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...-change-goals/

[SassyLady]

More

https://tribune.com.pk/story/2350050...h-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/...ound-familiar/

[SassyLady]

More about the dollar

https://www.theepochtimes.com/is-us-...k_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...l-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.