Posted on 03/26/2022 1:04:15 PM PDT by arthurus
Removing Russian banks from SWIFT but leaving the energy intact so Europe has power, was so brilliant they obviously never played chess. Putin just put Biden’s king in check by ordering Europe to pay for gas now in Rubles. That will provide support for the Ruble, and undermine Europe and its Euro as well as the dollar in the long run.
(Excerpt) Read more at armstrongeconomics.com ...
Not really because they have contracts. And the contract says payable in USD (or Euros in some cases).
Like Putin’s not going to take Euros.
Contracts can be amended. Russia has oil, gas, diesel, fertilizer products, nickel, palladium that the world needs. Not sure how this plays out except China making a ton of money.
Why would Russia feel obligated to honor any contracts with those countries that seized Russian assets?
Is the USA likewise required to pay in rubles?
Yup—everything becomes negotiable—and the player with the most raw materials wins.
Checkmate.
Because they want to sell their gas/oil. It’s a two-way street.
The contracts mean nothing at this point, if Russia demands payment in Rubles, then no one gets gas unless they pay in Rubles.
Since the entire Western World has frozen Russian Assets, including all the US Dollar reserves, it’s only logical that Russia would demand payment in some other currency.
And if Russia doesn’t sell their gas/oil they get $0. Sure Europe suffers but so does Russia they really don’t have other income sources.
But one thing is certain. Trump was 100% right.
And russia doesn’t get any money if they don’t sell gas. To me it’s win-win.
Europe pays the price for trying to go green. And Russia doesn’t get any $$$.
Except if China buys all their oil...
He’s not going to take Euros if he’s cut off from accessing them, like he is now.
Ha. Not going to happen. At least not at market prices. Plus China probably has other contracts they have to honor where they must take in so much oil/gas.
You are forgetting China could buy all the oil Russia has for sale.
I agree with Armstrong, this is likely to be a major miscalculation on the part of the idiot Biden administration. A lot depends on what China (and to a lessor extent other countries) decides to do. All Putin has to do is threaten to withhold gas & oil until his conditions are met or much of the world including Europe heads into an immediate economic depression.
Right keep thinking contracts mean anything, given all the sanction that have been placed on Russia, which broke every contract out there.
Well, India is not willing to leap off the cliff and they are buying. So is China. Since oil if fungible it is merely a question of what sort of discount to international prices the Indians and Chinese are going to get. Russia loses. But so does everyone paying the higher non Russian sourced oil prices.
India and China are buying Russian oil—only the two most populated countries on the planet...no big deal...
;-)
In the real world Europe will buy Russian oil—they will just lie about it so the mass media brainwashed dupes can feel good about themselves.
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