Make a wish motherfucker! Guys, recent drop in ruble price has caused some to say Putin is finished. I have been hearing that Russia is over since at least 1999…
When discussing currency and monetary systems, the Western propaganda machinery often operates within the realm of deception. This creates a situation where the rush to provide the public with information that supports those in power, combined with the ignorance of those tasked with spreading it, frequently leads journalists and bloggers to celebrate news that, in reality, should be cause for concern.
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However, when amazement is coupled with collective excitement over the devaluation of the currency of a country that is one of the world’s leading energy exporters—especially when, due to sanctions we imposed, we’ve decided to stop importing our main energy source from them—it’s honestly hard to understand where the supposed “great advantage” is that should make us jump up on the couch cheering.
What I’m trying to say is that Europe today isn’t benefiting from the devaluation of the ruble. In theory, this could have led to cheaper gas and oil, but only if they were still able to buy energy from a country that, again, is one of the top energy exporters in the world.
In fact, given what we’ve just observed, the fact that countries not imposing sanctions on Russia are still able to take advantage of these lower energy prices is, for us, a misfortune. This cheaper energy will benefit their economies in two key ways: first, their exports will become more competitive as their products will cost less to produce, and second, their domestic markets will benefit from lower household energy bills.
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Let me remind these people that Russia is a net exporter. Those who follow a mercantilist economic policy have always had to adopt monetary policies that devalue their currency in order to keep their products competitive. A good example of this is Germany, which, operating under similar economic policies, rushed to join the eurozone to ensure a permanently devalued “mark.”
For Russia as an economic system, the ruble’s decline is not a disaster. In fact, it actually helps Russia gain ground in the global energy market. And as I’ve pointed out before, it makes Russian oil and gas exports more competitive for its trading partners. It’s clear that, within the emerging multipolar world that is taking shape in opposition to the United States and Europe, the ruble’s devaluation is a blessing for countries in the BRICS Plus group, which have commercial agreements with the Kremlin.
Russia sells most of its energy resources for rubles and yuans.
This means that the share of the dollar and euro in Russia’s economy, especially regarding energy exports, has been significantly reduced. So, once again, where is the advantage for Europeans in having imposed sanctions? A favorable exchange rate could benefit the private sector, but only if you have the ability to exchange your currency for products from a country whose currency is devaluing. But as highlighted, since such exchanges aren’t taking place, it’s clear that there is no real benefit.
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If we look at this from the perspective of the Russian people—always using the logic of Western mainstream propaganda, which claims a drastic drop in the ruble would cause the population to turn against their “dictator”—we are still in the realm of fantasy. For ordinary Russians who earn and spend in rubles, the fluctuations in the ruble’s value against the dollar and euro matter little or not at all. First, because, thanks to appropriate fiscal policies from the Kremlin, these fluctuations don’t affect their lives. Second, even if they wanted to travel and spend in Europe or the United States, as we know, they are blocked from doing so by the very sanctions that the media so eagerly praises.
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Unfortunately, for those celebrating, the actions taken by the Biden administration have not targeted Russia as intended, but instead have hit Europe squarely once again. The new sanctionsimposed last Thursday by Washington primarily involve a near-total ban on Gazprombank’s access to the Swift system—this is the key bank that facilitated Russia’s gas exports to Europe.
In simple terms, the United States has effectively blocked the Russian bank from handling any new energy transactions, potentially cutting off the only way European clients can pay for Russian gas.
It’s clear that the main reason “the ruble continues to decline,” as stated by Yevgeny Kogan, a professor at the Higher School of Economics in Moscow, is the sanctions on Gazprombank, which was a crucial institution for exporters.
I touched on this briefly here. America plays Eurocucks like a fiddle.
Insomniac Resurrected 