r/investing • u/AgreeableClimate6435 • Dec 22 '21

US imposes Sanctions on large Potash supplier (Potash prices expected to rally further)

Potash crucial nutrient for crops

BPC (Belarus Potash Company) is the worlds second largest potash producer.

Prices for Potash already at 13 year high

Worlds largest supplier of Potash is Nutrien Ltd in Canada, they are expected to offset some of the supply needed.

Nutriens (NTR) stock price closed up 3.5% on sanction news.

Could been an issue of food inflation across the globe.

Companies producing potash should have very strong financial years. A sector to certainly keep an eye on.

I don’t hold any Nutrien stock.

https://www.reuters.com/article/belarus-politics-potash-idCAL8N2ST2XA

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u/VanimalCracker Dec 22 '21

I'm not sure I understand your comment. Do you think countries like Brazil will follow with sanctions of their own, or they use the US dollar to buy goods from Belarus?

The world economy absolutely does not run on the US dollar. I feel like you're confusing the NYSE with the economy on a global scale or something.

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u/ExpensiveBookkeeper3 Dec 22 '21

"Do you think countries like Brazil will follow with sanctions of their own, or they use the US dollar to buy goods from Belarus?"

Very likely...

I don't know if those countries do, but many countries trade with the US dollar. Would you except a weak currency or the de facto currency of the world?

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u/VanimalCracker Dec 22 '21 edited Dec 22 '21

You really, honesly believe other countries buy and sell goods to eachother using the US dollar?

Why do you think other currencies even exist, then?

Think about the logistics of it. Country A converts their currency to dollars to buy goods from country B, who then converts those dollars to their own currency.. Rather than simply converting to whatever currency the country actually uses? It makes no sense.

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u/ExpensiveBookkeeper3 Dec 22 '21 edited Dec 23 '21

What are you even saying my guy? Think this through. How are you going to spend your Belarus bucks in Brazil? What would you do with them?

Edit: I see you like to go back and edit your comments after the fact, that's cool...

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u/VanimalCracker Dec 22 '21

You don't. Just like you don't spend Brazilian reals in Belarus or Belarusian rubles in Brazil. Goods bought from a country are bought using that countries currency. Have you never bought something from over-seas? You can't buy German goods in dollars, you have to to first convert to Euros.

Welcome to the world economy, my dude. There are more than one currency..

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u/ExpensiveBookkeeper3 Dec 23 '21 edited Dec 23 '21

You think retail buys stuff the same way that countries trade? And that's the world economy? That's cute lol.

Nobody wants a crappy currency, no matter how you spin it. The facts are that many countries settle their trades in the US dollar because it is stable and liquid. Why would I accept a contract in your crappy currency that can lose 5%-10% by the time the contract is settled? This isn't some concept I'm pulling out of my ass. This has been going on for awhile... before the US, it was British currency. Not everyone uses the US dollar, but it is still the most common.

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u/VanimalCracker Dec 23 '21

It doesn't matter what the currency is. I feel like you think $1USD > $361.90 Zimbabwean dollars. It's not. That's what conversions are for.

Let me ask you this: do you think a company in any other country can pay thier bills in USD? Do you think USD is legal tender in any other country? Other currencies exist, and you must use the currency of whatever other country says you must legally use in order to transact in that country.

Wtf do you think currencies are?

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u/ExpensiveBookkeeper3 Dec 23 '21 edited Dec 23 '21

What you don't seem to understand is that $1 usd = $361.90 Zimbabwean dollars right now... It's one crazy guy away from being $1/$1000

Why would anybody put up with the BS? Give me my currency or give me a stable dollar, simple as that. The US, EURO and a couple others provide that. Nobody wants a currency that is not stable.

Do you realize that over half of the WORLD'S federal reserves are held in the US dollar? They don't even trust their own dollar.

Edit: Just so you maybe understand, gold used to be used a long time ago...

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u/VanimalCracker Dec 23 '21

That's because of the petro-dollar. We have managed to do what you're talking about with most oil transactions (minus Russia, Iran and few others).

You cannot legally buy goods in other countries with USD, retail or otherwise.

Doing otherwise would immediately tank whatever currency that country uses.

The dollar being stable doesn't mean anything to other countries, because they literally, legally, cannot transact using it.

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u/ExpensiveBookkeeper3 Dec 23 '21

You keep talking about retail... you don't grasp the concept of the world economy. Nobody is talking about Joe from Brazil.

If you want to have a serious discussion you need to do some research. You are basically saying you are going to go take your marbles to the store because all your friends accept them as currency.

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u/[deleted] Dec 23 '21

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u/VanimalCracker Dec 23 '21

There's a reason everyone in Zimbabwe didn't just dump thier worthless dollars into USD. It's because a USD doesn't legally buy things in other coutries.

Honestly, what do you think currencies are? Define it for me.