Our Product, Our Rules: As World's Largest Wheat Exporter Russia Now Demands Rubles For Grain Exports, incl. Wheat: https://www.zerohedge.com/commoditi...nd-rubles-grain-worlds-largest-wheat-exporter " Russia Now Demands Rubles For Grain As World's Largest Wheat Exporter BY TYLER DURDEN SATURDAY, JUL 02, 2022 - 05:00 PM After threatening to do so for a couple months now, Russia has pulled the trigger on expanding the list of commodities for which it demands payment in rubles to now include grain exports, effective Friday per a government legal website. So now grain, sunflower oil and extracted meal are the next to follow the March decision to charge clients from "unfriendly" countries - including major customers in Europe - in rubles for natural gas instead of the normative dollars and euros. On top of this move, recently Agriculture Dmitry Patrushev announced that Russia's agricultural products will go to "friendly countries" only, and according to "who needs it most" - a hugely significant statement sure to continue sowing uncertainty and chaos for the global food supply. ... ctd ... "
What does demanding payment in Rubles do? I get that the buyer would have to exchange their currency for Rubles which would put upward pressure on Rubles prices, but if Russia just accepted payments in the buyer's base currency and then exchanged them into Rubles itself would that not do the same thing? I'm sure I am missing something here LOL. Thanks!
Without the fucking USD, all currency is shit. Imagine a world, tomorrow, where there is no USD. So what is anything priced in? Yen? Renmimbi? Krone? Euros? Nobody knows. How many Euros is a BTC? There are no fancy-pants financiers saying, "Oh, sure, it is worth 1 Euro", because the Europeans have no idea what their currency is worth!
Well, there are many who argue that since the US defaulted in 71, it's been 'shit' and in turn makes everything else shit. In fact, the trust was gone even before, which is why there was a run on gold reserves, which in turn forced Nixon to take emergency measures.
US was spending monies with no gold to back it up. Up to now, US still spending without restraint as shown by Biden giving Ukraine like $54 billion in arms and financial aid so far. We also, shower other countries with hundreds of billions including, those harboring terrorists who want to kill Americans. These sanctions just has hastened the decoupling of the US dollar as reserve currency. BRICs countries are already starting not to use US dollars as reserves. Saudi Arabia, Argentina, Thailand are applying to join BRICs. As a trading bloc, the BRICs countries is a larger bloc in terms of population and consumers. US and Europe will feel the very bad economic effects of reverse sanctions that BRICs imposes. High oil prices and commodities is just the start, food shortages coming on top of that. Then, shortages of raw materials and components used in manufacturing by the US and Europe. BRICs countries will trade more and prioritize the needs of each BRIC country. Guess who gets sent to the back of the line?
Russia grew it's GDP 50% this year in USD terms just by stopping using USD and converting their export to rubles They basically export inflation now like USA did for decades. Other countries may notice. Lose USD reserve status and forget about money printing.Without free money printing US will be like Brazil or Indonesia
Artificially propping up a dead currency, majority of Russians still have the exact Soviet mindset. Nothing much has changed. They don't do things by logic or co-operation but by force and threats.
Not really. EUR, JPY, GBP, CAD, AUD - plenty of stable currencies around. Not sure if you're drunk or whatnot but people in Europe measure investments in Euros, not dollars. So that's exactly what they would be saying.