Dollar's Decline Might Be Propelled By Putin's New Currency. An In Your Face Slap At Obama

Dollar Death Spiral Gets a Big Push from Putin

It looks like things are about to go from bad to worse for the U.S. dollar.

U.S. sanctions on Russia have already backfired. They have further isolated the U.S. and given Russia a reason to completely move away from the dollar.

And now it appears that Russia is introducing a gold-backed ruble.

According to reports from Russian media, Putin appears to have sent the west a golden message in the aftermath of JPMorgan unilaterally deciding to block an official Russian wire transfer, as the Central Bank of Russia has introduced a new logo, which just happens to be a gold ruble.

Officials stated on the new logo: Golden Badge of the Russian national currency, officially adopted by the Central Bank of Russia, will symbolize a sign of stability and security of the ruble gold reserves of the country.

Image Source: Silver Doctors

For months now, many people have expected China to become the first nation with a gold-backed currency. But it appears Russia may have beat China to the punch.

Either way, this is yet another huge blow to the dollar.

Richard Nixon closed the gold window in America back in 1971. This was called the“Nixon Shock.”

After the gold window closed, the dollar maintained its position as the global reserve currency by reaching an agreement with OPEC nations in 1975 that would require all oil sales to be denominated in U.S. dollars — hence the name “petrodollars.”

The stated reason for the Iraq War was “weapons of mass destruction.” But the real reason was to preserve the petrodollar system by preventing Saddam Hussein from pricing oil in dinars.

But now the petrodollar system is breaking down fast. Russia and China have already circumvented the dollar and other nations will soon follow.

Here is the question we are now forced to ask: What currency will arise in the wake of the dying petrodollar? Will it be the Russian ruble?

This seems like a real possibility, especially now that it appears to be backed by gold.