What Happens if Russia Wins the Financial War?

Alasdair Macleod, Michael Oliver and Michael Wood return on this week’s program.

So far, sanctions have backfired on those described by Vladimir Putin as the unfriendly nations. It is setting in train a series of events likely to undermine the whole western financial system, as prices rise, driving interest rates higher and shrinking economic activity. These developments alone are leading to the contraction of bank credit, crashing stock markets and sharply higher bond yields.

Last week, I wrote about the impact on the banking system and the likely consequences. Russia, China, and associated nations who depend upon them for trade and economic development are now moving to protect themselves from what is emerging as a full-scale systemic and fiat currency crisis for the dollar and the entire western financial system. These developments are hastening the end of the petrodollar era and the dollar’s role as a reserve currency.  A central Asian replacement of the petrodollar is planned to be a new super-currency used for cross-border payments, based on an index of a basket of commodities and currencies of the participating nations.

The creators of this new currency system are designed to replace a dying petrodollar by appealing to other important nations, such as Saudi Arabia, into using a commodity-linked currency for settling their trade payments. Its success could prove to be fatal for the fiat dollar and other Western currencies. With the demise of the dollar, the new super-currency can be expected to lead eventually to some national currencies adopting the gold standard. What impact might a successful replacement of the dollar have on U.S. dollar denominated investments? Alasdair shares his thoughts on those topics.

Michael Oliver updates us on what his MSA technicals are saying about key markets and Michael Wood updates us on Reyna Gold.

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Alasdair Macleod has a background as a stockbroker, banker and economist. He is a Senior Fellow at the GoldMoney Foundation and Head of Research at Goldmoney.  His experience encompasses equity and bond markets, fund management, corporate finance and investment strategy. His weekly articles written for GoldMoney are posted on his blog at www.goldmoney.com/research/goldmoney-insights Because of his deep insights into underlying market dynamics, Alasdair is one of the most frequent guests on Turning Hard Times into Good Times.

Michael Wood holds a BSc. in Economics from Cardiff University and an MBA from Hong Kong University of Science and Technology. He started his career in Wealth Management in London, before joining the Metropolitan Police, where he progressed to be a detective conducting Counter Terrorism Investigations for Scotland Yard’s Counter Terrorism Command (SO15). Mr. Wood is currently the Chief Executive Officer of Reyna Gold, which holds a portfolio of gold projects in Mexico; and Chief Financial Officer and director at Reyna Silver Corp. He is also a director at Emerging Markets Capital, a Hong Kong based private investment and advisory firm focused on natural resources.

Michael Oliver entered the financial services industry in 1975 on the Futures side, joining E.F. Hutton’s International Commodity Division, NYC. He studied under David Johnson, head of Hutton’s Commodity Division and Chairman of the COMEX.

In the 1980’s Oliver began to develop his own momentum-based method of technical analysis. In 1987 Oliver, along with his futures client accounts (Oliver had trading POA) technically anticipated and captured the Crash. Oliver began to realize that his emergent momentum-structural-based tools should be further developed into a full analytic methodology.

In 1992 he was asked by the Financial VP and head of Wachovia Bank’s Trust Department to provide soft dollar research to Wachovia. Within a year Oliver shifted from brokerage to full-time technical research. MSA has provided its proprietary technical research services to financial and asset management clients continually since 1992. Oliver is the author of The New Libertarianism: Anarcho-Capitalism. 

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.