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Russia's Response To European Capital Sanctions In One Word
While the West continues to press the "Russia is increasingly isolated" meme, it appears - as we noted ironically previously, that Vladimir Putin is finding plenty of friends... most notably China. While threats of 'asymmetric' retaliation over European sanctions may have been enough to worry Europe's leaders, the slew of news overnight regarding increased cooperation between China and Russia is likely more damaging to Western strategy (and egos).
Not so isolated...
h/t @PersonOfAwesome
As overnight news shows... China and Russia are ramping up their cooperation...
First, as Reuters reports, Russia and China pledged on Tuesday to settle more bilateral trade in rouble and yuan and to enhance cooperation between banks, Russia's First Deputy Prime Minister Igor Shuvalov said, as Moscow seeks to cushion the effects of Western economic sanctions...
Russia's First Deputy Prime Minister Igor Shuvalov said told reporters in Beijing that he had agreed an economic cooperation pact with China's Vice Premier Zhang Gaoli that included boosting use of the rouble and yuan for trade transactions.
The pact also lets Russian banks set up accounts with Chinese banks, and makes provisions for Russian companies to seek loans from Chinese firms.
"We are not going to break old contracts, most of which were denominated in dollars," Shuvalov said through an interpreter.
"But, we're going to encourage companies from the two countries to settle more in local currencies, to avoid using a currency from a third country."
* * *
So that blows the oil/gas funding sanctions plan out of the water as Russian firms will merely fund via China.
* * *
Second, as RBTH reports, The Chinese company CNPC is to get up to 10 percent in Russia’s Vankor oilfields, Rosneft’s biggest production asset...
Russian President Vladimir Putin announced the plan at the construction launch of the Power of Siberia gas pipeline on 1 September, business newspaper Kommersant reported.
“The plan will secure state support, and we will encourage your participation,” said Putin to the members of the Chinese delegation.
“There are no restrictions for our Chinese friends,” he said. According to Kommersant, the Chinese state company CNPC could get up to 10 percent in Vankorneft for approximately $1 billion.
* * *
So that knocks another leg out of the sanctions stool as investment in energy infrastructure and technology is covered.
* * *
And finally, as ITAR-TASS reports, Russian Railways are set to get RUB400 Billion investment from Chinese investors...
Chinese investors have expressed their willingness to invest 400 billion rubles. in the construction of high-speed highway Moscow - Kazan. Itar-Tass said the first vice-president of Russian Railways Alexander Misharin.
"Even today, the Chinese banks, China Development Bank in the first place, ready to raise the funding needed for this project, we are talking about the order of 400 billion rubles." - Said Misharin, noting that the final decision on the construction of high-speed rail is in Russian government.
Misharin emphasized that the stated funds are sufficient to "provide funding for the project in terms of funds raised."
* * *
But apart from that, yeah Russia is isolated...
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Mustn't get the Russian bear angry. By the way, the Dow Jones looks like it is in free fall right now. Time for the central bankers to quietly circuit break the fall.
Big word.
"freefall" is that what they call it when it's just below record highs?
is that RED china or who cares???
Ho Li Fuk Sum Ting Wong in America & EU.
Proof that Russia attacked Ukraine & Obozo has this from Langley!!! https://www.youtube.com/watch?v=ljZhKEIhcC8&index=2&list=FLR0UPShKxRN5gm...
Clearly the MIC needs a new big boogeyman and so they are determined to initiate a new cold war. Already the editorials have begun about increasing defense spending, and how low it is now relative to GDP...
Cui Bono? Not me.
Obama is so fucking clueless. Maybe even more sanctions will work this time
He is not clueless, Obama is doing exactly as told to do!
Isnt' the GDP of the countries colored green and black miniscule compared to the combined GDP of the countries in blue?
Even if you haircut the West's GDP?
The cost of a barrell of oil is the same no matter how much GDP a nation generates. Energy is fungible
Cold War?
That's so 1960's.
They want this be a hot one - there's a youth unemployment problem in the EU to eradicate,remember?
Instead if investment in Chinese ghost cities, there will be new investment in Rusdian infrastructure.
Thus provides a.market for Rusdian commiDuties, and a worthy destination for Chinese capital projects.
This us huge. America/Europe have created a monster.
Those Chinese spare cities are strategic preparations for WW3.
There won't be WWIII. War implies a possible victor.
With Ebola (patented) set loose, it'll be MAS - Mutually Assured Suicide.
To the bunkers!
at first i gave u a green up arrow cuz i read your post as "mutually assured suicide to the bankers " . . . . . #wishfulthinking
They are not ghost cities.
The same cities that the MSM reported as "ghost" are being occupied as we speak. Chinese families are moving into them.
The rents and prices were slowly dropped until they attracted residents and shopkeepers.
http://www.cnbc.com/id/101678673
This is going to be like dropping two wolverines in a pit.
America will be the guy in the pit with the wolverines.
I guess but the point I tried to make was that if you match oil production to GDP, OPEC throughput is too high for the lower demand in the ex-West countries.
Do the oil producers then stockpile oil until China ramps up? If there's no trade between the US and China due to sanctions, does China's GDP ramp up to replace the demand from the US?
Oh that's right! What was I thinking?
The answer to any question is always, "Gold, bitchez!"
Gold, bitchez.
The Chinese will sell the same crap to the people who sell them resources. Russians and others. Yes, they will have an economic dislocation when the US collapses. Which is why they are encouraging individual Chinese to buy metal.
Each Chinese family with maybe 50 ounces of silver is one family they don't have to feed for a year.
Yeah, those pissant little backwaters like China and Japan are so trivial...
http://knoema.com/nwnfkne/world-gdp-ranking-2014-data-and-charts
Take once the Transiberian railway and you get to the heart of the problem: Spaces and distances. Huge infrastructure projects..but who pays nad builds what?
Ferret Brain,
Taking your data, I downloaded the top 20 nations contributing the most GDP, a sum of $61.6 trillion vs $76.8 trillion globally. That's about 80% of the world's GDP (special thanks to Pareto).
If I take the sum of Western GDPs, I get $40.3. That leaves $21.3 for the rest, which means leading Western economies contribute twice the GDP of the leading BRIC/Emerging.
It's been proven in other ZH articles that China's GDP is pure fiction. Add to that the understanding that trade between China and the US is practically incestuous, so if the US gets whacked China gets it too.
So while not trivial, I think the West wins. The demand coming from the West that justifies the supply exported by BRIC/Emerging Mkts, if that were to go away, would cripple these smaller countries.
And, of course, gold bitchez. Gold bitchez, indeed.
You totally lack logic, debate and critical thinking skills. In short, you are a stupid asshole.
First of all GDP is a meaningless number because it includes gov spending. Second, it doesn't matter if your trading partners are the biggest possible. It only matters if they are large enough to absorb your production and provide the goods you need in return. Clearly the brics provide this.
Remember 75% of US GDP is spending which means outlay not yield. In other words they're losses not gains.
gdp in usd's - when usd and euro dive that % will be small
@SWRichmond: "Clearly the MIC needs a new big boogeyman"
Add reword it slightly: "Clearly the MIC and the Fed need a new big boogeyman"
The Russians outed themselves with this on RT!
http://rt.com/news/185148-russian-embassy-nato-trolling/
That was fuking great, Fib. Heven't laughed so hard since https://www.youtube.com/watch?v=Lejx5nBsLWM
No, that's what Tom Petty does when he gets dumped by his current love interest. Russia and China chumming...like anybody with an IQ over 80 didn't see this coming. .gov is getting more violent and stupider by the day. Stupid and violent people are dangerous, kinda like old nitroglycerine.
For information's sake: Old nitroglycerine is no more dangerous than new nitroglycerine. Its the old nitro based stick powder that becomes dangerous when, over time, the nitroglycerine percipitates out of matrix and forms crystals of pure nitroglycerine on outside of stick which cause stick to become subject to explosion by dropping, bumping or other accidental force.
It's old dynamite that becomes dangerous and is the object referenced in sayings of yore. New fangled gel explosives (still in stick form) have replaced stick dynamite and are safer and more stable over time.
"Freefall" is akin to "Collapse" around here, but I
do not think they mean what they think they mean..
Uhhh Ohhhh shit is starting to get serious now, the press releases are starting to state the investment amounts in Rouble and Yuan denominations, how will the USD readers know how much its worth, if they do that???
lol
The Plot thickens:
According to a Russian media report, at least 12,000 heavily armed Chinese troops have been moved to the border with Russia as tensions in the region continue to build.
The report cites the Russian FSB Border service as saying that Beijing began dispatching troops to the border on September 6, with 12-15,000 soldiers making the trip backed by heavy artillery.
According to a translated quote that the report attributes to a Russian border representative, it is not yet clear why the troops have been concentrated on the border but that “something smells bad.”
Where ever large concentrations of troops (or people for that matter) congregate, it smells bad.
Well we have the response to those NATO games. NATO sends 1K and China sends 12K. Screwing with Russia on their front door is a poor idea. Time to leave now!
http://pressa.today/events/kitaj-styagivaet-vojska-na-granitsu-s-rossiej/
It is hard for me to believe that while Russia and China are working together more and more that this troop deployment is anything but benign. Perhaps it will be some type of drills with Russia and China? Maybe China is putting troops in place because the new gas pipeline has started construction. Don't want anything bad to happen to that nice new pipeline they are building...
do you have a link to your report please?
Yeah!! Freefall just like WT I and II and 7. It´s a dead-sure sign of great business ahead. Fuck those doji signs and other rice-sucker inventions such as TA. Look for freefall and head in that direction. Just don´t get hit by jumpers and debris...
Why hasn't there been a story on the us air Marshall that was stabbed with a syringe in Nigeria, then flew home. Or about the fourth "Unidentified" patient returning to the US with Ebola?
Pussy! Would not have happened to Tommy Lee Jones or to Arnold. /s
Sure, the Fed is still in the market. But what we're seeing right now is the beginning of the end...I dare say. The Fed will manage these selloffs as best they can - and we might even see 2000 again in Spy. But they are playing defense now, based on dollar, bond and geopolitical pressures,..its definetly time to sell the rips.
JMHO
Has anyone just stopped to compare the sheer size magnitiude of Russia, China, Brazil, and India in comparison to the EU and US???
Look again at that map above and think to yourself, who has the future ag and economic growth, energy, and developement potential going forward and who doesn't????
If your smarter then a 5th grader, you know the answer, isn't "the west"
Dont worry kissinger has a depopulation plan already figured out.
http://pdf.usaid.gov/pdf_docs/PCAAB500.pdf <------ Govvy site!
http://en.wikipedia.org/wiki/National_Security_Study_Memorandum_200
Renewable Life'
Wrong comparison because Brazil is in South America.
In area, North America is the smallest continent (23.4 million square kilometers).
Eurasia (49.8 MSK) is more than twice as big as North America (Canada, US, and Mexico).
BLIYAT!
pissdiet !
BLIYAT!
BLIYAT!
Two Big Words...
"AS PLANNED"....moar Kabuki theatre, folks...the transition is going well...
The little-bad wolf (USA) is doing its best to look baaaaahhh-dddd....for the sheeple....
Since "we" all have mostly bone filling up the space between our ears...we can only "reason" in dichotomies of "good/bad", and "black/white"..."rich/poor"....
Anyone notice Putin congratulating the "royal" family yesterday?
Meet the new boss....same as the old boss....they ain't leavin'...unless its ISIS-style....
"But, we're going to encourage companies from the two countries to settle more in local currencies, to avoid using a currency from a third country."
Translation error, should have been printed as 'third world country'.
They don't want to make it clear to USA=)
yea, but US still issues more EBT cards,gays, blows more bubbles and have more can talk you to death Yes we are compassionate, forgiving and never get angry. Come take our homes and children but give us NFL football. Go Johnny Go.
DOW down 0.48% at time of this comment. I'm jumping off my balcony! (into a pond tho).
If the EU does stop energy imports for Russia, What is stopping them from taking over south eastern Ukraine? If the West is going to damn Russia they might as well do what in thier best interest.
The only issue with Russia energy exports to China is that its probably a year away to complete the pipeline. I fear that if Russia cannot sell all of its energy (Oil & NatGas) to Asia due to transportation issues, that they will cut cap-ex on production and exploration. If I recall correctly, Russia invests about $20 Billion USD per year to offset declines. I fear that once cap-ex is cut global supplies will fall into a permanent decline and the rate of decline will be accelerated.
You're kidding, right? The EU 'take over' anything? with whose army? I don't think we could depend on the UN doing their bidding either.
Sorry, I was referring to Russia as "they". ie I think Russia will take over the South Eastern Ukrainke since they have not left to lose once the EU blocks Russian Energy.
"The West" take over South Eastern Ukraine, and you thought Vietnam and Iraq was a clustfuck for "the West", OMG you cant be serious, you do realize China and Russia have a very serious military complex right? Even the US Military admits, they are not sure if China should still be labeled "inferior" to the current US Military capability, at this point!!
ARRRGGGGHHHHHH !!!! The PRONOUNS !!! The freaking ambiguous PRONOUNS !!! ARRRRRRGGGGGHHHHH !!!
If the EU does stop energy imports for (from) Russia, What is stopping them (the Russians) from taking over south eastern Ukraine? If the West is going to damn Russia they (the Russians) might as well do what (is) in thier (own) best interest.
Yes, Correct. My bad, I had an incoming phone call so I just submitted without proof reading.
I think you mean "Free for All".. As in Wall Streeters delirious with free cash.
No he really meant free-fall. Just get the lot out of the footprint will you.Electronically or otherwise. Roll those trucks with gold bars.
itar tass reports russia and iran have reached a multi pronged deal. one facet being russia receives oil which it can sell to china in turn russia will provide iran 7 thermal plants. russia seems to finalize or initiate a new contract daily. a couple of days ago putin was in mongolia signing a deal on railways. yesterday finalizing a contract with vietnam about developing oil. the sheer number of contracts and contacts is somewhat overwhelming. i am rather quizical that china didn't simply arrange a deal with iran rather than russia. so yes we live in fascinating times.
Buying RUB and ARS as suggested by Kyle Bass is smart, + 3% in 6 weeks on USD, and 7% on Gold. Do not piss off Russia, or else China jumps in too, once Argentina gets away with no pay on Vulture Funds, watch the others join in. Just waiting for Germany to join, dumping London and Wall Street. You could see this coming !!!
The money worshiping mini joos of zerohedge.
"I want to be nuked by Putin because my golden coins will be worth $10,000 per oz. Marc Faber told me so. Then I could buy an entire block in Berlin for the $1000 dollars I paid for these golden pieces of shit "
Very clever ... for chineese.
I do notice that the Chinese aren't offering to give anything away
I suspect, they are just playing "Good Cop" in the future dismantling game.
If the Russians don't likee like the EU squishes, wait until the Chinese get done with them.
It's still good for us, because they building in our soil, it's not some paper assets..
They're smart to dump as much worthless fiat while it still has some value. Too bad the Russians don't want those fat stacks of $s. I'm sure the Chinese will find a way to dump/convert them to yuan.
Looks like the US and its western minions are busy (re)creating the next boogeyman.
Mission Accomplished.
Boogeymen are fake and do not retaliate, do you think this is the position Russia has adopted? It seems to me that Russia has taken the economic route to winning this fight, and is saving the military solution for emergencies.
Do you find it odd that you cheer Russia who will most likely nuke you?
really???????
Buffet must be pissed that he was not part of the Railway deal. Oil via rail - imagine!
How's Oil-via-Rail coming along between US and Canada? Oh yeah, that's right... it's being fought by the Pipeline cartel. Buffet vs Rockefeller. Get the popcorn.
To the extent of sabotaging trains, to make the public CLAMOR for less oil by rail, and more pipelines.
Lac Megantic 'accident' any one?
"Lac Megantic 'accident' any one?"
Not unless you have concrete evidence, which I'm sure you don't.
Some things are just accidents, m'kay? Deal with it.
Yes, I'm sure if I had concrete proof of criminal wrongdoing my life would not be in danger at all.
What happens when Oceania is at war with both Eastasia and Eurasia?
The big kids are playing ball now.
Methinks this is not going to end well for anyone.
When bankers get threatened shit blows up.
pods
I have no idea what the EU is thinking when it comes to sanctioning Russia's energy companies. It's not like we have a never ending supply of oil and gas. It's almost like the Western powers are forcing Russia and China together.
This is a US issue, not EU issue.
US guarantees Europian security, but US is busy trashing USD.
The whole world is unravelling due to that
When USA abuses the UNIT OF ACCOUNT world output is measured at, then world moves on.
Exactly, becasue capital and talent always go where they are respected, always have and always will.
And if they can't, then wars ensue, because world trade gets fractured and misery ensues as a result.
The old saying: If goods don't cross borders, then armies will.
Only dirt travels with the wind.
Guarantees the EU's safety from what? Russia invading? Russia has no interest nor the ability to do so. That's an outdated Cold War model that the US is busy trying to reestablish in order to keep the EU dependent.
Those are current agreements.
Whether they are useful or not now, it is a different story.
That's an outdated Cold War model that the US is busy trying to reestablish in order to keep the EU dependent.......And the MIC well fed and the illusion of "the world's sole Hyperpower" intact
what is "guaranteed" from the US is
US military occupation, involvement, dominance, and control.
The agreements, public and secret, from Gladio to NATO keep Europe under the US thumb.
US-controlled NATO provides an assortment of proxies to serve US global designs.
According to insider P.C. Roberts:
How does Washington get Europeans to always do what Washington wants?
' “Money, we give them money.” “Foreign aid?” ... “No, we give the European political leaders bagfuls of money. They are for sale, We bought them. They report to us.” Perhaps this explains Tony Blair’s $50 million fortune one year out of office."
http://www.globalresearch.ca/warning-to-the-world-washington-and-its-nat...
.
The answer becomes clear when you consider that NATO is a protection racket, not a military alliance.
http://www.themoscowtimes.com/article/506721.html
LESS DOLLARS...................they said
When Putin advanced the army, Financial War died.
Fighting Putin with financial sanctions is like using a water gun against missiles.
I agree, but as well, the US government now claims legal jurisdiction if the American dollar is a party to.
I think that may be the bigger reason.
US system is different from europe.
Europe is democracy, winner takes all.
USA power is very fractured between presidency, house, senate.
In reality congress votes across lobby lines, not party lines.
Parties in USA are almost inexistent. Congressmen define themselves as to what lobby they pertain to.
It is a mess done on purpose to oppose democracy as a system
The term 'US government' means little.
Which government? Power is spread through the system
I would say TPTB have decided to eliminate the Western financial system for a new type of system.
Well, two words: China and Gas.
Jumpin Jack Flash
Everybody in Russian now...
But it’s alright now
'Cause we got the gas
And it’s alright now
Fuck your sanctions, kiss my ass
It’s the Sino-funding flash
Hey, EU! Got RUB, CNY or AU? No? Then FOAF (FO And Freeze)!
p.s. Hey Merkel, now that we know you have no 'cojones', how are you gonna stay in power when German industry (CEOs and unions) defect from your party (CDU)? "Berliner Luft" will have a new meaning when you'll be swinging in the breeze.
Equals fart.
It´s two words, actually: "China Vassal". That´s your future, mother Russia, enjoy.
How is Russia a vassal of China? Is China getting free goods and services from Russia? Seems to me like a very logical partnership that can accomplish many mutually desired goals.
Is not yet, but will become once the doors to western world are completely closed. Russia will be then at China´s mercy which will at one point start asking land(first as lease) for their assistance. Putin will go down in Russian history as the idiot who lost Siberia.
btw. I have positive views of Russia, in general and loathe the interventionist western foreign policy. Nonetheless, the world is not black or white, and Russia is doing a huge mistake now, turning its back to west. The price will be high, unfortunately.
You can't be at somebody's mercy when you can fry his coast cities with nukes, multiple times. Nobody gets Siberia unless the Russians decide to abandon it voluntarily. Those MIRVs are not all NATO dedicated, some of them are targeted to Japan and China. I suggest you cut the BS...
There were also times when the Russian economy was multiple times of China´s, now it is one fifth of it. You are either naive, fool or both, if you believe China´s got only 200 nukes. They are patient, building up the stockpile. When they reveal the real number, it will be too late for Russia to start catching up.
200, 400, 600. Law of diminishing returns is alive and well, and quite appropriate here.
I saw two papers claiming China has 2000 nukes. So take your pick.
I severely doubt he would give away anything near Vladivostok, but I guess they could give China some 'lebensraum' south of Lake Baikal. Ulan Ude and Chitai are somewhat oriental.
Who care if they have a million, re-read post on diminishing returns, bouncing rubble is not all that effective...
It doesn't matter how many nukes China has. You destroy its coastal cities, and China is finished. There will be nobody left to "conquer" Siberia. Incidentally, population concentration is the main disadvantage that US has in case of a nuclear exchange with Russia... Is back to school for you, pothead.
Fair points yet I need to ask - how should Russia react to Western agression in your view? Is it not NATO that's pushing Russia to turn away from the West? So should they just observe and do nothing? I'm not sure Russia is close to losing Siberia any time soon though no matter how bad it gets.
Russia isnt innocent either. They picked a fight with west anytime they got a chance: Iran, Syria, selling advanced weapons to China etc. Therefore we can really ask the question whether backing the ukrainan revolt was an action or a reaction, looking from the west.
As for Siberia, of course i didnt mean it immediately. Only when China strengthen further, so sometimes in the second half of century. They are pretty patient. But if Putin runs into their open arms, he´s setting things in motion. Things which will be difficult to reverse.
In the 2nd half on the century, Russia will have plenty of time and resources to handle the Chinese, as both US and NATO would be long dead & disbanded...
Putin saved Obama's presidency with Syria. The ingratitude of that Kenyan!
@kaiten Well, sure, they're not innocent, not debating that. However, if we speak about the timeframe since the collapse of USSR I think you can certainly agree that the West (US/EU and NATO) have pulled so much shit in the world (I trust no examples are needed here) that Russia's actions just pale in comparison. And I would certainly argue that Russia's actions in Ukraine can be viewed as defensive rather than offensive since they never orchestrated a violent coup in other countries as opposed to the US. To sum it up - there was no ISIS in Iraq prior to US meddling similarly as there were no pro-Russia separatists in Ukraine prior to US meddling there, which is pretty well documented.
http://en.wikipedia.org/wiki/Covert_United_States_foreign_regime_change_...
And you're talking about Siberia as if Putin will rule Russia forever, LOL. I'm certainly not a fan of Putin since I'm well aware what type of regime the guy represents yet I also feel that probably Putin is one of the few people in the world who has the balls to stand up to US psychopathic hegemony because I firmly believe that the world needs a balance of powers whereby NO SINGLE NATION IS ABOVE THE LAW. If one nation establishes full control over the whole world we're all fucked.
But if Russia sinks, don't you think China is next? That might stay their hand a bit.
The enemy of my enemy is my friend. Invite all the lepers to the party: Iran, North Korea, Venezeula, Argentina, Cuba. Not sure about North Korea but Putin is cutting deals with all of them. I hope the first BRICS Bank loan goes to Argentina
Seriously, Russia turning its back on the west? Is that what it's called when another country tries to assrape you on the world stage and you don't bend over?
Is that turning your back, or showing your front? I know I am always careful to turn my back when butt pirates are suspected in the vicinity.
It's actually the West that is turning its back to Russia. Do you think if Russia joined the West, that would be a positive, or negative for China? Russia is a producer of energy, metals, minerals, etc... China is a consumer. Do you think China wants Russia selling it's resources to the West? The writing is on the wall, the dollar reserve status is coming to an end... time to look to the future.
Why would China fuck Russia over. Russia keeps US/NATO away from Chinese border
You just wait till this Oct/Nov (before US Midterm Elections in Nov), when Russia does this at the same time
1. All Energy sales to be settled in RUB, CNY or AU. No USD, no EUR.
2. Dumps its $100B of US Debt, China sells of $100B
Good luck in the Elections, and good luck in trying to prevent the 'Market' not taking a dump. USD? We don't need no stinking USD! If you like your digital fiat, you can keep your digital fiat. LOL.
Not so sure about that....
1. All Energy sales to be settled in RUB, CNY or AU. No USD, no EUR.
The Russians have already indicated they'll honor existing contracts. Perhaps new contracts will be priced in other currencies, but that's a ways down the road I'd say. Their ability to influence a US election is fairly limited, and why would they bother? It's not like there's any difference who's in charge where foreign policy is concerned - they must know that.
2. Dumps its $100B of US Debt, China sells of $100B
Sell to who? The Federal Reserve? They're the only buyer left. In their place I would just stop buying and very slowly start to unload. Makes no sense to trash the value of your own holdings just to score a limited political point which would be lost on the US audience anyway. Slow liquidation using the proceeds to purchase exports from S. America and Africa is a better strategy. Like the Chinese are already doing.
Sudden, irrational moves with serious unintended consequences is the US style. Russia and China are far more conservative and can be expected to move slowly and purposefully after thinking things through in depth. That's been the pattern thus far. I see no reason for it to change.
The Chinese are converting their Treasuries into gold and try hard to do it without spooking the market. The West, playing the bigger fool, is more than happy to help them, with all those market rigging games in the paper gold market. I wouldn't be too worried about China right now...
Don't forget Obamacare premiums due in late Sept. What's the over/under on less than +7% as much as +10% on average.
http://www.politico.com/story/2014/08/obamacare-premium-increase-2015-10...
Maybe there will be a plan more worthless than Bronze: Brass? Tin? Pig Iron?
Check Mate..... EU sluts
Meanwhile, with all the Distraction, there is Action going on in the background...
US and Ukraine hold joint naval exercises: http://rt.com/news/186060-ukraine-us-naval-drills/
Chuck Hagel is "not aware" of any weapons being secretly given to Ukraine, of course. It's done on a "Need to know" basis, and he does not "Need to know" -- to give him "Plausible Deny-ability".
IOW: US providing Mercs+Arms = Good! Russia providing Volunteers+Arms = BAD! "Berry berry Bad Vlad!" USSA, welcome to the NWO.
Amazing what Free Market investment looks like absent the fading Petrodollar. Investment in Gas / Oil, high speed railways & infrastructure all backed by Gold creating jobs with & growth.
Where as the Criminal UNITED STATES, CORP. INC. investments are War, War, War & more War. But on the brighter side we still have Amtrak.
What nonsense.
Russia and China have fiat-currencies.
The difference is, they are not PLUTOCRACIES. Their political leaders are the ones that decide. Primacy of politics.
They are absolutely plutocracies - are you serious?
OT but has anyone noticed that retail gasoline sales are falling off a cliff?
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=A103600001&f=M
60-70% drop in retail gasoline sales over the past eight years. And no, that number is not due to electric cars or more fuel efficient cars.
That's because of this great recovery we are in and everyone moved to the suburbs and drives to work right?
Yes, and couple that with eu gas demand. something very bad is going on behind
the wizards curtain.
Which is why we have the rush to war.
The whole system is close to crashing and the elites are desperate to create a distraction??
Refiners are not so much in the retail gas biz anymore.
It's a "SCARE" chart. Means nothing.
Who is then and where is your evidence? Thanks...
While I agree that it is a scare chart, the number of road-miles driven has declined since about 2005 or 2006. We are driving less, despite more fuel efficient cars.
Correct on both counts. This issue has come up before on ZH - It was the gist of one of those "sell you a subscription" type articles that are all too common around here. Gas consumption is down, we all know why that is, but the refinery numbers are skewed by the fact that most of the majors are now out of the downstream part of operations. I was working in Big Oil when this started, way back in the 80's. Ships, trucks, gas stations and refineries, all went on the block. Most of that work is done by contractors now. One of the reasons I moved on.
There is an election in November, moron.
Yes ! In North America most gasoline is burnt by far during the daily work commute (as opposed to diesel...). Less gas consumption means that jobs are just fucking peachy right about now. Ain't "Recovery" great ?
Whatever happened to Japan needing gas for energy production in lieu of nuclear?
they have a deal with russia to pipe gas into northern japan.
Coal from Canada and the Western States has made up most of the shortfall. Japan has coal fired base load generators. NG is mostly used for peak load - not efficient for base load.
Plus they're restarting some reactors:
http://www.bbc.com/news/world-asia-28322558
OT but important advice:
Why this stock market will never go downhttp://www.marketwatch.com/story/why-this-stock-market-will-never-go-dow...
I read that propaganda bullshit. 1929 comes to mind...
"Last week’s Investors Intelligence survey showed bearish sentiment at its lowest since 1987 (13.3%). In fact, short-sellers have nearly disappeared along with the few remaining bears. "
If this is true, then the next sell-off will be a big one. With no shorts left to cover, the market has no floor. This is a classic set-up for a fall.
Yeah yeah, I know.... bears are supposedly gone, so why am I still around? Well, truth is, I'm one of those bears that only shorts into a decline. Calling tops and bottoms is a mug's game. The trend is your friend (until it isn't...LOL).
PS: lowest since 1987? Man, if that isn't telling you something.....
Who is “propping up” the Ukrainian Hryvnia (UAH)
The Federal Reserve via “currency swaps”?
September 9, 2014
Just WHO is propping up the UKRAINIAN CURRENCY? (It is called the Hryvnia; pronounced "greev-na" and is also referred to as UAH). (For the sake of consistency I have used FX rates from http://www.oanda.com/currency/converter/ which tends to value the Hryvnia more highly than the other five web sites I use for exchange rates. In addition, currency exchange booths, which tend to offer MORE Hryvnia per USD than the “official” FX rates found on web sites. are located all over Odessa, from supermarkets to shopping malls to large stores – NOT simply in banks, which tend to give you the worst exchange rates.)
Back in November 2013 the exchange rate (at the regular exchanges located all over Odessa) was about 1 USD = 7.9 UAH. Since the February 22, 2014 Kiev coup, its value has been steadily decreasing. Several FX web sites state the UAH fell from 1 USD = 11.4170 UAH on July 20, 2014 to 1 USD = 13.5461 UAH on August 27 2014. (At many any Odessa currency exchanges. located in many stores and malls throughout the city, on August 27, 20014 had exchange rates of 1 USD = 13.9500 USD.)
Then suddenly the fall of the Hryvnia STOPPED, as if by “magic”.
For a great GRAPH illustrating these data, please go to:
http://johnhenryhill.wordpress.com/2014/09/09/who-is-propping-up-the-ukrainian-currency-the-federal-reserve-via-currency-swaps/
Most notable was the rise in value of the UAH from August 31, 2014 to September 1, 2014 – over this 2-day period there as a nearly vertical line in Fx curve as the UAH rose in value from 1 USD = 13.3020 UAH on August 31, 2014 to 1 USD = 12.8413 on September 1, 2014.
1.) The increase in value of the UAH from 13.5461 (8/27/2014) to 12.8413 (9/1/2014- present) represents a 5.2% increase in value of UAH per USD over a 4-day period.
2.) The increase in value of the UAH from 13.3020 (8/31/2014) to 12.8413 (9/1/2014- present) represents a 4.05% increase in value of UAH per USD over a 2-day period.
3.) Finally, there has been NO CHANGE in the USD to UAH exchange rate since September 1, 2014 to the current day, September 9, 2014. The FX curve is a FLAT HORIONTAL line at 1 USD = 12.8413 UAH. This is unheard of in the foreign exchange (FX) market, even when someone is attempting to manipulate it.
My question is: Given the near-total financial collapse of the Ukraine economy, the war in eastern Ukraine, the fact that the Kiev government has been buying up UAH with the few USDs it has left, and that the Kiev government has imposed on BANKS "currency exchange" limits (from UAH to USD) and "withdrawal limits" on USD-based bank accounts, just HOW IN HELL in the UAH increasing in value?
Is the Federal Reserve (through some third party) once again engaging in "currency swaps", buying up UAH with US dollars? The Federal Reserve engaged in such "currency swaps" totaling hundreds of trillions of dollars from 2008 through the present, both with many foreign nations, central banks and private companies. And as former Federal Reserve Chairman Bernard Bernanke stated in testimony before Congress, these "currency swaps" are OFF-THE-BOOKS, since supposedly currencies equal in value are being exchanged.
Just curious if anyone with more kn owledge about this than I has investigated this phenomenon.
John-Henry Hill, M.D.
retired physician
Web: http://JohnHenryHill.Wordpress.com
US/ECB guaranteeing Ukraine debt and funding thru back channels. That's what we do, Talk and fund worthless debt. This funding of Ukraine is nothing compared to the 100's of trillions guaranteed by the West. That's why there will likely be a war as most of this debt can even be serviced much less be repaid.
Dr. Hill - it's a great question/point. Oviously it is the "U.S." - but we need to be more precise - the Federal reserve is a cartel of privately owned banks. We can not find out who owns the shares but it is widely believed that a handful of foreign banking interests own the lion's share.
The Anglo-American Banking Empire is based entirely on fraud and violence, but it surely uses the nation state merely as the vehicle to enrich the "real owners" of this country.