A funny pic I found on the Internet.



1. FRS prints unsecured dollars, Central Bank of Russia prints unsecured roubles, oil company X extracts real oil from earth depths of Russia.

Balanse 1: USA has dollars, Central bank has roubles, X oil company has oil

2. The oil company X sells the oil to USA and receives dollars.

Balanse 2: USA has oil, Central bank has roubles, X oil company has dollars

3. You can't spend dollars in Russia so X oil company sells them to the Central Bank and gets unsecured roubles in return.

Balanse 3: USA has oil, Central bank has dollars, X oil company has roubles

4. Central bank of Russia deposits its dollars in one of US banks and calls it foreign gold-currency reserve.

Balanse 4: USA has oil and dollars, Central bank has nothing, X oil company has unsecured roubles.

Perhaps it is better simply to print roubles and distribute them freely instead?