Russia Imposes Inflation-Driven Price Controls: Will Use Price Caps On "Socially Important" Commodities

Tyler Durden's picture




 
0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 01/24/2011 - 20:54 | 900897 EscapeKey
EscapeKey's picture

Nothing that can't be solved by printing a few hundred billion US Dollars, and fortunately, I know just the man for the job.

/Price controls?? We're so fucked.

Mon, 01/24/2011 - 21:06 | 900952 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Edit:

Nothing that can't be solved by printing a few hundred trillion US Dollars[.]

Tue, 01/25/2011 - 01:02 | 901677 flacon
flacon's picture

The World Economic Forum suggests printing at least ONE HUNDRED THOUSAND BILLION DOLLARS to keep the world afloat. Of course they refer to this as "CREDIT" but in common peasant-language it is called "DEBT". 

 

Listen to Jim Rickards:

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/1/22_Jim_Rickards:.html

 

Tue, 01/25/2011 - 01:03 | 901685 asdasmos
asdasmos's picture

Yeah, it is pretty scary.

 

That was a great interview

Tue, 01/25/2011 - 01:06 | 901687 flacon
flacon's picture

+++ That's 0.1 MILLION BILLION DOLLARS! Sounds like I'm talking gibberish with those sorts of numbers. But that is $100,000,000,000,000.00! And HOW LONG does it take for ME to earn that much? Holy crikey!

Tue, 01/25/2011 - 01:15 | 901698 Malcolm Tucker
Malcolm Tucker's picture

Algeria might be the next domino to fall because of Bernanke and company. Here are videos of the riots and even the hacking group Anonymous is getting in on the action!

http://fedupmontrealer.blogspot.com/2011/01/algeria-next.html

 

Tue, 01/25/2011 - 09:37 | 902188 ElvisDog
ElvisDog's picture

I disagree. When it gets up to 100,000 billion, it reaches the level of absurdity. The absurd is funny rather than scary.

Tue, 01/25/2011 - 01:03 | 901686 flacon
flacon's picture

I'm considering doubling my food supply to one decade's worth of food to feed my entire family. 

Tue, 01/25/2011 - 04:25 | 901858 Seer
Seer's picture

Excellent interview!

I'd caution people, however, to not go overboard with the "global governance" angle.  What we're seeing now is a breakdown of governments because there is insufficient resources; creating MORE govt isn't going to solve this issue.  Again, this is my "bad systems can NOT propagate [because, well, because they are bad!]" point of reasoning.  And... BIG = FAIL  BIG & BAD = DOUBLE FAIL!

Interesting to note that the extraction rate of gold is pretty much in balance with population growth.  What happens when population growth falls off?  It's not a matter of IF, but When.  Can anyone speculate as to what would happen vis a vis gold valuation?

Tue, 01/25/2011 - 07:45 | 901979 redline
redline's picture

With large global systems, we have perfected fragility.  It takes a lot of energy and effort to keep it running.

Tue, 01/25/2011 - 01:01 | 901679 Rusty Shorts
Rusty Shorts's picture

O/T, but I think I just felt a tremor, New Madrid.

Tue, 01/25/2011 - 17:05 | 903976 andybev01
andybev01's picture

+ (14 zeros)

Mon, 01/24/2011 - 21:07 | 900974 DoChenRollingBearing
DoChenRollingBearing's picture

Yeah, well, we will see how well price controls work for Russia.

Last time we tried that it did not work out very well for us.

Mon, 01/24/2011 - 21:32 | 901040 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Any nation state not grasping at straws?

Mon, 01/24/2011 - 21:49 | 901145 almost_have_a_name
almost_have_a_name's picture

Somewhere in Russia:

A man asks the meat department manager "how come you don't have any fish"

The manager replies "the seafood department is where they don't have any fish"

 

Tue, 01/25/2011 - 06:39 | 901939 Treason Season
Treason Season's picture

Perastroika-era story told in Poland

Man complains there is no meat. Soldier reminds man he should be grateful because now he has the freedom to complain.

When man goes home wife asks if there was meat today. Man replies that not only was there no meat but the army was out of bullets!

Tue, 01/25/2011 - 00:57 | 901664 LowProfile
LowProfile's picture

I predict they will work just as well as the last XX,XXX times they tried it when they were called the USSR.

Shortages & renewed black market coming to Russia.

Despite it all Ivan is still a dumb sack of fucks.

Mon, 01/24/2011 - 23:59 | 901565 In Fed We Trust
In Fed We Trust's picture

as Steve Liesman explains so well today, a 100% rise in the price of wheat would only translate to a 10% hike in the price of bread. What happens to the other 90% (which incidentally annihilates the producer's margin but Steve didn't get to page two in that particular Inflation for Dummies book), is apparently unclear to the CNBC head economtake ist.

 

Thats easy man. That because they take all lt the wheat out of the bread and sell it else where. That's why where malnourished, man!

Tue, 01/25/2011 - 00:04 | 901580 Ahmeexnal
Ahmeexnal's picture

Melamine instead of wheat in your bread.

Tue, 01/25/2011 - 01:27 | 901716 RockyRacoon
RockyRacoon's picture

I actually found myself despising the blatant diversionary tactic that Liesman was laying out today.  They ran that piece several times and I got angrier every time.  His explanation that the price of bread goes up only 10 cents for every 50% rise in wheat was a crock.   Not about the bread.  I could see the UN trucks unloading sacks of grain from the backs of trucks being overrun by starving people.  That was not piping hot bread on a set in the CNBC studios.  It was RAW wheat that the people had to process to make something edible.  The cost to them was 50% higher -- not 10%.  Frackin' freaks at CNBC told only 1/3 of the story.

Tue, 01/25/2011 - 03:23 | 901816 StychoKiller
StychoKiller's picture

Apparently, there's a lot of inflation in the LIES market(s) too!

Tue, 01/25/2011 - 06:42 | 901943 EscapeKey
EscapeKey's picture

It's the same old tactics of progressive admission. Deny absolutely everything that isn't in stone cold facts, and then only agree with it when it is, despite it having been obvious the entire time. Bernanke's often used this.

Same argumentation technique certain radical elements on this website use.

Tue, 01/25/2011 - 00:30 | 901627 Hammer Down
Hammer Down's picture

Word.  It was inevitable though.  Piss poor monetary policy ->  Inflation - > uniformed public outrage -> capitalism vilified -> govt to the rescue with price controls -> shortages -> higher prices -> outrage...  rinse, repeat

Tue, 01/25/2011 - 04:31 | 901866 Seer
Seer's picture

All a distracting sub-plot...

Perpetual growth on a finite planet -> Collapse

Any System that promotes infinite growth on a finite planet is, in the final analysis, BAD (FAIL!).

Tue, 01/25/2011 - 03:26 | 901821 bigelkhorn
bigelkhorn's picture

Yes you got it right! We are very Effed!

I subscribe to the guy from australia and his FFT economic newsletter at http://www.forecastfortomorrow.com  that guy has called many big events before they have happend, including the stock market crash in 2008 and the current financial collapse of the US. (currently happening) I found him from a friend last year, and he has some uncanny accurate stuff. Well worth a look....

He had it right when he said there was a time where the US could back track and could undo the damage...but that time has now passed....and financial armageddeon is coming. I am scared!!! Everyone else awake and in tune to what is going on is scared too. 

 

Tue, 01/25/2011 - 03:39 | 901827 Weisbrot
Weisbrot's picture

a refernece through a post a few weeks back seemd to get it right. "cognitive dissonance"

Tue, 01/25/2011 - 15:26 | 903563 tjunkie
tjunkie's picture

lets not get all hysterical here ...
fine lets get hysterical, but there are enough real reasons out there,
just not this. Ok?
Lets instead title the post accurately.
First line in the original article(http://gazeta.ru/financial/2011/01/24/3502942.shtml), and I quote:

<<????????????????? ?? ?????????, ??? ? 2011 ???? ????? ???? ???????????? ??????????? ?? ???????????? ?????????? ??? ?? ????????? ???? ????????????????? ???????>>
In english :
<<ministry of econ. development DOES NOT exclude the possibility that in 2011 it may use tools for setting price limits on some types of food ...>>

 

the translation is mine and is nearly literal.

So no price controls yet.

As much as I love this place... this is just silly.

 

PS : not sure if cyrillic text will work here

Mon, 01/24/2011 - 20:57 | 900911 Alcoholic Nativ...
Alcoholic Native American's picture

Bend and cough bitches.

Mon, 01/24/2011 - 23:40 | 901504 A Nanny Moose
A Nanny Moose's picture

Fermented grain bitchez.

 

Mon, 01/24/2011 - 20:58 | 900914 Dr. Engali
Dr. Engali's picture

It's working it's way up the food chain. It's just a matter of time before we all feel inflation's crushing grip.

Mon, 01/24/2011 - 20:59 | 900921 Alcoholic Nativ...
Alcoholic Native American's picture

I'm hedged with my EBT card.

Mon, 01/24/2011 - 20:59 | 900922 RobotTrader
RobotTrader's picture

Gold just "Flash Crashed" down to $1,300.

Some big institutions must be dumping.

http://quotes.ino.com/chart/?s=FOREX_XAUUSDO&v=w

Mon, 01/24/2011 - 21:01 | 900933 Spalding_Smailes
Spalding_Smailes's picture

Martin Armstrong like waterfall looming .... Wooooooooooooooosh --- 1,320 -- Woooooooooooooosssssshhhhh

Mon, 01/24/2011 - 21:30 | 901066 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Platinum bounced off of support at the all important $1800 level.  Watch platinum to know what happens next.  I bet the next move starts with platinum moving to $1900.  Of course mnay will probably miss it because they are watching gold and silver.  Soon it will be platinum's time to shine.

Mon, 01/24/2011 - 21:32 | 901073 topcallingtroll
topcallingtroll's picture

Platinum might just run for a while. We shall see.

Tue, 01/25/2011 - 01:26 | 901712 flacon
flacon's picture

Let's not forget THE Flash Crash! I already forgot what gold did during those harrowing 15 minutes..... oh yeah.... I remember now.... 

 

Sneak Preview: Market Crash

http://www.youtube.com/watch?v=WmpNTtQu8E4

Mon, 01/24/2011 - 21:05 | 900955 nmewn
nmewn's picture

All my dreams are coming true.

Mon, 01/24/2011 - 21:39 | 901102 Temporalist
Temporalist's picture

You crack me up

Mon, 01/24/2011 - 22:04 | 901195 nmewn
nmewn's picture

;-)

When fiat price is of no concern to the underlying value it's pretty easy.

Good to see you again.

Mon, 01/24/2011 - 23:47 | 901534 Oh regional Indian
Oh regional Indian's picture

The lack of concern re. fiat price is going to get tested more and more NM. These guys know how roller coasters work! :-)

And Russia is familiar with how price controls work. Russians are familiar with how "Control" works. Same with China. When push comes to shove, the "Socialists" will be okay, it's the west, with it's false sense of security and lack of familiarity with control that is going to be hard to swallow.

ORI

http://aadivaahan.wordpress.com/2011/01/21/accidental-lives/

Tue, 01/25/2011 - 01:37 | 901719 flacon
flacon's picture

"We-re Amerikah! Were Americkah! Where Amreikah! U-S-A! U-S-A! U-S-A! U-S-A!

Tue, 01/25/2011 - 08:15 | 902011 nmewn
nmewn's picture

"When push comes to shove, the "Socialists" will be okay, it's the west, with it's false sense of security and lack of familiarity with control that is going to be hard to swallow."

History says otherwise.

It's replete with examples of a yearning to be free from control...dictatorial, passive, monarchical or otherwise...the human spirit is always pushing against control, stretching the boundaries of it until it breaks, violently or peacefully, but it always breaks, and then the pieces are picked up to form the control pattern again by appointed or self-appointed leaders.

Who will be eventually corrupted by ego or greed or power or mystic self importance for they, once attaining this status, believe that they, and only they, have the answer to mans wants and desires.

But they don't.

They will shave, shower, scheme, quarrel, fight. They will put their pants on just like I will do now, and go to work. They're nothing special. 

Ying & yang? ;-)

SeeYa

Tue, 01/25/2011 - 09:33 | 902177 snowball777
snowball777's picture

I think his point is that we haven't rehearsed our "Kent State" routine as recently as some other parts of the globe.

Tue, 01/25/2011 - 09:47 | 902210 Oh regional Indian
Oh regional Indian's picture

Thanks snowball. That is what I was alluding to.

NM, I'd highly recommend Dimitry Orlov. Funny, sharp and spot on. :-)

ORI

Tue, 01/25/2011 - 19:24 | 904346 nmewn
nmewn's picture

Oh, well...never mind (Gildna Radner) ;-)

Mon, 01/24/2011 - 21:05 | 900962 SheepDog-One
SheepDog-One's picture

So RainbowRader when did YOU sell your gold then? Thursday you were saying you were all long! 

Mon, 01/24/2011 - 21:08 | 900977 Spalding_Smailes
Spalding_Smailes's picture



Mozilo reached out to borrowers as part of a "little experiment" to understand the reasoning behind making only minimum payments on so-called pay-option loans, a practice that boosts the total amount due, the 67-year-old CEO told investors Wednesday in New York.

"What we're finding out is that they're pretty smart," Mozilo said. "It's like voters: Individually they're sort of idiots, but collectively they seem to make the right decisions."

 

"CEO Makes Call on Pay-Option Loans: It's Risky", from Bloomberg News.

Having depleted their savings to pay for this, they've had to seriously cut back on spending. They went without air conditioning this past summer, despite sweltering heat and the fact that Judy was eight months pregnant.

They've also put off fixing the brakes of their second car, which the mechanic says should be replaced soon. "We don't spend money on anything that isn't critical," says Judy. "Everything goes toward the mortgages."

 

"Slow-market crisis: Stuck with two homes", in Money

When buying, Miller also likes to strike quickly and he expects the same when he's selling. "I don't haggle much over the price," he admits. "I don't beat the owner up over one of the stove elements or something when I'm trying to buy a property. I'm trying to sell a condominium right now that will make me a $200,000 gain in 11 months and this buyer is dinking me around 'cause he thinks the roof might have to be replaced in a couple years. So he's gonna lose a fair deal there in the Village. Do you think I'm gonna replace the roof? If we were in a depressed market, maybe, but [I'm thinking] 'next!'"

 

"Un-Real Estate" by Jake Nichols, on Planet Jackson Hole.

 

 

Do NOT follow this link or you will be banned from the site!