Russia Moves to Increase Gold Stockpile

The New American reports on Russia's move to increase the speed at which they are stockpiling gold reserves.

"With the value of the U.S. dollar exponentially declining since the establishment of the Federal Reserve Bank in 1913, it comes as no surprise that many world leaders and international economists have expressed their desire for a new world reserve currency. In light of the global financial crisis, Russia may be moving toward a sound economic solution — gold.

On Monday, January 24, the First Deputy Chairman Georgy Luntovsky of the Central Bank of Russia (CBR), announced plans to purchase over 100 metric tons of gold every year — increasing the bank's gold reserves by 13 percent in 2011.

Last year alone, the CBR expanded its gold holdings by 23.9 percent to 790 tons. Why the sudden increase? “The current set of reserve currencies and the main reserve currency — the U.S. dollar — have failed to function as they should,” Russian President Dmitry Medvedev told a Shanghai Cooperation Organization summit on June 16, 2009, adding that he would like to see the Russian ruble become a global reserve currency.

Medvedev’s desire for the ruble to be a global reserve currency, or part of a new economic world order, may not be the only reason for the sudden gold increase. With the signing of the Customs Union treaty last month, the leaders of Russia, Belarus, and Kazakhstan agreed to establish a free-trade zone among themselves with a common currency. The Customs Union — set go into effect on January 1, 2012 — has been regarded as the economic restoration of the Soviet Union...

...As the value of gold continues to rise throughout the world, it is evident that no new sound economic solution can be found for any country without that precious metal commodity. Even here in the United States, Representative Ron Paul (R-Texas) has been the loudest voice for a return to a domestic full gold standard, though his idea has as yet fallen on deaf ears.

A newly invigorated Russian ruble based on gold may just be the key for that country's rise as an economic power, which could in turn tip the balance of power in favor of Moscow and its newly formed Customs Union.

By means of capitalism and sound economics, Russia is moving itself out of the global recession. The question now is, what will the United States do next?"

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While the West Sleeps

From the Communist Party of Australia website

Cuba and Russia ratified last week their historic ties of friendship and cooperation during a meeting between Foreign Minister Bruno Rodríguez Parilla and his Russian Federation counterpart Sergey Lavrov at the Ministry of Foreign Affairs in Havana.

”I believe that all this work has enriched and strengthened our relations, converting them into a truly strategic association,” Lavrov affirmed after signing three documents with his host.

A political consultation plan between the two Foreign Ministries covering the 2010-2011 period establishes the proposal to fortify the excellent existing political links between the two governments via periodic interchanges on general, regional and multilateral issues.

The Joint Statement on the commemoration of the 65th anniversary of the victory over fascism underlines its significance and contains the parties’ intention to contribute to the consolidation of the ideals of peace, greater understanding and friendship among the peoples.

The third document is the Joint Statement on the occasion of the 50th anniversary of the re-establishing of diplomatic relations between the USSR and Cuba, confirming a will to celebrate that important date.

The two foreign ministers discussed aspects of the current state of links between their countries, economic relations, education, culture and tourism, among others.

Lavrov confirmed Russia’s total condemnation of the US blockade of the island and stated that “Russia and Cuba share many things, such as our adherence to common ideals, international law and legality, to the UN and to joint efforts to resolve all kinds of problems.

“We share a very strong human warmth between the Russian and Cuban peoples and this warmth gives our relations a solid foundation,” he emphasised.

4% For Freedom

The Washington DC based Heritage Foundation has launched a "4% For Freedom" campaign.

Heritage is worried that defense spending under Obama is imperilled and that this will have dire consequences for freedom world wide.

I agree. Who is going to hold Russia, China, Cuba, Venezuela, Iran etc etc in check if not the US is no longer able?

Can you see the UK doing it? Canada? Australia? New Zealand?

Heritage is fighting back with a call to ensure that US defense spending remains at least 4% of GDP.

It deserves every thinking Westerner's support.

Check it out here