Ukraine and the Next Wave of Inflation, Part II, Can Russia Enact a Gold Standard?

by Keith Weiner

In Part I we discussed how the fallout from the Russian invasion of Ukraine will lead to inflation, but not in the way most people think. In Part II we discuss the possibility of Russia repudiating the dollar and going on a gold standard. Can they do it? How would the world react? Why not enact a Bitcoin Standard instead?

The Russian central bank reportedly has over 2,000 tonnes of gold. We have seen three arguments repeated many times, both in finance/economic articles and on social media.

One is that Russia can pay gold for goods, to work around being locked out of the SWIFT payments system.

Two is that Russia could use this to declare a gold standard, which would really piss off the Western powers.

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