Darkness keeps dawning at the break of noon, and another...

Darkness keeps dawning at the break of noon, and another milestone on the road to perdition for the USD.

"Golden Ruble 3.0"

In general, those who hold metals and miners will be the beneficiaries, and holders of SVL in particular.

Analysis and commentary of the "Golden Ruble 3.0" is doing the rounds on the internet lately.
This is just one example,
https://thecradle.co/article-view/20532/global-south-gold-backed-currencies-to-replace-the-us-dollar

If you haven't seen the original article by Sergy Glazyev ( translated from Russian ) Western financial media have ignored it. No surprises there. "It is difficult to get a man to understand something, when his salary depends on his not understanding it."As it is with those who have benefited from the USD and refuse to think critically and impartially about something they think will never end.

Sergy Glazyev is Russia's top finance man in Vladimir Putin’s cabinet who recently laid out his plans, to protect Russia and the Eurasian Economic Cooperation Union member states and BRICS+ nations from the inevitable death of the Western USD led dollar debt-based monetary system because of accelerated currency and credit inflation, as one-by-one central banks are rendered powerless.

Sergy Glazyev's quote from his article entitled "Golden Ruble 3.0" which you can read here,https://archive.md/8bljO
should be music to our ears or eyes, because the holders of metals and miners like SVL will clearly be the beneficiaries of this dawn of a new era.

Glazyev makes a good case for "Golden Ruble 3.0" when he says, "gold will be used to price all major international goods: oil, gas, food, fertilisers, metals, and solid minerals."

He goes on to say how. "Gold (along with silver) has been the core of the global financial system for millennia, the equivalent, the honest measure of the value of paper money and assets. Now the gold standard is considered 'anachronistic'. It was canceled in its final form half a century ago (the United States announced the 'temporary' closure of the 'gold window' adopted in 1944 at Bretton Woods), re-pegging the dollar ( from gold ) to oil. ( In 1973 Saudi Arabia agreed to sell oil for only USD, in return for US 'protection' ). But the era of the petrodollar is coming to an end: now they are already talking about the petroyuan and other mechanisms to limit the abuse of the status of the world reserve currency issuer. Russia, together with its eastern and southern partners, has a unique chance to 'jump off' the sinking ship of the dollar-centric debt economy, ensuring its own development and mutual trade in the accumulated and extracted strategic resources."

In August 1971, when Nixon abandoned the convertabilty of gold into USD, crude oil was priced at $3.56 a barrel and the market price for gold was $42.85. In ounces of gold per barrel this equates to 0.0831 ounces. Today, the gold price of oil is 0.0417 ounces per barrel, roughly half. Using gold, Glazyev can demonstrate the cost to OPEC+ of enforced settlement in USD halved the value of their oil since the Bretton Woods agreement was suspended in 1971. To compensate for oil's loss of value since the ending of Bretton Woods, the gold price would need to be double the spot, that is, $3,800.

The Bank for International Settlements ( BIS ) a Western Institution has booted Russia out. As if Russia wants or needs them, now that the caravan has move on. "it's a big club, and you ain't in it." https://www.bruegel.org/blog-post/war-europe-financial-front

As if to underscore the new era laid out by Glazyev, all the troubles of the Bank of Amsterdam are suddenly revisiting the western alliance's central banks. Soon we won't need an "the explanation for the unique 'break point' where negative equity and asset illiquidity renders fiat money worthless", as the authors of a recent Bank of International Settlements (BIS) working paper put it. ( Don't you just love the "working papers" they put out always try to address the problem of a system that doesn't work? ).https://www.bis.org/publ/work1065.htm

Central banks can operate with negative equity, and many have done so in history without undermining trust in fiat money. However, there are limits. How negative can central bank equity be before fiat money loses credibility? The BIS paper seeks to address this question using history as a guide, and the example of the fall of the Bank of Amsterdam (1609–1820).The explanation for the unique 'break point' is where negative equity and asset illiquidity renders fiat money worthless.

Central banks have come to the point where they have only two options:
a) Debase the existing currency by issuing more currency for bonds, to increase the overall money supply, to pay off existing debt, plus interest, in a never ending death spiral into a black hole. All to 'temporarily' save the economy. Soon central banks will own all the debt, as a 'liability', because bonds as an 'asset' will be worthless, denominated in a currency that has no intrinsic value.
b) Crashing the economy ( they blew into an unsustainable bubble ) by aggressively raising rates, stop issuing credit, and 'temporarily' save the currency.

In purely political terms both options now are a disaster, aside from the human cost. And even if politics never mattered, ( cue the cynical laughter! ) there never was a choice, as if central banks thought they could control a system of credit based on nothing, and kept it going for a century. It was a system with a built in doomsday clock. Now it's 60 seconds to midnight.

Now they have only themselves to blame; they and the governments they serve, that have spent money they never had, but borrowed from the future,( theoretically to be repaid over time with tax receipts ) but in reality will never be repayed to their creditors: those sovereign bondholders who, seeing the writing on the wall, are dumping US bonds, and selling the currency for tangibles to third parties, those remaining true believers.

All that remains to be determined by current circumstances, set in motion by past events, is the date upon which changes become so dramatic, so painful, and on such a scale never before experienced in history, that ignorance and inaction will no longer be an option.

The date may be indeterminate but the path is clear for those with eyes to see.
SVL and 2023. What a time to be alive.