4 ms·
Thing is that you will always want to buy something from China or EU (unless their people and resources disappear). Example: We imposed strict sanctions to Rus
by whatever1 4y ago
Thing is that you will always want to buy something from China or EU (unless their people and resources disappear).
Example: We imposed strict sanctions to Russia that almost cut any trade with them. Is the Russian currency valued at 0? Of course not. Because Europeans, Indians, Chinese are buying Russian currency to pay for Russian natural gas / oil.
- latchkey 4y agoIt is because the US didn't close all the loopholes and because foreign countries have to buy energy in rubles... ie: heavily manipulated currency. https://www.npr.org/sections/money/2022/04/05/1090920442/how-russia-rescued-the-ruble https://www.npr.org/sections/money/2022/04/05/1090920442/how...
- whatever1 4y agoSee? Regardless of the policy their currency cannot go to 0 because it has an intrinsic value backing it. The resources and the people of the Russian Federation.
- latchkey 4y agoI get your point, but I see it more like the government can continue to force people to make the currency valuable by requiring payment in rubles. Hence the manipulation. If you got rid of the government, the value of the currency might still go to zero, while the intrinsic value of the resources could still be worth something paid in another currency.
- whatever1 4y agoOf course the organization of people under a single entity is what gives them bargaining power. If there was no Russian government and army then you would just go in and take whatever resources you like at the cost of maybe a couple of bullets.