Russian Rouble to attack the $
Russian President Vladimir Putin called for work on making the national currency convertible to be completed, oil and gas to be traded in Roubles on a domestic exchange, and an innovation-based economy.
In his annual state of the nation address before both houses of parliament, ministers and reporters, Putin said work on making the national currency fully convertible should be completed by July 1, almost six months ahead of the original January 1, 2007 deadline.
The president called for the establishment of a Rouble-denominated oil and natural gas stock exchange in Russia. "The Rouble must become a more widespread means of international transactions. To this end, we need to open a stock exchange in Russia to trade in oil, gas, and other goods to be paid for in Roubles," he said. Putin said this would be impossible without economic growth of over 7%, which, he said had been achieved in the past three years.
This is the second most significant step in removing the U.S.$ from the throne of sole global reserve and trading currency! Should any more oil producers take this step, it will precede a U.S.$ crisis and create massive potential instability in the globe’s foreign exchanges.
At the turn of the century, the British Empire was in its heyday. Seventy years later it had to impose Exchange Controls of its own to prevent the sudden exit of foreign investments from its shores.
Next week we will look at what happened and how it is pertinent to the U.S. today! Later we will describe just how Exchange Controls work to protect a nation’s financial base and the benefits that can come with them to the U.S. but to the detriment of the global monetary system.
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