Posted on 04/03/2022 7:54:44 AM PDT by marshmallow
Late last month, Russian President Vladimir Putin warned if gas buyers from "unfriendly" states refuse to pay for fuel in rubles, Moscow would consider it a breach of contract.
Kremlin spokesman Dmitry Peskov has said that a ruble payment scheme that Russia currently uses with gas would be extended to new groups of goods in the future. In an interview with the broadcaster Rossiya 1, Peskov said that Russia's European counterparts will pay for gas in the same currency that is indicated in their contracts, but that the final payment will go to the Russian energy giant Gazprom in rubles.
"Thus far, this has been a prototype of the system. But I have no doubt that in the future it will be extended to new groups of goods. And it will occupy more and more space in our foreign trade relations", Peskov stated. The Kremlin spokesman added that Europeans will need to open ruble accounts and that this "will be done".
"Russia values its reputation as a reliable supplier. Of course, we will not do anything that will undermine this reputation. Therefore, everything will be fast, clear, [and] understandable. But this must be done. These are the new rules, [and] they must be followed. I reiterate that for European companies, nothing de facto will change. De jure, it will be a different system", he said.
Referring to the anti-Russian sanctions, Peskov explained that President Vladimir Putin's recent decision on ruble payments for gas supplied to "unfriendly" countries was made so that Russia would not be deprived of the dollars and euros that were earlier paid for the fuel.
(Excerpt) Read more at sputniknews.com ...
BRICS suck. Long live Petrodollar fiat.
Brandon is deliberately inflating the petrodollar to oblivion.
Putin sees an opportunity to replace it.
Fighting inflation by making the whole petrodollar world pay for build back better. What a plan.
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RUSSIAN CITIZENS ARE TAKING ACTION AGAINST UKRAINE WAR
In recent days, cases of deliberate arson of cars of Russian military and officials have become more frequent.
In particular, recently burned cars of military personnel of the 95th brigade (Gorelovo, Leningrad region) and 82nd Radio Engineering Brigade (Vyazma, Smolensk Region).
The Russian military reports threats of physical violence if they agree to participate in the war against Ukraine.
ADDENDUM:
That night, cars belonging to employees of the FSB Special purpose Center (military unit That night, cars belonging to employees of the FSB special purpose Center (military unit 35690, Balashikha, Moscow region) burned down.
The owners of the cars were representatives of the leadership of the FSB DSP. The video shows that at least four cars caught fire at the same time.
In recent days, cases of deliberate Arsen of cars of R35690, Balashikha, Moscow region).
The owners of the cars were representatives of the leadership of the FSB DSP. The video shows that at least four cars caught fire at the same time.
https://t.me/informnapalm/6091
IMHO, neither China or Russia want to replace it. They just want to damage it. The fiat US dollar system, for now anyway, gives the USA its military strength, gives it great diplomatic influence, and gives woke globalists and central-planners in DC their power.
Russia has Antifa there, too? ... Who knew?
Maybe Russian TV Reality Shows will put their "interrogations" on Pay Per View, and we can watch 'em over here.
Those sound like reasons to replace it.
If the Petrodollar goes so does the value of our dollar. A worthless dollar wrecks our entire economy. We lose China (and Russia) win.
Why, do you think they are stupid? Having the world reserve currency gives a nation a great deal of economic clout.
Russia will slowly sink. They don’t produce or make much the rest of the world needs or wants except for oil, gas and fertilizer. With Pres. Trump back in office we’ll cut China off from our stock market and inward investment by American owned business. This will financially squeeze China, crush their ability to develop a stronger military. They’ll get aggressive with Russia as they try to steal natural resources. That conflict will cause our Dollar to grow in value.
Having THE world's reserve currency is a great burden as well as great benefit. An economist named Robert Triffin explained that as other countries in the world use your currency, you must supply the that currency to them, and that is done through permanent trade and current account deficits. You also must be politically, militarily and ideologically tied to them to maintain the system and "keep everyone on the plantation." America's export of its industry, its global military footprint, our massive debt, and our corrupt, woke, statist uniparty in DC are all direct consequences.
IMHO, neither Russia or China could construct such a system. Their immediate goal, I believe, is rather to weaken/destroy the US dollar primacy, which would weaken US global military and diplomatic influence, giving them and their regional blocs more power. The USA is still a huge power which will certainly continue to dominate the Western Hemisphere and probably Western Europe as well. Russia and China (and India) want more room to maneuver in their own areas and the 3rd world.
If the US, India and Brazil can unite China and Russia can’t win!
Russia is a 3rd world economic power. The G20 countries combined GDP’s is 70 trillion dollars. Russia is 1.4 of that. Their oil and gas exports are about 1/4 of one percent of US DOLLARS TRADED WORLDWIDE. They have no real influence over the dollar, ZERO.
“An economist named Robert Triffin explained that as other countries in the world use your currency, you must supply the that currency to them, and that is done through permanent trade and current account deficits.”
Why “must” you supply? Who’s putting a gun to our head?
It doesn’t “must” anything. What it does is turn the dollar into the equivalent of gold, which used to be the reserve currency. And since we can print as many dollars as we want, that printing press becomes the equivalent of a gold mine.
And since everyone wants gold (the dollar) it’s very tempting to print ever more “gold” and exchange it for goods from other countries, which does lead to a trade imbalance, but only if you don’t count dollars as an asset.
The upshot of our trade imbalance is that it funds our budget deficit and all the welfare programs that the deficit funds. So we should thank China for that. So it’s not so much a must that we have to print more “gold” as much as giving in to temptation and irresponsible behavior on our part.
Russia is making a smart move in this regard, but they’re a relatively small economy. The ones that could cause us some serious headaches would be if China were to implement the same policy.
This statement makes no sense. The reason anyone wants gold is because it can't be "destroyed," its scarce and supply is quite constrained.
The US economy has many strengths, but who will want USD if they can be printed at will by US politicians, controlled by increasingly political banks, or seized in sanctions?
“The reason anyone wants gold is because it can’t be “destroyed,” its scarce and supply is quite constrained.”
And in today’s fiat currencies the dollar is the closest thing to gold. So it’s a question of the relative worth of the various currencies. Would you rather have your bank account in Yuans and Rubles or Dollar?
But you didn’t answer the question as to why we “must” print more dollars. Must means you don’t have a choice.
Triffin's dilemma isn't about "printing dollars," per se. Rather, his point is - if you wish to have a world reserve currency, then there must be a supply of dollars for the world to hold. Where do those dollars come from? From constant trade and current account deficits. Its a "dilemma" because, as we are seeing in the USA, such a situation can't be maintained forever.
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