Grandmaster Putin’s Golden Trap, by Dmitry Kalinichenko . . . I cannot tell you how important I think this article is! ~J

November 22, 2014

Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.

No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.

Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!

To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the RF coming from the sale of oil and gas over the same period.


Moreover, in the third quarter the purchases by Russia of physical gold are at an all-time high, record levels.  In the third quarter of this year, Russia had purchased an incredible amount of gold in the amount of 55 tons. It’s more than all the central banks of all countries of the world combined (according to official data)!

In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. It was the 15th consecutive quarter of net purchases of gold by Central banks. Of the 93 tonnes of gold purchases by central banks around the world during this period, the staggering volume of purchases – of 55 tons – belongs to Russia.

Not so long ago, British scientists have successfully come to the same conclusion, as was published in the Conclusion of the U.S. Geological survey a few years ago. Namely: Europe will not be able to survive without energy supply from Russia. Translated from English to any other language in the world it means: “The world will not be able to survive if oil and gas from Russia is subtracted from the global balance of energy supply”.

Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin’s game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not.

Since Russia has a constant flow of dollars from the sale of oil and gas, it will be able to convert these dollars to buy gold at current gold prices, depressed by all means by the West. This equates gold price, which had been artificially and meticulously lowered by the Fed and ESF many time…via artificially inflated purchasing power of the dollar through market manipulation.

Interesting fact:  The suppression of gold prices by the special department of US Government – ESF (Exchange Stabilization Fund) – with the aim of stabilizing the dollar has been made into a law in the United States.

In the financial world it is (generally) accepted as a given that gold is anti-dollar…i.e. the gold price runs inverse to value of the dollar.

  • In 1971, US President Richard Nixon closed the ‘gold window’, ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods.
  • In 2014, Russian President Vladimir Putin has reopened the ‘gold window’, without asking Washington’s permission.

Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar …and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West.

Today assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West.

And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With these dollar proceeds Putin immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!

There is another interesting element in Putin’s game. It’s Russian uranium. Every sixth light bulb in the USA depends on its supply, which Russia sells to the US too…for dollars.

Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts (manipulations) of the West.  However,  Putin uses these dollars only to withdraw physical gold from the West in exchange at a price denominated in US dollars, artificially lowered by the same West.

This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail.

The idea of this economic golden trap for the West is probably not authored by Putin himself. Most likely it was the idea of Putin’s Advisor for Economic Affairs – Dr. Sergey Glazyev. Otherwise,  why seemingly not involved in business bureaucrat Glazyev, along with many Russian businessmen, was personally included by Washington on the sanction list?  The idea of an economist,  Dr. Glazyev was brilliantly executed by Putin…but with full endorsement from his Chinese colleague – XI Jinping.

Especially interesting in this context looks the November statement of the first Deputy Chairman of Central Bank of Russia Ksenia Yudaeva, which stressed that the CBR can use the gold from its reserves to pay for imports, if need be. It is obvious that in terms of sanctions by the Western world, this statement is addressed to the BRICS countries, and first of all China. For China, Russia’s willingness to pay for goods with Western gold is very convenient. And here’s why:

China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars. Considering the growing trade deficit between the US and China (the current difference is five times in favor of China), then this statement translated from the financial language reads: “China stops selling their goods for dollars”. The world’s media chose not to notice this grandest in the recent monetary historic event . The issue is not that China literally refuses to sell its goods for US dollars. China, of course, will continue to accept US dollars as an intermediate means of payment for its goods. But, having taken dollars, China will immediately get rid of them and replace with something else in the structure of its gold and currency reserves. Otherwise the statement made by the monetary authorities of China loses its meaning: “We are stopping the increase of our gold and currency reserves, denominated in US dollars.” That is, China will no longer buy United States Treasury bonds for dollars earned from trade with any countries, as they did this before.

Thus, China will replace all the dollars that it will receive for its goods not only from the US but from all over the world with something else not to increase their gold currency reserves, denominated in US dollars. And here is an interesting question: what will China replace all the trade dollars with? What currency or an asset? Analysis of the current monetary policy of China shows that most likely the dollars coming from trade, or a substantial chunk of them, China will quietly replace and de facto is already replacing with Gold.

In this aspect, the solitaire of Russian-Chinese relations is extremely successful for Moscow and Beijing. Russia buys goods from China directly for gold at its current price. While China buys Russian energy resources for gold at its current price. At this Russian-Chinese festival of life there is a place for everything: Chinese goods, Russian energy resources, and gold – as a means of mutual payment. Only the US dollar has no place at this festival of life. And this is not surprising. Because the US dollar is not a Chinese product, nor a Russian energy resource. It is only an intermediate financial instrument of settlement – and an unnecessary intermediary. And it is customary to exclude unnecessary intermediaries from the interaction of two independent business partners.

It should be noted separately that the global market for physical gold is extremely small relative to the world market for physical oil supplies. And especially the world market for physical gold is microscopic compared to the entirety of world markets for physical delivery of oil, gas, uranium and goods.

Emphasis on the phrase “physical gold” is made because in exchange for its physical, not ‘paper’ energy resources, Russia is now withdrawing gold from the West, but only in its physical, not paper form.  China accomplishes this by acquiring from the West the artificially devalued physical gold as a payment for physical delivery of real products to the West.

The West hopes that Russia and China will accept as payment for their energy resources and goods…the “shitcoin” or so-called “paper gold” of various kinds also did not materialize. Russia and China are only interested in real gold and only the physical metal as a final means of payment.

For reference: the turnover of the market of paper gold, only of gold futures, is estimated at $360 billion per month. But physical delivery of gold is only for $280 million a month. This equates to a ratio of trade of paper gold versus physical gold to 1000 to 1.

Using the mechanism of active withdrawal from the market of one artificially lowered by the West financial asset (gold) in exchange for another artificially inflated by the West financial asset (USD), Putin has thereby started the countdown to the end of the world hegemony of petrodollar. Thus, Putin has put the West in a deadlock of the absence of any positive economic prospects.

The West can spend as much of its efforts and resources to artificially increase the purchasing power of the dollar, lower oil prices and artificially lower the purchasing power of gold. The problem of the West is that the stocks of physical gold in possession of the West are not unlimited. Therefore, the more the West devalues oil and gold against the US dollar, the faster it loses devaluing Gold from its not infinite reserves.

In this brilliantly played by Putin economic combination,  physical gold from the reserves of the West is rapidly flowing to Russia, China, Brazil, Kazakhstan and India (i.e. the BRICS countries).   At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin’s Russia until the collapse of the entire Western petrodollar world. In chess the situation in which Putin has put the West, led by the US, is called “time trouble”.

The Western world has never faced such economic events and phenomena that are happening right now.  The former USSR rapidly sold gold during the fall of oil prices.  Today, Russia rapidly buys gold during the fall in oil prices. Thus, Russia poses a real threat to the American model of petrodollar world domination.

The main principle of world petrodollar model is allowing Western countries led by the United States to live at the expense of the labor and resources of other countries…based on the role of the US currency, dominant in the global monetary system (GMS) . The role of the US dollar in the GMS is that it is the ultimate means of payment. This means that the national currency of the United States in the structure of the GMS is the ultimate asset accumulator, to exchange which to any other asset does not make sense.

Led by Russia and China,  what the BRICS are doing now is actually changing the role and status of the US dollar in the global monetary system. From the ultimate means of payment and asset accumulation, the national currency of the USA, by the joint actions of Moscow and Beijing is turned into only an intermediate means of payment.  Intended only to exchange this interim payment for another and the ultimate financial asset – gold. Thus, the US dollar actually loses its role as the ultimate means of payment and asset accumulation, yielding both of those roles to another recognized, denationalized and depoliticized monetary asset – GOLD!

Traditionally, the West has used two methods to eliminate the threat to the hegemony of petrodollar model in the world and the consequent excessive privileges for the West:

One of these methods – colored revolutions. The second method, which is usually applied by the West, if the first fails – military aggression and bombing.

But in Russia’s case both of these methods are either impossible or unacceptable for the West.

Because, firstly, the population of Russia, unlike people in many other countries, does not wish to exchange their freedom and the future of their children for Western kielbasa (meat sausage). This is evident from the record ratings of Putin, regularly published by the leading Western rating agencies. Personal friendship of Washington protégé Navalny with Senator McCain played for him and Washington a very negative role. Having learned this fact from the media, 98% of the Russian population now perceive Navalny only as a vassal of Washington and a traitor to Russia’s national interests. Therefore Western professionals, who have not yet lost their mind, cannot dream about any color revolution in Russia.

As for the second traditional Western way of direct military aggression, Russia is certainly not Yugoslavia, not Iraq nor Libya. In any non-nuclear military operation against Russia, in the territory of Russia, the West led by the US is doomed to defeat. And the generals in the Pentagon exercising real leadership of NATO forces are aware of this. Similarly hopeless is a nuclear war against Russia, including the concept of so-called “preventive disarming nuclear strike”.  NATO is simply not technically able to strike a blow that would completely disarm the nuclear potential of Russia in all its many manifestations. A massive nuclear retaliatory strike on the enemy or a pool of enemies would be inevitable. And its total capacity will be enough for survivors to envy the dead. That is, an exchange of nuclear strikes with a country like Russia is not a solution to the looming problem of the collapse of a petrodollar world. It is in the best case, a final chord and the last point in the history of its existence. In the worst case – a nuclear winter and the demise of all life on the planet, except for the bacteria mutated from radiation.

The Western economic establishment can see and understand the essence of the situation. Leading Western economists are certainly aware of the severity of the predicament and hopelessness of the situation the Western world finds itself in, in Putin’s economic gold trap. After all, since the Bretton Woods agreements, we all know the Golden rule: “Who has more gold sets the rules.” But everyone in the West is silent about it. Silent because no one knows now how to get out of this situation.

If you explain to the Western public all the details of the looming economic disaster, the public will ask the supporters of a petrodollar world the most horrific questions, which will sound like this:

How long will the West be able to buy oil and gas from Russia in exchange for physical gold?
-And what will happen to the US petrodollar after the West runs out of physical gold to pay for Russian oil, gas and uranium, as well as to pay for Chinese goods?

No one in the west today can answer these seemingly simple questions.

And this is called “Checkmate”, ladies and gentlemen. The game is over.


The above article was translated buy Kristina Rus – which originally appeared in Russian  at

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9 Responses to Grandmaster Putin’s Golden Trap, by Dmitry Kalinichenko . . . I cannot tell you how important I think this article is! ~J

  1. Pingback: Distortions, lies and omissions: The New York Times won’t tell you the real story behind Ukraine, Russian economic collapse | 2012: What's the 'real' truth?

  2. Ian MacLeod says:

    Putin IS a Grandmaster at chess, and our “leaders” – those left – aren’t even close. The rest of the world has known what America has been – it’s just we Americans who had no clue.
    “no one knows now how to get out of this situation”

    Of COURSE we do! e declare openseason the “elites”, bring them in, try them, take BACK the gold they’ve stolen, take back the DUMBS they built to shelter themselves and use them for housing, factories and so on until we can rebuild after the “elite” destruction of the industrial base, the economy, education, medicine… and everything else. We have the opportunity to rebuild from the ground up here! As long as we allow liars, thieves, murderers and other criminas to run the show, we’re screwed. Either we make the effort, or we’re probably all dead in fairly short order. Get rid of the psychopaths FIRST. Then make some plans for a REAL recovery, not the usual paper one!

    Considering the inhuman evil the “elites” have caused the rest of the world USING us as their hammer, “elite” hides ought to go for a pretty penny… We need all the help – REAL help – we can get!

  3. Pingback: Jean Haines – Grandmaster Putin’s Golden Trap, By Dmitry Kalinichenko ( . . . I cannot tell you how important I think this article is! ~J) – 2 January 2015 | Lucas 2012 Infos

  4. Reblogged this on Spartan of Truth and commented:
    Good overview. After the King is tipped though, the world still needs to address the Bankers and fractional reserve banking. Abolishing the real slavery system still needs to be the People’s end game!

    • Ian MacLeod says:

      I would think that simply refusing to permit the fraudulent “fractional banking” practices of the so-called “elites” (NOTE: I always use quotes for “elites” because using that word is like an “elite” leprosy germ” – it’s a blasted DISEASE, like the supposed ‘people’ we’re talking about here) would be a major stumbling block for them. Then confiscation of all assets from any all venues containing them would further cripple further efforts to cause harm. Every milligram of gold the “elites” possess is STOLEN by means of one scam or another, including fractional banking. They get gold, while we get paper with no intrinsic value. A demand for immediate repayment in kind for all the gold they’ve illegally wandered off with, like when they EMPTIED Ft. Knox, would ruin them. Uncovering of their operatives, removal of any official power from agencies supposedly within governments that are actually entirely agents of the “elites” and arrests of field operatives, at least long enough to learn about assassinations of “inconvenient people” like whistleblowers who were acting within the Constitution and against illegal laws, regulation, Executive Orders or “Shadow Government” orders (I recall NO authorization for a Shadow Government in the Constitution, so it’s an illegal/extra-legal entity that supposedly supersedes our OWN, Constitutional government, which has been done away with, leaving a false, counterfeit corporate imposture of it so that we THINK it still exists, but leaves We the People with no power over it).

      Remove ALL actual legal and counterfeit legality from them and their counterfeit entities (such as the “UNITED STATES GOVERNMENT, INC.”), and they are shown to have NO legal legs to stand on! THEN perhaps our military and any in Intel who are still honest and patriotic, but who have never realized the true situation: that they have been working FOR the lying, murdering thieves and would-be destroyers of America and ALL liberty or personal rights – and I’d bet we’d a lot more help in this fight! We’ve been relegated to a disposable, dumbed-down, useless overage of surplus population, which is why they’ve been busily killing us off. ALL human beings should have the right to live their lives as they choose, without such creatures clandestinely poisoning them to gain everything that WOULD HAVE gone to their support, and just so the rich and powerful can become MORE rich and powerful! They have been stealing the assets which, properly husbanded, could have gone to very comfortable support of seven BILLION people and more – assets that these super-rich (but FALSELY rich) creatures couldn’t use in a THOUSAND lifetimes, and just so they can lay claim to it.

      Every death in every war America has fought can be laid at THEIR doorsteps. Go look at the green field of Arlington Cemetery and think about that. I have family there, and elsewhere who COULD have been buried there, and in that we are all related one way or another, we ALL have family there – physical, spiritual, ideological – it’s still family, of our race if in no other way. We are the same creature no matter WHAT the supposed “elites” want us to believe. Without the brainwashing of the “elites” the vast majority of us tend to help each other. The “elites” believe themselves to be other than human; I tend to agree. They have for centuries at LEAST, and perhaps for millennia, been the snakes in our Garden. My close family are all old country folk; we’ve always known what to do about snakes.

      • Thanks for taking the time to write that out, I agree with you on all counts and thoughts.

        “They” will ultimately lose control. The question is, when will it go down? The momentum is building in this awakening that humanity is now experiencing. Soon, there will be a reckoning for our “elites”, my question is, how will humanity respond?

        Thanks for reading here.

      • Kayla says:

        RE: gold…i’d include the gold from beneath the World Trade Center on 9/11…by you know who…that was, evidently transferred to Patagonia by rail.

      • Alkali says:

        To just drop this brood of thugs will not be enough. As they always have, they will come back through the window when the door is closed to them.
        Here in France, we have experienced many times their capacity to harm throughout history.
        1989 and 1991 … they soon returned and we had Napoleon.
        1871 and the “Paris Commune” … 20,000 dead and they have resettled again.
        It’s like the brambles, if we cut it, it will push harder.
        It’s like the Hydra … when we cut her a head, it pushes once.
        We must implement a public education that privileged critical thinking, philosophy and knowledge of social and political mechanisms in the best sense of the word.
        We must have institutions that prevent misappropriation of our human values. That we can’t be fooled again.

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