View Full Version : Vladimir Putin and the rise of the petro-ruble

Wednesday, June 14th, 2006, 06:05 PM
By Mike Whitney

05/22/06 - Information Clearing House (http://informationclearinghouse.info/)“If one day the world’s largest oil producers demanded euros for their barrels, it would be the financial equivalent of a nuclear strike”. Bill O’ Grady, A.G. Edwards

On May 10, Russian President Vladimir Putin ignited a firestorm that is bound to sweep across the global economy. In his State of the Nation speech to parliament, (http://en.rian.ru/russia/20060510/47932818.html), he announced that Russia was planning to make the ruble “internationally convertible” so that it could be used in oil and natural gas transactions. Presently, oil is denominated exclusively in dollars and sold through the New York Mercantile Exchange (NYMX) or the London Petroleum Exchange (LPE) both owned by American investors. If Russia proceeds with its plan, the ruble will go nose to nose with the dollar on the open market sending several billions of surplus greenbacks back to the United States. This could potentially send the American economy into freefall; triggering a deep recession and an extended period of hyper-inflation.

“The ruble must become a more widespread means of international transactions,” Putin said. “To this end, we need to open a stock exchange in Russia to trade in oil, gas, and other goods to be paid for in rubles."

Currently, the central banks around the world carry large stockpiles of dollars to use in their purchases of oil. This gives the US a virtual monopoly on oil transactions. It also forces reluctant nations to continue using the dollar even though it is currently underwritten by $8.4 trillion national debt.

Putin’s plan is similar to that of Iran, which announced that it would open an oil-bourse (oil exchange) on Kish Island in two months. The bourse would allow oil transactions to be made in petro-euros, thus discarding the dollar. The Bush administration’s belligerence has intensified considerably since Iran made its intentions clear. In fact, just yesterday, Secretary of State Condi Rice said that “security guarantees were not on the table” regardless of any Iranian commitment to stop enriching uranium. In other words, Washington will not provide Iran a “non-aggression pact” whether it follows UN Security Council guidelines or not.

Surely, this is a sign that Uncle Sam is on a fast-track to war.

The United States must protect its dollar-monopoly in the oil trade or it will lose the advantage of being the world’s “reserve currency”. As the reserve currency, the US can maintain its towering $8.4 trillion national debt and $800 billion trade deficit without fear of soaring interest rates or hyper-inflation. Trillions of greenbacks are constantly circulating in oil transactions just as hundreds of billions are stockpiled in foreign banks. In effect, the Federal Reserve is issuing bad checks with every dollar printed on the assumption that they will never reach the bank for collection. So far, they’ve been right, and as the price of oil continues to skyrocket, the Fed just keeps cheerily printing more worthless paper sending it to the 4 corners of the earth. Regrettably, if Russia or Iran goes ahead with their conversion plan, then the bad checks will flood back to their source and precipitate a meltdown.

America’s economic supremacy depends entirely on its ability to compel nations to make their energy acquisitions in greenbacks. If the flaccid dollar is not linked to the world’s most vital resource, then banks will dump it overnight. This extortion-racket is the system we are defending in Iraq, not “democracy”. It is a huckster’s scam designed to perpetuate American debt by forcing worthless currency on the developing world.

In a recent article by Dave Kimble, “Collapse of the petrodollar looming”, the author provides the details of Russia’s importance to the world oil market.

“Russia's oil exports represent 15.2% of the world's export trade in oil, making it a much more significant player than Iran, with 5.8% of export volumes. Russia also produces 25.8% of the world's gas exports, while Iran is still only entering this market as an exporter…. Venezuela has 5.4% of the export market.”

Obviously, it is not in Russia’s interest to trade with its European partners in dollars any more than it would be for the US to trade with Canada in rubles. Putin can strengthen the Russian economy and improve Russia’s prestige in the world as an energy superpower by transitioning to rubles. But, will Washington allow him to succeed?

A growing number of nations are now focusing on the empire’s Achilles’ heel, the dollar. Venezuela, Russia, Norway and Iran are all threatening to move away from the greenback. Is this a spontaneous uprising or is it a new type of asymmetrical warfare?

Whatever it is, Washington is bound to be reeling from the affects. After all, war maybe possible with Iran or Venezuela, but what about Russia? Would Bush be stupid enough to risk nuclear Armageddon to protect the drooping dollar?

The administration is exploring all of its options and is developing a strategy to crush Putin’s rebellion. (This may explain why Newsweek editor and undeclared spokesman for the Council on Foreign Relations (CFR), Fareed Zacharia, asked his guest on this week’s “Foreign Exchange” whether he thought Putin could be “assassinated”?!? Hmmm? I wonder if we’ll hear similar sentiments from Tom Friedman this week?)

The Council on Foreign Relations (CFR), the secretive organization of 4,400 American elites from industry, finance, politics, media and the military (who operate the machinery of state behind the mask of democracy) has already issued a tersely worded attack on Putin (“Russia’ Wrong Direction”; Manila Times) outlining what is expected for Russia to conform to American standards of conduct. The missive says that Russia is headed in “the wrong direction” and that “a strategic partnership no longer seems possible”. The article reiterates the usual canards that Putin is becoming more “authoritarian” and “presiding over the rollback of Russian democracy”. (No mention of flourishing democracy in Saudi Arabia or Uzbekistan?) The CFR cites Putin’s resistance to “US and NATO military access to Central Asian bases” (which are a dagger put to Moscow’s throat) the banishing of Washington’s “regime change” NGOs from operating freely in Russia (“Freedom Support Act funds”) and Russia’s continued support for Iran’s “peaceful” development of nuclear energy.

America has never been a friend to Russia. It took full advantage of the confusion following the fall of the Soviet Union and used it to apply its neoliberal policies which destroyed the ruble, crushed the economy, and transferred the vast resources of the state to a handful of corrupt oligarchs. Putin single-handedly, put Russia back on solid footing; taking back Yukos from the venal Khordukovsky and addressing the pressing issues of unemployment and poverty-reduction. He is a fierce nationalist who enjoys a 72% approval rating and does not need the advice of the Bush administration or the CFR on the best path forward for his country.

The US has purposely strained relations with Russia by putting more military bases in Central Asia, feeding the turmoil in Chechnya, isolating Russia from its European neighbors, and directly intervening in its elections.

When the G-8 summit takes place next week, we should expect a full-throated attack from the corporate media on Putin as the latest incarnation of Adolph Hitler. Watch the fur fly as the forth estate descends on its newest victim like feral hounds to carrion. (Putin’s announcement that Russia would be converting to rubles HAS NOT APPEARED IN ANY WESTERN MEDIA. Like the Downing Street Memo, the firebombing of Falluja, or the “rigged” 2004 elections, the western “free press” scrupulously avoids any topic that may shed light on the real machinations of the US government)

Putin’s challenge to the dollar is the first salvo in a guerilla war that will end with the crash of the greenback and the restoration of parity among the nations of the world. It represents a tacit rejection of a system that requires coercion, torture and endless war to uphold its global dominance. When the dollar begins its inevitable decline, the global-economic paradigm will shift, the American war machine will grind to a halt, and the soldiers will come home. Maybe, then we can rebuild the republic according to the lost values of human rights and the rule of law.

Putin’s plan is set to go into effect on July 1, 2006.


Dr. Solar Wolff
Thursday, June 15th, 2006, 05:26 AM
This is the Vladimir Putin we should all admire. He is doing the very best he can for his country and his people.

As an American, it might be assumed that I am against his policies. This is not true. The "dollar" which would be endangered is not the dollar by which real wealth is built. Real property values, for instance, will rise or fall but will always have value. Likewise, equity in real companies, making real things, will rise or fall but will retain their actual value. Wages, independent of cheap foreign labor, should likewise float accordingly.

What will be hurt is the speculative capital, Wall Street and the mainly Jewish banking firms which use the bouyed-up petrodollar and other artificial mediums as a vast ocean upon which to borrow money from our Federal Reserve at prime rate (something the average citizen cannot get) and to use this money to day-trade (or much worse) on the stock market with absolutely no risk to themselves. This is the basis of Jewish wealth which is the basis of Jewish power in the USA and through the USA, elsewhere.

Vladimir Putin is really challenging this basic means of how Jews aquire wealth and power. This is his crime in the eyes of the media and in the eyes of the Bush Administration. Putin fought the far-reaching arms of Jewish power during the Yukos affair. Bush, Cheney and the American/Jewish/Israeli petro-financial structure all were depending on Yukos and the potential deal they were planning to make the Iraq war profitable. Putin slammed the door on that deal so the only thing which could be done with Iraq was to do a modern-day Morganthal Plan and make Iraq Isreali-friendly or at least impotent as an enemy of Israel.

In terms of petro-policy, Russia is going one way, Iran is going another way, South America is going another way and all these directions are threatening the Bushies. But these are not bad developments for the average American. In America, we have two economies which are termed "Wall Street" and "Main Street". Main Street could care less.

Thursday, June 15th, 2006, 05:36 AM
This is the Vladimir Putin we should all admire. He is doing the very best he can for his country and his people.In reality he is turning the country back to the soviet union.

Thursday, June 15th, 2006, 03:45 PM
Wall Street and the mainly Jewish banking firms which use the bouyed-up petrodollar and other artificial mediums as a vast ocean upon which to borrow money from our Federal Reserve at prime rate

Are you not aware that 1) the Federal Reserve Bank is a private institution, not state sponsored and 2) is owned by the Bank of England? How is that ours at all?

Friday, June 16th, 2006, 06:05 PM
Lei.Talk requested additional information on the Federal Reserve Bank. The following is an edited discourse from the links below. Parts of this may seem confusing but this appears in the middle of an article that explains the odd parts.

The United States began issuing bonds to cover the expenses of running government. By 1912 there was more bond debt due than there was money in the Treasury to pay and the debt was called.

Seven very powerful families had been buying up the bonds and in 1912 they demanded their timely redemption. When the United States couldn't come up with the money due, its owner (the actual government*) was obligated to pay. The Treasury of the United States of America did not have sufficient funds to cover the bonds either but the seven families accepted all of the assets of the nation's Treasury along with all of the assets of the United States Treasury (this is not a typo) as a settlement of the debt saving the nation from bankruptcy.

By 1913 there was still no money for operating the government, and if nothing was done then the people would soon revolt against them, so the US went to those seven families and asked if they could borrow money from them.

The heads of those families refused to loan money to the US because it had already proven it would not re-pay their debts in full. They did, however, make arrangements and provisions to issue notes (Federal Reserve Notes) like letters of credit while they secured the notes for redemption of "real" money. On Jekyll Island in 1913, the Federal Reserve Bank privately agreed to so fund the US in their endeavors.

This is legal as, described in the beginning section of this article, how a private "trust" (read: corporate entity) was created early on in US history that acted as the US government, using the same name, which is why they are able to acquire funds from a private corporation, such as the Federal Reserve Bank. http://www.teamlaw.org/history.htm

In 1944, the war was not faring well for the US until the Bretton Woods Agreement and the formation of the corporations known as the International Monetary Fund (IMF) and the World Bank for Reconstruction and Development (World Bank). The Bretton Woods Agreement is outlined here: http://www.teamlaw.org/BWAgreements.pdf although you can find other sources of information on this topic.

This agreement effectively transferred the assets of the US Treasury into the IMF, and made the Secretary of the Treasury the "account holder" for the United States' account. The joining of the US into the IMF is an "international agreement" which can also be read as an "agreement between nations" or a "treaty". Treaties need to be signed by the President and then is ratified by the Senate, but Congress didn't touch this affair at all. In fact, the Agreement states that the President was authorised to do this by the "Final Act of the United Nations Monetary and Financial Conferece", being a foreign entity, which could be considered highly illegal. Here is an interesting quote that I won't re-write:

That's the problem here, in Law, it cannot be what it seems to be, yet it is. The United States of America cannot be a member in the IMF, and the Treasury of the United States of America cannot be turned over to a foreign bank's control. The only thing left is they must be talking about Corp. U.S. which was quit claimed to the IMF under the Bretton Woods Agreement as a settlement of W.W.II; that makes Corp. U.S. a private foreign corporation. We can find nothing that says a corporation cannot quit claim itself to another owner, foreign or otherwise.

OK I admit at first when I read this I thought it was ridiculous. But it does make sense in a way. If it were possible that the US Government (that which you see) is in fact acting as a private corporation, it would explain why they are able to LEGALLY get away with things that are forbidden by Laws, Acts and things like the Constitution. So you can see all this yes, then there is this:

The IMF is owned by Great Britain's Bank of International Settlements. So this grants a foreign corporation control over the United States money. It seems fishy but here is another thing that happened in US history, that WOULDN'T have happened if this were NOT true.

Between 1962 and 1968 the US went to the individual states and pointed out to them that their individual constitutions forbade them from participating in foreign currencies, loans or bonds and they were using the "foreign" Federal Reserve notes. As a result the individual state governments had formed little corporations of their own and became sub-companies of the US. An example of state legislature that was created to reflect this would be Colorado's Administrative Organization Act of 1968. And by 1972, the States had in-fact gone through a formal name change. Some examples would be the California Republic became the "State of California", The Republic of Texas became the "State of Texas", etc.

This also leads to other topics such as the seeming NEED to register for everything, such as social security (if you didn't know, you don't get a choice, you are signed up at birth btw), licenses for driving, etc. This site is very interesting and if you look for it, you will find other information to back this all up. I used their site for this because they have a lot of information all in the same place. It is often difficult to find good websites that have information that you find in books you own. :( I got lucky with this one: http://teamlaw.org/ They also talk about neat stuff like Land Patents, and the aforementioned License/Registration thing.

Count yourself lucky, I could have gotten into "why the banking system is corrupt" tangent.

Dr. Solar Wolff
Saturday, June 17th, 2006, 06:36 AM
Are you not aware that 1) the Federal Reserve Bank is a private institution, not state sponsored and 2) is owned by the Bank of England? How is that ours at all?

No, this is not true. The Federal Reserve is a bank, a corporation. Its stock is owned mostly by other banks. These banks are member banks of the Federal Reserve. The member banks are the very banks which get Fed. money at prime rate and use it for speculation. So, Goldman Sachs, Citibank, Morgan Bank, Mellon Bank, etc. all own Federal Reserve stock and get favorable treatment. Federal Reserve stock is NOT traded openly. It is not listed on the NY Stock Exchange. For practical purposes, this means you and I can not buy Fed. stock.

I have talked to a Jew from New York on the telephone who claime to own Federal Reserve stock, personally. He claimed a very high dividend on this stock.

A foreign bank may own Fed. stock but this is not ownership or control in any real sense. President Andrew Jackson abolished the American system in the 1800s precisely because it was owned by the Bank of England. Shortly thereafter the Federal Reserve was set up.

The fact is that the Federal Reserve is closely tied, bound, to the NY Stock Exchange as its member banks have seats on that exchange and make their money fixing its every move. This is the Jewish System of Finance and the basis of their wealth. In opposition is the Swiss System which is why Jews are always after the Swiss for the holocaust, banking disclosure, income to be taxed on foreign investment, etc.---Jews are at war with the Swiss System. The other big financial system on planet earth involves laundering drug money. Jews have been trying to muscle into this one for twenty years now but it is basically a South American/Italian thing.

I can explain the Swiss System if you like. An Austrian guy explained it to me and it was astounding.