What is money if there is no certainty that it can be an instrument of holding your hard earned wealth? If a paper currency can simply lose its value overnight with no rhyme or reason, then if cannot fulfill its purpose as a store of wealth. Fiat currency is only a promissory note, with its value primarily based on the “confidence” of the issuer. Beyond that, it is as good as Monopoly money. It cannot be differentiated from what comes out of a copier. Watching money vanish overnight is not a scary tale. The Russian rouble got totally smashed literally overnight. Anyone owning the roubles saw their “wealth” shriveled. Russia is a country that does not have massive national debt. Yet it got clobbered. How about Japan and the USA? The two largest (other than China) first world countries massively in debt? Will the Yen and the greenback come crashing down too?
The modern day financial system is entirely based on fiat currency. Powered by the number one economy of USA and the linkage of the USA as the de facto petrol dollar, the USD is king. At least until now, that status has not been taken away yet. The intricate digital system of financial dealings and money movements is largely underpinned by the US money makers – aka the banking system. The whole is petrified when the US banksters warned or threaten to destablilise the banking system. World central bankers are tightly linked to the banking cartel. Hence, the thought of a financial meltdown is too frightening to even think about. By all means, the powers of the banksters cannot be removed, lest Armageddon is triggered.
Currency wars are not new. The infamous George Soros raided the British pound in 1992 and reaped a billion profit. In September alone the GBP/USD fell 15%, but the fallout continued. By December the pair had fallen 25.4% – from a 2.0085 high in September to a 1.4980 low in December, 1992. The falling Pound ultimately allowed the British economy to rebuild. It is for this reason September 16, 1992 is also called “Golden Wednesday.” – (Vantage Point Trading). In 1997, the Thai Baht collapsed and started a chain of Asian currency turmoils in Indonesia, South Korea, Hong Kong, Malaysia Laos and the Philippines. “The foreign ministers of the 10 ASEAN countries believed that the well co-ordinated manipulation of their currencies was a deliberate attempt to destabilize the ASEAN economies. Former Malaysian Prime Minister Mahathir Mohamad accused George Soros of ruining Malaysia’s economy with “massive currency speculation“. Soros claims to have been a buyer of the ringgit during its fall, having sold it short in 1997.” – (Wikipedia). The Prime Minister of Malaysia singled out Soros as the perpetrator of the financial chaos. Malaysia was forced to imposed currency controls.
Is Russia a target of financial manipulators or political foes? The follow-up to this event is the Ukraine impasse between Russia and USA (and NATO) and the sudden and drastic dip in oil prices. These preceding events suggest that there is a political motivation. In comparison, the magnitude of the financial indebtedness and instability is in a far worse position that in the 1990s. Rocking the financial Titanic is certain capsize it. Playing financial roulette in this chaotic time is a suicidal gamble.
Former Assistant Treasury Secretary Dr. Paul Craig Roberts thinks the only thing that explains the plunge in the Russian ruble is that it is being attacked by America. Roberts contends, “It is not a currency crash in the sense there are no economic reasons for the ruble’s fall. Unlike the United States, which has a massive trade deficit, and if the currency markets were not rigged, the dollar would be collapsing, the Russian economy has a trade surplus. Therefore, there is no pressure on its currency for economic conditions.” Dr. Roberts goes on to say, “This is not some independent action of market forces. So, it’s either hedge funds, currency speculators like Soros, or it’s an Act of War on behalf of the United States government by the Federal Reserve or the Exchange Stabilization Fund. . . or possibly both hedge funds working with the federal government.” – (USAWatchDog)
Russia’s Putin is not an ordinary leader. He has shown great restraint so far. But he is not going to take this without a fight. His next move may stun the world.
And see the land, what it is, and the people that dwelleth therein, whether they be strong or weak, few or many;