Escobar: Meet The New, Resource-Based Global Reserve Currency• https://www.zerohedge.com by Pepe Escobar
It was something to behold. Dmitri Medvedev, former Russian President, unrepentant Atlanticist, current deputy chairman of the Russian Security Council, decided to go totally unplugged in an outburst matching the combat star turn of Mr. Khinzal that delivered palpable shock and awe all across NATOstan.
Medvedev said "hellish" Western sanctions not only have failed to cripple Russia, but are instead "returning to the West like a boomerang." Confidence in reserve currencies is "fading like the morning mist", and ditching the US dollar and the euro is not unrealistic anymore: "The era of regional currencies is coming."
After all, he added, "no matter if they want it or not, they'll have to negotiate a new financial order (…) And the decisive voice will then be with those countries that have a strong and advanced economy, healthy public finances and a reliable monetary system."
Medvedev relayed his succinct analysis even before D Day – as in the deadline this Thursday established by President Putin after which payments for Russian gas by "unfriendly nations" will only be accepted in rubles.
The G7, predictably, had struck a (collective) pose: we won't pay. "We" means the 4 that are not large Russian gas importers. "We", moreover, means the Empire of Lies dictating the rules. As for the 3 that will be in dire straits, not only they are major importers but also happen to be WWII losers – Germany, Italy and Japan, still de facto occupied territories. History does have a habit of playing perverted tricks.
Denial didn't last long. Germany was the first to break – even before industrialists from Ruhr to Bavaria staged a mass revolt. Scholz, the puny Chancellor, called Putin, who had to explain the obvious: payments are being converted into rubles because the EU froze Russia's foreign exchange reserves – in a crass violation of international law.
With Taoist patience, Putin also expressed hope this would not represent a deterioration in contract terms for European importers. Russian and German experts should sit down together and discuss the new terms.