Austin wrote:miketheterrible wrote:What makes you think they can't afford to lose it? Do you happen to know that US and plenty others don't have a reserve? Did you also know that it isn't 100B but 90B? As well, did you know Russia replenished huge amount of its forex in very short time? Did you know that is smaller than Russia's trade surplus?
Thanks , That tells me every thing I need to know , EOD
It's true that the USA and Canada have no reserves. Russia does not need them. At best these reserves are a tool to play the
NATO dominated financial market game. But this mattered more for Russia in 2004 than it does today. In addition, the fraction of
the global GDP held by NATO has been systematically shrinking relative to the global GDP. Russia's GDP has increased substantially
since 2004. So there is no "can't afford" nonsense here.
BTW, the reserves were supposed to be a way to prevent the ruble devaluing too much in forex exchange. But clearly the reserves
did not prevent the massive drop in late 2014. So what is the value of these reserves? To have money to pay back foreign loans
on behalf of private companies? WTF is the need for that? Russia's government debt is much smaller than its reserves and it is not
backed by the reserves but by Russia's resources and GDP in general.