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

Congratulations katsung47...... You got a thread to go all the way to the maximum number of posts....... So I have taken the liberty of honouring you as best as I can do.... which is to resurrect this discussion.

Frankly...... you have began a topic on a subject that GREATLY concerns me..... to the point of being worried!

katsung47
Commentator


Russia Is Doing It – Russia Is Actually Abandoning The Dollar

http://theeconomiccollapseblog.com/...g-it-russia-is-actually-abandoning-the-dollar

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One of the most insightful comments ..... and most relieving replies..... (to me anyway)....... was.........

http://www.politicalforum.com/lates...ing-russia-actually-abandoning-dollar-71.html
(post #706).....

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The reason why I decided to resurrect your discussion katsung47.... is because I sent a copy of your thread..... and AA's reply to a writer....... and he replied.....

 

That's a great response you got from Anonymous there...

I wonder if it's struck very many people that China and the US both are playing the same economic games domestically? That is, China is staring down a stock market crash and trying to avoid it through a form of QE as their central bank (a cursed institution that, together with fiat currency, *every nation* seems to have today for some strange reason!) backs the purchase of stocks by brokers, as I recall reading. They've also lowered interest rates, of course. It's funny - most of the world is now embroiled in a debt crisis that benefits those who profit from that debt but impoverishes the rest of us.

This is a world run by psychopaths! The vast majority of people are being used by the world's wealthiest, being taxed by governments to pay debts that benefit the bankers! The same people who, through their speculative gambling with our wealth, have caused economic bubbles and subsequent crises.

The worst part about it is how so many just accept all of this as normal, as if there were no other way to run an economy nationally or globally.

 

quite frankly I don't know why they wouldn't have adopted euros, thats where the overwhelming majority of their sales come from, so why would they have continued this long held 3rd conversion of money when making transactions... it simply doesn't make business sense to have euros exchanged to dollars, and rubles changed to dollars, and then swap, and change back... if you told me as a business this is how we must operate, I would immediately find a way to "cut the middle man" out of the picture because it costs you money to do all this... sure the cost to exchange is small but thats profit you're just giving away for nothing...

the euro is stable enough as a world currency, and since your primary customers all use the euro, why wouldn't you long ago have adopted it... now I know at first, they didn't want to touch the euro for good reason, they really had no idea how this giant experiment would turn out... honestly there were a lot of people predicting the complete collapse of the euro by now, many times over... but now we're 15 years into this experiment, its relative on solid footing, so if there ever was a time to jump in and start exchanging I guess now is as good as anytime over the past 15 years... this is what the euro had hoped would occur with their currency back then... it just took a lot longer to really take hold as an idea with so many frisky things those wacky russians do...

guess I'll have to go find this other thread and read what folks talked about... but I have to assume someone pointed out the above... its just a logical move from a business and international standpoint to make as few exchanges as possible in vast quantities of money... losing less than 1% is still losing less than 1% ya know... but the sheer volume really adds up over decades... in an ironic move, this may make natural gas even cheaper for europeans if sanctions hit russia harder heh...

 

Russia has made a similar currency trade with China, which is to use their own currencies between these two countries when doing business.

In the past, Saddam Hussein made the attempt to discard the dollar and use euros only. This initiative caused his removal from power by the US. Iraq became after the second invasion a headquarters for petrodollars.

The situation with Iraq was its influence over other nations which might follow the initiative of Saddam Hussein and the Middle East should become a dollar free zone.

The problem caused by this action was the return of dollars back to the US, and this would start a sure and deep inflation which added to the debt should be the catastrophic economic falling of the USA.

Other nations are also considering the discarding of the dollar, we have Brazil as one of these countries.

On the other hand, in order to "survive", the US has had no other choice but to look for places where to send the returning dollars.

You must remember that Fort Knox is just a fake, because the Bank of Reserve has printed billions of dollars without the proper backing up with gold or silver. In other words, dollars returning to the US should be in great percent solely monopoly game money.

This is the reason why the US took the desperate action of starting diplomatic relations with Cuba, and has granted Iran to continue with their nuclear power. The US is practically in the hands of any country rejecting the dollar.

For this reason the US plays the "blind man" when illegal immigrants invade the US. If the US takes a serious measurement to eradicate illegal immigration, Mexico might apply to discard the dollar and here you go, the US will have to retreat.

The problem is not the return of dollars, the real problem is that many dollars actually have zero value.

By now, this situation of rejecting dollars by Russia is affecting several countries, which are experiencing inflation. This is caused by the influence of the US making others to pay for the broken dishes instead of affecting the US. But eventually the inflation will arrive here, it is coming, no way to stop it.

China is playing the game, but China will change the rules as the US did when our nation released billions of dollars without funds. The US has proposed many trade deals with China, and it is doing the best to isolate Russia so it won't become a danger to have allies countries rejecting the dollar.

But, we can see that the US is selling itself dealing with dictatorships in order to save its economy. The situation is that bad that very soon the US will sell its own soul to the devil in order to avoid the economic catastrophe... sadly the devil will not make deals with the US because the devil knows better than anyone that the dollar has no real value and that the soul of our country belongs to him already... lol

 

Yawn. The currency used to pay is immaterial to the real economy. I said this the first time somebody tried to make an issue of it. This actually stabilizes the Euro and does not a thing to the $. You have to buy those Euros with something. I wonder who the biggest trading partner of Russia is????? Wanna Guess? The Eurozone....Why wouldn't they trade in the biggest stash of cash they get????
Like Duh.

 

With the Fed printing dollars like crazy, silly to worry about a surplus of dollars because of Russia not using them. We could simply reduce the printing of new dollars to offset the decline in demand because of Russia.

 

And why is anyone shocked when Russia is going to attempt to take back the USSR in the next few years?

When they need oil they will steal it - anyone remember Georgia?

They want nothing to do with the global economy.

Putin is making the bet that the USA won't be able to stop Russia from taking back the USSR due to our own economic problems - and when our economic problems aren't his economic problems he will be able to go ahead with his plan.

 

Well, the original article that is the subject of this thread is over a year old. In that time the value of the dollar has increased while the value of the Ruble has only declined. Their rejection of the dollar has had no effect upon the value of the dollar.

 

You start your own currency, the dixy. You obtain gold to back up your dixy. The more gold you acquire, the more dixies you print to make your currency reach more places. People trust your bank and your currency. The exchange to other currencies is fair.

Your richness is evaluate according to the amount of dixies printed and circulating around the world.

But, you decided to trick people. You don't acquire gold anymore but you increase the printing of dixies. You are creating a false wealthy in front of the rest. Some people found out about your trick and decided to avoid using your dixies.

Now, you see your dixies returning back to your bank because some people stop using them. You stop printing dixies to avoid the storage of an excess of dixies in shelves.

Then, in front of the rest, less dixes means less wealthy.

You are trapped anyway.

If the dollar stops circulating around the world, that is the collapse of the US economy. The main purpose for isolating Russia is to avoid the support of other countries following the Russian initiative. For this reason the US is dealing with Cuba and Iran, which are countries known as being traders with Russia.

So, hell with the US principles of freedom, democracy, human rights, etc. The US will sell its soul to the devil in order to survive this attack against the dollar. Period.

 

LOLOLOL!!!! What an incredibly child like understanding of the money supply. You dont have a clue.

 

It caused a temporary falling of the rubble, but Russia recovered in months. And its fast recovery was thanks to their low national debt.

The temporary falling of their economy ended with self-production of goods, and now Russia -with ups and downs- is looking for surplus. Investors are attracted to Russia and manufacturing is increasing even more.

And contrary to your opinion, this is not about the value of a currency but the use of it as a trade currency, which may be related to its value but is not a rule. The UK currency has more value than the dollar but is not a currency accepted for trade, Even more, you go to Japan, Mexico or Yemen and try to pay your food bill in a restaurant with "British Sterlings" (pounds) and you will find yourself in trouble. You are going to be asked to use their currencies or dollars.

Comprende?

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Great!

Then, give us your explanation.

 

Where do you get your news? The Moscow ministry of propaganda?

http://www.marketwatch.com/story/ru...-as-brent-crude-enters-bear-market-2015-07-28

The ruble is horrible. It hasn't "recovered". Afghani rocks are worth more.

 

Economy is unpredictable. .

The same US was forced to low the dollar's value in order to compete with other countries.

While high value of a currency means "pride" like the British sterling, a lower value of a currency means better opportunities depending of what a country has to offer.

When the rubble falls, and the country enjoys lots of capabilities for manufacturing, then investors arrive like crazy for the cheap cost.

It won't matter how low is the value of a currency. In the past the Italian lira was incredibly low when used for exchanging with other currencies, but this country survived very well thanks to tourist visiting like crazy this land of many historical attractions. Besides that, its production compensated its low currency value.

To me, the value of a currency is a double edged sword. It can help or it can hurt the country's economy.

Better than high value, the best for a currency is to maintain a stable value.

The US was forced to lower the value of the dollar when Japan, China, India, and other countries started to provide goods around the world. These products can't be competed with the US products because the high value of the dollar.

Before the 70's, Americans used to travel to Europe because the low value of their currencies. Later, when the dollar was lower, an increase of tourist to the US was the effect. Up to the 70's, we used to have a RCA TV, a Ford or Oldsmobile car parked at front of the house, and the use of more American products. Later, these were changed for a Toshiba TV, a Toyota car, and so forth.

The products from other countries started to arrive and they created a great competence and trouble for American companies. The exchange of value was unfair to American companies trying to sell products to other countries. The dollar was forced to go down.

So, when you mention that the ruble is touching the floor, that is not necessarily an indication that the economy is on the floor as well.

The economy will depend on the production compared to the spending.

For example, in the US, the GDP ratio to debt is 101%. The best GDP ratio to debt should be under 30%, but today's 101% compared to 68% when Obama became president, and in time of "peace", I can tell you that over 100% means bankruptcy.

 

Why doesn't Russia demand payment in Rubles? Perhaps even Russians don't want a failing currency as payment?

 

You say "not necessarily", yet it's more evidence that it IS failing, than not. No offense, but this entire piece you've written is one huge deflection from the truth. It's an ATTEMPT to justify failure.

 

You still can't understand.

The currency may fall, but the economy may rise up regardless of the declining of the currency.

I gave you the example of the US causing the dollar to fall in order to compete with the production of other countries.

 

No, I understand your theory. it MAY rise. It LIKELY won't.

 

A good question, but... if you sell apples, will you ask the payment to be with apples?

Russia is not selling rubles, Russia is selling oil, gas, etc...

 

OK, I will be direct.

Thanks to the falling of the ruble, the economy of Russia is much better because investors love the cheap manufacturing cost.

So, let the ruble going down deeper and deeper. They still maintain a low national debt. Their economy is REAL.

When the economy is "outstanding" thanks to a great national debt, then that wealthy is FAKE.

And this is not a theory, is a fact.

 

Do what again? If I'm selling apples, why the hell would I ask for payment in apples? No, I would want payment in some form of currency. Types of currency include Dollars, Euros and RUBLES.

 

Very well. So you are "free" to decide what currency to accept.

Russians want euros. Do you have any problem with that?

 

But why do they want Euros and not Rubles? Is it because they know their own currency is worthless?

 

And then there is the real world

"Meanwhile foreign direct investment has been hammered by the crisis in East-West relations. In the first quarter it was just $1.3 billion, down from $12.9 billion in the first quarter of 2014 and $40 billion in the same quarter of 2013."
http://www.reuters.com/article/2015/07/28/russia-economy-gdp-idUSL5N10819Y20150728

 

It affects our exchange rate