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Russia's economy is not doing well

Djfan said:
Not that Putin or his Putinistas care, but this is an interesting twist.

The State of Russia's Wartime Economy
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Kinda. Russia's production and GDP fell sharply in early 2022, but has rebounded somewhat. Further, Russia's developing economic ties to China - a move forced by the Ukraine frenzy in the West - is promoting growth. Also, Russia's current national debt is less than $200 billion. The United States will run up more debt this year than Russia's current combined national debt for its entire history.

Finally, Brazil, Russia, India and China (BRIC) are working to replace the dollar as the world's currency. The ONLY reason the United States can fake having a healthy economy is because the dollar is the world's currency. What that means is because there are so many dollars world-wide - hundreds of trillions really - the United States' moronic printing of unbacked currency causes some inflation, but not remotely close to what would be the case if the dollar were no longer the world's currency.
 
Two graphs give us a comparison of how dreadful the United States economy really is when compared to Russia:

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Their growth in production of hard goods - metals, computers, electronics, transportation, aircraft, machinery - outpaces the United States' growth over the same time frame post-Covid lockdowns.

https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd4f662e6-014c-4c08-8af7-59ce31b99783_2886x1843.png


Russia's shrinking trade surplus? Is that supposed to be a joke? I guess having the United States' multi-billion dollar trade deficit is preferable? Because the sign of a leading economy is exporting raw materials and importing finished goods, like the United States is currently doing.

Wait ...
 
I read an article today that state there are approximately 22 trillion US dollars in circulation worldwide right now.
 
Sarge said:
I read an article today that state there are approximately 22 trillion US dollars in circulation worldwide right now.
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Yep - the benefit of being the world's currency. If there were $22 trillion in just the United States - or $64,000 per person currently in circulation - our inflation would be about 80%. The dollar would be worthless, and those who paid their bills and paid off every debt they have and scrimped and saved (like me and the Mrs.) would be absolutely screwed.
 
Steeltime said:
Yep - the benefit of being the world's currency. If there were $22 trillion in just the United States - or $64,000 per person currently in circulation - our inflation would be about 80%. The dollar would be worthless, and those who paid their bills and paid off every debt they have and scrimped and saved (like me and the Mrs.) would be absolutely screwed.
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You, and the rest of us, probably are already screwed. The movement away from the US dollar is more widespread than ever, and the harsh reality of it all is coming our way.

The point of the article is not to compare the health of the US economy to the Russian economy, but to point out that indicators are going the wrong way for them. You pointed out that they are not as bad as indicated. You may well be correct, but at no time should the Russians be comparing their economy to ours. Ours is a disaster.
 
Djfan said:
You, and the rest of us, probably are already screwed. The movement away from the US dollar is more widespread than ever, and the harsh reality of it all is coming our way.

The point of the article is not to compare the health of the US economy to the Russian economy, but to point out that indicators are going the wrong way for them. You pointed out that they are not as bad as indicated. You may well be correct, but at no time should the Russians be comparing their economy to ours. Ours is a disaster.
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At current, Russian Rouble(sp) is worth about a penny, or so I read.
 
Sarge said:
At current, Russian Rouble(sp) is worth about a penny, or so I read.
Click to expand...
So the American dollar is going to be worth less, the Russian ruble is not worth much....who benefits?



The guys not involved in the war games.
 
Djfan said:
The point of the article is not to compare the health of the US economy to the Russian economy, but to point out that indicators are going the wrong way for them. You pointed out that they are not as bad as indicated. You may well be correct, but at no time should the Russians be comparing their economy to ours. Ours is a disaster.
Click to expand...

7vywuv.jpg
 
Djfan said:
This is interesting and pertinent.

Iran and Russia Consider Issuing Gold-Backed Stablecoin, Officials Unveil
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Russia had a vastly reduced interest in the destruction of the United States between 1992 and 1996. America's push to expand NATO to include former Soviet provinces changed that. America's endless wars and intervention in the Middle East exacerbated the conflict, and the move to add Ukraine to NATO - a direct violation of America's promises made in 1992 - was the final straw.
 
Russia is fine. They have oil and gas and all the other commodities people need as well.
 
Sarge said:
At current, Russian Rouble(sp) is worth about a penny, or so I read.
Click to expand...

The direct exchange rate is not relevant for examining currency; the relevant statistic is the change in exchange rate vs. the dollar (the world currency). The peso has traditionally been worth about 1/15th of a dollar (6.5 cents). That really does not mean much. If the peso falls to 1/30th of a dollar, that means a lot. If the peso rises to 1/8th of a dollar, that also means a lot.

The ruble has definitely taken a hit, as it has been reasonably close to 70 rubles per dollar 2018 to the end of 2021. The value dropped to 130 rubles per dollar in February of 2022, but rebounded to 51 rubles per dollar in June of 2022. It then declined in value to 99 rubles per dollar on August 7, 2023, but has rebounded again to its current level of 92 rubles per dollar.

Loading…

tradingeconomics.com

That is a significant loss of buying power on the world stage, and in fact the supposed "decline" in Russia's trade surplus is probably due in large part to the decline in value of the ruble. Even with that hit, the Russian economy still shows a trade SURPLUS.

Finally, keep this in mind: when you hear the bleating sheep from the Xiden administration brag that the United States has "the lowest inflation rate of all G-7 nations," remember that is ONLY because the dollar is the world's currency (for now). If the dollar were not the world's currency, its value would make the value of the ruble seem stable.

The $32 trillion debt is going to crush this nation. This nation's standing in the world is due in large part to the fact we pay our debts. We repaid debts owed to the British after the Revolutionary war. The United States is not some purple-haired queer studies major, who can beg for daddy to "forgive" its debts. But we literally cannot pay our debt right now. We can't. If we paid down the debt by $500 billion per year, it would take 64 years to pay it off.

Which politician do you know is willing to reduce Fed spending by $1.9 trillion per year to eliminate the deficit (projected to be $1.4 trillion for 2023) and pay down the debt by $500 billion annually? Exactly.
 
DBS1970 said:
Russia is fine. They have oil and gas and all the other commodities people need as well.
Click to expand...
don't forget that they're also helping other countries - such as HUNGARY - build power plants.
 
Steeltime said:
The direct exchange rate is not relevant for examining currency; the relevant statistic is the change in exchange rate vs. the dollar (the world currency). The peso has traditionally been worth about 1/15th of a dollar (6.5 cents). That really does not mean much. If the peso falls to 1/30th of a dollar, that means a lot. If the peso rises to 1/8th of a dollar, that also means a lot.

The ruble has definitely taken a hit, as it has been reasonably close to 70 rubles per dollar 2018 to the end of 2021. The value dropped to 130 rubles per dollar in February of 2022, but rebounded to 51 rubles per dollar in June of 2022. It then declined in value to 99 rubles per dollar on August 7, 2023, but has rebounded again to its current level of 92 rubles per dollar.

Loading…

tradingeconomics.com

That is a significant loss of buying power on the world stage, and in fact the supposed "decline" in Russia's trade surplus is probably due in large part to the decline in value of the ruble. Even with that hit, the Russian economy still shows a trade SURPLUS.

Finally, keep this in mind: when you hear the bleating sheep from the Xiden administration brag that the United States has "the lowest inflation rate of all G-7 nations," remember that is ONLY because the dollar is the world's currency (for now). If the dollar were not the world's currency, its value would make the value of the ruble seem stable.

The $32 trillion debt is going to crush this nation. This nation's standing in the world is due in large part to the fact we pay our debts. We repaid debts owed to the British after the Revolutionary war. The United States is not some purple-haired queer studies major, who can beg for daddy to "forgive" its debts. But we literally cannot pay our debt right now. We can't. If we paid down the debt by $500 billion per year, it would take 64 years to pay it off.

Which politician do you know is willing to reduce Fed spending by $1.9 trillion per year to eliminate the deficit (projected to be $1.4 trillion for 2023) and pay down the debt by $500 billion annually? Exactly.
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I couldn't agree more. This game is unsustainable, and the crash will be either very significant and long term, or total. Not sure which I prefer.
 
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