What if Russia wants to end Fiat?

David's faith · Feb 24, 2022

I get the impression Russia/Ukraine is a war of Putin against the western monetary system. Russia sits on so many important ressources for Europe it can basically dictate inflation if they want to. ECB just today changed course again from hawkish to dovish, with Holzmann beeing the most hawkish member going full on "more QE please". It looks like Russia has grabed the tail of the dog ready to swing the dog in circles...

Maybe this will be bigger then 2008!? Maybe we will not have a western civilization as we know it soon.

CET · Feb 24, 2022

They may just end the fiat Ruble. At least they are off to a good start.

notagain · Feb 24, 2022

Ukraine is the first bite, why stop for Joe who can barely read the teleprompter.
Bankers vs Bullets?

xandman · Feb 24, 2022

No Govt wants to end their own currency. It is a license to steal via printing and inflation.

In fact, it is their primary task to keep the game going or face an uprising.

The_Krakenite · Feb 24, 2022

The last time the Ruble defaulted.... western hedge funds imploded, and who will forget the motherload LTCM back in 98?

Russia defaults, American tax-payer pays!

Funny how that works.

Peter8519 · Feb 25, 2022

Currency is relative in nature. Even bitcoin is measured in US dollar. Does it make any sense to have a bitcoin by itself? Cryptocurrency is not fiat? This is no gold to back it except it has finite supply. IF there is supply constraint, they will still be inflation.

sebking1986 · Feb 25, 2022

Did occur to me yesterday with the collapse of the Ruble that Russia just the other week did an about turn on banning crypto. Maybe as they plan to funnel their money there instead.

ZBZB · Feb 25, 2022

xandman said:
No Govt wants to end their own currency. It is a license to steal via printing and inflation.

In fact, it is their primary task to keep the game going or face an uprising.

In 1931 a rumour went on Sunday that the British fleet were getting a 25% pay cut instead of a 10% pay cut and mutinied by Wednesday the U.K. was off the gold standard.
https://en.m.wikipedia.org/wiki/Invergordon_Mutiny

SunTrader · Feb 25, 2022

Peter8519 said:
Currency is relative in nature. Even bitcoin is measured in US dollar. Does it make any sense to have a bitcoin by itself? Cryptocurrency is not fiat? This is no gold to back it except it has finite supply. IF there is supply constraint, they will still be inflation.

While fiat has nothing to back it and it has infinite supply.

Your point?

Scataphagos · Feb 25, 2022

When government says it wants to "end fiat"... what it really means is that it wants to "replace current fiat with NEW fiat" so they can start over with the overspending.