the dollar go in other investment.to bring more money back
a question what other countries do when they use foreign currencies to back their money ?
by the way you must consider one small fact . printing money is not inherently bad , it become bad when you print money but you cant spend it
in 2007 - 2008 we had 50 billion dollar in reserve ,our economy was more than 500 Billion , how we survived ?
very simple all economy is not foreign trade , you must ask yourself how much of that 1.4trilion Dollar is generated inside Russia and how much that part which is generated inside Russia will be affected by sanctions .
we were not allowed swift , we were not allowed trade in valuable metal , our oil industry were sanctioned , we were not allowed to trade in Dollar .
every company wanted to trade with us would have been sanctioned if it get known . i wonder if you mean another iran . we were not even allowed to loan money for fighting Corona virus while according to all laws we were entitled to the loan because we didn't ever used our right to borrow money .
we learned to live with sanction , we used transaction systems which were used since thousand of years ago , we also used barter system , ......
when sanction put on Iran , iran currency lost 90% of its value . so nothing new there . the only difference is we don have that much of foreign debt .
Iranian rial lost 90 % of its value in 2004-2005 and again 30-40% in 2018-2019 . but the economy is not only foreign trade for all countries ,for some yes but for countries like Iran foreign trade is not even 10% of our economy , the rest is based on what we do inside our country ,and that made some country more resilient to sanction , and I believe Russia also have a big bunch of economy based on their country not foreign trade , that's why they survived the fall of USSR and the years after it and that's why I believe they survive this time
they stop trading it in form of not using it to pay for oil .
First of all, Biden lifted some payment system
Democrat President Joe Biden restored a sanctions waiver to the Islamic Republic of Iran, the world’s leading state sponsor of terrorism, on Friday, as the administration desperately tries to get Iran to re-enter a nuclear deal. “The waiver, which was rescinded by the Trump administration in May...
www.dailywire.com
And according to SWIFT, SWIFT Sanction was lifted by SWIFT in 2016 after JCOPAS agreement
17 January 2016
www.swift.com
And finally, US granted waiver to countries to trade oil with Iran.
So, no, I am talking about the same Iran, you probably not aware of the current sanctioning condition in Iran.
And You can keep arguing about China can pay for Russian Oil, it's a chicken and an egg question. The problem you don't have that initial chicken or egg to start to paradox. You need extra money to buy "EXTRA" Russian oil that you haven't brought before. You are talking about increasing the purchase, not keeping the same level of engagement. If I want to buy something new from a vendor I always brought from, you will still need to come up with that money, and you cannot print it, which mean that has to come from somewhere. Either you get it from terminating Trade with other (thus redirect those fund to Russia) or you get extra funding by selling the asset you already own.
Once you have that seed money, then you can talk about How it can be reinjecting into China and keep using this over and over (Which in itself is another question because you simply cannot do that, because once you clear the oil and gas payment, and the Russian pay you back with electronics or what have you, those money are not going to go back to Central Bank, instead it will be going back to the people who make those Electronic or what have you for them to make more, which mean come next year, the same question appear, you will then be needing to find a way to get that money to buy Russian Oil, but that is a discussion for later)
Problem for you is you are thinking of the initial money coming out of nowhere, True if Russia has always been supplying Chinese Oil and Gas in a way that could cover all that payment, but in reality, China buy 1/8 of what EU brought from Russian, which mean you will need to find a way to take over the other 7/8 of the sale to cover the entire EU consumption. That cost money, and since China is not even going to need that much, are you sure they want to do that?
As I said with MY Yang, I mean, if you want to believe this, that is up to you, I have my doubt on the issue, and just because you keep saying there are going to be money does not mean there are going to be money involved. And at the end of the day, this is not me, not yours and not anyone decision to make, it's Chinese Government. So basically, we keep dancing around the same tune is useless, so let's just go back to you believe what you want to believe, and I believe what I want to believe. And if you think Russia is going to be okay, well, that's you, and probably not going to affect you as you don't live in Russia. I have a lot of friend living in Russia, they all tell me life is getting harder by day, but well, I don't live in Russia, and you don't live in Russia, so there really aren't any point to keep doing this.
I said my piece, I don't know if you had said yours. And I am going to leave it at this. As I said to the other dude, you can have your final word if you want. But I am not going to talk about this further because all I did and all you did, is just keep repeating ourselves, and I have no time to do that.
