Economic World War I has begun: Putin strikes back: Russia will only accept payments in rubles for gas deliveries to “unfriendly countries”

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Economic World War I has begun: Putin strikes back! Russia will only accept payments in rubles for gas deliveries to “unfriendly countries.”

Putin is making a smart decisions when it comes to THIS. He’s abandoning the dollar and the Euro and the sanctions that come with them. He’s trying to corner nations with energy since he knows Europe is reliant on it.

This is a smart political move by Putin whether you like the guy or not. Requiring those countries to pay in Rubles means Europe first has to buy Rubles with USD or EUR, which boosts the exchange rate for the Ruble and provides foreign reserves to the Russian central bank. The gas companies get Rubles but the Russian central bank gets foreign reserves (assuming Europe doesn’t have sufficient Ruble reserve).

Sanctions mean that USD can’t be sent to Russia or accounts controlled by Russia. Which means that they have a lack of access to foreign currency to do currency exchange, trade or limit damage from inflation. This is one way to counteract that.

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Moreover, Putin knows global capitalism is nearing the physical limitations of our actual planet, and using ALL available resources just to maintain our current economic excesses, and just breaking even, which is POISON to capitalism. Even before the war, the international system was starting to crack under the strain.

Putin just bets that Russia can survive longer without western economic input than the West can survive without 10 (or so) percent of the world’s natural resources.

If he wins, he breaks the dollar as the reserve currency and swamps us in our own suddenly unmanageable debt. Hyperinflation completely destroys the dollar, and he completely flips the script on the USA, since we won’t be able to afford our export deficit.

Which would lead to a complete economic collapse. If the US economy collapses, the US is going to see riots, violence, and change that it has never experienced before. Bread and circuses do work, but how long will it last when a roll of bread costs three times as much as it used too?

And that’s probably just the beginning! Other countries are look carefully at what’s happening right now! Once China and other oil rich nations follow suit, it becomes a cartel on exports to in-need rich countries for every good and energy source.

Things can get bad very quick.

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1 Comment

  1. This doesn’t need to happen.When all countries export only excess goods based on the right sales formula this won’t happen again.Sales formula of either something needed by many mass produced with profits from quantity or something rarely needed or hard to produce at a higher price tag.Most importantly not confusing the two.

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