The Russian ruble continues to strengthen while cracks appear in WEF narrative
by Kev Moore
It now takes only 57 rubles to purchase a dollar. May 19 was the last time I reported on the exchange rate, when it was 65:1. That a rise of 12 percent in five days.
If the purpose of the sanctions was to crash Russia’s economy, it has failed.
The big crack in the Babylonian image
Klaus Schwab’s World Economic Forum is meeting in Davos this week, and things are not going quite as they had hoped. There is some disagreement as to how they think the Ukraine situation should be handled.
Ukrainian president Zelensky appeared at the meeting in an online meeting and received the first standing ovation in history.
Then Henry Kissinger told Zelensky that he should make peace with Russia and agree to give up its eastern territory with its Russian-speaking population.
Coming from Klaus Schwab’s mentor, the architect of the New World Order, Kissinger recognizes that things are not going as well as they had hoped. In spite of the media’s claim that Russia is getting “bogged down” in Ukraine and that Russia is losing the war, Kissinger obviously does not believe the western propaganda. He was quickly blasted by some of the western media for even suggesting a peace deal to cut their losses.
This has to be the first time that the mainstream media has ever criticized its hero.
There are other signs of disunity in the Eurozone as well, especially over the purchase of oil and gas from Russia. The German government fumes, but for now they have no choice but to buy it on Russia’s terms. Poland and Bulgaria, being more ideological, refuse to comply, cutting themselves off from the supply lines. Italy has increased its imports in order to supply Germany with Russian oil and gas.
One does not win a war by shooting oneself in the foot. The west’s Russophobia and hatred in the past 30 years seems to have blinded Europe and America to economic realities. The west has followed a globalist agenda, which means it has made itself dependent upon other countries for many of its essential commodities. It was globalist ideology that made Europe dependent upon Russian oil and gas.
Globalism was supposed to unite the world under a one-world government. In this arrangement, the west outsourced its manufacturing to China and made itself dependent on Russian commodities. The west became a money-based economy. From what I hear, Putin’s original university thesis argued that world power depended more on self-sufficiency of energy and food than on monetary control. So he worked to build Russia’s oil and gas production and turned the country into an exporter of food.
His policies from the past 20 years are now bearing fruit. The west is finally waking up to this reality and are very angry to learn that they were wrong all along. They thought that sanctions would cripple Russia’s economy and destroy the ruble within days. They thought Russia would crumble like Iraq, Venezuela, and Iran. That simply did not happen, although the media pretends that it is so. Russia did indeed take a gut punch for a few weeks when sanctions were imposed, but it recovered quickly when Putin demanded rubles for its oil and gas.
For the most part, the sanctions have only hit wealthy Russians who want to purchase luxury items from the west. Now they have to get them from the eastern countries and from India.
The sanctions were supposed to be supported by the whole world. Instead, sanctions drove a huge wedge between Asia and Europe, dividing the world and destroying globalism. The plan for world government has now been replaced by a plan for totalitarian control in western countries, leaving Asia to do as it wishes. A crack of this size is sure to collapse the Babylonian image.
We are nearly to the place where the Spirit of God will be sent forth to empower God’s Universal Empire to replace the failed attempt to establish the Babylonian world empire. To use Frank Baum’s metaphor in The Wizard of Oz, the wicked witch of the east was killed in 1991 when the communist Soviet Union fell and was replaced by Orthodox Russia. Now the wicked witch of the west is being threatened as western monetary systems begin to fail.
Russia is profiting immensely from western-imposed sanctions
from GKM Dr Stephen Jones
Russia is well on its way to establishing a gold standard for its currency. They did this in response to the US theft of Russia’s bank assets—one of the largest heists in world history. Russia responded in a very positive way by backing its ruble with gold.
The US-European sanctions blocked all Russian trade in euros and dollars in hopes of shutting off oil and gas supplies to Europe and America. The problem is that Europe needs Russian oil and gas far more than Russia needs the sale. Oil and gas are simply being diverted to new markets in China and India, ensuring no shortages in those countries.
Russia then demanded rubles for oil and gas sales to Europe. Somehow, their wise men failed to see that coming. They went into a tizzy and blamed Russia for trying to get around the sanctions. They sound like grade school children who blame others for the consequences of their own actions. The West seems to expect Russia to give them free oil and gas, because the West is no longer allowed to pay for it in dollars or euros!
The stupidity of our leaders is downright embarrassing. The sanctions have backfired. Western companies can’t sell their goods to Russians anymore, so Russia has more money than it knows what to do with. Because the prices of oil and gas have skyrocketed, Russia is now awash with cash. They can even offer a $25/barrel discount to “friendly” nations and still make far more profit than before the sanctions. The West has really shot itself in the foot.
Before the Ukraine war, it took 80 rubles to equal 1 dollar. When the sanctions were imposed, the ruble dropped to 150:1. Westerners assumed that Russia’s economy would collapse. They did not understand the effect that the sanctions would have. They assumed it would hurt Russia, but in just a month, things turned completely around, and the exchange rate is now 65 rubles to the dollar.
In other words, the ruble is now stronger than it was before the sanctions were imposed! In fact, the ruble is now the best-performing currency in the world.
The utter failure of the sanctions is largely being hidden by western propaganda, but the evidence speaks for itself. Unlike in Europe and America, Russia will have no oil shortage, no gas shortage, no food shortage. As the world is now discovering, Biden has sanctioned Europe and America, and we are now beginning to suffer the consequences of his ill-advised actions. Biden blames Putin, but the fact is, Putin has not imposed any sanctions on Europe or America.
To make matters worse, Ukraine recently cut off the gas supply being piped from Russia to Europe. It seems Ukraine decided to impose its own sanctions against Europe. That pipeline had been supplying a third of Europe’s imports of Russian gas. If this continues, Europe’s business will soon be shut down as soon as their supplies run out.
Is this really a war against Germany? Is the German economy too strong and dominant? Did the US government want to weaken Germany in order to strengthen the US economy? I do not know if this is a deliberate policy to destroy Germany’s economy, or if it is just the inevitable result of old-fashioned stupidity.
If Europe abandons Russian oil, crude prices could soar to $200 per barrel, or higher, analysts warn
Russia has given “hostile” countries a March 31 deadline to begin payments for natural gas imports in rubles. The new currency-switch rule will affect countries that imposed economic sanctions on the nation and froze its foreign currency reserves. This particularly concerns some EU countries that rely heavily on Russian energy supplies.
- What will happen after March 31?
Russia says Europe will not get free gas if countries refuse to pay in rubles. “We are not going to supply gas for free, this is clear,” Kremlin spokesman Dmitry Peskov said on Tuesday. When asked whether gas would be turned off for non-payers, Peskov replied: “No payment, no gas.” He added, however, that Russia is yet to make a final decision on how to respond should European countries refuse to pay in the Russian currency.
- How much does Europe depend on Russian gas?Europe depends heavily on Russian gas for heating and power generation. Russian gas accounts for some 40% of Europe’s total consumption. The EU’s gas imports from Russia this year stood between €200 million and €800 million a day.
What happens in Europe without Russian gas?
The European Commission has said it plans to cut EU dependency on Russian gas by two-thirds this year and end its reliance on Russian supplies “well before 2030.” However, economists say it’s not easy to replace the 1,550 terawatt-hours of Russian gas delivered to the EU in 2021. Europe cannot replace the supply shortfall quickly; it will need to curb demand. Meanwhile, increased liquefied natural gas (LNG) imports in an already tight global LNG market would place immense upside pressure on prices. This would be a major hit to the European economy, which is already suffering from sky-high energy prices. A prolonged halt in supply of Russian gas would come at a cost for the EU and might even result in some countries that are more exposed to Russian gas fluctuations, like Italy and Germany, having to take emergency measures. German chancellor Olaf Scholz has warned that a ban on Russian energy imports would trigger an economic recession across Europe.
There is a risk of a global energy crisis. Russia is the largest natural gas exporter in the world and the second-largest exporter of crude oil behind Saudi Arabia, according to the International Energy Agency. Replacing Russian gas will not be easy. Europe will have to buy gas on the open market, which means if they buy from countries like Qatar or the US they will have to pay more. It also means that the gas they buy will not go somewhere else. The result will be higher gas prices everywhere as countries outbid each other for limited supplies.
Russia supplies around four million barrels of oil per day to the European Union. Unlike gas, the supply of which to a greater extent is still regulated by long-term contracts, the price of oil is volatile and is determined by supply and demand. If Europe still decides to abandon Russian oil, then crude prices could soar to $200 per barrel, or even higher, analysts warn.
So far, the EU and G7 nations have rejected Russia’s demand to switch their payments for gas to rubles. Russia said it will not provide free gas supplies, suggesting that it is ready to shut off the taps. If that happens Moscow would lose between €200 million to €800 million each day of the embargo. However, Russia could redirect some of the gas to Asia. Europe would likely face an economic crisis not seen since WWII, as soaring energy prices would send the region’s economies into recession. So, who will blink first? Place your bets.