Topic: The ruble is going to hell (not anymore?) - page 3. (Read 1047 times)
This is what happens when you have a dictator in power, he just mess up everything and still won't care about the opinion of his people. Invading Ukraine was bad, a nation they share cultural heritage with and both nations have families in each others country. Negotiation would have solve this war. I hope Putin realizes he made a mistake and call for a permanent cease fire.
And now Russia is thinking of accepting bitcoin for their oil and gas.
https://www.bbc.com/news/business-60870100
So to get away with the sanctions, Russia now is thinking of accepting bitcoin, not sure if this will be good for us as the US might mitigate this risk on bitcoin and for sure they are going to be scared.
Quote
Russia is considering accepting Bitcoin as payment for its oil and gas exports, according to a high-ranking lawmaker.
Pavel Zavalny says "friendly" countries could be allowed to pay in the crypto-currency or in their local currencies.
Earlier this week, Russian President Vladimir Putin said that he wanted "unfriendly" countries to buy its gas with roubles.
The move is understood to be aimed at boosting the Russian currency, which has lost over 20% in value this year.
Sanctions imposed by the UK, US and the European Union, following the invasion of Ukraine, have put a strain on Russia's rouble and raised its cost of living.
Pavel Zavalny says "friendly" countries could be allowed to pay in the crypto-currency or in their local currencies.
Earlier this week, Russian President Vladimir Putin said that he wanted "unfriendly" countries to buy its gas with roubles.
The move is understood to be aimed at boosting the Russian currency, which has lost over 20% in value this year.
Sanctions imposed by the UK, US and the European Union, following the invasion of Ukraine, have put a strain on Russia's rouble and raised its cost of living.
https://www.bbc.com/news/business-60870100
So to get away with the sanctions, Russia now is thinking of accepting bitcoin, not sure if this will be good for us as the US might mitigate this risk on bitcoin and for sure they are going to be scared.
Of course, do not underestimate the Russian leader. He acts quickly and accurately. He knows that the rejection of Russian gas for some European countries will have serious negative consequences. In this situation, there are two options. Or refuse to supply Russian gas, or pay for it in rubles. If countries decide to abandon Russian gas and terminate the contract for its supply, the price will rise on the stock exchange and this will only aggravate the situation
Another serious thing that might happen is the rising prices of basic necessities in European countries that refuse to buy oil from Russia in ruble, it's impossible to stop the vehicles supplying basic necessities from operating just because they want to go against the policies putin' on. European countries must be confused right now.I do not want to escalate the situation, but now it is not very clear who is going to hell
Of course, do not underestimate the Russian leader. He acts quickly and accurately. He knows that the rejection of Russian gas for some European countries will have serious negative consequences. In this situation, there are two options. Or refuse to supply Russian gas, or pay for it in rubles. If countries decide to abandon Russian gas and terminate the contract for its supply, the price will rise on the stock exchange and this will only aggravate the situation
Another serious thing that might happen is the rising prices of basic necessities in European countries that refuse to buy oil from Russia in ruble, it's impossible to stop the vehicles supplying basic necessities from operating just because they want to go against the policies putin' on. European countries must be confused right now. This method is used by Putin to retaliate against all the sanctions they get. Europe relies heavily on Russian gas and oil but other news says that this would violate existing contracts due to regular payments using Euros or USD. If Russia insists on accepting rubles only for countries that are not friendly to them then they will also lose the income that they also still need to pay for this war and all the costs in their countries, so in fact this condition gives european countries and Putin in confusing conditions.
https://www.reuters.com/business/energy/russian-demand-rouble-gas-payments-would-be-breach-contract-eu-leaders-say-2022-03-24/
https://www.reuters.com/business/energy/russian-demand-rouble-gas-payments-would-be-breach-contract-eu-leaders-say-2022-03-24/
I'm not exactly a Putin fan but I partly understand. It is a retaliatory action against the retaliatory actions that the countries that buy from him have taken.
When there is a breach of contract by the other party, what you can do is to consider the contract as broken, which in practice in this case would mean that they don't have to buy gas from Russia. But if they want to continue to do so, they will have to pay you in rubles.
This has another implication, and that is that Saddam Hussein was killed because he wanted to be paid for his oil in euros instead of dollars. With Putin they will not be able to do much, at least not that easily, and he is not the only threat to the hegemony of the dollar at present, but this would be the subject of another thread.
Of course, do not underestimate the Russian leader. He acts quickly and accurately. He knows that the rejection of Russian gas for some European countries will have serious negative consequences. In this situation, there are two options. Or refuse to supply Russian gas, or pay for it in rubles. If countries decide to abandon Russian gas and terminate the contract for its supply, the price will rise on the stock exchange and this will only aggravate the situation
This method is used by Putin to retaliate against all the sanctions they get. Europe relies heavily on Russian gas and oil but other news says that this would violate existing contracts due to regular payments using Euros or USD. If Russia insists on accepting rubles only for countries that are not friendly to them then they will also lose the income that they also still need to pay for this war and all the costs in their countries, so in fact this condition gives european countries and Putin in confusing conditions.
https://www.reuters.com/business/energy/russian-demand-rouble-gas-payments-would-be-breach-contract-eu-leaders-say-2022-03-24/
https://www.reuters.com/business/energy/russian-demand-rouble-gas-payments-would-be-breach-contract-eu-leaders-say-2022-03-24/
I'm not exactly a Putin fan but I partly understand. It is a retaliatory action against the retaliatory actions that the countries that buy from him have taken.
When there is a breach of contract by the other party, what you can do is to consider the contract as broken, which in practice in this case would mean that they don't have to buy gas from Russia. But if they want to continue to do so, they will have to pay you in rubles.
This has another implication, and that is that Saddam Hussein was killed because he wanted to be paid for his oil in euros instead of dollars. With Putin they will not be able to do much, at least not that easily, and he is not the only threat to the hegemony of the dollar at present, but this would be the subject of another thread.
When European countries have to pay for gas supplies not in dollars or euros, but in rubles, the ruble will undoubtedly strengthen. Nobody will like this solution, but there is no choice. If European countries buy gas from Russia, they will boost the Russian economy and strengthen the ruble. Of course, this will require a change in long-term contracts, but in our time everything can be.
EU countries will likely not buy gas from Russia after the war in Ukraine. Today the US president started discussing with other countries like Canada and EU countries on how to stop purchase of Russian gas and strengthen the sanctions. Rubie will not be used in EU for trade instead euro or dollar.
Yes, but the question is how long it will take to implement that. They're not going to stop buying Russian gas today, is an issue that EU leaders were discussing yesterday:
"Germany, which gets 55% of its gas imports from Russia, however, has warned that an immediate ban would cause unemployment and stop drivers filling their cars. To stop using Russian energy “from one day to the next would mean plunging our country and all of Europe into recession”, the chancellor, Olaf Scholz, said on Wednesday.
He was supported by Belgium’s prime minister, Alexander De Croo, who said an oil embargo “would have a devastating effect on the European economy and I don’t think it’s necessary”.
So in the short term they're going to have to buy rubles, that's inevitable, and with that, the ruble will appreciate.
https://www.reuters.com/business/energy/russian-demand-rouble-gas-payments-would-be-breach-contract-eu-leaders-say-2022-03-24/
When European countries have to pay for gas supplies not in dollars or euros, but in rubles, the ruble will undoubtedly strengthen. Nobody will like this solution, but there is no choice. If European countries buy gas from Russia, they will boost the Russian economy and strengthen the ruble. Of course, this will require a change in long-term contracts, but in our time everything can be.
EU countries will likely not buy gas from Russia after the war in Ukraine. Today the US president started discussing with other countries like Canada and EU countries on how to stop purchase of Russian gas and strengthen the sanctions. Rubie will not be used in EU for trade instead euro or dollar.
Yes, but the question is how long it will take to implement that. They're not going to stop buying Russian gas today, is an issue that EU leaders were discussing yesterday:
"Germany, which gets 55% of its gas imports from Russia, however, has warned that an immediate ban would cause unemployment and stop drivers filling their cars. To stop using Russian energy “from one day to the next would mean plunging our country and all of Europe into recession”, the chancellor, Olaf Scholz, said on Wednesday.
He was supported by Belgium’s prime minister, Alexander De Croo, who said an oil embargo “would have a devastating effect on the European economy and I don’t think it’s necessary”.
So in the short term they're going to have to buy rubles, that's inevitable, and with that, the ruble will appreciate.
When European countries have to pay for gas supplies not in dollars or euros, but in rubles, the ruble will undoubtedly strengthen. Nobody will like this solution, but there is no choice. If European countries buy gas from Russia, they will boost the Russian economy and strengthen the ruble. Of course, this will require a change in long-term contracts, but in our time everything can be.
EU countries will likely not buy gas from Russia after the war in Ukraine. Today the US president started discussing with other countries like Canada and EU countries on how to stop purchase of Russian gas and strengthen the sanctions. Rubie will not be used in EU for trade instead euro or dollar.
After Europe saw an aggressive Russia, most states will switch to renewable energy sources much faster. They have already decided to get rid of dependence on Russian oil and gas very quickly.
Yes, some states will significantly lose from the imposed sanctions against Russia. However, they will simply have a destructive effect on Russia. There is simply no other way. A dollar there already costs 300 rubles, and it seems that this is not the limit, but only the beginning.
In general, in my opinion, with such an organization as the UN, it is necessary to create rapid reaction forces in order to quickly repel the aggressor in such cases by military means, and not by economic ones. It would be much more efficient.
Yes, some states will significantly lose from the imposed sanctions against Russia. However, they will simply have a destructive effect on Russia. There is simply no other way. A dollar there already costs 300 rubles, and it seems that this is not the limit, but only the beginning.
In general, in my opinion, with such an organization as the UN, it is necessary to create rapid reaction forces in order to quickly repel the aggressor in such cases by military means, and not by economic ones. It would be much more efficient.
Exactly. In order to repel Russia, military action must be enforced. Economic sanctions are only a short-term remedy to slow down the invasion (not stop it). Russia can simply rely on China or even crypto to make its economy rise from the ground up. I believe Western countries and the EU haven't taken military action against Russia simply because they're afraid of doing so. Putin already has nukes at his disposal, so a direct war with Russia will only lead us to a full-scale nuclear disaster.
It's most likely Russia will take over Ukraine, leading towards the further deterioration of the world order. A victory over Ukraine will simply mean that democracy has lost. How will Russia's currency perform in the future, is beyond me. Putin is a wise person, so it's probable he has a plan to get Russia back on its feet. Just my opinion
Will this work? It is impossible to know as we do not know what kind of plans Putin has for the region, and we have yet to see the long term effects the sanctions will have on the Russian economy.
When European countries have to pay for gas supplies not in dollars or euros, but in rubles, the ruble will undoubtedly strengthen. Nobody will like this solution, but there is no choice. If European countries buy gas from Russia, they will boost the Russian economy and strengthen the ruble. Of course, this will require a change in long-term contracts, but in our time everything can be.
Although bitcoin is still new for now, it is definitely a really good option for anyone that wants to use it as a hedge for value. First it has a limited supply, and by having a limited means that it is going to be increasing in value as more and more people continues to invest in the bitcoin market.
A lot of people are still getting to know about Bitcoin, we should be looking forward to more investors in the future. And there are also institutions that are now considering bitcoin an asset to invest in. There are already those of them that have started investing and they will keep investing, while more continues to join and invest.
It is definitely a great feeling that you could have your value always at the same place. Back in the day people used houses for the same calculation. Like if you had 100 bucks in 90's, that would be very low but you could get a small land for that, today you can't even buy a basket full of groceries with that, whereas the land now costs 15k. So today bitcoin is used the same way, 5 years ago dollar was a lot more valuable and now worths a lot less but bitcoin worths a lot more so you are saving yourself.A lot of people are still getting to know about Bitcoin, we should be looking forward to more investors in the future. And there are also institutions that are now considering bitcoin an asset to invest in. There are already those of them that have started investing and they will keep investing, while more continues to join and invest.
I believe that we should not be shocked if somehow bitcoin goes triple or even higher soon if the governments fail to keep this crisis at bay, fiat world could get worse and that would only help crypto.
After Europe saw an aggressive Russia, most states will switch to renewable energy sources much faster. They have already decided to get rid of dependence on Russian oil and gas very quickly.
Yes, some states will significantly lose from the imposed sanctions against Russia. However, they will simply have a destructive effect on Russia. There is simply no other way. A dollar there already costs 300 rubles, and it seems that this is not the limit, but only the beginning.
In general, in my opinion, with such an organization as the UN, it is necessary to create rapid reaction forces in order to quickly repel the aggressor in such cases by military means, and not by economic ones. It would be much more efficient.
Yes, some states will significantly lose from the imposed sanctions against Russia. However, they will simply have a destructive effect on Russia. There is simply no other way. A dollar there already costs 300 rubles, and it seems that this is not the limit, but only the beginning.
In general, in my opinion, with such an organization as the UN, it is necessary to create rapid reaction forces in order to quickly repel the aggressor in such cases by military means, and not by economic ones. It would be much more efficient.
Exactly. In order to repel Russia, military action must be enforced. Economic sanctions are only a short-term remedy to slow down the invasion (not stop it). Russia can simply rely on China or even crypto to make its economy rise from the ground up. I believe Western countries and the EU haven't taken military action against Russia simply because they're afraid of doing so. Putin already has nukes at his disposal, so a direct war with Russia will only lead us to a full-scale nuclear disaster.
It's most likely Russia will take over Ukraine, leading towards the further deterioration of the world order. A victory over Ukraine will simply mean that democracy has lost. How will Russia's currency perform in the future, is beyond me. Putin is a wise person, so it's probable he has a plan to get Russia back on its feet. Just my opinion
Of course bitcoin has never seen a war before, unlike gold who has proven itself to be a good hedge. However, bitcoin as digital gold could be the next great asset that could be used right now. Specially if you are in either of the two countries, when your money is worthless. So the best thing to do is this situation is to have your money hedge it to bitcoin, very simply if you wanted to protect your wealth during and after the war.
Although bitcoin is still new for now, it is definitely a really good option for anyone that wants to use it as a hedge for value. First it has a limited supply, and by having a limited means that it is going to be increasing in value as more and more people continues to invest in the bitcoin market.A lot of people are still getting to know about Bitcoin, we should be looking forward to more investors in the future. And there are also institutions that are now considering bitcoin an asset to invest in. There are already those of them that have started investing and they will keep investing, while more continues to join and invest.
When a nation tries to take over a whole another nation, and if that victim nation is also white, then people will burn worlds to put up a front, especially if the attacker is already an enemy in mind. It is clear to me that we are talking about Russia and how the world already hates them for so many years, it is not a new thing. We had "red scare" in the USA like 60 years ago or so as well and it wasn't a new thing.
So, we should not be shocked that the world fell right back into that once again. As long as Russia is Russia, and the way they live is the same, and their culture is the same, the west will find a way to hate them, and sometimes they are right.
So, we should not be shocked that the world fell right back into that once again. As long as Russia is Russia, and the way they live is the same, and their culture is the same, the west will find a way to hate them, and sometimes they are right.
Of course bitcoin has never seen a war before, unlike gold who has proven itself to be a good hedge. However, bitcoin as digital gold could be the next great asset that could be used right now. Specially if you are in either of the two countries, when your money is worthless. So the best thing to do is this situation is to have your money hedge it to bitcoin, very simply if you wanted to protect your wealth during and after the war.
Although bitcoin is still new for now, it is definitely a really good option for anyone that wants to use it as a hedge for value. First it has a limited supply, and by having a limited means that it is going to be increasing in value as more and more people continues to invest in the bitcoin market.A lot of people are still getting to know about Bitcoin, we should be looking forward to more investors in the future. And there are also institutions that are now considering bitcoin an asset to invest in. There are already those of them that have started investing and they will keep investing, while more continues to join and invest.
We don’t need to ask, one thing for sure is that it is going to affect every company In one way or the other.
But, I don’t know why a lot of people there has decided to withdraw their money from the ATM like you have said. If they withdraw their money they are still holding the same Fiat, unless they have plans to exchange it for Bitcoin.
If they should exchange it for Bitcoin they would be more safe as Bitcoin would continue to have more value and also save them from their Fiat money that has been depreciating as of recent. Anyone living in Russia needs to look for a solution and Bitcoin is the solution they all really need.
But, I don’t know why a lot of people there has decided to withdraw their money from the ATM like you have said. If they withdraw their money they are still holding the same Fiat, unless they have plans to exchange it for Bitcoin.
If they should exchange it for Bitcoin they would be more safe as Bitcoin would continue to have more value and also save them from their Fiat money that has been depreciating as of recent. Anyone living in Russia needs to look for a solution and Bitcoin is the solution they all really need.
Well, as you know, politics is something irreverent to everything that represents good customs, on the one hand there is talk about Venezuela's oil, and yes, they are allies of Russia, but on the other hand the USA negotiates with Venezuela and on the In a short time the Colombian government went to the same president to speak to Biden in the White House to tell him that Colombian oil is better than Venezuelan oil, then the roles are reversed and now the business is in Colombia, there is talk that there are Russian bases in Venezuela , and that there are US bases in Colombia, then this game of give and take is simply to have a status quo and guarantee US consumerism, the US is not interested in Ukraine, it will no longer enter NATO, we must be realistic, Russia it will not leave it anymore, now the USA's concern is to be well with them, and well with Europe, then the USA wants to be well with God and the Devil, so these are things that they do not see in Europe, or they see it and turn a blind eye, That's why I say, the conflict is political or geo-political where the only ones who benefit are the rulers and the people suffer, in this war the people never win.
Now the US is pampering not only to Venezuela, but to Iran as well. Still, the increased output from these two, on top of the increase from the other OPEC nations won't be able to fill the shortfall from Russia. If the Americans and their allies go ahead with their stupid move of prohibiting oil and gas exports from Russia, then the global economy will collapse in a matter of few months. Crude has already crossed three digits and is on course for $150 per barrel in the short term and $200+ in the long term. Natural gas prices are now at oil equivalent rates of $300-$400 per barrel in Europe.
Congratulations to all, especially Russia
"Venezuela will sell oil to the United States."
The world is not such an idiot as Russia and the Kremlin underfunded. The world wants to live and develop and not degrade and close.
Caracas intends to increase oil production in 2022 to 2-3 million barrels per day and sell it in the United States.
"Venezuela is open to investment, oil and gas production, oil and gas stability around the world, including the United States. We are ready to sell US oil and gas, we must not politicize economic issues," said Petroleos de Venezuela (PDVSA). President Nicolas Maduro.
Nothing personal, just business
"Venezuela will sell oil to the United States."
The world is not such an idiot as Russia and the Kremlin underfunded. The world wants to live and develop and not degrade and close.
Caracas intends to increase oil production in 2022 to 2-3 million barrels per day and sell it in the United States.
"Venezuela is open to investment, oil and gas production, oil and gas stability around the world, including the United States. We are ready to sell US oil and gas, we must not politicize economic issues," said Petroleos de Venezuela (PDVSA). President Nicolas Maduro.
Nothing personal, just business
I'd consider buying oil from Venezuela a dumb move since the country is a long-time ally of Russia. Financing Venezuela would be no different than financing Russia itself. The same can be said about doing business with China. As long as Western countries and the EU keep dealing with Russia's allies, their efforts to "punish" Putin will be futile. The Ruble may be going to hell, but that may not last for long as Russia seeks alternative ways to save its economy. With China by its side, anything's possible. These are uncertain times we're living in, so we should be prepared for the worst. Just my thoughts
Not a ruble is going to hell. The whole country is going to hell, in which, in the near future, a real collapse and division into many independent states, and I hope with the control of the established authorities. After the new sanctions on hydrocarbons adopted yesterday, Russia no longer has a chance. What you are seeing now is agony. You know, like a person in the final stages of cancer - he seems to be alive and breathing, and even speaks and communicates, but - there is no way back, death is ahead, and there is nothing to help. Just waiting for the final...
That proves that HODLing Bitcoin is good as a hedge. HODLing Bitcoin is not only as a "financial hedge", but as a hedge against the people/leaders in your government in case they make a stupid decision.
Bitcoin has never faced a war situation between the two superpowers before. This means that we cant say with conviction that it will act as a hedge in case this situation developed into a world war. Since bitcoin is currency pegged with the stocks, so if the stocks dump in the world war, then bitcoin will dump too. There is no value for fiat currencies, especially for the country in which the sanctions are proposed and applied. People of russia have no choice but to sell ruble and buy something better like bitcoin.
Of course bitcoin has never seen a war before, unlike gold who has proven itself to be a good hedge. However, bitcoin as digital gold could be the next great asset that could be used right now. Specially if you are in either of the two countries, when your money is worthless. So the best thing to do is this situation is to have your money hedge it to bitcoin, very simply if you wanted to protect your wealth during and after the war.
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