Collapse of dollar

[SassyLady]

I found this to be interesting. From a poster on GAB called NeonRevolt.


I don't think people realized what just happened over the past few days, so I'm going to try to explain what I'm seeing:

The Russian central bank pegged 1 gram of gold to 5000 Rubles (currently, about 50 bucks).

At the same time, Putin made it so that Russian gas and oil can only be purchased in Rubles.

Meaning: Putin basically just pegged Russian oil and gas to gold, using paper rubles as a proxy.

Meaning: Europe will need to either buy Rubles from Putin in gold, in order to buy gas and oil, or they will have to buy directly in gold. Which means, there will soon be a lot more demand for rubles.

Currently, the forex rate for rubles to dollars is about 100:1.

But... with 5000 rubles now equaling 1 gram of gold, and oil being priced directly in gold - you're going to see a massive price disruption in these FOREX markets, in terms of how much gold a dollar can actually still buy.

Foreign countries holding our dollar debt notes in reserve will see less of a use for them, and will want to start dumping them, in order to get something more stable, something which holds its value.

Basically any currency pegged to gold now will fit the bill. Which means those countries - countries like Japan - will be dumping their dollar debt as fast as they can. They're are NOT going to go down with the ship. And they will move into more stable currencies - like the Ruble.

Which will have a deflationary effect on the Ruble, making it more valuable over time.

Which means Putin will be able to re-peg the Ruble to Gold at whatever rate he wants, down the line. It's 5000 rubles today. Tomorrow, it might be 500. And then 100. And then 10.

This also means all those excess dollars being dumped by foreign nations are about to come home and cause even worse hyperinflation than we're seeing.

Is it any wonder Biden is up on stage pleading with Europeans for regime change in Russia? He's about to have masses of angry and starving people marching through the streets here at home, demanding answers.

[fj1200]

No chance.

[SassyLady]

No chance.
Explain

[fj1200]

Explain

None of that will occur. There's so much gobbledygook from the first cause to the last effect with false assumptions and incorrect premises that the mind is boggled. I'll just wait to be wrong rather than waste any brain cells. Bump this thread when there's proof that Putin has discovered the magic elixir to make them anywhere near a partially relevant economic entity beyond gas and oil.

[SassyLady]

None of that will occur. There's so much gobbledygook from the first cause to the last effect with false assumptions and incorrect premises that the mind is boggled. I'll just wait to be wrong rather than waste any brain cells. Bump this thread when there's proof that Putin has discovered the magic elixir to make them anywhere near a partially relevant economic entity beyond gas and oil.

Well, he is demanding payments in rubles. First step.

[fj1200]

Well, he is demanding payments in rubles. First step.

He's also invading a sovereign country and making particular demands. If he was actually smart about this he would have taken these steps before becoming a global pariah. To many things need to be true for the OP to make any sense and it just doesn't pass the reasonableness test. IMHO.

[SassyLady]

He's also invading a sovereign country and making particular demands. If he was actually smart about this he would have taken these steps before becoming a global pariah. To many things need to be true for the OP to make any sense and it just doesn't pass the reasonableness test. IMHO.
Nothing Putin is doing seems reasonable. Doesn't mean it isn't happening.

[fj1200]

Nothing Putin is doing seems reasonable. Doesn't mean it isn't happening.

Putin is not going to cause hyper inflation the in the United States. The only entity capable of doing that is the Federal Reserve. Nobody will admit it but the roots of today's inflation go back to trump. biden isn't doing it any favors either.

[Kathianne]

Putin is not going to cause hyper inflation the in the United States. The only entity capable of doing that is the Federal Reserve. Nobody will admit it but the roots of today's inflation go back to trump. biden isn't doing it any favors either.

Spending priorities different, both big spenders. Covid Spending on both, though imo the front end Spending was more important. He'll the dems want more, since some unspent Covid money was used for Ukraine.

Imo the $$$ spent for vaccines, distribution, etc., was justified. The "free money " was not.

[SassyLady]

More info on Russia and how the sanctions might affect globalists climate change agenda.

https://theconservativetreehouse.com/blog/2022/03/28/did-the-globalists-just-flinch-on-russian-sanctions-in-order-to-keep-control-of-global-climate-change-goals/

[SassyLady]

More

https://tribune.com.pk/story/2350050/india-set-to-bypass-us-dollar-for-trade-with-russia?amp=1

[fj1200]

Spending priorities different, both big spenders. Covid Spending on both, though imo the front end Spending was more important. He'll the dems want more, since some unspent Covid money was used for Ukraine.

Imo the $$$ spent for vaccines, distribution, etc., was justified. The "free money " was not.

and trump's jawboning of Powell at the Fed a la LBJ and McChesney Martin.

https://www.marketplace.org/2020/10/27/a-president-and-his-fed-chair-clash-sound-familiar/

[SassyLady]

More about the dollar

https://www.theepochtimes.com/is-us-dollar-under-attack_4380256.html

[SassyLady]

Article from ZeroHedge


And I would caution people that the next time you go to make fun of a Austrian economist or a skeptic of monetary policy, that you look back on exactly how accurate predictions that were being laughed at just weeks ago are turning out to be.

I always predicted that it wasn’t a question of us all being wrong, like many people thought we were, it was just a question of when our thesis would play out.

And that time looks like now.
https://www.zerohedge.com/markets/we-have-reached-end-monetary-policy-we-all-once-knew-it

[NightTrain]

I haven't been keeping up with developments on it, but Putin's plan to only accept rubles for energy payments was rejected by Europe - those contracts spelled out US dollar or Euros, so it was a breach of contract trying to prop up the ruble that way.

[fj1200]

Russia is not going to break the dollar.

[SassyLady]

Russia is not going to break the dollar.
Not by itself ... Biden is helping with inflation. India and China and most of EU are still buying oil.

13911

[fj1200]

Not by itself ... Biden is helping with inflation. India and China and most of EU are still buying oil.

Russia is not going to break the dollar. At all.

And what is biden doing to inflation again?




Donald J. Trump
2018
revenues
spending
diff
GDP
rev by gdp
spend by gdp
diff



2019
3,463.4
4,447.0
-983.6
21,223.9
16.3
21.0
-4.6



2020
3,421.2
6,550.4
-3,129.2
20,999.7
16.3
31.2
-14.9


estimate
2021
3,580.8
7,249.5
-3,668.7
22,030.0
16.3
32.9
-16.7













Joesph R. Biden
2022
4,174.2
6,011.1
-1,837.0
23,499.7
17.8
25.6
-7.8


estimate
2023
4,641.0
6,013.0
-1,371.9
24,563.3
18.9
24.5
-5.6



https://www.presidency.ucsb.edu/statistics/data/federal-budget-receipts-and-outlays

[hjmick]

Not by itself ... Biden is helping with inflation. India and China and most of EU are still buying oil.


Putin ally China rejects Russian oil despite steep discounts amid Western sanctions, report says (https://www.msn.com/en-us/news/world/putin-ally-china-rejects-russian-oil-despite-steep-discounts-amid-western-sanctions-report-says/ar-AAVVMVq?li=BBnb7Kz)

[Gunny]

Putin ally China rejects Russian oil despite steep discounts amid Western sanctions, report says (https://www.msn.com/en-us/news/world/putin-ally-china-rejects-russian-oil-despite-steep-discounts-amid-western-sanctions-report-says/ar-AAVVMVq?li=BBnb7Kz)China's not ready. When it is, it won't be some half-ass plan like Putin's. If China isn't preempted, when it moves, everyone will be toast.

This sudden, latest covid outbreak came at quite the opportune time for China, did it not? Just in time to lock the country down and bow out of World affairs. Could be a coincidence :)

[SassyLady]

https://markets.businessinsider.com/news/commodities/dollar-vs-yuan-china-buys-russian-oil-coal-ukraine-sanctions-2022-4

[Tyr-Ziu Saxnot]

I suspect that Russia and China have cooked up a plan to gain dominance over USA.
Putin fails to see that China will stab Russia in the back to come out far ahead.
Watch as the next two years unfold.
China seeks to make its currency replace that of USA.
They damn sure will not let Russia's currency gain any sort of worldwide dominance.
In my opinion, Putin/Russia is now foolishly playing the same type of role as did Stalin to Hitler.
Before the ( should have been seen ) coming stab..-- Tyr-- :saluting2:

[SassyLady]

From The Hill


The hegemony of the U.S. dollar was reliant on America’s hegemonic status in the world. With the world moving toward multipolarity and with the U.S. no longer the world’s largest trading nation (it is China) the power and status of the dollar could be waning as well. Given the increasing role played by China, the European Union and other countries of the global south, the dollar might just be witnessing its descent.

It is a matter of when the U.S. dollar loses its dominance among global currencies — not will. The economic sanctions following the Russian invasion could have just accelerated that downfall.

https://thehill.com/opinion/international/3262514-are-we-witnessing-the-beginning-of-de-dollarization/

[fj1200]

The majority of the world is not going to use a non-floating currency for reserve purposes.

[SassyLady]

The majority of the world is not going to use a non-floating currency for reserve purposes.
Source?

[fj1200]

Source?

My brain, common sense, currency markets...

Stuff like this...

https://www.bloomberg.com/opinion/articles/2022-03-03/dethroning-the-dollar-as-the-world-s-reserve-currency-won-t-be-easy

And a general non-understanding of why you so want to believe that a pissant country is going to lead the world to against the US dollar as a reserve currency when they can't even make it past Ukraine.

[SassyLady]

My brain, common sense, currency markets...

Stuff like this...

https://www.bloomberg.com/opinion/articles/2022-03-03/dethroning-the-dollar-as-the-world-s-reserve-currency-won-t-be-easy

And a general non-understanding of why you so want to believe that a pissant country is going to lead the world to against the US dollar as a reserve currency when they can't even make it past Ukraine.
Well, I have a brain as well. And common sense. And I've posted several sources that are saying the dollar is shaky.

And I have a general non-understanding why you can't even entertain the thought that China, Russia and India are working to devalue the dollar. They're finally waking up to the fact that the dollar allows the U.S. to be the power broker in the world.

And even your source says it won't be easy but didn't say it can't happen.

The WEF is also working to devalue the dollar, putting the U.S. in a position to depend on global digital currency using blockchain technology.

https://www.israel365news.com/268206/world-economic-forum-calls-for-one-world-currency-a-tower-of-babel-doomed-to-collapse-israeli-economist-warns/

[fj1200]

Well, I have a brain as well. And common sense. And I've posted several sources that are saying the dollar is shaky.

And I have a general non-understanding why you can't even entertain the thought that China, Russia and India are working to devalue the dollar. They're finally waking up to the fact that the dollar allows the U.S. to be the power broker in the world.

And even your source says it won't be easy but didn't say it can't happen.

The WEF is also working to devalue the dollar, putting the U.S. in a position to depend on global digital currency using blockchain technology.

https://www.israel365news.com/268206/world-economic-forum-calls-for-one-world-currency-a-tower-of-babel-doomed-to-collapse-israeli-economist-warns/

I question your sources. And the BRIC economies would very much like to trade in non-dollar currencies but have been unsuccessful for years and will continue to be unsuccessful for many more years because none of them have the advantages of the US Dollar.

WEF :rolleyes:

[SassyLady]

And I question yours. Too much MSM with many lies to believe a lot of it.

And if you're not up-to-date on WEF then you have your head in the sand.

[SassyLady]

https://bullionexchanges.com/blog/russia-pegs-ruble-to-gold-what-does-that-mean-to-the-world-order/

[fj1200]

And I question yours. Too much MSM with many lies to believe a lot of it.

But in a year your hair-on-fire sources will not have panned out. They are populist clickbait that might start with something that is true but try to extend into things that are not true and unlikely to ever be true. Pegging to gold means nothing if Russia isn't willing to exchange gold for rubles.


And if you're not up-to-date on WEF then you have your head in the sand.

Yeah OK.

[fj1200]

Dollar collapsed yet?

https://www.cnbc.com/quotes/.DXY

[fj1200]

Surely by now.


Dollar collapsed yet?

https://www.cnbc.com/quotes/.DXY

[fj1200]

https://www.cnbc.com/quotes/.DXY

Evidence of why I'm not worried about CBDC EO 4104516120234354320350.....

The markets don't seem to be worried about it.

[Gunny]

Russia is not going to break the dollar.I'm more worried Biden is than Russia.

[Black Diamond]

Dollar collapsed yet?

https://www.cnbc.com/quotes/.DXY

It's almost even with the euro isn't it? But just because Xyz calamity didn't happen this week doesn't mean there is nothing to be concerned about . I don't trust John Kerry and I don't trust Klaus Schwab.
Date setting really shoots holes in people's.... Prophecies.

[Black Diamond]

I'm more worried Biden is than Russia.

Putin and Biden could each do something drastic. In the wake of the last six months this hasn't been given enough attention.

[Gunny]

Putin and Biden could each do something drastic. In the wake of the last six months this hasn't been given enough attention.The rhetoric between Putin and Biden as ramped up in the past week or so.

I don't rule out Biden doing it ahead of Midterms along with everything else including the kitchen sink, fair/legal or no, to end up with a Dem Congress in November.

The Republicans are playing right into the left's hands so far.

[fj1200]

I'm more worried Biden is than Russia.

Biden can't do anything really. Most of the fault lies with the Fed aided by some massive stimulus, see trump and biden, and executive haranguing of the Fed chair, see trump.


It's almost even with the euro isn't it? But just because Xyz calamity didn't happen this week doesn't mean there is nothing to be concerned about . I don't trust John Kerry and I don't trust Klaus Schwab.
Date setting really shoots holes in people's.... Prophecies.

Because the dollar is getting stronger.

Kerry, what's he doing now??? and Klaus, is probably too busy not smelling his own emanations.

[fj1200]

And I've posted several sources that are saying the dollar is shaky.


And I question yours.

How are our respective sources doing?

[Black Diamond]

Dollar collapsed yet?

https://www.cnbc.com/quotes/.DXY

It didn't happen today, so therefore it won't.

[fj1200]

It didn't happen today, so therefore it won't.

Could happen. I hear the Euro is continuing its slide and the Pound got hammered after the Brits released their tax plan.

[Black Diamond]

Could happen. I hear the Euro is continuing its slide and the Pound got hammered after the Brits released their tax plan.

It is at this point. But it is very hard to predict the future. We take a best guess and hope. I understand some guesses are more educated than others.
But hell not many predicted the 2008 crash..

[fj1200]

It is at this point. But it is very hard to predict the future. We take a best guess and hope. I understand some guesses are more educated than others.
But hell not many predicted the 2008 crash..

That's kind of the key isn't it?

People are always predicting some sort of calamity is just around the corner and sometimes a calamity is just around the corner but correctly predicting is more important to me than just predicting. It's a matter of causation vs. correlation. Also brings up a quote I have in my signature.


"when socialism fails, blame capitalism and demand more socialism."

[fj1200]

https://www.cnbc.com/quotes/.DXY

Uh oh. Looked like the dollar was collapsing for about a week there. And then it wasn't.

[fj1200]

https://www.cnbc.com/quotes/.DXY

Cue up Tommy Petty and Freefallin'? Actually I think the dollar could come down off its highs a bit. I think the Fed has been too aggressive with their quantitative tightening.

[fj1200]

https://www.cnbc.com/quotes/.DXY

Russia: Masters of Monetary Manipulation yet?