Master strategy by Putin, expounded step by step

Frozen reserves, being kicked out of SWIFT, denial of using dollar and euro for financial transactions and many other connected sanctions imposed on Russia are just being fizzled out. One master stroke in financial strategy executed step by step outsmarted all his enemies in one go.  Parodying Shakespeare I serenade “strategy thy name is Putin”. Find here the dozen steps that broke the spine of the West: 

Step 1:  With effect from April 1, 2022 payment for Russian gas must be made in Ruble. Buyers can buy Rubles from Russian Central Bank only

Step 2:  Later it was announced that this policy would be extended to all commodities imported by America & Europe including petroleum products, minerals & metals. Wheat, fertilizers and many others

Step 3: Ruble is purchased over the counter from Russian Central Bank with a fixed parity rate of one gram of gold equalling to 5,000 Rubles

Step 4: Gold standard was introduced without much fanfare and the Ruble automatically is backed by gold convertibility that is strong and robust. Compare this with what President Richard Nixon did in August 1971 when he declared that the United States would no longer convert dollars to gold at a fixed value, thereby abandoning the gold standard

Step 5: This prompts China to quietly align with the Russian position on Yuan convertibility by introducing gold standard in China as well

Step 6: Shatters the perception by America that she has the dollar printing machinery well-oiled to pour currency in trillions to be mopped up by China and other nations

Step 7. Removes the leverage America has had, on foreign dollar holdings in the form of US Treasuries or Reserves. China does this now and is encouraged to do more of the gimmick of collateralizing dollar holdings by raising debt that is progressively channelled into BRI projects worldwide

Step 8. Nuclear blizzard is just a button away.  Neither America nor China on their own would start a nuclear war. Russia can do so anytime. Russia has such a span of space it can manage the mushroom cloud. America cannot. In any event if hypersonic missiles crises cross the Atlantic Ocean, China has to follow suit lest a rogue one hits China proper

Step 9: Putin thus far has effectively unseated dollar as medium of exchange and store of value and now dethroning the method of deferred payment

Step10: Iran is already pumping oil at pre-sanctions level without ever using US dollar. What is she doing barter or selling oil in Ruble, Yuan and Indian Rupee?

Step 11: As trend setter Russia has the back of KSA, UAE and Qatar using  currency forms like of which were unknown years ago: Euro Ruble & Euro Yuan 

Step 12. Upends the banking system to bring both Ruble and Yuan put together as most traded currencies in the basket within next few years!

Cheers! 

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist