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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."
 

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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.
 

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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.
 

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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.
 

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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.
 

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"...so lets say Russia is selling oil at 50% of the Global price..."
You don't get what I am saying... Unless Russia is discounting the price of oil, the Rupee oil deal is clutching at straws... India doesn't need to convert its currency but, Russia does and the Indians gain 0.26 on the Rupee. Russia is trying to keep their economy a float when they are losing a war and can't even get fuel to their tanks in the field. Russia is also still competing with other nations for india's business and question I asked compound question;

. 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?
Russia can't use the same Global System America runs , so they have either got to go to the Chinese system (which India doesn't want to do) or deal with India directly. Which they are... So my question is a) whats Russia bringing to the table that India would risk sanctions for dealing with them? And (b) how much longer can Russia take the strain on their economy?

Russia is only now starting to get back up but, much of it Gold reserves are outside the nation and like I said Russia has to discount its oil to sell it... Just found this, the point remains the Russian economy is strained and straining still... So my point being the same, Russia selling oil to India in Rupees doesn't effect the dollar to such a degree as your article implies. And regardless of the view stated in type of currency, the value is the same.
 

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You're going to have to break this down.
Why would Russia need to convert the Rupees they receive before using them to buy goods from India?
When I say they are using the same money to buy from India, I literally mean the same money. An account kept all in Rupees would never need converting if it were to be used for buying only in Rupees.
India's oil purchases are not propping up Russia to allow them to buy other goods from other countries. But as far as this specific trade is concerned, they can stick to one currency.
The Indian Rupee is 1.00 to the 1.26 Russian Ruble, Rubles have a 0.26 mark up on the Rupee... So India gets 5 Rubles for 4 Rupees on the exchange. The money isn't as far as I read anywhere kept in an Indian account but, ok lets say it is... Otherwise just India transferring the fund through SAFE (China's State Administered Foreign Exchange) they lose a bit on the exchange. As for if, the account is located in India... like I said its basically a Barter System between nations oil for Rupees, spend the Rupees on x goods. India of course has to import a lot of goods for Russia. So far Russia is damaging itself...

Personally, I don't think this will collapse the US economy, that is happening due to our own financial policies...
 

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You still seem stuck on this idea that there must be an exchange of currencies.
Russia could just as easily have India hold their(Russia's) reserve currency of Rupees in India, and trade between each other for goods using that holding.
Even now, China holds most of Russia's reserve currency of cash, and its in Yuan. This makes it crazy easy for Russia to do business with China without converting any money.
I'm not stuck on the issue of exchanging currencies... I did say previously:
As for if, the account is located in India... like I said its basically a Barter System between nations oil for Rupees, spend the Rupees on x goods. India of course has to import a lot of goods for Russia. So far Russia is damaging itself...
Remember we are all talking about fiat currencies, so everything wrapped up in the value of that currency is seen at. Russia selling oil for Rupees, to spend Rupees in India for items is basically Barter Economics on a National level... Using Rupees in China's SAFE is basically like me buying Mexican Pesos because China won't trade Yuan for dollars, so I buy Yuan with Pesos and I still get Yuan.

So because the world markets, or more likely the world banks, say this is the way it is, then Russia and India can only make the deal the central banks approve of?

So lets try another example.

@Kauboy has a tractor with a tiller attachment. He needs to plant and doesn't want to till by hand. The problem is he's out of gas. I tell him I have extra gas to fill his tanks. I need a wood stove and he has one he's not using. We agree on a trade. BUT since the world markets or the central banks have decided that our trade items aren't valued the same, we either have to come up with a more equitable (you're gonna see that word used a lot in the near future) deal or there is no deal? That's what I'm hearing.
When you are talking fiat currencies yes... Remember at this point everyone is using a fiat currency in the world. Dollars, Rubles, Rupees, its all fiat... But, you got the idea of how Russia using Indian Rupees for goods from the Indian economy for Russian oil is like a National Barter system.
 
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Why should any of this scare me... Its like a tornado or a hurricane, I can't prevent it and, its going to happen. Democrat or Republican its all the same, one hand washes the other. Its all by design and I can't stop it. All Russia is doing, is showing us how this system works but, that what the Global System has been designed to do. Its what the UN and Globalist want. My little conspiracy theory, is that this is all a staged... Eventually, they will crash the US economy and this is just a show, to inspire the sheeple to trust in Globalism. They can and will do this to us all anyway and could since the 80s, 90s and what do you think that means in 2022? Wake up, we been on a slow burn SHTF for so long we don't even know it.
 

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Right and this using Indian Rupees doesn't impact the dollar so much as forces Russians to rely on the Indian economy to prop up their own. Switching to SAFE would be more destructive. Russia and Iran already trade oil for gold directly...

Maybe even oil and gold for weapons tech who knows..? Trading with smaller countries isn't going to do much to the US economy but, it's the bigger economies that spell trouble. Russia is also a prime example of how threatening Globalization is... If the World Governments can do this to Russia, why and when will they do it to the US?

A lot of foreign economies depends on the USA and have a vested interest in our continued support but, given enough alternatives like SAFE and direct resource exchange and we got an economic problem.
 

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Not likely... First of all, the alternative to the petrodollar is direct trade or, foreign independent account in foreign currency. In the first case I have to ship item x to you and ship item y back. It makes me basically a colony of your economy. It also leaves you open to guerrilla actions or military action. In the second case, I am relying on the value of your fiat currency and its value in the world market... Globalization at work.

Secondly, if you owe me a dollar and it's value depletes based on inflation rate, then you still owe me the equivalent of that dollar, even if it's$1,000 now and so many countries owe the US. Plus we can do direct exchange as well, and if our economy tanks several tank with it

When I wrote Poor man's Guide to Prepping, I suggested that people grow simulated wild gensieng and sell it directly to Chinese buyers (80 to 90% of the buyer market) for Yuan directly and investing in Pesos, get them at 20 to 1 and when the economy shifts downward, exchange them back at the higher exchange rate. Highest exchange rate under Obama was 8 to 1. So buy them at 20 to 1 and sell them at 10 to 1 and even with the 10 to 15% fee it's a better than 150% profit.

Like I said in another post, I can't change the weather but, I can find ways to ride out the storm.
 

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Depends on if our loan clause has an agreement to adjust for Inflation/Devaluation... I believe loans between nations might account for such, for us an individuals I think not.
 

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Are all such agreements between nations as such...?

Let me explain, between you and government you buy bonds and get money back after a time.
Between Country A and Country B, what kind of agreements does the State Department use?

This is what I mean by agreements between nations. By the time you buy a $25 Bond for $15 and, government pays you $25 for cashing in your bond 10 years later your $25 dollars is worth the $15 you paid for it, at this rate of inflation you'll lose money... lol
 
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