What happens if Russia introduces the gold standard??? - Page 2 - Politics Forum.org | PoFo

Wandering the information superhighway, he came upon the last refuge of civilization, PoFo, the only forum on the internet ...

"It's the economy, stupid!"

Moderator: PoFo Economics & Capitalism Mods

Forum rules: No one line posts please.
#15220020
Interesting subject. Let's see what the truth is. (To save reading this you can know that Russia's Ruble is in big trouble as is its economy.)

Moscow Times says:

The Russian ruble surged by more than 10% on Tuesday in Moscow trading, as investors saw signs of progress in peace talks between Ukrainian and Russian negotiators.

The currency was trading below 83 against the U.S. dollar Tuesday afternoon — its strongest reading in a month of ultra-volatile trading for the currency, which has been targeted by Western sanctions.

“The negotiations in Istanbul are providing support to all ruble assets today,” said Dmitry Babin, an analyst with the Moscow-based BKS Investments brokerage.

Tuesday’s gains mark an impressive recovery for the currency, which slipped below 150 against the U.S. dollar in early march after the West froze around $300 billion of Russia’s Central Bank assets.

Russia responded by forcing exporters to sell at least 80% of their hard currency earnings — a move which has provided strong support for the bruised currency as a result of record high commodities prices. Critics have called for an energy embargo on Russia to stop Moscow being able to use its multi-billion dollar exports to prop up the currency.



The U.S. has stopped purchases of Russian oil and several Western trading companies have stopped dealing with Russian oil since the invasion, but European countries remain heavily reliant on Russian gas, which accounts for around 40% of the bloc’s energy.

Before Russia invaded Ukraine, the currency was trading at around 80 against the U.S. dollar.

The Central Bank has also introduced strict capital controls, banning companies from sending foreign currency out of the country and prohibiting Russians from buying foriegn currencies in cash. On the Moscow Exchange, brokers are forced to charge a 12% commision on purchase orders for foreign currencies — a move by Russian regulators to help stave off a run on the currency.

“The ruble is strengthening as a result of a significant fall in demand for foreign currency — a consequence of the Central Bank’s restrictions,” said Maxim Petronevich, senior economist at the state-run Otkritiye Bank.

“A significant fall in imports is also playing a role … while export earnings, which have become the main source of foreign currency supply, have remained at a high level, since they are coming from export contracts signed in January and February.”

The Russian currency could yet come under pressure in the coming months, analysts say. The country still faces the possibility of a default, when it becomes unable to service government bonds using the frozen Central Bank reserves at the end of May.

The Kremlin and Europe are also in a standoff over Vladimir Putin’s demand that countries pay for Russian gas in rubles, rather than euros as the contracts currently stipulate. Moscow has ordered Gazprom, Russia’s monopoly gas exporter, to switch to ruble payments from Thursday, but European capitals have refused and accused Russia of a breach of contract.

“​​In the coming months, it is highly likely that support from energy and metals exports will weaken,” said Petronevich.
#15220851
Sandzak wrote:I think this could work... 65% of economics is simple psychology... and we humans have some strange connection with gold...

Gold was the first metal humans melted...


It won't work.

Before backing with gold, Russia has to have a robust economy. They don't; it's the biggest country in the world and have an economy the size of Italy.

I don't care how much they claim they have in gold, the proof must be there for all to see.*

This doesn't apply to the U.S. because we've already established our bonafides. You may not like it, but it's the state of the global economy.* Perception is reality. However, we can piss it all away by being stupid and economically illiterate, and we have a penchant for doing that.....


Image
#15220852
Russia has already instituted a quasi-gold standard by standardizing the rate that their banks will pay for gold. It seems to be working since along with the other rouble-based requirements, Russia's currency has almost completely recovered from the sanctions.

The media hasn't admitted it yet but this is checkmate. If Europe pays for gas in roubles, the rouble will stage a full recovery or go even higher than it has historically been. If they don't, most of the industry in countries like Germany, Italy etc. will be faced with up to double the previous gas prices and the entire industries of these countries would go under. The government could attempt to subsidize the operating costs of their entire industrial sectors but doing this right after COVID, while they're also trying to transition to new energy sources, would be way too much of an investment. So this means that they either pay the roubles (Russia wins) or their economies suffer what would possibly be the worst crash in history.

After this plan works out, Russia has also signaled that they intend to charge in roubles for potash (fertilizer) and food. A refusal to do this would add a farming and food crisis to completely shut down industry, which would probably spread to nearby areas (the Muslim world and north Africa) which would probably lead to another migrant crisis.

So, Europe basically has to either create rouble reserves and pay in roubles for vital things or it could pretty much be destroyed in an almost biblical series of events. This situation could easily persist for five to ten years until the new alternative energy infrastructure, which is unlikely to actually work, is in place.
#15221021
I will never understand @BlutoSays why the far right is so terrified of women. It seems all of their vitriol is aimed at strong women. I guess masculinity is more and more being ceded to the moderate conservatives on what the stupider of the far right calls "the left".
#15221115
Drlee wrote:I will never understand @BlutoSays why the far right is so terrified of women. It seems all of their vitriol is aimed at strong women. I guess masculinity is more and more being ceded to the moderate conservatives on what the stupider of the far right calls "the left".


You mean I don't aim enough vitriol and stupid democrats (redundant) like Chuck Schumer, Gerald Nadler, Joe Biden, Adam Schiff, Joe and Hunter Biden, DICK Durbin, the Barackster, Michelle Obama, Ron Klain, Mark Warner, Jake Sullivan, Eric Swallowell, Cory Booker, Adam Kinzinger, Beta Boy O'Rourke and John Kerry?

I can change. I promise. Just give me a chance!!! :D
#15221157
Patrickov wrote:Let's change the question a bit.

Which current politicians do @BlutoSays endorse?


Yeesh. The field is sparse.

Mike Lee, Rand Paul, Kelly Ayotte, Allen West, Ron Desantis, Susana Martinez, Mia Love, Comedian Tim Allen :D , Nikki Haley, Tim Scott, Donald Trump and ANY politician that'll tell the DNC and "The Squad" to FOADIAF.

None are perfect, but all are orders of magnitude better than anything coming out of 430 South Capitol Street.
#15225452
Steve_American wrote:Puffer Fish, nowhere there is there a plan for how to pay-off the US national debt with tax revenues with a surplus.
Until there is a plan for how to do it, it remains impossible to do it.
And, I assert that it makes no sense to worry about that which nobody can change.

For example, if science proved that the sun would explode in 10 years. Why worry? Nobody can change things like that.
.


Then why suddenly does the IRS take a great interest in knowing about and monitoring transactions over $600?

They didn't care about those transactions until NOW.

Why does Uncle Sham suddenly demand a dollar amount be on your W2 be assigned to the value of your employee health benefits?

Why the interest in inheritance taxes and "windfall profits taxes"?

Oh, here comes the spin!
#15225490
BlutoSays wrote:Then why suddenly does the IRS take a great interest in knowing about and monitoring transactions over $600?

They didn't care about those transactions until NOW.

Why does Uncle Sham suddenly demand a dollar amount be on your W2 be assigned to the value of your employee health benefits?

Why the interest in inheritance taxes and "windfall profits taxes"?

Oh, here comes the spin!



Bluto, your question is easy to respond to.

What the fuck does the IRS wanting to collect all taxes owed have to do with my statement that there is no possible plan to pay off the US national debt with tax revenues, because trying to do so would cause a Depression before the total surplus reached $3 T?

.
Why does America Suck at Everything?

The USA hires undocumented workers because it can[…]

Racist negro baby killing liberals are pissed off […]

Please see my previous post in this thread about […]

Russia-Ukraine War 2022

But their is no rationale on the russian side. &q[…]