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BofA Warns Russian Ruble Weakness Is Here To Stay
Since the start of 2014 the Russian Ruble has been for sale, and BofA's Macneil Curry warns, that trend will persist. With desk chatter that Russia's 2nd largest state owned bank VTB setting USDRUB exchange rate to 39.45 (a huge shift relative to Friday's close on MICEX was 36.05), trendlines are in peril.
Via BofAML's Macneil Curry,
Russian Ruble to remain under pressure
The break of 5yr trendine resistance at 33.23 says $/RUB has begun a long term uptrend, which should ultimately take prices up to the 39.86/40.92 area before all is said and done.
In the near term, we look for a test and break of the Feb'09 high at 36.52.
Going forward we think that, pullbacks must be seen as buying opportunities.
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Let's see where crude finish the week first.
Time for some shit to start going down!
Up until Ukraine collapsed 5.8 million barrels a day flowed from USSR states (Russia) to Europe.
Table from BP statistical review...
http://s22.postimg.org/aclnsv7kx/Oil_Routes.png
That's about $230bn a year flowing from EU to Moscow. Which is wrath of god money.
Now the two are involved in a proxy war... I wonder how much crude will make it to Europe?
90% of Russian revenue is oil & natgas exports. They need to sell as well.
They will keep selling whilst Putin beats the drums of war.
Don't forget oil is sold as futures.
Long oil tonight is a one way bet.
Europe can source fuel from other parts of the world; it would hurt Russia more if the flow to W Europe stopped for any period.
At least the camels don't care. Until there is some shooting or a firefight.
03.02 Middle East Stock Markets Reaction to Ukraine Crisis: Zero, Zip, NadaAt least the camels don't care. Until there is some shooting or a firefight.
What has your mother got to do with this?
Oh! I misunderstood, by camels you meant A-rabs.
Forgive me, I thought the post read camel-whore, in which case it would have definitely been about your mother John (you zionist apologist cunt).
hehehe - carry on. Nothing to see here.
Really now, what if Russia takes more of America's lead and goes after Axis of Evil Nations like Saudi Arabia with some mysterious refinery explosions courtery of the Shiites on the ground in Saudi Arabia. Where is Europe going to go get oil?
Why? People need oil more than anything else. Period.
If Russia needs iron ore, they can trade for oil, and they can dictate terms. Money just doesn't mean much in a world of scarcity.
Yeah, Russia IS the number 1 and 2 provider, respectively of oil and gas.
.
Which means they can cause the ruble to rise against the dollar whenever they want. Just offer oil/gas priced in rubles at a discount to what they charge if paid for with dollars.
Exactly, people act like the euro and us dollar is important even right her on ZH which we know the euro and dollar is toilet paper. It wouldn't be hard for Russia along with China as an ally to destroy most economies should they choose without firing one shot. Just my 2 cents.
If I read correctly on another thread here, the Ukraine is freezing all ATM cards from the Crimea... The payback has begun.
I would not hold the Russian ruble. Even the USD is better.
Gold even better.
In case of war dollar is king. US is way more powerfull in any conventional scenario. In case of MAD ... I guess it will not matter.
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Absolutely true, any conventional scenario being defined, of course, as fighting against a third rate force armed with obsolete weapons and never having to achieve actual victory.
meh. i imagine the author means in dollar terms not euro terms.
obviously the USA is now the largest energy producer in the world so any cut off in Russian production would be very good news to say...the State of Pennsylvania.
(Let alone Ohio, Michigan, West Virginia, Kentucky, Tennessee, Texas, Oklahoma, Kansas, North Dakota, Alaska, California...did i miss any?)
"Black gold"...with the "energy contracts" for any Ukrainian Bankers who get "roughed up" here.
I me "yo, MO...whachyou think USA been doin' the last twelve years bitch" but fightin' w/out oil.
You might want to sober up a little before hitting the "save" button.
I'm pretty thankful he recently changed his writing style! Now at least I can read them, when before it was all one long sentence/paragraph...
This is correct as long as people don't realize that there's a toothless tiger, a emperor without clothes, a all-mouth-no-guts horseface etc. etc.
Let's go back to basics, Dr. Watson:
Q1: What is Russia able to use to back its currency? Gold? Yes. Petro-Energy? Yes.
Q2: What is USSA able to use to back its currency? Gold? No. Petro-Energy? Maybe.
Without petro-energies from Mexico and Canada, the US is not energy independent. And we all know they have little gold left in the Fed vaults.
The Ukraine situation is but another manifestation of the woes of a dying fiat currency: King Dollar.
"ANYTHING and EVERYTHING is on the table to Deflect, Redirect and Attack, to keep the Dollar lose its Imperial status, and with it the power, glory and lifestyle of its true and hidden owners."
America, ZH: Blue Pill or Red Pill?
Kirk, some people just don't get it. You can try all you may but sometimes folks just have to learn the hard way.
If I understand it correctly Russia doesn't have a lot of internal debt due to it's default after the breakup of the soviet union. The U.S. needs to go through that process in reality in order to have a healthy economy agian. (Along with copious numbers of bankers doing the right thing for god and their country of course.)
People in Crimea primarily deal in USD or EUR
BofA can suck shit.
So does Connecticut. CT now wants to seize guns. The below is the kind of thing the Tylers should be doing. A public service announcement.
Source: http://sipseystreetirregulars.blogspot.com/2014/02/a-sipsey-street-publi...
+1000
"BofA Higher Standards"...
Maybe a Ukraine-style (neo-Nazi takeover) "democracy" is what's called for. /sarc
I mean, did those neo-Nazi thugs in Kiev not threaten or kill politicians who were opposed to them? And if "we" support them, then "what's good for the goose..."
I'd pop some corn and corks for a "Ukrainian Spring" in the US. National hypocrisy is a bitch, bitchez.
Meanwhile in Putin's authoritarian, oppressive and evil Russia:
http://rt.com/politics/gun-russian-home-defense-883/
Coming from the source of "weakness here to stay"...
Now that is funny!
Should Putin take his "weakness" in exchange for USD or another well-to-do Western currency these days like the Euro?
Let's ask each of the owners of that bastion of wealth creation backed by "the full faith and credit of the United States Government" how long they're keeping there's before throwing it in the fireplace or wiping their hind quarters with "it"?...
Hm,see what can do love for money,jew to fight arm to arm with fascist "freedom fighters"
http://www.haaretz.com/news/world/1.577114
I may be playing devil's advocate here but one should keep in mind that over 1 million Jews and non-Jews from ex-Soviet Union emigrated to Israel. Some of them returned to Ukraine, Russia, Belarus, etc. I am sure you can find ex-IDF soldiers in Putin's army as well. Picking up on a bunch of mercs with prior military service in IDF does not mean anything in this case.
Poland apparently moves military assets towards Ukraine border...
https://twitter.com/pravyisektor/status/440184890068172800/photo/1
So, Poland is about to annex western part of Ukraine to protect Polish minority there? I am sure that Pravy Sector and Svoboda members will cordially welcome Polish army in Lviv. /s
that might not go over very well either.
There are rumors of US boots on the ground in Lviv however.
They're only there to change a lightbulb.
How many Poles does it take?
You think you're funny? Not...
Polish army has the 5th position in Europe - with the newest versions of F16 (responsible for airspace over some other NATO countries) and more than 900 tanks.
Anyway this picture was published on polish forum in western part of the cuntry - during normal operating. Poland IS NOT doing such things, please don't desinformate.
Pure genius.
So does this mean it's a good time for someone from U.S.S.A. to expatriate to Russia?
It's hard to go anywhere permanently. Visa rules are almost never permanent. Mexico, oddly, gives you 180 days at the border. Most places are 30, 60, or 90 days.
Retirement visas ar all the rage now, but you have to meet the age requirements, which sometimes are not severe (I've seen as low as 45).
Well hell, if BofA said it then it must be true.
.
They've never lied to anyone before.
........ Sometimes, when it becomes serious you have to lie.......
DoChenRollingBearing - please edit that list of names above and just leave a link to the info.
yes, PLEASE!
Ah, sorry guys, will do what you ask in the future.
Too late, Son of Nemo replied to it.
LOL A down-vote for informing...wtf, LOL
BofA is in the pocket of the Fed Reserve, which of course is going to trash the ruble, d'oh! But Russia owns the resources that everyone wants.
Game Over bitchez.
Bank of America is bankrupt. Totally. Only through "modern" accounting methods do they maintain that they are alive. When you can not audit financial records or those records are totally falsified wth liabilites counted as assets who believes your accounts? Oh, yeah other criminals...they believe.
And the circle jerk goes on until someone falls off a steep ledge.
Yes. You have to question the motives of Bank of America and all of the investment banking cabal when they release 'research' and 'strategy' pieces on currencies that are not in the USD interest
Currency Wars: The Yuan's Silent Scream - Portrait Of A Derivatives Bomb Being Detonated
David Kranzler published a very interesting article confirming our discussion about the ongoing Financial War involving USA, Russia and China now. Bo Polny on the chart above presents his view about the implications of US Dollar crash below 80.00 level for the Gold market and you can find our thoughts on the links below. http://sufiy.blogspot.co.uk/2014/03/currency-wars-yuans-silent-scream.ht...
+1. Yup, one the USD's owners (BofA) are just going on offensive regarding the dying dollar.
I truly pity those people who either aren't informed or can't think at the Strategic level, for they get wrapped around the axle or get easily distracted at the (battlefield) Tactical Level. [sigh]
Hitler's Rant - Original Video with English Subtitles: Film = Downfall/Der Untergang - HD
http://www.youtube.com/watch?v=t7PmzdINGZk
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time to back to the original.
Jim Rogers really shit the bed on this one.
Surprising. Jim looks like he sports "depends" on a daily basis.
So how many points do you thnk this will cause the spoos to gap up open? I am thinking 10-20, up 75-100 on the week.
The only reason the utterly insolvent BOY (Bank of Yidmerica) is still here at all is our tax dollars.
I want a refund.
You can avoid reality, but you cannot avoid the consequences of avoiding reality