We have a contender to begin replacing the dollar as the next global reserve currency.
 It is regional currency that is mostly unknown outside of Europe and few Westerners have ever seen one or held it in their hands. But the way the world is now shaping up it may not be long before your local airport currency exchange features the rate of Rubles right next to Yen, Swiss Francs, Euro and US Dollars.
And its all thanks to one of the most spectacular series of blunders of US foreign policy in living memory. The combination of severe economic sanctions, threats of war, the simultaneous seizure of Russia’s overseas foreign reserves and the incredibly stupid move of evicting Russia from SWIFT has resulted in Vladimir Putin demanding that hostile Western nations pay him Rubles in exchange for energy and food exports.
The “hostiles” list includes almost every member of NATO. But Vlad appears undeterred as he has now signed off on domestic laws demanding said Rubles or he will stop shipping the goods that are required by his customers. His customer list is long and includes virtually all of Asia sans Japan. It also includes a large part of the European Union and ex-soviet satellite nations. Among the list are Hungary, Germany, Lithuania, Slovakia, Poland, Italy, Finland, Norway, Belgium, Denmark and Spain. Russia rounds out its customer list with a multitude of African nations, Turkey, China, India and Malaysia. And this is after the US sanctions were imposed.
In short, this short list of countries represents more than half the population of planet Earth who are effectively buyers either indirectly or directly of Russian gas, oil, food and other strategic resources, And the act of pricing those products in Rubles effectively makes the Ruble a reserve currency quite literally capable of overthrowing the dollar as the worlds oil pricing mechanism almost overnight.
You may have been wondering why Russia took the action that it did. Now you know and hopefully it makes sense since it too is represents an economic attack on the US in retaliation for the sanctions imposed. Naturally this is the reason why the Ruble has bounced back so swiftly from the devaluation it had been suffering since the Ukraine invasion got underway. The investment world has awoken to the obvious. They understand that a new global reserve is being born that may eventually be capable of entirely overturning the old world order that was centered on the Petro Dollar
In this regard its most notable how the role of Saudia Arabia is now pivotal in the transformation as we have seen recent friendly discusssions between SA, OPEC and Russia in regards to a new oil pricing mechanism that will also include sales of crude oil priced in Yuan. Even more fascinating is that Russia and China are such strong contenders in regards to their domestic holdings of gold that they are now both in a position to offer stable currencies that are either commodity or partially gold-backed.
What is lacking of course is depth and transparency where those currencies are concerned. Neither China nor Russia have the deep bond markets or open and accessible financial and real estate markets near the level the US continues to put on offer to the globe. But pay attention closely if Mr Putin takes steps after this Ukraine war concludes with liberalizing and opening up his economy. He may indeed have his eye on the global prize. Whoever possess the primary reserve eventually dominates the world.
Does it make you wonder if the Davos crowd and their young global leaders may have overplayed their hand while playing chicken with Russia over the stretch of land we call the Ukraine? I won’t even try to guess what the final outcome might be or whether it was all part of the plan to begin with. But clearly the world is dividing into two distinct camps and fracturing into a bipolar model that will never be ruled by a global government under a single united currency.
In this regard, the European leadership of the New World Order led by the Davos group has failed in its primary goal of uniting the globe where governance is concerned. Russia, India and China are now in the process of creating their own home-grown institutions that stand apart from those in the West that have dominated since the end of the Second World War. The current fractures will not be easily mended. Russia has played its card in response to its eviction from SWIFT and the simultaneous severe retaliatory measures leveled against it. Putin’s response stands to have devastating consequences in the long run for the economies of the established Western World.



I forgot to include the link that goes with my short piece on Rubles as a reserve currency. This is an article from 2012 where then Russian Prime Minister Dmitry Medvedev was floating the idea of the Ruble becoming a gobal reserve currency. It is the stated intent of Russia to see this achieved so we all need to understand that Putins demand that hostile nations pay him in Rubles is indeed an economic attack on the US reserve and it is one intended to establish Russian Rubles as one of the major alternative reserve currencies of the globe. This all begins with hostile nations but it ends with everyone else who is a buyer of Russian goods to also eventually be paying in Russias home currency.
The idea has been discussed as far back as 2009 when Medvedev tried to coax the G8 to admit Russia into the sacred club of global reserves. Canadian dollars are there of course as are the USD, Swiss Franc, Euro, Yen, Sterling and Australian dollars. Some time later the G7 evicted Russia from the group of eight and its my belief this demand for reserve status may have been one of their reasons. His country among the G8 was the only one not sporting reserve status.
By the way, did you notice that among the payment methods Russia was demanding as an alternative to dollars (which included gold and Bitcoin) there was no mention of being paid in SDR’s? Clearly that is a slap in the face of the IMF and a refusal to cooperate with the IMF goal of creating a single unified global currency. This is further evidence of my assertion the world is fracturing into a bipolar model. The rejection of SDR’s is therefore a flat out rejection of the plans of the New World Order and the Davos agenda.
Can the Russian Ruble Become an International Reserve Currency?https://english.pravda.ru/business/122310-russian_ruble_reserve_currency/