Deficits? – Russia Now Has Monetary Safety Net To Tackle “Crisis-Like Episodes”
Deficits? – Russia Now Has Monetary Safety Net To Tackle “Crisis-Like Episodes” by Rory for The Daily Coin
The monetary changes in Russia over the past 5 years have been an exercise in discipline and fortitude. Russia is now seeing the fruit of their efforts in spite of economic sanctions imposed by western governments like the U.S. and U.K..
As we have reported, in particular over the past two years Russia has been intentionally making massive changes to their monetary system and, especially, their monetary reserves. The nation of Russia is now a net saver in terms of their outstanding debt to other nations and in terms of conducting trade with other nations. Russia pays the invoice as they order the merchandise or the service. The reward can now be seen, literally, in their vault in the form of mass tonnage of physical gold and silver along with foreign currencies and SDR’s. What you will not find is an overabundance of U.S. Treasuries (notes of debt).
The Central Bank of Russia (CBR) reported Thursday that the country’s international reserves amounted to $502.7 billion last week, thus exceeding the target level set by the regulator.
The figure is up by $7.5 billion from the level seen a week earlier. According to the CBR, reserves increased by 1.5 percent “mainly due to a positive revaluation and the purchases of foreign currency within the framework of the budget rule.”
While Russia’s international reserves are measured in terms of US dollars, they are actually highly-liquid foreign assets, comprising stocks of monetary gold, foreign currencies and Special Drawing Right (SDR) assets, which are at the disposal of the Central Bank and the government.
Accumulation of holdings is part of the national policy, according to the central bank governor Elvira Nabiullina. She said last month that reaching the target volume of half-a-trillion dollars in gold bullion and foreign currency holdings would be enough to tackle crisis-like episodes. Source
While the U.S. and all our allies continue to amass huge amounts of debt that will never be repaid, Russia has moved in the other direction and has tightened their economy, made it far stronger and much more resilient than any other nation on the planet. With a $500 BILLION savings account, with a large portion of that being physical gold, there nation is indeed prepared for most “crisis-like episodes” that come there way. Let’s not forget that within 5 years or less they Russia will also be much more food independent as well. If you combine the following three items – food independence, energy independence and huge savings account – what do you get? A sovereign nation that cares about and for their citizens.
Don’t get me wrong, Russia, like all other nations around the world, has serious issues, not the least of which are human rights violations issues – just like the U.S., just like the U.K. and just like China. What Russia has that these other nations do not have is a solid Christian foundation upon which to stand. Not one of the other nations listed can say that, nor can any one of them prove it by the way they treat their unborn citizens or by the way they protect their borders. What else is a government suppose to do aside from protect it’s citizens from outside forces?