A few weeks ago, I presented a scenario that the Russian attack is more than just a kinetic war/invasion with Ukraine. Additionally, I see a long game plan that has been in work (and now unfolding) for around a decade to seemingly displace the US dollar as the world reserve currency. See the blog here: Is There More to The Invasion of Ukraine? https://moneyplainandsimple.com/?p=1871
This is a follow on of even more events that are taking place since my original blog that will strengthen this presumption. It appears that the US has dipped in the ‘sanction well’ a few too many times to exercise an economic punishment over a nation and now other nations are showing a growing interest in siding with Russia and China to lessen the impact of economic sanctions that are imposed upon them by the USA.
So, to add to their strategy, it is a must that the Russians need to strengthen the Russian Ruble. At the time of sanctioning, the Ruble’s value was less than one cent (US). They need to make the Ruble a currency worth buying and holding, and adding value to it is necessary. Here are a few actions items the Russians have initiated since my 1st blog about this:
The Russian Ruble has already risen in value by over 50% to date in just a few short weeks. To the best of my understanding, as the Russians pivot sharply to strengthen their economy, the US is continually weakening its economy. Instead, the US president just proposed another $5.8 trillion dollar budget and proposes how it will be paid for is by taxing the rich. We all should know by now how this works out and the taxes will be pushed down to the tax payer that is the hard-working American from the middle class and not the wealthy. My point is this, the US elite/politicians are not going in a direction to strengthen the US economy. Instead, they are selling a spending more package that ultimately creates more inflation on its citizens and a weaker USA. Remember, we do not have this money and it has to be borrowed. When it is borrowed, it is created. When more currency is created, the dollars in existence become less valuable. Having a sound monetary policy would end this game!
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