Putin’s 9 May speech in Red Square came and went, without any new theatre opening up. This may indicate a change in strategy to limit the kinetic war to Donbas but he’s made it quite clear that, in his world view, the culpable protagonist, is NATO /USA. By moving away from military rhetoric his speech, along with threats to take “retaliatory steps, both of a military-technical and other nature” against NATO-bound Finland, shifts the focus in the conflict to the financial, economic and cyber security fields. If the West is at the end of a 50-year debt-financing bubble, the global financial system, largely of American design, is very vulnerable. That is why an interview on 26 April 26 in Rossiyskava Gazeta by one of Putin’s top strategists — the man who in 1999 replaced him as head of the FSB, Nikolai Patrushev — adds new heat to the boiling pot. Patrushev, who is Secretary to the Russian Federation’s Security Council, the inner sanctum chaired by Putin and which includes Lavrov, Medvedev and Mishustin, announced a fresh challenge to the US–dominated global financial system. Nikolai Patrushev Source; Spisok-Putina.Org The Kremlin determines the West’s weakest financial spot to be its debt bubble. In its eyes it is a West burdened by decades of debt excesses, now facing runaway inflation, supply chain disruption, and faltering consumer confidence. It sees the West’s Central Banks, led by the Fed and Bank of England, trying to perform a miracle U-turn — jacking up interest rates in a time of war without triggering recessions. This is Russia’s opportunity, as the Kremlin sees it, to lead a coalition of economic regions that strike a blow to USA pre-eminence and births a new currency system. Patrushev outlined Russia’s plans to head a multi-currency system pegged to gold and commodities and, he couldn’t have been clearer: “For any national financial system to be made sovereign its means of payment must have intrinsic value and price stability, without being pegged to the Dollar. Now experts are working on a project proposed by the scientific community to create a two-circuit monetary and financial system. In particular, it is proposed to determine the value of the Ruble, which should be backed by both gold and a group of goods that are currency values, and to put the Ruble exchange rate in line with the real purchasing power parity”. Patrushev’s interview was first reported in the West by Ronan Manly, a precious metals analyst and writer with Singapore-based, BullionStar. Since Nixon’s break from the gold standard, the US has built power from an endless demand for Dollars to finance trade and to attract inexpensive capital flows into US Treasuries, giving it a unique competitive advantage, one that US proponents see as open-ended, immutable, and an American birth right. But in announcing plans to head a global multi-currency system, starting in the Eurasian region and extending, through intensive co-operation to half the planet, Patrushev sees things very differently: we are clearly aware that the West allows other countries to be its partner only when it is profitable for it “The West has unilaterally appropriated an intellectual monopoly on the optimal structure of society and has been using it for decades… We are not opposed to a market economy and participation in global production chains, but we are clearly aware that the West allows other countries to be its partner only when it is profitable for it. Therefore, the most important condition for ensuring Russia’s economic security is to rely on the country’s internal potential, a structural adjustment of the national economy on a modern technological basis”. Though largely ignored in the West, Russia has pegged the Ruble to gold in trades between its Central Bank and its banking system — setting a floor at 5000 Rubles per gram. Though largely ignored in the West, Russia has pegged the Ruble to gold in trades between its Central Bank and its banking system — setting a floor at 5000 Rubles per gram. This twins the Ruble with gold, which is traded in US Dollars, while simultaneously Russia demanded Rubles for gas from opponents to its war in Ukraine. Based on Patrushev’s comments, which I believe are aimed squarely at commodity-exporting nations, the next likely step is to entice payments for Russian gas in gold, in an attempt to change the nature of international energy markets away from trading in Dollars. If successful, this could trigger a flow of gold into Russian reserves bolstering its currency-peg plans. This has the potential to damage the highly-leveraged paper gold markets and to start a contagion. Russia’s plans would ultimately require the removal of its exchange controls, which have pushed the Ruble to a two-year high against the Dollar. It would also require a post-war international agreement for commodity-backed currencies involving all participants including China, India, Iran, Latin America and Africa, if it were ever to be successful. In doing so Russia would face the double-edged sword Nixon faced when gold was demanded as payment for national debt instead of Dollars, due to sagging confidence in the US currency after it had borne the cost of the Vietnam War. Those who blindly follow the doctrine of US pre-eminence scoff at plans to restructure the global financial system, having heard it all before. What’s different this time, is the scale of debt being carried by the US and many Western economies while Central Banks, unnerved by breakaway inflation, raise borrowing rates in a desperate attempt to counteract inflation. What’s different this time, is the scale of debt being carried by the US and many Western economies while Central Banks, unnerved by breakaway inflation, raise borrowing rates in a desperate attempt to counteract inflation. If the tightening cycle, now entered into by the Fed, hobbles the US economy this year, a flip flop by the Fed, back to easing once again to avoid recession, would hobble the Fed itself. The truth is that, it is all finely poised. The advanced sign of an