You are aware that as of Sept 6, 2012 Russia has agreed to sell as much oil to China as they care to purchase – outside the use of the “U.S dollar” right?
Some believe that both countries are also hoarding as much gold as they can as well – in preparation for a new trade system outside the use of U.S dollars.
According to the World Gold Council, Russia has more than doubled its gold reserves in the past five years. Putin has taken advantage of the financial crisis to build the world’s fifth-biggest gold pile in a handful of years, and is buying about half a billion dollars’ worth every month. As the U.S FED continues to print, countries in the East are moving further and further away from use of USD in trade. Can you really blame them?
I mean think about it. Why on earth should a person in China need to exchange the money in his pocket to USD – before purchasing a barrel of oil from his neighboring country Russia?
In any case – Russia is deeply invested in Cyprus ( with considerable interests in its offshore gas supplies, and billions of dollars sitting in Cyprus banks) not to mention the largest supplier of oil to Western Europe.
If Cyprus gets bailed out or assisted solely by Russia – this will be a massive slap in the face to the IMF – and would have significant geopolitical implications.
I’m no investigative journalist – but the more I dig the clearer the picture becomes.
No wonder the IMF is involved.