“Grandmaster Putin’s Golden Trap”?

21 Dec

Grandmaster? [courtesy Google Images]

[courtesy Google Images]

Dmitry Kalinichenko recently wrote a brilliant article entitled “Grandmaster Putin’s Golden Trap”.  That article was originally written in Russian and later translated into English by Kristina Rus.

The translation is generally easy to read, but there are some portions of that English translation that may not have clearly expressed Mr. Kalinichenko’s original ideas.

The article began with,


“Very few people understand what [Russia’s President Vladimir] Putin is doing at the moment. And almost no one understands what he will do in the future.  No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.”

Say whut?!

Surely, Russia is not selling its petroleum products only for physical gold.  Surely, Russia is accepting other fiat currencies (such as euros, yuan and dollars) as “payment” for its crude oil.  From his second line, Mr. Kalinichenko’s arguments seem false or even silly.

But Mr. Kalinichenko was speaking metaphorically.

He explains:

“Putin . . . of course, still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!

“To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the Russian Funds coming from the sale of oil and gas over the same period.”

In other words, Mr. Kalinichenko claims that if you compare the amount of crude oil that Russia has sold for fiat dollars in the past several years to the amount of gold Russia has purchased, you’ll see that Russia has been buying almost exactly the same value in gold as it received in fiat dollars.  Kalinichenko concludes that it is Putin’s policy to thereby “redeem” all of his fiat dollars for gold.

True, Russia has not been selling its crude oil directly for gold—but it has been selling its crude indirectly for gold with the dollar or other fiat currencies serving as only an intermediary.

To illustrate, let’s suppose I bought one million barrels of Russian crude oil and “paid” for them with fiat dollars.  Russia would happily sell their crude for my fiat dollars.  But Russia would not view my fiat dollars as the actual “payment” (that could be reliably “saved”) for Russia’s crude.  Russia would not save my fiat dollars in their foreign reserves as a payment or world reserve currency.  Instead, Russia would only view my fiat dollars (at best, a mere promise to pay) as an intermediate step between selling a real product like crude oil and acquiring a real “payment” like gold that can be safely “saved”.

Russia would only view physical gold as the actual and final “payment” for its physical crude oil.

Thus, just as Mr. Kalinichenko claimed, Russia is being paid for its crude oil with physical gold.  Yes, fiat dollars are still used as an intermediary step in such transactions but, for Russia, the final payment is only gold.


•  Russia’s view that paper or digital fiat dollars are nothing but an intermediate step on the way to acquiring a payment is neither radical nor new.

Article 1 Section 10 Clause 1  of the Constitution of the United States has declared, in part, since it was first ratified by the People in A.D. 1788 that,


“No State shall . . . make any Thing but gold and silver Coin a Tender in Payment of Debts.”


That clause of the Constitution remains has not been repealed or amended. Thus, within the States of the Union, you haven’t been able to legally pay your debts with anything other than physical gold or silver coin since A.D. 1788. For the past 226 years, it has been (and remains) unconstitutional to pay your debts with paper or digital fiat dollars within the States of the Union.  Thus, just as President Putin correctly observes, it’s been true and constitutional for over two centuries that creditors and sellers aren’t paid until you receive physical gold or silver–at least within the States of the Union.

However, gold and silver coins are heavy, clunky, will eat holes in the pockets of your pants and ruin the line of your suit.  Therefore, from early on in our nation’s history, people were allowed to carry paper dollars–which weren’t heavy, clunky, or destructive of pants pockets and suit lines–provided that those paper dollars could be redeemed gold and silver coin.

Because those paper dollars were redeemable in gold, they were said to be “good as gold”.  Over time, the American people and even the people of the world came to believe that nonsense.  But, being “redeemable” in gold necessarily means that paper dollars were an “intermediate” step in the process of being paid.  “Payment” meant gold.  Paper meant “intermediate step” in acquiring payment.

I.e., first, you take something you own and sell it to John Doe.  Second, John Doe gives you, say, $1,000 in paper dollars.  Third,you take your newfound $1,000 in redeemable paper dollars to a bank where, you redeem (trade) your paper dollars for $1,000 worth of gold.  You were not truly “paid” when you accepted $1,000 in paper dollars.  You were legally “paid” only when you received the physical gold.

Thus, from the very beginning of this country’s history, paper dollars have always been an “intermediate means” of acquiring a true payment–physical gold or silver.  Thus, “grandmaster” Putin’s recognition of fiat dollars as only an intermediate means of acquiring an actual payment in gold is not particularly new or original.

But Putin’s recognition of paper dollars as intermediate mean to acquire payment seems new and brilliant because, after generations of being told that paper US dollars were “good as gold,” Americans and even the peoples of the world were conditioned to equate paper dollars with gold.  Believing paper dollars to be equal to gold, and preferring the convenience of paper dollars, we stopped redeeming our paper dollars for gold and accepted the “intermediate” paper dollars as if they were an actual, final “payment”.

Worse, we not only stopped redeeming our intermediate paper currency for gold payments, we forgot the fundamental differences between paper currency (a mere promise to pay) and an actual payment–gold.

Result?  The average American will gape at you at if you’re speaking in tongues if you try to explain that a $100 paper dollar is not an actual “payment”.

Result?  Relying on the public’s ignorance, the federal government and/or Federal Reserve have been empowered by law to print paper dollars (“legal tender”) as if they were actual payments rather than mere promises to pay.  That’s the financial equivalent of passing a law that allows me to write all the NSF checks I want on my empty checking account, and preventing those who receive my checks from ever submitting them to my bank for a “payment”.  So long as others accepted my checks (mere promises to pay) as if they were actual payments, and so long as I have a supply of paper checks, I could buy anything I wanted from cars, to mansions, to continents.

Those of you who sold your cars, mansions or continents to me for mere scraps of paper would be fools destined to be quickly separated from your money (true, physical wealth).  The same description applies to those of us who currently accept paper or digital “dollars” as actual payments for our work, our labor, our lives and our property:  We be fools.


•  The paper dollar’s usefulness as an “intermediary means” of acquiring a payment (gold or silver) was accepted because the paper dollar were “good as gold”–they could be redeemed for physical gold without any problem.  At least, they could be be redeemed for physical gold until A.D. 1933, when President Franklin Roosevelt removed gold coins from domestic circulation.

But domestic paper dollars could still be redeemed for physical silver, so who cared?

However, come A.D. 1968, the domestic paper dollar could no longer be redeemed with even silver coin.  But very few noticed or understood that since A.D. 1968, our domestic paper dollars could not be redeemed in gold or silver and were no longer constitutional money within the States of the Union.  We’d become “conditioned” to accept the paper dollars  (mere “promises to pay) as an actual “payment” rather than as only an intermediate means to a payment (gold or silver coin).  We’ad forgotten that a constitutional “payment” could only be gold or silver coin.  Much to our detriment, we’d lost our ability to discern between a “promise to pay” (paper dollars) and an actual “payment” (gold and silver coin).  We’d been dumbed down (or been conditioned) to accept a paper promises to pay (fiat dollars) as if they were actual payments (gold and silver coin).

President Putin’s new monetary strategy may sound radical, but all he’s done is to take a page out of American history (Article 1.10.1 of the Constitution) and applied it in his strategy of selling Russian crude oil for the “intermediate” paper, fiat dollars–and then trading those fiat dollars for physical gold in order to actually be “paid” for Russia’s crude oil.

Nevertheless, Putin’s new strategy is radical–but not because he’s figured out a way to be paid in gold.  His strategy is shifting public perception of the fiat dollar’s utility from that of a “payment” to that of a mere “intermediary”.   The significance of that shift in perception can’t be exaggerated.  Led in part by Putin’s example, Americans and people of the world are beginning to see the fiat dollar as, at best an intermediate step–but not a payment.


•  In A.D. 1971, President Nixon closed the “gold window” and stopped redeeming foreign-held paper dollars with gold.  At that point, the paper dollar became a pure fiat currency that was not redeemable in gold or silver from the government or banks.

If you received fiat dollars for your work, products or investments, they were still a “promise [of sorts] to pay” in terms of “something” physical.  But that promise would not be kept by the banks or government that issued that paper dollar.  Legally, no one on earth could redeem the paper “promises to pay” from the government or banks with anything tangible other than more paper, fiat dollars.

If you wanted to be “paid” for your work or investments by the federal government or Federal Reserve, you’d only receive new paper dollars.  The “promise to pay” was no longer supported by the people who issued the fiat dollars. Instead, the “promise to pay” had been changed into a promise that “somebody” would pay.  That is, once you accepted a fiat dollar in return for your work, the Federal Reserve and/or government implicitly “promised” that you could find some other greater fool (me, perhaps?) would give you something tangible (like a car, house or gold) for your fiat dollars.   Thus, the people (gov-co) who issued the fiat dollar did not have to also back up the implicit promise to pay.  You would be “paid” for your fiat dollar only when you spent it with some other private party.  If you were fool enough to accept some paper promise to pay from the gov-co, it would then be your responsibility to find some greater fool who’d give you something physical for the government’s “promises to pay” that you keep in your wallet.

For example, you might take your paper dollars to the gas station to buy some gasoline.  If you did, your “payment” for your work or investments would not be the paper dollars you received from the gov-co or your employer—it would be the tangible gasoline you received from the third-party gas station.

The gas station owner who accepted your paper “promises to pay” would not redeem that promise from you (the guy who received the gasoline) or from the Federal Reserve (that issued the original paper dollar), but would only redeem that “promise” when he found some other chump (a fourth party) who’d accept worthless paper dollars (promises) in return for more tangible merchandise to sell in his store or labor provided by his employees.

Then, whoever received the paper promises to pay from the gas station owner, would go out and find some other fool (fifth party) willing to trade a real payment (something physical and real that he owned or had produced) for the intrinsically worthless paper/fiat dollars.

And so it would go.  Each person who received a paper “promise to be paid by somebody” (fiat dollars) would not be paid by the person to he’d sold his goods or labor to, but would later be paid (in something physical) only by whoever subsequently accepted those paper dollars in return for yet another physical payment.

Curiously, if it’s true that you’re not actually paid for your fiat dollars until you spend them on something tangible, then it would seem to follow that you’ve never yet been paid for the fiat dollars you’re saving in your bank accounts, 401(k)s, So-So Security accounts, and pension funds.  If something happens to close down those accounts, you will never have actually received a “payment” for the fiat dollars you’ve saved.

I suspect that growing numbers of people sense this reality and are therefore converting their savings into tangible “payments” like guns, food, bullets, land, tools, silver and gold.  They want to be “paid” for their work and they no longer trust the fiat dollar as a “payment”.  They sense, much like Vladimir Putin, that fiat dollar is only an intermediate step to an actual “payment”.  Wanting to be paid, they purchase tangible properties.

Once you see it, this process of converting fiat dollars into actual payments isn’t hard to understand.  But it is surprisingly difficult to explain.


•  The important point is this: Except for receiving paper dollars as payment for taxes, the government and/or Federal Reserve do not redeem the “promise to pay” that’s inherent in every paper dollar.  The inherent “promise” in every paper or digital dollar is that one of your neighbors will probably “pay” the resulting debt—but the government and/or Federal Reserve will not.

An unredeemable fiat dollar is functionally equivalent to a NSF check written on an empty bank account—with one exception:  the fiat dollar is declared legal by the government while the NSF check is declared to fraudulent and criminal.

How rich, how powerful could you be if everyone was required by law to accept the paper checks you signed, but no one could cash your checks against your checking account?  Could you have a mansion in every state?  Could you purchase a different car for every day of month (year)?   How many lovers could you have?  How many jewels, Congressmen, Senators or Presidents could you buy if everyone was obligated by law to accept your promises to pay, but you never had to make good on your promises?

The same principle applies to the Federal Reserve and/or the federal government.  If they can issue “checks” (intangible promises to pay) that can never be “cashed” against a real government account for something physical, they can eventually buy the world without ever actually paying for it.


•  This is no small thing.

In essence, fiat dollars allow the government and/or Federal Reserve to buy physical things without paying for them.  Every time we receive fiat dollars from the Federal Reserve, if we want to change those “promises to pay” into actual payments, we must find some third party and swap our paper dollars (promises to pay) for something physical (an actual payment) that the third party owns or has produced.  But the Fed, itself, and the government, never makes an actual payment on its debts.  They make purchases with mere, intangible “promises to pay” that Congress has declared that they’re not legally required to keep.  That’s legalize fraud.

Being allowed to buy with promises but never payments, allows government (and/or the Federal Reserve) to grow exponentially.  Thus, the fiat dollar (paper promise to pay) is the foundation for Big and ever-Bigger Government.  If government had to make actual payments in something physical (gold or silver), I doubt that the current size of government would be more than 25% of the size that it is today.  If the government was required to actually redeem its fiat dollars (promises to pay) with something physical, the amount of laws and regulations imposed by government would be only a fraction of what they are today.  The number of government officers and employees would be vastly reduced. The number of wars we engaged in would be reduced. The amount of liberty lost to big government would be trivial.

Without an irredeemable fiat dollar, we might enjoy a small government, much liberty and growing prosperity.  With and irredeemable fiat currency, we are heading at high speed for big government, fascism and a police state.

You can see why our government should be desperate and determined to ensure the survival of the fiat dollar.  If the fiat dollar dies, so does big government.


•  Therefore, is Mr. Kalinichenko correct in describing Russian President Putin as a “grandmaster” in implementing his monetary strategy vis-à-vis the fiat dollar?


But I wonder if Putin really understands how dangerous his strategy may be.

I’m not talking about Russia trading oil for dollars for gold.  That’s a smart strategy, but not original or of critical importance.

I’m talking about exposing the dollar as only an “intermediary” rather than a real “payment”.  Insofar as the world picks up on that exposure, the dollar’s purchasing power will diminish or die.

According to Mr. Kalinichenko:


“Led by Russia and China, what the BRICS are doing now is actually changing the role and status of the US dollar in the global monetary system from the ultimate means of payment and asset accumulation . . . into only an intermediate means of payment intended only for exchange for the ultimate financial asset and payment—gold.

“Thus, the US dollar actually loses its role as the ultimate means of payment and asset accumulation, yielding both of those roles to another recognized, denationalized and depoliticized monetary asset—GOLD!”

Well, that’s all very clever.  By changing the world’s perception of the dollar from a payment to merely an intermediary or third-party IOU, Putin is challenging the perceived value of the fiat dollar.

But, insofar as Kalinichenko’s analysis is correct, “Grandmaster” Putin’s strategy poses a mortal threat to the fiat dollar and thereby poses a mortal threat to American “Big Government”—and is, thus, an implicit act of war against the US government.

I wonder if Putin really understands the dangers to himself and Russia that are implied in his “gold trap” strategy.

I’ll bet that there are people in positions of power within the US government who understand the mortal threat posed by “grandmaster” Putin’s monetary strategy.  I’ll bet those people in power are, right now, exploring alternatives to eliminate the mortal threat posed by the “grandmaster”.  I’ll bet that those alternatives include assassinating Putin, collapsing the Russian economy or destroying Russia with nuclear weapons.

Mr. Kalinichenko opened his article on grandmaster Putin by stating, “Very few people understand what [Russia’s President Vladimir] Putin is doing at the moment.”

Undoubtedly true.  But, does even the “grandmaster” fully understands what he’s doing?


•  Fooling around with the public perception of the value of fiat dollar will not be treated as a joke.

The last two politicians to threaten the US dollar were Iraq’s president Saddam Hussein and Libya’s leader, Colonel Muammar Kaddafi.  Hussein was hanged and Kaddafi was reportedly murdered by a knife thrust up his backside.  Both of their nations (Iraq and Libya) were trashed by military invasion and plunged into chaos and poverty.

Fooling around with the public perception of the value of fiat dollar is dangerous business.

Does “grandmaster” President Putin truly understand the inherent risks he’s taking by trying to emulate Hussein and Kaddafi?

Worse, how far will the US government go to defend the fiat dollar?

If our government’s determination to preserve the fiat dollar is unshakable, the whole world might be endangered by “grandmaster” Putin’s monetary genius.


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18 responses to ““Grandmaster Putin’s Golden Trap”?

  1. snafuradiosnafuradio

    December 21, 2014 at 8:41 AM

    good article

  2. Frank Moorman

    December 21, 2014 at 8:42 AM

    Are you Delbert Rayed?

  3. itsmymoney

    December 21, 2014 at 8:53 AM


    A very intelligent and insightful article. How true that ‘numbers in an account’ are virtually worthless until redeemed in physical goods and services. Relative to the income tax, there are many of whom redeem their paychecks in lawful money (RILM) per Title 12 Section 411. That statutory promise is to redeem your money in U.S. Notes (not FRN’s). This is a ‘virtual gold-like’ redemption and forces the U.S. Treasury to deplete it’s funds rather than to extend the private credit of the Federal Reserve; where, the theory is that once the Fed gets involved that’s where your income tax obligation lies – basically exercising a Federal privilege of using private currency via the Fed. In theory, your income tax is the interest on that ‘loan’ (your ‘money’) from the Fed if NOT redeemed per 12 USC 411. Convoluted, but this method of redemption (and lawful tax deduction as such) appears to be honored by IRS. For more info on RILM…

  4. Gary

    December 21, 2014 at 9:50 AM

    the whole world is not in danger from Putin’s actions, the whole world is in danger from United States/Rothschild’s bankers re-actions…..Putin is plenty smart enough to know exactly what he is doing, and he’s exhibiting a FAR more ‘patriotic’ position than the Americans here who SHOULD have stopped this a hundred years ago….so, MAYBE, ‘we’ hadn’t figured out what was being done by Lincoln and the federal reserve crap, but, with the education available from the internet today, WHAT possible excuse is there for Americans to be sitting by, believing somehow that ‘voting’ for that absurd and pointless dog and pony show in DC called ‘congress’ will change anything, while the private, foreign-owned corporation ‘United States’, that ‘Americans’ STILL believe is actually ‘their’ ‘government’ is now terrorizing and killing thousands, tens of thousand, or hundreds of thousands of innocent people in OTHER countries, who have done absolutely NO harm to the ‘US’, other than by their simple existence, BY DRONES! Remote, emotionless, cold-bloode murder, just like a video game for the pilots….no looking the ‘enemy’ in the eyes, just cold-blooded killing for the sake of empire building and world domination……my hat is off to Putin for standing up and taking a stance against the Rothschild cartels, something Americans should have done a LONG time ago.

  5. banksterslayer

    December 21, 2014 at 10:48 AM

    Alasdair MacLeod is coming to the conclusion that returning the Ruble to a gold standard will be Putin’s financial nuclear bomb to detonate. Great interview here:

    “Russia Onto the GOLD STANDARD”:

  6. wholy1

    December 21, 2014 at 10:48 AM

    [Will it be] the Ghost of Christmas Past or Santayana: “Those who cannot remember the past are condemned to repeat it”, “Only the dead have seen the end of war”, etc? With respect to the recent run on Russian banks and plunging exchange rate of the Ruble, what would be the equivalent chess move of the “Putin Puppeteers” redemption of a controlling portion of out-standing said “currency” thereby reverting it back to a real “money” status? BRICS international financial system is due to activate soon. RMB-denominated “Bonds” are now available in several major international financial centers. What happens when United Snakes Corp, Washington D[e]C[eit]-“Fraud Preserve”-“Ball Street”-SWIFT engineered international financial sanctions become totally relevant? What happens when the bond market collapses and takes the largest, most-liquid portion of it down also – US “Treasuries”? Time for the exposed psycho-paths [no longer] behind the curtain to “exit, stage left” to their foreign, “secured”, remote redoubts when a precipitating false-flag ushers in WW3, the carrier task forces are taken out and said “psycho-paths can “hunker down” with very little exposure to “Constitutional” United States of America military retribution/justice? While the PTB (Psycho-paths That Be) continue to ratchet up the distraction/dissembling via their “Lame Scheme Tedia” for the continued [temporary] pleasure of the attention-deficit, “Merikaan” systematically-debilitated mushroom-majority choosing to remain vegetating on dung on the dark, what remains to be the elephant in the room: continuing financial stripping of the “Nation’s” accumulated [real] “wealth” or possibly continuing obfuscation of an incoming binary star system on a 3600-year orbital cycle? For the past couple years an increasing number of discerned, increasingly prominent alternative information sources have been more frequently suggesting said scenario again. Historically, what has most often been the End-Game/Check move – [world] WAR!

  7. bakercountysolutions

    December 21, 2014 at 11:00 AM

    Aren’t we overlooking something? Who originated and manages the CENTRAL BANK in Russia? Isn’t it an arm/tentacle of The City of London, The City of the Vatican, and The City of New York? The monster dragon has many heads, but only one pumping heart.

  8. Henry

    December 21, 2014 at 11:31 AM

    Russia exports 5,000,000 barrels of oil per day at about $60 per barrel. This means Russia’s income from oil exports comes to about $300,000,000 per day.

    That amount of dollars buys 250,000 ounces of gold at current prices.

    So, who could be selling them all that gold? Where are the Russians finding so many people willing to part with their physical gold that Russia can predictably accumulate a quarter of a million ounces every day without noticeably driving up the price?

    • wholy1

      December 21, 2014 at 12:44 PM

      May I humbly offer the following for your consideration: factor in the increasing level of government spending just to “keep the lid on”, the oligarch’s obligatory cut, the usual corruption and now, possibly the most significant, increased military spending/preparedness for an increasingly possible at least, tactical nuclear war, the remaining amount is probably more in line with availability/ability to purchase – especially when considering the premium REAL price being paid by other big gold “accumulators” such as China, India just to mention a few.

    • Toland

      December 21, 2014 at 3:31 PM

      @Henry > “That amount of dollars buys 250,000 ounces of gold at current prices.”

      Thanks for thinking.

      If the author of the referenced article, Mr. Kalinichenko, was telling us the truth, and the Russians were in reality purchasing 250,000 ounces gold every day, that would equal over 90 million ounces of gold every year.

      Lol, 90 million ounces is nearly TWICE the total worldwide production of gold for the same time period.

      Clearly we’re being taken for fools and lied to – yet again – by someone with an undisclosed conflict of interest.

      • henry

        December 22, 2014 at 9:37 AM

        Some analysts have stated that the cost of production of each barrel of Russian oil is greater than $60 so, at these prices, Russia cannot buy any gold given the profits from oil. Others have suggested that the plunge in oil prices is engineered to knock out Russia, Venezuela, and Iran. Now that the United States is the largest producer of oil, it also hurts America. It looks like we are heading towards an historical moment. Either the NWO will face an important win or loss. I have no idea which way the cards will fall.

      • Toland

        December 22, 2014 at 11:20 AM

        Notice a relevant detail, henry.

        The children’s fairytale Mr. Kalinichenko is trying to palm off on us is that Russia is converting its oil revenue (not profits) into physical gold. This revenue depends on how much oil Russia sells and at what price, even if they are selling at a loss. As Henry points out, Russia’s oil revenue converts to 250,000 ounces of gold per day, which is 2,800 tonnes per year. Given the impossible size of this claim, the logical conclusion is that Kalinichenko is the sort of two-bit charlatan we often find preying on the naively gullible.

        I agree that the price of oil is being suppressed to hurt Russia, as the Russian government itself has publicly stated. The fact that the U.S. is also getting hurt by this move is not a worry for the NWO. The NWO has a long history of hurting the U.S.

      • Adask

        December 22, 2014 at 12:31 PM

        The mathematical error you’ve detected might be a mistake by Kalinichenko, or it might be a mistake attributed to whoever translated Kalinichenko’s origonal article (written in Russian) to English. But, despite the presence of any mathematical errors, the essence of the story (that Russia is using over-valued fiat dollars to purchase underpriced physical gold) remains valid and instructive.

      • Henry

        December 22, 2014 at 1:27 PM

        What “mathematical error” are you referring to, Al? Is there even any mathematics in this article by Kalinichenko? I didn’t notice any. The “error” – probably an outright fabrication – is Kalinichenko’s claim that Russia is converting its oil revenue into physical gold. This is not a mathematical claim, though mathematics proves it is a false claim.

        Kalinichenko’s report is shown to be an “error” – more likely a lie – by the fact that Russia’s oil revenue is equal in value to 2,800 tons of gold on an annual basis. This is as much gold as the IMF’s total reserves, and twice as much as Russia’s reserves.

        Who’s going to believe that Russia is buying anywhere near this huge amount of physical gold per annum, much less doing it covertly so we only hear about it from some unsourced article in an obscure Russian blog? Or, is it more like that Kalinichenko is telling us a tall tale?

      • Adask

        December 22, 2014 at 4:18 PM

        I understood one of “Toland’s” (?) comments to be based on an alleged mathematical error in Kalinichenko’s article relative to the amounts of crude oil sold by Russia and amounts of gold purchased.

        I haven’t verified that any such mathematical error truly exists, but as I said, even if that error exists, it doesn’t change the fundamental implications of the article. If Putin is not the “grandmaster,” then someone else is. Some individual, nation, block of nations or banking system is buying lots of US privately-held, underpriced gold with lots of over-valued, fiat dollars.

        A river of gold is flowing from the West to the East, and the most probable force driving that flow is the manipulation of US markets that causes gold to be underpriced and the fiat dollars to be over-valued.

        The West’s market manipulation is causing “a fool” (those who believe in fiat currency) “and his money” (gold or silver) to be “soon parted”.

        I’m speculating that when our real “money” (gold/silver) is mostly gone, we’re going to see the price of precious metals soar, the dollar collapse, and possible economic depression.

  9. Midnight Gardener

    December 21, 2014 at 1:41 PM

    Thanks for dissecting that article Alfred.

    I suspect Mr. Putin in well aware of what has happened to tin pot dictators, who used to be our puppets when they decided to take on the evil USSA empire…I also suspect he is hoping Mr. Obama and his string pullers are not stupid enough to think they can treat Russia the same way. However, since the stupidity that can eliminate from the District of Criminals seems limitless, big war may be in our future.

    I wonder what would happen if Russia decided to do what was recently mentioned by Paul Craig Roberts, i.e. stop all oil and gas exports to all NATO nations…PCR speculates that it would be the end of NATO. I suspect he is right,

    • Adask

      December 21, 2014 at 2:43 PM

      I think the implication of Mr. Kalinichenko’s article was that Putin will continue to sell crude oil to the West for over-valued fiat dollars so long as those fiat dollars can still be exchanged for underpriced Western gold. But when the West’s gold runs out–or is at least fairly priced on the free market–Putin will presumably lose his incentive to sell Russian crude for Western fiat.

      In other words, Putin will not arbitrarily stop selling crude to Nato until Nato runs out of gold or the price of gold rises to free market levels. He is going to get, while the getting is good.


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