Russia's ruble worth less than 1 cent after West tightens sanctions

[Han Patriot]

It is more alarming to me that now US has less incentive to rein in its own inflation. I think ruble is fine as long as their central bank doesn't start printing.

What people don't understand is the Ruble depreciated in a dollar based system, internally, the people are still buying bread with ruble and at roughly the same price since bread and other essentials are produced in Russia. If Russia needs foreign goods, China will be there, I reckon Chinese companies will take over western market share in Russia.

 

[Tshering22]

It is estimated to start at 5% on top of existing 9%. It will eventually catch up to currency value. Given that the sanctions are likely to stick around, I'll expect more depreciation to come.

The Soviet Ruble was worthless outside USSR. That didn't stop them from revaluing. Most likely Russia has triggered a return to gold--or-resource backed currencies. I know what you're talking about Russian slide. But they have so much of mineral wealth that they can sit on it and take their own time. The growing economies will definitely trade with them even after we develop.

The sheer scale of assault from all sides including private companies such as EA Sports (video game company) to Judo Association will only alert the world about the danger of depending too much on anything western. Hence why a 3-pronged world order is emerging: One side is the US-UK Axis, the other is the China-Russia-Iran grouping and the third are other countries that will just mind their own business.

 

[Wood]

The Soviet Ruble was worthless outside USSR. That didn't stop them from revaluing. Most likely Russia has triggered a return to gold--or-resource backed currencies. I know what you're talking about Russian slide. But they have so much of mineral wealth that they can sit on it and take their own time. The growing economies will definitely trade with them even after we develop.

The sheer scale of assault from all sides including private companies such as EA Sports (video game company) to Judo Association will only alert the world about the danger of depending too much on anything western. Hence why a 3-pronged world order is emerging: One side is the US-UK Axis, the other is the China-Russia-Iran grouping and the third are other countries that will just mind their own business.

This gold backed currency is a Youtube fantasy. Modern world economy is debt driven inflationary growth, those without fiat currency will simply be left behind. Not being able to print money is not an option for any central bank.

We'll see how well the sanctions are enforced by Europe. Based on what's on paper, Russia will not be able to export much outside China. Russian ships and flights are blocked. It may continue to be that way until there is some level of preliminary settlement on Ukraine.

 

[Turingsage]

Does it matter between 30% in a single day and in 30 days? It is not like ruble is dropping 30% every day.

So when will the rouble be stable ? 30 days , 30 months , 30 years, 30 decades ?????????


But do point out when the Canadian dollar fell 30% in 30 days.

Since you are now walking backwards , you obviously have evidence of that 30% fall in 30 days.

Could you point out when THAT WAS.

 

[nang2]

So when will the rouble be stable ? 30 days , 30 months , 30 years, 30 decades ?????????


But do point out when the Canadian dollar fell 30% in 30 days.

Since you are now walking backwards , you obviously have evidence of that 30% fall in 30 days.

Could you point out when THAT WAS.

First of all, why do you want a stable ruble so badly? And check its exchange rate against USD in the last 10 years. It looks even more stable than Euro and Canadian dollar. How stable do you really want it to be? So far, within one week, ruble has fell 24%.

Second of all, when I brought up Canadian dollar, I didn't refer to it as falling 30% in 30 days. I only meant it has fell about 30% within a short period of time. Particularly, between Sept and Oct 2008, it fell 25%. And, unlike Russia, Canada has NO GOLD RESERVE!

 

[mhosein]

It's amusing how when a country is subject to sanctions, it gets crippled. Like Zimbabwe.

But here we are, Russia is continuing it's military campaign, despite the economic sanctions, which if I may add, Russia has been subjected to nearly a decade.

The more countries around the world liquidate their dollars and switch their Reserve into Gold and/or currencies other than the American dollars. We will witness America's economic clout diminishes further. Independent countries ought to learn from Russia, who has been steadily building their Gold Reserve

 

[CAPRICORN-88]

Nothing has changed inside Russia.
No bank run nor empty food shelves.

OK Just don't buy foreign goods.

The 100 odd sanctions imposed by the US and allies since the Cold War have taught the Russians not to be too dependent on them.

Hence the impact is insignificant, speculative and to many of us, mere propaganda.

Putin knew ahead and prepared for all these before he embarked on Ukraine.

BTW Russia is the world biggest producer of wheat and Ukraine the 2nd.

With gas skyrocketing it will be disastrous for EU as far as inflation goes.

See who has the last laugh.

 

[Turingsage]

First of all, why do you want a stable ruble so badly?

That's the problem with talking or even debating with morons.
When you point out the flaws in their prejudiced diatribe propaganda with actual facts, they change the subject and start another argument based on their own brain fart plucked out of the thin air.

 

[nang2]

That's the problem with talking or even debating with morons.
When you point out the flaws in their prejudiced diatribe propaganda with actual facts, they change the subject and start another argument based on their own brain fart plucked out of the thin air.

For the record, I don't like people who have foul mouths.

 

[Tshering22]

This gold backed currency is a Youtube fantasy. Modern world economy is debt driven inflationary growth, those without fiat currency will simply be left behind. Not being able to print money is not an option for any central bank.

We'll see how well the sanctions are enforced by Europe. Based on what's on paper, Russia will not be able to export much outside China. Russian ships and flights are blocked. It may continue to be that way until there is some level of preliminary settlement on Ukraine.

And you really think that Putin may not have factored it all in? Clearly there is something he is trying to achieve here more than what we know here. Europe is equally in trouble with Russian exports contrary to what the media is saying.

If you go by media reports, Europeans appear like a self-sustaining entity that generate resources out of thin air. Just like how Zelensky is made to appear as if he's 1 Km away from Moscow, yelling and waving his sword as the Russians run away in terror. . The reality is far from it.

Yes, sanctions are a big hit to their economy, but not a Russia destroyer. Azerbaijan, one of the top suppliers of gas and oil signed an alliance pact with Putin just within this week. Qatar put its hands up saying that it can't supply gas at the rates that Russia gives, and Saudi has ruled out pumping more oil, especially at Russian rates.

Ukraine and Russia collectively supply 30% of the world's wheat, most of which goes to the European baking industry. With Ukraine in Russian control, where do you think that would go? Sunflower oil, fruits, berries.. yes, Asia can supplement some of it, but that's already happening. The price for additional demand will be much higher apart from the cost of transporting them. This means you'd be better off getting it rather from Ukraine-and-Russia combo.

Russia exports some of the finest quality of lumber, processed and otherwise for construction, furnishings, etc. Where will the Europeans get it from? Tanzania? Americas? At what price? Did I talk about the tonnes of resources, processed or otherwise, that Russia exports to Europe? Alrosa for example, is the biggest supplier of raw diamonds to De Beers.

CAATSA is applicable only on defense goods; not commercial trade. Other countries will continue trading with Russia for commercial trade. No one would accept to cut all their trade with Russia just to appease one side except the ones that are already integrated into western ecosystem like the Caribbean or the smaller Central & South American economies.

Do you really think that countries like Turkey, us, Indonesia, Thailand, Korea (yes South), entire Africa (growing rapidly), Brazil, Argentina, Chile, Colombia, Peru, etc., will stop trading with Russia? Come on, man.

There is a bloody reason why Macron is doing his nut to try to negotiate a deal apart from the desire of becoming EU's leader. The Europeans are realistic about trade with Russia and knows that sustaining only on the basis of American support won't work.

 

[Tshering22]

It's amusing how when a country is subject to sanctions, it gets crippled. Like Zimbabwe.

But here we are, Russia is continuing it's military campaign, despite the economic sanctions, which if I may add, Russia has been subjected to nearly a decade.

The more countries around the world liquidate their dollars and switch their Reserve into Gold and/or currencies other than the American dollars. We will witness America's economic clout diminishes further. Independent countries ought to learn from Russia, who has been steadily building their Gold Reserve

Kuchh Zyada ho gaya, bhai. . Not happening so fast. De-dollarizing at that scale would take a lot more. Most countries don't want to get involved in this fight and are keeping away from taking sides like you and we did. We don't want to get involved in a fight that is thousands of miles away. Also, a lot of developing countries still need to trade well with the developed nations.

The interim steps that many countries can do is to build their EURO reserves. But EUR is not as safe as USD. In fact, after Brexit, that fear has become worse. I doubt many countries would switch to RMB so soon. Some might, but it will take a lot of time before what you say, happens.

 

[mmr]

Good. We can use it as toilet paper in future lol.

 

[mhosein]

Kuchh Zyada ho gaya, bhai. . Not happening so fast. De-dollarizing at that scale would take a lot more. Most countries don't want to get involved in this fight and are keeping away from taking sides like you and we did. We don't want to get involved in a fight that is thousands of miles away. Also, a lot of developing countries still need to trade well with the developed nations.

The interim steps that many countries can do is to build their EURO reserves. But EUR is not as safe as USD. In fact, after Brexit, that fear has become worse. I doubt many countries would switch to RMB so soon. Some might, but it will take a lot of time before what you say, happens.

Kuch ziyada nahin, Pakistan mein to Kuch bhi nahin huwa.

De-dollarization should be on Pakistan's priority list, the same as initiating the establishment of a Gold Reserve.

It's either that, or you can keep living under the thumb of American Imperialism.

Actually, the "kuch ziyada ho gaya" is the decades Pakistan has been wagging it's tail around like a mutt on a leash, under Western sanctions and Western political meddling.

 

[CAPRICORN-88]

The plan to enter Ukraine and perform a regime change has been in place since a democratically elected pro-Russian President Yanukovych was illegally ousted in a color revolution that was hosted and funded by a foreign power.

It was just Minsk I then Minsk II that were signed by Ukraine that Russia decide not to act.

When Zalensky refused to attend the Feb 11 meeting to meet up with the leaders of the three breakaway provinces to discuss about compliance to Minsk II that Putin lost his patience and decide to raid Ukraine including Kiev.

But then the timing was not right as the Beijing Winter Olympic will steal the limelight. He needed an excuse to enter Dombass, Lugansk and Donetsk.

The US wanted to use Ukraine to stop Nordstream II but but the certification was still proceeding.

So they need Ukraine to sanction Russia and halt the Nordstream II.

So as the behest of a superpower across the Atlantic, the neo Nazi fraction of ghe Ukrainian Army ordered artillery attacks on Dombass that begins on the Feb 21.

That was the very reason Russia needed. To protect the 3 breakaway Republics.

Putin was fully aware and was prepared of the responses by the US and the West.

 

[beijingwalker]

And you really think that Putin may not have factored it all in? Clearly there is something he is trying to achieve here more than what we know here. Europe is equally in trouble with Russian exports contrary to what the media is saying.

If you go by media reports, Europeans appear like a self-sustaining entity that generate resources out of thin air. Just like how Zelensky is made to appear as if he's 1 Km away from Moscow, yelling and waving his sword as the Russians run away in terror. . The reality is far from it.

Yes, sanctions are a big hit to their economy, but not a Russia destroyer. Azerbaijan, one of the top suppliers of gas and oil signed an alliance pact with Putin just within this week. Qatar put its hands up saying that it can't supply gas at the rates that Russia gives, and Saudi has ruled out pumping more oil, especially at Russian rates.

Ukraine and Russia collectively supply 30% of the world's wheat, most of which goes to the European baking industry. With Ukraine in Russian control, where do you think that would go? Sunflower oil, fruits, berries.. yes, Asia can supplement some of it, but that's already happening. The price for additional demand will be much higher apart from the cost of transporting them. This means you'd be better off getting it rather from Ukraine-and-Russia combo.

Russia exports some of the finest quality of lumber, processed and otherwise for construction, furnishings, etc. Where will the Europeans get it from? Tanzania? Americas? At what price? Did I talk about the tonnes of resources, processed or otherwise, that Russia exports to Europe? Alrosa for example, is the biggest supplier of raw diamonds to De Beers.

CAATSA is applicable only on defense goods; not commercial trade. Other countries will continue trading with Russia for commercial trade. No one would accept to cut all their trade with Russia just to appease one side except the ones that are already integrated into western ecosystem like the Caribbean or the smaller Central & South American economies.

Do you really think that countries like Turkey, us, Indonesia, Thailand, Korea (yes South), entire Africa (growing rapidly), Brazil, Argentina, Chile, Colombia, Peru, etc., will stop trading with Russia? Come on, man.

There is a bloody reason why Macron is doing his nut to try to negotiate a deal apart from the desire of becoming EU's leader. The Europeans are realistic about trade with Russia and knows that sustaining only on the basis of American support won't work.

Russia is not highly dependent on trade, Germany , Netherlands are