The Chart That Reveals the Bank of Russia Has Been Co-Opted by Western Banking Forces
If you’d like to keep receiving free analysis like this, please be sure to like, share and comment below. I welcome all dissenting opinions and would like to hear theories that differ from my own about why the Bank of Russia would chose to abruptly and unexpectedly dissolve the ruble gold peg, when doing so obviously handed the ability of gold price manipulators to smash gold prices lower in the immediate period following the dissolution of the peg.
If you glance at the chart below, I’ve marked the day the Bank of Russia prematurely and suddenly ended the peg of 5,000 RUB to 1 gram of gold. I’ve already speculated strongly regarding the reason why Russian Central Bankers opted to do this, when they clearly had gold price manipulators on the ropes, ready to knock them out, and then abruptly let them off the ropes with zero explanation of why they would execute a strategy so detrimental to the interests of Russian citizens.
The behavior of the Russian ruble since that day, 7 April 2022, makes it crystal clear that the Bank of Russia and the Russian government are working towards two goals at the polar opposite ends of the ideological monetary spectrum. Not in the sense that both would not want the Russian ruble to strengthen. Both likely wanted this outcome. But only in the sense, as I’ll explain soon, that concessions unfavorable to the price of Russian gold reserves were likely made by the Bank of Russia to achieve the above ruble strengthening. Perhaps not all controlling interests of the Bank of Russia are at odds with the interests of the Russian government, but it certainly appears as if the most powerful ones are working against the interests of the Russian government, especially since it is clear that the Russian government still very much values its physical gold reserves as an integral part of their monetary future.
Just observe the massive 22.5% strengthening of the ruble against the USD since the Bank of Russia ended its ruble gold peg. That sentence was not a misprint. One would expect that type of strengthening of the ruble against the USD, especially since the USD continued to strengthen, not weaken, against a basket of top global fiat currencies over this same time period, only if the ruble gold peg had remained intact, not been dissolved, from 7 April 2022 moving forward.
Thus, since the ruble is such a small currency in terms of global status, though it has certainly been gaining more strength in international trade status with nations like China, the fact that it has kept strengthening, not by a little, but by a very significant amount, ever since the Bank of Russia ended its ruble gold peg indicates that clearly Bank of Russia bankers struck an undisclosed, non-publicized back-room deal whereby they agreed to allow gold and silver price manipulators to escape a short-squeeze and then consequently slam gold and silver prices lower, which they accomplished, in exchange for the Western banking gold manipulators helping the ruble continue to regain the purchasing power that NATO had crushed with its initial economic sanctions.
One only has to look at all the events that have happened in global finance markets since the Bank of Russia so suspiciously agreed to end its ruble gold peg to realize how massively important a decision this was to the global banking cartel. To begin, many US stocks have cratered since then (we just cleared 144%+ profits in a few weeks by shorting a stock here on this platform), the US stock market has tanked 13% more, BTC has cratered by 33.66% and many other smaller cap cryptos by much more, and US corporate junk bond yield has continued to soar in a manner that has not happened since I last predicted the US stock market would tank and suggested opening put options on 14 stocks, all of which returned high double-digit to triple-digit returns. Now, imagine if the Bank of Russia had not removed its ruble gold peg, which put a floor underneath gold prices that would not have allowed Western banker gold price manipulators to push gold prices below $2,000 again, as they did after the Bank of Russia bankers likely worked out their deal with Western bankers. Gold prices would have been allowed to keep moving higher, along with silver prices.
US stock market tanks after ruble-gold peg dissolved
US corporate junk bond yields continue to soar and make new high after new high, after ruble gold peg dissolved
BTC prices smashed since the ruble gold peg was dissolved
Imagine $2,000+ gold prices and $25+ silver prices in the midst of all the above action? I highly suspect, had the Bank of Russia not removed its ruble gold peg, that gold would likely be north of $2,500 and silver likely approaching $28 now, especially since the existing shorts on gold and silver derivatives on 7 April 2022 would have been relentlessly squeezed higher, in light of the crashes in global financial markets illustrated above that are all significant risk on events. The Bank of Russia had a chance to create a near perfect storm to turbo charge gold and silver prices higher, and it appears they deliberately fumbled the ball. The question is why?
I’ve actually spoken to some Russian citizens that believed dissolution of the ruble-gold peg was a good thing, simply because the ruble continued to strengthen in purchasing power thereafter, which is obviously beneficial to them. However, nothing ever happens in finance in the contrary manner to which they should, without significant secret deals being struck.
Anyone that dismisses the very strong likelihood that Western banking cartel members had long negotiations with Bank of Russia bankers to dissolve the ruble gold peg on 7 April 2022, especially in light of all developments since then that would have sent gold/silver prices soaring with the maintenance of the peg, and the prior commitment of Russia’s top bankers to maintain this peg until 30 June 2022, does not understand the complexity of the shadowy world of global finance. Again, to be clear, I’m not stating that my theory is correct and that anyone that can’t understand that is a fool. I have no proof that my theory is correct, so I would never state that. However, I have personally received massive blowback from publicly revealing how gold prices have been manipulated since 2006. Back then, numerous prominent people in the financial industry labeled all of us that divulged such information as “conspiracy theorists” and worked relentlessly to discredit us.
Even though JP Morgan, Barclays, and Deutsche Bank bankers all admitted in court, under oath, of suppressing gold and silver prices more than a decade later, none of those people have ever issued apologies to any of us for calling us liars, when indeed, they were the ones that were unethical, immoral liars. Thus, I have no doubt that if they believed the ruble-gold peg was a severe threat to their ability to continue suppressing gold/silver prices, while I can’t be sure that a backroom deal was negotiated with Bank of Russia bankers, I can be fairly certain that, at a minimum, they were in contact with them from the first day Bank of Russia bankers established the ruble-gold peg (again, to fully understand why the peg would have prevented gold price suppression, just read this article.)
Furthermore, as I explained in the above linked article, gaining assistance in restoring the ruble’s smashed purchasing power from the international banking cartel was likely not the only concessions won by Bank of Russia bankers in agreeing to dissolve the ruble gold peg. However, this is bad news for the powers that dictate economic policy for the Russian government, because it reveals that those that control Bank of Russia policy decisions have likely been compromised by pro-USD, anti-gold Western banking powers. And it will indeed be interesting to see the battle that now ensues between Bank of Russia bankers and the Russian government.
If I understand the reasons why the ruble-gold peg was dissolved, then certainly the Russian government understands this as well, and it is very unlikely that such backstabbing will be tolerated. Likely the only people incapable of considering the distinct possibility I’ve presented in this article are those that have fallen victim to the absurd immoral NATO narrative that has been spread far and wide in mass media that everyone not Russian should hate everything and anything Russian, including all Russian people.
Part II, 20 May 2022
Russia and China Have Been Planning for Attacks on Their Domestic Currencies For More than a Decade Now
As I’m sure you are aware, every mainstream analyst sophomorically attributed the ruble gaining back its purchasing power as quickly as it was to the Bank of Russia’s decision to peg the ruble to gold in an attempt to distract us from a greater underlying reality. In the shadowy world of banking, things are never as simple as they appear to be on the surface. A quick glance at the chart below reveals that the PBOC was providing massive assistance to help Russia restore the purchasing power of the ruble.
Some actions, like Gazprom’s demand that other nations pay for their gas in rubles, undoubtedly assisted the ruble’s upward trajectory (even though in reality many nations continued to deposit Euros into Gazprombank for their Russian natural gas purchases, after which Gazprombank converted their Euros into rubles). However, such actions, by themselves, cannot explain the rocket boost launch the ruble received after the dissolution of the ruble gold peg (which I will illustrate later in this article). Russia had already been planning, for at least a decade and well prior to the NATOs attack against the ruble this year, for the day the ruble would be attacked. Russia’s development of an SWIFT alternative system, the System for Transfer of Financial Messages (SPFS), since 2014, in preparation for potential “de-SWIFTing”, indicated just how aware Russian bureaucrats were of the inevitability of external attacks against their monetary and banking system.
In addition, consider the deal the Russians and Chinese struck in 2014 that set aside $24.4 billion in domestic reserves to allow for ruble yuan swaps to restore stability of the yuan and ruble should either currency come under attack. each nation access to the other’s currency as necessary to support any weakness or attacks executed against the yuan or ruble. Such arrangements allowed China to react swiftly and immediately weaken the yuan after in light of NATO attacks against the ruble that caused the yuan to soar against the ruble in an unfavorable exchange rate that threatened the functionality of their yuan ruble bilateral trade agreements. Thus, Gazprom’s call for their nation clients to pay them in rubles was nothing new, though it was incorrectly reported, as usual by the mass media as such. Gazprom’s demand to be paid in rubles for their natural gas was nothing but a continuation of ongoing policies that had been executed for many years.
For example, in 2021, Gazprom Neft, the oil segment of Gazprom, brokered a deal with China that cut out the USD and pledge to use only yuan and rubles for all petrol related transactions between the two nations. In reaction to this deal, Song Kui, president of the Contemporary China-Russia Regional Economy Research Institute, stated:
“Beijing and Moscow have a shared need in pushing ahead de-dollarization to enhance the security and convenience of bilateral trade amid any potential unilateral US sanctions.”
Clearly, the Russia and Chinese governments had long foreseen that a NATO led attack against the ruble and/or yuan was not only a distinct, but likely an inevitable possibility, and they had been proactive instead of reactive in building defenses so they could quickly respond to such an event if it happened. According to a study completed by Renmin University of China, bilateral trade between the two nations had vastly reduced usage of the USD from 90% in 2015 to just 46% by 2020 with that percentage dwindling even further during the following two years until present day. All these agreements, and more, had already been in place for many years prior the NATO coordinate ruble attack and were quickly called upon to help restore the ruble’s purchasing power.
Yet, if we look at the below chart, we can quickly observe how the prior built defenses helped the ruble rebound from NATO sanctions that crushed the ruble in an initial rebound higher. In the below chart, I have indicated the point at which the Bank of Russia established the RUBAU peg, after which the ruble continued to move higher against the USD. I believe that the Bank of Russia’s decision to peg 5,000 ruble to 1g of gold was necessary to sustain the initial leg of RUB strengthening against the USD. Why, if the Russian government felt that the measures it had already taken, pre-NATO ruble attack, were going to be sufficient to maintain RUBUSD strengthening, then why initiate a RUBAU peg? The only logical reason to initiate a RUBAU peg was if the consensus belief inside Russia was that it was necessary to sustain RUB strengthening against the USD.
The power of the international banking cartel to wreak havoc and destruction against any fiat currency they desire and against the citizens that use that currency is well-known, and the Russian government must have considered countermeasures that would be applied by the international banking cartel to weaken their achieved rapid quick restoration of RUB purchasing power. At this point, they likely decided that the RUBAU peg was necessary. As expected, this enabled phase 2 of their RUB restoration plan. But here is where things get really interesting. After dissolving the RUBAU peg, for a brief period, the RUB weakened once again, as would be expected in the absence of this all important pillar. With the loss of this pillar, at best, RUB strength would be expected to maintain current levels perhaps within a narrow channel of churning volatility. At worst, the rube would be expected to significantly falter back downward. Neither of these expectations materialized.
Instead, the dissolution of the RUBAU peg miraculously launched a third leg, and the most bullish phase that launched the RUB to 7-year highs against the USD. This inexplicable manifestation, without the benefit of negotiated back-room deals, is precisely why I believe back-room deals between the pro-USD, anti-gold banking cartel and the Bank of Russia that guaranteed continuing RUB strengthening was the trigger behind the abrupt dissolution of the RUBAU peg. For the international banking cartel, regaining the power to manipulate gold/silver global future and spot prices far outweighs any value they would assign to devaluing the RUB.
Remember, in the World of International Finance, Might Makes Right
If George Soros, the black-hearted billionaire that destroyed the British pound in 1992 and triggered the 1997 five tigers Asian crisis by attacking the Thai baht, could singlehandedly bring down nation’s economies and destroy thousands of families in the process, it must be self-evident how much more power international banking cartels wield over the fate of nation’s currencies. Soros infamously stated on the US documentary program 60 minutes in 1998, I “basically [exist] to make money. I cannot and do not look at the social consequences of what I do.” Central Bankers adhere to this tenet and amplify it to the nth degree. The comment that he cannot look at the social consequences of what he does is so spectacularly absurd for the simple logic and basic humanity that dictates that every person with the ability to financially uplift or destroy millions of lives should absolutely consider the social consequences of his or her financial decisions external to selfish, narcissistic personal gain and profit. Most simply choose not to, but to engage in self-delusion by proclaiming such decisions are never a choice is beyond morally reprehensible.
Thus, the realization of the above is likely what triggered the Bank of Russia’s decision to peg the ruble to gold despite the fact that ruble recovery was going just fine prior to its establishment.
Thus, given the initial very significant bounce higher of the RUB prior to the establishment of the RUBAU peg, obviously the media explanation of the RUBAU peg being solely responsible for the restoration of RUB strength was a conclusion either drawn from a lack of research or one intended to distract anyone from digging deeper to uncover the true reasons the RUB rebounded in strength so quickly. Furthermore, once Russian bureaucrats took notice of how the RUBAU peg buttressed all previous RUB gains and provided a rock-solid foundation from which the ruble could continue to strengthen, it is simply naive to dismiss the strong probability that these bureaucrats discussed how they could strategically use the peg to gain influence over setting the global gold price, a power that would be enormously beneficial to not only them, but to every global citizen on planet Earth.
This probability fiercely contradicts an explanation that the Bank of Russia dissolved the ruble gold peg simply because it had restored ruble strength back to levels prior to the NATO ruble attack. Being Asian, and having lived in Asia for over a decade of my life, I can tell you with utmost confidence that Asians and most citizens of Asian nations (and yes, this statement includes Russia as Russia resides on the Asian continent) never plan life around a short game. We’re always playing the long game, and if we ever engage in a short game, it’s only because it’s part of a bigger long game. For example, when the banking oligarchy attacked my last business platforms due to my exposition of their criminality and their gold/silver manipulation game, the fact that they succeeded in shuttering my last business was a tiny battle that they won, but they definitively have not won their war against me. When I finally launch my next entrepreneurial endeavor, skwealthacademy (which you may learn about in this fact sheet), my purpose of doing so is not just to provide income that enables me to live a comfortable life. My long game in launching skwealthacademy is to leave a legacy, long after my flesh has returned to ashes and dust, and to ensure that I’m still educating hundreds of thousands, and hopefully millions, about the reality and truth of the global financial game that have long remained withheld and concealed from all business academic classrooms at all academic levels.
So, if the main pillar that is the foundation of ruble strengthening is suddenly chopped down and the ruble continues to soar higher, I believe that there are internal wars being fought inside Russia, not just within the Bank of Russia, but also within the Russian bureaucracy, and this is the reason why we have received so many mixed signals. The current head of the Bank of Russia, since 2013, is Elvira Sakhipzadovna Nabiullin, Putin's economic advisor in the past. And Putin has already signaled that he will reappoint her to this position after her initial term expires this June, signaling endorsement of her performance and duties as head of the Bank of Russia. Nabiullin’s reappointment later this year, would signal congruence, and not conflict, as I suggested, between the Bank of Russia and the Russian government. Yet, many of the Bank of Russia’s decisions have repeatedly been in line with the policies of international banking cartels like the IMF, the World Bank and BIS, while only sporadically diverging from them. Thus, this is why I suggested that an internal war is being waged inside the Bank of Russia. Furthermore, I doubt that Nabiullin is the shot caller at the Bank of Russia, much like no one really believes that Jerome Powell, Janet Yellen and Ben Bernanke are/were the actual ones calling the shots as Chairman of the Federal Reserve.
If my theory is correct that both the Bank of Russia and the Russian government have powerful pawns working from the inside of both institutions to implode them both, it will be fascinating to observe which side wins these battles - the battle within the Bank of Russia, the battle within the Russian bureaucracy and the battle between the Bank of Russia and the Russian bureaucracy – to determine whether the Russian financial ecosystem implodes or if its devotion to gold as an integral part of its future provides stability to its economic future.
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The peg was removed because it had achieved its purpose and it had reached the point where the RCB would thereafter have been over-paying for Gold versus spot. RUB continued to strengthen because of the energy for Rubles deals in EUrope with Gazprom bank essentially fixing its own Fx rate for European buyers.
What a great article