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Belarus Just Devalued Its Currency By 56%

Tyler Durden's picture





 

When it comes to currency warfare, one can be polite and gentlemanly about it, like Brazil for instance, which every day, and sometimes on several occasions during the day, will proceed to buy dollars in an attempt to keep one's own currency lower. Or one can do what the Belarus central bank just did, and officially devalue one's currency, in this case the Belarus ruble, by 56% overnight, against every currency out there.

At this point, it sucks (that is a technical term) to be holding any exposure in BYR. Luckily for those who held their "money" in the form of gold and silver, they just got an instantaneous 56% value preservation and a relative boost in their purchasing power with just one central bank announcement. Also, any and all indebted parties who have BYR-denominated debts are throwing one big party tonight, as their debt was just cut by more than half. And yes, the Greeks are jealous with envy.

From Kommersant.ru:

The National Bank of Belarus (NBB) is sharply devaluing the official rate of Belarusian ruble. The exchange rate as of May 24 was set at 4,930 rubles per dollar. a decrease of 56% from the 23 May.

The National Bank of Belarus has officially confirmed a sharp depreciation of the currency. On its website it has published the official exchange rate of Belarusian ruble: $ 1 - Br4930 (a decrease of 56,3% to the rate on 23 May), 1 Euro - Br6914, 82 (a decrease of 53,1%), 1 Russian ruble - Br173 , 95 (a decrease of 53,9%). The official rate for May 23 was set at 3,155 rubles per dollar.

Earlier, the Belarusian authorities stated that in the near future a unification of the national currency will occur in two phases. "In the first stage decisions will be made to bring down the increased demand, and upon receipt of the loan rate will be formed on the basis of supply and demand, thus lowering the expectations today are still there," - said on May 20, Prime Minister of Belarus Mikhail Myasnikovich.

Meanwhile, representatives of Belarusian banks have criticized the mechanism of devaluation. "The problem is not in the specific value of the exchange rate and in the mechanism. The question is: under whose speculative decisions did the National Bank make this choice?" - Said the agency "Interfax-West" management representative of a bank with Russian capital. In this case, the representative of a state bank believes that "this decision should be viewed as an interim measure." According to him, "the trend is obvious: the official exchange rate will move in the direction of the OTC exchange rate, rather than vice versa."

Earlier, BNB announced the termination of containment of the Belarusian ruble to the retail market: from May 12 to lift restrictions on banks to buy and sell currencies population - 2% of the official rate.

h/t mludwig

 


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Mon, 05/23/2011 - 14:24 | Link to Comment rokakoma
rokakoma's picture

Don't forget the USD cross started from 2.000!

Mon, 05/23/2011 - 15:29 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

OK, I know that I am being VERY rude here, pimping myself...  But, I am re-posting this from another thread because I am trying to decide whether or not to write a blog...


I too regret hijacking this prime real estate, but...  Please don't kick me off, Tyler, for this...

I am considering writing a blog.  This has been going around in my head now for a few days, I have had a lot of time to THINK because my wife has been out of town for over a week.If you are still interested in what I am writing here, please read on...  The below is "cut & pasted" from my one page or so outline of article ideas and other thoughts re my blog.  This IS kind of long, but you will get the general idea of what I have in mind. PLEASE, PLEASE, PLEASE let me know of any interest.  If I do not get anyone interested, I will not go forward...  Please send any comments to my name (moniker) at gmail dot com. Thank you!  And please read on...

My blog will be about a wide variety of subjects of interest to me, but that I hope would be of at least passing interest to some of you.  I intend to write on a fairly wide range of subjects, many of which are listed below.  That list is likely to grow, I hope it does.  I would like to state upfront that I am not really an expert on ANYTHING, really.   One of the purposes of my blog would be to draw into the discussions the opinions of experts.  There are many things I would hope to learn from experts as well as all of you, my friends, virtual friends, family and readers.  YES, I want have a robust Comments Section after each article, because I am NOT an expert on ANYTHING!  I want to learn as well as entertain all of you.  I want Comments on my blog!  Lots and lots of Comments, because you, my dear readers, are a vastly intelligent and knowledgeable group.

My blog will not be in any kind of competition with any other blog, because I can claim only modest expertise on almost any subject I will address.  Below are some topics that may very well be written about soon.  Many of these I know interest SOME of you!  Please be reassured that I do not expect ANYONE to be interested in them all.

Gold, precious metals and “Freegold”

The Really Lousy Economic Situation (“TRLES”)

Wine / beer / liquor

Tai Chi and related

SHTF / TEOTWAWKI (likely to be a crowd pleaser…)

“Personal stories of my life” (funny or nice anecdotes, E & C know many)

Blogging (introductory)

Poetry & Haiku (yes!)

Peru

Jokes and humor in general (yes!)

“Guest Posts” (that is, I would like to have YOU to write some of YOUR stuff!)

Ball bearings and similar

Guns & ammo & general military stuff

Religion

Evil Banksters (probably another popular one!) / Wall St. Fraud / Evil Empire

South Carolina

Texas and which County is the best!    <--- (could be real hornets’ nest…)

Florida

Tourism in Italy!

Tourism in France!

Tourism in Peru!

Tourism in general

Art, music and opera

Astronomy & geology ("Dummies" level, geology includes volcanoes and earthquakes)

Math (yes!)

Fiction (yes!  Some of you know I like to read.)  popular and classic

History (yes!)

Politics in general!

Computer stuff (at the “Dummies” level, for example topics like Facebook, etc.)

Language / Linguistics / Foreign languages

The oil business

The mining business

The banking business (oh wait, I took care of this under banksters above, let me KNOW if you made it this far, LOL)

The Middle East

Europe and Asia in general

Conspiracy theories / Tinfoil Hat stuff (extremely limited, perhaps humorous only)

Nutrition and health

Other topics can be suggested… 

 

Mon, 05/23/2011 - 15:39 | Link to Comment gmrpeabody
gmrpeabody's picture

ET TU....... DoChen?

ROTFLMAO!!!!!

Mon, 05/23/2011 - 15:40 | Link to Comment YHC-FTSE
YHC-FTSE's picture

I don't understand this at all. In the time it takes to type this all out, you could have actually started your blog. Just do it already, and then pimp it when appropriate like everyone else. Duh.

Mon, 05/23/2011 - 16:01 | Link to Comment gmrpeabody
gmrpeabody's picture

I think he is joking...

I didn't even need the normal <sarc> reminder.

Either that.., or I'm a complete idiot (which is always in play).

Mon, 05/23/2011 - 16:09 | Link to Comment YHC-FTSE
YHC-FTSE's picture

A joke? Well, that makes sense, although not terribly funny. Hardy ha ha. 

Mon, 05/23/2011 - 17:13 | Link to Comment JNM
JNM's picture

Either that, or a really, really mean/funny prank on his friend/enemy, "Moniker".

How many people do you think, e-mailed this guy?

Mon, 05/23/2011 - 17:33 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Three so far!

Mon, 05/23/2011 - 17:43 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

To the three who emailed me, I sent you the link.

Due Drop Inn!

Mon, 05/23/2011 - 18:49 | Link to Comment YHC-FTSE
YHC-FTSE's picture

I get it now. You're a nut. Without any mates to bounce your ideas off. 

 

Totally inappropriate waste of space. Oh yeah, good luck keeping your real name a "secret". Duh.

Mon, 05/23/2011 - 16:55 | Link to Comment Rick64
Rick64's picture

 He left his email address, or is that a joke too. I think he's serious.

Mon, 05/23/2011 - 17:12 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

I am serious.  I just made my first post.  Email me if interested.

Mon, 05/23/2011 - 17:22 | Link to Comment JNM
JNM's picture

Wow, you already made your first post?  Holy-cow.  You are serious.  Good for you.  Good luck with everything.  I really hope, you accomplish all your dreams. 

Have you told your mom yet?  There's actually, quite a long list of people, who probably really want to read you.  Have you made a list yet, of all the people you know?

You should probably e-mail the president, if you haven't already.  Also, consider sending an e-mail, to all the mainstream media outlets. Bloomberg, CNN, CNBC will all definately want to get ontop of reading your blog.  From what I hear, blogs like yours are really threatening their existence.

Mon, 05/23/2011 - 19:48 | Link to Comment gmrpeabody
gmrpeabody's picture

"Have you told your mom yet?"

Damn it.... I almost choked on the olive!

Too funny....

 

Mon, 05/23/2011 - 19:51 | Link to Comment YHC-FTSE
YHC-FTSE's picture

+1

Mon, 05/23/2011 - 17:23 | Link to Comment Rick64
Rick64's picture

Why don't you post the link to the website of your post, and we can check it out.

Mon, 05/23/2011 - 17:33 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

I am using my real name at my blog, not DCRB.  That is why I ask you to send me a message to my above email, so, you know, I can check you out.

As I get rolling with this, I would ask anyone going to my blog NOT to mention my real name here at ZH.

Thank you!

Mon, 05/23/2011 - 17:35 | Link to Comment Rick64
Rick64's picture

I understand.

Mon, 05/23/2011 - 17:43 | Link to Comment JNM
JNM's picture

Oh! Good thinking.

You don't wanna mess around, with randoms and hobos reading your blog.

Secret blogs, are always the best kind of blogs.

Mon, 05/23/2011 - 17:43 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

No, not a secret blog at all.  I just don't want my real name gracing ZH.

Next up, I am telling everyone on my email list and my Facebook friends (a 55 yr old on Facebook?).

Mon, 05/23/2011 - 17:48 | Link to Comment JNM
JNM's picture

Sounds risky.  You should really, maybe, reconsider the secret blog idea.  It might be best, if NOBODY knows it exists.  Sortof like, you know, if you blog in a forest, and a tree falls on you, does anybody still read the post?

Mon, 05/23/2011 - 18:29 | Link to Comment Janice
Janice's picture

You should have kept your alter-ego, like Turd Ferguson did.....you never know about the wackos....and people can get down-right mean and demanding....ask The Turd.

 

But here's what I want to talk about on your blog.  If the US prints money, and every other country prints money.....shouldn't it be a win-win for ALL big governments and a screw you to ALL the little people?  Globally, wouldn't everything be the same, except the value of existing debt?  A rising tide lifts all boats.

Mon, 05/23/2011 - 17:27 | Link to Comment Janice
Janice's picture

I'm with the other poster.....just do it and send us the link.  However, personally,  I would not post everyday.  Maybe once a week...otherwise, no vacations for you.

Mon, 05/23/2011 - 15:45 | Link to Comment TooBearish
TooBearish's picture

One of the purposes of my blog would be to draw into the discussions the opinions of experts.  

Hoe the F you gunna qualify these 'experts' in the anonymous ether of the Internet?

Good luck...

Mon, 05/23/2011 - 16:12 | Link to Comment tmosley
tmosley's picture

Those who are consistently right and are able to articulate the facts on a given subject are experts.  Whether they use their real name, something to do with their profession, or call themselves something whimsical like "Turd".

Mon, 05/23/2011 - 17:56 | Link to Comment macholatte
macholatte's picture

 

Definition of Expert:

 

X is a mathematical expression for an unknown

 

Spert is a drip of water under pressure

 

Therefore, an "Expert" is an unknown drip under pressure.

 

Mon, 05/23/2011 - 22:17 | Link to Comment jaffi
jaffi's picture

X is always known once you differentiate it from the others, that is why it is called an independent variable.  

Mon, 05/23/2011 - 20:45 | Link to Comment trav7777
trav7777's picture

so, in other words, kinda the opposite of you LOL

Mon, 05/23/2011 - 21:54 | Link to Comment tmosley
tmosley's picture

Only if you are peering through the biased perspective of those with shit for brains.

Mon, 05/23/2011 - 14:22 | Link to Comment max2205
max2205's picture

That's Beralious!

Mon, 05/23/2011 - 14:46 | Link to Comment j0nx
j0nx's picture

Don't you mean belarious? Man you screwed that joke up.

Mon, 05/23/2011 - 14:52 | Link to Comment TheTmfreak
TheTmfreak's picture

Yes sadly he did. It took me two or three reads to get thats what he was aiming for, when I knew thats what he was trying to say...

Mon, 05/23/2011 - 15:05 | Link to Comment Doña K
Doña K's picture

Maybe he is Japanese and confused the r's and l's, or he actually is ahead of you and did it purposely. Still funny

Mon, 05/23/2011 - 14:46 | Link to Comment whatsinaname
whatsinaname's picture

They are still paying for Chernobyl - thats what it is. Belarus & Ukraine really got stuck with it thanks to the erstwhile USSR.

Mon, 05/23/2011 - 14:22 | Link to Comment Zing
Zing's picture

http://www.kitco.com/kitco-gold-index.html?utm_source=kitco&utm_medium=b...

 

Just more examples of why GOLD is the best store of value and wealth.

Mon, 05/23/2011 - 14:56 | Link to Comment Rynak
Rynak's picture

zing doesn't want you to buy silver :) New teleprompter message from paid troll brigade: "Well, if we can't make you stop buying PMs, then at least only buy gold"

Mon, 05/23/2011 - 15:13 | Link to Comment trav7777
trav7777's picture

silver isn't in the same league as gold for wealth preservation

Mon, 05/23/2011 - 15:16 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ $55,000

Mon, 05/23/2011 - 15:15 | Link to Comment Hugh G Rection
Hugh G Rection's picture

agreed

 

Silver isn't in the wealth "preservation" league... It's in the wealth multiplication league.

Mon, 05/23/2011 - 15:45 | Link to Comment SilverIsKing
SilverIsKing's picture

And all along I was thinking league of exponential wealth...

Mon, 05/23/2011 - 20:43 | Link to Comment trav7777
trav7777's picture

if it's speculation you are after, GGP blew silver away too

Mon, 05/23/2011 - 16:27 | Link to Comment David449420
David449420's picture

It is if that is all you can afford.

Mon, 05/23/2011 - 14:55 | Link to Comment jus_lite_reading
jus_lite_reading's picture

Yup and its coming to a dollar near you...

buy gold, save your ass

Mon, 05/23/2011 - 14:22 | Link to Comment SoNH80
SoNH80's picture

Belarus is about as close as you can get to an autarkic, industrialized economy today.  Their only big trade partner is Russia, which might get hot under the collar about this.

Mon, 05/23/2011 - 14:56 | Link to Comment A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

Yes! "Cheap Communist Immitation of Euro-Disney Located In Belarus" here we come!

Mon, 05/23/2011 - 14:24 | Link to Comment John McCloy
John McCloy's picture

And why would these be bad for silver/gold or the dollar which is considered the king of currencies because of reserve status? 

   See you below parity EUR

Mon, 05/23/2011 - 14:25 | Link to Comment Hugh G Rection
Hugh G Rection's picture

Vacation time...

 

half price Belarussian blowjobs!

Mon, 05/23/2011 - 14:56 | Link to Comment SilverRhino
SilverRhino's picture

For foreign dicks the price will stay the same.   Belarus dicks just got cornholed because they will cost double.

 

Mon, 05/23/2011 - 17:13 | Link to Comment Cthonic
Cthonic's picture

They'll know if they devalued too far if there is a surging surplus of special sauce hosing the Big Mac index.

Mon, 05/23/2011 - 14:26 | Link to Comment Janice
Janice's picture

Where dat?

Mon, 05/23/2011 - 14:30 | Link to Comment SoNH80
SoNH80's picture

Between Poland and Russia.

Mon, 05/23/2011 - 14:33 | Link to Comment tpberg7
tpberg7's picture

This is an original Minsk moment.

Mon, 05/23/2011 - 15:33 | Link to Comment akak
akak's picture

Ugh!

+ 1/2 anyway

Mon, 05/23/2011 - 15:38 | Link to Comment macholatte
macholatte's picture

 

The Night They Raided Minsky's

http://www.youtube.com/watch?v=zFejEwNYAKc

 

 

Mon, 05/23/2011 - 14:31 | Link to Comment Hugh G Rection
Hugh G Rection's picture

http://en.wikipedia.org/wiki/Belarus

 

Minsk is beautiful, and the best place to find hookers in Belarus

Mon, 05/23/2011 - 14:40 | Link to Comment Janice
Janice's picture

So that's why I don't know where it is!!  I wasn't looking for hookers!

Mon, 05/23/2011 - 15:29 | Link to Comment TIMMAYYY
TIMMAYYY's picture

then what were you doing......

Mon, 05/23/2011 - 17:25 | Link to Comment Janice
Janice's picture

Looking for blow

Mon, 05/23/2011 - 20:02 | Link to Comment Hulk
Hulk's picture

HaHa! Great response!

Mon, 05/23/2011 - 14:38 | Link to Comment SoNH80
SoNH80's picture

Belarus in general is amazingly clean and tidy.  It's sort of like an idealized cartoon version of what the U.S.S.R. "might have been".  Friendly people, that fought on the side of the Allies in WW2.

Mon, 05/23/2011 - 14:51 | Link to Comment falak pema
falak pema's picture

except for its "uber -president"...

Mon, 05/23/2011 - 15:00 | Link to Comment SoNH80
SoNH80's picture

Yes, it's a police government, just like Iran.  But the place is CLEAN and GREEN I tell ya, and it's unsual to see Soviet-style architecture in tip-top condition, instead of grimy or run-down.

Mon, 05/23/2011 - 19:36 | Link to Comment hawks5999
hawks5999's picture

Haven't been there for 16 years. They were doing this same kind of thing in 2004 and 2005. Pity too. What you say is right about the condition of things. Even the ruins (Brest for instance) were pretty well kept. 

 

ofiget

Mon, 05/23/2011 - 14:31 | Link to Comment TheTmfreak
TheTmfreak's picture

Coming to a US near you.

Mon, 05/23/2011 - 14:36 | Link to Comment Arius
Arius's picture

well...it has to start somewhere..

nice touch in the article w/ critiques ...at least it makes them feel good complaining and raising their voices...

Mon, 05/23/2011 - 14:33 | Link to Comment bbq on whitehou...
bbq on whitehouse lawn's picture

You could save your savings by switching to commodities or you could pay more, by not.

Mon, 05/23/2011 - 14:34 | Link to Comment willien1derland
willien1derland's picture

Bernacke, Pisani, & Liesman were all long BYR backed assets - Geithner will provide Full Faith & Credit backstop to Belarus! Long live the revolution!

Mon, 05/23/2011 - 14:35 | Link to Comment Arius
Arius's picture

LiesMan will have a field day as the expert to go to... 

Mon, 05/23/2011 - 15:05 | Link to Comment topcallingtroll
topcallingtroll's picture

Hey talmud kid!

I missed you!

Mon, 05/23/2011 - 14:34 | Link to Comment Mec-sick-o
Mec-sick-o's picture

On your marks, get set, GO!

The race for devaluating fiats has begun!

Mon, 05/23/2011 - 14:40 | Link to Comment Bubbles...bubbl...
Mon, 05/23/2011 - 16:15 | Link to Comment youngman
youngman's picture

I watched that and three others...I almost booked a flight....but then I realized I live in Medellin Colombia....can´t beat it for beautiful women...

Mon, 05/23/2011 - 14:41 | Link to Comment John McCloy
John McCloy's picture

1 Hour till markets close green and prolong the 10% gap down overnight by one more day.

Mon, 05/23/2011 - 14:45 | Link to Comment HamyWanger
HamyWanger's picture

This is a very healthy decision. Governments must use artificial and natural currency adjustments as tools in their arsenal. 

The US dollar will end up being devalued too one way or another: good news for the economic recovery, bad news for libertarian, anti-inflation bigots. 

Mon, 05/23/2011 - 15:03 | Link to Comment topcallingtroll
topcallingtroll's picture

I dont know why libertarians wouldnt understand that with floating fiat currencies that persistent trade deficits resolve themselves by changes in exchange rates....or eventually the manipulated suppressed currency blows up the economy.

Mon, 05/23/2011 - 14:45 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

"In the first stage decisions will be made to bring down the increased demand, and upon receipt of the loan rate will be formed on the basis of supply and demand, thus lowering the expectations today are still there,"

i'm sure this is about as much sense as it makes in bella-russki, too-skie!

just shy of a 2-for-1 split.  speculative decisions?  where? 

it takes the FED 2-3 years, sometimes, to do this kind of damage.  envy, indeed!

Mon, 05/23/2011 - 14:55 | Link to Comment tmosley
tmosley's picture

Imagine that, a Soviet style economy devaluing its currency.

Christ, I didn't realize there were still communist nations in Europe.  

Mon, 05/23/2011 - 15:07 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Check out Moldova. Its main export is blond hookers. Go figure.

Mon, 05/23/2011 - 17:26 | Link to Comment tired1
tired1's picture

I used to think I knew some things...

Yes, Belarus is supposedly the last of the Soviet style countries, still has security serice named KGB. Their Pres refuses to promote agricultural as well as other reforms.

Ukraine, the neighbor to the south has gone through the Orange Revolution. I was initially glad that the country would have more responsible control over its' own terrritory, depite Russia's objection. Well, turns out that Soro and his buddies now run the show; the situation is beyond insane. The breadbasket of Europe needs grain imports (which is quite the scam in itself). I don't know exactly where I going with this except to state that in governmnet  - charactor is vital. No system, in and of itself, is corruption proof.

Mon, 05/23/2011 - 14:52 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Yeah, when you are taking loans from Azerbaijan to pay off debt to Gazprom, things are not going well.

Mon, 05/23/2011 - 14:55 | Link to Comment Dangertime
Dangertime's picture

Bad for savers.

Not terribly bad for gold holders.

Excellent for debt holders.

 

Mon, 05/23/2011 - 15:00 | Link to Comment HamyWanger
HamyWanger's picture

Actually, a foreigner gains 56% more purchasing power in Belarus, a Belarusian loses 56% of purchasing power in a foreign country, and Belarusians in Belarus keep a stable purchasing power, except on imported goods. 

It is "excellent for debt holders" only if your revenue is made of a foreign currency. Yes, the CPI will eventually increase because of imported goods, but it can take a lot of time. 

Mon, 05/23/2011 - 15:11 | Link to Comment Dangertime
Dangertime's picture

It is excellent for debt holders if they used that debt to purchase an asset such as gold, essentially giving themselves free money.

Mon, 05/23/2011 - 19:24 | Link to Comment vocational tainee
vocational tainee's picture

go to belaruss and try to buy gold bars.....belariuss

 

Mon, 05/23/2011 - 19:27 | Link to Comment vocational tainee
vocational tainee's picture

go to belaruss and try to buy gold bars.....belariuss

 

Mon, 05/23/2011 - 15:25 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

ms wanger:  Yes, the CPI will eventually increase because of imported goods, but it can take a lot of time.

this is really quite funny! 

Mon, 05/23/2011 - 17:04 | Link to Comment Rick64
Rick64's picture

Right, how long can it take when the currency is devalued 56% in one day.

Mon, 05/23/2011 - 16:01 | Link to Comment robertocarlos
robertocarlos's picture

Robbing tourist pays twice as well now.

Mon, 05/23/2011 - 16:19 | Link to Comment espirit
espirit's picture

Hookers - two for the price of one?

Mon, 05/23/2011 - 19:49 | Link to Comment hawks5999
hawks5999's picture

Foreigners don't gain anything. All prices just increased 56% or more as well.

I was in Belarus when their currency was collapsing back in the mid-90's. Dollars kept purchasing power compared to the Ruble but they didn't gain a whole lot. In some cases they would lose as merchants would jack prices up far more than the currency was collapsing - even in Dollars.

When I landed, a Coke was 1000 rubles (or $1) at the airport. When I left six months later, a Coke was 10000 rubles (or $1) at the airport. Nearly all price tags were handwritten in Belarus.

Mon, 05/23/2011 - 15:13 | Link to Comment moonstears
moonstears's picture

This is why the USA will see this in some form, at some time, biggest debtor is the Govt, savers o' fiats get slaughtered, holders of metals and rice and beans neutral. Debtors with jobs make out, if swift, and having contracted payment plans, before any banking reforms. Old pensioners starve. http://university.unitedstatesliberty.org/654/textbooks/adam-fergusson-w...

Mon, 05/23/2011 - 20:46 | Link to Comment trav7777
trav7777's picture

jobs?  LOL.  Workers never prosper in inflations like this as wages never keep pace.

Those who make out are big levered fish who get lent zillions.

Mon, 05/23/2011 - 14:52 | Link to Comment monopoly
monopoly's picture

And the clock keeps ticking.

Mon, 05/23/2011 - 14:54 | Link to Comment falak pema
falak pema's picture

the race to devaluate is the ultimate goal of gobalisation and "international labor arbitrage". That way the Oligarchy circus never stops...it just goes on and on...we delocalise..ad infinitum..from hill to nearby dale...the Hobbits all subservient. Oh Mordor, oh Sauron, oh the fellowship of the ring!

Mon, 05/23/2011 - 14:55 | Link to Comment adonisdemilo
adonisdemilo's picture

c'mon Greece, get your finger out.

see how easy it is.

cut your debts in half

dump the euro

fire up the drachma

tell the ECB, IMF et al to get lost.

Oh ! I nearly forgot, RENEGE.

Mon, 05/23/2011 - 15:19 | Link to Comment tired1
tired1's picture

But then the capital markets will be closed to the Greeks and they wont be able to borrow any more. Oh wait....

Mon, 05/23/2011 - 18:47 | Link to Comment nufio
nufio's picture

which would mean the politicos cant run any deficit anymore.. so its not going to happen.

Mon, 05/23/2011 - 14:56 | Link to Comment carbonmutant
carbonmutant's picture

Corruption index is pretty high in Belarus...

Mon, 05/23/2011 - 15:00 | Link to Comment anony
anony's picture

er....uhh....the language police tell me that Jealousy and Envy are two quite different things.

You can be jealous, and you can be envious.  But neither you nor the Greeks, can be be jealous with envy. 

Just sayin'....

 

 

Mon, 05/23/2011 - 15:06 | Link to Comment Lucius_Junius_Brutus
Lucius_Junius_Brutus's picture

+1

Mon, 05/23/2011 - 15:00 | Link to Comment mt paul
mt paul's picture

Babes of Belarus...

 

2 for 1..

Mon, 05/23/2011 - 15:02 | Link to Comment FranSix
Mon, 05/23/2011 - 15:06 | Link to Comment Voodoo-economist
Voodoo-economist's picture

this is risk on, right?

Mon, 05/23/2011 - 15:08 | Link to Comment MrSteve
MrSteve's picture

What did the Belarus currency do when the ruble went poof in 1998? Was Belarus using the ruble then?

Mon, 05/23/2011 - 19:30 | Link to Comment vocational tainee
vocational tainee's picture

they always used rubles

Mon, 05/23/2011 - 19:27 | Link to Comment vocational tainee
vocational tainee's picture

they always used rubles

Mon, 05/23/2011 - 19:30 | Link to Comment vocational tainee
vocational tainee's picture

they always used rubles

Mon, 05/23/2011 - 19:48 | Link to Comment hawks5999
hawks5999's picture

They have Belarussian rubles. They aren't (or at least weren't) the same money as Russia.

Mon, 05/23/2011 - 15:05 | Link to Comment PulauHantu29
PulauHantu29's picture

I was afraid this was going to happen...so is Grece next?

...then Ireland?

...then Spain?

...and so on?

Mon, 05/23/2011 - 15:18 | Link to Comment moonstears
Mon, 05/23/2011 - 15:26 | Link to Comment tired1
tired1's picture

Does NATO have any plans to intervene in these places?

Mon, 05/23/2011 - 15:10 | Link to Comment ryanseventyfive
ryanseventyfive's picture

What's a belarus?

Mon, 05/23/2011 - 15:27 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

A Russian buffer state.

Mon, 05/23/2011 - 19:30 | Link to Comment vocational tainee
vocational tainee's picture

white russia..

Mon, 05/23/2011 - 15:13 | Link to Comment Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

I would think that any Belarus person with relatives in the US are callling for some Western Union moneygrams to pay off their debts. Or to stock up on provisions before the inflation works its way thru the lines.

Not sure what % of their population works in W. Europe, but that percentage will likely rise dramatically. Heck, they can even go to Russia and make mad spend.

I guess the moral of the story is to never be a pensioner. You're a sitting duck regardless of what currency you may have faith in.

Mon, 05/23/2011 - 15:24 | Link to Comment moonstears
moonstears's picture

Or as a pensioner savings must be kept mostly in metals in safe deposit, full cupboards, and at least alt currencies, too . 

Mon, 05/23/2011 - 15:29 | Link to Comment tired1
tired1's picture

I've known young people from former Eastern Bloc countries countries that would come and work for the summer here in the US then return with a chunk of cash and try to do something useful back home, the kids from Belorus stayed here.

Mon, 05/23/2011 - 15:32 | Link to Comment InconvenientCou...
InconvenientCounterParty's picture

"You're a sitting duck regardless of what currency you may have faith in"

If you have faith in fiat currency then you are a sitting duck regardless.

Mon, 05/23/2011 - 19:54 | Link to Comment hawks5999
hawks5999's picture

Western Union doesn't help. You have to pay at least 56% to the mafia thug outside the door.

Mon, 05/23/2011 - 15:24 | Link to Comment Tail Dogging The Wag
Tail Dogging The Wag's picture

This only means that it now takes 56% more BYR to dig the shiny stuff out of the ground.

Havenstein/Bernanke Fan Club in Minsk is getting a lot of mail.

Mon, 05/23/2011 - 15:36 | Link to Comment LivermoreJim
LivermoreJim's picture

Reminds of this limmerick by Pasquale Orsini:

 

There once were three bros from Belarus

Who said to gal, "would you marry us?"

   You'll be able to chose

   Whose organ to use,

And the positions, of course, will be various.

Mon, 05/23/2011 - 15:45 | Link to Comment moonstears
moonstears's picture

Reminds me of a Belrusian Govt poster. "16,000 Rubles is good for a litre of Petrol, until it's not".

Mon, 05/23/2011 - 15:47 | Link to Comment gwar5
gwar5's picture

That's pretty much how I see the final crash of the USD, except our PTB Folkers will let it crash 50%, and let it pop back up to 45% and say, "See, we made you 10% already! ... you ungrateful peasants."

It's an instant surcharge tax on the people. It's like confiscation/revaluation of gold all over again, only much quicker and easier for TPTB. 

TPTB say they are determined to create an orderly decline in the USD. They only say that for the suckers, to prevent a run on the currency. Rational people ignore the Folkers. The USD is eventually going to go like Belarus and Iceland, a thief in the night that surpises everybody but shocks noone. 

They let you think you have time to exchange for another currency, or asset. But most will might just wake up one day to find out on Drudge that your 401K and other accounts have all been converted to the new "Patriot Dollars" at a new exchange rate to the Euro and Yuan, devalued by 33%.  It would never work if they told you beforehand  what they were going to do. The whole is to catch the suckers offguard or the theft doesn't work.    

Assuming we started at a DXY 90 and the Bernank wants a Chinese 40% revaluation, then we could be on our way well south of 60 DXY to get where Benzebub really wants it to go, made harder by the Chinese not depegging.  After the USD closes below all support past 70 and starts falling hard and fast, why not just say WTF, and devalue it overnight before people have a chance to run out of it.

Mon, 05/23/2011 - 15:47 | Link to Comment Ecoman11
Ecoman11's picture

Let this be a lesson to the gold/silver trolls.

Mon, 05/23/2011 - 15:46 | Link to Comment SilverIsKing
SilverIsKing's picture

I would expect the populations of neighboring countries to start rushing for the exits on their currencies and start buying gold and silver to protect themselves from that same thing happening in their country.

Mon, 05/23/2011 - 19:58 | Link to Comment hawks5999
hawks5999's picture

Not likely. Belarus is an anomoly in the neighborhood. They've had a strongman soviet dictator for over 15 years and their economy has been a basket case since the fall of the USSR. Poland, Ukraine, Latvia, Lithuiana - not so much.

Mon, 05/23/2011 - 15:49 | Link to Comment robertocarlos
robertocarlos's picture

That's like a 2 for 1 sale on hot women.

Mon, 05/23/2011 - 17:54 | Link to Comment SilverIsKing
SilverIsKing's picture

Hot women in Belarus?

Mon, 05/23/2011 - 19:32 | Link to Comment vocational tainee
vocational tainee's picture

all over the world the same..

Mon, 05/23/2011 - 15:54 | Link to Comment alus
alus's picture

It's not a problem to work for Bialorussians to work in Poland without restricted permissions. Ordinary people living next to the border will manage, but the rest? The only reason is to make people angry on Lukashenka - and change the government. Probably after last trying to do this in peaceful way - someone decides to go into plan "B".

You worry abt' 5-10% declines of USD in a month, so what about stealing more than 50% in one day? But the real exchange rate is much higher! You can't buy dollars for official rate....

Mon, 05/23/2011 - 15:52 | Link to Comment robertocarlos
robertocarlos's picture

No matter what you own in Belarus you just doubled your money. Probably their wages will double over night as well. It's a win win. 

Mon, 05/23/2011 - 15:58 | Link to Comment moonstears
moonstears's picture

no, no no. True your Spagetti Os, you bought last week, just doubled in value, because prices just doubled, for all things you'll need this week, and wages will take a while to catch up. That's how it works.

Mon, 05/23/2011 - 16:08 | Link to Comment robertocarlos
robertocarlos's picture

They should just go on general strike until their wages are doubled. If such a currency change happened to me I'd be on the street selling my surplus used shoes and socks. Somehow the govt CPI sets my pension increase at .5% a year.

Mon, 05/23/2011 - 16:16 | Link to Comment moonstears
moonstears's picture

carlos, bookmark this and shortcut to your desktop then read, at your leisure, friend, eye opener!: http://university.unitedstatesliberty.org/654/textbooks/adam-fergusson-w...

Mon, 05/23/2011 - 15:56 | Link to Comment gwar5
gwar5's picture

That's pretty much how I see the final crash of the USD, except our PTB Folkers will let it crash 50%, and let it pop back up to 45% and say, "See, we made you 10% already! ... you ungrateful peasants."

It's an instant surcharge tax on the people. It's like confiscation/revaluation of gold all over again, only much quicker and easier for TPTB. 

TPTB say they are determined to create an orderly decline in the USD. They only say that for the suckers, to prevent a run on the currency. Rational people ignore the Folkers. The USD is eventually going to go like Belarus and Iceland, a thief in the night that surpises everybody but shocks noone. 

They let you think you have time to exchange for another currency, or asset. But most will might just wake up one day to find out on Drudge that your 401K and other accounts have all been converted to the new "Patriot Dollars" at a new exchange rate to the Euro and Yuan, devalued by 33%.  It would never work if they told you beforehand  what they were going to do. The whole is to catch the suckers offguard or the theft doesn't work.    

Assuming we started at a DXY 90 and the Bernank wants a Chinese 40% revaluation, then we could be on our way well south of 60 DXY to get where Benzebub really wants it to go, made harder by the Chinese not depegging.  After the USD closes below all support past 70 and starts falling hard and fast, why not just say WTF, and devalue it overnight before people have a chance to run out of it.

Mon, 05/23/2011 - 15:53 | Link to Comment huckman
huckman's picture

Its BYRUSD, not USDBYS.  So that's an appreciation, not deprecitation.

Mon, 05/23/2011 - 15:54 | Link to Comment YHC-FTSE
YHC-FTSE's picture

According to the BBC, it's 36% devalued against the US dollar. 4930 BYR from 3155 BYR, and because the BYR can only be exchanged at their central bank, the black market for foreign currency in that country must be thriving. The interbank rate is around 7000 BYR to the USD anyway, so it's not as if there's been a big change from yesterday. 

 

The shops are said to be empty of goods, importers lacking hard currency to buy anything and set to get worse. But according to Alex Pivovarsky of the European Bank for Reconstruction and Development, "What they have done today is a positive step".....Right. I can see the vultures circling from here.

http://www.bbc.co.uk/news/business-13508159

Mon, 05/23/2011 - 15:59 | Link to Comment silberblick
silberblick's picture

There's a bigger story here. President Alexander Lukashenko is sending regime critics to prison. He is cracking down on dissents and protesters: anything to desperately hang on to power. Is this what it's going to look like in other countries (like the US) when the chickens come home to .... As first reported here:

http://thesilvergoldhedge.blogspot.com/2011/05/belarus-currency-crisis-a...

Mon, 05/23/2011 - 16:09 | Link to Comment What_Me_Worry
What_Me_Worry's picture

Since devaluing your currency is considered a positive for your economy, then everyone in Belarus should be living the good life here shortly.

Although I am sure the Bernank prefers the maxim that you can sheer the sheeple many times, but can only skin them once(per election cycle).

Mon, 05/23/2011 - 16:26 | Link to Comment High Plains Drifter
High Plains Drifter's picture

who is their chairsatan?

Mon, 05/23/2011 - 16:34 | Link to Comment PulauHantu29
PulauHantu29's picture

Belarus....mmmm...isn't Belarus just north of Idaho:

http://www.usdebtclock.org/2015-current-rates.html

Mon, 05/23/2011 - 16:38 | Link to Comment huckman
huckman's picture

Backwards folks.  My BYR can now get more USD, not less. 

Mon, 05/23/2011 - 17:17 | Link to Comment onlooker
onlooker's picture

Belarus Tractors, for me this is up close and personal. Belarus Tractors are maybe 5th or something in the World market. There is talk of a Bankruptcy. There is talk of corrupt governments in Russia land. Now we see an unhealthy Belarus dollar.

 

So who gives a flyin Funk ( Funk Brothers Aircraft Manufacturer and tractor modification )----- Me for one. I won three of the Belarus tractors and do not want to see any worse parts supply.

 

So how does one get themselves into such a mess like USSR/Russian Tractors? Well, the things are like a Stalin tank and designed for the faint of mind to fix. A pocket knife and a sledge hammer will fix any mechanical problems. Any fool can fix one which is handy, because only a fool would own one.

Mon, 05/23/2011 - 17:28 | Link to Comment goat
goat's picture

I too, foolishly love the Belarus tractor.  

Thu, 05/26/2011 - 01:55 | Link to Comment ejhickey
ejhickey's picture

Do they make a hybrid or electric powered version?

Mon, 05/23/2011 - 17:37 | Link to Comment GFORCE
GFORCE's picture

Bernanke could do this and then hold a press conference reiterating his strong dollar policy.

Mon, 05/23/2011 - 17:43 | Link to Comment NZ Watcher
NZ Watcher's picture

My wife and I do business with Belarus via our Ukraine exporting company. It appears to us (my wife is formally from Kiev) the Belarusian people are very happy with their lifestyles – much more so than our Kiev/Ukrainian friends etc.

Proof perhaps that dictatorship has its worth in tuff times – keeps the machine running with people that didn’t overstep their personal financial targets and wants.

 

Mon, 05/23/2011 - 17:54 | Link to Comment johngaltfla
johngaltfla's picture

Definitely bullish. Buy more LKND.

Mon, 05/23/2011 - 19:08 | Link to Comment ilovefreedom
ilovefreedom's picture

Is it bad that I hope the USD does this as well??

Tired of slogging along working while everyone seemingly runs around unemployed frolicing their time away at starbucks on their laptops and sleeping until noon.

I want to sleep until noon dammit!  But I can't until my silver skyrockets and I can buy my neighborhood for pennies on the dollar.

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