
While the fireworks have been distracting, there is a lot happening behind the scenes in the political sphere. Heroic Ukrainian puppet president Volodymr Zelensky has continued his characteristic policy of veering from "not one step back" fighting to the last man, to virtually capitulating to Russia's demands. I have not bothered to report anything he has said as it would be pointless. The man is an actor. He stands in front of the green-screen and says whatever the director demands. Sometimes, through his coke fueled despair, he almost admits the truth, but what is that worth? Nothing really. It was interesting to note that in the first few days of the war US Secretary of State, Anthony Blinken, stated that the US has a contingency plan in the event Zelensky was assassinated. At the time Zelensky was already in Poland, safe from Russian bombs. He must have felt very reassured. With friends like these....

Former US Ambassador to Russia, Michael McFaul, demonstrated the kind of strategic thinking that has led the United States to this nadir. It is this kind of delusional nonsense that passes for strategy among the US and western elite. They may believe that they represent humanity's best and brightest, but they are little more than low grade morons. Honestly. Do you really think the Russians' are so stupid to go on supplying gas and resources to countries that refuse to pay? Really? I mean, you're stating it publicly, on Twitter (was there ever a more apt name for a social network?). Russian's can read too you know.

Not that McFaul's nonsense had anything at all to do with it, but.....Russia last night made one of the most significant geopolitical announcements of this era. From now on, all Russian gas exports must be paid for in ruble. https://stolzuntermenschen.blogspot.com/2022/03/vladimir-putins-executive-order.html
“Both the US and the EU have basically defaulted on their obligations to Russia. And now everyone in the world knows that obligations in dollars and euros may not be fulfilled. ... It is quite obvious that in this regard, it makes no sense for us to supply our goods to both the EU and the USA and receive payment in dollars, euros and a number of other currencies. Therefore, I have decided to implement in the shortest possible time a set of measures to transfer payments for our natural gas supplied to unfriendly countries to Russian rubles,”, President Vladmir Putin announced.https://www.moonofalabama.org/2022/03/more-sanctions-on-russia-will-destroy-europe.html#more
Other strategic exports are bound to follow. I had expected a move like this from the beginning of the crisis, anticipating that Russia may have even begun demanding payment in gold. Payment in gold however would have quickly bankrupted several western economies, who have long sold off their own gold reserves or placed them in the hands of 'honest brokers' like the Bank of England or the Federal Reserve. Australia's own gold reserve was shipped to Bank of England decades ago and has never been satisfactorily audited since. The Reserve Bank of Australia refuses to release any details of the 2013 audit because it “would, or could be reasonably expected to, cause damage to the relationship between the RBA and the BoE.” So, nothing to see there. RBA denies any intention to conduct a proper physical audit of Australia's gold reserves as it is satisfied with the assurances that the gold is still there. A scandal to cover in another post. https://www.bullionstar.com/blogs/ronan-manly/australias-gold-at-the-bank-of-england-rt-com/ A scramble for gold would result in a sharp uplift in the gold price, destroying the value of western fiat currencies (as predicted by anyone with a modicum of economic understanding, ie, not economists).
Requiring payment in ruble will cause Europe some degree of pain, given that exchanges have been sanctioned, but is not impossible, and the external demand for ruble will help supress inflation within Russia. All previous attempts to break the US dollar stranglehold on internation trade have met with a sharp US military response. The Iraq War of 2003 was sparked by Saddam Hussein move to sell Iraqi oil in Euros. The Libyan invasion was also prompted by Muamar Ghaddafi's move to sell oil in Euros and his attempt to float the idea of gold backed Dinar. Neither of those countries were capable of resisting US military might, but Russia and China can. Both have been trading in their domestic currencies for some time, demonstating that it is possible. More countries around the world are moving in this direction. Iran is onboard. Saudi Arabia is in discussions. Moving international trade outside the US dollar zone offers tangible benefits that are self evident now that the US is exposed as a paper tiger (note - the US remains a powerful nuclear armed state so the risk of military intervention remains very real. Countries that intend to trade with Russia and China in local currencies directly would be well advised to formalise some form of treaties or mutual defence agreements with those countries in order to protect them against the US attempting to make an example of them).
In light of the seizure of Russia's US$300 billion foreign currency reserves in the US, Russia has declared the US Federal Reserve to be in default of its obligations. In addition, France announced the seizure of Russia's European reserves of 22 billion Euro. This opens the door for Russia to nationalize US and European businesses operating within Russia as compensation. Impacted businesses would be directed back to the Fed or the European Central Bank to sort out the matter. This is a particulary dangerous situation for several major French concerns who have been encouraged to continue doing business in Russia as pulling out of the important Russian market would have been financially catastrophic. They will not be happy if the actions of their government throws them under the bus. Parry and thrust. For every action there is an equal and oppostite reaction. To quote the ever succinct Russian foreign minister, Serge Lavrov, “Russia will not put forward initiatives to improve relations with the west. Let’s see how they themselves get out of the impasse into which they have driven themselves.” https://sputniknews.com/20220323/wests-move-to-freeze-russian-reserves-signals-its-defaulting-on-obligations-before-moscow-putin-1094117649.html
The tone deaf and senile Biden regime continues to insult and offend China with its demands that the Chinese concede to US sanctions on Russia. China never responds well to threats and the result of the Biden - Xi virtual conference was the Chinese further reinforcing their public commitment to their security partner. The Chinese also added a barb to their statement by noting that the US has so far failed to fulfil any of the commitments it made during the last round of negotiations with China. "Not Agreement Capable." The idiotic grandstanding and talking down to 'orientals' (and basically everyone) only accelerates the disintergration of the US as a world power.

People worry about the New World Order our western leaders seem so determined to force upon us, but just have a look at these people. They are universally idiots and narcicists. They cannot plan or implement anything. Their grand designs are simply the fantasies of imbeciles and revanchist dreams of former Nazis. The only thing they have over us is the threat of violence. But the truth remains that there are more of 'us' than there are of 'them.' Eventually, when this crisis comes to a head and our 'rulers' announce a suspension of our natural, legal rights, seizure of our land and property, 'for the greater good', do you really think we the people will simply say "Okay"? No, there will be torches. There will be pitchforks. And there will be heads on spikes.
News from the Battlefront
DPR forces announce that they have now cleared 75% of Mariupol. While the Azov battalions have pledged (and been pledged) to keep fighting to the last, the numbers of active fighters has been notably declining as soldiers drop their uniforms and attempt to slip out with the evacuating civilians. Where pockets of Azov resistance remains, they put up a fierce fight as they know what awaits them. There have been many instances of Azov fighters leaving stay behind snipers as they retreat to shoot down civilians fleeing the fighting. Russian and DPR forces have given a last ultimatum to the remaining Azov fighters to surrender by midnight tonight (local time). No prisoners will be taken from tomorrow

In the areas east of the contact line pocket (former LDPR front-line), fighting continues as the Russians work on the fortified Ukrainian lines with heavy MRLS and hypersonics. During the past eight years of the conflict, the Ukrainians have built networks of concrete bunkers, trenches and ammunition stores. The troops there were offered the opportunity to leave. They didn't, so....
Around Nikolaev, the Russians continue smashing the Ukrainian positions with Calibers. There is no sense wasting manpower. The nut will crack.
The long promised assault on Odessa still has not arrived, but the Russians have begun striking military stongpoints outside the city with sea launched missiles.

In the port of Berdyansk, one of the Russian supply ships unloading munitions and stores caught fire and exploded at the dockside. Nearby ships managed to pull away from the dock.
The condition of the supply ship, either the "Saratov" or the "Orsk", is unknown. These two supply ships were built in the 1960s and have been very active in recent years on the supply run from Sevastopol to Tartus, in Syrian.
Update 25th March 2022 - the ship was the Saratov. It has been stated that the dock was hit by a Toscha-U ballistic missile. The Toscha-U was intercepted by Russian anti-missile missile but the falling components set fire to the ammunition and stores on the dockside. The fire spread to the Saratov, which was subsequently scuttled where she was tied up to prevent the fire spreading further and risking an enormous explosion.
Apparently gold will be accepted as payment at its current rate of exchange for Russian energy, according to remarks by the Head of the Russian Parliament, Pavel Zavalny.
ReplyDelete"Much more interesting was Zavalny’s main point, even though it has been mostly overlooked. If other countries want to buy oil, gas, other resources or anything else from Russia, he said, “let them pay either in hard currency, and this is gold for us, or pay as it is convenient for us, this is the national currency.”
In other words, Russia is happy to accept your national currency — yuan, lira, ringgits or whatever — or rubles, or “hard currency,” and for them that no longer means U.S. dollars, it means gold."
https://www.marketwatch.com/story/russia-just-made-a-case-for-owning-goldand-nobody-noticed-11648415950?mod=mw_quote_news
Your point that such purchases might quickly exhaust some countries' reserves is a valid one - that, however, is their problem. It would make much more sense to buy rubles while the exchange rate is so favourable; a state of affairs I will make so bold as to suggest will not last.
Mark