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Ukrainian Overnight Rates Spike To 20% As Bank Liquidity Fears Soar
As opposition party offices are raided and streets continue to fill with protesters, the "precarious" funding sitaution in the nation is beginning to flash red as interbank lending rates spike to 20%. Banks, clearly concerned about their own and each other's liquidity in the face of potential deposit runs (and the accompanying counterparty risk) and huge demand for liquidity. The hryvnia is falling and bond yields are rising but it is the spike in KievPrime overnight rates that is most concerning - and policy-makers have little room to help.
Chart: Bloomberg
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time for the economic hitmen to work in concert with the western ngos.
Looks like the hitmen just hit you.
It's over. Ring the bell. Time for new government.
thankfully I'm dressed in my ballistic burqa. Either way, like any good grand mal seizure, the faltering and failure of decades of western foreign policy meddling and boobery won't go out without some theatrics.
Bank failures and depositor bail-ins in 5...4...3...2...1...
I was born in Sumy, Ukraine. Ukranians (3/4 of the population) should go with Europe and let ethnic Russians split. The problem is that the majority of ethnic Russians don't want to "join" the Russian empire. Yes I'm prejudiced but the vast majority of countrymen hate Russia and especially Putin. Yanukovych, the president, was "elected" with 48% of the vote. He is a convicted criminal who got by on his communist party connections. He has no accomplishments, lied about his degree and demonstrates the danger of giving idiots the right to vote.
I was born n Russia and I don't think russians want to form any union with Ukraine, concidering this mess. Ukraine will default and Russia shouldn't pay somebody's debt. Net income in Russia is 3x more than in Ukraine and 2x more compared to Eastern EU countries. If Ukraine defaults, which is very likely, considering 80% GDP debt, budget and trade deficit + low FOREX reserves, the difference will be 5-6x or so. Question is why would Russia want to deal with all this mess? What is the point? No benefit. Russia should only form a union with Ukraine if 2/3 ukrainians vote for it.
Coming soon to a country near you...
first dominoe down
What 1 per week. USA in May 2014?
What happens in Ukraine, stays in Ukraine.
Uh-oH the poor oligarchs in the East will need to pull their money asap.
Let me just, ah, make one thing clear. If you like your 20% interbank lending rate, you can keep your 20% interbank lending rate. Period*
*"period" is used with the common meaning of "for a period of time," as in subject to change without notice. If you experience 20% interbank lending rates for a period of more than four days, consult your Western Banker. You may have a serious condition known as being fucked.
The definition of period.....will never be the same.
Yeah. Obama is on his period again.
What is the hryvnia now to the dollar...when I was there it was 4.25 to the dollar
8.29 on Dec 9, 2013
Ukraine's currency seen close to collapse
If the population rush to convert their UAH holdings into FX, it will therefore be very difficult for the NBU to keep the UAH/USD stable. In this case, the regulator will have to resort to non-trivial steps to prevent the local currency from plummeting.
We will be watching UAH/BTC as well. Sooner or later one of these countries is going to flee to something other than the USD as their perceived "safe haven" store of value. With all of the bad press the USD has been receiving recently, it is only a matter of time. Once one country does this, others will follow.
Whatever happened to Putin's super power(s)? Doesn't he have a capo on site?
Gold is spiking to $1260 now and Bitcoin is under another attcak:
The Chase Is On: JPMorgan Chase Building Bitcoin-Killer
After years of allegations about involvement in Gold and Silver manipulation JPMorgan is chasing Bitcoin. So much is for the Bitcoin "Gold 2.0" "Limited supply" - you can chose already from 43 listed crypto-currencies and now more are to come. After China and South Korea has banned Bitcoin from Financial institutions the race is on among the Central Banks to outlaw it.http://sufiy.blogspot.co.uk/2013/12/the-chase-is-on-jpmorgan-chase-build...
I hope all the computer geeks attack JPM. As a PM guy myself I like the talent.
The reason for the Cia backed demonstrations in Kiev.
Black Swan #21,347 in our ongoing series...
Germany and Russia, countries most affected if Ukraine defaults
First they bankrupt the Ukraine then the Ukraine has to seek foriegn assistance in order to not starv their population. Once they are on foriegn assistance they are owned by international bankers for the rest of time.
What a shame. Spent about a month in Kiev years ago and I must say it is a beautiful City. Even then, there was a huge distaste for Russia and the corruption was everywhere. Our driver got a ticket one day on a highway outside of Kiev and he paid the cop off with some of our US bills. I think it cost us $20.00 or so. The history in Kiev is unbelievable. I will place my money on the will of the people in this case. It might get ugly, but they will prevail.
The whole global system is the pyramid corrupt scheme. The demonstrators are fighting on the side of the Empire. Few of them will get rich, and most of them will be in few years realising they were used.
Take note. If The Great Eye doesn't like your behavior, it will jack your credit spreads, overnight lending rates, repo collateral availability, etc. if that doesn't work, there are Russian tanks.
Free markets, whee!
Cough...cough,er,Chernobyl?
And....Putin wouldn't start playing with the Nat gas valves,dicking around with Europe's winter gas supply,to piss off those western banker elites?
he doesn't do it to piss of Western banker elites, but to negate their currency debasement
looks like all the broke unemployed Socialist parasites want to join the EU looting fest, the EU should open their borders to Ukrainians seeking "EU liberty" and let another free shit army in, whats one more group of alien sponges anyway?