Good point...ruble is up 8% today in actual trading.
Posted on 03/23/2022 7:47:44 AM PDT by Oldeconomybuyer
No country has the Reserve Status of the US Dollar which doesn’t allow them to be so negligent with their currency
It is human nature to manage the past.
If you read my posts you’ll see I’ve consistently said the US could lose its reserve status, for well over 100 years I don’t know of countries that trade via barter, it may happen in the future but it’s highly unlikely IMO
“The overconfidence is astounding.”
By McFaul?
Of course. A brilliant move by Putin. I was thinking about it since day one.
He can up the pressure by demanding payment in rubles for all commodities.
Russia is the world’s #1 exporter of wheat.
However it creates a problem for Biden how is going to exchange his 10% Roubles in dollars?.
The Saudis already want yuans for oil.
Possibly Putin was honoring existing futures contracts, and even extending (on new contracts) historically lower pricing to Eastern European Nations on good terms or neutral to Russia.
Nations signing on to Biden's GloboHomo "Sanctions" would violate payment terms of those contracts.
it may happen in the future but it’s highly unlikely IMO
Bartering grows in uncertain times. I am not saying it is one or the other.
Again, my major point is bartering is a relationship. Whether it is us as individuals or countries. Putin is going for relationships.
We are going to need people, not money in the bank in the coming difficult times.
Investing in people is not without risk...............
No, I don’t think it is about “honoring” — he is on a firm legal ground, international law is already dead.
As a guess (and I’m not an economist!): he was waiting for the excess amounts of dollars and euros in Russia to be removed from the circulation... measures for this were taken immediately. The effect was stabilization of ruble (which is traded only inside Russia!) — now it is 95 to USD, up from 150.
https://www.xe.com/currencycharts/?from=USD&to=RUB
watch this chart.
BTW, the Austrians (OMV) announced that does not matter what Putin says they are going to continue paying in euros... we’ll see...
Barter between individuals yes, I could see that happening, barter between Nations I don’t ever expect to see that.
We would be exchanging gold before that would happen.
Think about it, how many different items the USA imports every day, it would nearly be impossible to negotiate barter agreement to cover everything on an ongoing basis.
You keep talking about relationships, the problem is the people change on a regular basis making barter between nations impractical if not impossible.
This is a short term stunt that will blow up in their faces longer term. They just cut themselves off from a large amount of US dollars and Euros. The yuan is pegged to the dollar. Others countries want dollars and euros, not their 3rd world bleephole currency.
Good point...ruble is up 8% today in actual trading.
You keep talking about relationships, the problem is the people change on a regular basis making barter between nations impractical if not impossible.
Bartering is maybe not the best word but it speaks well.
And yes, countries do have relationships. short and long term and constantly changing.
They will do just fine, you will see.
They will be smoking cigars watching Europe disintegrating. And then the rest of the West.
Countries do have relationships, but they trade in currency.
Putin has options to trade, like I said earlier, they have China and the other BRICS countries and establish another from of trade without the SWIFT system.
Yup, I do believe all these sanctions are going to just awesome for Russia. Why? Because of the screeching hussy fit Putin threw, threatening to nuke everyone, when we first threatened to place them. /sarc
but they trade in currency.
I realize that, but there are no situations where countries bartered for at least 100 years. Venezuela today doesn’t barter even though their currency is worthless, they might barter with 1-2 countries like Russia and China because they want military access. Think of Cuba, they have currency that no one wants and they trade with virtually no one.
Even Germany in the 1920s and 30s traded in currency even when inflation was causing people to carry wheelbarrows of money to buy food.
Bartering works between people not countries.
You misunderstood.
No fit, not the first time he warned Biden that this may lead to US being taken off the map, and he means this too.
The important thing is that Biden understands this.
And the demo of the new weaponry systems in the Ukraine was meant for Biden. Judging by his words, some of it did get through.
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