Sanctions are an inefficient and unworkable tool because they invariably have unforeseen repercussions that harm the nations that implement them, according to investor and Planet Ponzi author Mitchell Feierstein in an exclusive interview for RT.

In response to the recent embargo on transactions involving Russian gold reserves imposed by the US and the UK, he stated that sanctioning the Russian Central Bank's gold is impossible. For starters, the Russian Central Bank is a buyer of gold rather than a seller. Second, the refining technique used to create gold bars or coins is simple to imitate. "Russian" gold, he claims, can be readily melted – brought to another refiner, tested, molded into bars, and resold.

“Exchanges and markets do not specify where gold ore was mined or refined, nor do they care. Proving this would be impossible. The buyer’s only demand is that the minimum assay certificate confirms .995 purity and the exact weight.”

Feierstein further stated that any gold bans can and will be readily avoided since central banks, including the Russian central bank, have "sovereign immunity".

Feirstein confirmed that gold, as it has been for more than 6,000 years, will continue to be a currency.

“Accordingly, since 2013, I have been predicting how the West’s debt and confidence crisis, which began in 2008, would cause the end of the US dollar hegemony. China, Russia, or India will launch a new currency backed and exchangeable for gold, silver, oil, or wheat,” he said. “At that point, fiat currencies will become worthless, and the USD will lose its reserve status," he added.

According to Feierstein, Asia, India, and the Middle East would likely disregard Western sanctions on Moscow since Washington would be unlikely to verify a gold transaction between Russia and China, Iran, India, Brazil, Saudi Arabia, the United Arab Emirates, or African states. The three continents “will resist or ignore the sanctions imposed by the West, expediting the end of the USD as the world’s reserve currency and deepening the East-West divide.”

The expert concluded that sanctions usually carry a "boomerang effect", adding that “in fact, in my four decades in global finance, I do not remember a single case where sanctions were successful.”

He shed light on the consequences of Russian sanctions, like global inflation in food and energy prices, food shortages and famine in Africa, currency devaluation, mass censorship, and many others.

Last week, the ruble increased in value, reaching a three-week high after Moscow announced that gas exports' payments to a number of Western countries will be dealt with by the Russian ruble. 

The USD exchange rate declined in favor of the Russian ruble, trading at 90 rubles during Monday trading on Moscow Exchange for the first time this month. On the other hand, the euro dropped below 98 rubles for the first time since the end of February, trading data suggested.

Earlier this month, the Russian ruble reached historic lows upon the authorization of the special military operation and the announcement of West-led sanctions against the Russian economy. On March 7, the currency dropped to historic lows of 132 rubles per dollar and 147 rubles per euro. Before that period, the currency was exchanged at 75 rubles per dollar and 85 rubles per euro. 

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