In attempting not to sink into the depths of bigotry, at the same time it is widely understood the name 'Ivan' is often used as a slang term for Russians, so I could not resist the temptation to employ it here for dramatic effect -- not to offend. Because no other term could make this point as succinctly in my opinion, referring to the implications of the take-down in precious metals last week. I suppose 'Vlad' (also associated with an ancient mythical vampire [scary] creature) could have been used, especially as it refers to Vlad Putin (who in fact projects the image of a scary monster and is likely not a 'nice person' [especially to his enemies]), the man said to be carving out a new world order (think Eastern / commodity economy supremacy within an increasing regionalistic framework) Western bankers were not counting on, and it does have a nice ring to it. But again, I will stick with Ivan for the dramatic effect, it's wider recognition, and the message it's East against West in the grand scheme of things.
Marc Faber had it right when he pointed out last week that Putin, Vlad, was just protecting Russian interests by moving into Crimea, and that he was right to do so. But as you may remember from our discussion on the topic a few weeks back, it's more than that. You see both Vlad and Ivan (the Russian people) realize the West, and more specifically Anglo - American elites and their bankers are screwing them out of a fair price for their wears (think oil and gas, which is already happening, not to mention gold and silver); and, have decided to do something about it. They actually decided on this sometime ago, but like the Chinese, have been strategically accumulating gold reserves for years now, just waiting for the right time to start pushing back by making faulty and fraudulent pricing mechanisms redundant. (i.e. they are faulty and fraudulent because they depend on speculator betting practices in derivatives markets, which are in turn controlled by Fed liquidity and the various strata of prop desks, HFT's, and futures exchanges located in major financial centers of Europe and the US.)
Anywho, and circling back up to put the finishing touches of the primary point we are attempting to make here, as alluded to above, the smash down in precious metals this week was more than just the normal 'finger flip' from the Da Boyz this time around (standard Western commodity / inflation perception smack down), this time the 'finger flip' was directed squarely at Vlad, with the message being 'Take That Ivan' (Sell Russia), the idea being you may have made the US, and more specifically me (Obama), look like a fool again, but hey, who is having the last laugh in the end? We are still getting our commodities dirt cheap, and we, via the USDollar($) remaining the world's reserve currency, still run the show. I can't wait to see what Vlad's response will be when he flips his finger back. Shouldn't take too long either considering others in the region (think of the regionalism discussed a few weeks back) are making noises for Ivan to do his thing again. Oops, this just in and hot off the press, Vald's response.
What's more, it's very important for everybody to understand that one of these days, because of something Vlad will initiate, precious metals prices could pull a 'crazy Ivan' on Western bankers, a move that will not be retraced this time, illuminating their true state(s) of insolvency. Because it should be understood that Russia (and China) have the power to level Western markets, and causing gold to appreciate outside the control of faulty and fraudulent futures / ETF markets would be the most effective way they could accomplish this goal. Not only would such a move bring commodity prices into the range they should be (from Vlad's perspective), but if this move was associated with both Russia and China moving into commodity backed currencies and trading blocks, again, outside the influence of the US, then this would likely spell big trouble for the States, and West. (i.e. think much higher interest rates and commodity prices.) And wouldn't you know it, again, they didn't wait long in this regard, taking a direct shot at the petro$, and $ reserve currency status.
In terms of just how fast all this should come down, one would expect that with the world so financially interconnected and dependent on each other these days, that any moves by Russia (or China) would be at a measured pace. Unfortunately for the West however, and their dependence on low interest rates / commodity prices, things appear to be unfolding fast and furious, where with little to lose (in trade), Vlad (and Ivan) is taking advantage of a well laid out plan, fear, and momentum. Indeed it would be fair to say that once Ivan figured out they were getting shafted by faulty and fraudulent Western markets, markets that surreptitiously push up US centric financial assets at the expense of commodities, they laid a trap (by waiting for the US / West to become fragile due to excessive debt and socialism) that is now being sprung. And it's working, as evidenced by only hollow sanctions by the US / West, because not only does the US risk losing the petro$ here, Europe is dependent on Russia for their energy needs and robust trade relations. Again, this is not a good thing for stocks, the economy, and Western dominance / standard of living as commodity prices are now set to trend higher once again.
Looks like Ivan, and Vald, will have the last laugh after all.
That's all for now folks.