Nathan Thomas12 said:Look, I don't care if you're a welder, a janitor, or whatever—it's not my business. But I've got an economics degree and experience in banking, so when you claim I know nothing, at least have the decency to hit me with a real counter-argument.
Here’s the reality: Russia's GDP dropped 4% monthly when measured in USD. Let's say pre-war it was $10,000 per capita, and now it's sitting at $9,600.
Furthermore, if $1 USD used to be 80 rubles, that puts the GDP at 800,000 rubles. Now, with $1 USD equaling only 60 rubles, that $9,600 translates to just 576,000 rubles.
So, the gap between 800,000 and 576,000 is a 30% drop. Russia's GDP fell by 30% when measured in rubles—and that's even before considering how much more expensive everything has become there.
Call me names all you want, but any sane person will take my side until you can actually dismantle my numbers. Honestly, if someone proves me wrong with actual facts, I'll be the first to admit I messed up.
What actually fluctuates is real GDP, not nominal figures, and it shouldn't be calculated using some arbitrary currency you've picked out to make a point... In truth, GDP isn't really about currency at all; it represents the actual volume of goods produced and services rendered, and to compare that over time, we use constant prices.
The thing that fell for the Russians was 4%, and that is the only metric that truly rises or falls—real GDP, specifically products and services.
If they had 1,000 products and services last year, and there is a 4% drop this year, they now have 960, regardless of whatever their nominal value might be...
Let's take a hypothetical scenario from last year to illustrate this:
100 products = 100 rubles = 10 dollars
This year, applying that 4% drop, the only thing we can actually map that decrease onto is the component representing products. That percentage doesn't apply to currencies. However, if you factor in inflation/deflation (the base rate) and depreciation/appreciation (all other currencies), then you can derive the other nominal data points.
In Russia's case, if we account for 15% inflation and a 20% appreciation of the ruble, those top figures would look roughly like this:
96 products = 110 rubles = 13 dollars
Any attempt to manipulate those numbers, other than acknowledging that products and services fell by 4%, is simply incorrect... It is wrong to claim there was a 10% increase in rubles, and it is equally wrong to claim a 30% increase in dollars. Currencies are irrelevant to the core fact.
They fell by 4%. In terms of products and services.
And all these little gymnastics you're doing with exchange rates... well, it's really just economic voodoo...
It is the exact same situation in the US where we just received data showing 7.7% growth.
In terms of local currency adjusted for inflation, it was actually 15%, and in dollars, it was "only" 5% due to depreciation. Using anything other than that 7.7% figure is a mistake because the currency fluctuations are secondary.
P.S. I sincerely hope life never sends me to you for any banking or financial services...