Gandalf
The Orange/White Wizard
- Joined
- Dec 7, 2012
- Messages
- 7,678
- Likes
- 21,328
Sure Russia doesn't import much from US/EU, but they still have to buy stuff. The ruble is worth 1% of what it used to be in US DOLLARS. When wholesalers go to purchase goods their buying power is 1% of what it was.
FYP - and then I propose you think about why I fixed it. What happens if they pay China for goods and convert Rubles to Yuan? oops, no dollar involved. People need USD because they want to buy oil - if Saudis start taking Yuan for it, then...
What you arent quite getting is that the only reason its a problem is because they are buying from people who ask for dollars. If those wholesalers pay in Yuan, Iranian Rials or whatever else, they can convert to that for far greater value than it is pegged to the dollar. After a bit that means the dollar itself collapses because fewer people are buying it to make purchases of goods.