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Russia Is Next In Line To Restrict Cash Transactions

Tyler Durden's picture





 

The Russians are taking a page from the Europeans book (and not a positive one for libertarians). Given the substantial criminal activity and illegal entrepreneurship in Russia - the grey and black economies account for 50–65 percent of GDP and estimates that about $50 billion was taken out of Russia illegally in 2012 alone - the great and glorious leaders have decided to impose restrictions on cash transactions. As Russia Beyond The Headlines reports, Russia may ban cash payments for purchases of more than 300,000 rubles (around $10,000) starting in 2015 - starting with a higher ($19,500) restriction in 2014. They will also enforce mandatory cash-free salary payments (cash compensation accounts for 15% of GDP currently) in an effort to both bring some of the population's 'grey' income out of the shadow; and increase the volume of cash reserves in the banks. It would appear that wherever we look now, leadership are realizing that the limits of fiscal and monetary policy have been reached and now changing rules, limiting freedom, and outright confiscation are the only way to maintain a status quo. Ironic really, when the enforcement of said rules may just be the catalyst for the end of the status quo as the middle class suffers.

 

Via Russia, Beyond The Headlines,

Russia may ban cash payments for purchases of more than 300,000 rubles (around $10,000) starting in 2015. The move is expected to boost banks’ cash reserves and put a damper on Russia’s shadow economy. However, the middle class will most likely end up having to pay the price for the scheme.

 

Moscow is looking to kill two birds with one stone: Firstly, it wants to bring some of the population’s “grey” income out of the shadow; secondly, it wants to increase the volume of cash reserves in the banks. The government’s bill will introduce the new rule to the State Duma. The document was prepared by the Ministry of Finance and approved by the government.

 

The restrictions on cash transactions will develop in two phases. In 2014, a ban on cash payments for purchases worth more than 600,000 rubles (about $19,500) will be introduced; the limit will then be halved to 300,000 rubles in 2015. Furthermore, the document introduces mandatory, cash-free, salary payments.

 

...

 

Even now, cash withdrawals on payday account for around 85 percent of all ATM transactions. Moreover, in 2005–2011, cash flows more than quadrupled. According to Bank of Russia estimates, more than 90 percent of all commodity purchases in Russia are paid for in cash.

 

The government is now trying to bring the shadow economy into the light and increase money flows into the treasury, according to Investcafe analyst Yekaterina Kondrashova. In her words, as soon as the new rules come into effect, those using unofficial wage payment schemes will encounter certain difficulties, although there could be some ways to circumvent the law.

 

The Ministry of Internal Affairs and the National Anticorruption Committee estimate the market for money laundering and cash conversions at somewhere between 3.5 and 7 trillion rubles ($113–230 billion) — about 60 percent of the Russian federal budget.

 

Rosstat reports that the volume of the shadow economy (“grey” money from tax evasion, compensations paid as “cash in envelopes” and violations of currency and foreign trade regulations) is at least 15 percent of the GDP, according to Ricom-Trust senior analyst Vladislav Zhukovsky.

 

Given the substantial criminal activity and illegal entrepreneurship, the grey and black economies account for 50–65 percent of GDP. Even former Central Bank Chief Sergey Ignatyev had to admit that about $50 billion was taken out of Russia illegally in 2012 alone.

 

There is another side to the move toward plastic, however. Cash-free payments will result in higher prices for some goods and services. The middle class will suffer the most, because the “risk group” includes property and automobile transactions. The luxury segment will also be affected, including customized tours.

 

...

 


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Thu, 03/28/2013 - 21:44 | Link to Comment Lost Wages
Lost Wages's picture

What the fuck do criminals care if they change the laws?

Thu, 03/28/2013 - 21:49 | Link to Comment knukles
knukles's picture

Only criminals will care when other than criminals make the laws.
Knuckles Theory of Equitability

Thu, 03/28/2013 - 21:50 | Link to Comment kaiserhoff
kaiserhoff's picture

You mean, Russia is about to go all Marxist, Leninist, Central Planning Idiot like Washington???

I'm so confused.

Thu, 03/28/2013 - 21:55 | Link to Comment knukles
knukles's picture

People look at RT as a viable source of news....
Nobody is shaken by their behavior versus ours anymore...
We've come a long way, baby
Jesus people. .. . How the fuck'd we wind up here?

Thu, 03/28/2013 - 22:08 | Link to Comment nmewn
nmewn's picture

Why, its almost as if the oligarchs have turned against us ;-)

Thu, 03/28/2013 - 22:11 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

Heads we win, tails you lose.

Thu, 03/28/2013 - 22:20 | Link to Comment nmewn
nmewn's picture

Nothing like a two headed coin to restore trust & confidence in their game ;-)

Thu, 03/28/2013 - 22:47 | Link to Comment erg
erg's picture

Starting in 2015?

...right

Is it me or is this prognostication hopelessly optimistic?

Thu, 03/28/2013 - 22:56 | Link to Comment nmewn
nmewn's picture

They've succeeded (so far) beyond my wildest nightmares.

Thu, 03/28/2013 - 23:43 | Link to Comment merizobeach
merizobeach's picture

"the enforcement of said rules may just be the catalyst for the end of the status quo"

Like a fist full of sand, the tighter one squeezes, the more grains that slip through.

Fri, 03/29/2013 - 02:24 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

I hope this works better than Chernobyl's controls.

Fri, 03/29/2013 - 14:15 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Chernobyl controls is melt.

Fri, 03/29/2013 - 03:15 | Link to Comment q99x2
q99x2's picture

Globalists and banksters did it. The good news is that there aren't that many of them and they are will begin turning on one another once they encounter great difficulty enforcing their wills.

Thu, 03/28/2013 - 21:44 | Link to Comment Major Major Major
Major Major Major's picture

Will work for Vodka

Thu, 03/28/2013 - 21:49 | Link to Comment kaiserhoff
kaiserhoff's picture

More like, will get out of nice warm bed, for vodka.

What is work?

Thu, 03/28/2013 - 21:51 | Link to Comment knukles
knukles's picture

Will remain comatose in nice warm bed with vodka for domestic tranquility

Thu, 03/28/2013 - 21:51 | Link to Comment kaiserhoff
kaiserhoff's picture

Will share vodka for great blow job.

Thu, 03/28/2013 - 21:55 | Link to Comment knukles
knukles's picture

Well don't look at me!

Thu, 03/28/2013 - 22:50 | Link to Comment willwork4food
willwork4food's picture

I will give you Gutta who will give you a blow job for some food and silver. There is more of Gutta than the food I request. Deal?

Fri, 03/29/2013 - 14:17 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Boris is work many year in custodial engineering and once is fall asleep to get caught. Blow job, now is look for work.

Fri, 03/29/2013 - 04:17 | Link to Comment AmCockerSpaniel
AmCockerSpaniel's picture

My salary covers attendance, all work is extra.

Thu, 03/28/2013 - 23:33 | Link to Comment Bold Eagle
Bold Eagle's picture

You reminded me of this Russian anekdot.

Q: What is Russian business model?

A: Steal a case of vodka, sell it and spend all money on booze.

Thu, 03/28/2013 - 23:51 | Link to Comment Godisanhftbot
Godisanhftbot's picture

old newz

Fri, 03/29/2013 - 04:14 | Link to Comment Debugas
Debugas's picture

you can not even imagine how popular this currency iactually is and how widely used it is in the countryside in russia

Fri, 03/29/2013 - 12:32 | Link to Comment thisandthat
thisandthat's picture

In soviet Russia, vodka will work for you!

Thu, 03/28/2013 - 22:35 | Link to Comment AlaricBalth
AlaricBalth's picture

From the Federal Reserve Bank of St. Louis. It's a bit dated, 1999, but it offers a concise insight concerning capital controls. It's conclusions are as follows. I am certain this is one Fed paper that will soon be lost in the junk folder.

"In reality, capital controls rarely have been imposed in a well-thought-out way to correct clearly defined pre-existing distortions. Instead, capital controls most often have been used as a tool to postpone difficult decisions on monetary and fiscal policies.

The consensus of the research on capital controls has been that they can alter the composition of capital flows or drive a small, permanent wedge between domestic and offshore interest rates but they cannot indefinitely sustain inconsistent policies, and their effectiveness tends to erode over time as consumers and firms become better at evading the controls (Marston, 1995). Outflow restrictions, in particular, may buy breathing space, but that is all."

https://research.stlouisfed.org/publications/review/99/11/9911cn.pdf

Thu, 03/28/2013 - 22:51 | Link to Comment Yen Cross
Yen Cross's picture

 Thanks. Appreciate you taking the time to forward the link AlaricBalth. I'm off to get some sleep, but it's bookmarked.

  You realize how dovish the St. Louis fed is?

https://research.stlouisfed.org/publications/review/99/11/9911cn.pdf

Thu, 03/28/2013 - 22:53 | Link to Comment knukles
knukles's picture

I got a feeling all them folks at FedStLouis gonna be declared threats to the state for thinking and sent off to a long term learning camp in mountainous southern Baluchistan somewhere.

Thu, 03/28/2013 - 22:55 | Link to Comment Yen Cross
Yen Cross's picture

  lulz. Rock on Knuks  ;-D

Fri, 03/29/2013 - 03:12 | Link to Comment Manthong
Manthong's picture

1. Currency controls are a risky, stopgap measure, but some gaps desperately need to be stopped.
—Paul Krugman, “Free Advice:,  A Letter to Malaysia’s Prime Minister,” Fortune, September 28, 1998.

2. “One of the architects of those articles, John Maynard Keynes, was a strong proponent of capital controls and the IMF often was seen as such during its early years.”

"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.... “The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose."

Economic Consequences of the Peace, 1920
https://research.stlouisfed.org/publications/review/99/11/9911cn.pdf
http://www.knology.net/~bilrum/keynes.htm

http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=303

-if any of this is true, it is just too freaking bizarre.

 

 

Thu, 03/28/2013 - 21:46 | Link to Comment kliguy38
kliguy38's picture

 

Well..........that didn't take long

Thu, 03/28/2013 - 21:47 | Link to Comment howenlink
howenlink's picture

Learning to weave bacon.

Thu, 03/28/2013 - 21:50 | Link to Comment Number 156
Number 156's picture

Can you hear that noise?

That's the Shit hitting the fan.

Thu, 03/28/2013 - 22:35 | Link to Comment wee-weed up
wee-weed up's picture

Yep, and it's splashing across borders everywhere!

Thu, 03/28/2013 - 22:30 | Link to Comment CPL
CPL's picture

LOL.

 

The end result isn't what anyone believes it will be.

 

Everyone betrayed.  No body wins.  Now because of the decisions made all die.  Sorry humans, the future is written in pencil until you figure it out.  Don't bother with the holes inthe mountains either.  Enjoy the methane you pricks...screw us, we screw you.  Give us back our friends assholes. or you lose alot on monday again.   Assholes keep friend in lock up...well, assad is dead as a bag of rocks.  We wre betrayed.  You are next.

Let our friends go.  all of them.

Thu, 03/28/2013 - 21:57 | Link to Comment FLUSA.com
FLUSA.com's picture

Did Putin clear this with the mafia?

Thu, 03/28/2013 - 22:10 | Link to Comment nmewn
nmewn's picture

Yes.

Thu, 03/28/2013 - 22:36 | Link to Comment wee-weed up
wee-weed up's picture

Pooti-Poot ALWAYS wins!

Fri, 03/29/2013 - 00:39 | Link to Comment Lore
Lore's picture

"I looked the man in the eye. I was able to get a sense of his soul." - GWB, June 2001

Fri, 03/29/2013 - 00:00 | Link to Comment eXMachina
eXMachina's picture

Yes, he sent the memo to himself and CC to the Fed!

Thu, 03/28/2013 - 21:59 | Link to Comment Professorlocknload
Professorlocknload's picture

Again. The game is changing,

They are going to do it Bercrankers way.

http://www.businessinsider.com/trucks-carry-cash-for-cypriot-banks-2013-...

Thu, 03/28/2013 - 22:04 | Link to Comment CheapBastard
CheapBastard's picture

These laws are like gun control...only affects the law abiding citizens...the Small Fries. Criminals by definition don't care what the law states.

Thu, 03/28/2013 - 22:16 | Link to Comment nmewn
nmewn's picture

I've been going in this direction.

When the law abiding are made criminals by the law, all is criminal.

Fri, 03/29/2013 - 07:17 | Link to Comment disabledvet
disabledvet's picture

"as all exist for solely for entertainment purposes now." how ironic that what needs to be banned is cash. Since it can't be done via inflation "we now will proceed the old fashioned way by banning cash transactions." wow...we all must be too rich. This increases the cash reserves in banks? So the money is more easily stolen?

Thu, 03/28/2013 - 22:07 | Link to Comment johngaltfla
johngaltfla's picture

Good news. We have an old fashioned PIIGS story not involving a geography pop quiz for the uninitiated! For once Russia is not involved even though it is SSDD....

 

An Old Fashioned PIIGS story as Portugal Mises Deficit Targets Again
Thu, 03/28/2013 - 22:17 | Link to Comment knukles
knukles's picture

Where is Piigs?

Thu, 03/28/2013 - 23:24 | Link to Comment Hulk
Hulk's picture

Upside down in a chinese river without a paddle...

Fri, 03/29/2013 - 13:01 | Link to Comment thisandthat
thisandthat's picture

Long toxic-waste seasoned bacon!

Fri, 03/29/2013 - 12:57 | Link to Comment thisandthat
thisandthat's picture

Missed deficits? Pfff... as if that was news... Constitutional Tribunal is (finally) about to deliver it's ruling on the constitutionality of current national budget - if it's anything as the previous (2012), now that will be news...

Thu, 03/28/2013 - 22:12 | Link to Comment johnnynaps
johnnynaps's picture

No cash? time for barter! 

Thu, 03/28/2013 - 22:45 | Link to Comment NoWayJose
NoWayJose's picture

Barter is the Greek way...

Thu, 03/28/2013 - 22:13 | Link to Comment fonzannoon
fonzannoon's picture

as i mentioned the other day. look around in the US. How many retailers etc. don't accept $50 and $100 bills. this truly is a global economy now. these assholes are doing all this in sync. No coincidence.

Thu, 03/28/2013 - 22:44 | Link to Comment NoWayJose
NoWayJose's picture

You can't have 50's or 100's in your bug out bag. You'll need nothing larger than 20's to go along with your gold and silver coins.

Fri, 03/29/2013 - 00:25 | Link to Comment akak
akak's picture

Well, how many, in actuality?

I have never myself encountered a single merchant who would not accept a $50 or $100 bill, and I routinely use both denominations.

Fri, 03/29/2013 - 07:27 | Link to Comment fonzannoon
fonzannoon's picture

akak by me several. Including a few big ones. They all gave the same reason. Counterfiets...

I can't upload pics on here can I? I would take a picture this am of the place I am going to...

Thu, 03/28/2013 - 22:18 | Link to Comment babkjl
babkjl's picture

Can't resist:  Bitcoins users unaffected!

Thu, 03/28/2013 - 22:28 | Link to Comment nmewn
nmewn's picture

Until someone trips over a cord.

Sorry, couldn't resist ;-)

Fri, 03/29/2013 - 09:04 | Link to Comment de3de8
de3de8's picture

Good one newness, tks 4 laugh.

Thu, 03/28/2013 - 22:45 | Link to Comment Professorlocknload
Professorlocknload's picture

State to DHS Tower, come in DHS.

DHS....Janet "Cuddles" Napolitano here

John "Longface" Kerry on this end. Bit coin alert, bit coin alert....coordinates ZH, sector babkjl.

Fire mission. Fire mission Fire mission.

Cuddles here, affirmed, drones launched.

Longface to Cuddles, misssion sucessful, keyboard smoked, job well done...how 'bout dinner?

Your place or mine...

Thu, 03/28/2013 - 23:37 | Link to Comment merizobeach
merizobeach's picture

Alright, your disclosure, please: how deep in it are you?  And how much are jizzing yourself on this run-up?  http://preev.com/

Disclosure: got none; won't get any until after it crashes again to under twenty, or ten, and maybe still not then or ever.

Don't need it or want it, why should I get it?

I can count my savings with my computer turned off.

Fri, 03/29/2013 - 06:21 | Link to Comment pcrs
pcrs's picture

http://www.oditorium.com/ou/2013/03/are-bitcoins-anonymous-not-really/

the rulers can track your ass from behind their computers. We see you made so much bit coins, we want our cut or else we throw you in jail.

Thu, 03/28/2013 - 22:44 | Link to Comment knukles
knukles's picture

OT for fun.
So I've recently been in Hawaii on vacation. And in my inimitable way, I notice serious shit others miss... Or ignore.. Whatever
A lot of Hawaiian words sound like multiple repeated syllables... Mookamookahubbahubliani kinda stuff.
And so this waitress asks us how our lunch is and I'm having a burger. I couldn't resist. "Now this is one good burger!" And my kids are going berserk trying not to laugh getting the Pulp Fiction line when Jules is tormenting whazziiz name asking him what Marcellus Wallace looks like. And my son sushess me when I'm ready to ask if its a Big Kahuna burger.
So any how, what with the repetitious vowel and syllable sounds I suggested that the movie line be dubbed for Hawaiian to be "Say say what what again motherfucker fucker"
My kids were crying laughing
Ah, all in a days correction of mans errors and proper perspectives

Thu, 03/28/2013 - 22:52 | Link to Comment nmewn
nmewn's picture

Jules: Mookamookahubbahubliani, how we doin, baby?

Mooki: I gotta go pee! I want to go home.

Jules: Just hang in there, baby, you're doing' great, Ringo's proud of you and so am I.  It's almost over.

(Jules to Pumpkin)
Now I want you to go in that bag and find my wallet.

Pumpkin: Which one is it?

Jules: It's the one that says Bad Motherfucker on it.

Thu, 03/28/2013 - 22:55 | Link to Comment inevitablecollapse
inevitablecollapse's picture

love that part and how matter of factly 'bad motherfucker' rolls off of SLJ's tongue

Thu, 03/28/2013 - 23:27 | Link to Comment knukles
knukles's picture

Oh man....
This is spooky. Right after that my son started talking about the exact same scene with the "bad motherfucker" billfold...
Next Ill probably be enveloped in a scalar dome shield for my own protection

Thu, 03/28/2013 - 22:27 | Link to Comment dark pools of soros
dark pools of soros's picture

I think Putin is only talking about the dirty jew cash

Thu, 03/28/2013 - 23:20 | Link to Comment W74
W74's picture

Putin is a patriot.  The only thing stopping him from making Russia into the greatest country on the planet are the "Russian" Mafia (hehe, not really) and Oligarchs.  The lines blur quite a bit, and almost all are part of the pathologic victim-complex-driven tribe that seeks to (quite hypocritically) oppress everyone else.  I hope more than a few joos come down with a nice case of the Polonium.  No vaccine for that one, or so I hear.

Fri, 03/29/2013 - 08:02 | Link to Comment NotApplicable
NotApplicable's picture

Putin is merely a better actor than the rest. Almost makes government look legitimate.

Thu, 03/28/2013 - 22:28 | Link to Comment TheProphet
TheProphet's picture

Sorry for hijacking, but does anyone, including the Tylers have an explanation for the parabola that appeared in the gold spot chart late this afternoon? Follow the green line.

http://www.kitco.com/charts/livegold.html

Thu, 03/28/2013 - 22:45 | Link to Comment Room 101
Room 101's picture

Check silver out too.  Strange stuff. 

Thu, 03/28/2013 - 23:03 | Link to Comment Melin
Melin's picture

BrotherJohn noted that silver lost 50 cents after the market closed on zero volume.

 

http://www.brotherjohnf.com/wp-content/uploads/SILVER32813.jpg

Fri, 03/29/2013 - 03:21 | Link to Comment coatofarms
coatofarms's picture

There was 1 dollar bid ask spread in netdania website since the market close. So i am guessing something is messed up and the data is not reliable. and the volume seems to be tick volume based on changes to the bid or ask  which are completely useless indicators with 1 dollar spread.  

However in bullionvault.com, london prices are 28.43 - 28.55, the spread is not tight but reasonable. where some trades can happen.

 

Fri, 03/29/2013 - 00:51 | Link to Comment SubjectivObject
SubjectivObject's picture

eigenvalue's homeboy group is throwin the free benny bucks at the situation.

Up or down does'nt matter, they just wanna phuk widit.

Thu, 03/28/2013 - 22:35 | Link to Comment Lordflin
Lordflin's picture

.

Thu, 03/28/2013 - 22:36 | Link to Comment scatterbrains
scatterbrains's picture

but what will become of the Florida real estate boom now ?

Thu, 03/28/2013 - 22:38 | Link to Comment wee-weed up
wee-weed up's picture

Surely, you must be listening to the MSM!

Thu, 03/28/2013 - 22:43 | Link to Comment AlaricBalth
AlaricBalth's picture

Short Sunny Isles condos. I'm sure JPM has a synthetic asset backed derivative index for that.

Thu, 03/28/2013 - 22:45 | Link to Comment knukles
knukles's picture

Is Florida taking off again?
Boyah!

Thu, 03/28/2013 - 22:57 | Link to Comment Professorlocknload
Professorlocknload's picture

scatter  " but what will become of the Florida real estate boom now?"

The flippin realtors get dumped...on,

https://www.youtube.com/watch?v=MmVMrwk4i3w

Thu, 03/28/2013 - 23:15 | Link to Comment W74
W74's picture

Krasnodar, nice little backwater and probably a better place to raise a family than most places in the USSA.

Thu, 03/28/2013 - 22:44 | Link to Comment lolmao500
lolmao500's picture

Bullish :

"Increased activity" at North Korea's mid to long range missile sites, reports South Korea's Yonhap news agency RT Reuters

Thu, 03/28/2013 - 22:47 | Link to Comment knukles
knukles's picture

I'm getting a chubby!

Thu, 03/28/2013 - 22:58 | Link to Comment lolmao500
lolmao500's picture

Even more bullish :

http://www.kfyrtv.com/News_Stories.asp?news=62905

Nearly 200 airmen and 6 B-52s from the Minot Air Force Base are deploying to Guam tomorrow.

I hope they have tactical nukes aboard these because 6 won't be able to stop 1 million troops and 15 000 artillery tubes pounding Seoul quickly enough.

I REALLY hope SKorea or Obama has enough balls to BOMB NKorea's missile sites if they start fueling them...

Thu, 03/28/2013 - 23:22 | Link to Comment lolmao500
lolmao500's picture

Even MORE bullish... if that's possible...

http://t.co/Wo1mRKZpWx

In the background, it shows NKorea target map... Southwest California (San Diego, LA), DC, NY, Hawaii... prepare yourselves...

Thu, 03/28/2013 - 23:35 | Link to Comment inevitablecollapse
inevitablecollapse's picture

i laughed my ass off when i saw that map - pure propaganda.  if you notice, those are straight line distances, surely their planners know the great circle route would be a shorter distance and flight time???

Thu, 03/28/2013 - 23:56 | Link to Comment lolmao500
lolmao500's picture

Well how do you draw that on a 2d map?

Thu, 03/28/2013 - 23:23 | Link to Comment AlaricBalth
AlaricBalth's picture

Just relax knuks, and take a cold shower. You're probably having a delayed reaction to keiserhoff's earlier offer.
;-) (Couldn't resist)

Thu, 03/28/2013 - 23:48 | Link to Comment knukles
knukles's picture

Nah, that was right away!

Fri, 03/29/2013 - 00:08 | Link to Comment eXMachina
eXMachina's picture

This could be the black swan insiders have been prepping for?!

Thu, 03/28/2013 - 22:51 | Link to Comment scatterbrains
scatterbrains's picture

These bitchez bednot start no shit before I get my  ebay trinkets in the mail.. fuckers

Thu, 03/28/2013 - 22:54 | Link to Comment inevitablecollapse
inevitablecollapse's picture

NK typically likes to push buttons to get more attention, bring the US, ROK, etc. to the table for discussions on sanctions - this has a different feel to it with the seed of kim jong il at the helm.  Could also all be part of the 'plan'...

Thu, 03/28/2013 - 23:02 | Link to Comment lolmao500
lolmao500's picture

Well usually, SKorea and the US bows down to their threats... but this time, no... so either NKorea will back down real soon... or shit will go down... and considering the SKorea/US retaliation plan... it has big chances of exploding into a full scale war.

Thu, 03/28/2013 - 23:22 | Link to Comment inevitablecollapse
inevitablecollapse's picture

missiles alone won't win a war alone - they have 10s of thousands of guys waiting to pour through tunnels and conduct clandestine landings in mini-subs, etc.

Thu, 03/28/2013 - 23:26 | Link to Comment lolmao500
lolmao500's picture

Yep. Pentagon's best case scenario : 1 million dead. Several months of war. And that is without nukes, chemicals or biological weapons being used... and if NKorea isn't helped by China... And usually, war predictions are totally wrong... meaning it will be much worse than 1 million dead and more than months of war.

Fri, 03/29/2013 - 03:56 | Link to Comment Rogue Trooper
Rogue Trooper's picture

I think Apple have created a strategic alliance with the Norks and have been cunningly financing Kim (Jnr) dreams of glory.  Finally Cuppertino can stop the Samsung Galaxy 4 before they can land the final blow and they become the new RIM.

As said earlier it has to be bullish, in particular, for AAPL.

Disclaimer... I have lost it and nothing makes sense anymore :P

Fri, 03/29/2013 - 03:44 | Link to Comment MarcusLCrassus
MarcusLCrassus's picture

Like Iran, any offensive action that NKorea takes will mean that the entire country will then be annihilated by the US.  Its basically like committing suicide and they must know this, so either they are suicidal or they just dont give a damn. 

Thu, 03/28/2013 - 22:59 | Link to Comment booboo
booboo's picture

must stop entrepreneurs and their evil diabolical plans to live free.

Thu, 03/28/2013 - 23:06 | Link to Comment booboo
booboo's picture

duplicate

Thu, 03/28/2013 - 23:17 | Link to Comment Curt W
Curt W's picture

The more governments try to contol every aspect of an economy, the more people try to avoid this control, barter is the new exchange as people lose faith in fiat.  I have seen much more frequent deals of trade services than trade greenbacks in the last two years.

Thu, 03/28/2013 - 23:55 | Link to Comment honestann
honestann's picture

So much for Russians being "good guys".

Fri, 03/29/2013 - 08:11 | Link to Comment Winston of Oceania
Winston of Oceania's picture

It is not the "Russians" per se, just their oligarchy acting to curb their freedoms. Nothing has changed the whole world over since the flags of Rome flew over most of the known world. Always remember; kick a collectivist whenever possible or be impoverished for the greater good. For the good of the oligarchy that is...

Thu, 03/28/2013 - 23:56 | Link to Comment dunce
dunce's picture

Illegal entrepeneurship is an oxymoron, the answer is more liberty, not less.

Fri, 03/29/2013 - 00:06 | Link to Comment hooligan2009
hooligan2009's picture

there was me thinking it was just the criminal fraternity in china sending their wives, daughters and grandmas over to the US to buy up california and silicon valley

Fri, 03/29/2013 - 00:16 | Link to Comment Kreditanstalt
Kreditanstalt's picture

"...the volume of the shadow economy (“grey” money from tax evasion, compensations paid as “cash in envelopes” and violations of currency and foreign trade regulations) is at least 15 percent of the GDP..."

That's 15% more financial privacy and real capitalism than we have...!

Fri, 03/29/2013 - 00:18 | Link to Comment Seize Mars
Seize Mars's picture

Russia, what a fuckin' joke. What I mean is, I believe, and I don't think this thought is far-out anymore, that the entirety of the cold war was a big fat fucking sham - a hoax.

Furthermore, when "Phase II" or whatever is supposed to be enacted, that is, the permanent and utter downfall of the US, it needed to be shown that the USSR had moved toward the center. Hence the engineered collapse of the USSR, like building 7.

So it goes like this:

1) Phoney Cold War, for various purposes, take your pick - of course military industrial complex profits are a good place to start. Also a way to effectivly divide any possibility of Europe getting pipelines into the middle east.

2) The USA must be destroyed, so first off communism needs to be discredited. Hence the engineered collapse of the USSR. Whee! Look! It's all capitalist now!

3) By comparison, the communization of the USA can no longer be compared to the status quo in USSR. So now we have a police state that would make the Stasi envious. Amazing.

4) The war on terror, that is the stated purpose of the behind the police state in America, is also the current primary tool to lock the Spice in the middle east.

5) Europeans will be first to have their currency collapse. The US PetroDollar is then the hot stuff, so dollar assets will be bid like never before - so Uncle Sam can sell bonds ike there is no tomorrow. Of course the strong dollar will ignite the final USD hyperinflation.

The fuse is lit. The fractional non-reserve bomb is almost ready to blow. And it will blow, baby - it will BLOW.

Fri, 03/29/2013 - 00:31 | Link to Comment IamtheREALmario
IamtheREALmario's picture

The obvioud conclusion is that the Russians are in collusion with the BIS/ECB/IMF banking empire ... otherwise, they would thumb their noses at the stupid westerners and their games.

Fri, 03/29/2013 - 00:44 | Link to Comment Seize Mars
Seize Mars's picture

mario

Correct.

Fri, 03/29/2013 - 01:35 | Link to Comment Monedas
Monedas's picture

Capital controls .... to discourage gold buying ?  If gold is in your future .... this would be a good time .... to .... BTFD !  The new Pope is a weenie .... let's see him give all Falkland islanders sponge baths ?

Fri, 03/29/2013 - 01:47 | Link to Comment lolmao500
lolmao500's picture

media: Vehicles seen moving to Tongchang-ri missile site in in what seems like prep for long-range missile test.

Yeah ``missile test`` uh??

Fri, 03/29/2013 - 02:18 | Link to Comment The Heart
The Heart's picture

A report from Peter Schiff with Greg here.

http://www.youtube.com/watch?feature=player_embedded&v=knJpAVNlW3Y

Fri, 03/29/2013 - 02:18 | Link to Comment The Heart
Fri, 03/29/2013 - 03:40 | Link to Comment MarcusLCrassus
MarcusLCrassus's picture

This is like waiving a big red flag and telling everyone in the country to take all but a few thousand dollars out of your bank accounts. 

Fri, 03/29/2013 - 03:44 | Link to Comment AnAnonymous
AnAnonymous's picture

But, but, but... Capital controls were supposed to come anywhere else before they come in Russia, following this site. Has Russia joined the EMU zone somehow between the time when they were sold as the new temple for 'american' beliefs and that piece of news?

Speaking of 'americanism', apparently, the Russians must deal with a severe crisis of 'americanism' on their turf

Lets see: shadow economy, ticked, flight of capital (if you cant beat them, join them, apparently, a lot of 'american' russians prefer to sell their country to buy themselves a future in more established 'american' areas), illegal entrepreneurial endeavours, ticked, looks like Russia has a much desired 'american' middle class surge.

Time for the political personal to take account of that massive change, because in 'american' societies, the 'american' middle class is the King class.

Fri, 03/29/2013 - 04:59 | Link to Comment Debugas
Debugas's picture

for you information - cash transactions long ago have upper limit in many EU countries. This is old news. Russia is actually behind many others.

It is supposed to limit grey/shadow economy. In the not so distant future all cash transactions will become illegal

Fri, 03/29/2013 - 07:10 | Link to Comment Svendblaaskaeg
Svendblaaskaeg's picture

yes, as I posted below

Fri, 03/29/2013 - 07:42 | Link to Comment AnAnonymous
AnAnonymous's picture

That is saying that Russia was the last place on Earth for capital controls to come.

Because you look the other way when you predict who is going to be next on the list.

That other places had already capital control does not remove the fact that when predicting where capital control is coming next, Russia was not mentioned.

Fri, 03/29/2013 - 11:09 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Applying walrusian economics propagangnam-style, AnAnonymous said:

That other places had already capital control does not remove the fact that when predicting where capital control is coming next, Russia was not mentioned.

Non sequiturd.

What is the issue with selling cheap Chinese citizenism propaganda that might not be operational in a decades for the buyers? That is the buyers' issue?

By the way, the new Chinese Citizenism Communautist Party paradigm will be to run deficitis in good times (to fatten the soon to be extorted) and then run austerity programs in harsh times (to throw the dead pigs in the river).

Fri, 03/29/2013 - 05:31 | Link to Comment theprofromdover
theprofromdover's picture

Guess that prolongs the use of the dollar as reserve currency then.

Everyone will pay in greenbacks.

Fri, 03/29/2013 - 06:10 | Link to Comment BlackDouglas
BlackDouglas's picture

Perhaps this is being done in anticipation of the end game re: competitive devaluation. If there is a sudden and ultimate race to the bottom then Russians are going to want to get their money out in a hurry. The Russian authorities may be shoring the economy up in expectation of the last great currency battle?

Fri, 03/29/2013 - 06:18 | Link to Comment pcrs
pcrs's picture

We are to be slaves for the elites everywhere.

Fri, 03/29/2013 - 06:32 | Link to Comment buzzsaw99
buzzsaw99's picture

Russia knows how to treat billionaires (take their money and watch them cry). In the usa billionaires don't even try to hide the fact that they run the show and own everyone.

Fri, 03/29/2013 - 08:46 | Link to Comment Winston of Oceania
Winston of Oceania's picture

Who will take Vlads money? Russia only knows which oligarch is in charge and nothing more.

Fri, 03/29/2013 - 06:33 | Link to Comment Apostate2
Apostate2's picture

I have had to imbibe Vodka martinis. Yuk. The Gin has run out. So, again I speculate. The NK and Iran

are pushing for their side in desperation. Double vision but the Syrian situation has to fall into place before the debacle.I have no more to say except: this is the time to honour our redemption.

Pax

prolibertate eos occublisse


Fri, 03/29/2013 - 06:49 | Link to Comment optionsman
optionsman's picture

they are just trying to enforce the tax laws. positive.

Fri, 03/29/2013 - 06:56 | Link to Comment Svendblaaskaeg
Svendblaaskaeg's picture

"...ban cash payments for purchases of more than 300,000 rubles (around $10,000)..."

that's nuttin, in Denmark the new cash limit (2013) is Dkr. 10.000 - about USD 1.600

Up to year 2012 it was Dkr. 100.000

Fri, 03/29/2013 - 07:38 | Link to Comment goldenbuddha454
goldenbuddha454's picture

The deposit confiscation and capital controls genie is out of the bottle. 

Fri, 03/29/2013 - 08:12 | Link to Comment Winston of Oceania
Winston of Oceania's picture

Next comes trade wars or just plain old war?

Fri, 03/29/2013 - 08:10 | Link to Comment Quinvarius
Quinvarius's picture

The bankers are vainly doing everything they can to make you keep money in their dead banks as the runs start.  Remember that stuff about the number of the beast?  Can't buy or sell without some digits?  It looks like they want to make sure you cannot buy or sell without using your check card number.

When they announce paper cash is now worthless and you must use digital money, people will understand why they needed gold.  That kind of control directed at only supporting banks will end the economy and society.

Fri, 03/29/2013 - 13:47 | Link to Comment gnomon
gnomon's picture

They won't try to confiscate gold and silver.  You will just wake up one morning and find out it is illegal for a private citizen to buy or sell gold or silver, (except for jewelry which will have a mandated percentage of adulteration with other metals so as to lessen its appeal as an escape hatch).

Eventually there will be no rational reason not to resist in a violent manner.

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