is now the time to buy Russia ETFs? They're down like 98%

That is one of the main reasons China been buying land and mines in Africa for a very long time. China plays the long game unlike the West.
 
RedSun said:
What legal obligations you talking about? Their $$$ is in US bank and US won't allow them to use it. Where they get the $$ to pay?

Does not make any sense.
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You clearly don't understand it.
Debts will be paid in Rouble, not in $$$. But Rouble lost 50% of its value. So contractors that work in Western currencies, lose 50%.

Today there was also a proposition to vote to nationalize all foreign companies that leave Russia. In other words Russia just steals all foreign assets that are in Russia.
 
smallfil said:
The Chinese idea is to replace the US dollar with the Yuan as the reserve currency. As long as their currency reserves is in dollars, the US can just grab their currency reserves like they did to Russia, if they get sanctioned. You will be at the mercy of US banks handling your reserves. If the Chinese really want to protect themselves, the smart way is buy oil, lots of it and build silos to store hundreds of millions of barrels of oil. Buy commodities in bulk, gold, nickel, copper, palladium, etc. and hoard it, build storehouses to store it all. It is not going anywhere. Commodities and Oil will rise in price, as there are limited quantities. You will have most of what you need and not be held hostage by any country. Of course, China would also, have a strong military to impose its will in the South China Sea and even, invade Taiwan if they wish. I doubt the US would defend Taiwan.
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Remember that one country can never keep its own currency as foreign reserve. Any country can print its own money. There is no sense to hold own currency as reserve.
 
virtusa said:
You clearly don't understand it.
Debts will be paid in Rouble, not in $$$. But Rouble lost 50% of its value. So contractors that work in Western currencies, lose 50%.

Today there was also a proposition to vote to nationalize all foreign companies that leave Russia. In other words Russia just steals all foreign assets that are in Russia.
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You do not understand it at all.

If any Western country freezes foreign reserve, that country does not have to fulfil its obligation. It can just refuse to pay any foreign debt holders. Legally this is no man's land.

All rules are broken and hell gets loose. So why one party breaks the rule and the other party can't?
 
As I mentioned elsewhere... Bill Ackman is once again on his "Hell is coming!" soap-box. This actually gives me hope that things will improve soon.
 
zdreg said:
That is one of the main reasons China been buying land and mines in Africa for a very long time. China plays the long game unlike the West.
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Putin believes that the Western economies are like Potemkin villages. Therefore it was an ideal time to invade.
 
The thread title "is now the time to buy Russia ETFs? They're down like 98%" and this thread is in one of the Trading forums. If you'd like to discuss the politics of the war in Ukraine, Russia, etc. please take it to the Politics forum.
 
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