Prepper Forum / Survivalist Forum banner
1 - 20 of 50 Posts

·
Super Moderator
1-6 months, natural disasters or economic collapse
Joined
·
10,501 Posts
Discussion Starter · #1 ·
We've all seen many instances of this same prediction. It's been presented in numerous ways and has been linked to all sorts of deadlines.
Here's another one! 😁


Could we finally be entering the final stages of the collapse of the US Dollar?
The article's author makes a few compelling arguments for why it could be around the corner.
Firstly is Russia's recent insistence that European nations currently buying their oil from Russia start doing so using Russian Rubles. The USD has been the world's "petrodollar" for almost 50 years. If we lose that agreement, our money could once again free fall in value, just as it did when Nixon decoupled it from gold.
At the rate we're printing it, and with rising inflation as of late, we could be seeing the perfect storm on the horizon.

I don't really need to tell this group how to prepare for this where their wealth is concerned. Most of you have plans that involve hard assets such as precious metals, ammunition, food, and the like.
What I would encourage you to do is to take the advice the author recommends, and start pushing the idea of a backup currency that your state can prepare to implement, secured by real assets like gold/silver, and start having this discussion with your state legislature critters.

The article makes some dire predictions about timing, and I don't put much faith in their accuracy, but I do expect them to come to fruition eventually.
We'll have a much better picture by next year, but there's no better time to be ready for it than yesterday.

What do you folks think about the points presented, and the timeline laid out?
 

·
Registered
Joined
·
200 Posts
eh... The Petrol Dollar is backed up by something... oil. The hydrocarbin ruble is Russia's attempt to sell their petrol on the world market, which uses dollars &, its just another fiat currency. I don't think it will collapse the dollar. The yuan didn't collapse the dollar. Bitcoin didn't collapse the dollar. All together they haven't collapsed the dollar.

No what will collapse the US dollar? Printing out more dollars to increase its devaluation. Seems to me people (Dems) want to blame the Dem's economic failures on the Russians but, oil was rising in price under the Green Economy and the "Green New Deal."
 

·
Super Moderator
Joined
·
9,836 Posts
eh... The Petrol Dollar is backed up by something... oil. The hydrocarbin ruble is Russia's attempt to sell their petrol on the world market, which uses dollars &, its just another fiat currency. I don't think it will collapse the dollar. The yuan didn't collapse the dollar. Bitcoin didn't collapse the dollar. All together they haven't collapsed the dollar.
The Saudi's are seriously considering switching to the yuan. Most oil producing nations are also considering this. The yuan is backed by gold that China has been acquiring over the years.
 

·
Registered
Grind down,economic collapse and food shortage
Joined
·
26 Posts
eh... The Petrol Dollar is backed up by something... oil. The hydrocarbin ruble is Russia's attempt to sell their petrol on the world market, which uses dollars &, its just another fiat currency. I don't think it will collapse the dollar. The yuan didn't collapse the dollar. Bitcoin didn't collapse the dollar. All together they haven't collapsed the dollar.

No what will collapse the US dollar? Printing out more dollars to increase its devaluation. Seems to me people (Dems) want to blame the Dem's economic failures on the Russians but, oil was rising in price under the Green Economy and the "Green New Deal."
Most likely not any more petro yuan
 

·
Registered
Joined
·
12 Posts
Firstly is Russia's recent insistence that European nations currently buying their oil from Russia start doing so using Russian Rubles.
Our (The German) Government just released a statement, along with some other european countries, that we will honor the contracts for russian oil and gas and those contracts contains payments in US Dollars and Euros, not rubel.

Link to a Newspaper article (Sorry, it is in German)

I do not think that russia can effort not selling oil and gas to europe, so they will have to accept this or bring up whole europe against them.
And while russia is a big country, this time Germany is not alone in this "quest".

Also, obviously, big Russia has its hands full with some ukranian farmers allready...
Ukrainian farmers steal Russian tanks
 

·
Registered
Joined
·
6,396 Posts
Once putin is done getting his butt kicked in Ukraine will the russia rubby collapse? Will ole putin even be around much longer? How long before he gets eliminated? The great russian army is a paper tiger, aka joke.

Why would anybody want to trade in a russian money??
 

·
Super Moderator
1-6 months, natural disasters or economic collapse
Joined
·
10,501 Posts
Discussion Starter · #8 ·
Our (The German) Government just released a statement, along with some other european countries, that we will honor the contracts for russian oil and gas and those contracts contains payments in US Dollars and Euros, not rubel.

Link to a Newspaper article (Sorry, it is in German)

I do not think that russia can effort not selling oil and gas to europe, so they will have to accept this or bring up whole europe against them.
And while russia is a big country, this time Germany is not alone in this "quest".
Using Google Translate, I have an overall understanding of the article.
It seems that the German government and the Italian government believe they are protected by contract agreements from Putin altering his demands.
It remains to be seen if Putin cares about the contract agreements. Contracts only matter if both sides choose not to violate them. I have no idea what repercussions exist if Putin chooses to violate the agreement.
But we do know what happens to the oil recipients if he follows through and cuts off the supply.

I guess we'll see who's bluffing and who's not very soon.
 

·
Super Moderator
1-6 months, natural disasters or economic collapse
Joined
·
10,501 Posts
Discussion Starter · #9 ·
Former Texas Senator, and staunch isolationist, Ron Paul has some opinions on the matter:

He mentions that India has already considered buying oil from Russia using Russian rubles. Also the Chinese using yuan.
 
  • Like
Reactions: inceptor

·
Super Moderator
Joined
·
9,836 Posts
Former Texas Senator, and staunch isolationist, Ron Paul has some opinions on the matter:

He mentions that India has already considered buying oil from Russia using Russian rubles. Also the Chinese using yuan.
Remember BRICS? Well they never went away. India may be going into talks with China about mending their differences. Mexico is backing Russia and I'm told that Argentina and Brazil may be added to the South American list. It seems the Axis growing.
 

·
Super Moderator
1-6 months, natural disasters or economic collapse
Joined
·
10,501 Posts
Discussion Starter · #11 ·
It's being reported, but I've not yet pulled additional sources, that India is now entering the final stages of agreement to start buying Russian oil without using the USD "petrodollar".

I had every expectation that the USD would remain the world's oil dollar as long as we had open trade. Our economy is unrivaled. But with sanctions, that changes the game completely.
If the trend continues, we can expect bad things.
Let's hope it doesn't.
 

·
Registered
Joined
·
200 Posts
Just remember that as of right now... 1 ruble is worth $0.01 so buying Russian oil means at say $30 a barrel, it's 3,000 rubles. Even at cheaper prices, Russia is already suffering a depression and has been for decades. This military action in Ukraine is already sucking up Russian resources.
 

·
Super Moderator
1-6 months, natural disasters or economic collapse
Joined
·
10,501 Posts
Discussion Starter · #13 ·
Just remember that as of right now... 1 ruble is worth $0.01 so buying Russian oil means at say $30 a barrel, it's 3,000 rubles. Even at cheaper prices, Russia is already suffering a depression and has been for decades. This military action in Ukraine is already sucking up Russian resources.
The conversion to USD doesn't matter if Russia choose to only use the Indian Rupees they receive for oil to buy goods from India. They trade together in a lot of different markets.
 

·
Registered
Joined
·
200 Posts
The conversion to USD doesn't matter if Russia choose to only use the Indian Rupees they receive for oil to buy goods from India. They trade together in a lot of different markets.
Except in the global commodities market. The price is the same just using a different currency...
Dollar $1
Mexican Peso 20
Philippine Pesos 50
Rupee ?
Rubles 100
Thats not to say Russia can't undercut Others on the market but, that you're looking at near equal value across the board, regardless of the currency.
 

·
Super Moderator
1-6 months, natural disasters or economic collapse
Joined
·
10,501 Posts
Discussion Starter · #15 ·
Except in the global commodities market. The price is the same just using a different currency...
Dollar $1
Mexican Peso 20
Philippine Pesos 50
Rupee ?
Rubles 100
Thats not to say Russia can't undercut Others on the market but, that you're looking at near equal value across the board, regardless of the currency.
But again, I'm not referring to the global market. I'm specifically talking about the direct trade between the two countries.
As the article points out:
India exported $3.3 billion worth of goods to Russia in 2021, mostly pharmaceutical products, tea, and coffee.
If Russia continues to import these goods from India, they'll do so in Rupees they've received from the oil sales to India.
With other countries shunning Russian exports, it's the logical conclusion to think they will operate in whatever currency a still-trading partner wants to use.
 
  • Like
Reactions: inceptor

·
Registered
Joined
·
200 Posts
If Russia continues to import these goods from India, they'll do so in Rupees they've received from the oil sales to India.
With other countries shunning Russian exports, it's the logical conclusion to think they will operate in whatever currency a still-trading partner wants to use.
Right... I don't disagree but a Rupee and Ruble trade for roughly 1 to 1.26 & that is what I am saying... How willing is India to trade with Russia off the open market for less then open market prices?

Many Goods made in India are made by Foreign investors trading for "pennies on the dollar" and for India to risk being excluded from the rest of the market to basically lose other potential customers they have to have kind of offset for the potential loss. A $15 dollar item is still 1,500 rupees so lets say Russia is selling oil at 50% of the Global price, are the Russians also getting a discount on Indian imports or, are they paying "full price." If they are paying full price, then how long can the Russian economy suffer the burden of an economic depression, plus inflation and high export costs/and low import profits? I'm just neither the US nor the USSR did too well with those conditions.
 

·
Super Moderator
1-6 months, natural disasters or economic collapse
Joined
·
10,501 Posts
Discussion Starter · #17 ·
Right... I don't disagree but a Rupee and Ruble trade for roughly 1 to 1.26 & that is what I am saying... How willing is India to trade with Russia off the open market for less then open market prices?

Many Goods made in India are made by Foreign investors trading for "pennies on the dollar" and for India to risk being excluded from the rest of the market to basically lose other potential customers they have to have kind of offset for the potential loss. A $15 dollar item is still 1,500 rupees so lets say Russia is selling oil at 50% of the Global price, are the Russians also getting a discount on Indian imports or, are they paying "full price." If they are paying full price, then how long can the Russian economy suffer the burden of an economic depression, plus inflation and high export costs/and low import profits? I'm just neither the US nor the USSR did too well with those conditions.
Why are you assuming Russia is selling oil at a discount to India? You're still thinking about this in terms of how the transaction converts to USD.
The Rupee and the Ruble will be agreed upon to represent a specific amount of oil, not USD. From that point, once Russia has Rupees, they'll use them to buy from India. Remember, nobody else wants to trade with Russia at the moment. The "global market" isn't open to Russia.
The sanctions will push Russia into the arms of countries who still need their goods, and it could end up hurting the US more than Russia.
 

·
Registered
Joined
·
200 Posts
Why are you assuming Russia is selling oil at a discount to India? You're still thinking about this in terms of how the transaction converts to USD.
The Rupee and the Ruble will be agreed upon to represent a specific amount of oil, not USD. From that point, once Russia has Rupees, they'll use them to buy from India. Remember, nobody else wants to trade with Russia at the moment. The "global market" isn't open to Russia.
The sanctions will push Russia into the arms of countries who still need their goods, and it could end up hurting the US more than Russia.
I never said they were...
I am saying the Ruble is lowest it has ever been... India buying oil is buying oil at the same price from Russia as it is from anyone else on the Global Market... Unless Russia is selling oil at a discount compared to OPEC or the rest of the world, there is no point in India risking sanctions for dealing with Russia. It doesn't what currency is used, the price is the same... the $103 average is still $103 even if it is in Rupees (10,300 Rupees) unless Russia is selling it cheaper. If your India and oil from Russia is costing you 10,300 Rupees a barrel or, you can get it from literally anyone else for the same price, why risk pissing off the rest of the world?

Who cares if you spend Rupees or Dollars, its all the same? That is my point. Sure you can print more Rupees and, Russia can spend them on Beans, Bullets and Band aids from India. But, without India is literally basically trading Oil for Whatever, like a Barter System with Russia. And India can already "print" more fiat Rupees to buy more fiat Dollars as is. So why bother with Russia..? Unless Russia can/is discounting the oil compared to the others on the global market.
 

·
Administrator
Joined
·
15,565 Posts
The fact that the USD is the world’s reserve currency, and the fact that oil is traded in USD’s, are the only things preventing our economy from total collapse.
At present time, we can not even pay the interest on our debt, let alone pay down our debt. We have to BORROW money to make our interest payments, which in turn deepens our debt.
 

·
Super Moderator
1-6 months, natural disasters or economic collapse
Joined
·
10,501 Posts
Discussion Starter · #20 ·
I never said they were...
I am saying the Ruble is lowest it has ever been... India buying oil is buying oil at the same price from Russia as it is from anyone else on the Global Market... Unless Russia is selling oil at a discount compared to OPEC or the rest of the world, there is no point in India risking sanctions for dealing with Russia. It doesn't what currency is used, the price is the same... the $103 average is still $103 even if it is in Rupees (10,300 Rupees) unless Russia is selling it cheaper. If your India and oil from Russia is costing you 10,300 Rupees a barrel or, you can get it from literally anyone else for the same price, why risk pissing off the rest of the world?

Who cares if you spend Rupees or Dollars, its all the same? That is my point. Sure you can print more Rupees and, Russia can spend them on Beans, Bullets and Band aids from India. But, without India is literally basically trading Oil for Whatever, like a Barter System with Russia. And India can already "print" more fiat Rupees to buy more fiat Dollars as is. So why bother with Russia..? Unless Russia can/is discounting the oil compared to the others on the global market.
I'm not sure what you're trying to claim.
You started with the premise that Russia must be discounting their oil in order for India to think it's better to get oil from them than any other oil producer.
"...so lets say Russia is selling oil at 50% of the Global price..."
I questioned where you got this premise from, and you responded that you never said they were... but that they must be.
So are they, or aren't they?
India IS negotiating to buy oil using Rupees. For any goods Russia wishes to buy from India, they don't have to go through any currency exchange for the privilege if they use the Rupee.
India doesn't have to convert to USD to buy oil from Russia, and Russia doesn't have to convert to Rupees to buy trade goods from India.
The cost savings is built in to the transaction.
 
  • Like
Reactions: Michael_Js
1 - 20 of 50 Posts
Top