Recent pronouncement by Anton Kobyakov, a special
Adviser to Vladimir Putin, that U.S. has devised a crypto scheme to absolve its
massive debt at the expense of global economy alarmed too many analysts in the
geoeconomics field. Let me explain:
There are markets of certainty like currency and
gold. Globally currency market is regulated so that any currency that is listed
in the board can be traded without hindrance. Sometimes a particular currency cannot
be traded in a country which is under sanctions. For example USD cannot be
traded in Tehran.
Gold on the other hand is traded in major financial
centres across the globe. This trading is either in the physical form or in futures contract. The
current spot price for physical gold is approximately $3,601.30 per ounce as of
September 8, 2025. Futures market relates to gold futures traded across the
mercantile centres such as London & Frankfurt. According to the CME group,
an estimated 510.000 contracts were traded on September 5, 2025. This volume could embrace a total of
27 million ounce of gold.
On the other hand, there is no clear- cut rules
& regulations re crypto currency such as stable coins. For the uninitiated
let me describe what is a crypto currency? It is a digital or virtual currency using
cryptography for maintaining security and is heavily traded via internet without any oversight by any
monetary authority. It operates on decentralized networks using a shared
digital ledger called a block chain to record all transactions.
America is in deep trouble as regards to her
currency debt totalling more than 35 trillion dollars which it cannot pay if demanded
by the holders of the debt. Russia foresees that America might flush this debt into crypto cloud so that
the Dollar is automatically devalued and the debt is erased altogether.
Putting it into operation, America might resort to rewriting
the rules of gold and or crypto currency markets. Whereas gold is a tangible
product crypto being intangible could not be brought under one overall
umbrella. Therefore, Anton Kobyakov foresees two different sets of rules one for gold trading and other for crypto
currency be framed so that stringent
regulation would throttle the function of the gold as a free market metal as
well as break into smithereens the virtual crypto currency so that holders of
this non-physical product would be burdened
with additional USD 35 Trillion debt wired into their asset wherein nominal value be so high yet the real value
plummets to the extent that any hitherto perceived value would be erased along with the US Dollar
debt owed by the US Treasury.
America did this twice before, during the financial
crisis of the 1930s and the 1970s, at the world’s expense. Once again she
intends to repeat this exercise. Will the business strategy of US to erase massive
work this time around. My take is that unless China being the giant geoeconomics power concur, American
economic ship sinks towards Davy Jones' locker.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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