Russian ruble is scam

[DrBeer]

Ruble is not a scam the default in the currency doesn't male it a scam,since we know the reason behind it. The ongoing war and sanction of Russia from the western world has led  to the default in Ruble. With all the sanctions and ongoing war,Russia economy is still far better than some European countries because Russia has abundant of gas. I don't see this default as some drastic,since almost every country currency do default. No currency used by a government is scam. Russia needs to stop the ongoing war and embrace peace for the betterment of their economy.

       Yes, there is a lot of gas in Russia, but no one wants to buy it anymore because of the same economic blockade. Europe has almost completely abandoned this Russian resource and buys from others. It is already known that 50% of income from this source does not go to the treasury.
        For the default. So he has been several times in recent years. The country could not fulfill its obligations to investors. Somehow they got out, but these are prerequisites for something terrible. It seems to me that there is still more to come.

Russia is supported by its allies to overcome its economic and financial crisis imposed by Western sanctions. These allies are essentially the BRICS alliance, which includes major economies capable of absorbing Russian exports. Two days ago, it was announced that Indian imports from Russia reached their highest levels in their history, and Chinese imports of Russian energy products also reached record levels. We do not fail to mention that these surpluses of imports are acquired at very low prices compared to prices in the global market, but it seems that this does not bother Russia due to its huge production and its ability to meet its needs at low prices. In addition to Russia controlling a large part of the Ukrainian economy and targeting its vital facilities to increase demand and raise the price in the global market, and I mean especially grain.

From the outside, it looks exactly as you say. But if you look behind the scenes.
To begin with, I agree with you - the BRICS countries have indeed taken over a significant part of Russia's exports. And now let's clarify what and how?
To be more precise, let's start with what was Russia's main export before it unleashed the terrorist war in Ukraine ?
More than 50% of russia's exports were:
- oil+gas
- military industrial products
- metals

Any comments on these export items ? I am sure - no, because everything is in open sources.

And what of the key export items have the BRICS countries "taken for themselves"?

1. Gas. Off target. The BRICS countries did not pick up the gas exports that the EU has now refused to buy. Russia's backward gas transportation network does not allow it.
2. Oil. Here I agree. India and China have extremely increased their purchase of Russian oil. But this is the funniest story Oil is bought at huge discounts and paid for with yuan and rupees! But that's half the comedy. The main comedy is that these rupiahs and yuan cannot be converted into a currency that is critically important to russia. It is impossible to turn these pieces of paper into something critically important - both China and India sell only consumer goods for their currency.
3. The military-industrial complex - this is a simple fact. The largest buyer of Russian scrap metal, having seen its "effectiveness" in a real war, and not on advertising brochures, broke virtually ALL contracts with Russia - from joint development to the purchase of finished products.
4. Metals ? Look who are the leaders in the EXPORT of metals ? Who are the EXPORT leaders ?.... Drum roll !!! China and India ! Question - even if they will buy metal from Russia - what price will it be, given their leadership in the industry ?

So on the one hand you are right, but the reality is far from positive

[coupable]

Ruble is not a scam the default in the currency doesn't male it a scam,since we know the reason behind it. The ongoing war and sanction of Russia from the western world has led  to the default in Ruble. With all the sanctions and ongoing war,Russia economy is still far better than some European countries because Russia has abundant of gas. I don't see this default as some drastic,since almost every country currency do default. No currency used by a government is scam. Russia needs to stop the ongoing war and embrace peace for the betterment of their economy.

       Yes, there is a lot of gas in Russia, but no one wants to buy it anymore because of the same economic blockade. Europe has almost completely abandoned this Russian resource and buys from others. It is already known that 50% of income from this source does not go to the treasury.
        For the default. So he has been several times in recent years. The country could not fulfill its obligations to investors. Somehow they got out, but these are prerequisites for something terrible. It seems to me that there is still more to come.

Russia is supported by its allies to overcome its economic and financial crisis imposed by Western sanctions. These allies are essentially the BRICS alliance, which includes major economies capable of absorbing Russian exports. Two days ago, it was announced that Indian imports from Russia reached their highest levels in their history, and Chinese imports of Russian energy products also reached record levels. We do not fail to mention that these surpluses of imports are acquired at very low prices compared to prices in the global market, but it seems that this does not bother Russia due to its huge production and its ability to meet its needs at low prices. In addition to Russia controlling a large part of the Ukrainian economy and targeting its vital facilities to increase demand and raise the price in the global market, and I mean especially grain.

From the outside, it looks exactly as you say. But if you look behind the scenes.
To begin with, I agree with you - the BRICS countries have indeed taken over a significant part of Russia's exports. And now let's clarify what and how?
To be more precise, let's start with what was Russia's main export before it unleashed the terrorist war in Ukraine ?
More than 50% of russia's exports were:
- oil+gas
- military industrial products
- metals

Any comments on these export items ? I am sure - no, because everything is in open sources.

And what of the key export items have the BRICS countries "taken for themselves"?

1. Gas. Off target. The BRICS countries did not pick up the gas exports that the EU has now refused to buy. Russia's backward gas transportation network does not allow it.
2. Oil. Here I agree. India and China have extremely increased their purchase of Russian oil. But this is the funniest story Oil is bought at huge discounts and paid for with yuan and rupees! But that's half the comedy. The main comedy is that these rupiahs and yuan cannot be converted into a currency that is critically important to russia. It is impossible to turn these pieces of paper into something critically important - both China and India sell only consumer goods for their currency.
3. The military-industrial complex - this is a simple fact. The largest buyer of Russian scrap metal, having seen its "effectiveness" in a real war, and not on advertising brochures, broke virtually ALL contracts with Russia - from joint development to the purchase of finished products.
4. Metals ? Look who are the leaders in the EXPORT of metals ? Who are the EXPORT leaders ?.... Drum roll !!! China and India ! Question - even if they will buy metal from Russia - what price will it be, given their leadership in the industry ?

So on the one hand you are right, but the reality is far from positive

I agree with you that Russia may not fully benefit from the attempts of its BRICS allies to support it during the war, and that it remains limited support. However, I would like to correct a few points you mentioned:
- In addition to the three materials that you mentioned, you forgot the Russian production capacity of grains, which together with the Ukrainian production represent nearly a third of the global production. With grain supplies cut off from Ukraine, imagine Russia's chances of selling wheat at a higher price.
- China imports liquefied gas from Russia by 50 percent of its total imports of liquefied gas and is in the process of preparing a gas pipeline that extends across Siberia. Russian gas supplies have increased significantly since January 2022.
- India cannot provide much support because of its geographical location far from Russia and its ability to provide its gas needs from its Asian neighbors, and oil from the Gulf countries across the Indian Ocean.
- Russian weapons are popular with all countries wishing to get rid of the authority of America and the West over them. Here I mean African countries and other countries that have an international presence, such as North Korea, Eritrea, Iran, and others.

If we eliminate the idea that this aid does not provide sufficient support, can you explain to us how Russia supports its military position by not stopping and continuing the war?

[19Nov16]

Financial problems that occur with Ruble also occur a lot with other countries, but I'm sure that the Russian government will do everything to be able to make Rubles normal again, and we who hold Rubles don't worry because everything will get better soon.

[RewFrew]

No i Couldn't think Russian Ruble is scam. After start Russia Ukraine War Russian Ruble has been more popular and more strong. Now a days many country using ruble for trading with Russia. Because Russia did it mandatory to trade means import export with Russia. So ruble now very strong. Mainly European Union dependent on russian gas. They are buying gas from Russia by Ruble. So i thinl day by day ruble being strong not scam.

[goaldigger]

Over the past 123 years, the Russian ruble has defaulted three times. What is the probability of a fourth default?

It’s not but its a fiat currency where the government have the full control.
Failing currency doesn’t mean a scam one as this is still their commodity and currency. If you’re not using Ruble then don’t stress yourself with this because fiat currency will always experience inflation and the worst is, getting defaulted which came from the poor government system. Let’s see if they will rise this time as the USD is showing its weakness for the past Months and many are predicting the rise of the BRICS countries.

[Wimex]

The possibilities of default of the Russian ruble do not make "scam" to the official and consolidated currency of a nation, it may be a volatile currency negatively at present but to assert it as a scam is too severe, it is like saying that an entire country does not exist or that it was falsely created only to profit and that is too far-fetched, beyond this and as mentioned in other answers, it is necessary to separate feelings from reality and above all in the socio-economic aspects of any analysis, and with this to understand that the Russian ruble is an aspect linked to a nation that in this particular case will see its currency plummeting because the West punishes in this way the actions that do not serve its interests whenever it has the possibility.

[coupable]

No i Couldn't think Russian Ruble is scam. After start Russia Ukraine War Russian Ruble has been more popular and more strong. Now a days many country using ruble for trading with Russia. Because Russia did it mandatory to trade means import export with Russia. So ruble now very strong. Mainly European Union dependent on russian gas. They are buying gas from Russia by Ruble. So i thinl day by day ruble being strong not scam.

The aim of those Russian measures, by imposing the use of the ruble for trade exchanges with it, is a response to its withdrawal from the Swift system, before it decided at a later time to stop gas supplies through pipelines. Russia knew that this option could not be pursued, because it is almost impossible for countries to provide that amount of liquidity in the ruble.
The ruble generally has a good position in the global market as one of the strongest major currencies, and even in the reality of the international crisis that Russia is currently going through, the BRICS countries with Russia's strategic allies around the world will not stop supporting it. This is within the framework of the anti-dollar policy as well.

[DrBeer]

Russian Ruble is a scam just like the USD. Back in the 70’s USD defaulted too when they removed the USD from the gold standard. Right now every FIAT currency is a scam because nothing is backing them. The central banks can create FIAT out of thin air unlike gold which you need to work hard to get it from the ground. Don’t be so hopeless though, every FIAT currency in history failed and that means any FIAT currency in existence right now will also fail.

Quite a controversial comparison
Tell me - in what currency do ...Russian aligarchs and the Kremlin top brass have most of their savings? I'll give you a hint - in dollars
And tell me - what famous people keep their savings in rubles ? Can't name them ? So no one can name
Or another question - in international trade, what currency everyone wants to receive - dollar or ruble ?
Perhaps in some sense all fiat is a fake. But there is a fake that has international support and demand (US dollar), and there is a real scam, or rather worthless and really, nothing secured papers (Russian ruble).

[Fortify]

Over the past 123 years, the Russian ruble has defaulted three times. What is the probability of a fourth default?

The Ruble is probably more protected that previous situations, because Putin made an active attempt to build up reserves and cut as much debt as possible before he decided on the disastrous attempt at invading Ukraine. However the world has only become more globalized in the last few decades, so it's impossible to cut off ties completely and ultimately nobody now wants to touch the ruble at all. That means in order to trade and buy exports from other countries, they have to offer other things or a very unfavorable rate, if they can even get past the sanctions that are currently imposed. At the moment the Russian economy is slowly disintegrating and the reserves have pretty much disappeared. Instead of selling at premium rates to their next door neighbors, they are having to accept dismal trades and cover long distance transport costs too.

[DrBeer]

Over the past 123 years, the Russian ruble has defaulted three times. What is the probability of a fourth default?

The Ruble is probably more protected that previous situations, because Putin made an active attempt to build up reserves and cut as much debt as possible before he decided on the disastrous attempt at invading Ukraine. However the world has only become more globalized in the last few decades, so it's impossible to cut off ties completely and ultimately nobody now wants to touch the ruble at all. That means in order to trade and buy exports from other countries, they have to offer other things or a very unfavorable rate, if they can even get past the sanctions that are currently imposed. At the moment the Russian economy is slowly disintegrating and the reserves have pretty much disappeared. Instead of selling at premium rates to their next door neighbors, they are having to accept dismal trades and cover long distance transport costs too.

"We do not have an external debt", "Yes, look at the external debt of the United States"!
The eternal theme for intellectual masturbation in Russia Well, how else to convince yourself that everything is fine with you, or rather justify that around you is "good", although you yourself understand that this is the level of a third world country

Here are the countries with even less external debt:
Venezuela 0 billion USD
Burundi May 2023 0.614 billion USD
Swaziland Q1/23 USD 0.814 billion
Lesotho Q3/22 USD 0.818 billion
Liberia Q1/23 USD 1.136 billion
Botswana Q3/22 USD 1.271 billion
Chad Q4/16 USD 1.36 billion
Belize 2022 1.363 B USD
Guyana Q4/22 USD 1.572 billion
......

Russia Q2/23,348 billion USD

Tell me - do you really believe that the minimum amount of external debt speaks of a high standard of living? Or about economic stability?

Well, the question is about the stability of the steering wheel - name the list of countries conducting transactions in rubles, and the turnover of this trade in rubles?

[davis196]

Over the past 123 years, the Russian ruble has defaulted three times. What is the probability of a fourth default?

Why are you talking about the Russian ruble in particular? Basically every fiat currency is a more or less a scam.
Do you think that the US dollar, Euro, Chinese Yuan and British pound are better? I don't think so.
I remember some news from 2022, claiming that Russia was in a technical default(unable to pay it's foreign debts due to the western sanctions). Well, this didn't have any obvious impact over the Russian economy. Russia has big currency reserves(some of them are blocked in western banks) and low government debt. I don't think that Russia will go bankrupt anytime soon(and I'm not a fan of Putin).

[DrBeer]

Over the past 123 years, the Russian ruble has defaulted three times. What is the probability of a fourth default?

Why are you talking about the Russian ruble in particular? Basically every fiat currency is a more or less a scam.
Do you think that the US dollar, Euro, Chinese Yuan and British pound are better? I don't think so.
I remember some news from 2022, claiming that Russia was in a technical default(unable to pay it's foreign debts due to the western sanctions). Well, this didn't have any obvious impact over the Russian economy. Russia has big currency reserves(some of them are blocked in western banks) and low government debt. I don't think that Russia will go bankrupt anytime soon(and I'm not a fan of Putin).

The issue is the real value and providing value to the currency.
For example, the U.S. does not have all the world's reserves of natural resources, but the dollar is still the most desirable currency, and the most liquid.

The Russian ruble looked pretty good until 2014, it's true and it's silly to deny it. "Supported" the ruble:
- Oil and gas
- Powerful military-industrial complex
- Russia's high international status
- Sufficiently deep integration into the world economy, especially into the EU economy
- Sufficiently good relations with leading Western countries.

After 2014 this began to "melt", and after 2022 - simply collapsed ! And the whole problem is that russia has driven itself into the worst position of all time - now it is a pariah country, the government is a toxic contact, the army is a fake, the economy is a fake, a terrorist country,.... In short the full gentleman's kit.... mega-loser! And the trends in russia and its economy are not positive at all.
That's why the ruble looks so bad now, and in a quarter - let's revisit the issue, I'm sure you will have no questions and doubts about the ruble.

[Unbunplease]

Why are you talking about the Russian ruble in particular? Basically every fiat currency is a more or less a scam.
Do you think that the US dollar, Euro, Chinese Yuan and British pound are better? I don't think so.
I remember some news from 2022, claiming that Russia was in a technical default(unable to pay it's foreign debts due to the western sanctions). Well, this didn't have any obvious impact over the Russian economy. Russia has big currency reserves(some of them are blocked in western banks) and low government debt. I don't think that Russia will go bankrupt anytime soon(and I'm not a fan of Putin).

The problem is that we do not know how much a currency is backed by gold. Officially, yes, it is backed by gold, but in reality, maybe all the vaults have been looted and instead of gold bars there are fake ones? There are real gold bars on the outside, but not inside. How do we know? We don't. We have to take your word for it. Bitcoin, at least it has the appearance of a blockchain.

[Wend]

Why are you talking about the Russian ruble in particular? Basically every fiat currency is a more or less a scam.
Do you think that the US dollar, Euro, Chinese Yuan and British pound are better? I don't think so.
I remember some news from 2022, claiming that Russia was in a technical default(unable to pay it's foreign debts due to the western sanctions). Well, this didn't have any obvious impact over the Russian economy. Russia has big currency reserves(some of them are blocked in western banks) and low government debt. I don't think that Russia will go bankrupt anytime soon(and I'm not a fan of Putin).

The problem is that we do not know how much a currency is backed by gold. Officially, yes, it is backed by gold, but in reality, maybe all the vaults have been looted and instead of gold bars there are fake ones? There are real gold bars on the outside, but not inside. How do we know? We don't. We have to take your word for it. Bitcoin, at least it has the appearance of a blockchain.

Today, no coins are backed by gold, the abolition of the gold standard was implemented in 1971 due to increased demand for the currency, while gold hoarding became increasingly difficult. It can be said that fiat is just a paper with no value, their value is determined by the government, so it is a government protected scam. It can collapse at any time when the government is no longer able to protect it.

[Latviand]

Financial problems that occur with Ruble also occur a lot with other countries, but I'm sure that the Russian government will do everything to be able to make Rubles normal again, and we who hold Rubles don't worry because everything will get better soon.

Not really, other countries don't start invading neighboring countries and face sanctions that destroy their economy. Yes, they will do everything in their power but I am sure that most Russians will have to suffer from the currency devaluing. Regarding getting better, if the war continues, I don't think that being better is going to come to the citizens soon. Putin wants to absorb Ukraine so I am sure that he will do everything to do that including facing another default.

[dothebeats]

Financial problems that occur with Ruble also occur a lot with other countries, but I'm sure that the Russian government will do everything to be able to make Rubles normal again, and we who hold Rubles don't worry because everything will get better soon.

Not really, other countries don't start invading neighboring countries and face sanctions that destroy their economy. Yes, they will do everything in their power but I am sure that most Russians will have to suffer from the currency devaluing. Regarding getting better, if the war continues, I don't think that being better is going to come to the citizens soon. Putin wants to absorb Ukraine so I am sure that he will do everything to do that including facing another default.

I agree with you. With the way things are going right now and how Putin is acting, wanting so absorb Ukraine badly, it will take for some time for everything to be better for the citizens. The effects of what happened cannot just be shoved back and act as if nothing happened, like everything can go back to the way it used to be in a snap. It will take years for everything to go back to normal, not even better.

[DrBeer]

1 ruble, now worth 1 cent. A strong ruble, with 40% of the world's resources behind it, the geopolitical leader of the world, the world's second army, oil and gas - on which the whole world depends. It is now worth 1 cent, 1/100th of a dollar, which is "not backed by anything", which "everyone refuses to give up".

That was of course a joke ! No, about 1 ruble=1 cent is a fact, a joke about the dollar not secured and not needed by anyone
And now it is not a joke at all - you know what the Russian government is proud of ? They are proud of the fact that due to this wild inflation, the volume of unsecured money supply (they consider it "profit" for some reason) increased by 1 trillion rubles !
Here are the news headlines "The government made a trillion on the collapse of the ruble" ?  

[Wend]

1 ruble, now worth 1 cent. A strong ruble, with 40% of the world's resources behind it, the geopolitical leader of the world, the world's second army, oil and gas - on which the whole world depends. It is now worth 1 cent, 1/100th of a dollar, which is "not backed by anything", which "everyone refuses to give up".

That was of course a joke ! No, about 1 ruble=1 cent is a fact, a joke about the dollar not secured and not needed by anyone
And now it is not a joke at all - you know what the Russian government is proud of ? They are proud of the fact that due to this wild inflation, the volume of unsecured money supply (they consider it "profit" for some reason) increased by 1 trillion rubles !
Here are the news headlines "The government made a trillion on the collapse of the ruble" ?  

Can you offer some coins backed by gold or any asset, even USD? There is no denying that the ruble is depreciating because of US and Western sanctions. But I remember there was a time when it returned to its pre-war value and now it's depreciated again. That suggests that the ruble will also be able to recover in the future. Moreover, it is important that the Russian economy remains resilient to millions of sanctions and cannot collapse or go bankrupt as many Western media are claiming.

[DrBeer]

1 ruble, now worth 1 cent. A strong ruble, with 40% of the world's resources behind it, the geopolitical leader of the world, the world's second army, oil and gas - on which the whole world depends. It is now worth 1 cent, 1/100th of a dollar, which is "not backed by anything", which "everyone refuses to give up".

That was of course a joke ! No, about 1 ruble=1 cent is a fact, a joke about the dollar not secured and not needed by anyone
And now it is not a joke at all - you know what the Russian government is proud of ? They are proud of the fact that due to this wild inflation, the volume of unsecured money supply (they consider it "profit" for some reason) increased by 1 trillion rubles !
Here are the news headlines "The government made a trillion on the collapse of the ruble" ?  

Can you offer some coins backed by gold or any asset, even USD? There is no denying that the ruble is depreciating because of US and Western sanctions. But I remember there was a time when it returned to its pre-war value and now it's depreciated again. That suggests that the ruble will also be able to recover in the future. Moreover, it is important that the Russian economy remains resilient to millions of sanctions and cannot collapse or go bankrupt as many Western media are claiming.

No ! And no one will ! That's exactly what I'm saying-- no one can:
- to back the currency with real gold
- to accept it as a new standard for international settlements !

The USA is no exception here, and it is pointless to argue about the problems that Nixon recognized, whether one likes the USA or not.

But let me clarify - the US dollar is not backed by gold, it is backed by economic, political, military, technological, .... and other advantages that are often unattainable by other countries and even unions !
That is why I explain - until there is a country/union with such a set of powerful characteristics - all the stories about replacing the dollar with some surrogates are just "wet dreams" and cheap populism !

[Sithara007]

Ruble has considerably weakened so far this year. At the beginning of the year, it was trading against the USD at a rate of 1 USD = 60 RUR. Now the exchange rate has gone down to 1 USD = 97 RUR. The fact that the Russian government is allowing this to happen, tells us what are their priorities. When the exchange rate goes down, it benefits the exporters. Those who export grain, oil and gas from Russia are benefitting from the devaluation of the Russian Ruble. At the same time, imports will be down since they have become more expensive.  Perhaps this is what the regime wants.