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.
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
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