Russia Is Doing It – Russia Is Actually Abandoning The Dollar (Thread #2)

Have you seen what the exchange rate of dollar to ruble has done over the last year? Is it Russia not using the dollar that has caused the Ruble to FALL in value, relative to the value of the dollar that has RISEN?
Or are you saying the value of the Ruble would have fallen even more, had they not switched to Euros?

Personally, I look forward to a time when the value of the dollar reflects the needs of international trade with the US, instead of the needs of trade AND investment around the world.

 

Even if you were correct, if Russia has decided to reject the dollar that is their choice. If tomorrow more countries decide to reject the dollar, that will be their choice as well.

If the currency of those countries go down in value because they reject the dollar, such is their choice,

The bad news is that "their choice" will affect the US at last.

I can tell that if Russia comes up after the transitional falling by rejecting the dollar and the US inciting economic boycotts against Russia as a retaliation, then other countries will take the adventure to reject the dollar as well.

Now, when the rest of countries have learned the weaker point of the US, it is when these other countries will take advantage of the situation. So far, Iranians are having what they want. If Iran decides to imitate Russia, then other countries in the East will follow it. India is another country which might consider the rejection of the dollar. The same Afghanistan might do the same.

The US will have to sell itself in order to survive.

This is why I posted before that the US must balance its budget and re-start manufacturing. Hell with those environmental dudes with their fake global warning. At this moment, five more countries rejecting the dollar can destabilize our economy to catastrophe.

The US must be ready for any economic attack of that kind. Selling itself is not the solution but re-establishing a sound internal economy.

 

Things changed over there between last quarter 2014 to first quarter 2015.

 

Nonsense, we will simply do what every other nation that doesnt have an international reserve currency does. Absurd to think the US economy cant survive without having the reserve currency of the world, when nations economies around the world survive just fine without such reserve status.

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LOLOL They are talking about the first quarter of 2015 einstein.

 

Yes. From around February, the ruble was gaining value relative to the dollar until mid-may. From then it's been losing value..

I would say the ruble's falling mainly due to low oil prices, Russia's high inflation, sanctions, and, perhaps most importantly, its central bank's build-up of reserves.

. As for the overall effect, I couldn't tell you how much I couldn't say exactly how great the effect is due to multiple factors affecting the exchange rate.

 

Bravo! They tell tales to scare children and old women. The sky is falling! The dollar is collapsing! The CO2 is rising! Sasquatch is chasing my mom! Nukes wiped out Mars!

They need to take a pill and relax. Being that high strung will cause heart attacks,

 

But what is wrong with their own currency? I don't care if they reject the dollar or not, but does their own currency have so little value they have to always use someone else's?

 

Milo.....

Wasting your breath.....uh I mean your fingers typing. 95% of the posters I've read here know squat about economics, monetary or fiscal policy, and other factors at play. Many like to make bold statements, but really have no clue.

And unfortunately, every time Janet Yellen opens her yap, true market driven economics goes swirling down the toilet.

 

Actually its LOST value in the year since abandoning the dollar. THAT is the effect upon our exchange rate. No worries.

 

(yawn) 1947, US debt to gdp ratio, 120%

 

It's fluctuated.

 

AND it DECLINED in value. Not sure of your point. The last year has DEMONSTRATED that we dont need to worry about Russia abandoning the dollar and effecting the exchange rate. The tendency of Russia doing so to reduce the value of the dollar is so insignificant, that other factors have caused the dollar to actually increase in value in relation to the Ruble. And switching to the Euro didnt even produce what would be expected, an increase in the value of the Euro in relation to the dollar. Precisely the opposite has occured.

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AND it DECLINED in value. Not sure of your point. The last year has DEMONSTRATED that we dont need to worry about Russia abandoning the dollar and effecting the exchange rate. The tendency of Russia doing so to reduce the value of the dollar is so insignificant, that other factors have caused the dollar to actually increase in value in relation to the Ruble. And switching to the Euro didnt even produce what would be expected, an increase in the value of the Euro in relation to the dollar. Precisely the opposite has occured.

 

Except the value of the dollar has INCREASED. Precisely the opposite of what you imagined.

 

It doesn't matter much the value of a currency compared to other currencies. What happens is that countries prefer currencies that are more accepted internationally, so they can use them to make other trade transactions.

The high value of a currency won't be a requirement but to be solid and with acceptance by most of the countries.

 

This is the game the US does.

It makes new contracts exchanging other countries goods by US military equipment, training, selling "technology" and similar.

The other countries must pay with oil, gold, metals, food, and similar.

When the contracts are made, like the recent ones with China, then the US manipulates the value of the dollar.

Doing so, the amount of goods from other countries must be increased to reach the new value of the dollar, while the services and goods from the US will continue having the same monetary value.

At the end, the US makes more gain.

But, in times where third party countries end the contracts or trade deals, decide to make trade with countries other than the US, here is when the US low the price of the dollar to make the US products competitive in the market.

This is a financial game where the US investors are experts and find the way to corrupt politicians from other countries in order to set deals favoring the US companies.

This is why, -as an example- a decade ago the US allowed Japan to buy US lands at high price when real estate was inflated. After the balloon was pinched with a needle, the Japanese investors lost great quantities of money, while the land -even in foreign hands- always stays in the US and is sold at cheaper price commonly to US investors.

With a cheaper price of oil and a higher price of the dollar, the US is obtaining more oil. The lowering of oil prices and natural gas was made also to hurt Russia, because Russia needs more profit from their natural energy sources.

This increase of the value of the dollar will last until Russia is down to its minimum. But if Russia recovers, then the loser will be the third party countries, which are suffering like Russia, the rules of the game played by the US.

For this reason, Russia is evading the use of dollars with the intention of stopping the manipulation imposed by the US to other countries of the world.

Like I said before, just five more countries imitating Russia and we are done. The best is start manufacturing back our own products and balancing the budget. So far, the former president of Afghanistan prefers a solid and powerful Russia rather than the help of the US. He is not crazy, he also has experienced what is to make deals with the US and how inconvenient is for them having the US for trade purposes.

On the other hand, the US is doing what any empire does in order to keep the leadership: To impose its power over other countries.

 

It was the expected side effect after WW2.

The current GDP ratio to debt is 101% in time of peace.

Houston, we have a problem....

 

71% if you don't count what our checking account owes our SS savings account. Austria, UK, Canada, France, Iceland, Spain, Belgium, Ireland, Portugal, Italy, Greece and Japan all have higher levels of debt.

 

Have no idea what you are babbling on about here. China is the one who manipulates the value of their currency. The value of the dollar has INCREASED in relation to the Ruble. The value of the dollar has INCREASED in relation to the Euro.

 

So how many million Rubles is the exchange rate to the Dollar these days anyway?

 

But... does all this make it possible for China... to put pressure on North Korea.... to make the deal work?

Jim Rickards adds some interesting info on all this here:

FORGET IRAN, IRAQ, UKRAINE
THIS IS WHERE WWIII STARTS...