Russian rouble hits near 2-year high vs euro/dollar

Only because the fed is currently holding a third of the national debt so there is no way they could get rid of those bonds if investors could get 2 or 3 times the return elsewhere. They have backed themselves into a corner. They have to unload their balance sheet before they can start using rates as an effective tool to fight inflation. They are starting up on rates but have to do it in weak sauce moves to keep from screwing up being able to get those bonds back on the open market. If they were to jack up rates too fast while holding that much debt, us treasuries would become junk bonds, the dollar would cease being the world currency, and the federal government wouldn't be able to attract any foreign investors.

 

NOPE. The US Treasury's total income was $4 trillion for 2021. If the interest rates on the national debt of $30 trillion were raised to 14% (as it is now in Russia) the interest on the national debt would be more than the total revenue brought in....$4.2 trillion. Do the math.

The Fed has artificially kept the economy afloat with fake interest rates.....fake so they can borrow from one pocket (the printing press) turn that into bonds they they themselves buy. It's really a joke. The only thing that has kept it going is two fold. First everyone else (except Russia) is manipulating their economies with fake rates. Second, and most importantly, the rest of the world still uses the dollar as the global reserve currency. The Petro dollar is the underpinning of the Fed's manipulation. And I believe the ill-conceived sanctions against Russia is the first domino to fall with regards to the dollar's status as the reserve currency. Anyone that uses the dollar is subjected to the jurisdiction of the United States when settling cross border transactions. That is now a liability.

 

Did someone use Covid to bomb, loot, murder, rape, and invade?
While I’m against mandatory vaccinations with vaccines that use new platforms and against mandatory masking, a lot of people did die from Covid. Even your bud poo-tin the sh!t-can implemented Covid measures and restrictions in Russia.

 

Using the dollar has always been a liability for much of the world because it made them prone to sanctions and it also gave the US the funds for our ongoing wars. I recall reading about a decade ago, that the third world was looking towards Russia to take the lead in destroying it.

Much of Russia's retaliation towards our sanctions, was switching to other currencies in trade. All transactions for gas and oil with China will be either in rubles and yuan, and with India in rubles or rupees. Russia even told their bank depositors not to convert any money to dollars or euros, but to yuan.

Since any payment to Russia in dollars or Euros in foreign banks can be stolen by the US or EU - as they have done, friendly nations are asked to pay either in their own currencies or in rubles. By doing this sanctions can also be avoided, since the payments can't be traced. Washington has really shot itself in the foot this time.

 

You are forgetting about the fact that Russians need dollars to pay for the privilege to use American inventions (intellectual property). Johnson and Johnson makes good pads and tampons to women. They also make baby diapers. Pretty much all modern electronics have at least some components for which the buyer had to pay to the US. When it comes to software - pretty much all good professional software comes from the U.S. or EU (SAP comes to mind). If your boyfriend wants to shave, he’d probably prefer Gillette shaving blades, which are American.
Nobody is forcing you or Russia to use dollars - just remove all those items from Russian market and they’ll be fully USD-free. Russians can always go back to the technology of 1980s, wipe their butts with newspaper, use cotton for women hygiene needs, and stop using diapers for their babies. Nobody is stopping them!

 

Oh my ... you're actually serious.

 

Here's something of interest. It's Russia's response to the American and European thievery of its assets.

Russia suggested Sunday that it could seize the Russian-based assets of countries it deems hostile in retaliation for a U.S. proposal to sell off Russian oligarchs' assets and pay the proceeds to Ukraine. "As far as companies based in Russian territory are concerned whose owners are citizens of hostile countries and where the decision has been taken" to seize Russian assets, "it is fair to take reciprocal measures and confiscate assets," said the speaker of Russia's lower house of parliament, Vyacheslav Volodin.

​

With the Russians is to play fair, or do not play.

 

They were going to do that from day 1.

 

I do not care about Russian oligarchs loosing their money in such a way. Anyhow these money, yachts, airplanes did not work for Russian economy.

 

Nobody cares here either except for the politically ignorant that thinks it makes them look stronger. The stolen assets, i.e. the seized assets, will not be sold off and the money sent to the Nazi Ukrainian government. Those assets will be tied up in court so long that the war will have long been over and the stupid-ass Democrats running this country will also be long gone. At some point in time, the Constitution and due process should come into play, either that or it's time to overthrow this government.

Furthermore, in about 6 months the US will have probably thrown away $100 billion into the cesspool of Ukraine. That won't sit well with sane-minded people voting in the midterm elections.

 

An overwhelming majority of Americans support weapons shipments. People are not stupid here and they know these weapons cost money. But it’s not all bad - more weapons would need to be made, which translates into a lot of well paying jobs. I’ve read that stingers are going to be improved because they haven’t been manufactured for over 10 years and some components are difficult to obtain. All of this means good jobs and even better weapons.

 

Exactly, US is very much interested in the war in Ukraine continuing as long as it is possible.

 

It will be over as soon as Russians learn Ukrainian language.

 

They'll wise up to the reality of Ukraine or remain ignorant. This is more correct than people would like to believe:

 

https://oilprice.com/Energy/Coal/Ch...inance-As-It-Buys-Russian-Coal-With-Yuan.html

Not a great trend.

 

Yep - Russia gets hooked to Chinese economy. Chinese don’t buy Russian oil for rubles - they use yuan. Could be a sign that it’s the future currency of Russia and its time for them to learn Chinese.

 

Do not think it is Russisn only trend, Dimon. US will sooner or later will trade in yuans and you will have to learn Chinese to get a job in the US.

 

I agree! The money the US and EU stole though was from the Russian government. Maybe Moscow is using the thievery of the oligarchs money as a means to restore Russia's reserve funds?

Other than that, it would create problems in the US and EU with the corporations over their losses - which is basically what Washington tried to do in Russia.

 

Thanks for the laugh, but no.

Btw, I used to agree with you, but they have too many serious problems.

 

Well, Soros is the largest land owner in Ukraine, not to mention his oligarch cronies who throw the big bucks around Washington. So why not give them our tax payers money to keep them happy and that way they can keep Pelosi and her ilk happy.

Ah yes, money, money, money, money!

 

https://thelawreviews.co.uk/title/the-real-estate-law-review/ukraine

Keep spreading your kooky, crazy, Russian propaganda, Jenny!

 

That makes a whole lot more sense then your non-statements like “what are you going to do if China raises exchange rate of yuan”, or “everyone is forced to use USD”, or “everyone can just stop using the dollar”.
Just because you don’t understand how the financial system of the U.S. works, and what the source of the American economic might is, doesn’t mean it’s going to collapse. I’ve been watching people waiting for dollar demise for as long as I can remember myself, yet, the buck is still here.

 

Isn't Saudi Arabia also using yuans? It's not a good trend for the US dollar, that's for sure. It means that there's going to be a lot of useless dollars floating around the world - and that ain't good.

As for Putin, I read that he wants to put the ruble on the gold standard and make it the most secure currency in the world, but Elvira Nebiullina the head of the Central Bank isn't so keen on it. I don't know if this is true or not.

(Sing to the tune of Row, row, row your boat)​

Washington's Money Machine

Turn, turn, turn the wheel

all the life long day.
​

So we can merrily, merrily,

merrily, merrily,
​

spend our life away.

- Jeannette​

 

Nope!
The Fed can just sell assets on its balance sheet, that it purchased during quantitative easing campaigns to remove excess currency from circulation.