A year ago, one Ruble would buy almost .09 Yuan from China. Today, the same Ruble would buy only .06 Yuan....meaning almost one-third of the value has evaporated.
Say you wanted to buy a baggy of six pairs of Chinese underwear under the old deal (a year ago), it probably would have ran around 600 Rubles ($4.80 in dollars). That same Chinese underwear package today (six in a baggy) would likely run 780 Rubles (meaning $6.30).
While the Chinese government is leaning toward their 'friend' in Russian....the business/commerce folks are sitting there and asking for something else to be paid in (besides the Ruble).
Yes, there are two entirely different messages being 'branded', and they are 180-degrees apart.
Medications, clothing, tennis shoes, tires, brake pads, toasters, freezers, washing machines, coffee machines.....probably in the past month have jumped 20 to 30 percent in cost. There's no path ahead except for Feb prices to escalate twenty-five percent over January's prices.
Then you have this added burden....what happens in March/April? Another twenty-five increase in product prices for things made in China? At some point (I would say by mid-March)....the typical average Russian (not the elite guy) will just shut down entirely on things to be bought, with the exception of food itself.
China's government waking up to a economic crisis.....a warehouse of a twenty-thousand toasters/coffee machines just sitting there and zero interest in Russia for the stuff to be shipped in? Then you multiply this by a thousand?
The Chinese business community turning to the government and asking....what now? We can't market to a nation with this 'doomed' sense of reality.
There's some 'drought' coming to China by mid-2022, and their economy which was being geared to a favorite trade partner (Russia) being a spiral of unnecessary goods just sitting there, without a trade possible.
Whatever mess you see now? Well....it's going to get a lot worse.
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