Is a Liquidity crisis on horizon?

[Taiga]

Looks like reality will eventually hit the clueless virtue signalers.

I mean when a country controls 40% of the food, 10% of the O&G, 25% of the fertilizer, 50% of the uranium not to mention Nickle, neon, palladium, you STFU and go talk to them.

And if you dont want to talk to them, then develop your own.

I don’t know if reality will hit these Liberals, they seem intent on ramming full steam ahead.
Enviro policy being released today.
Minister says it is in fact her job to censor the media.
Carbon tax which affects rural Canada disproportionately increasingly rapidly.
Etc etc

[AlbertaFarmer5]

Looks like reality will eventually hit the clueless virtue signalers.

I mean when a country controls 40% of the food, 10% of the O&G, 25% of the fertilizer, 50% of the uranium not to mention Nickle, neon, palladium, you STFU and go talk to them.

And if you dont want to talk to them, then develop your own.

That sounds familiar.
So if you live in a city which produces nothing. And truckers are responsible for bringing in 100% of the necessities of life which makes life in a city even possible. And furthermore, they pay the taxes which pay your salaries. They literally hold your life in their hands. Perhaps talking to them wouldn't be a bad idea .

[jazz]

I will ask this question, what is the US biggest export?

Is it oil? Soybean or corn?

No the US largest export is the US dollar. They use that reserve currency to flood the world with USD denominated debt and force transaction in that currency.

And yes there are benefits to a reserve currency and smooth flow of trade, but that status can be weaponized as well.

Thats the whole reason the US doesnt want to make anything at home anymore, because they would rather get it from another country and export the USD.

Now that has a down side too, because it depends on low rates. Now that Putin has made some dents, the US will be forced to raise rates to defend the USD. And that in turn will export inflation around the world and the goods coming back to the US with it.

And other central banks are in on it too. US fed sends USD to Japan, Canada, EU which is then payable pack in USD and those banks convert it to their currency and feed it into their economies. Nobody in Canada including our own central bank could buy $1T in Canada govt bonds. The US fed reserve owns those.

Globalization is not your fathers economics 101.

[cuban_assassin]

I’m not sure central banks can kick the can any further without it back firing. There are a number of things happening simultaneously now that have the potential to cause a collapse of the monetary system. From what I can tell Russia and china are likely to abandon the US dollar which would mean the death of it as the global reserve currency. This will have huge consequences for the states and Canada, none of which will be good.
I just want to throw out a theory for consideration here and I’m no expert by any means lol.
Did the world really think Putin was so stupid as to not assume that he would be faced with economic consequences? One would assume he knew this would happen, and I wonder if he was counting on it, and knew that in the end the west will suffer more than Russia will. This invasion of Ukraine is a big FU to the west, and he most likely had contingency plans in place with nations like China cause he anticipated the economic sanctions from the west, once he moved into Ukraine. It is reasonable to assume that by Putin creating these economic alliances ahead of time he will insure Russia’s economic sustainability. Is it possible that in the end he will gain the biggest win of this conflict and that is the collapse of the USD as the reserve world currency and a huge blow to the west? Putin is playing a global chess game and one would think he had this all planned out.

[cuban_assassin]

Is it also possible that the USA is now seeing what is about to happen to them which is why Biden is spouting war and regime change rhetoric with Russia now? Does the Us now realize they have been out smarted and stand to loose everything unless they remove Putin from power? I find it interesting that the west has talked about Putin escalating this conflict beyond Ukraine if he gets back into a corner by the west BUT……..
Is that role now been reversed and it is the US that has now been backed into a corner and have no choice but to go after Putin or face certain economic collapse?

[agstar77]

I’m not sure central banks can kick the can any further without it back firing. There are a number of things happening simultaneously now that have the potential to cause a collapse of the monetary system. From what I can tell Russia and china are likely to abandon the US dollar which would mean the death of it as the global reserve currency. This will have huge consequences for the states and Canada, none of which will be good.
I just want to throw out a theory for consideration here and I’m no expert by any means lol.
Did the world really think Putin was so stupid as to not assume that he would be faced with economic consequences? One would assume he knew this would happen, and I wonder if he was counting on it, and knew that in the end the west will suffer more than Russia will. This invasion of Ukraine is a big FU to the west, and he most likely had contingency plans in place with nations like China cause he anticipated the economic sanctions from the west, once he moved into Ukraine. It is reasonable to assume that by Putin creating these economic alliances ahead of time he will insure Russia’s economic sustainability. Is it possible that in the end he will gain the biggest win of this conflict and that is the collapse of the USD as the reserve world currency and a huge blow to the west? Putin is playing a global chess game and one would think he had this all planned out.

He is not that smart or powerful. Russia will be a pariah state as long as he or his henchmen control the country. Paying for the rebuilding of Ukraine will keep Russia third world for years.

[LEP]

Pretty much anywhere in the world wants the USD. No matter what Russia and China do. Russia is trying to force importers of Russian goods to pay in Rubles to try and give it some support but it isn't working.

Never bet against the USD in troubled times.

[Old Cowzilla]

He is not that smart or powerful. Russia will be a pariah state as long as he or his henchmen control the country. Paying for the rebuilding of Ukraine will keep Russia third world for years.

I wonder who really is going to rebuild the Ukraine hmmmm I think I know who.

[AlbertaFarmer5]

Regarding Putin seeing the economic consequences coming.
What I have read, indicates that he surrounded himself with a bunch of yes men. They were told to run these war scenarios, but never told that it was no longer a practice, So they kept giving the answers that Putin wanted to hear.
So he didn't see this coming, and they weren't prepared.
But the economic sanctions themselves aren't half the problem. It's the technology and the parts and the service, and the expertise. Their energy and agriculture and forestry and mining and communication and military etc is completely reliant on outside imported technology and assistance.

[cuban_assassin]

Some good insight fellas 👍
I am concerned that the usd is vulnerable and will not be seen by many in the world as a safe haven anymore.
I did read that Putin has been increasing his gold stockpile to north of 2000 tonnes since 2014.
Now I see Russia central bank has set the value of 1 gram of gold to equal 5000 rubles.
Putin now has said their gas and oil can only be paid for in rubles.
So therefore he has linked the price of Russian oil and gas to gold.
So European countries either gonna have to buy rubles or trade gold for their gas and oil.
This should increase the demand for rubles should it not?

[agstar77]

I wonder who really is going to rebuild the Ukraine hmmmm I think I know who.

The same ones who are replacing the munitions Russia is depleting.

[Guest]

Pretty much anywhere in the world wants the USD. No matter what Russia and China do. Russia is trying to force importers of Russian goods to pay in Rubles to try and give it some support but it isn't working.

Never bet against the USD in troubled times.

except in 07
we were building drilling rigs in the boom of that time in nisku
all of a sudden the suppliers in texas for mud equipment wanted CAD,