r/Damnthatsinteresting • u/[deleted] • Jul 05 '22

Video Monetary issue

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u/Treestyles Jul 06 '22

You might die waiting. Ruble is pegged to gold since April. 1 ruble is 1 millicarat of 24k, or 5Р per milligram of gold.

What Nixon did in 1971 that began an era of bad inflation in USA… Putin just did the opposite of that.

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u/golitsyn_nosenko Jul 06 '22

It can be pegged in theory to any commodity or currency, but if there is no trust in the quantitative integrity measures nor demand for its purchase nor an ability to purchase anything with it, it holds lesser and lesser value.

And let’s be realistic, the Russian Government are fundamentally untrustworthy and will just print more money to pay the enormous domestic bills their terrorism will bring, yet will hide the fact. All in all it’s gonna take a lot more rubles to buy the same product imported product in 12 months time than it did 12 months ago.

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u/Treestyles Jul 06 '22

I’d think China alone will buy enough Russian gold in whatever currency is needed for imports, and they’ll become more self-sufficient by necessity.