The Threatened Putin Gold Peg

Ugly Old Goat
13 min readJun 25, 2022

What It Means For the U.S. Dollar, Bitcoin, and the World Economy

Last month I outlined What The Russian Ruble Gold Peg Means To Bitcoin. The article was limited in scope because while I am somewhat credentialed in bitcoin and gold through experience, I consider myself a second-rate self-taught economist and thought it best to leave the implications to the U.S. dollar and world economy to those better trained.

But there has been a dearth of information on the subject. Apparently, the significance of the Russian gold peg has been completely missed by traditional gold bugs, bitcoin maximalists, along with legacy economists in the West.

Yet upon further thought, this should have been expected by an aging boomer who had the privilege of growing up with circulating, silver certificates, silver dollars, fifty-cent Franklins, silver quarters, silver dimes, nickel nickels, and copper pennies.

Quite the opposite of today’s Metaverse.

The 50-cent Franklin Half Dollar. I remember buying a rocketship for 49 cents plus 1 penny sales tax. Missouri sales tax was 2% until 1963. Likewise a Three Muskateers for a nickel.

The 1971 Nixon closing of the gold window seems to be the starting point for most contemporary sound money commentaries.

Yet the current monetary situation hardly began in 1971. In monetary affairs, perhaps more than anywhere else, Shakespeare's “The sins of the father are to be laid upon the children” holds true. This is not as it should be, yet without repentance or a change of heart, this is how it is. Children are held responsible for their father’s sins when they adopt them as their own for as many as four generations.

That said with my generation, the Baby-Boomer generation, came the current strawman that identifies, divides, splits, and distinguishes generations from the natural homogeneous family unit, Subsequently, every entitlement that can be imagined has been imposed through the theft of inflation, taxation of labor, distribution bureaucracies, regulations, and prohibitions with the promise of cradle to grave security.

The delusions of today did not come about in a vacuum.

During my parent's era, the concept of nursing homes and medicare for the elderly emerged. It was…