Russian Ruble in State of Collapse

1 Comment on Russian Ruble in State of Collapse

1. Don’t be stupid. People keep saying the price of gold, Bitcoin, etc is going up, but what’s really happening is the buying power of the dollar is falling so that it requires more dollars – but ONLY dollars! – to buy gold, BTC, etc.

   Ifg you’ve messed with computers you know that numbers can be represented in decimal (‘base 10’, in mathematician speak) or binary (‘base 2’). We see, here, that “value” is not to be found in a sequence of digits. Those digits only have meaning within the context of an economic system.

   Think of an economic system as a galaxy – a million participants, and all of their interrelationships, influencing one other’s trajectories. At one time the Russian economy and the American economy did not touch one another. Then, they did. Eventually, they merged. People thought that they might join; but, no, it was not to be, and now we see the two great economies, like two galaxies, drifting apart again.

   Russians don’t care about the exchange rate because they don’t use dollars. They use rubles, equal to about a penny apiece, and they don’t have to deal with prices getting jacked up $10 because there is no $10 denomination, there are only rubles and maybe that keep everyone a little more honest.

   Ultimately it’a all about whether everyone trusts their monetary system enough for it to be used as the tool it is, to measure the value added by energgy producers and those who ise that energy to create food, goods, and services. If Russians can extract and process oil and collect and store wattage and use it to carry out industry they don’t need dollars; they have everything they need.

   We should all be doing the same thing. Invest in yourself. Invest in your tools. Get out of debt. Learn to make things. Simplify. Separate your needs from your wants.

   Food for thought.

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