Russia And U.S. Economic War Raging

77
Russia And U.S. Economic War Raging
WikiImages / Pixabay

As tensions between Russia and the United States expand, it is increasingly clear that an economic war is being waged between the two superpowers. This is certainly not the first time that the United States and Russia have been on opposite sides of such a conflict, with the Cold War essentially being defined by two completely separate economic systems.

Russia and U.S. energy battle

The economic battle that is currently taking shape will have global ramifications for many years to come. Energy is certainly playing a major role in this economic battle, with Moscow seeking to counteract the desire of Washington and Brussels to divide Russia from Europe. The Russian government unquestionably has massive power owing to the amount of energy exportation that it is involved in, and a lack of cooperation in this regard would certainly be damaging to numerous Western companies and countries alike.

Q2 2022 Hedge Fund Letters Database Now Live!

Hedge funds HFMQ2 2022 hedge fund letters database is now up. See what stocks top hedge funds are selling, what they are buying, what positions they are hiring for, what their investment process is, their returns and much more! This page is updated frequently, VERY FREQUENTLY, daily, or sometimes multiple times a day. As we get new Read More

European nations in particular are hugely reliant on Russian oil and gas in order to function. Ironically, the United States’ major ally the United Kingdom derives most of its oil importations from Norway. But mainland Europe is particularly dependent on Russian exports, and it would become extremely vulnerable should the Russian government decide to alter its energy policy.

Additionally, a huge amount of economic and energy machinations are taking place under the surface. While the Western media has tended to focus on conflict in the Ukraine, Moscow has been assiduously moving its pieces into place under the radar. The Russian energy giant Gazprom has entered into critical deals with a variety of Western energy companies, which has completely undermined the efforts of Western governments to isolate Russian economically.

Russia energy deals multiply

Gazprom has clearly been making a concerted effort in recent years to be more visible in the Western marketplace. European fans of soccer in particular will recognize the brand, as it is a prominent sponsor of the Champions League tournament.

At the same time that Russian companies are establishing these important links, Russian-sponsored gas pipelines in the North and South of Europe significantly complicate the geopolitical picture. These important economic assets ensure that it is extremely difficult to alienate and isolate Russia from the existing European marketplace, and it provides the Russian government with a huge amount of political and economic power.

The tension between the United States and Russia is emblematic of a wider geopolitical chess game between the BRICS nations and the traditional Anglo-American world order which has dominated the planet over several decades. The BRICS have demanded a greater representation in global economic institutions such as the World Bank and International Monetary Fund, and have even threatened to set up their own central bank as a response to US and British isolationism.

Another aspect to this economic war is the dollar’s status as world reserve currency. This has provided the United States economy with a huge advantage throughout the 20th century, but there have been suggestions in some quarters that this may end at some point. And these suggestions have not been limited to pundits. The current head of the International Monetary Fund, Christine Lagarde, has in fact stated explicitly that the United States’ “exorbitant privilege” would come to an end in the foreseeable future.

Russia accumulates gold rabidly

Perhaps anticipating this eventuality, there has been significant evidence that both Russia and China are preparing for a future in which the dollar is no longer the reserve currency. The BRICS nations have been rampantly investing in gold in particular. This perhaps goes against the economic consensus among Western economists, but it anticipates a time when the mountain of debt in the West has unravelled. At a time when many fiat currencies are incredibly vulnerable and devaluing, the Swiss franc became pegged to the Euro in April, 2011, ending what HSBC described as “the last safe haven”.

The suggestion is that Russia is hoping to introduce gold-backed reserve currency into the world economic mechanism, and that the opportunity to do this could come as the dollar loses its existing status and encounters trading difficulties. And this has not merely been a suggestion, but also something grounded in explicit statements.

In March, 2009, the UK newspaper The Daily Telegraph reported on Arkady Dvorkevich, the Russian Kremlin’s chief economic adviser, commenting that Russia would like to see a return to a gold-backed currency. The Telegraph noted that “the world’s fiat paper currencies have lacked any external anchor ever since (Nixon abandoned the gold standard). It is widely argued that the financial excesses and extreme debt leverage of the last quarter century would have been impossible – or less likely – under the discipline of gold”.

Vast Russian infrastructure projects

Regardless of the legitimacy of this particular plan, Russia is clearly waging a very significant energy war at present. A recent agreement between Gazprom, which is now the top gas producer in the world, and Royal Dutch Shell, to build two new gas pipelines to Germany will come to define the economic relationship between Russia and the European Union in the medium-term. Effectively, Russia has become a central cog in the German economy, and critical to Germany’s industrial base.

It is also obvious that such an economic agreement will have a significant global impact. There is already an existing project related to oil and gas development in Sakhalin Island, Russia, that is essentially a Gazprom and Shell collaboration. This project only reached its full capacity last year, and the strong economic position of Gazprom, coupled with the important economic agreement it has entered into, will allow for the expansion of this arrangement.

As Russia moves to establish an energy position of significant strength, the imminent construction of the Altai Pipeline will solidify Russian and Chinese energy cooperation. The project has ultimately been described as a full-blown energy alliance, and it will supply in the region of 35 billion m³ of Russian gas from Western Siberia to China.

The United States and its economic entities have been accused of deliberately driving down the oil and gold price in order to harm Russia and China. But this has resulted in a covert economic assault from Russia, the consequences of which will continue to unfold as this conflict inevitably expands both publicly, rhetorically and strategically.

Updated on

No posts to display

77 COMMENTS

  1. Do you have any idea what that has to do with anything? No one else does. Your posts don’t make any sense. What does a Chinese default, WW1, WW2, and the Japanese have to do with the fact that we are hopelessly in debt, and soon to be financially screwed?

  2. read before giving opinions,China was doing very bad during ww1 and ww2 when they were invaded by Japan,between Arms Loans and American investors Loans the credit was too high for chinese to pay and keep their country a float,they managed to pay Britain because they threatened to cut all economic and diplomatic relations,so China defaulted on the US,But not the british,; do your homework.

  3. Russia’s energy position is in peril. US and other western gas exports are quickly supplanting Russian supplies for the simply reason that no one trusts the Russians not to use it as a political weapon. Yeah they can then turn around and sell those supplies to China outside the Swift system but with China’s stock market in such a free fall that not even threatening to arrest short sellers does nothing to stem the tide, Putin is no doubt having second thoughts about taking payment in Yuan. He does not dare getting involved in an overt war in Ukraine or attacking any of the Baltics because the first thing to happen would be that any and all US and NATO country issued bonds he holds would instantly be declared null and void. As for China they are far more dependent on their exports to the US the we are. Would we be somewhat economically displaced by no more cheap smart phone, tablets, computers and Happy Meal toys? Sure but we have the technological know how to make them for ourselves. We would have to create US Notes for internal use only, suspend the EPA and re-industrialize. Done properly it would take about 2 years. China however would have a far greater problem with the social turmoil created by sudden and massive unemployment. They’ve rehypothicated their material stockpiles a dozen times over. Their even more desperate than Russia or even the US FED for that matter.

  4. You are making unwarranted assumptions. China still has a growth rate of about 7.5% and is in little danger of a major depression. The current problem with the stock market is just a normal correction in an overheated market. Even if they have a temporary setback the fundamentals of the country are better than ours. They have huge untapped markets and plenty of room to grow.
    We are safe now, and tomorrow, but in the long run the Yuan is going to match the dollar.

  5. The Chinese regime is not gonna last long it’s about to fall the people are currently questioning Xi Jinping’s authoritarian rule, it means that if you ever were dumb enough to buy Chinese yuan, you may end up losing everything because when CCP is gone, so does the Chinese yuan which belongs to the Communist Party. If you did that move, you better sell it as soon as possible, the people in China are very pissed at the failure of Xi Jinping and the STock Market crashing, so you are about to lose your investment.

  6. Just a warning if you ever bought Chinese yuan, perhaps it’s going to be time to sell it, because the Chinese regime is not gonna last long, the people are gonna overthrow the regime. Off course, the Chinese yuan will soon cease to exist and you will have lost everything, at least it is still time to get back part of what you paid for your stupid move. http://www.theglobeandmail.com

  7. Just a warning if you ever bought Chinese yuan, perhaps it’s going to be time to sell it, because the Chinese regime is not gonna last long, the people are gonna overthrow the regime. Off course, the Chinese yuan will soon cease to exist and you will have lost everything, at least it is still time to get back part of what you paid for your stupid move. http://www.theglobeandmail.com/news/world/chinas-market-crash-signals-crisis-of-faith-in-authoritarian-system/article25408744/

  8. Russia’s currency doesn’t worth anymore and since China is goingto depression the Chinese yuan will soon follow, now it is just going down again and again.
    So if you own it, you might want to sell it, the Chinse regime is about to get toppled off by their people, so the Chinese yuan will be History very soon.

  9. No, the factories are gonna move to India. Off course, they are going to pull of China.
    China sucks… what a bad idea to go there in the first place…

  10. Yeah that’s true, but China and Russia aren’t real contenders, they are too corrupted and noone can trust them, that’s a hard realty.
    US currency is there to stay, it’s a question of confidence.
    Chinese government is currently fraudulously disposing of the investments of the Shanghai Stock Index shareholders which in USA would be deem as fraud.

  11. The problem is that the Chinese yuan will never be able to replace US currency.
    The problem is that noone can trust the Chinese regime, their whole financial Market is absolutely rigged.
    USA is not perfect but it has way more transparency, the people who were dumb enough to buy Chinese yuan are about to lose almost everything or sell it at fast as possible and go back to the US dollar, off course they will shut their mouth because they have an overexagerated ego and cannot admit defeat.

  12. Do you guys want to know why Chinese yuan have absolutely no chance to replace the US dollar as the main currency and that everyone who were dumb enough to buy it will lose everything?
    It’s perhaps because almost nobody can trust the Chinese government, that includes most of the Chinese people in China.

    Since a currency worth is based on trust, how do you want people to buy it when the whole financial Market in China is rigged?
    The United States of America is not perfect, but it’s way more transparent than China. This is so obvous, Chinese regime shouldn’t even try, it just gonna end up like Shanghai Stock Index ‘correction’ disaster. That would be dumb money.

  13. You know the problem with the Chinese yuan.
    It’s not that people all love the United States of America, it’s because noone can trust the crooks in the Chinese Communist Party who is gonna scam everyone who dares to invest in that shitty country. Wonder why not many people buy Chinese yuan?
    They way the Chinese regime uniliateraly disposed of the shares owned by the investors in the Shanghai STock Market without any valid motive is called a Fraud in the West and they wont be able to touch it for 6 months. So forget about trades in China, noone will ever trust the Chinese Communist Party again, especially in investing or buying their worthless. Those are the shares owned by mostly Chinese retailers, since they have no access to it, they will run out of liquitidy soon enough and they will have to close their business. This will off course in 6 months maximum cause a gigantic buble that will destroy the rest of your Shanghai Stock Market which almost nobody will willingly buy the shares unless the Chinese government points a gun at them…At that point the Chinese Economy is finished because your crappy Econmoy is going down the toilet faster than you can say: jia you gong chan dang. Have a nice day enjoy the fall :) You suck.

  14. Morale of the story, Russian there is other sources of revenue than oil and for Chinese don’t play with the STock Market if you are too dumb to use it.

  15. Problem is that the Chinese Yuan really don’t seem good enough to replace US currency because Chinese Economy is going right down the toilet and the Chinese regime are crooks.
    Sorry, but it is safe to assume that US dollar is there to stay for a while. Chinese yuan is gonna be worth almost nothing when the Depression will hit the People’s Republic of China.
    Shouldn’t let Patriotic kids play with the Stock Market, that’s stupid.

  16. The autor is a bit late, the war against Russia is finished, now USA is attacking China.
    And strangely USA is having even more success, Chinese people also helping a lot too. Their regime is finished.

  17. Off course the war is over, now China is also taking a hit and it’s gonna be worse than Russia, it’s a setback from 2008

  18. Fair comment. I agree that the US should not take its status for granted. Some outfit- BIS? has just warned the US of a liquidity crunch if all those bond holders decide they want cash

  19. Both statements are true. The Chinese claim to have affirmation from the IMF that the Yuan will be recognized as a reserve currency before the end of the year. Sales contracts between China and Russia are currently written in Yuan or Rubles. China has set up currency exchanges in most major markets making it easy for businesses to deal in Yuan. India, Brazil, China and other South American companies have now written contracts bypassing the dollar.
    The process is well underway. It’s just not possible to pin down when it will happen. Not today, but someday.
    The dollar got a reprieve when oil prices dropped and may get another one if the Chinese stock market goes in the tank. Those events have hurt the BRICS finances and limited their ability to push their currencies. Both events are, however, temporary.
    Unless a miracle happens, the ballooning American deficit, the expense of dominating the world, and the effects of our socialist leaders will sink us sooner or later. Pick your own time frame, but I’m betting on a single decade.

  20. I ‘m not bashing Russia I’m bashing Putin. Or do you accept Putin’s propaganda: L’est etat c’est moi

    I see you agree that the $US in not in danger of being replaced as a reserve currency- ‘not today but someday.’
    Wow- your earlier post said the process was well underway.

  21. Of course, no one has ever said they were stupid. For the next several years the US will maintain its ownership of the world’s reserve currency – but that will end eventually as China and the BRICS undercut the dollar. Not today, but someday.

  22. Do often lose your train of thought? I know you are desperate to bash Russia, but not one thing you posted here has anything to do with today’s world, the real world, or anything anyone is talking about here. You might someday remember that Russia and Germany are not the same country. Should I send you a map to make that clear?

  23. Re: approval ratings. What do you think Hitler’s popularity was when the German Army tried to assassinate him in July 1944?
    Of course with the general public it was very high. It was the inner circle who knew Germany was doomed.
    One kind of funny story about the total brain washing of the German people. It’s from Albert Speer’s “Inside The Third Reich” written during his 20 year bit at Spandau.
    A few days from the end, he says good bye to Hitler in a passage that is sort of moving; when Hitler says he would execute Speer if ‘you weren’t my personal architect’ Speer asks to be treated like anyone else.
    Then like everyone else Speer gets out of town. Many hours later he arrives on a bicycle at a farm.
    The elderly owners wonder what the Reich Minister Of Armaments is doing on a bike in their front yard. He explains the war is lost, Berlin has fallen.
    “NO, no” they inform the minister. “The Fuhrer has new weapons he will soon unleash!”

    You can’t make up this stuff.

  24. Just in July 9 -the Bank of Russia is buying $US 200 million a day to boost their reserves. The plan is to get the reserves up to 500 billion US but I wonder if they will get there.
    The point is: they’ve chosen the $US as the choice for the bulk of their reserve.

  25. And you make this assumption how??? I think Russia would receive a very nasty surprise.

    Let’s just hope that nukes are never used, as the whole world would lose in such an event.

  26. I don’t live in the US- Russians can’t sell a consumer product anywhere. True consumer products are different, they are something the individual has chosen to buy, not some military procurer.

    As for having free speech both Obama (and Bush) have all kinds of critics who lo! weren’t assassinated.
    As for not having to love homosexuals I think I’ll let that commnent speak for itself

  27. You seem to be hung up on consumer products. It is possible to have a healthy economy and not sell a single car, television, can opener, or condom to consumers in the US, but the concept seems to be beyond your understanding.
    I don’t think that the Russians will get rid of Putin anytime soon. He has an 85% approval rating and even with the current inflation, Russian paychecks are still nearly three times what they were when Putin took office. The don’t see themselves suffering as much as Americans. After all, they still have free speech and aren’t required to love homosexuals.

  28. Knicknacks? You mean like a car- we have French cars, German cars, Korean cars ( I am not of course talking about the regime of the Maximum Leader) etc. etc.
    Russia doesn’t make a single consumer product that can sold in the developed world.
    Yes the last 15 years were good, but now the raw materials and energy markets have crashed.
    By the way read the sentence where I mentioned Fitch- they are the ONLY rater not to have Russia debt at junk- so go easy on them.
    But there is good news for you anyway- you have one heck of a buying opportunity-and a chance to make me, and all those guys who rate debt to pay their debts, to look very short sighted.
    In a way I hope so, because unless they can do something about Putin, the brave Russian people are in for a lot of hardship.

  29. If you ever have to invest money, I hope you use a rating agency that is less biased than Fitch. They wouldn’t dare do anything to buck our sanctions bull.
    You forget that credit ratings are only important to broken down debtors like us who have to borrow money every day to get by. Russia pays cash, puts money in the bank, and couldn’t care less what you think their credit rating is. They don’t have to borrow money.
    Russia didn’t inherit all the money we did from our grandfathers, but they are doing better every year while we are coasting along spending our inheritance and getting poorer. In the last 15 years, the real income of Russians has tripled and since 2006 the GDP of Russia has risen 500%. We should do so well.

    I doubt that you have ever seen a Russian product in the stores because Russia is in the materials and energy business and their customers are closer to home. They don’t make knickknacks for the American market. However, the odds are 50-50 that the catalytic converter in your car was made with Palladium from Russia and that last plane you were in was probably made with Russian titanium.

    They have a guaranteed income for decades to come from existing contracts for energy and materials and are in no danger of going bust.
    We, on the other hand, can’t balance a budget and we have a LOT of enemies intent on killing the dollar.

  30. I guess we’ll see won’t we. Fitch was the only ratings agency not to downgrade Russia, leaving it one notch above junk, but with negative outlook.
    When my car is sick I see a mechanic, when I”m sick I see a doctor (not a doctor of philosophy ) When I want to know how safe a country’s promises to pay are, I consult a bond rater.
    You guys and this gold thing: if you switched out of gold into US$ a year and a half ago you would have a 30-60 % return depending on which currency you bought your gold with.
    If China sold $US to buy rubles, jeesus, I wouldn’t want to be THAT financial adviser.
    Re: putting holdings in its own currency- I guess they are spending it now because their stock market is in the middle of a 1929 type crash and all resources are being thrown at the problem.

    And this BRICS thing- buy a newspaper. They are all in trouble, although none as bad as Russia which is a true basket case. I have never seen a product made in Russia- but I am starting to see few things from India, garden tools.

    The scary thing about Russia is that Putin who lives in a fantasy world doesn’t realize how desperate the situation may become by winter- despite warnings from former finance minister Kudrin, fired for saying that Russia can’t afford the military budget, and saying today that Russia is in crisis. I wonder if he has a food taster.
    Yes 40 million Americans are on food stamps- in Russia there aren’t any food stamps.

  31. Spoken like the true socialist. Because the US holds the world’s reserve currency, we have been able to print billions of free dollars. It pays for our military and hides the true extent of the national debt. However, there are limits, and if we were to print $19 trillion new dollars, they would be worth less than toilet paper. We would have no more national debt, but also no savings, no credit, and your money and mine would be gone down the inflation tube. To see what would happen, Google “Weimar Republic”.
    Another problem is that the dollar’s run as the world’s premier reserve currency will come to an end someday – and that day may not be far off. The BRICS want to bring the dollar down because they are sick of us getting free money, so they are working hard to replace the dollar with either gold or the Yuan. The latest information indicates that the IMF will recognize the Yuan as
    a new reserve currency later this year. Given that China is now the
    world’s biggest or second biggest economy, they have little choice. It won’t end the dollar’s dominance, but it will give it a shove.
    The day the BICS succeed in toppling the dollar, the era of free money is over. We won’t be able to borrow and print money and the depression in America will make the great depression of the 30’s look like The Good Old Days.
    By the way, Russia’s reserves are no longer dwindling. As they have a real income, they are buying dollars, Euros, renminbi and gold again – and Rosneft has paid its current debts and is putting cash in the bank. China is paring back its holdings of US debt and putting more into gold, rubles, and it’s own currency.
    We, of course, don’t have those options because we are a broke, busted, penniless country living day to day on our credit cards. Believe it or not, the bills will come due.

  32. Speaking as a teacher who has graded a lot of essays- this one has the hallmark of one that had to be stretched because it wasn’t long enough. Russia is big energy exporter? Who knew?

  33. Take a close look at the symbol in front of 19 trillion. What does $ mean? I means the currency of the US. It can print its obligations if it has to.
    And China’s two trillion of US$ reserves? The US problem right now is a high dollar and a low yuan. The US would love it if China sold US$.
    Russia’s largest companies- e.g. Rosneft that just had to be bailed out with Russia’s dwindling reserves, owes billions and guess what- it owes them in $US, which have doubled in ruble terms.

  34. What exactly makes Russia a Superpower in Mr. Morris’s mind? Their economy is the size of Spain’s. Russia’s only claim to fame are their nukes, and the west has an answer for those as well.

  35. That is not a grown up way to talk. Where is the mutual respect old man?

    Basically, you are saying ‘I am right’ and ‘you are wrong’. How mature is that? Why don’t you name yourself dictator for life because it suits you. Pretty dim for an old man.

  36. I’m old enough to be your grandfather. You should respect your elders. If you don’t know what you are talking about then you should keep your trap shut and learn from others.

  37. Of course. You failed only to mention that if to divide our federal dept, it will be more than Greece’s dept if calculated per person, in Greece it’s about $30.000 per person, that will be $40.000 per everyone in USA while Russia has half of trillion in gold reserves. All we ship abroad is a paper dollars and all we count that us dollar will be reserve currency for forever. Yes, I am of Russian origin, but I live in us for very long time. It is deeply disturbing that our government, i do mean us government, counts on new conflicts in the world to maintain status quo, instead of actually trying to fix macroeconomic situation.

  38. The price of oil determines the state of Russia’s economy. Fracking has given the US the ability to keep those prices low. As soon as the price of oil rises more American wells come back online bringing the price back down. The US has already won the economic war with Russia.

  39. Huge country needs to concentrate on own neglected
    territories. Nobody has power or guts to invade it. Why waist resources on
    showing off defense and capabilities?

  40. The author if this article is in fantasy land and is probably on Putins payroll. Russias GDP is shrinking fast to the point that Italys economy is already larger and he failed to mention that the US has now surpassed Russia and Saudi Arabia as the largest producer of oil and natural gas thereby considerably undercutting Russias leverage in the energy department. The US also has the largest gold reserve thereby undercutting his claim of the US potentially being suckerpunched by Russia and China. The US is taking all this in stride as it should while holding most of the chips on the poker table.

  41. An economic war? What a joke. Russia’s economy is about the size of Spain’s economy. A mere pimple on America’s rear end. Russia, a country with enormous amounts of natural resources and farmland, yet so riddled with organized crime and corrupt politicians that it will never become the economic powerhouse that it should be!

  42. al…i never stated that alternative energy for cars was going to be cheap but it will compete with oil…otherwise it will never get off the ground. I think you did not read what i stated. I know that most hydrogen today is produced by reforming natural gas…with the goal of producing it from electrolysis using alternative energy. That is already happening. It will take time. It took time for the hybrid cars to get traction so I expect hydrogen cars to take just as long if not longer. Your conclusion has no basis. think you need to do some real research before coming to any conclusion. Hey…8200 tons of gold. If you know something else, please provide the information…rather than your wishes. I can get your information from the bar any day of the week. The sky is always falling there.

  43. Not much of an economic war being waged on the westerner side of the conflict .. If there was .. Swift banking would of been sanctioned a long time ago .. Russia is serious U S is just Beach slapping

  44. Yang, please explain to this poor mistake of Darwin, how the national debt works in such a way that being in debt for far more than you can possibly repay is no problem. Of course, such an educated genius as yourself should keep in mind, as you explain to us lesser souls, that the dollar’s years as the world’s reserve currency will not last forever.

    Awaiting enlightenment from my betters, oh August being with the big Yang.

  45. ” US has about 8200 tons” IF.
    Search for that “IF” US has gold.
    That’s first, and second: why with oil price half of it used to be gas prices still the same as a year ago?
    So in other words if You expect “alternative” energy will come cheap You’re very, very wrong!
    I bet it’ll be same if not higher than gas.
    You’ll drive an electric vehicle and to charge it’s battery will cost if You were fueling it up
    and driving hydrogen powered vehicle (which is times as expensive as gas powered one to begin with) will cost even more!
    Plus most of power plants turbines still natural gas powered and Hydro companies WILL increase the cost of electricity! (well they always do don’t they lol)
    So in conclusion nothing: will change and as usual 1% of population will get RICHER while the rest still be where they are now.

    sad reality…

  46. Food for thought: If the U.S. has so much gold, why wouldn’t they want to return to the gold standard? I suggest you look up the stock market crash of the 1920s and the move away from the gold standard in the 1970s for further education before posting uneducated comments.

  47. Do you even know how national debt works? If you did, you would not make an educated comment as such. For the sake of humanity, please do not procreate.

  48. The US has 8200 tons of gold…yeah right. How much of its own gold does it have? The US is very afraid of a gold standard, Gadaffi was taken out because he wanted a gold standard for the African continent, Saddam Hussein was taken out for similar reasons. They would have done the same thing with Russia, and China if they could…but they cant.

  49. A country with $19 trillion in debt that it cannot repay is unlikely to win an economic war. We still have much of the wealth that our grandparents earned for us, but we aren’t adding to it and an economy based on credit cards has to fall someday.

  50. Talking about gold reserves. US has about 8200 tons, china about 1000 tons and Russia with also 1000 tons. They have a long way to go before using gold to become a reserve currency. And Russia will find it very hard to buy gold when their country is starving. The US produces more gold than Russia. In addition, fuel cell cars are already on the road leading the way to a hydrogen economy …hydrogen produced by alternative energy. What will that do with all of the oil and gas Russia has? I can guess at that and so can you. This article is very one-sided…in other words..half truth.

Comments are closed.