It is true that events in Russia over the past few weeks have been disturbing to watch. If one has read
Confessions of an economic hitman by John Perkins or
The Shock Doctrine by Naomi Klein, the anglo-American empire's economic warfare against Russia is easy to spot. Economic warfare is, after all, so much cheaper and 'cleaner' than overt war with boots on the ground.
© Reuters/UK Parliament via Reuters TV
The British puppet in chief forgot to check reality at home before crowing over the fate of Russia
The fundamentals just don't do justice to the shock involved in the rubles plummet from 33 to 80 rubles to the dollar within a few days.
Outside forces have been at play in order to undermine the Russian economy and the support for Putin, because ultimately, the Empire of chaos has 'regime change' in Russia firmly in its sights with a new wave of takeovers of Russian resources and privatizations similar to the Yeltsin era, where atlanticist ideology ruled supreme in the Kremlin.
With Putin at the helm, Russia has been too good at navigating the twists and turns of the US' coup in Ukraine, and avoided being dragged into an open confrontation with the Ukrainian regime, despite the best efforts of the US State Dept, Pentagon and CIA. When the manipulated drop in oil price failed to produce the desired 'check mate', the attack on the ruble was launched. As the ruble tumbled, it was easy to spot those who gleefully followed events. One of those was David Cameron, the US puppet in the UK:
The combined effect produced by Western sanctions and low oil prices proves that there's no place for Russia in the international financial system, believes British prime minister David Cameron, urging for more pressure on Moscow.
"We should stand up very firmly against the Russian aggression that's taking place," Cameron said before the Parliament on Wednesday.
Being a mere pawn of the global pathocracy, what else are we to expect from Cameron than an extra kick in the guts as the Russian bear was seemingly lying on the ground. But is Russia really not fit to be part of the international financial system and is it the end of Russia?
Well, someone has looked at the fundamentals here and compared Russia to the US and found:
And if you want to understand the health of a currency, it's imperative to look at the ISSUER of that currency, i.e. the central bank.
As with any bank, one of the most important metrics in determining a central bank's financial health is its level of solvency.
Specifically we look at the bank's capital (i.e. net assets) as a percentage of its total balance sheet.
The US Federal Reserve only has a basic capital ratio of 1.26%. Talk about razor thin. (This is down from 4.5% just a few years ago)
That means if the value of the Fed's assets declines by only 1.26%, the issuer of the world's dominant reserve currency becomes insolvent.
[...]
On the other hand, the Russian central bank's ratio is 12.5% - literally almost TEN TIMES GREATER than the Fed.
And:
Another important metric is gold. As I mentioned, since all fiat currencies are fundamentally flawed, it's important to see the amount of REAL ASSETS that a central bank holds in reserve.
To make an apples-to-apples comparison, we look at a central bank's GOLD reserves as a percentage of the money supply, i.e. how much gold backs the money supply.
In Russia, it's 6.2%. And rising. Last year it was 5.5%, and the central bank is continuing to heavily stockpile more.
How much gold backs the dollar?
Precisely zero point zero percent. Zilch. Nada.
The Fed doesn't own gold. In fact, it loudly proclaims this on its own website:
"The Federal Reserve does not own gold."
Given these facts, one wonders why Cameron has not talked about the US not being fit to be part of the international financial system. Especially since the debt now has reached
$18 trillion which is 102% of
GDP. That debt will likely never be paid back! Russia's
debt to GDP is currently 11%. Or why he thinks that Britain has a place in the international financial system as British
debt to
GDP is at 56%. A mirror please!!!
So while Cameron gloats and uses the opportunity for his anti-Russian vitriol, he forgets that Britain is an oil-producing country too that has profited greatly from the oil boom. The difference between the UK and Russia however is that British leaders didn't use their oil profits to put their country in order as the current GDP is a testimony to, but gutted Britain with privatization and the user pay system, which is great for those with enough money to pay. So how is the British oil industry going Mr. Cameron with the current oil prices? Did you check before your joyous remarks in Parliament on Wednesday about how lower oil prices were hurting Russia? The news doesn't look too good:
...the UK, and specifically its North Sea oil industry which according to the BBC is in a "crisis" and according to Robin Allan, chairman of the independent explorers' association Brindex, the industry was "close to collapse".
The story is the same as in the shale patch, only in the far colder and stormier North Sea: "Almost no new projects in the North Sea are profitable with oil below $60 a barrel, he claims. 'Everyone is retreating'"
"It's almost impossible to make money at these oil prices", Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. "It's a huge crisis. This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs wherever possible, and that's painful for our staff, painful for companies and painful for the country."
"It's close to collapse. In terms of new investments - there will be none, everyone is retreating, people are being laid off at most companies this week and in the coming weeks. Budgets for 2015 are being cut by everyone. "
© Unknown
The UK's North Sea oil industry is close to collapse.
So the British oil industry is in crisis due to the low oil prices!
Perhaps Mr Cameron was to busy reading the WSJ, which the day before spoke about a rosy Christmas for Britain due to lower oil prices:
Tumbling oil prices, rising wages and declining borrowing costs are lifting households' spending power, sending a powerful signal that consumers are set to keep Britain's economy growing in the New Year.
BOE officials in December concluded the decline in the oil price in particular should act as a mini-stimulus for the U.K. and its major trading partners, even as Russia and other energy producers reel from crude's recent slide. The BOE estimates the oil price has fallen 35% in sterling terms since June.
No wonder Britain is in an ever escalating economic debt spiral with BOE (Bank of England) officials like these to steer the economy. That is the problem with these guys running the economy and the country. They are so wrapped up in their own wishful thinking about the 'enemy over there', that they lose touch with reality on the ground.
The state of the British economy is such that they are not really prepared to pull their weight in the EU any longer and would like to renegotiate the EU treaty. This idea got a very cold reception in France if not the rest of the EU:
A French government source told the Telegraph that France was not willing to pay for the UK's presence in Brussels.
"We will not pay an extra price to keep the UK in the EU," the source said.
and
Hollande is expected to rebuff the prime minister's outlined plans by telling him he is "obsessed with his own problems" and block his request for a change to the EU treaty, the Telegraph reports.
So while a number of other
top officials in the Western world couldn't contain their 'schadenfreude' of the apparent success of their economic warfare, the fact is that Russia is not isolated and quite a number of countries such as the BRICS and the 'Global South' are not interested in seeing Russia go down.
China was quick to voice support for the Russian leadership in the handling of the economic attack and was
perhaps even actively supporting the ruble. It is a fact that the downhill slide of the ruble stopped and has come back from 80 rubles to the dollar to around 60. Quite a recovery!
The people of Britain and the Western world better wake up to the fact that they are being governed by a pathological elite that cares nothing for the welfare of the average man or woman in the street, except to the extent that they continue to act as little more than slaves. The silly sanctions are hurting Russia, but they are hurting the people in the West even more. It cannot be otherwise in a globalised world. But whereas Russia is geographically well positioned to turn to the booming and growing markets in the East, such possibilities are more restricted for the West. The one who digs a grave for others, may well fall in it himself.
