RUSSIAN Ruble COLLAPSES Below 100 Against US Dollar – HOWEVER, Russia is NOT as dependent on imports as Western Nations, Control The Means of Production (Forex Fiat Money Markets) – August 14, 2023

So I was watching a video from some guy who was trying to present an argument that the Russian economy is on the verge of collapse as if Russia doesn’t do any TRADING with other nations.

People tend to forget that the world TOLERATES the U.S. dollar and other “rule by fiat” currencies, primarily because fiat money allows ALL governments to live BEYOND their means.

I often write about Morality being far more important than a gold standard because a moral people can exist in a DEFLATIONARY currency environment. Immoral people, on the other hand, want something for nothing, and they want to use the MAGIC of government to achieve it.

Russia is still a country that leans to the left, and the people of Russia still accept authoritarian rule as part of their culture; now you would think in theory, capitalism would easily beat any brand of socialism, but you’d be wrong because capitalism and DEMOCRACY as currently constructed are not compatible.

In many Western nations, the voting public is so STUPID that they’ve either voted for a carbon tax or voted to have their government phase out fossil fuels. Many of these idiot voters have no idea that there is NO viable alternative to fossil fuels, and these same moronic voters imagine that they will be able to maintain their standard of living if the government 100% controls the energy markets.

In this war or fossil fuels environment, authoritarian and totalitarian economies become FAR superior and efficient in comparison to Western Nations. The problem is so bad that a lot of Western people imagine that FIAT MONEY will save us.

Now, let’s break down the Russian ruble; first and foremost, there are a lot of FINANCIAL sanctions on Russia, so the FOREIGN EXCHANGE value of the Russia Ruble in the forex market should fluctuate DOWNWARD, but a lot of Russian businesses are being SANCTIONED from using Rubles anyway, meaning that they’re being FORCED to sell rubles, which doesn’t necessarily work to their detriment.

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Because if I live in Russia, but I’ve already purchased a basket of other currencies to transact in, this actually enriches me and the Russian people with LOWER prices. You have to also remember that Russian energy is being bought in Rubles, and if the Ruble is losing value, but they’re selling a commodity that’s rising in value, who cares, what price the forex markets are valuing my currency?

Sure western nations can refuse to purchase energy from Russia DIRECTLY, but that doesn’t mean Russia is losing money; in fact, last time I checked, the cost of living in Russia as well as inflation, is doing a lot better than in Western Nations, who have VOTED to declare war on energy and PRODUCTIVITY.

There are a lot of idiots in finance, who are bean counters, yes, western nations have a monopoly on fiat money, but they don’t have a monopoly on the DOMESTIC cost of living.

People tend to forget the PRICE of regulations. When you vote for a government to impose an additional REGULATION on productivity, your domestic market will have to REDISCOVER prices at a higher PRICE.

If consumers can’t pay these higher prices, they’ll do without; well, the Russian people aren’t having to do without CHEAP energy because there’s no war on cheap energy in Russia. I think the main problem with the Russian war with Ukraine for Russia is grain shortages.

Commodities are far more important than fiat money, countries reset their currency all the time, and last time I checked, the Ruble hasn’t fallen so much that it needs to reset its currency.

In a fit monetary system, everything revolves around FISCAL policy because if it’s DIFFICULT or too EXPENSIVE for me to operate my business in your country, then I won’t exist there. It’s really that simple, and in case you’re not paying attention, most businesses are FLEEING Western nations; Western nations are increasingly becoming service sector economies, and that puts Russia in a position to DICTATE prices for commodities it has an abundance of.

The money supply has expanded so much in Western nations, and the people feel so entitled to free stuff from the government that we’re entering a phase that most people are going to find DIFFICULT to interpret.

The cost of living in Russia currently is EXTREMELY low, because they don’t have a welfare state. People tend to forget that socialism wasn’t imagined as a welfare state it was imagined as a superior and AFFORDABLE alternative to capitalism.

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And because western governments have straddled themselves with so many regulations, countries like Russia are now starting to look a lot CHEAPER in comparison, meaning that this lower-valued Ruble may actually start ATTRACTING capital into Russia.

Interesting times ahead!