Sanctioned Russian Bank Rossiya Ends Foreign Currency Operations

[Camilo]

Putin Flushes the US Dollar: Russia’s Gold Ruble Payments System Delinked from Dollar?

A New Financial System independent from Wall Street and City of London begins to take shape concretely in Russia?

Russia “forced” by the sanctions to create a currency system which is independent from the US dollar.

Russia announces that it will sell (and buy) products and commodities – including oil – in rubles rather than in dollars. The move is towards the development of bilateral.

Putin has been preparing this move — the creation of a payment system in rubles completely independent and protected from the Dollar and the “killer speculations” (e.g. short-selling) of the big Western financial institutions — for a long time.

After sanctioning several Russian banks to punish Russia for Crimea, the Washington politicians were told by the financial power-to-be to step back because obviously, the Wall Street vampires understand that putting Russian banks outside the reach of their blood sucking teeth is never a good idea.

For Wall Street and the city’s financial services, countries like Russia should always have an open financial door through which their real economy can be periodically looted. So Washington announced that it was a mistake to enforce sanctions on all Russian banks; only one, the Rossiya bank shall be hit by sanctions, just for propaganda reasons and to make an example out of it.

It is what Putin needed. Since at least 2007, he was trying to launch an independent Ruble System, a financial system that would be based on Russia’s real economy and resources and guaranteed by its gold reserves. No tolerance for looting and financial speculation: A peaceful move, but at the same time a declaration of independence that Wall Street will consider as a “declaration of war”.

According to the Judo strategy, the sanction attack created the ideal situation for a “defensive” move that would redirect the brute force of the adversary against him. And now it’s happening. Bank Rossiya will be the first Russian bank to use exclusively the Russian ruble.

The move has not been done in secret. On the contrary. A huge golden ruble symbol will be set up in front of bank Rossiya headquarters in Perevedensky Pereulok in Moscow “to symbolize the ruble’s stability and its backing by the country’s gold reserves,” the official agency Itar-Tass explains quoting the bank officials.

In fact, the officials are very clear on their intention to punish the western speculators that have been looting their country for a long time:

“Russia, at its present stage of development, should not be dependent on foreign currencies; its internal resources will make its own economy invulnerable to political wheeler dealers.”

This is only the first step, declared Andrei Kostin, the president of VTB, another bank previously sanctioned:

“We have been moving towards wider use of the Russian rouble as the currency of settlement for a long time. The ruble became fully convertible quite a long time ago. Unfortunately, we have seen predominantly negative consequences of this step so far revealed in the outflow of capital from this country. The influx of foreign investments into Russia has been speculative and considerably destabilizing to our stock markets.”

According to Itar-Tass, Kostin was very precise and concrete:

“Russia should sell domestic products – from weapons to gas and oil – abroad for roubles and buy foreign goods also for rubles….Only then are we going to use the advantages of the rouble being a foreign currency in full measure.”

Putin himself lobbied for the new siystem in meetings with members of the Upper House of the Duma, the parliament, on March 28, overcoming the last doubts and indecisions: “

“Why do we not do this? This definitely should be done, we need to protect our interests, and we will do it. These systems work, and work very successfully in such countries as Japan and China. They originally started as exclusively national [systems] confined to their own market and territory and their own population, but have gradually become more and more popular…”

http://www.globalresearch.ca/putin-flushes-the-us-dollar-russias-gold-ruble-payments-system-delinked-from-dollar/5375866

[Tesseract]

If anyone can clarify whether or not the rouble really is or will be backed by gold please post.

[Snoweagle]

Probably another flash scare that will be resolved by Wednesday with smiles all round for the bankers.

After dealing with the March "madness", hardly makes Putin a fool.

[ghostrider]

if another country joins Russia and uses a different currency and other follow suit , it's bye bye dollar ... it could signal the beginning of the end of the petro-dollar and a monetary collapse in the United States ...

[ThePythonicCow]

Putin Flushes the US Dollar: Russia’s Gold Ruble Payments System Delinked from Dollar?
I changed the title of this thread from


Putin Flushes the US Dollar
to


Sanctioned Russian Bank Rossiya Ends Foreign Currency Operations
The original title was just a tad bit over stated in my view :).

The report on this which strikes me as most balanced comes from the Moscow Times:
Sanctioned Bank Rossiya Ends Foreign Currency Operations (Reuters) (http://www.themoscowtimes.com/business/article/sanctioned-bank-rossiya-ends-foreign-currency-operations/497106.html):

~~~~~~~~~~~~~



St. Petersburg-based Bank Rossiya is to cease all foreign currency operations and work only with the ruble in response to U.S. sanctions imposed last week, it said in a statement on Friday.

Bank Rossiya is Russia's 15th-largest bank by assets, and the only Russian company that has so far been included on the list of individuals and entities sanctioned over Russia's annexation of Crimea, because of its close links to businessmen seen as personal allies of President Vladimir Putin.

U.S. officials said that the bank would be "frozen out of the dollar."

On Monday the bank advised its clients to cease payments in foreign currencies.

The head of state-controlled bank VTB said Bank Rossiya's decision was a step towards broader use of the ruble as a settlement currency.

"Russia should sell Russian products — from armaments to oil and gas — in rubles, and should also buy goods in rubles," VTB CEO Andrei Kostin said in a transcript of an interview he gave to Rossia 24 distributed by VTB. "Then we will get the full benefits that the ruble gives us as a convertible currency."

Kostin said Russia has been moving for some time towards making broader use of the ruble as a settlement currency — the currency in which goods and securities are paid for.

While the ruble is effectively fully convertible — meaning holders can switch freely into other currencies or gold — the effects have been "more negative," he said.

This has led to capital outflows and inflows of foreign investments of a "highly speculative nature that to a significant degree destabilize our stock markets," he said.

In its statement on Friday, Bank Rossiya said that it had informed several U.S. banks that it was closing its correspondent accounts.

The bank said that the changes did not affect its ability to fulfill its obligations before its clients and partners, all of which it said are being fulfilled on time and in full.

~~~~~~~~~~~~~

[ThePythonicCow]

If anyone can clarify whether or not the rouble really is or will be backed by gold please post.
As best as I can figure, this is not a specific ruble to gold convertibility commitment, but rather a decision by the Russian Bank Rossiya to end foreign currency processing and to close accounts denominated in foreign currencies, including in the US Dollar.

The bank is putting a huge golden ruble symbol in front of its bank, “to symbolize the ruble’s stability and its backing by the country’s gold reserves,” which I took to mean roughly "this bank is strong because Russia's monetary system is strong and Russia owns gold." I see no specific terms and conditions of gold convertibility with the ruble, and in any case, it would be Russia, not one of its banks, that would be the one to assert such conversion terms.

This sounds to me rather like my telling the car salesman that he can sell me that nice car on credit "because I have a nice job." I am not making any particular promise to work for the car lot; just claiming to be financially reliable. (To be clear, I don't own a "nice" car, I don't buy cars on credit, and I don't have a paying job, nice or otherwise.)

This may indicate a trend: claiming that people can trust a country's currency because that country has gold ... which is not the same as actual gold and/or silver currency :).

[ThePythonicCow]

Here's a related report from the Russian news agency Itar-Tass: An action in support of bank Rossiya to take place in Moscow (http://en.itar-tass.com/economy/725832):

~~~~~~~~~~



MOSCOW, March 30. /ITAR-TASS/. An action in support of bank Rossiya which has decided to work exclusively with the national currency will take place in Moscow on Sunday.

The Golden Symbol of Russian Rouble installation in front of the bank’s office in Perevedensky pereulok in Moscow will symbolize the rouble’s stability and its backing by the country’s gold reserves, the action’s organizers explained to Itar-Tass.

The action is designed to voice support for the Rossiya bank, which is creating a precedent and can make those who have initiated penalties against Russia to feel sorry about their decision.

The bank’s transition to using exclusively the rouble may prove the Russian currency’s viability and independence in world economy.

“Russia, at its present stage of development, should not be dependent on foreign currencies; its internal resources will make its own economy invulnerable to political wheeler dealers,” the action’s organizers said.

The Russian joint-stock bank, AB Rossiya, decided on Friday that it would work only with the national currency to protect its customers from dishonest actions by foreign financial institutions.
~~~~~~~~~~

There's more at the above link.

[Tangri]

Gold and printed money

Where did the money come from in the first place?

Originally money came from miners who dug and refined gold into coins. They traded the coins for food and other goods. The money had intrinsic value, and those that created it were paid for their labour.
Then banks issued receipts for gold held on deposit. The bank acted like a safety deposit box. Writing the receipt itself did not create any new money.
Then counterfeiters learned to forge the receipts.
Then the banks started to lend out some of the gold they had on deposit, perhaps issuing receipts rather than the gold itself. This created the illusion they had more gold on deposit than they really did. This was a species of counterfeiting since it increased the money supply without providing anything of value to back it. This was a bit like a storage locker company that charged you to store you TV, but secretly rented it out, and earned money on that too. When you came to collect you TV, they would stall until they could get the TV back, or give you someone else’s from a pool on reserve for such emergencies. They got away with this because nobody cared if they got their own gold coins back, just gold coins of equal value.
Then governments printed currency as receipts to represent gold they kept in vaults.
Then the governments dispensed with the gold reserves. They just printed money and spent it. This is not considered counterfeiting since the country as a whole benefits from the proceeds of the necessary crime.
Then banks learned an accounting trick of lending out money they did not have and putting it in an account of the borrower where it could be lent out yet again in a sort of Ponzi scheme. They enjoy the proceeeds of the this virtual counterfeiting crime, without doing any work. They have succeeded in bamboozling the public into letting them, in effect, print money.

In Canada, new money comes from two sources:

The Bank of Canada, a crown corporation, owned by the federal government.
The chartered banks, such as the Royal Bank of Canada and the Toronto Dominion Bank.

Both these groups have the legal right to create money out of thin air without doing anyone a favour in return.

You were probably aware the Bank of Canada can just print money or create it by entering a line in a ledger, but you might be surprised to learn the chartered banks can do so as well. This was not always the case. Prior to Prime Minister Mulroney, banks were required to maintain an 8% reserve. This allowed them to lend the same money out 12.5 times. Mulroney dropped the reserve rate to 0%. This means banks can lend out as much money as they please, even if they have nothing to back it. (In the USA, reserves are 3% for current accounts and 0% for savings accounts).

When you consider how serious a crime counterfeiting is, it is rather odd for the government to have effectively handed over the printing plates so that banks can create money too. Unlike the Bank of Canada, the banks don’t literally print money; they create it out of thin air with a ledger entry any time they lend money.

It is a strangely generous act of the federal politicians to the Canadian banks who were Canada’s most prosperous institutions even before this boon.

[sigma6]

Ultimately the real wealth is labour, resources are secondary, and the resources created as a direct product of that labour create a second level of wealth. But the foundation is labour. Why securities are created against people's labour and tied to the Birth Certificate system. Why Judith Hartman, the signatory and Deputy Registrar General of the Birth Certificates in Ontario, stated Birth Certificates were never (and still aren't) intended to be used as identification. They were supposed to be used to settle all liabilities created in the public by all the corporations that created these liabilities (charging NAMES) Since it is recognized and understood that all commerce that was generated by these corporations was the result of the funds that were borrowed from the banks which created those funds from the securities and bonds that were created against actuarial values based on Birth Certificates which are part of the system of records that represent the life energy of living men and women. the certificate is issued as proof of this property being held by the State, to be used as a trust if desired. (only way you are ever going to have a chance to access it)

12 Thus, equity is very much
alive in the modern common law, and the rights of the beneficiary in equity to the
trust property are recognized and continue to be enforced by Canadian courts.
A second significant development in the evolution of uses and trusts was the
adaptation of the concept of equitable (beneficial) interest for much more elaborate
purposes. Originally .the use or trust related only to land All that was required
to create an enforceable right for the beneficiary in equity was that the land be
conveyed unto and to the use of the trustee in fee simple, in trust for the cestui que
trust. The trustee’s role in this situation was straightforward: to hold the fee simple
(legal title) to the land, to turn over the profits to the cestui que trust, to dispose of
the land in accordance with conveyor’s instructions, and to undertake all necessary
proceedings to protect or recover the land.13

When one considers the simplicity of this method of splitting legal title from
beneficial enjoyment of property, it is not surprising that the cestui que trust, or
beneficiary, came to be thought of as the real owner—or, as sometimes stated in
modern terminology, the “beneficial owner”—of the property. However, the right
of the beneficiary in equity was primarily a right against the trustee to enforce the
terms of the trust.14 The transparency of the beneficiary’s right, and the property to
which it led, is obvious in the transfer of land to a trustee in fee simple for the
benefit of an identified beneficiary. It is from this simple structure that the concept
of beneficial owner can most clearly be traced. The cestui que trust was considered
the beneficial owner in equity. The trustee was considered the legal owner at common
law.

Symposium: Beneficial Ownership and the Income Tax Act - CCRA
Catherine Brown
Of the Faculty of Law, The University of Calgary. The full text of the paper is available from
the Department of Justice, Bijuralism and Drafting Support Services Group, Ottawa, Canada.


I just crack up when I read that part about "...when one considers the simplicity of this method of splitting legal title from beneficial enjoyment of property..." LOLOLOL!!! "the simplicity!!!!" LOL... (must be a lawyer joke!)

Man they are giving it away right in the colored, highlighted text, exchange land/property for Birth Certificate and you will begin to have a clue of what is really going on... The most important thing you can do if you live in a Western Commonwealth Country is understand the relationship that you have to that certificate that was issued and delivered to you after you were born... It is critical to your entire life.