Reasons for the growth of the ruble

[surada]

Is 106

China and Russia are hiding an enormous amount of trade that's being done over land by rail system. It can't be measured by the West in terms of the dollar system and so really it's unexaminable at this point. What is becoming apparent though is that the dollar has a very real and very serious competitor for global reserve currency status. The Petro-yuan.

Saudi Arabia may just have sealed the Doom of the Petro-dollar by signing a huge contract with China to sell oil in Yuan instead of dollars. Since I believe the ruble is now inextricably tied to the Yuan the ruble will also benefit from this trade.

Is 10,600 rubles to the US dollar is correct?

 

[justoffal]

Is 106
Is 10,600 rubles to the US dollar is correct?

Not sure I haven't looked it up I'll take your word for it.... However I would caution anyone who's depending on the dollar system to value the ruble that the ruble has another source of valuation that we cannot measure and that is currently coming from China.

 

[Toddsterpatriot]

The Petro-yuan is making its debut....

Nobody wants to hold a commie currency.

 

[justoffal]

Nobody wants to hold a commie currency.

Probably right about that....
At least for now.

Jo

 

[rupol2000]

Nobody wants to hold a commie currency.

If China is politically strong, they will force to holde the yuan and stop depreciating it.
Biden is also a communist, for banks it does not matter.

 

[Gabe Lackmann]

The only thing that makes a currency grow in value...just like every other thing on this planet, is demand.

The Truth is that Russia, and many other nations are bypassing the petrodollar, and trading in their own currencies.

This raises the demand for rubles as Russian commodities are traded in that currency.

Not rocket surgery hoss.

 

[justoffal]

The only thing that makes a currency grow in value...just like every other thing on this planet, is demand.

The Truth is that Russia, and many other nations are bypassing the petrodollar, and trading in their own currencies.

This raises the demand for rubles as Russian commodities are traded in that currency.

Not rocket surgery hoss.

Yep.... And what's killing the central banks of Europe is they have no way to examine the ruble's quantitative measure or to screw around with it for that matter because the Petro-yuan is propping it up and they don't have access to that system yet.

 

[Gabe Lackmann]

Yep.... And what's killing the central banks of Europe is they have no way to examine the ruble's quantitative measure or to screw around with it for that matter because the Petro-yuan is propping it up and they don't have access to that system yet.

Yeap...this is a true decouple.

As China brings its own digital Yuan online much of the world will shift to that as a medium of exchange.

This will ultimately be seen as much more stable, and reliable than the dollar as China is a strong economy, extra all of the geopolitical 'drama' infecting the US.

 

[rupol2000]

The only thing that makes a currency grow in value...just like every other thing on this planet, is demand.

The Truth is that Russia, and many other nations are bypassing the petrodollar, and trading in their own currencies.

This raises the demand for rubles as Russian commodities are traded in that currency.

Not rocket surgery hoss.

But the ruble is not used in international trade. Instead of the Dollar, they apparently use the Euro

 

[rupol2000]

Yep.... And what's killing the central banks of Europe is they have no way to examine the ruble's quantitative measure or to screw around with it for that matter because the Petro-yuan is propping it up and they don't have access to that system yet.

While there is no petroyuan, these are only "plans"

 

[justoffal]

Yeap...this is a true decouple.

As China brings its own digital Yuan online much of the world will shift to that as a medium of exchange.

This will ultimately be seen as much more stable, and reliable than the dollar as China is a strong economy, extra all of the geopolitical 'drama' infecting the US.

Sounds about right...

Jo

 

[Gabe Lackmann]

But the ruble is not used in international trade.

That's silly. Well of course they do.

They have signed deals with China where the Yuan and Ruble are increasingly used.

Just because the Ruble, Yuan, Gold, Peso...pick one is not the medium of currency does not preclude it from being.

The dollar and euro are selected because nations can agree on the stability of those currencies.

However, they can agree to trade in anything.

There are ways around anything.

The only thing required is that the two nations must agree on the medium of exchange.

It can literally be ANY medium of exchange...anything.

There is nothing illegal, or wrong about it.

Further,

Russians, due to current sanctions, cannot trade in Euros or Dollars as that would require transference through EU and US banking systems.

So Russia uses it's own banking system which trades in Rubles.

https://www.usnews.com/news/business/articles/2022-03-18/india-buys-russian-oil-despite-pressure-for-sanctions

India buys oil from Russia this way, China does...as other nations do.

 

[rupol2000]

That's silly. Well of course they do.

They have signed deals with China where the Yuan and Ruble are increasingly used.

Just because the Ruble, Yuan, Gold, Peso...pick one is not the medium of currency does not preclude it from being.

The dollar and euro are selected because nations can agree on the stability of those currencies.

However, they can agree to trade in anything.

There are ways around anything.

The only thing required is that the two nations must agree on the medium of exchange.

It can literally be ANY medium of exchange...anything.

There is nothing illegal, or wrong about it.

Further,

Russians, due to current sanctions, cannot trade in Euros or Dollars as that would require transference through EU and US banking systems.

So Russia uses it's own banking system which trades in Rubles.

https://www.usnews.com/news/business/articles/2022-03-18/india-buys-russian-oil-despite-pressure-for-sanctions

India buys oil from Russia this way, China does...as other nations do.

Could you show on the map the oil pipeline from Russia to India?

 

[rupol2000]

Gabe Lackmann
India is partner number 25 for Russia with a share of 0.7%.

Of this share, crude oil is less than half (the rest is coal and oil products)

 

[Gabe Lackmann]

Could you show on the map the oil pipeline from Russia to India?

Where did I ever state there was one?

When did you ever ask me about one?

You asked about international transactions.

I told you about them.

Moving the goalpost is a bitch move.

Are you a bitch?

 

[rupol2000]

Where did I ever state there was one?

When did you ever ask me about one?

You asked about international transactions.

I told you about them.

Moving the goalpost is a bitch move.

Are you a bitch?

It doesn't matter even if they're not lying. They said the same thing about Iran, with Iran, too, the turnover is meager.

 

[Dekster]

....The Fed didn't know inflation was going to increase so much.

I doubt that part is true. The fed, however didn't have any choice once Congress decided it was going to put trillions of new money into circulation in a ridiculously short period of time, much of it going to the consuming class, to pretend that it was going to somehow address COVID.

 

[Toddsterpatriot]

I doubt that part is true. The fed, however didn't have any choice once Congress decided it was going to put trillions of new money into circulation in a ridiculously short period of time, much of it going to the consuming class, to pretend that it was going to somehow address COVID.

I doubt that part is true.

They were trying, for years, to get inflation up to 2%, unsuccessfully.
And a year ago they said it wasn't going to be an issue.

The fed, however didn't have any choice once Congress decided it was going to put trillions of new money into circulation in a ridiculously short period of time

Sure they did. They could have not bought $120 billion a month in securities.

 

[Dekster]

I doubt that part is true.

They were trying, for years, to get inflation up to 2%, unsuccessfully.
And a year ago they said it wasn't going to be an issue.

The fed, however didn't have any choice once Congress decided it was going to put trillions of new money into circulation in a ridiculously short period of time

Sure they did. They could have not bought $120 billion a month in securities.

Funny you still think the fed is really independent of the government. Maintains the illusion I guess.

 

[Toddsterpatriot]

Funny you still think the fed is really independent of the government. Maintains the illusion I guess.

Independent? It's part of the government.