Posted Apr 13, 2014 by Martin Armstrong
Putin is staring straight into the eyes of a dead Europe whose governments are being consumed with Marxism, corruption, and self-interest – the same thing that destroyed Russia – go figure. He has stated that the collapse of the Soviet Union was the greatest tragedy of the 20th century. Nonetheless, he is not entirely blind to the idea of capitalism and free markets. In May 2014, the presidents of Russia, Kazakhstan and Belarus will sign an agreement on the establishment of the Eurasian Economic Union. Sections 9 and 11 the agreement, the draft of which is available on the official website of the Russian Ministry for Economic Development, are devoted to the joint monetary policy and financial markets. During the first stage, it is planned to set up an advisory board of the heads of central banks of participating states. The banks would be responsible for the rate of national currencies, regulation of banking and insurance activities and the harmonization of the securities market.
The Eurasian Economic Commission will establishment of the Eurasian Central Bank – the supranational regulator of the joint currency. The Eurasian Central Bank will be subordinated to the council of presidents or prime ministers of the EEU. The will then create a single currency following Europe down the wrong path and its name for the new joint currency has been supposedly coordinated – Altyn. The new currency is likely to be introduced no later than in 2025, although international economic sanctions against Russia may cut the process to 3-5 years and we may see this moved up to 2020..