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

Yup! It devalues the currency. And that's exactly what China wants.

 

1. If weak dollar was in the interest of China, it would raise yuan.
2. The Fed has a range of tools at its disposal that it can use to control quantity of currency in circulation.
3. Chinese are not doing this to hurt the US - they are trying to shield themselves from some potential future sanctions.

 

I wrote the list of what Russians believe on Saturday. On Sunday Lavrov added one more item to that list: Hitler was a Jew and Holocaust was pretty much Jews killing other Jews. If their long-time foreign minister openly said that, then it’s a sure sign that that view is common in Russia.

 

You don't say!

Hopefully you're not just now realising this

 

These kids are about a decade behind the game.

Thank their manipulative, obfuscating, propaganda-driven Western MSM.

 

I said none of those things, so you might have me confused for someone else.

Meantime, sure .. the dollar will remain global reserve ... until it isn't. Before COVID came along we'd never had COVID, either. What kind of argument is "but this new thing hasn't happened before, so how can it happen now?"

And it doesn't matter what worked in the PAST (for the US fiat dollar), the world has shifted beyond return. The writing has been on the wall for years - and you could have read that writing had you been interested enough to pay attention.

 

Currency is not Covid. Fed has many tools to control the quantity of currency in circulation. The U.S. economy does not need USD to be the main reserve currency forever - slow changes can be easily handled, as can be evidenced by the fact that euro appeared more than 20 years ago, many reserves were rebalanced over time to include euros, which inevitably led to reduction in USD holdings, and the buck didn’t go anywhere. I also remember many in the anti-USD crowd wetting their pants when Russia announced that it sold all American treasury bills, and, again, we are still here.

 

people trying to sell their rubles, unfortunately no one wants

 

The EURO was just another currency within the Western paradigm. As long as the West retained global primacy, their reserve currency stood.

What you're missing is that the primacy paradigm is shifting to the East .. or more likely has already shifted, and we're just living through the last hurrah of the dollar. It doesn't matter what has happened in the past, or what you think America can do to save the dollar, if the majority of nations go with the Yuan .. and they will .. you're sunk.

 

It's probably more than 85%.

Crazy, when you think that as recently as 1940 we could be trusted with the truth. And our Govts could be trusted to give us enough truth to save ourselves.

 

"It's probably more than 85%"

Most assuredly considering all of the full blown PSYOPS the easily lead masses have simply fallen for over the past thirty years.

So it's no wonder that those in "control" of all this farcical and scripted nonsense don't even bother to hide their fairy tale stories and pre-planned events anymore.

They know how completely stupid and gullible their controlled societies have become, so why even bother with trying to make their new found "castles in the air" actually seem plausible.

 

We're at a point where the less sedated/seduced are having epiphanies. The sudden and large shock of realising Govt is not going to save them. I've spent a good portion of today talking to a friend who's just woken up, and it's not pretty. A lot of anger flying around .. directed at the self, then at Govt, then back to the self, etc etc. It's a process. This friend was very deeply in the woo, too. A 'socialist' Lefty, convinced that Govt would never let anything bad happen, and that 'disaster' funding in keeping with the recipient's lifestyle guaranteed for life. The lie sold, and eagerly bought.

 

Lavrov did not say that Holocaust was Jews killing Jews. He did say that Hitler had Jewish origin and that was correct. His grandmother (his father's line) was Jewish.

 

Too bad the Soviet Union Russia is the only place one can spend this miracle currency. Damn, it really is 1984 all over again...

 

Why should they go to yuan? Just because?

 

I wanted to see if you are capable of making a real rational argument that addresses my arguments.


I got my answer.

 

That’s not true. Primacy is not shifting to the east. How can it, if east is absolutely dependent on the west hiring them to do a final assembly of things they don’t even own? Their average citizen earns $14k per year, which severely restricts their spending power.
Also, you keep repeating that China is rising, yet you fail to describe scenarios where China would truly be able to replace the U.S.

 

Reserve status goes to a trusted ally that has the most stable currency.

China has neither of those qualities, and it's in a lot of financial trouble which it's trying to hide.

 

Why did they go with the dollar once upon a time?

The reasons are the same .. not that it needs explaining. It's a power thing.

 

The 20thC image you have of the East is quaint, and no doubt comforting if you can't stand the thought of the peasants making good, but you're so painfully out of touch with what's happening in the East that even if your denial falls away, you'll still be light years from grasping the reality.

 

Found his tennis shoes in the refridgerator again?

 

I say you are the one who is out of touch. What exactly am I missing in the east? Can you enumerate and quantify?

 

Oh lord.

China hardly needs to DO or BE anything at this point .. when enough nations decide to start trading in your currency, the gig is up.

 

The fact you think the Chinese can't afford to buy stuff.

a) They can
b) There are billions of them
c) It's NOT JUST CHINA

 

What? Make/buy knockoff copies? GDP per capita is around $14k, remember?

I am aware of that.

AND??