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Grandmaster Putin’s Golden Trap. Part 2.2 Why Keynes was wrong about gold

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July 6, 2015

Dmitry Kalinichenko

Source: Cont.ws 

Original published on Investcafe.ru on April 27, 2015

Translated from Russian by Kristina Rus


Click here for Grandmaster Putin’s Golden Trap. Part 1, the second most popular article of all time on Fort Russ

Click here for Grandmaster Putin’s Golden Trap. Part 2.1 The dollar and the world economy

The relation of the supra-market status of the dollar and national sovereignty

If we consider the mechanism of economy and finance as a complex airliner, then finance is the controls of this airliner. A national currency is the main financial instrument of control of the national economy.

In a situation when your national currency is sovereign, that is, equal in its status to all the other global currencies, your capabilities of using this national currency as a tool of control of national economy are unhindered.

If your national currency is in a lower, subordinate dependency of another national currency, then your ability to control the national economy is also in a subordinate dependence. That is, the monetary control capabilities of the national economy of a sovereign state are dependent on the U.S. Fed, as a center of emission of the master currency and subsequently of a higher-ranking tool of financial power.

Financial power exists as a separate independent form of authority, and exerts a critical influence over our lives, regardless of whether we acknowledge that fact or not.

Using the dollar as a supra-market and a master instrument of financial power, the U.S., as a master regulator, has a monopoly control of all the global economies in favor of its own interests. And, accordingly, to the detriment of the interests of other countries.

The dollar-oil tandem and the ensuing global dominance of the petrodollar is the basis of the already established de facto global financial dominance of the U.S..

Periodically changing the value of oil expressed in dollars one way or another the U.S. inhibits the economic development of countries which are net oil importers or net oil exporters one by one.

In relation to the realization of the function of national financial authority and control over a state economy, any parliament, president or even a dictator operates today only as a second pilot. The first pilot in terms of financial power, and hence – the management of the economy of any country today – is the U.S. Federal Reserve. The second pilot is able to control the processes only to the extent which is allowed by the first pilot. Because the controls in the possession of the first pilot have a priority over the controls of the second pilot.

After assigning the U.S. national currency such an exclusive function as the monopoly global gauge of oil and gold value, the economic sovereignty of global countries has turned into an mirage, which only exists in our imagination.

This mirage is veiled like a fig leaf by empty declarations about the alleged real capabilities of world countries to realize their sovereign rights in the area of financial power and control of national economies.

But in reality in which we live any country in the world can use their financial power to control their domestic economy exactly to the extent that it will be allowed by the dollar emission headquarters – the U.S. Fed.

Hence, a disappointing conclusion: today there are no national sovereign economies in any country in the world, except the U.S. and cannot be in principle. 

The absence of national economic sovereignty in a world where the national currency of one country dominates over all the other national currencies means only one thing. Namely: the absence of the institution of state sovereignty as such.

There can be no sovereign countries without a sovereign or partially sovereign economy.

There can be no sovereign country where the value of the national currency is measured and expressed exclusively in the national currency of another country.

What kind of sovereignty can we talk about, if we can’t even determine and, in principle, are denied the opportunity to determine the price of a barrel of our own oil in our own national currency – rubles – without using the U.S. dollar as a measure of the value?!

Since 1971 we live in a world without national sovereignty and sovereign countries. Except for the US, the sovereignty of which is not dependent on other countries, but is completely subordinate to the will of the Fed cartel – a private, supranational emission center. 

On November 22, 1963, the thirty-fifth U.S. President, John F. Kennedy, was killed. From this day on the USA does not own the Fed. On the contrary, the Fed owns the USA, operating as its owner and master. If you compare the US and the Fed pair with a horse and a rider, the rider in this pair, of course, is – the Fed.

The battle that is raging today between the Eastern world and the West, devoured by the U.S., is not simply the attempt of the countries of the Eastern world to abandon the US dollar in mutual settlements.

Actually, it is a battle of the countries of the Eastern world for their sovereignty, for their political freedom and economic independence.

This explains the fact that the battle against the hegemony of the dollar and, as a consequence, against the economic and political dependence on the United States, has acquired a character of a national patriotic idea and the official state ideology in many countries.

Despite all the events which had occurred since 1971, legally no one had abolished gold’s monetary function. This function has not been abolished in 1944, when a dollar backed by gold became the global reserve currency. And especially, it has not been legally abolished in 1971, when the U.S. defaulted on its Bretton Woods obligations of 1944 and refused to further support the dollar with real money – gold.

Today as always the global money is still gold. And currencies are still only the promises of money, quality and reliability of which deteriorate over time, tending to zero.

Gold was and still is money, regardless of what is thought and said by the charlatans and pseudo-scientists, like the founder of the dollar system – John Keynes. 

Having no logical arguments against a centuries-old and still acting monetary function of gold, a charlatan and pseudo-scientist John Keynes created a label for gold: “Gold is a barbaric relic of the past”.

I wonder if Keynes had imagined that even 70 years after his death gold will constitute about 60-70% of the gold and currency reserves of the most developed countries in the world? And did Keynes ever imagine that in the countries with the level of development closest to barbarians, the share of gold in gold and currency reserves  will be equal to 1-2% or zero? The unhealthy obsession with a barbaric relic of the past by the most developed global powers, tirelessly glorifying the pseudoscientific writings of charlatan Keynes seems very strange. Something doesn’t stick here, ladies and gentlemen. Appealing to Keynes, you say one thing and do the other. Prove your words with deeds – give all your gold to the barbarians. And then we can believe that you really believe Keynes. 


Who will believe you, if for many decades, you have been using the empty slogans of Keynes only in order to confiscate gold from underdeveloped countries and accumulate it in the reserves of the IMF, as well as in the reserves of the most developed and the most democratic countries of the world.

Part 2.3 coming soon!

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