Russian ruble collapses - again; now worth less than US$0.01.
Spin it, Usual Suspects. The internet needs your comedy relief. Tell us why it's lost nearly 50% of its real value against the dollar - in a Biden economy - in a year.
Any answer that ignores the why of Russia's currency problem, given all their imaginary winning, and/or tries to drive off the road and drag in 57 other non-sequitir excuses having nothing to do with the topic, will be ruthlessly flagged for Arguing Like A Bitch, and consigned to the ether unseen. ZFG.
I'm open to rational financial explanations, on topic. Naked bullshitting or sophomoronic invective from lack of other options disappears like it never happened.
Color inside the lines, or stay home. Crickets chirping will drive the point home just as well.
9 comments:
We could join them -- https://markets.businessinsider.com/news/currencies/de-dollarization-currencies-dollar-dominance-iraq-ban-cash-withdrawals-transactions-2023-10 -- Iraq to ban the USD. Japan is reducing US Treasury holdings. Every central bank is buying gold hand over fist, 77tons last month alone.
No, we can't. The ruble lost its value in relation to the dollar.
There's no question the dollar, in real terms, is finely-engraved toilet paper, and it's only going to get worse for us.
And yet the ruble is still losing value against it.
Comparing the ruble to a benchmark like gold is even worse: It's down 400% in the last 10 years:
https://www.xe.com/currencycharts/?from=XAU&to=RUB&view=10Y
IOW, the ruble has lost 80% of its value since 2013.
It's only improved - slightly - compared to the all-time freefall a month after Putin opened this war.
Putin's done more damage to the ruble in 1 year than the US has done to the dollar in a half a century.
LOL thanks Aesop, I take it you've never heard of the "less Bad" trade, eh?
I've already placed my FX order putting only half net of my gains from your last Russian Ruble is failing story.
The many takers in the system loved the taxes I had to pay for that last Ruble trade.
Feel free to speculate in penny currencies all you want.
The Mexican peso is currently worth 5.5x the value of the Russian ruble.
But then again, that could be because Mexico isn't trying to invade Guatemala and getting its ass kicked in the process.
But all your gainsaying doesn't erase the fact of the ruble's continued cratering.
Even the Russian government is taking steps to rectify that which you would deny.
Losing 40% of the value of a nation's currency in one year after pretend-backing it with gold is a disaster of biblical proportions.
And since they only accept rubles for oil, Russia has essentially cut the price of its only commodity by 40%.
Genius.
Just back from a business trip to India, Czech Republic, Germany. The weariness with Ukraine is omnipresent- all want it over and to be trading freely with Russia. The amounts of frozen payments to our allies, from Russia are astronomical, as well as the losses from not being able to conduct trade WITH Russia. Tata in India is doing fine, Skoda shut out but Czech guy told me though, that "We send our old shitty Soviet weapons to Ukraine, they send us gorgeous women, what is not to like?" Inflation in Brno is obvious from a year ago, don't care what USD to Karuna is, it's worth half. Russia one of their largest trading partners.
German colleagues genuinely worried about heating costs, wind and solar to hydrogen is several years off- they are longing for the "good old days" already.
As I said earlier to our host Aesop, March 17, Putin is up for election. Wait for it.
Will know the Russian Federation has collapsed when Sportsman's Guide is selling new ushankas with Hero Of Russia badges for $9 a pop and crates of AK ammo are $89 again.
Aesop, already have a comment up, but have always wanted to ask since you sometimes mention conscript forces, As a US Marine, assume you met many troops from other countries for training and manouevers. Czechia dissolved conscription in like 2025, but who would you say is best today? (I know not Czech, shoot anti-arcraft guns at mountains twice a year and hike, drink lol)
Probably the Poles. They've been a bone between two junkyard dogs forever, and they don't want to fall back in Russia's hands again.
South Korea is second. Most of the reason we put the 2d ID there wasn't to protect South Korea from the Norks, it was to protect the Norks from South Korea.
And Japan has been improving on everything we've sold them for the last 50 years, and they just maintain a quiet competence. China thinks in terms of the US as a strategic enemy, but if Japan takes a dislike to Chinese interests, we may never get the chance to face off with China; they won't make it out of the Sea of Japan alive.
And Japan could become a nuclear power by snapping their fingers, in about 15 minutes, and will do so, if they perceive that it's in their best strategic interest.
Yes against the dollar but currently they can’t buy or sell Amerikanee anything. Value only matters to those with which they can trade with and my gut says the world is tired of the amerikanee bully. If the dollar loses reserve currency status the opposite occurs at a rapid pace. If IRC the currency has changed 6 or 7 times in history
Japan could become a nuclear power by snapping their fingers, in about 15 minutes, and will do so, if they perceive that it's in their best strategic interest.
In fact, Aesop, I would bet you a bottle of really good wine that the Japanese already have a few smaller nukes discretely tucked away somewhere.
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