Russian Central Bank pegged 1 gram of gold to 5000 rubles (about $50 USD) this week. I will explain why this matters and why it spells doom for the petrodollar.
From March 31, oil and gas can only be purchased in rubles. Meaning, it is pegged to gold, using paper rubles as a proxy. Europe will need to either buy rubles in gold, or they will have to buy directly in gold. Which means, there will be a lot more demand for rubles. With 5000 rubles now equaling 1 gram of gold, and oil being priced directly in gold - there will be a price disruption in terms of how much gold a dollar can actually buy.
Im so tired of this petrodollar meme. Theres a 1 trillion dollar military operation behind the USD and a financialized slave pen of consoomers.
Luke Jones
Countries holding dollar debt notes will see less use for them and want to dump them, in order to get something which holds value better. This will have a deflationary effect on rubles.
Russia will be able to re-peg the ruble to gold at whatever rate down the line - 5000 today, tomorrow 500.
The excess dollars being dumped are about to cause hyperinflation. In economics, hyperinflation is very high and typically accelerating inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase. This causes people to minimise their holdings in that currency as they usually switch to more stable foreign currencies and assets.
>From March 31, oil and gas can only be purchased in rubles.
Yeah, from Russia, by Europe, allegedly. But not oil and gas must be purchased in rubles, retard.
Secondly (and this is how little you know about the Petrodollar) the US effectively killed the Petrodollar as a geopolitical tool in 2015 when the budget lifted the ban on US crude exports, thus nullifying our agreement with OPEC that created the foundation of the Petrodollar in the first place, you retarded fool. Stop posting these shit threads like you know what you’re talking about.
William Martin
SWIFT JEWS AND BANKS >NOOOOOOO GOYIM, YOU CANNOT DO THIS, THIS IS ANTISEMITIC!
while they can forbid to buy gold from russia it is not possible to forbit to buy energy from Russia.
either way buying directly or over a 3rd country while an ounce gold is 1950$ worth, the Russian Bank fixed it to 1600$ . wich means a massive deflation for the Ruble because the other countrys will have no choice but to pay.
wich also means a massive Inflation for both $ and €.
We re fucked, thanks to our green party
Hudson Davis
Just stfu. We wanted inflation to be high to combat Chinese “currency manipulation” whereby they keep their currency artificially inflated so as to compete (and continue to do business) with the US via labor cost arbitrage opportunity. ergo, high inflation of the dollar means even higher forced inflation of the Yuan and any other currency hoping to compete. Why else do you think we dumped a shit ton of stimulus money for the Wu Flu scare that was only orchestrated to artificially depress the global demand for oil in the first place so we could force Russia and Saud to do the OPEC deal back in April of 2020? That deal that Trump made expired in 2 years. Oh lookie what time it is now? What a surprise we have upheaval in the oil markets! This is all happening to plan and you don’t know shit about anything. Not saying I agree or condone the plan, but rest assured, this is planned.
Cooper Rivera
Seems to be some severe translation issues here
Henry Bailey
A history lesson. Please read if you want to understand:
In USA 1933 the government made it illegal for citizens to own gold and confiscated everyoneäs gold at a fixed price of $20.67. Land of the free etc. Pic related. They then re-priced gold to $35 per ounce. So they took your gold, gave you $20.67, then turned around and told people it was worth $35. At the beginning of WW2, the US sold people a lot of stuff, and asked for payment in gold and 100 year leases. This is how the US amassed so much gold in its possession.
The Bretton Woods agreement then backed the USD by gold, at a rate of $35 per ounce.
By 1965 excessive inflation of the US money supply, in part to fund the Vietnam War, led to the US no longer being able to redeem foreign-held dollars into gold, as the world’s gold reserves had not grown in relation, and the payment deficit had grown to US$3 billion. By spring 1968,the international financial system was moving toward a crisis more dangerous than any since 1931.
The Korean and then later the Vietnam war happened and the US seemed to be spending like mad. The French called BS and decided to try and exchange a ton of US dollars for gold. Nixon thenin 1971said NOPE, if you have US dollars, then you cannot come and exchange them for gold.
Very unimpressive and irrelevant to your argument in OP
Kevin Rodriguez
>pegged 1 gram of gold to 5000 rubles
Russian gold reserves are 2400 tons. At pegged value that is 12 trillion Rubles. M1 supply of Rubles is 35 trillion Rubles. M2 supply of Rubles is 65 trillion Rubles.
>goLd bACkeD cuRrENcY
Brayden Davis
My continued history lesson for those interested:
The petrodollar system was createdin 1974. The framework was simple, the US would buy oil from Saudi Arabia and provide the kingdom military aid and equipment. In return, the Saudis would plow billions of their petrodollar revenue back into Treasuries and finance America’s spending.
As of 1971, all currencies have been fiat currencies not backed by anything. Increased money supply, somewhat controlled with financing national debt and fractional reserve systems, allow a certain amount of inflation to allow for growth of the system.
Inflation ran rampant from the 1960s through the end of the 1970s, gold went up 24x, silver went up 29x. To stop inflation, Paul Volcker set the Fed interest rates at 20%, effectively stopping inflation in its tracks. The debt at this time was $300b and stunted growth through the 1980s. By the end of the cold war, US spending had hit $5T to fight the cold war.
No faggot. A key thing the US agreed to was to never compete with Saudi or OPEC by self-banning crude oil exports. The very ban the US itself lifted in 2015 that led to us momentarily becoming “energy independent” and a net exporter of oil. So… SHUT THE FUCK UP WITH YOUR RETARDED BULLSHIT HISTORY “LESSON.”
