the Rothschilds Mafia will just go about creeping it's ridiculously wealthy tentacles into another country's government...they will not stop until they are dragged out and hanged.
    • avatar
      ConcernedCitizenin reply toRandall Lee Hilburn(Show commentHide comment)
      Randall Lee Hilburn, they were nowhere near the threat but they were nowhere the power either. Taking on Russia or China is VASTLY different than taking on Libya, Irag or Venezuela.
    • avatar
      I have many times pondered why would any country especially Russia and China finance their enemies war machine by buying US treasuries. It's like assisted suicide. Aiding and abetting the US war machine financially or otherwise should be an international criminal offense.
    • avatar
      teddy jin reply tocast235(Show commentHide comment)
      cast235, the BRICS BANK -- NDB-- which is separate from the other giant bank AIIB --

      IS now preparing the final touches to launch the first of its development projects for emerging nations =- in 2016.

      and the borrowings by this bank itself - will be in YUAN. IT will help ensure that the new investments and developments in countries - as well as the resulting infrastructures and economic gains will NOT BE influenced or ''rigged'' according to the US dollar's scheming to insert itself in economies...IF the chinese and NDB AND BRICS so decide that everything ''returnable" to the investment bank and the CHINESE MINISTRY OF FINANCE -- which has the final say on all matters WHERE THE YUAN is involved |(like in AIIB) --

      can not be influenced by what americans want to dictate through the DOLLAR ''markets".

      if the chinese say:

      we will/ accept payments from NDB and countries from the DBC lending in development projects ONLY in YUAN OR RUBLE etc...

      and NOT dollar -- that's ANOTHER way to STRIP the dollar of usage.
    • avatar
      Also, the sentence claiming that the Federal Reserve has 8133 tons of gold. How is that any help to the US government even if true. The Fed is a private corporation. A corporation that in fact controls the US government.
    • avatar
      Randall Lee Hilburnin reply toConcernedCitizen(Show commentHide comment)
      ConcernedCitizen, For sure. But I'm not altogether sure that the Washington megalomaniacs are aware of that fact. I heard an Army General say that it would only take them a week to defeat Russia. See what I mean.
    • avatar
      and save America from its criminal takeover
    • The question is : what the us will do if they are about to lose ...... start a war against Russia and China..
    • avatar
    • Lambrecht Albert van Marion
      Large scale daydreaming by Russian trolls. Engdahl's views are well known and it's no surprise that his comments are being published by Sputnik International.
    • This is incredibly interesting but it takes time to build up a parallel structure. Slowly but surely it has been going on. No one has given a time frame. How long did AIIB take to set up?

      What about the Russia SWIFT system? I assume there'll be many more stepping stones until it's finally done. Also if you look at both Russia and China's approach it has been very inclusive for any country to be a part of and very diplomatic.

      So don't expect any firework moves because I suspect it will be very methodical and very calmly done.
    • Blackie
      They could not tell the difference between gold held, and a mix up, so they did not find German gold, but they said they are still looking tho. Just wait a little bit.
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