4 ms·

> Yep it's still the only currency that matters. That's what the US govt thought when it sanctioned Russia. It only resulted in Russia falling back to their lo

> Yep it's still the only currency that matters. That's what the US govt thought when it sanctioned Russia. It only resulted in Russia falling back to their local currency without any significant problems, while making the rest of the world wary of reliance on the US dollar

whatever1 2y ago
So worried that USD became even stronger since the war started. Any idea why people don't put their foot where their mouth is?
quonn 2y ago
> without any significant problems Can't loose anything if you have nothing - or a giant landmass, natural resources and still only an economy the size of Italy.
Etheryte 2y ago
I wouldn't really say that either one of those is true. Russia has spent considerable time and effort to work around the currency problem, crypto and stablecoins are currently one very prominent set of tools they use for that. Similarly, I don't really see anyone phasing out the US dollar as a reserve currency.
- FpUser 2y ago
  >"I don't really see anyone phasing out the US dollar as a reserve currency." The pig has grown way too big and is drowning in debt. Way too much overhead to keep feeding it. On top of that the US dollar is being used as a club which is an issue for countries that do not want to toe the line. Given a time the world will find a replacement.
  - Etheryte 2y ago
    This is a non-falsifiable nothing-burger. You could've made the same claim ten, twenty and thirty years ago, yet here we are.
    - FpUser 2y ago
      The debt was smaller and other countries were weaker. Obviously the US and $ are not going to disappear (bar all out nuclear war) but at some point in the future it might have to accept that it is not a navel of the Universe
      - Etheryte 2y ago
        The problem with claims like these is that there is no criteria to check against, e.g. has this happened or not, and there is no actual timeline, e.g. is it at the heat death of the universe or next year. Thoroughly vague propositions like this don't really add any value to the discussion.
        FpUser 2y ago
        Keep wearing that hat
- thriftwy 2y ago
  Many countries now contemplate being eventually kicked out of US dollar reserve and surviving that.
romwell 2y ago
>Russia falling back to their local currency Ah yes, the yuan[1]. Though the way this is going, it might as well be the Russian local currency now. [1] https://www.newsweek.com/russia-china-yuan-ruble-1912458 https://www.newsweek.com/russia-china-yuan-ruble-1912458
dralley 2y ago
Despite being popular to claim otherwise, it's causing significant problems for Russia, just in somewhat specific ways.
chipdart 2y ago
> That's what the US govt thought when it sanctioned Russia. It only resulted in Russia falling back to their local currency without any significant problems, while making the rest of the world wary of reliance on the US dollar I think you're trying to spin reality into a far rosier picture. Russia is now bounded to do international trade with any currency other than the ruble, and it is famously piling on a huge trade deficit with India while stockpiling rupees without any way of exchanging them for anything. You're talking about a scenario that not even Russia is able to use Russia's currency in direct trades with other BRICS members. What does this tell you about "significant problems"? > while making the rest of the world wary of reliance on the US dollar You're commenting as if no one in the world was aware of the US dolar hegemony, and even if it was anything new. That's not what's happening in reality. Even the eurozone has been trying to leverage the euro as an alternative to the US dolar in markets like oil, and hasn't been that successful. If a trading block and economic powerhouse like the eurozone isn't able to shake that off, what tells you that Russia, whose economy barely matches Italy's, is an exception?
- boffinAudio 2y ago
  >stockpiling rupees without any way of exchanging them for anything But .. that's nothing less than a huge opportunity for India to start building things the Russians need and want. The same thing occurred with the Euro, which was doing fine until the energy sources feeding its growth were attacked, recently ..
  - ericmay 2y ago
    Why would it be a huge opportunity for India and not China? And for either they run a risk of running afoul of US and EU sanctions depending on what goods and services are provided.
    - ivan_gammel 2y ago
      China is already using this opportunity. Yuan is much more popular in Russia than rupee. As for sanctions, governments can shield the businesses from them - we have seen that before. Unless EU or USA want to sanction the entire China, the effects will be limited and won’t act as deterrent. This war has already been lost by the West.
JumpCrisscross 2y ago
> resulted in Russia falling back to their local currency It took until May of this year—over 2 years from first sanctions—for the yuan to hit top currency on the Moscow Exchange [1]. Of course sanctions hurt both America and Russia. But they hurt Russia more. Within a year, it will be a total suzerainty of China’s, a dynamic that’s beginning to become apparent in the concessions the latter is already demanding on resource pricing [2]. [1] https://www.cnn.com/2024/06/13/investing/us-russia-sanctions-dollar-euro-trading/index.html https://www.cnn.com/2024/06/13/investing/us-russia-sanctions... [2] https://www.ft.com/content/f7a34e3e-bce9-4db9-ac49-a092f382c526 https://www.ft.com/content/f7a34e3e-bce9-4db9-ac49-a092f382c...

whatever1 2y ago

So worried that USD became even stronger since the war started. Any idea why people don't put their foot where their mouth is?

quonn 2y ago

> without any significant problems Can't loose anything if you have nothing - or a giant landmass, natural resources and still only an economy the size of Italy.

Etheryte 2y ago

I wouldn't really say that either one of those is true. Russia has spent considerable time and effort to work around the currency problem, crypto and stablecoins are currently one very prominent set of tools they use for that. Similarly, I don't really see anyone phasing out the US dollar as a reserve currency.

FpUser 2y ago
>"I don't really see anyone phasing out the US dollar as a reserve currency." The pig has grown way too big and is drowning in debt. Way too much overhead to keep feeding it. On top of that the US dollar is being used as a club which is an issue for countries that do not want to toe the line. Given a time the world will find a replacement.
- Etheryte 2y ago
  This is a non-falsifiable nothing-burger. You could've made the same claim ten, twenty and thirty years ago, yet here we are.
  - FpUser 2y ago
    The debt was smaller and other countries were weaker. Obviously the US and $ are not going to disappear (bar all out nuclear war) but at some point in the future it might have to accept that it is not a navel of the Universe
    - Etheryte 2y ago
      The problem with claims like these is that there is no criteria to check against, e.g. has this happened or not, and there is no actual timeline, e.g. is it at the heat death of the universe or next year. Thoroughly vague propositions like this don't really add any value to the discussion.
      - FpUser 2y ago
        Keep wearing that hat
thriftwy 2y ago
Many countries now contemplate being eventually kicked out of US dollar reserve and surviving that.

romwell 2y ago

>Russia falling back to their local currency Ah yes, the yuan[1]. Though the way this is going, it might as well be the Russian local currency now. [1] https://www.newsweek.com/russia-china-yuan-ruble-1912458 https://www.newsweek.com/russia-china-yuan-ruble-1912458

dralley 2y ago

Despite being popular to claim otherwise, it's causing significant problems for Russia, just in somewhat specific ways.

chipdart 2y ago

> That's what the US govt thought when it sanctioned Russia. It only resulted in Russia falling back to their local currency without any significant problems, while making the rest of the world wary of reliance on the US dollar I think you're trying to spin reality into a far rosier picture. Russia is now bounded to do international trade with any currency other than the ruble, and it is famously piling on a huge trade deficit with India while stockpiling rupees without any way of exchanging them for anything. You're talking about a scenario that not even Russia is able to use Russia's currency in direct trades with other BRICS members. What does this tell you about "significant problems"? > while making the rest of the world wary of reliance on the US dollar You're commenting as if no one in the world was aware of the US dolar hegemony, and even if it was anything new. That's not what's happening in reality. Even the eurozone has been trying to leverage the euro as an alternative to the US dolar in markets like oil, and hasn't been that successful. If a trading block and economic powerhouse like the eurozone isn't able to shake that off, what tells you that Russia, whose economy barely matches Italy's, is an exception?

boffinAudio 2y ago
>stockpiling rupees without any way of exchanging them for anything But .. that's nothing less than a huge opportunity for India to start building things the Russians need and want. The same thing occurred with the Euro, which was doing fine until the energy sources feeding its growth were attacked, recently ..
- ericmay 2y ago
  Why would it be a huge opportunity for India and not China? And for either they run a risk of running afoul of US and EU sanctions depending on what goods and services are provided.
  - ivan_gammel 2y ago
    China is already using this opportunity. Yuan is much more popular in Russia than rupee. As for sanctions, governments can shield the businesses from them - we have seen that before. Unless EU or USA want to sanction the entire China, the effects will be limited and won’t act as deterrent. This war has already been lost by the West.

JumpCrisscross 2y ago

> resulted in Russia falling back to their local currency It took until May of this year—over 2 years from first sanctions—for the yuan to hit top currency on the Moscow Exchange [1]. Of course sanctions hurt both America and Russia. But they hurt Russia more. Within a year, it will be a total suzerainty of China’s, a dynamic that’s beginning to become apparent in the concessions the latter is already demanding on resource pricing [2]. [1] https://www.cnn.com/2024/06/13/investing/us-russia-sanctions-dollar-euro-trading/index.html https://www.cnn.com/2024/06/13/investing/us-russia-sanctions... [2] https://www.ft.com/content/f7a34e3e-bce9-4db9-ac49-a092f382c526 https://www.ft.com/content/f7a34e3e-bce9-4db9-ac49-a092f382c...