Topic: Russian ruble is scam - page 10. (Read 2260 times)

I read such answers and I have a strange feeling that I am back in the USSR in the 80's, where from all sockets there was "the West is on the verge of collapse, the Soviet economy is prospering, the West envies us", etc. propaganda nonsense, the purpose of which is self-indulgence and an attempt to distract from the gray reality and hopelessness in the USSR. Or I begin to believe in the existence of multiverse, where there is the same planet, the same people, but where Russia is doing well and the EU is "rotting"

Regarding the statement "several months ago, the US and EU media reported that the Russian military had exhausted its arsenal and could no longer continue the war" - could you provide a resource where you read this ?
There are still resources, no one has denied it, but their number has greatly decreased, and you have been observing for the last 9 months:
- "second army of the world" for 10 months takes 1 city of 40 sq km. Destroying there a huge amount of HIS equipment and HIS manpower.
- The Minister of Defense and other messengers from the Kremlin are begging all their rogue friends (Iran, North Korea,...) for shells, armaments....
- Any offensive actions of the terrorist army actually stand, after the shameful rout in the north and south of Ukraine...

Or did you think - since the stockpiles decreased - they all realized their hands and ended the war ?  No, Putin will be to the last Russian to try to realize his morbid fantasy of becoming tsar of "Muscovy and annex new lands"....

Hold on. Can you elaborate on where you get your data from. Let's start from the fact that EU has actual trading partners from developed countries and get supplies shipped without any problems. While Russia is being sanctioned by majority of civilized world. So do you really think they are that self sufficient. They weren't doing that well before the war.

My ex who lived there used to talk to me about the little differences. This was long before the war, and still after Soviet union became Russia. One thing that stuck to my mind was corruption, even back then. People who live whole lives in corrupted countries, have hard time believing that something actually works in elsewhere. Like government actually fixes infra that's broken, very efficiently and fast. And no one is taking bribes.

Here's some data about economy. Can you point out how and where we are doing worse?

https://european-union.europa.eu/principles-countries-history/key-facts-and-figures/economy_en
https://commission.europa.eu/strategy-and-policy/eu-budget_en

It could work in the short and mid term, as long as there are country that are not aligned or keep a neutral standing about the war of Ukraine, those are the most intereses ones in adquiring cheap energy by doing business with the Kremlin. In general, I see Russia as a provider of raw natural resources, because as far as I know, the exportation of refined goods is mostly dominated by China and India, at least in the Asian continent.

If Russia was not blessed with such huge reserves of gas, oil and ores, it would be having even a worse time rn.

And please tell me about words like
- "Russian goods" and "Russian labor"?
I don't know Russian goods Can you list what you have at home and in your office is of Russian production ?
And it would be very interesting to hear about clarification of what is "Russian labor force" ? I know that in very many areas - these are guest workers from the southern republics bordering Russia.
You probably mean "high quality, labor force that creates high added value of Russian goods" ? But this is related to the first question, and has no answer

Russia is one strong country that I know that had been trying her best to send there natural resources to part of the world for general circulation. I think op lack understanding and has no substantial explanation to back what he claimed. Even with so many sanction against Russia, Putin is still trying his best to make the Russian currency to meet up with it demands. Even though Russia is still in war with Ukraine, they are still maintaining the economy to a level where it would have fallen if Russia does not have what it takes repel any attack against them.

Next time add more weight to your letters, putting up one line sentence take quality out of the idea behind your post.

For the Russia ruble in as much as the country still stands there would be usage of the currency by their citizens as a country currency is part of a country's identity. Another default could only mean more investors departing away from the country which would have a torn on the country economy. The default of June 2022 is as a result of the economic sanctions imposed on Russia for it's invasion of Ukraine which has shut down payment routes with these sanctions getting tougher as time continues to pass.
My most concern is to see that these issues that led to the war been settled and things returning to normalcy with people having their normal lives back on both sides.

China has implemented a simple, reliable and working scheme. It found "fools" who agreed to "transplant" their economy to the yuan. This move solves two problems:
- export inflation
- supporting the economy
Bonus: there are "yuan slaves" who refused to interact with the international economy, abandoning the dollar. This means that ALL imports (not just Chinese), they will be forced to do through the Chinese yuan ! So the currency of the members of the club "economically unhealthy, to fight against the world evil, dollars and capitalists", was formed
But back to the country of the terrorist. And who needs the ruble and Russian goods ? By the way, can anyone tell us what these Russian goods are?
If China was able to sit down on the yuan not the most intelligent governments, then to sit down someone on the ruble - it must be absolutely complete IDIOTS. But there are no such people on earth. That means that Russia will never be able to repeat the Chinese version of the yuan

I recently read a thread about EURO being a scam, and now the Ruble. Well, although the title seems a bit like a clickbait to me, if it works by creating awareness on what fiat is and how the money works, it's worth a read.

In the case of the Russian currency, and the claim that it is backed by nothing, I think that it is not true: in part it is backed by Russian commodities, labor, and yes, political propaganda. So, there are tangible goods and powers that back it, but also psychological ones, like every other fiat currency.

I agree, it might be better if it was backed by gold, like in the old system, but we all know that it doesn't work like this anymore.

Obviously Russia may not be able to copy the Chinese methodology of devaluing the currency to keep the economy afloat. But they can try it for the short to medium term, i.e until the sanctions are in effect. At this point, they are overdependent on exporting various commodities (such a wheat, crude oil, oil products, potash fertilizer, natural gas, alumina.etc). If the currency gets devalued, then without a doubt the exporters are benefitting from it. But as you mentioned, this strategy will not work for Russia in the long term, unlike the case with China.

Yes. He didn't provide more info there which makes us confused if what he was trying to explain. But if I were to guess, it has something to do with the loan? Because he uses the word default there. Maybe fiat is that bad because their value decreases over time but I won't totally called them as a scam because people are still benefiting from them.

We need them to buy our needs except maybe if we are living on Venezuela or on those reported countries where the value of their money is almost zero now. In between Rubble and the US dollar, I think the US dollar is much better and stronger even though there are rumors that they are also in debt and they may not pay.

Not sure why they would try to do so, because even though it could make some sense, their biggest ally is China, a country that lives thanks to the high exportation rate, to the point they need to devaluate the Yuan to keep their competitiveness up to and not lose clients.

Russia cannot aspire to turn into a second China if they do not have the huge income of money China has and if they still have the international sanctions over them. That is a big diffference, China may be one of the biggest foes of USA, but both parts are aware they need each other to keep the economical quo status. USA does not need Russia economically, nor the Western Allies.

For now, it is about a handful of countries in the BRICS, Cuba and others which are willing to do business with the Kremlin. Imo

And the government cannot make a currency corridor, because this will lead to the growth of the shadow market. The exchange rate of the ruble is falling because more products are imported into the country than are exported from it. And this is a great opportunity for businesses to earn good money by opening production facilities in Russia.

Ruble has considerably weakened so far this year. At the beginning of the year, it was trading against the USD at a rate of 1 USD = 60 RUR. Now the exchange rate has gone down to 1 USD = 97 RUR. The fact that the Russian government is allowing this to happen, tells us what are their priorities. When the exchange rate goes down, it benefits the exporters. Those who export grain, oil and gas from Russia are benefitting from the devaluation of the Russian Ruble. At the same time, imports will be down since they have become more expensive.  Perhaps this is what the regime wants.

No ! And no one will ! That's exactly what I'm saying-- no one can:
- to back the currency with real gold
- to accept it as a new standard for international settlements !

The USA is no exception here, and it is pointless to argue about the problems that Nixon recognized, whether one likes the USA or not.

But let me clarify - the US dollar is not backed by gold, it is backed by economic, political, military, technological, .... and other advantages that are often unattainable by other countries and even unions !
That is why I explain - until there is a country/union with such a set of powerful characteristics - all the stories about replacing the dollar with some surrogates are just "wet dreams" and cheap populism !

Can you offer some coins backed by gold or any asset, even USD? There is no denying that the ruble is depreciating because of US and Western sanctions. But I remember there was a time when it returned to its pre-war value and now it's depreciated again. That suggests that the ruble will also be able to recover in the future. Moreover, it is important that the Russian economy remains resilient to millions of sanctions and cannot collapse or go bankrupt as many Western media are claiming.

1 ruble, now worth 1 cent. A strong ruble, with 40% of the world's resources behind it, the geopolitical leader of the world, the world's second army, oil and gas - on which the whole world depends. It is now worth 1 cent, 1/100th of a dollar, which is "not backed by anything", which "everyone refuses to give up".

That was of course a joke ! No, about 1 ruble=1 cent is a fact, a joke about the dollar not secured and not needed by anyone
And now it is not a joke at all - you know what the Russian government is proud of ? They are proud of the fact that due to this wild inflation, the volume of unsecured money supply (they consider it "profit" for some reason) increased by 1 trillion rubles !
Here are the news headlines "The government made a trillion on the collapse of the ruble" ?  

I agree with you. With the way things are going right now and how Putin is acting, wanting so absorb Ukraine badly, it will take for some time for everything to be better for the citizens. The effects of what happened cannot just be shoved back and act as if nothing happened, like everything can go back to the way it used to be in a snap. It will take years for everything to go back to normal, not even better.

Not really, other countries don't start invading neighboring countries and face sanctions that destroy their economy. Yes, they will do everything in their power but I am sure that most Russians will have to suffer from the currency devaluing. Regarding getting better, if the war continues, I don't think that being better is going to come to the citizens soon. Putin wants to absorb Ukraine so I am sure that he will do everything to do that including facing another default.

Today, no coins are backed by gold, the abolition of the gold standard was implemented in 1971 due to increased demand for the currency, while gold hoarding became increasingly difficult. It can be said that fiat is just a paper with no value, their value is determined by the government, so it is a government protected scam. It can collapse at any time when the government is no longer able to protect it.

The problem is that we do not know how much a currency is backed by gold. Officially, yes, it is backed by gold, but in reality, maybe all the vaults have been looted and instead of gold bars there are fake ones? There are real gold bars on the outside, but not inside. How do we know? We don't. We have to take your word for it. Bitcoin, at least it has the appearance of a blockchain.