- The Collapse of the Western Fiat Monetary System may have Begun. China, Russia and the Reemergence of Gold-Backed Currencies
by Peter Koenig, http://www.globalresearch.ca/
On 19 April 2016, China was rolling out its new gold-backed yuan. Russia’s ruble has been fully supported by gold for the last couple of years. Nobody in the western media talks about it. Why would they? – A western reader may start wondering why he is constantly stressed by a US dollar based fiat monetary systems that is manipulated at will by a small elite of financial oligarchs for their benefit and to the detriment of the common people.
In a recent Russia Insider article, Sergey Glaziev, one of Russia’s top economists and advisor to President Putin said about Russia’s currency, “The ruble Is the most gold-backed currency in the world”. He went on explaining that the amount of rubles circulating is covered by about twice the amount of gold in Russia’s Treasury.
In addition to a financial alliance, Russia and China also have developed in the past couple of years their own money transfer system, the China International Payment System, or the CIPS network which replaces the western transfer system, SWIFT, for Russian-Chinese internal trading. SWIFT, stands for the Society for Worldwide Interbank Financial Telecommunication, a network operating in 215 countries and territories and used by over 10,000 financial institutions.
Up until recently almost every international monetary transaction had to use SWIFT, a private institution, based in Belgium. ‘Private’ like in the US Federal Reserve Bank (FED), Wall Street banks and the Bank for International Settlements (BIS); all are involved in international monetary transfers and heavily influenced by the Rothschild family. No wonder that the ‘independent’ SWIFT plays along with Washington’s sanctions, for example, cutting off Iran from the international transfer system. Similarly, Washington used its arm-twisting with SWIFT to help Paul Singer’s New York Vulture Fund to extort more than 4 billion dollars from Argentina, by withholding Argentina’s regular debt payments as was agreed with 93% of all creditors. Eventually Argentina found other ways of making its payments, not to fall into disrepute and insolvency.
It is no secret, the western dollar-led fiat monetary system is on its last leg – as eventually any Ponzi scheme will be. What does ‘fiat’ mean? It is money created out of thin air. It has no backing whatsoever; not gold, not even the economic output generated by the country or countries issuing the money, i.e. the United States of America and Europe. It is simply declared “legal tender’’ by Government decree.
No pyramid scheme is sustainable in the long run and eventually will collapse. It was invented and is used by a small invisible upper crest of elite making insane amounts of profit on the back of the 99% of us. Since these elitists are in control of the media with their lie propaganda, as well as the warmongering killing machine, US armed forces, NATO, combined with the international security and spy apparatus, CIA, MI6, Mossad, DGSE, the German Federal Intelligence Service (BND) and more, we are powerless – but powerless only as long as we ignore what’s really going on behind the curtain.