Posted on 03/29/2022 5:34:56 AM PDT by JonPreston
The U.S. dollar was plunging against the Russian ruble as Russia and Ukraine negotiators completed a round of talks in Turkey. The dollar USDRUB, -11.05% fetched 85.13 rubles, down from 95 rubles, as reports from Russian news wires suggested some progress in the negotiations. U.S. stock futures
(Excerpt) Read more at marketwatch.com ...
“Traders are betting that something will be worked out. December crude oil traded as low as $85. So much for the fear porn that it would be $200 by then.”
Your oil is confirmed by AU, which has been zooming downward along with oil the last two days. AU also peaked at over $2000, back when oil peaked last month.
The lower the oil/natgas prices, the more Bad Vlad’s Tsarist fantasies end up in the dustbin of history.
Sounds about right.
You are unfairly employing logic.
There are a bunch of people who will try to figure out the arbitrage opportunity. If that were possible, you would see the Ruble rise (as people exchanged currency to purchase them) and you would see the gold price drop to meet the price that Russia is willing to sell.
Then, you would see people swing that gold around and sell it for the higher dollar price; Rinse and repeat.
I think that opportunity has probably left the station. But time will tell.
I think it would be more impactful if it were the Yuan and not the ruble.
“When the CCP tries to dethrone The US Dollar, then we will have problems.”
Surely you don’t believe the yuan as the new world’s reserve currency kookery?
Russia just found HUGE gold reserves last year. I know they are still in the ground, but it means they have some wiggle room.
I think this whole gold/ruble thing will be short lived.
Oil is going to tank the minute this war is over. Once oil tanks, Putin is in trouble. The high price of oil emboldened him. Lower oil will act as a constraint on anything he wants to do.
The Russian central bank setting the ruble gold peg so that that ruble is valued at what is was before before the war tells you they know other countries won’t go along with a phony higher value. THEY BLINKED.
Low IQ Joe is doing his best to remove the Dollar as the World’s Reserve Currency. Soon the Yuan will replace it.
“Oil is going to tank the minute this war is over. Once oil tanks, Putin is in trouble. The high price of oil emboldened him. Lower oil will act as a constraint on anything he wants to do.”
Indeed! Pooty Poot got higher and higher and intoxicated by huffing fumes from his highly priced Russian oil and gas. Very soon Pooty will be called, “The Man Who Fell To Earth” WITH a resounding thud. Then he gets deposed and hits #1 with a bullet or bullets. In a dark tunnel, just like Nicolae Ceaușescu and Elena Ceaușescu.
I agree.
It “sounds” like a sexy deal...but how would a western entity get the gold out of Russia? Or the dollars into Russia?
Sounds like a good way to lose your dollars and any gold you could buy.
P.S. In the ground doesn’t mean much. How much oil does Venezuela have in the ground? Did currency traders care and put out that value into their currency? No, it never works that way. How much oil, natural gas, and coal does the US have in the ground? Trillions of dollars worth. Should that get considered for the dollar?
“Surely you don’t believe the yuan as the new world’s reserve currency kookery?”
This all depends on CCP and Rooskie currency coordination and collusion. Also depends on the US getting weaker (under Democrat party rule) and CCP-China getting stronger — Economically and militarily.
So time will tell over the next 5-10 years
Kind of what I said. An ounce of gold in the ground needs to be dug up, refined, and assayed. Its not a cheap process and a bit more complicated than one would see on “Gold Rush.”
On a balance sheet, it would be considered as an asset—but not nearly at a retail price. There is no way to confirm what “is in the ground.”
Nope. China has a mercantilist export economy. That means they must have a weak yuan to beggar other countries. If the yuan was strong, they would lose a huge advantage to have stuff manufactured there by foreign companies, especially their two biggest customers, the US and the EU.
China has the largest gold reserves by far, they have lots of gold mining activity, and they keep their gold in China. China also has two huge secret gold mines where slaves labor. I believe this. This was reported by crypto guru Clif_High who has his videos at BitChute.
https://www.bitchute.com/channel/HBBwqdoMy7Gz/ .......
......and now back on youtube too.
If countries are able to buy energy resources in their own currency then that won’t be positive for the U.S currency. Russia has done it or seems to be willing to do this at this time. I’ll watch to see if any other energy heavy nation is willing to accept other currencies. I’ve heard of Sauds talking about accepting the Yuan. That hasn’t happened yet but the U.S has to be careful with sanctioning countries simply for abstaining at the U.N. or it may speed up a diversification. Middle East nations are starting to push back because of the Iran policy softening.
I used to read Clif’s stuff all the time. The last year or so, he’s kind of gone off the rails.
Its still fun...but, I’ve started to take his stuff with a grain of salt.
I will always be grateful to him for pointing me towards crypto back in the early days.
If China can get the yuan into a reserve currency status. Then it can keep the yuan low too. 5-7 years from now I will not be surprised to see the Yuan and the USD both as the world’s #1 reserve currencies. I don’t want to see this, but it can happen.
Pooty Poot’s Russian rouble is lame, it can only be enhanced by hitching a ride with the CCP Yaun. By Russian being subservient to China.
So the sanctions are not actually making the ruble rubble?
The ruble had already recovered a bunch from it’s low.
https://www.xe.com/currencycharts/?from=RUB&to=USD&view=1Y
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