On March 23rd it was announced that buyers from “unfriendly countries” would provide rubles in return for Russian gas, instead of the traditional U.S. dollar. Eventually the announcement was extended to oil and other commodities. Will the stringency of such a decree hold? The bet here is that it won’t. Credible money is what matters to producers of goods and services, period. At the same time, Russia’s move to a gold-defined ruble in concert with its decree was logical, and by extension, predictable.
Read Full Article »
