Russian lawmaker seeks to ban US dollar, predicts 2017 collapse

[lucky4034]

Article

To protect Russians against the “collapsing US debt pyramid”, a Russian legislator has filed a draft bill to ban circulation of the currency in Russia.
Once a Moscow mayoral hopeful, Mikhail Degtyarev, 32, likens the US dollar to a worldwide ponzi scheme which he says is scheduled to end in 2017.

 

[jake blue]

While this prediction may be true, unless Russia intends to monetarily isolate itself from the international currency market altogether then they're going to have a tough time of it since the US Dollar is the de facto currency of the international monetary market and the benchmark against which other currencies are valued.

 

[lucky4034]

While this prediction may be true, unless Russia intends to monetarily isolate itself from the international currency market altogether then they're going to have a tough time of it since the US Dollar is the de facto currency of the international monetary market and the benchmark against which other currencies are valued.

That is the lawmakers point.... He wants to ban the US Dollar in country to escape some of the fallout

 

[Blackhawk2001]

Because the ruble is such a strongly popular currency worldwide.

 

[drop45]

I've got two rubles stashed away in my safe, just in case.

 

[Jludo]

While this prediction may be true, unless Russia intends to monetarily isolate itself from the international currency market altogether then they're going to have a tough time of it since the US Dollar is the de facto currency of the international monetary market and the benchmark against which other currencies are valued.

I dont think anyone disputes that right now. I believe the point is that the dollar will be replaced as the world reserve currency and they're trying to protect themselves. Russia, I'm sure, is more than capable of trading in euros and yen. I don't think they are as reliant on the dollar as most other countries.

 

[Jludo]

Because the ruble is such a strongly popular currency worldwide.

But its not

 

[Principal Skinr]

I'm sure that with stalwart economies, like Greece, Europe and the Euro is a good way to go.

 

[jake blue]

I dont think anyone disputes that right now. I believe the point is that the dollar will be replaced as the world reserve currency and they're trying to protect themselves. Russia, I'm sure, is more than capable of trading in euros and yen. I don't think they are as reliant on the dollar as most other countries.

Understood but globally the way currencies are equated to one another is according to the relationship of each to the USD. The ruble is currently ~32 to the dollar and the euro is ~0.75 to the dollar and this is how it is calculated that the ruble is ~42 to the euro. The US Dollar has been the benchmark global currency since the end of WWII as a means to stabilize the global economy following the war but by taking the dollar off the gold standard the real value of the dollar was thereby dependent on the stability of the US economy instead of US gold reserves. This probably made sense when the American economy was the fasted-growing national economy in the world, thanks in large part to the war itself. Fast-forward 75 years and you find out that when the US economy stumbles it affects the entire world.

I certainly don't know how much consumers utilize the US Dollar within the Russian market but I don't know that this would really be the motivation behind the legislative proposal in the original post. If the dollar did tank, it would simply mean that the US Dollar would plummet in relationship to its buying power of Russian goods... one day a US Dollar will buy you a case of Russian vodka and the next day it wouldn't buy you a shot glass of the same vodka. The same thing happens in many economically unstable nations. I visited Mexico several summers as a teenager and from one year to the next the peso went from 200 to the dollar to over 2,000 to the dollar! It simply meant that I got more pesos when I exchanged my dollars and few dollars when I exchanged them back. Therefore the only real motivation I can see in the Russian legislative proposal is because the thinking is that the US Dollar is going to drop in value so fast that from one day to the next the dollars-to-rubles exchange rate will plummet and holders of US Dollars will suddenly be left with worthless paper. I doubt it would happen so rapidly but it probably will happen over time and has been since we left the gold standard.

 

[Hoosier8]

Each reserve currency has ended at some point in time. We may not see it in the near future or our lifetime but we are headed in that direction. When the majority of countries agree, the dollar will no longer be the reserve currency.

 

[buckstopshere]

The last economic news I remember hearing from Moscow involved screwing over the people of Cyprus. I don't need the Russians telling me what I already know.

anyone who predicts when our collapse is going to happen is full of

 

[BigMatt]

The last economic news I remember hearing from Moscow involved screwing over the people of Cyprus. I don't need the Russians telling me what I already know.

anyone who predicts when our collapse is going to happen is full of

It will happen in the future.

 

[jake blue]

Each reserve currency has ended at some point in time. We may not see it in the near future or our lifetime but we are headed in that direction. When the majority of countries agree, the dollar will no longer be the reserve currency.

It also looks like the amount of time one nation's currency serves as the reserve currency is pretty consistently limited and America's timeline is approaching that limit.

 

[Tombs]

While this prediction may be true, unless Russia intends to monetarily isolate itself from the international currency market altogether then they're going to have a tough time of it since the US Dollar is the de facto currency of the international monetary market and the benchmark against which other currencies are valued.

That's exactly what they're doing.

Russia and China are working out a new currency that's actually backed up by assets instead of debt.

 

[jake blue]

If that is so then that would seem to suggest the beginning of the end of the dollar's reign.

 

[zippy23]

buy guns and ammo,

 

[buckstopshere]

It will happen in the future.

That is a fact. It could happen tomorrow or 2017 or 2025. But yes, it will happen.

 

[Waveraider]

That's exactly what they're doing.

Russia and China are working out a new currency that's actually backed up by assets instead of debt.

Isn't that the same thing when we had the "Gold Standard" and "Silver Certificates" before we had "Ferderal Reserve Notes"?

 

[2ADMNLOVER]

That's exactly what they're doing. Russia and China are working out a new currency that's actually backed up by assets instead of debt.

I haven't heard anything about Brazil but the rest of the BRIC nations started buying gold by the ton like crazy earlier this year .

 

[OneShotFOGE]

This article seems to be more about Russia trying to strengthen their currency than America losing their own. Im not saying that its not going to happen. But I think the Russian govt is just grasping at straws for an excuse to bolster their own currency.