Putin Flushes the US Dollar: Russia’s Gold Ruble Payments System Delinked from Dollar

poet1b
reply to post by mbkennel

 

I am not anti-west, but I am against the current state of ICBing.

The FRD got to where it is because they used to do business a whole lot differently, and they were backed by massive US industrial capacity, which has since then been sold off for profit.

Yes, that's a different issue, related to China and US tycoons and capitalists, and not Russia.

Tusks
Can one de-link two fiat currencies--by fiat?

What do you mean by "de-link?"? Change an exchange rate policy? Sure. The CNY/USD rate is manipulated by the Bank Of China who buys and sells and regulates "private" Chinese banks to obey its policy. USA has no say in the matter. If the BOC wanted to change its policy, it could.

But you can't 'de-link' one currency against only one other and not have effects on any others, because of triangular arbitrage.

So if you want CNY/USD to be some value you can't make CNY/EUR be completely free floating, because EUR/USD trading happens outside the control of the Chinese authorities.

A dictator can make it difficult for domestic institutions that he directly controls to do foreign business. That's about it.

In all cases there are secondary and tertiary economic effects which may often be called "blowback" from these types of actions.

Stuship
reply to post by maddy21


The Cold War already proved how to defeat Russia, and it can easily be replicated without firing a shot.

Exactly. Russia is economically weak. China is economically strong. China is in it for the money, not political grandstanding, and they're winning.

signalfire

Umm, I don't pretend to understand any of this at all, but how much of that US 87% is fake fiat money that the Federal Reserve is flooding the globe with? It's not based on real economic output, nor goods or services. It's just traders (traitors) on Wall Street, if that.

Yes, all of that currency, in all denominations for all countries is "fake fiat money". Russia's and China's too.
If it's not based on any real economic output, why can you buy things and services with dollars? Why can you not buy things with North Korean prison chits?

And if Iceland can mostly decouple from the global banking economy (I think that's what they've done, maybe not)

Iceland has capital controls preventing people internally from converting icelandic kronur to foreign currency.

then a country as massive as Russia should be able to mostly fend for themselves.

Sure, they can go back to farming potatoes.

Are we all really so interconnected that we need to buy from and sell to everyone else on the planet?

Well, yes, when you have poor people on top of gas and oil, that's what happens.

Wouldn't a bit of 'buy local first' go a long ways to calm the saber rattling down and save resources?

What do you mean specifically, blockading Russian gas exports? RIsky. Europe, developing its own gas resources and rebuilding its nuclear generating capacity? You betcha!

Vladimir Putin is politically powerful because he can control gas sales and give the money to the people he needs as supporters. If they didn't, then many Russian oligarchs would be impoverished and the standard of living in Russia would decline back again and Putin would have domestic problems.

Telos

mbkennel


Because thinking you can 'will' a currency in your own image for political purposes is a syndrome of a clueless dictator like Saddam and Gaddafi, and they tend to have many other problems.

Dictators? Really? Wasn't Saddam a dictator when was put in power by US and acted as their puppet until he got into his mind that he could change the reality in his region and get away from american grip?

No. Saddam came to power in a brutal military coup. The Baath party was a nationalist & socialist party allied with Syria and the USSR, and opposed to the USA and its mideast allies. He and his country wasn't friendly with the USA, except as a matter of convenience when Iran's hostility turned out to be a worse problem.

Why did Saddam have a large 100% Soviet-built army?

This guy [Gaddafi] was labeled right away as a dictator despite the fact that his people loved and respected him, despite the fact that his country was blooming under his guide.

Did you once work in the Iraqi Information Ministry?

reply to post by mbkennel


Didn't Iraq invade Iran?

reply to post by Watchfull


IF I were a Ukranian I would be in revolt against getting sucked into the Euro and choose Russia instead. But that being said the price (and therefore value) of gold is a subject of the Federal Reserve, Bank of London, etc. So that would put their economic system in a somewhat vulnerable position.

mbkennel

Telos

mbkennel


Because thinking you can 'will' a currency in your own image for political purposes is a syndrome of a clueless dictator like Saddam and Gaddafi, and they tend to have many other problems.

Dictators? Really? Wasn't Saddam a dictator when was put in power by US and acted as their puppet until he got into his mind that he could change the reality in his region and get away from american grip?

No. Saddam came to power in a brutal military coup. The Baath party was a nationalist & socialist party allied with Syria and the USSR, and opposed to the USA and its mideast allies. He and his country wasn't friendly with the USA, except as a matter of convenience when Iran's hostility turned out to be a worse problem.

Why did Saddam have a large 100% Soviet-built army?

Saddam was played by the American government, given chemical weapons to fight Iran in a strategic effort to distract and weaken both Iraq and Iran- as per the Carter Doctrine of the US protecting Saudi regional hegemony.

And Saddam's military was not exactly "100% soviet built". A lot of their heavy equipment was soviet design but it was the Iraqis who assembled the export pieces shipped to them. Saddam was being cheap, going for quantity over quality.

ColCurious
reply to post by maddy21

 

Libertarians ought to be grateful to Putin for this. Not Putin the person obviously, but the role he is playing. Weird times indeed.

What an odd thing to say! As though V. Putin wasn't his own man in command of all his exceptional faculties.

Did you mean to intentionally insult such an extraordinary man?

And would you have made such a comment about the 'role' being played by the weak minded, effeminate, ineffectual, and highly questionable 'leadership' of BHO "the person"?

a reply to: Elliot

Everything is connected to the dollar, Ruble is worth a little more than a maggot. Russia is now considered a unstable government. They just pissed off their customers, Ulkraine is not really a big deal but it's costing Putin a lot more than he thought. Russian industry values have dropped billions of dollars in value, if we went to war, we will found out that Russian military equipment is garbage. Putins interviews were pathetic and made him look foolish. We make him look like a schoolboy? What the hell does that mean? The Russians better wake up and join the world.