it works like this: in order for the Russian entities to be fully compliant with their loan obligations while sanctioned, the entity continues to make timely payments in rubles -- because the sanctions deny them access to SWIFT exchange.
the payments are made to a Russian bank and held there, because, under sanctions, foreign entities are denied the right to receive payment transfers.
so Russia fulfills debt obligations by contract, while the West commits suicide.
That's what Putin just did, in fact - He paid with worthless Rubles. Which day in and day out are worth even less.
I don't understand why everyone thinks this is an own by Putin. Saying that Russia's debt will be paid in Rubles to countries that imposed sanctions doesn't give him any advantages. Those countries will get what they want out of it - the money which they can exchange - while Russia will be paying more than it would otherwise, because let's say a 1000 Ruble debt from last year (just for ease of argument) has become a 1500 Ruble debt today since the Ruble has been steadily decreasing in value.
"Decreasing in value" DOES NOT mean that the countries who were owed money are receiving less money, they're still receiving the same amount after exchange. What it means is that Russia will be paying more, since they needed to pay (let's say) 1000 before and now they need to pay 1500 because of the decreasing Ruble value.
Whoever was owed 1000 Rubles back then (which after exchange made up let's say 1000 of their currency) is now owed 1500 Rubles (which is still 1000 of their currency so they didn't lose anything). It's Russia that is paying more to make up for the loss of value of their currency.
This is only an 'own' in the sense that countries who were owed a debt aren't able to get their money unless they ease sanctions (otherwise they can't access it). In the long run though? The Ruble will be a worth a whole fucking lot less from Russia's default in the economy. Think of how the venezuelan peso is worth less than a single penny of the dollar - in the sense that you could buy a whole building in Venezuela with the money you bought a jacket or a sneaker in the US. That's what happens to an economy when it defaults.
If the Russians pay $1,000 worth of rubles today, but that payment is stored in a bank until the sanctions are lifted, at which point same rubles are worth $500 dollars, then the Russians gain the difference. Because when they made the deposit it was at the right value. Conversely, if they wait until the sanctions are lifted to pay back the debt, then they would have to pay back many more total rubles because of the rubles decline in value.
And I am so sorry to say this and so astounded that I, a child of the cold war, AM saying this, but I am learning to like Putting (spell check will not accept
p u t i n. Why do you think that is. Tin foil hat time)
I know. And am embarrassed to confess that I yell at phone answering robots and self checkout computers. When the machines take over, I will be dead meat.
Best President we've had in our lifetime. No doubt, but I do understand that he is a man that has been elevated to God-like status, which gets a bit weird.
But I do support him and desperately want this man back. We are self destructing under these globohomos.
it works like this: in order for the Russian entities to be fully compliant with their loan obligations while sanctioned, the entity continues to make timely payments in rubles -- because the sanctions deny them access to SWIFT exchange.
the payments are made to a Russian bank and held there, because, under sanctions, foreign entities are denied the right to receive payment transfers.
so Russia fulfills debt obligations by contract, while the West commits suicide.
I may donthebsame with my own debt. Pay in rubles that is.
You will be able to pay with worthless dollars soon enough.
That's what Putin just did, in fact - He paid with worthless Rubles. Which day in and day out are worth even less.
I don't understand why everyone thinks this is an own by Putin. Saying that Russia's debt will be paid in Rubles to countries that imposed sanctions doesn't give him any advantages. Those countries will get what they want out of it - the money which they can exchange - while Russia will be paying more than it would otherwise, because let's say a 1000 Ruble debt from last year (just for ease of argument) has become a 1500 Ruble debt today since the Ruble has been steadily decreasing in value.
"Decreasing in value" DOES NOT mean that the countries who were owed money are receiving less money, they're still receiving the same amount after exchange. What it means is that Russia will be paying more, since they needed to pay (let's say) 1000 before and now they need to pay 1500 because of the decreasing Ruble value.
Whoever was owed 1000 Rubles back then (which after exchange made up let's say 1000 of their currency) is now owed 1500 Rubles (which is still 1000 of their currency so they didn't lose anything). It's Russia that is paying more to make up for the loss of value of their currency.
This is only an 'own' in the sense that countries who were owed a debt aren't able to get their money unless they ease sanctions (otherwise they can't access it). In the long run though? The Ruble will be a worth a whole fucking lot less from Russia's default in the economy. Think of how the venezuelan peso is worth less than a single penny of the dollar - in the sense that you could buy a whole building in Venezuela with the money you bought a jacket or a sneaker in the US. That's what happens to an economy when it defaults.
If he pays in rubles, and pays the value in rubles, then the debtors get less.
If the Russians pay $1,000 worth of rubles today, but that payment is stored in a bank until the sanctions are lifted, at which point same rubles are worth $500 dollars, then the Russians gain the difference. Because when they made the deposit it was at the right value. Conversely, if they wait until the sanctions are lifted to pay back the debt, then they would have to pay back many more total rubles because of the rubles decline in value.
It will serve off a chain reaction. Every currency will be worthless. Silver & gold will be the new currency.
🐸 Excellent explanation
Interesting. Would this affect the exchange rate for the Rubles in any way since there would be a ‘demand’ for it?
yes, the ruble value is decreasing.
Hes about to use his next move, back currency with the worlds largest gold reserves
when Trump first toured to meet with foreign leaders, the countries took larger positions in Gold after the visit.
I'm sorry to sticky this all the time, but, this is just so metal, TOP KEK, this is so good
It is.
u/#kek
And I am so sorry to say this and so astounded that I, a child of the cold war, AM saying this, but I am learning to like Putting (spell check will not accept p u t i n. Why do you think that is. Tin foil hat time)
Spell check and grammar check are wrong constantly
I try to never attribute to treachery what can be explained by stupidity,... but it's tempting :)
/wordnerd
I know. And am embarrassed to confess that I yell at phone answering robots and self checkout computers. When the machines take over, I will be dead meat.
Reminds me of Tommy Tiernan's Space Bitch sketch.
So they will get rid of the ruble and then impose some gold standard kind of system which makes it worthless? :)
They can issue something completely new.
Why can't we have a Putin?
We had one…
No. No we didn't. We had, at best, another Reagan, that fucking soft balled everything.
I'm just calling it as I see it. I don't hate Trump by any stretch, but I'm not part of the cult either.
Best President we've had in our lifetime. No doubt, but I do understand that he is a man that has been elevated to God-like status, which gets a bit weird.
But I do support him and desperately want this man back. We are self destructing under these globohomos.
probaly worth more than our dollars.
Dollars might be cheaper over time though.