Posted on 03/30/2022 4:31:12 PM PDT by PK1991
Well, the Rooskies are apparently talkin’ Grams.
Thanks.
“Russia just wiped out about 30 percent (30%) of the US dollar worldwide when it comes to gold ingots.
People all over the world are literally throwing their money on the ruble and throwing away dollars and euros to do it. What Russia just did is the financial equivalent of detonating a nuclear bomb. “
Ok, this one is the funniest out of all the death of the dollar articles. I don’t know if this guy is coming down from an acid trip while writing this or he just thinks his readers are just very dumb.
6.2 trillion (yes, trillion, the one with the T) dollars trade daily. Russia Gross Domestic Product is about 1.5 trilion annually. They export roughly 500 billion. The ruble is a spit in the ocean. It is a gnat on an elephant’s behind. Stop with the kookery that it matters. It does not.
Good catch...ya beat me to it!
Pretty good idea on Putin’s part.
OK..I admit I skimmed over the article.
Shouldnt do that on here because someone will attack a person for noting these days.
Can hardly have a valid honest discussion without a war of words anymore.
And THAT pisses me off.
Russia has only $125 billion of gold. YAWN!!! Americans spend $100 billion on pet supplies and food.
Well, it’s a smart move to collapse fiat currencies that are overdue for a collapse.
The problem is Russia’s ruble is a fiat currency. They have to have enough gold to cover their M2 money supply of about 70 trillion rubles.
Gold is right now calling for about 162,000 rubles per ounce of gold.
So they need 25,000,000 pounds of gold to cover their currency. Or 12,538 tons.
They have 2300 tons.
That means they’re short on gold or their ruble is overvalued by a factor of five.
Doing some quick and dirty math they have 73,600,000 ounces of gold and 70 tn rubles.
That works out to 951,086,956 rubles per ounce of gold on hand.
Seems to me the Russians are screwing themselves here.
Ok, this article is crazy. The ruble’s peg to gold changes the value of the ruble. Gold and the dollar have the same relative value. Nothing changes between the dollar and gold. The dollar is still about 1/1927 per gold ounce. The ruble on the other hand will float up and down with gold which has moved between 1700 and 2100 dollars. But its up a lot from the year 2018 when it dipped below 1200 an ounce.
With US interest rates going up, the dollar should push gold down. As it does not pay interest. So holding gold will not be a good investment while the fed is moving against the money supply and inflation. If more countries with bigger economies do this, like China, it would start to sink the dollar. But don’t expect it. China sells to the US and a very strong yuan relative to the dollar would make all Chinese products too expensive.
But this is very good for Russia because Russia has gold mines and gold reserves. So they can more easily handle the fluctuations. And they shield themselves somewhat from the American forces which have been trying to sink the ruble.
Russia has only $125 billion of gold. MORE YAWNING!!! Americans spent roughly 300 billion in 2021 eating out at burger and pizza fast food places.
There was a big scandel in Russia recently that the central bank was selling their gold in London.
This guy is reasonably intelligent. Its a broader view not just Russia and Gold. “We are witnessing the birth of Bretton Woods III – a new world (monetary) order centered around commodity-based currencies in the East that will likely weaken
the Eurodollar system and also contribute to inflationary forces in the West. A crisis is unfolding. A crisis of commodities. Commodities are collateral, and
collateral is money, and this crisis is about the rising allure of outside money over inside money. Bretton Woods II was built on inside money, and its foundations crumbled a week ago when the G7 seized Russia’s FX reserves…” https://static.bullionstar.com/blogs/uploads/2022/03/Bretton-Woods-III-Zoltan-Pozsar.pdf
“Ok, this article is crazy. The ruble’s peg to gold changes the value of the ruble.”
You notice the Russian central bank wasn’t kookoo enough to set the gold peg to anything other than the ruble”s recent value else they would just get laughed at by the whole financial world.
A couple of questions.
1. Does Russia have that much Gold on hand?
2. If I can buy 100R for a dollar will Russia allow me to then buy Gold for 140,000R per ounce?
I think the answer is Nyet to both.
They have oil and many other resources. If Russia and the world transition to pegging currency to a basket of commodities there is plenty of backing correct? That’s what Zoltan Poznar sees as the new monetary system coming.
As soon as I saw that 28 g/oz silliness, I knew the author was clueless. The rest of the article bears this out.
Exactly. Does Russia have the gold reserves to actually back the ruble?
Thats all sounds wonderful if you dont know anything about this. I see this was posted on Bullion Star. Well how about that, a shill for precious metals site yapping about the death of the dollar to con suckers into buying what they have to sell.
Nixon bought more than five decades with the petrodollar.
Now it is time for the reckoning.
“There are decades when nothing happens; and there are weeks when decades happen.”
V. I. Lenin
Putin is doing the laughing—all the way to the bank.
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