Two months after the Russian ruble fell below a U.S. penny, the transcontinental country’s fiat currency is the best performing currency worldwide. American economists are baffled by the “unusual situation” because a country facing stiff sanctions typically sees its fiat currency decline in value, but Russia’s ruble has done the exact opposite.
I haven’t read it yet, but a petro-currency from a strong nation with a strong national leader who doesn’t print money to buy votes. Meanwhile, a (dottering in the US case and simpering in the Canadian case) fool at the helm actively encourages divisions that will inevitably split up their home nation and uses a printing machine to make money as the basis for the economy. Oh, and foreign intervention, do the three leaders get involved in military affairs when key aspects of culture and national goals or involved, or when the nation has nothing concrete to gain?
I don’t understand how anyone with a moderate knowledge of history could NOT see it.
(after reading) There’s much less substance in the article than I had expected, as it deals more with the mechanics of how money and trade are done at the international level. I still stand by my words above as the key drivers, though.
Haven’t you heard? The west is switching to an information based, green economy and away from an industrial, manufacturing/supply economy, after all who needs food, a stable energy supply and the raw materials for industry, when you have all the answers!
We are governed by imbeciles put in power by gullible people.
We’re hooped!
+1
Fool is close enough to imbecile.
So, Russia can protect its economy in the face of every measure the western leadership can take to try to destroy it, unlike, say, the population of the west who cannot protect their economies in the face of every measure the western leadership can take to try to destroy them.
Imagine if we had a leadership that actually tried to protect our economy, instead of attack it.
“Harvard Economists Baffled…”
What else needs to be said?
Liberals can’t comprehend the concept of cause and effect.
It’s not that they can’t connect causes and effects correctly, it’s that they can’t comprehend there being any connection.
Bingo…and that doesn’t just go for economics. They have an inability to see the consequences of their own actions and seem surprised when the reality hits them in the face. Then they blame everybody and everything but their own stupidity. I recall seeing some kind of “study” done by some goofball academic who said that leftists are “free thinkers” and can imagine new concepts and that those leaning right can’t. The thing the idiot missed is that those leaning right actually can imagine new concepts but they go one step further and can also imagine the obvious outcome of those concepts. It seems that everything the left touches, turns to soft shit.
IMHO Left versus Right is usually a weighing of “my intellect and creativity say that if I do this, then that will happen” versus “my experience tells me that if I do this, that could happen. Or that, or that, or that, and it is much more likely to make things worse than to improve it.” So should we do “this”? Those with experience and stuff (including fingers and lives) to lose are more likely to say no. Those who will not experience any negative results regardless of what will happen (or are not smart enough to recognize that they, personally, will experience negative results), say yes.
Harvard economist’s annual review should include a shock collar. The first 10% off on predictions of key metrics are acceptable. Every 1% beyond that is either a 10% increase in voltage or 1 minute duration (minimum duration of 1 minute to start). The truely incompetent will be self-executing on an annual basis.
For months I’ve been pointing out to people that the Net Zero axis of nations is a lot weaker than it seems, the Producing Developing axis is growing in wealth and strength and like it that way. The US$ as global reserve currency is an archaic concept, the global economy no longer runs on wealth it runs on debt so transactions are in constant motion, it doesn’t matter what currency you use when all that matters is the daily value of any currency that swiftly passes through your hands. It has become a completely different economic world. The ignorant intellectually degenerate racists currently running the Net Zero axis are going to get clued in soon enough. Countries don’t have friends, they have interests.
ZeroHedge again? SDA is like that turd that just won’t flush. I wonder how much the Kremlin pays ZeroHedge? Kate should get in on that.
– 11% interest rates, although I believe that has recently changed
– zero liquidity in the market for the Ruble. Almost nobody wants to buy it. Go take Rubles to your local bank and see if you can exchange them
– The above is why Russia is now saying they will pay bonds in Rubles, which of course is absolutely absurd.
– Their foreign reserves are dwindling. They’ve been using them to try to add liquidity to the market. Might help short term, but doesn’t long term.
– The CDDS determined that Russia failed to make a required payment. This is a pretty serious hit on their credit score and automatically means certain entities cant buy their bonds.
https://www.cdsdeterminationscommittees.org/cds/the-russian-federation-3/
I can only imagine the reaction here if Canada or the USA did something similar. The WEF replies here would be through the roof.
Allan S. must have chowed down on some brain food for he is right for the first time in history. Go into a bank in Moscow and ask to buy some US dollars at the official rate and you will get laughed out the door. Russia is blowing through its gold and currency reserves to maintain the ruble. It is the policy of Canada to devalue the dollar to encourage trade. Russia, maintaining a high ruble, discourages exports. It will pay a price for Putin’s pride.
The Ruble will go SPLAT without warning when Putin runs out of ammo to support it..
we’ll see how this plays out, and people like you and alla ASS do NOT understand what under pins currency value. And most people don’t understand, which includes the sloped foreheads
Give credit when credit due, Allan has been on the right side of the this from the start. Sadly, the same can’t be said about a lot of regulars here, who are simping for manly man Pootin and turn off all ability to think critically as soon as someone mentions WEF/Davos/Soros/Schab/Bilderberg. The mere sound of those words is cryptonite to their cognitive functions.
I forgot to add the biggest proof of market reaction to all of this: current Russian bond values. Nobody wants to buy newly issued ones because they immediately plummet in face value. They’re being bought up for pennies on the dollar. Massive returns, if you enjoy being paid in Rubles that you can’t exchange.
The Russians don’t need to borrow from the Money Trust to pay for the special operation to reclaim the Ukraine. They have something to sell that the world actually needs.
Russian soldiers, meanwhile, are topping up their combat pay with the valuables of the Ukrainian mobsters who ran like rabbits ahead of the Russian army.
A war that’s lining the pockets of people who aren’t Wall Street bloodsuckers. Imagine that!
I immediately ignore folks who suggest that people they disagree with must be paid shills.
John S. That’s because you’re in the pay of Big Apathy! That is, if you’d ever cash the cheques you’d be in the pay of Big Apathy.
There’s no other explanation for the frequency of utter garbage coming from that website.
” I wonder how much the Kremlin pays ZeroHedge?”
“I wonder how much Zelensky pays Alan S?”
See what a great argument I made!
Based in pure….nothingness.
“Certain entities can’t hold their bonds” … but “people are scooping them up for pennies on the dollar” … Eeeerrrr shouldn’t that be “for kopecks on the ruble”?
The smart states are scooping up these bonds to exchange them for cheap energy and base metals. Because soon the Russians will demand to be paid exclusively in rubles for oil, gas, titanium, nickel, potash, fertilizers, and a whole host of stuff.
Meanwhile Boris is kicking off the “grow food in your backyard to help Britain” campaign, and German towns are releasing “how to” guides for safely chopping down trees for heating fuel.
Russia has endless liquidity, as long as there is demand for the ruble. Which there is, and has been since the war and sanctions began. It’s called positioning: if you are an EU country, and you haven’t already scooped up a bunch of cheap rubles, you will be effed when Putin stops accepting anything but rubles. Period.
The CDS market knows Russia is solvent, and able to pay its debt. They know now that just like the rating agencies in the last credit crisis, they are pandering to political interference once again (helps tonhave actually worked in that market and traded CDS’s. Have you?)
Anyway, we will see how long the US remains solvent once they have a competitor reserve currency to contend with.
Unfortunately BDSM, you’re talking about the real world and real problems. Zerohedge and AllenS are talking about derivatives of reality, not being willing/able to handle the real thing. Props to HiHo below for noting this.
It’s like the cool kids poo-pooing the ball game that ended when the picked-on kid has finally had enough and takes his ball and goes home (and no-one else has, or is willing to share, a ball).
“Countries don’t have friends, they have interests.”
Indeed.
Current western leadership is against not only Russian interests, but the interests of their own people.
Nice analogy Allan -the turd that won’t flush, – I’d say there’s quite a bit of projection in that statement
Ward – I was wondering the same thing, but AllenS is a homing turd that keeps coming back no matter how many times, or how hard, it gets flushed.
It’s not as though there’s a law saying that anyone has to be here. I hope he’s at least decent enough to send our gratious hostess some funds every once in a while for putting up with his drivel.
Turns out most nations actually need energy and manufactured goods, and not Gaia cults and gender LARPers. The producers of the former are probably going to do pretty well.
The establishment often starts babbling about liquidity, bond yields, derivatives, etc, in order to tell you not to believe your lyin’ eyes.
According to the Ukrainophiles this war was supposed to be over shortly after it began, with the Russians failing at every turn, due to Putins hubris.
Still waiting….
I wonder where the 40 billion actually went?
Zelensky won’t tell Biden what he did with it. My guess is a lot of it wound up in Swiss banks.
Is Swiss Banks the name of one underage prostitute, or the service that supplies many of them?
As an aside, was the “loss” of Jeffrey Epstein a great personal loss to Hunter and familiy?
“According to the Ukrainophiles … / insert the mother of all strawmen here / … ”
Nope, Pootin fellators have been predicting a three day war. None else did. And every time Pootin scales down his expectations, or suffers another humiliating setback the chorus of whores reaches a fever pitch crying “all according to the grandmaster plan”.
Hahahahahahahahah. I know that you know my next words will be, we are stupid. Not me, as that is the editorial we.
India traders buying Russian oil and reselling on open market.
Has EU refused Russian gas? Via Ukraine?
China buying Russian energy?
Western sanctions? Western business losses in Russia.
Tit for tat.
The war ends when Russia sez, or Vlad keels over.
West voters are so dumb.
You think western voters actually have a say in anything? Aww. That’s so cute!