It is becoming increasingly clear that the geo-strategic purpose of Russia’s invasion of Ukraine is just an excuse for the development of a higher geo-economic purpose.
Yes. Behind Putin’s military intervention with his old tanks, weapons and radios, there really is a reckless move by the Kremlin to try to redirect the world economic order towards the weakening and subsequent collapse of the dollar as the world exchange and reserve currency. Why? Let’s see.
To understand the origin of this dispute we must go back to the year 1944 when the so-called Bretton Woods agreements were signed, a pact that was signed in this small city in the United States and that brought together 44 countries in order to establish a new economic model post-war world, whose purpose was to replace the “gold standard” with a “dollar standard linked to gold”, that is, an equivalence of the different currencies and gold is established, with the dollar being the reference currency for the rest currency.
This decision made the United States the provider of global liquidity through the issuance of dollars, supported by debt, to safeguard the world financial system, basing all this on the fact that that country would back its currency issues in physical gold available in facilities of the American Federal Reserve.
Everything was going very well until, in 1965, French President Charles de Gaulle, distrusting the physical existence of the gold backing of the American currency, went to the Federal Reserve and converted US$150 million that the French State had in its reserves into gold. , which sparked worldwide fear that the system did not have the metallic backing it claimed to have. From there, the agreement once signed faltered and, to avoid an economic cataclysm, in 1971 President Nixon ended the pact with a stroke of the pen and abolished the obligation to support the printing of banknotes with gold available in the vaults of the central bank.
From there, and in order to tie the dollar as a global currency of exchange, the pact between the Arab countries and the North Americans was made so that, in exchange for the US providing them with security, they accepted that the dollar be the quoted currency. of the barrel of oil.
Since then, the issuance of American banknotes without a metallic backing is discretionary and the so-called Fiat currencies appear, that is, they represent a value that they do not intrinsically have.
Tired of this, Russia multiplied its gold reserves by six in the last 15 years and today accumulates nearly 2,300 tons of the precious metal and, being the main supplier of some raw materials and hydrocarbons, is forcing the world to acquire its merchandise in rubles. and, in alliance with China, they are promoting the Digital Yuan, and the use of China’s Cips payment platform to replace the Western banking exchange Swift system, which has been impacting the global devaluation of the dollar.
This is just the beginning, the invasion of Ukraine is just a pretext for this economic war against the dollar that then intends to lead to a new world economic order whose axis is Russia – China.