this post was submitted on 30 Nov 2024
630 points (95.8% liked)
Memes
45894 readers
1008 users here now
Rules:
- Be civil and nice.
- Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Why do people think Russians care about the exchange rate with western currencies when Russia doesn't actually do any trade using them, and people don't hold them domestically?
Also, anybody with even a minimal clue regarding how economics works would understand that a weak currency is good for a commodity exporter since it converts to higher revenue in domestic currency.
Exchange rates don't mean much, if they did, the UK economy wouldn't be in the shitter and China's wouldn't be the big bad monster it's become in US media recently.
GDP adjusted for Purchasing Power Parity is what matters, and Russia is the 4th economy in the world under those metrics. It overtook Japan some months ago.
Maybe analyse why your corporate media wants you to simultaneously believe Russia has spent three years on the verge of collapse yet you need to send another hundred billion in weapons and fire them all right fucking now, Armageddon be damned.
The exchange rates matter for the specific case of global trade. If a country is primarily an importer then they want their currency to be strong, and if it's an exporter than having a weaker currency is better. PPP applies more in terms of the internal economy of the country.
If a country is largely self sufficient then its internal economy isn't going to be affected much by the value of the currency on the global market. This is precisely why Russian internal economy isn't severely affected by the value of the currency on the markets.
I agree, I was trying to add to your point. The "you" in my comment is addressed to Westerners who seem to uncritically internalize whatever their reddit feeds tell them.
Sadly, uncritically parroting nonsense seems to be the dominant form of discourse. This stuff isn't hard to understand if you spend even a few minutes to actually think through it, yet here we are.