As Zero Hedge speculated recently, the latest participant on the gold bandwagon is now officially Russia, which last month was said to be considering a sale of up to 25 tons of gold. That posturing did not last too long. Not only that, but Russia is now also actively participating in the dollar intervention market, buying more than $1 billion of dollars to keep the ruble low. Due to moderating inflation and a rapidly appreciating ruble, the country is now considering diversification in the same way that India and China presumable are: by shifting into dollars. Look for much more upside pressure on Gold as more and more countries become disgusted with the way Bernanke is treating both American's citizens and the country's currency. Reuters reporting:

Russia's central bank does not exclude further rate cuts before the end of 2009 and may buy gold from the state repository, Gokhran, the bank's first deputy chairman, Alexei Ulyukayev, said on Monday.

"We will buy (gold) only if conditions are adequate," Ulyukayev told reporters. Last month, Russian media reported that the government planned to sell 25 tonnes of gold, possibly on the local market, from the repository. Separately, Ulyukayev said the central bank has bought more than $1 billion in November on the foreign exchange market to cap the appreciation of the rouble. The vast majority of the purchases came on Monday amid increased interest from investors in the rouble and its instruments, pressuring the Russian currency to firm further.

And as for the most stinging critique of Bernanke's attempt to force the US taxpayer to become the only holder of MBS in the world, the first deputy chairman of Russia's Central Bank had this to say of just how much credibility the rest of the world has in the Fed's balance sheet (which now soon will consist almost 50% of MBS and Agencies).

Ulyukayev also said the central bank had no plans to invest again in U.S. mortgage agency bonds.

"We have fully exited from them and we have no plans to go back," Ulyukayev said.

One by one, Bernanke is managing to alienate every foreign Central Bank.