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Time Machine: So cursed is the ruble, so is President Putin repeating history – Vladimir Putin Repeating History Joined Group Of Russian Rulers Who Ruined Country Currency Ruble

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Most of Russia’s foreign exchange reserves have been confiscated. Now there is nothing to support the ruble, only the printing press is left. If notes are printed, then the great condition of inflation will begin, which is called hyperinflation. Russia is moving towards this economic disaster.

For the first time in February of last year i.e. 2022, the flames of Russia-Ukraine war surrounded the ruble. After this the Russian currency started declining.

But wait, Russian President Vladimir Putin is repeating history. He has joined the group of Russian rulers who ruined the country’s currency. The biggest stain on Russia’s superpower image is the fact that the ruble is considered the most cursed and risky currency in the world. The history of the ruble can also be taught as the history of currency crises.

Come on, O Time Machine, take your seats. fasten seat belt.

Our next stop will be 16th century Russia, where you will find counterfeit coins, which gave rise to the ruble. This is from the 1530s. Princess Elena Glinskaya of Lithuania was ruling Russia. Ivan the Terrible, the first Tsar or Emperor of Russia, was the son of this Queen Elena Glinskaya. Then the word terrible was used not for fear, but for strength.

Russia faced its first monetary crisis during the reign of Queen Elena. There was no official currency till then, so suddenly the market was flooded with fake coins. The queen started the silver ruble. It was the earliest ancestor of today’s ruble. It was Russia’s first hard currency. In the year 1662, a new currency crisis occurred in Russia. At that time Tsar Alexei Mikhailovich was ruling. There was a war going on between Russia and Poland. Tsar Alexei needed resources for the army, so the Tsar struck copper coins, which were exchanged for silver rubles.

That was the first major devaluation of Russia’s currency. People became angry after seeing copper coins instead of silver. Riots broke out in Russia. It is known as Copper Riots. The Czar crushed the rebels, but the copper coins were also stopped. After that, it took 40 years for the ruble to become stable as a currency.

Sitting in a time machine and traveling to the 18th century, you will be forced to ask whether Russia’s rulers were fond of creating monetary crises. Queen Catherine II introduced paper notes in the mid-18th century. This note was silver standard. The Russian people did not understand paper notes, but paper currency continued to be issued. So many notes were printed that the standard of silver collapsed. That is, more notes were circulated than the amount of silver that was in reserve. This was also devaluation of the ruble. Queen Catherine departed from the world, leaving behind a major monetary crisis.

The Finance Minister of Czar Nicholas II was Sergei Witte. He changed Queen Catherine’s decision in 1895. Paper notes were discontinued and then the gold ruble. A few years later the value of the ruble strengthened. But where were the rulers of Russia going to agree? So the ruble’s good fortunes proved to be ageless.

During the First World War, the economic crisis in Russia began to deepen. In the year 1917, there was a revolution in Russia, the Czarist regime ended, then the Bolsheviks took a crazy decision to break the backbone of the bourgeois economy. The new government deliberately printed so many paper rubles that the Russian currency devalued 50 million (five crore) times in five years.

Don’t be surprised…

Five crore times devaluation! This was Russia’s infamous hyperinflation. Within a short time the Bolsheviks realized how big a disaster they had called. The crisis increased so much that the government issued a new currency based on the gold standard. Although Joseph Stalin was powerful, he probably did not study properly in the school of monetary management. His period was full of adversity for the ruble. A lot of notes were printed. Inflation increased. The ruble kept falling. The purchasing power of Russians kept falling. Amidst this bad situation the cannons of the Second World War roared. Hitler invaded Russia. During the period of crisis, Stalin imposed many types of monetary restrictions. The ruble broke again and hit the ground.

In the year 1947, when the sun of independence was rising in India, the infamous monetary reform of the Communist Party in Russia turned into a major crisis. Historians write, there was a lot of profiteering in Russia during the Second World War. Angered by this, the government decided to reduce cash from the market, so that the profiteers would suffer losses. But before that decision was implemented, people got wind of it. The Russian people were so fed up with the currency crisis that they rushed to the banks. There was a race to collect the goods by withdrawing roubles.

That crisis took a heavy toll on the ruble’s credibility. Stalin’s successor Nikita Khrushchev also failed. Another major devaluation of the ruble occurred in 1961.

Even the reformist Gorbachev could not remove the curse of Russia’s currency. There were some further devaluations of the ruble until the Gorbachev era in 1991. In the year 1990, the prices of short-term essential goods increased sharply. If you traveled in a time machine to 1991, you would meet people lining up in front of Russian banks. Gorbachev banned 50 and 100 ruble notes. People got only three days to exchange the notes.

remember something … !

Indian demonetization of 2016!

Another major devaluation of the ruble occurred after Gorbachev’s so-called reforms.

Boris Yeltsin brought market reforms, corruption and terrible inflation. In the year 1998, Russia plunged into a deep economic crisis. Many banks collapsed and so did the poor ruble. In later years, Russia focused its economy on crude oil. Whenever the price of oil fell, the ruble lost its currency. The ruble was deeply wounded by the global banking crisis in 2008.

In 2014, Putin attacked Crimea. Sanctions were imposed on Russia and from here the decisive fall of the ruble began. People in the currency market say that Putin’s ruble has now turned into ruble, i.e. equivalent to one anna or paisa in the Indian language of currency.

This collapse of the ruble is painful. The history of Russia teaches us that even if the rulers knew how to make weapons, there might have been revolutions, but inflation and weak currency destroyed the future of many generations of that country. Russia may have been a superpower, but its economic management is the most terrifying and living lesson for the world.

This post originally appeared on www.amarujala.com

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