This could cause insane hyperinflation. A key part of American hegemony is that we print dollars to bribe every country on the planet. This doesn't have any real effects because they all bury the it in a hole in the hope that it will retain it's value better than their own currency.
There are now strong incentives for people with large amounts of Russian trade to start dumping dollars, and once one country does everyone else has to follow suit to avoid getting screwed. This also means people will start calling in US debt. One way around this for the US is to simply delete those digital dollars and not pay any of the debt. There is nothing any country could do about that other than invade to physically take resources as compensation, and good luck with that.
Doesn’t work like that if they don’t have the gold reserves to back it up. And now they have 85% all goods and services cut off the international market. Which is what money is supposed represent.
LOL you are smoking crack. China is on its borders they will do fine with Trade. Russians are fucking tough people and they can do with less. They are use to it.
Its not like the fat fucking cunts in USA, Canada, UK etc..
You're correct. But as a temporary measure to stop people dumping Rubles, offering gold as an incentive is clever. As you say, whether that makes sense longer term is questionable.
Being cut off from a financial system that's actively internationalist and opposed to you isn't a negative if you're ultranationalist and have already accepted that those goods have too many strings attached.
It's a game of chicken, and honestly Russia can turn off the oil & gas pipelines next winter if they're still being locked out of the international marketplace. Germany will cry uncle faster than Russia goes bankrupt. Any move that gets them closer to that point, short term, is a win for them.
You do that when your economy is strong economically, not when it’s about to collapse. Gold peg means nothing if you don’t have the gold reserves & couldn’t exchange it even if you did.
I would say that typically breaking the link between a country’s currency and gold leads to economic weakness (inflationary monetary policy destroys economies) and so only a weak economy would go back to gold. Russia was buying gold for the last 10+ years. It’s also the 3rd largest gold producer in the world. There is reason to believe Russia (and China) have more gold than they’re letting on.
Except, if Europe wants to keep the heat on next winter, guess what they can't do? They can't pay for Russian energy in anything but rubles or gold.
Putin locked in gold at a price below global market value, about $1600/ounce. Why is that important? Because to buy Russian energy you're either going to buy rubles for exchange driving demand thus increasing the value of the ruble or your going to pay more gold for a barrel of Russian crude or NG which essentially increases the value Russian energy. And since some people are going to pay for Russian energy with gold there's going to be two additional effects. 1) Russian energy is going to cost Europe more in gold since Russia considers an ounce to be valued less than international markets giving Russia access to cheap gold. 2) It's going to drive up the price of international gold since demand for it will increase.
Europe can't not buy Russian energy in the mid-term until European countries restructure their energy acquisition, 5 - 10 years.
we had inflation during nixon because of spending on vietnam war and other worthless govt spending, so nixon stopped the bretton woods gold convertibility as other countries wanted their gold back which we didn't have. This won't cause inflation in russia unless they spend too much.
I was talking about dollar inflation as a result of foreign reserve dumping. This is a far worse situation than 1971. The way to avoid it is to nuke the dollar empire(cancel all foreign dollars and debts) for the sake of the domestic economy, which would also require a push towards autarkic reindustrialization. It would be painful, but better than the option of collapsing both the empire and the domestic economy.
it doesn't matter how much gold there is it's all relative, it's just better than fiat based on nothing. You can use dollars to buy gold but the dollars are really IOUs that nations could use to get their gold back from where it was stored, that's what convertibility means here
It is not relative if it’s un-exchangeable. Then it’s no better than fiat. All it does is extend credit based on faith that is not backed up by real material. You’re just exchanging trust in one thing for another.
IMF wanted a new Bretton Woods moment. I think they were aiming for a digital currency, but an actual gold-backed currency is as close as you can get to the actual Bretton Woods (gold-backed USD).
India and China are still transacting with Russia, and the world is too dependent on the region for fuel, fertilizer and food.
The real question is does this bolster or harm the cause of the CBDC?
You could create a CBDC token tied to hard assets like gold or land or other commodities sort of like a blockchain ETF where people trade gold or silver futures today?
Or is Putin doing this because he wants Russia with something solid to base its financial system on that he controls out of the grasp of the central banking cabal that answer to Davos?
Even if it's tied to gold, CBDC has the ability to easily track and regulate (ie. limit where money can be spent, seize money, freeze accounts, set carbon limits). Hopefully enough people see what happened in Canada and with Russia as a reason to never trust a CBDC.
I believe as far back as the Nixon administration someone asked the question what happened if Europe went on a gold standard (the only group of economies which could rival the US at the time) - it could threaten the fiat dollars hegemony. Kissinger scoffed with contempt and said we'll destroy them if they try any such thing. Well I remember someone asking the question around 2014 when it became clear that the gold backed dinar is probably what lead to Gaddafis death and then someone asked the question what are you going to do if Russia or China does the same thing? You can't destroy them without killing a billion people.
The dollar hegemony is destroyed but the US has secured Europe as a permanent vassal now they can't use Russian energy. It renders Europe economically ruined and dependent on US LNG imports they can't really afford.
I'm in the UK - we depend significantly on natural gas for our electricity and heating although we have a more diversified supply from our own gas fields and Norway but we also import some LNG. We've seen sky rocketing energy prices. Someone I work with is seeing his dual fuel monthly bill go from £80 to at least £265. Fuel prices here have averaged around £1.20 a litre for petrol and £1.30 for diesel are now around £1.60 for petrol and £1.75 for diesel. I simply don't know what is going to happen. An awful lot of working people simply can't afford their energy bills anymore and we are more insulated from this than the continent is.
Energy is traded on a global market. The fallout from this will be the death of the western economies. It cannot be sustained.
Strategic and necessary aggression for Russia? Yes.
Justifiable? Not under current international law.
Being a Pariah and a rogue state is preferable for Russia to full encirclement by hostile states, and losing access to the warm water ports that are technically Ukrainian.
That's why I cited the Russian strategic needs, (which you ignore.) Sure, yap about international law not mattering-- I agree. International law is a fig leaf covering realpolitik. Always has been. Don't mistake me for saying otherwise.
Focus on what matters: the big floppy sausage of Russian needs and what they're willing to do to realize them, international law or no. There's no legal framework for Russia's actions outside of might makes right or mutually assured destruction.
Not to mention Russia has serious demographic problems. I believe deaths passed births in Russia back in the 1970's. Communism makes countries old before they get rich. They have a declining population which makes defending their country most of which is a flat featureless plane with nothing defensible except for a few rivers from the Carpathian mountains all the way to the Ural mountains and Kazakhstan to the south very difficult. Control of Ukraine narrows the corridor that an invading army could use to penetrate the Russian interior and gives the Russian army more space to retreat into. If you look at the German campaigns of 1941 and 42 in the south they came dangerously close to cutting Russia off from its primary oil infrastructure in the south in the Caspian sea region. There is a large bend in the Don river which protects an army advancing through that corridor.
They have serious strategic issues in the east - 1.4 billion Chinese in a resource poor country with a resource rich country sparsely populated to its north. They face the risk of a 2 front war in the west and the east.
Putin is also ageing. He is 69. He is essentially a monarch, he probably has good doctors and maintains good physical fitness but statistically speaking he probably only has 15 years left. He needs to conclude this business now. Secure his borders while Russia still has the capacity demographically speaking to fight a major war and then likely wants to do what Nurusultan did in Kazakhstan and step down and head a council of state security while he grooms a successor. I would have to guess that Dmitry Medvedev would be high on the list given that he has been president before and is still relatively young. From what I understand though the most powerful of Putins "security men" in his inner circle is Igor Setchin.
his finite lifespan is an important factor, but a good king would just expand his kingdom as much as realistically possible and then leave a strong nation to his son to be the new king of.
not a good reason to just give up and allow more to be on the border, good to keep the nukes aimed at you as low as possible, they can survive a certain amount but at some point it is too much.
Gaddafi wanted to stop selling his oil in dollars.
They could have backed their money with whatever they wanted without a full scale war.
Lol.
Gaddafi, and his value backed currency, were repeatedly called a threat global financial security. Such claims get made every time a nation strays from private central banking. The instigators tend to land up equally dead, as well.
we've seen the rhetoric from dems trying to turn USA citizens anti russia after were allies since the cold war, it's probably mainly to help them win elections with a boogeyman, they made up the trump russia connection for example. Putin probably saw that as a threat.
Libya had no real friends - Gadaffi was absolutely certifiably insane. He rejected the east and the west and acting like an international super villain in an attempt to get attention for his little green book about the "3rd revolutionary theory". He was happy to take the blame for things like Lockerbie that was likely the work of Hezbollah and the Syrian intelligence services because the US didn't know what to do about them but it could make a show of dropping some bombs on Libya because no one cared.
That is why no one protected him from the Wests regime change agenda, he had stepped on a lot of toes, insulted a lot of people and shit on a lot of lawns over his term in power. I have to wonder if behind closed doors the Russians did a dirty deal with the west that they would abstain on protecting Gadaffi in exchange for assurances on concessions in their sphere of influence when it came to Syria, Iran and Georgia?
Seems the elites really don't want a viable regional African power.
I believe this is likewise what motivated the destruction of Ian Smiths government in Rhodesia and the white government of South Africa. An independent wealthy regional power who could resist the globalists would damage the ability of multinationals to run roughshod over Africa.
A lot of people are confusing a gold pegged Ruble with a gold backed Ruble. This announcement only pegs the value of the Ruble to the value of an amount of gold. I know the article mentions that the government is buying gold, but until the government has enough gold in its deposits to match the total outstanding Rubles in circulation, it’s not a gold backed currency.
I believe that the Russian government did this to limit the effects of inflation.
You just know that a false flag that they're going to tie around Russia's neck is incoming. Question is are they going to inflict it on Europe this time or are we still the goat?
what is truly fascinating is that at the same time the price of Gold in USD is getting down. The people controlling it know it's going to blow, and they're making sure they can buy more until it's getting too late.
I'm actually not sure what the purpose of this is. All this will accomplish is increase the supply of Rubles to ensure a price ceiling for the value of the Ruble. Anytime the Rubles value increases, relative to other currencies, people will buy gold, sell to central bank for Rubles and then sell Rubles increasing the supply of Rubles and ensuring the value of Rubles doesn't go up too high.
The only possible explanation I can think of this is that Russia expects the change to requiring O&G to be paid for in Rubles will drive the value of the Ruble up significantly which may hurt exports so this is to cap the value of the Ruble. This should hurt imports and help exports presuming countries buy from Russia. Seems like Russia is trying to make themselves less reliant on everyone else and make everyone else more reliant on them.
Isn't the problem with a currency fixed against gold you can manipulate it with enough market share?
Buy enough gold to raise the price, sell it in a batch to crash the market and rebuy more to re raise the price?
This will be interesting because Russia, by virtue of it's lack of sea access and overall size is probably the most insulated country in the world from US power.
tarting this week, the Russian central bank will pay a fixed price of 5,000 roubles ($52) per gram between March 28 and June 30, the bank said on Friday. This is below the current market value of around $68
This is bad, artificially setting prices is one way to destroy the currency and opening up a black market. We can look at Venezuela official dollar exchange and the black market exchange.
If I can choose to buy an ounce of gold for $2000 or trade $1600 for enough rubles to buy an ounce of gold, then the price of gold is $1600.
More importantly, it sets the value of a dollar at 1/1600 of an ounce of gold, which it is not worth on its own without being backed by oil as a default global currency, which Russia also put a stop to during this same process.
Since it is not worth that amount on its own, nations will be dumping their dollars and hyperinflation slaps us in the dick when we now have trillions more dollars whose IOU is being called.
Venezuela's currency is fiat and thus only backed by government order. Russia is fixing theirs to gold and thus the exchange rate for the money is connected to the exchange rate for gold in other countries.
His mistake was not having nukes.
If you want to tell GAE you're not going to play by their rigged rules, you need nukes, or you're getting toppled.
So like, Iraq?
Iraq didn't have nukes. They were probably trying to get them. It's a damned if you do damned if you don't situation.
nukes are fake and gay, ask Weev
Nukes are fake and gay, yes, but it doesn't matter.
You don't get invaded if you have nukes, simple as that.
Global American Empire
That the acronym reads a homonym for Gay is a happy coincidence.
Globalist American Empire, also known as Globohomo
So yes.
This could cause insane hyperinflation. A key part of American hegemony is that we print dollars to bribe every country on the planet. This doesn't have any real effects because they all bury the it in a hole in the hope that it will retain it's value better than their own currency.
There are now strong incentives for people with large amounts of Russian trade to start dumping dollars, and once one country does everyone else has to follow suit to avoid getting screwed. This also means people will start calling in US debt. One way around this for the US is to simply delete those digital dollars and not pay any of the debt. There is nothing any country could do about that other than invade to physically take resources as compensation, and good luck with that.
This is good analysis.
One factor I'd like to add, for collective consideration:
Petrodollars maintain value primarily because they are used to buy oil, and the west crushes alternatives.
When Russian Golden Rubles start being used to buy/trade oil, That's when shit will hit the fan-- or we will see an actual WW3.
The ruble isn’t worth the electricity that keeps their computers on right now.
Yep. Hence trying to make it a medium for buying gold, the same way the dollar is a medium for buying oil.
It's desperation on Russia's part.
Doesn’t work like that if they don’t have the gold reserves to back it up. And now they have 85% all goods and services cut off the international market. Which is what money is supposed represent.
LOL you are smoking crack. China is on its borders they will do fine with Trade. Russians are fucking tough people and they can do with less. They are use to it.
Its not like the fat fucking cunts in USA, Canada, UK etc..
You're correct. But as a temporary measure to stop people dumping Rubles, offering gold as an incentive is clever. As you say, whether that makes sense longer term is questionable.
Being cut off from a financial system that's actively internationalist and opposed to you isn't a negative if you're ultranationalist and have already accepted that those goods have too many strings attached.
It's a game of chicken, and honestly Russia can turn off the oil & gas pipelines next winter if they're still being locked out of the international marketplace. Germany will cry uncle faster than Russia goes bankrupt. Any move that gets them closer to that point, short term, is a win for them.
Lol.. Ruble has recovered to 10 rubles of its previous trading tunnel.
You rube go look at the forex.
Wow maybe that’s why they’re creating a gold peg?
You do that when your economy is strong economically, not when it’s about to collapse. Gold peg means nothing if you don’t have the gold reserves & couldn’t exchange it even if you did.
Russia does have some 2,000 tons of gold reserves.
I would say that typically breaking the link between a country’s currency and gold leads to economic weakness (inflationary monetary policy destroys economies) and so only a weak economy would go back to gold. Russia was buying gold for the last 10+ years. It’s also the 3rd largest gold producer in the world. There is reason to believe Russia (and China) have more gold than they’re letting on.
Except, if Europe wants to keep the heat on next winter, guess what they can't do? They can't pay for Russian energy in anything but rubles or gold.
Putin locked in gold at a price below global market value, about $1600/ounce. Why is that important? Because to buy Russian energy you're either going to buy rubles for exchange driving demand thus increasing the value of the ruble or your going to pay more gold for a barrel of Russian crude or NG which essentially increases the value Russian energy. And since some people are going to pay for Russian energy with gold there's going to be two additional effects. 1) Russian energy is going to cost Europe more in gold since Russia considers an ounce to be valued less than international markets giving Russia access to cheap gold. 2) It's going to drive up the price of international gold since demand for it will increase.
Europe can't not buy Russian energy in the mid-term until European countries restructure their energy acquisition, 5 - 10 years.
we had inflation during nixon because of spending on vietnam war and other worthless govt spending, so nixon stopped the bretton woods gold convertibility as other countries wanted their gold back which we didn't have. This won't cause inflation in russia unless they spend too much.
I was talking about dollar inflation as a result of foreign reserve dumping. This is a far worse situation than 1971. The way to avoid it is to nuke the dollar empire(cancel all foreign dollars and debts) for the sake of the domestic economy, which would also require a push towards autarkic reindustrialization. It would be painful, but better than the option of collapsing both the empire and the domestic economy.
There was no convertibility to gold since the 1870s. And there simply isn’t enough gold in the world to conduct global trade in any meaningful scale.
it doesn't matter how much gold there is it's all relative, it's just better than fiat based on nothing. You can use dollars to buy gold but the dollars are really IOUs that nations could use to get their gold back from where it was stored, that's what convertibility means here
It is not relative if it’s un-exchangeable. Then it’s no better than fiat. All it does is extend credit based on faith that is not backed up by real material. You’re just exchanging trust in one thing for another.
Russia has been trying everything they can to undermine the US Dollar. If they are serious about TGS it just may work this time.
archive of OP's link: https://archive.ph/rFf34
IMF wanted a new Bretton Woods moment. I think they were aiming for a digital currency, but an actual gold-backed currency is as close as you can get to the actual Bretton Woods (gold-backed USD).
India and China are still transacting with Russia, and the world is too dependent on the region for fuel, fertilizer and food.
The real question is does this bolster or harm the cause of the CBDC?
You could create a CBDC token tied to hard assets like gold or land or other commodities sort of like a blockchain ETF where people trade gold or silver futures today?
Or is Putin doing this because he wants Russia with something solid to base its financial system on that he controls out of the grasp of the central banking cabal that answer to Davos?
Even if it's tied to gold, CBDC has the ability to easily track and regulate (ie. limit where money can be spent, seize money, freeze accounts, set carbon limits). Hopefully enough people see what happened in Canada and with Russia as a reason to never trust a CBDC.
well what Canada did just demonstrates that all bank accounts are unsafe, no matter the currency inside them :(
With fiat, there is cash. It's harder to transact if you're not using a bank account, but possible. CBDC makes it impossible.
I think Russia and China and India might create a currency based on a basket of good.
I believe as far back as the Nixon administration someone asked the question what happened if Europe went on a gold standard (the only group of economies which could rival the US at the time) - it could threaten the fiat dollars hegemony. Kissinger scoffed with contempt and said we'll destroy them if they try any such thing. Well I remember someone asking the question around 2014 when it became clear that the gold backed dinar is probably what lead to Gaddafis death and then someone asked the question what are you going to do if Russia or China does the same thing? You can't destroy them without killing a billion people.
The dollar hegemony is destroyed but the US has secured Europe as a permanent vassal now they can't use Russian energy. It renders Europe economically ruined and dependent on US LNG imports they can't really afford.
Good fuck Germany.
I'm in the UK - we depend significantly on natural gas for our electricity and heating although we have a more diversified supply from our own gas fields and Norway but we also import some LNG. We've seen sky rocketing energy prices. Someone I work with is seeing his dual fuel monthly bill go from £80 to at least £265. Fuel prices here have averaged around £1.20 a litre for petrol and £1.30 for diesel are now around £1.60 for petrol and £1.75 for diesel. I simply don't know what is going to happen. An awful lot of working people simply can't afford their energy bills anymore and we are more insulated from this than the continent is.
Energy is traded on a global market. The fallout from this will be the death of the western economies. It cannot be sustained.
Preventing an explicitly anti-Russian alliance from setting up military emplacements on Russia's border is a GREAT reason to invade.
Strategic and necessary aggression for Russia? Yes.
Justifiable? Not under current international law.
Being a Pariah and a rogue state is preferable for Russia to full encirclement by hostile states, and losing access to the warm water ports that are technically Ukrainian.
Oh no! Better call up the international police! International law is a bad fucking joke
No reason to fear a toothless dog.
This looks like a job for America: the world's police!
with real politik international law doesn't matter, USA violates it all the time too
Yes.
Selective enforcement of the law by those with the power is also peak realpolitik.
"international law" is faggot nonsense.
Yep. Just like the Breton Woods post-WW2 order and the UN.
I only 'notice.' I don't approve.
Charter of the United Nations, in particular in Article 2, paragraph 4”[1] (the prohibition of the use of force)
Do you want me to quote it?
That's why I cited the Russian strategic needs, (which you ignore.) Sure, yap about international law not mattering-- I agree. International law is a fig leaf covering realpolitik. Always has been. Don't mistake me for saying otherwise.
Focus on what matters: the big floppy sausage of Russian needs and what they're willing to do to realize them, international law or no. There's no legal framework for Russia's actions outside of might makes right or mutually assured destruction.
Not to mention Russia has serious demographic problems. I believe deaths passed births in Russia back in the 1970's. Communism makes countries old before they get rich. They have a declining population which makes defending their country most of which is a flat featureless plane with nothing defensible except for a few rivers from the Carpathian mountains all the way to the Ural mountains and Kazakhstan to the south very difficult. Control of Ukraine narrows the corridor that an invading army could use to penetrate the Russian interior and gives the Russian army more space to retreat into. If you look at the German campaigns of 1941 and 42 in the south they came dangerously close to cutting Russia off from its primary oil infrastructure in the south in the Caspian sea region. There is a large bend in the Don river which protects an army advancing through that corridor.
They have serious strategic issues in the east - 1.4 billion Chinese in a resource poor country with a resource rich country sparsely populated to its north. They face the risk of a 2 front war in the west and the east.
Putin is also ageing. He is 69. He is essentially a monarch, he probably has good doctors and maintains good physical fitness but statistically speaking he probably only has 15 years left. He needs to conclude this business now. Secure his borders while Russia still has the capacity demographically speaking to fight a major war and then likely wants to do what Nurusultan did in Kazakhstan and step down and head a council of state security while he grooms a successor. I would have to guess that Dmitry Medvedev would be high on the list given that he has been president before and is still relatively young. From what I understand though the most powerful of Putins "security men" in his inner circle is Igor Setchin.
his finite lifespan is an important factor, but a good king would just expand his kingdom as much as realistically possible and then leave a strong nation to his son to be the new king of.
so?
not a good reason to just give up and allow more to be on the border, good to keep the nukes aimed at you as low as possible, they can survive a certain amount but at some point it is too much.
Lol.
Gaddafi, and his value backed currency, were repeatedly called a threat global financial security. Such claims get made every time a nation strays from private central banking. The instigators tend to land up equally dead, as well.
we've seen the rhetoric from dems trying to turn USA citizens anti russia after were allies since the cold war, it's probably mainly to help them win elections with a boogeyman, they made up the trump russia connection for example. Putin probably saw that as a threat.
Libya had no real friends - Gadaffi was absolutely certifiably insane. He rejected the east and the west and acting like an international super villain in an attempt to get attention for his little green book about the "3rd revolutionary theory". He was happy to take the blame for things like Lockerbie that was likely the work of Hezbollah and the Syrian intelligence services because the US didn't know what to do about them but it could make a show of dropping some bombs on Libya because no one cared.
That is why no one protected him from the Wests regime change agenda, he had stepped on a lot of toes, insulted a lot of people and shit on a lot of lawns over his term in power. I have to wonder if behind closed doors the Russians did a dirty deal with the west that they would abstain on protecting Gadaffi in exchange for assurances on concessions in their sphere of influence when it came to Syria, Iran and Georgia?
really besides his currency he was trying to unite all of Africa, that couldn't be allowed.
Seems the elites really don't want a viable regional African power.
I believe this is likewise what motivated the destruction of Ian Smiths government in Rhodesia and the white government of South Africa. An independent wealthy regional power who could resist the globalists would damage the ability of multinationals to run roughshod over Africa.
OY VEY ... GOLD BACKED CURRENCY IS ANTISEMITIC!!!
I am also now trading on the ruble market.
Comment Reported for: Rule 16 - Identity Attacks
Comment Approved: No, this doesn't do that.
Based
Ruh roh... ww3 incoming. Thats a big no no to do that will make people mad.
I refuse to believe central bankers are moral enough to be designated as people.
But yes, otherwise you're right.
A lot of people are confusing a gold pegged Ruble with a gold backed Ruble. This announcement only pegs the value of the Ruble to the value of an amount of gold. I know the article mentions that the government is buying gold, but until the government has enough gold in its deposits to match the total outstanding Rubles in circulation, it’s not a gold backed currency.
I believe that the Russian government did this to limit the effects of inflation.
Could this move lead to a gold backed Ruble in the future?
I would assume that that is the intention of buying the gold bullion.
"could", yes, "will", much less certain.
Will know for certain if they start launching rockets for the asteroids.
An asteroid named psyche. Core made of gold.
oh shit niggers it's on
"This is what happens when you do real things, Steve."
You just know that a false flag that they're going to tie around Russia's neck is incoming. Question is are they going to inflict it on Europe this time or are we still the goat?
Is now the time to invest in gold bullion?
what is truly fascinating is that at the same time the price of Gold in USD is getting down. The people controlling it know it's going to blow, and they're making sure they can buy more until it's getting too late.
Wait.. am I supposed to buy gold or Rubles?
gold!
I'm actually not sure what the purpose of this is. All this will accomplish is increase the supply of Rubles to ensure a price ceiling for the value of the Ruble. Anytime the Rubles value increases, relative to other currencies, people will buy gold, sell to central bank for Rubles and then sell Rubles increasing the supply of Rubles and ensuring the value of Rubles doesn't go up too high.
The only possible explanation I can think of this is that Russia expects the change to requiring O&G to be paid for in Rubles will drive the value of the Ruble up significantly which may hurt exports so this is to cap the value of the Ruble. This should hurt imports and help exports presuming countries buy from Russia. Seems like Russia is trying to make themselves less reliant on everyone else and make everyone else more reliant on them.
Everyone will buy gold @ 50$ an ounce
Gram. Ounce is close to $2000.
Shit, that makes more sense se
Isn't the problem with a currency fixed against gold you can manipulate it with enough market share?
Buy enough gold to raise the price, sell it in a batch to crash the market and rebuy more to re raise the price?
This will be interesting because Russia, by virtue of it's lack of sea access and overall size is probably the most insulated country in the world from US power.
Bankers on suicide watch.
Holy shit, Nabiullina got actually driven into that corner?
Next step Putin raids private gold ownership in exchange for worthless rubles. Got it.
This is bad, artificially setting prices is one way to destroy the currency and opening up a black market. We can look at Venezuela official dollar exchange and the black market exchange.
which is functionally the same thing.
If I can choose to buy an ounce of gold for $2000 or trade $1600 for enough rubles to buy an ounce of gold, then the price of gold is $1600.
More importantly, it sets the value of a dollar at 1/1600 of an ounce of gold, which it is not worth on its own without being backed by oil as a default global currency, which Russia also put a stop to during this same process.
Since it is not worth that amount on its own, nations will be dumping their dollars and hyperinflation slaps us in the dick when we now have trillions more dollars whose IOU is being called.
Venezuela's currency is fiat and thus only backed by government order. Russia is fixing theirs to gold and thus the exchange rate for the money is connected to the exchange rate for gold in other countries.
Isn't that exactly what Venezuela did with the dollar years ago and today they have the black market and the official market?
no the opposite
Explain
Go on, tell us.
Comment Reported for: Falsehoods
Comment Approved: This rule doesn't apply to opinions, analysis, or just being wrong.
Oh vey. Shut it down.
Comment Reported for: Rule 16 - Identity Attacks
Comment Approved: No, just a retarded meme.
Comment Reported for: Rule 16 - Identity Attacks
Comment Approved: No, this doesn't do that.