Back in March Biden bragged about trade and financial sanctions that were supposed destroy the Russian currency. While the ruble initially dropped in response, it has since risen back to pre-invasion levels. Meanwhile inflation in the US is reaching levels that have not been seen in 40 years.
Russia continues to be a great exporter of oil, gas, food, metals, and other commodities. The higher ruble reflects higher commodity prices and record trade surpluses.
In contrast, the US dollar’s value is crashing. Democrats passed trillions in deficit spending and the Fed has effectively printed trillions of dollars to finance it. NATO’s sanctions have further increased food and energy prices in the US and Europe by reducing energy and food imports from Russia.
The US dollar has been the reserve currency for many decades. US treasury notes, back by the full faith and credit of the US government, have been the default cash investment, but the US financial sanctions have made Russia’s dollar reserves effectively worthless. Why should governments continue to use the dollar as the reserve currency when their reserves can evaporate at the whim of Washington?
Are Biden’s policies destroying the US dollar while doing little to hurt Russia?
Did we shoot ourselves in the foot with Democrat deficit spending? Then we reloaded and shot the other foot with Biden’s trade and financial sanctions?
Biden has merely destroyed the USA-EU controlled SWIFT from being the central currency exchange platform and is moving nations to join alternative platforms that are less likely to use their platform to bully users.
Default is a sign of strength. Economic contraction signals greatness. It’s all part of Putin’s grand victory and Biden’s humiliation! The bear—it is soaring! It will soar even higher than the ruble’s interest rate once Russia loses more of this worthless ballast.
Yes, it took many years for the US dollar to become the reserve currency. Biden is working hard to reverse that, but it will take years to see the full effect of his policies.
Yes, technically that may be true. NATO has frozen Russian foreign currency reserves.
Russia is basically telling the bond holders they will either have to accept rubles or get the NATO governments to pay them.
Realize that if Biden really prevents payments to Russian bond holders, it could cause a collapse in the western financial system.
As the saying goes, if you owe a bank $100,000 and can’t pay you are in trouble. If you owe the bank $100 billion and you can’t pay, the bank is in trouble.
We still need that nap- unfortunately the world is rushing headlong into a dystopian idiocratic nightmare that it’s only gonna get worse…nap time will have to wait.
Yeah, she was at the next stop. She texted me ass it was happening. She wasn’t sure what was going on at first but there was a panicked stampede that she got caught up in. She is fine just a little freaked out.
