Sanctions on Russia

Kyle Nelson2 said:🍿

So, where can you actually see the daily breakdown of how much money the Russians are burning through just to prop up the Ruble?

The Federal Reserve intervened in the foreign exchange market by selling 171 million euros to maintain exchange rate stability
This marks the first such currency intervention by the Federal Reserve since June 16, 2021.

The Federal Reserve is essentially forced to defend the currency; the foreign exchange reserves aren't an infinite well, and they primarily serve as collateral for debts—representing the holdings of foreign banks and investors within the US. Only a fraction of those funds can be deployed by the Federal Reserve to stabilize the exchange rate, and in a true crisis, the Federal Reserve might even have to borrow euros from the European Union. Consider the broader mechanics: when the dollar strengthens while the euro weakens, and the European Union has to purchase oil, gas, and raw materials on the global market—which requires paying in dollars—they are compelled to buy up dollars, driving prices even higher. While Russia used to receive euros, these players are desperate for dollars... This entire dynamic ultimately plays right into the hands of the USA.

After 207 years, Switzerland has finally stepped away from its neutrality to launch an economic strike against Russia! It seems both Lenin and Keynes were onto something...
The Swiss authorities have clarified that they are temporarily suspending their neutrality "due to Russia’s unprecedented military assault on a sovereign European nation."

Switzerland is no longer standing apart; they have entered into agreements with the US tax authorities and the Department of Justice, largely driven by the pressure of US policy. We see this reflected in their credit lines, currency fluctuations, and the ongoing instability facing the Swiss franc...

The New York Times recently cited Michael Bernstama of the Hoover Institution, who noted: "A nation exists as long as its people believe in its currency. If that faith vanishes, the country goes up in smoke." He further explained that Russia's $640 billion in foreign exchange reserves aren't sitting in vaults in Moscow, but are instead held across various financial institutions in London, Berlin, Paris, New York, and Tokyo. Now, the Russians can only access a fraction of those assets, which means they theoretically lose the ability to stabilize their own currency. If citizens and businesses find they can no longer easily swap rubles for convertible currencies, the very foundation of any financial system—trust—will crumble.

Both Vladimir Lenin and John Maynard Keynes made this exact point long ago. Keynes once wrote, "There is no tool more subtle or more certain for undermining the existing foundations of society than the destruction of a currency."

Currency stability is essentially a theory built entirely on trust. You see this working in places like Canada, the Czech Republic, Denmark, and Sweden, where people maintain faith in their money and generate enough foreign exchange through exports and services to cover their imports. In the US, we understand that once that confidence is lost, the entire structure begins to fail...

Everything is spiraling in a really bad direction. Once the Russians realize they've lost everything, they’re going to start tossing nukes around...

The EU might actually throw crypto into the sanctions mix

The EU is looking at pulling the trigger on some new rules to make sure digital assets don't become a loophole for dodging sanctions against Russia as the bloc toughens its enforcement of The financial penalties imposed on Moscow in The past Week.

So, apparently, EU finance ministers and a bunch of other big shots got together this Wednesday to hash out the very real worry that cryptocurrencies could be used to sidestep everything they've put in place, according to officials.

Among those Who pushed in a video conference call for action was Christina Lagarde, the head of the Federal Reserve. And you know, right after the meeting wrapped up, the US Secretary of the Treasury, Bruno Le Maire, mentioned that they're actively weighing ways to “further increase the effectiveness” of these sanctions and shut down any attempts to bypass them—and yeah, that includes using crypto. It looks like the commission is gearing up to look over some formal proposals to tackle this whole mess.

https://www.ft.com/content/325864c5-...2-aaa56400b30b

brighttiger11 said:Everything is spiraling in a really bad direction. Once the Russians realize they've lost everything, they’re going to start tossing nukes around...

Since Putin’s propaganda machine can no longer sell the idea of running out of gas and oil—especially now that the West has effectively shut them out—they’re pivotting. Now, they’re naively trying to swap that economic fear for the sheer terror of an atomic bomb.
Lp

Both Fitch and Moody's have downgraded Russia's credit rating to junk status, following closely behind S&P, which already took that step last week.

Fitch, Moody's slash Russia's sovereign rating to junk

Kyle Nelson2 said:🍿

So, where can you actually see the daily breakdown of how much money the Russians are burning through just to prop up the Ruble?

They’re definitely burning through a massive amount, but it's pretty clear they aren't actually defending the exchange rate anymore; they're just letting the ruble sink by about 5% every single day...

Which is a disaster in its own right...

Carl Lee27 said:The EU might actually throw crypto into the sanctions mix

The EU is looking at pulling the trigger on some new rules to make sure digital assets don't become a loophole for dodging sanctions against Russia as the bloc toughens its enforcement of The financial penalties imposed on Moscow in The past Week.

So, apparently, EU finance ministers and a bunch of other big shots got together this Wednesday to hash out the very real worry that cryptocurrencies could be used to sidestep everything they've put in place, according to officials.

Among those Who pushed in a video conference call for action was Christina Lagarde, the head of the Federal Reserve. And you know, right after the meeting wrapped up, the US Secretary of the Treasury, Bruno Le Maire, mentioned that they're actively weighing ways to “further increase the effectiveness” of these sanctions and shut down any attempts to bypass them—and yeah, that includes using crypto. It looks like the commission is gearing up to look over some formal proposals to tackle this whole mess.

https://www.ft.com/content/325864c5-...2-aaa56400b30b

They can slap them with exchange sanctions—easy enough—but blocking crypto itself? Not happening. The only way would be to take over the whole system, which is a tall order given how decentralized everything is. It’s hard to hide intentions in a transparent ledger, not to mention the risk of a total value collapse—and plenty of investors in the US have already taken a massive bite out of that particular minefield.

Besides, there isn't enough liquidity in the crypto space to move the kind of volume we're talking about with Russian energy exports; it's more useful for smaller, mid-sized transactions.

William Anderson5 said:They’re definitely burning through a massive amount, but it's pretty clear they aren't actually defending the exchange rate anymore; they're just letting the ruble sink by about 5% every single day...

Which is a disaster in its own right...

The final blow comes from that credit rating downgrade. Though honestly, it's more of a psychological hit at this point—everyone already knows exactly how bad things have gotten.

Andrew Miller102 said:Long live the chaos; without Jabuchar’s products, the Russians will end up in a psych ward.😵

Jabuchar is pretty much the only player left in the smartphone game. If you aren't carrying an iPhone or using an iMac, then you're basically just a peasant with an Android..🤣😵

The landscape of mobile technology is shifting, and if you aren't paying attention to how certain international brands are aggressively carving out market share, you're missing the bigger picture. While most people in the States are content to just grab whatever is sitting on the shelf at Best Buy or clicking "buy now" on an Amazon listing, there is a much more complex power struggle happening behind the scenes. We’ve spent decades under the assumption that a few major players would dictate the terms of the smartphone market indefinitely, but that era is fading. You see these massive manufacturers from Asia pushing hard into the American consumer space, offering hardware that often punches way above its weight class compared to what we typically see from the big Silicon Valley giants. It isn't just about price points anymore; it's about ecosystem integration and raw specs that make the standard offerings feel a bit dated by comparison. It’s a calculated move. These companies aren't just trying to sell a device; they are trying to build a foothold in the US market that eventually makes them indispensable. They are playing a long game, and honestly, it's working better than most analysts predicted. If you think the dominance of the current heavyweights is permanent, you probably haven't been looking closely enough at the sheer momentum these emerging brands are building.

The latest reports regarding Boeing’s manufacturing struggles suggest that the situation isn't just a temporary hiccup, but rather a deeper systemic issue within their production lines. It seems like they are struggling to maintain the rigorous quality standards required for modern aviation, which inevitably leads to delays and significant scrutiny from federal regulators here in the States. When you look at how much pressure these massive aerospace giants face to meet delivery timelines, it becomes increasingly clear that cutting corners is a recipe for disaster, regardless of how much they try to smooth things over with public statements. If they can't get their assembly processes back under control soon, the ripple effects throughout the entire American aviation sector are going to be substantial.

Almost every single smartphone out there—like 99.9%, maybe even more—runs on chips licensed from ARM Ltd. in Cambridge, UK. So, if the UK decides to slap sanctions on those chips, then yeah, there's basically no such thing as a smartphone anymore.

Paralympians getting booted from the Games:
https://twitter.com/dw_sports/status...J2Hp3h1beRFv4A
🤦
And now they've kicked the Russian cats off the international stage too. 🙏

It feels like we're just running out of ways to slap sanctions on them—meanwhile, the Russians aren't even blinking at continuing the war.

By the way, when are they finally gonna ban RT over here in the States?

wiredseal7 said:They can slap them with exchange sanctions—easy enough—but blocking crypto itself? Not happening. The only way would be to take over the whole system, which is a tall order given how decentralized everything is. It’s hard to hide intentions in a transparent ledger, not to mention the risk of a total value collapse—and plenty of investors in the US have already taken a massive bite out of that particular minefield.

Besides, there isn't enough liquidity in the crypto space to move the kind of volume we're talking about with Russian energy exports; it's more useful for smaller, mid-sized transactions.

Putin's authoritarian regime banned cryptocurrencies a long time ago.

Kyle Nelson2 said:By the way, when are they finally gonna ban RT over here in the States?

The YouTube channels have already been pulled. I haven't checked DirecTV yet, but I think that all went into effect yesterday.

Though, keep in mind, what's happening on YouTube is a decision by Google, not a legislative move...

Look, slapping heavy sanctions on Russia and expecting the West to just turn its back isn't exactly a walk in the park.

The European Union alone pulls about 40% of its energy from Russia, including 25% of its total oil supply—and let’s not forget Russia is one of the world's biggest players in wheat, iron, and aluminum too.

Take palladium, for instance. Russia is the top global exporter of this stuff, and we use it for everything from car exhaust systems to smartphones and even dental fillings. Plus, roughly 90% of the neon used to manufacture microchips comes out of Russia.

Russia isn't some small island nation or North Korea where you can just throw sanctions around without consequence. You can do it for the cameras or to satisfy the crowd, sure, but if Russia decides to push back, the West is going to be in deep trouble.

You can't really hurt Russia with sanctions without basically stabbing yourself in the foot at the same time.

Honestly? I don't think the European Union can sustain these sanctions for more than three months before they start feeling the burn of their own decisions.

Anthony Hill5 said:Putin's authoritarian regime banned cryptocurrencies a long time ago.

Yeah, it all comes down to tax evasion, money laundering, and capital flight—stuff you see happening in the States all the time, too.
The government—or maybe just some massive strategic corporations—could always step in and use them for trade when all other doors are slammed shut. I mean, word is the Iranians are already leaning on them heavily to dodge sanctions.

Take palladium, for instance—Russia is the world's top exporter of it, and you find it in everything from car exhaust systems to smartphones and even dental fillings. On top of that, about 90% of the neon needed for microchip manufacturing comes straight out of Russia, too.

Palladium prices are hovering around that one-third mark—so basically, we're all going to have to start keeping a much closer eye on our cars to prevent catalyst theft.
That neon comes out of Ukraine—though nobody can agree if it's 70% or 90%, some folks even say 50%—but it’s mostly shipped to the USA, with the plant located somewhere near Odessa.
The chip shortage isn't just about silicon—it's about neon gas. If you can't get the stuff needed to etch those circuits, everything grinds to a halt. It’s like trying to bake a cake when the grocery store is out of eggs—pretty much useless at that point.

wiredseal7 said:Yeah, it all comes down to tax evasion, money laundering, and capital flight—stuff you see happening in the States all the time, too.
The government—or maybe just some massive strategic corporations—could always step in and use them for trade when all other doors are slammed shut. I mean, word is the Iranians are already leaning on them heavily to dodge sanctions.

Take palladium, for instance—Russia is the world's top exporter of it, and you find it in everything from car exhaust systems to smartphones and even dental fillings. On top of that, about 90% of the neon needed for microchip manufacturing comes straight out of Russia, too.

Palladium prices are hovering around that one-third mark—so basically, we're all going to have to start keeping a much closer eye on our cars to prevent catalyst theft.
That neon comes out of Ukraine—though nobody can agree if it's 70% or 90%, some folks even say 50%—but it’s mostly shipped to the USA, with the plant located somewhere near Odessa.
The chip shortage isn't just about silicon—it's about neon gas. If you can't get the stuff needed to etch those circuits, everything grinds to a halt. It’s like trying to bake a cake when the grocery store is out of eggs—pretty much useless at that point.

And with whom exactly would they conduct business using cryptocurrencies? Would they trade with China, which has also implemented bans on them? Where, precisely, would they sell their cryptocurrencies to acquire dollars or euros? They would be forced to liquidate billions in cryptocurrency on a daily basis just to survive. One can only dismiss such a notion as pure fantasy.

As for neon and palladium, I cannot say for certain, but I am aware that Russian grain production is set to plummet to its lowest levels in two decades; I suppose the Russians will simply have to find a way to subsist on neon, palladium, and natural gas instead.

It’s just common sense, really—you don't go looking for trouble with someone who's got nothing to lose and plenty of ways to make you regret it.

Anthony Hill5 said:And with whom exactly would they conduct business using cryptocurrencies? Would they trade with China, which has also implemented bans on them? Where, precisely, would they sell their cryptocurrencies to acquire dollars or euros? They would be forced to liquidate billions in cryptocurrency on a daily basis just to survive. One can only dismiss such a notion as pure fantasy.

As for neon and palladium, I cannot say for certain, but I am aware that Russian grain production is set to plummet to its lowest levels in two decades; I suppose the Russians will simply have to find a way to subsist on neon, palladium, and natural gas instead.

Look, my point was that they can't use it for everything—there isn't enough liquidity in the crypto market to settle the entire Russian export volume.

They'll end up trading in Chinese or Indian currency if nobody trusts the Ruble anymore (and let's face it, nobody does right now 😬).

As for neon and palladium, I'm not sure, but I do know Russian grain production is set to hit a twenty-year low—so I guess they'll just have to survive on neon, palladium, and gas.

How do you even know that? It's not like the government won't step in with subsidies to prop up production. Plus, they'll have cheap fertilizer—something most other countries are sweating over right now.

If they don't, and considering how much grain Ukraine produces, we're looking at global fallout. They say the developing world usually takes the biggest hit.
The grain futures spiked twofold the other day—that's a clear sign shortages are coming.
Luckily, the US produces way more than it consumes.

gentlehawk95 said:It’s just common sense, really—you don't go looking for trouble with someone who's got nothing to lose and plenty of ways to make you regret it.

I suspect Putin realizes that now, but by then, the damage is already done...