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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 | 3387527 Lost Wages
Lost Wages's picture

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

Thu, 03/28/2013 - 21:49 | 3387536 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 | 3387543 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 | 3387550 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 | 3387574 nmewn
nmewn's picture

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

Thu, 03/28/2013 - 22:11 | 3387578 12ToothAssassin
12ToothAssassin's picture

Heads we win, tails you lose.

Thu, 03/28/2013 - 22:20 | 3387600 nmewn
nmewn's picture

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

Thu, 03/28/2013 - 22:47 | 3387654 erg
erg's picture

Starting in 2015?


Is it me or is this prognostication hopelessly optimistic?

Thu, 03/28/2013 - 22:56 | 3387671 nmewn
nmewn's picture

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

Thu, 03/28/2013 - 23:43 | 3387734 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 | 3387877 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 | 3388961 Boris Alatovkrap
Boris Alatovkrap's picture

Chernobyl controls is melt.

Fri, 03/29/2013 - 03:15 | 3387891 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 | 3387530 Major Major Major
Major Major Major's picture

Will work for Vodka

Thu, 03/28/2013 - 21:49 | 3387539 kaiserhoff
kaiserhoff's picture

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

What is work?

Thu, 03/28/2013 - 21:51 | 3387540 knukles
knukles's picture

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

Thu, 03/28/2013 - 21:51 | 3387546 kaiserhoff
kaiserhoff's picture

Will share vodka for great blow job.

Thu, 03/28/2013 - 21:55 | 3387551 knukles
knukles's picture

Well don't look at me!

Thu, 03/28/2013 - 22:50 | 3387657 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 | 3388968 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 | 3387936 AmCockerSpaniel
AmCockerSpaniel's picture

My salary covers attendance, all work is extra.

Thu, 03/28/2013 - 23:33 | 3387725 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 | 3387747 Godisanhftbot
Godisanhftbot's picture

old newz

Fri, 03/29/2013 - 04:14 | 3387934 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 | 3388658 thisandthat
thisandthat's picture

In soviet Russia, vodka will work for you!

Thu, 03/28/2013 - 22:35 | 3387622 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."

Thu, 03/28/2013 - 22:51 | 3387655 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?

Thu, 03/28/2013 - 22:53 | 3387662 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 | 3387670 Yen Cross
Yen Cross's picture

  lulz. Rock on Knuks  ;-D

Fri, 03/29/2013 - 03:12 | 3387889 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

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



Thu, 03/28/2013 - 21:46 | 3387535 kliguy38
kliguy38's picture


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

Thu, 03/28/2013 - 21:47 | 3387537 howenlink
howenlink's picture

Learning to weave bacon.

Thu, 03/28/2013 - 21:50 | 3387538 Number 156
Number 156's picture

Can you hear that noise?

That's the Shit hitting the fan.

Thu, 03/28/2013 - 22:35 | 3387628 wee-weed up
wee-weed up's picture

Yep, and it's splashing across borders everywhere!

Thu, 03/28/2013 - 22:30 | 3387552 CPL
CPL's picture



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 | 3387554's picture

Did Putin clear this with the mafia?

Thu, 03/28/2013 - 22:10 | 3387576 nmewn
nmewn's picture


Thu, 03/28/2013 - 22:36 | 3387632 wee-weed up
wee-weed up's picture

Pooti-Poot ALWAYS wins!

Fri, 03/29/2013 - 00:39 | 3387809 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 | 3387749 eXMachina
eXMachina's picture

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

Thu, 03/28/2013 - 21:59 | 3387558 Professorlocknload
Professorlocknload's picture

Again. The game is changing,

They are going to do it Bercrankers way.

Thu, 03/28/2013 - 22:04 | 3387564 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 | 3387593 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 | 3388023 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 | 3387569 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 | 3387592 knukles
knukles's picture

Where is Piigs?

Thu, 03/28/2013 - 23:24 | 3387718 Hulk
Hulk's picture

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

Fri, 03/29/2013 - 13:01 | 3388739 thisandthat
thisandthat's picture

Long toxic-waste seasoned bacon!

Fri, 03/29/2013 - 12:57 | 3388716 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 | 3387581 johnnynaps
johnnynaps's picture

No cash? time for barter! 

Thu, 03/28/2013 - 22:45 | 3387645 NoWayJose
NoWayJose's picture

Barter is the Greek way...

Thu, 03/28/2013 - 22:13 | 3387586 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 | 3387642 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 | 3387794 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 | 3388009 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 | 3387596 babkjl
babkjl's picture

Can't resist:  Bitcoins users unaffected!

Thu, 03/28/2013 - 22:28 | 3387617 nmewn
nmewn's picture

Until someone trips over a cord.

Sorry, couldn't resist ;-)

Fri, 03/29/2013 - 09:04 | 3388208 de3de8
de3de8's picture

Good one newness, tks 4 laugh.

Thu, 03/28/2013 - 22:45 | 3387643 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 'bout dinner?

Your place or mine...

Thu, 03/28/2013 - 23:37 | 3387728 merizobeach
merizobeach's picture

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

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 | 3387994 pcrs
pcrs's picture

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 | 3387611 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 | 3387660 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 | 3387672 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 | 3387676 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 | 3387612 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 | 3387711 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 | 3388074 NotApplicable
NotApplicable's picture

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

Thu, 03/28/2013 - 22:28 | 3387613 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.

Thu, 03/28/2013 - 22:45 | 3387646 Room 101
Room 101's picture

Check silver out too.  Strange stuff. 

Thu, 03/28/2013 - 23:03 | 3387682 Melin
Melin's picture

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

Fri, 03/29/2013 - 03:21 | 3387895 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, 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 | 3387821 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 | 3387625 Lordflin
Lordflin's picture


Thu, 03/28/2013 - 22:36 | 3387629 scatterbrains
scatterbrains's picture

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

Thu, 03/28/2013 - 22:38 | 3387634 wee-weed up
wee-weed up's picture

Surely, you must be listening to the MSM!

Thu, 03/28/2013 - 22:43 | 3387640 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 | 3387649 knukles
knukles's picture

Is Florida taking off again?

Thu, 03/28/2013 - 22:57 | 3387675 Professorlocknload
Professorlocknload's picture

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

The flippin realtors get dumped...on,

Thu, 03/28/2013 - 23:15 | 3387706 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 | 3387641 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 | 3387652 knukles
knukles's picture

I'm getting a chubby!

Thu, 03/28/2013 - 22:58 | 3387674 lolmao500
lolmao500's picture

Even more bullish :

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 | 3387717 lolmao500
lolmao500's picture

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

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

Thu, 03/28/2013 - 23:35 | 3387726 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 | 3387759 lolmao500
lolmao500's picture

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

Thu, 03/28/2013 - 23:23 | 3387716 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 | 3387740 knukles
knukles's picture

Nah, that was right away!

Fri, 03/29/2013 - 00:08 | 3387776 eXMachina
eXMachina's picture

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

Thu, 03/28/2013 - 22:51 | 3387659 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 | 3387667 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 | 3387683 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 | 3387714 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 | 3387722 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 | 3387915 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 | 3387906 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 | 3387679 booboo
booboo's picture

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

Thu, 03/28/2013 - 23:06 | 3387681 booboo
booboo's picture


Thu, 03/28/2013 - 23:17 | 3387707 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 | 3387756 honestann
honestann's picture

So much for Russians being "good guys".

Fri, 03/29/2013 - 08:11 | 3388082 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 | 3387758 dunce
dunce's picture

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

Fri, 03/29/2013 - 00:06 | 3387772 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 | 3387786 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 | 3387791 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 | 3387801 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 | 3387812 Seize Mars
Seize Mars's picture



Fri, 03/29/2013 - 01:35 | 3387851 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 | 3387860 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 | 3387870 The Heart
The Heart's picture

A report from Peter Schiff with Greg here.

Fri, 03/29/2013 - 02:18 | 3387872 The Heart
Fri, 03/29/2013 - 03:40 | 3387903 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 | 3387905 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 | 3387954 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 | 3388020 Svendblaaskaeg
Svendblaaskaeg's picture

yes, as I posted below

Fri, 03/29/2013 - 07:42 | 3388036 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 | 3388499 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 | 3387968 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 | 3387989 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 | 3387991 pcrs
pcrs's picture

We are to be slaves for the elites everywhere.

Fri, 03/29/2013 - 06:32 | 3388000 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 | 3388175 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 | 3388001 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.


prolibertate eos occublisse

Fri, 03/29/2013 - 06:49 | 3388008 optionsman
optionsman's picture

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

Fri, 03/29/2013 - 06:56 | 3388012 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 | 3388034 goldenbuddha454
goldenbuddha454's picture

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

Fri, 03/29/2013 - 08:12 | 3388089 Winston of Oceania
Winston of Oceania's picture

Next comes trade wars or just plain old war?

Fri, 03/29/2013 - 08:10 | 3388080 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 | 3388873 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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