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Russia Asset Freeze Threat Sends European, US Stocks Reeling
Germany's DAX is tumbling this morning (and back in the red for 2014) as The Moscow Times reports Russian courts could get the green light to seize foreign assets on Russian territory under a draft law intended as a response to Western sanctions over the Ukraine crisis. Whether this is retaliation at Italian tax police seizing €30m in assets, including a luxury hotel in Rome and two villas in Sardinia, controlled by Arkady Rotenberg, is unclear, but the timing is highly coincidental and Rotenberg has been a longtime ally of Russian president Vladimir Putin.
DAX is sliding notably... (not helped by chatter about Russia "throttling" gas supplies to Europe)
back to negative year-to-date...
Russian courts could get the green light to seize foreign assets on Russian territory under a draft law intended as a response to Western sanctions over the Ukraine crisis.
The draft, which was submitted to parliament on Wednesday by a pro-Kremlin deputy, would also allow state compensation for an individual whose property is seized in foreign jurisdictions.
The draft law, published on a parliamentary database, would allow for compensation for Russian citizens who suffer because of an "unlawful court act" in a foreign jurisdiction and clear the way to foreign state assets in Russia being seized, even if they are subject to international immunity.
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Germany is finding out that being America's bitch can be very expensive. On the other hand, Germany is occupied territory with American and British troops still on its soil and showing no inclination of ever leaving.
Besides, NSA spying on Merkel since 2002 has completely compromised her.
I think Merkel's on the way out. I am busy wondering who her replacement will be, and especially how 'pro-euro' said replacement will prove to be.
Interesting observation considering she just won reelection handily.
Winning "handily" doesn't usually require a coalition government with your main opponent...
moronic move by Vlad. What happens when all the russian oligarch investments throughout the US, Europe, Japan, Australia, Canada, etc.. get nationalized? A lot of listings about to come up on the London RE market, that's for sure.
But freezing other people's assets is illegal... oh, wait.
Why can't we just print more assets? Seems to be our solution to everything, why not this?
That's gonna leave a mark....
Come this winter, there'll be a lot of folks freezing their assets off...
All wars are economic events. This is how a World War begins...with outright theft and no consideration for the Rule of Law.
The USA started down this path. The Russians are responding.
Do you have the stomach to see it through?
Unfortunately my stomach will be forced to see it through whether it wants to or not. It is out of my hands and I will be forced to play because of actions of a few oligarchs.
It is better to prepare for this inevitability and remember who is clearly at fault when justice is at hand.
Miffed;-)
Your stomach being out of your hands is probably just as well, from the point of view of basic physiology.
Get with it Tyler's, I can't believe this article doesn't mention retaliation for the Greek bail in. That ripoff pissed off a lot of rich Russians. This action by the Russian oligarchs is aimed at the western banking powers. Just put 2 and 2 together, oh I forgot today that equals 5
Better understand Russia's first celebrity president - Putin.
By the way, a Nobel Peace Prize nominee...for f@cks sake.
http://www.planbeconomics.com/2014/07/how-vladimir-putin-came-to-power-f...
Meanwhile they closed the Nuclear Loop making nuke waste a thing of the past ...
http://rt.com/news/188332-mox-nuclear-fuel-production/
This story is NOWHERE in the media, main stream nor alternative
Screw the markets. Putin should be cornholed and shot. We can't let that crazy homosexual run nilly-willy over all of Europe. If stocks take a dip, then so be it. Capitalism sucks anyway.
Um.. just WTF do the western "leader" maroons expect..
that the targets of their aggression will just roll over?
for too long they have been droning preachers and wedding parties. they are soon to find out what putting up a fight is really like.
http://www.zerohedge.com/users/doofus-0
Member for: 2 week 1 days
This The Doofus is a newly inbred batch of trolls at ZH board.
It seems they're mostly programmed to rejuvenate by every 30 days or less. Some familiar douche bag trolls already disappeared though... lol
.
"Fast fission reactors solve the problem of depleted uranium nuclear fuel on the planet. They can ‘burn’ not only ‘classic’ uranium-235, (scarce and already coming to an end), but also uranium-238, which is abundant, and expands the world’s nuclear fuel capacity by an estimated 50 times."
Well that should kill a few uranium mining projects throughout the planet!
Well, there's some good news for a change!
Note to self. Be more careful with the use of pronouns to prevent confusion as well as giving others a chuckle at your expense.
Miffed;-)
As with Chess, one would expect Vlad to have known months ago that seizure of Russian assets was always part of the US lead strategy, he is just moving some of his pawns into position in advance for a future time when a "significant" exchange of pieces may be required
Yeah exactly I wouldn't be crying for these Russian oligarch types getting their assets seized. Arkady is most likely going to be compensated for equal or higher value in western assets the Russians seize locally when it all plays out.
It's be fun watching when the Chinese McMansions and commercial RE get "Freezed."
Lots of free Loot there for the Gubmint to munch on tp feed the FSA with.
They won't feed it to the FSA probably hold it in escrow and use it as bargaining chips later on as Bingo Hammer stated. No bargain or resolution then you reassign assets locally to oligarchs, etc.
Chinese can squeeze balls to force the bargaining for the Russians and probably will.
Brilliant move.
Don't actually announce a sanction, just get a member of parliament to submit a bill and watch the chaos ensue as the markets react.
Then, at an appropriate time, say that it will not be enacted.
I wonder who made money by shorting this ahead of time?
@BKbroiler your narrative is wanting
The west has a lot more money in russia than vice versa. Remember the collapse of the soviet union? anyway it was a little noticed geopolitical event a few decades ago, after which multinationals all snapped up russian assets
aside from some russian oil money sloshing around in london, there has never been an equivalent capital event from russia into the west. The west has more to lose in asset seizures, the west has more to lose in energy dynamics, and the west is also proving itself an unreliable partner to other international onlookers.
any wonder why african nations are all giving their contracts to the East?
Squid-puppets a...,
Your summarization was short, but it was well done.
I would like to add that: Russia is the last place to party, alongside the Persian Gulf.
But do get ready, because it will be a short party.
It wasn't short or well done. Russian oligarchs snapped up those assets, not the US. Russian money goes everywhere except russia, because anyone who breathes the wrong way gets putinized. It's amazing how little factual evidence there is for any of the assumptions made on this board. This must be the intelligentsia of the russian trolling network.
Its not a matter of assets, its a matter of who is willing to accept the greatest pain. America will not, cannot accept any pain as evidenced by our response to military and economic challenges for the last fifty years. If there is no profit in it our policies will not tolerate it.
Italy lowers the boom?
I find that very surprising actually.
To my knowledge the USA has not seized any assets. And this is the first European power to do so.
Italy does have a big Navy. I don't see them going into he Black Sea this go around...but Libya is right there.
So is Beirut.
BKbroiler,
My take is that we are talking in circles.
Russia and American elites are manifestations of the same thing.
What is happening is that, US corporatocracy (financial institutions and corporations) CAN NOT get accesses to Russia resources, and its economy. So, US corporatocracy cannot indebt them while extracting their resources.
On top of that, Russia is creating a debt (bond) market through the BRIC’s. It means, profits will go to them, to the BRIC’s, instead US corporatocracy.
And these are hostile acts against the US.
"This must be the intelligentsia of the russian trolling network."
sorry intelligentsia of capital letter USA, this is not he.
Gee, you don't think that is part of the plan to consolidate wealth by both sides do ya?
Supposedly attibuted to Putin: "negotiating with Obama is like playing chess with a pigeon. The pigeon knocks over all the pieces, craps on the board, then struts around like it won the game."
Yeah, well....his Ruble has been slaughtered here.
Trying to blast an overland route to the Crimea isn't looking so good right now either.
I think Putin is fighting a war that's all in his head right now. If these borders start to be "re-rearranged" His West could look a lot different in a very short period of time. Finland doubles in size, Germany gets Silesia back. The USA lands in Konigsburg.
Romania increases by a third.
Ukraine truly does become independent.
Poland doubles in size. Of course if that happens they'll be on Moscow's doorstep. Talk about "huge tracts of land." "It's a straight shot from Smolensk to Moscow."
Germany: "Been there done that, maybe not"
Let's NOT forget who has the PHYSICAL Gold.
The USSA only has paper, hehe....
@ bingo hammer
I'm American and I don't think I'm going to see any of those asserts.
This is the banks war not mine.
"What happens when all the russian oligarch investments throughout the US, Europe, Japan, Australia, Canada"
Nobody in Russia is worried about the Russian oligarchs. Oligarchs ARE the problem in Russia. On top, as they're generally pro-Americans, chances are nothing will happen to them.
Were. Putin has played his nationalist card well, and pretty well reversed the firesale of USSR by Yeltsin and other Triboligarchs. Big Q&A is whether Vlad the Bad is 'Good', or is after all one of the banking shyster pals with big cash deposits who have to have it banked/transferred somewhere for it to be liquid enough to be mobile. Time will tell...if we get that far into the 'future'. Good watching here:
The Rise of Putin and The Fall of The Russian-Jewish Oligarchs (1/2)
https://www.youtube.com/watch?v=Q2Cl8lSv9Is
The Rise of Putin and The Fall of The Russian-Jewish Oligarchs (2/2)
https://www.youtube.com/watch?v=x2nNtynZAiI
How Vladimir Putin came to power (full documentary) Russia
https://www.youtube.com/watch?v=IpiZw1R8w-c
Vladimir Putin Full Length Documentary: The Putin System
https://www.youtube.com/watch?v=m5Rkom1RpKA
Totally wrong...Western oligarchs is want drink Russian Oligarch milkshake and vise-a-versa...where are you Boris?>
Somehow I have a feeling western companies have more assets in Rusia then Russians do in the west. I was reading somewhere where several big oil companies are exploring and drilling for oil in Siberia.
"thanks for the oil rigs, bitchez!"
-Vlad
Thanks also for the mapping and development work on the fields. Mayne Vlad not so dumb, eh?
So ? you give this move a ?; on t he chess board. analysis please; I disagree. for BK broiler.
I give this move a #$*&, because that's what it is. Despite ignoramus comments about US assets in Russia, the people with money in russia know better than to keep it there. Russian money is everywhere except russia. Freezing US assets will backfire like freezing US food imports did, it only raised prices for Russian consumers since only 8% of meat exports went to russia last year.
I know better than arguing with the Cult of Vlad on here, and some of his moves (earlier on) where fairly tactful, but this is just stupid. And desperate. You can put Putin on the list with Saddam, Gadaffi, etc..
If you know that eventually they are going to use the swift system and assset freezes to attack you anyway, you might as well get out ahead of it and make the first strike, which has the benefit of making you look like a strong leader. You also get to blame any economic troubles directly on western sanctions, and direct the publics anger at them instead of you.
Having a common external enemy is a great way to strengthen the unthinking masses resolve and make them more amendable to drastic change and hardship. Putin knows the west intends to cut Russia off before they are really ready to transition to a new asia-centric system, so why not use their belligerence to forment nationalism and garner popular support. Both of those things are going to be vital if he is going to survive the transition into the new system in one piece.
That's not analysis; it's ranting; but's that's alright. I guess we'll just have to wait and see.
Large Russian deposits/assets were already frozen once in March 2013. AKA Cyprussing (refresher: check the events and players: http://en.wikipedia.org/wiki/2012–13_Cypriot_financial_crisis).
Some commentators at the time proposed that was the real reason for rolling [Cyprus]. Since then (and perhaps way earlier) Vlad has known that the NATO encroachment in breach of the agreement between Gorbachov and Baker to not 'move one inch closer' to the RF in return for getting Ukraine nuke free, would result in him having to draw a red line, somewhere, sometime.
Fuck the EU Nudlemann and her NeoNaziCons have provided the bucket of red paint, at the same time as Putin's remaining 'oligarch' movers and shakers, rouble masters, Russia 1sters, Orthodoxy and 'Motherlanders' have rallied to ensure the survival of their country. No doubt in lockstep with the RF Military - including old timer hard liner Kremlinites - I would assume that there is a core of very dedicated chess players who know that this could be a game for keeps. Perhaps even an endgame.
Redline time is now (See Paul Craig Roberts and others on how bad for humanity and the planet this could turn out).
Would not be surprised that many there with assets will have them back in the RF by now (check high-end London property market) and are waiting to see which way this goes, as they know it's the best chance of preserving them against confiscation elsewhere on the US declared Global War Theatre/IMF/BIS attack. Kind of a 'shelter in place' preparation, and also a visible clear commitment to their future in/of the RF (ending in either a bi-polar geo-political carve up, or ash blanketed glass carpark). Witness RF acquisition of gold, alternative SWIFT, CC payment system, BRICS bank. And assume credit for oil from PBOC - 400bn deal in place - if financing get tricky or Rouble is crashed.
Many worldwide are fukking sick of the bully USSA annexing the planet's resources irrespective of where they are. The more obviously the lies, 'power plays' and blood sacrifices are playing out to predictions (Grand Chess Game, Oded Yinon Plan, PNAC), the easier it is to see the imperative of making a stand. Putin apparently told the post Yeltsin oligarchs to stay the fck out of politics, and they could keep their loot. Even heavy-hitters of the Tribe left, which would explain why Putin is fully scoped, and travels with all his own food and water. See links above for part of the story of how Putin apparently played by Tribe rules to get and keep hold of the reins in the reborn RF. The old Mossad motto (before 'rebranding'): By way of deception, thou shalt do war". Good advice also for Chess Masters. Plus judo practitioners learn how to use their weight (assets) to block or throw an opponent.
My 2c...
Peace.
The new oligarchs from Kiev will snap up the good RE deals in London and elsewhere
get nationalised!!!
So you admit that the west are predatory socdialising fascists stealing private property.
BK think this through and you will realize this is Great move for Vlad.
Money is power, Russian oligarchs get WEAKER if their assets are nationalized meaning less internal opposition to Vlad.
This is a deep game.
Russian Oligarchs are like Boyars under the Czars, they survive only if they are loyal or inoffensive. They are the ones Ukrainian Oligarchs fear because they could easily mop up the empires Kolomoisky and Poroshenko and Kuchma have built up.
Obama may be removred by Lloyd Blankfein or Jamie Dimon if not the Koch twins, but Putin is FSB with backing of Sechin and the crowd that knows the USA is an arch-enemy and will have to be fought, it is Medvedev that is out of the picture because of the West. Even Gorbachev backs Putin.
There is a US propganda line in its System Media which has the wish that Putin be toppled in a coup; the Americans are clueless in European politics - Thatcher was not toppled until 1990 but would have been in 1981 but for the Falklands
There is no friggin Comintern anymore you asshat. This is like the Warsaw Pact in reverse. Bulgaria is an interesting case...but they were created due to the after effects of the first Crimean War back in the mid 1800's.
They could create a very powerful Navy is Russia suddenly collapses again.
Actually it may be Putin's real intention all along: the oligarchs get taught an expensive lesson that moving their assets abroad "for safety" can backfire. Then they have to concentrate on working their assets in Russia, which should help Russian GDP.
Damn, this could cause Gold to go negative numbers
COMEX to zero, baby...
Everything causes gold to go negative.
So let me get this straight, on the one hand the Fed needs inflation to make debts payable BUT on the other hand it is selling short paper commodities to...lower prices of real things/make dollar strong etc.?? I am a little confused here....
The Fed does not short commodities or take other actions to make the dollar "strong", which you realize, is merely in comparison to other currencies. This is just "internet Wisdom"; in other words, bullshit. People on blogs "vote on reality" and if they get a group together that agrees on something; then it becomes "real". Of course, this is not how reality works. Blogs are full of internet wisdom. You'll have to do your own research, probably in books, and develop critical thinking skills to make your own evaluations. following the opinion of a mob that's too lazy to do their homework won't work.
Especially geopolitical bad news. Go figure. Up is down, peace is war, ignorance is truth, slavery is freedom...
Only paper shorts are paper shorts.
The Shemitah Year has predicted *ALL* market corrections, depressions, and pullbacks with 90% accuracy.
"The greatest financial turning points, peaks, or long-term collapses of the past forty years that have taken place within the biblical Year of the Shemitah or its autumn wake is 100 percent!
• Where there has been both a financial collapse and an economic recession, the period connecting their starting points has fallen within the biblical Shemitah 100 percent of the time!
• Thus, from the forty-year period beginning in 1973, every single one of the five greatest financial and economic peaks and collapses have converged, clustered, and taken place according to the set time of the Shemitah.
Cahn, Jonathan (2014-09-02). The Mystery of the Shemitah: The 3,000-Year-Old Mystery That Holds the Secret of America's Future, the World's Future, and Your Future! (Kindle Locations 1239-1245). Charisma House. Kindle Edition.
On September 17, 2001 the stock market experienced a 684 point drop or 7.1% which occurred EXACTLY on the 29 Elul of the last day of the Shemitah Year.
Exactly to the DAY 7 Hebrew years later on September 29th, 2008 the market drops 777 points or 7 percent EXACTLY on the 29th of Elul the last day of the next Shemitah Year.
TODAY FYI is the FIRST DAY OF THE SHEMITAH YEAR. It Starts on the 25th of September 2014 and will run until 13th of September 2015.
That's AMAZING! Does anyone in the global banking system, stock exchanges or money markets have connections with Hebrews? September 2015? That's exactly when the Arctic Ice cap is expected to fully melt for the first time in 10s-100s of thousand years, exponentially accelerating massive releases of methane that are already pumping into the atmosphere. Pity about that...Worth considering, if you're fixated on bits of paper, or even PM's. Sucessful investors plan ahead.
Not OT if Earth is your primary residence, but fuck it, keeps other shit in perspective:
Methane Gas Levels Rising Catastrophically Fast, Abrupt Climate Change Now Initiating
http://agreenroad.blogspot.com.au/2013/11/methane-gas-levels-rising.html
Guy McPherson—"How Do We Act in the Face of Climate Chaos?"
https://www.youtube.com/watch?v=nEGlYXumguI
Arctic Emergency: Scientists Speak
https://www.youtube.com/watch?v=c3XpF1MvC8s#t=27
The Arctic Methane Monster's Rapid Rise
https://www.youtube.com/watch?v=a9PshoYtoxo
ARCTIC METHANE MONSTER'S "Insane Level of Disaster" Dr. Guy McPherson
https://www.youtube.com/watch?v=GTrvj9V5l5s
Are Siberia’s methane blow-holes the first warning sign of unstoppable climate change?
http://www.couriermail.com.au/technology/are-siberias-methane-blowholes-...
Peter Ward: The Medea Hypothesis
https://www.youtube.com/watch?v=ICbrSgfyQqQ
Peter Ward Our Future In a World Without Ice Caps (CO2 & Fossil Records lecture)
https://www.youtube.com/watch?v=HtHlsUDVVy0
Myth of Sustainability by Dr. McPherson
https://www.youtube.com/watch?v=SIP0O1NJVZA
Humpty Dumpty Tribe rant:
Climate Scientist: "We're Fucked" Over Methane
https://www.youtube.com/watch?v=YKwc2rOvoEs
Nothing like being totally delusional and hysterical!
Its not the methane you should worry about, its the hydrogen sulfide that comes along for the ride.
cnmcdee,
Please, don't stop. Tell us more and thank you.
Is this the trigger that will bring the crash? The equities market say so today.
read Manager magazine this week - it says how fed up German business is of the socialist utopia she is building and is investing abroad. Die Welt today talks of Germany on the skids and heading downhill fast.
It is so evident in Germany with a sluggish sense of entitlement and rentier mentality among employees convinced The State is their trust fund
" rentier mentality " In an attempt to mimic wall-street, it seems the entire world, including now labor, is seeking to become a rentier class. Skimming wealth is now THE economic model. A model destined to take the world economy to hell.
Would you be talking about skimming the bottom..,
or the top?
Skimming the bottom sounds an awful lot like "Controlled descent into terrain!"
the economy that's fake anyway
there's nothing wrong with regular people wanting to assure a minimum standard of socio-economicservices for themselves and their neighbors in the context of a global disaster capitalism game.
Assure, insure or otherwise guarantee? that should work out perfectly. How about we assure, insure or guarantee a minimum productive work output? The only way to assure even a chance of survival is to be prepared and as self sufficient as possible. Anything assured by government will lead to disappointment and possibly disaster.
The Merkel should remember the reason that NATO was created, as a brainchild of the (Banker & British) Elite:
1. Keep the Americans IN, 2. Keep the Soviets OUT, and 3. Keep the Germans DOWN.
Whenever any of these 3 Primal Reasons are jeopardized, plans are put into place to take Corrective Action. Germany getting too powerful (relative to the Brits and to a lesser extent the French) is "not acceptable". And Frankfurt threatening London as a Banking Capital is "completely unacceptable" to The City, The Crown -- no matter what the public rhetoric and facade may convey.
The trouble with the Germans is that (ever since Hitler, who had a soft spot for Aryan Aristocrats) they STILL persist in the delusion that the Anglo Elite actually give a Damn about them -- just because they share some distant Feudal/Aristocratic bloodlines. Hey Germans, haven't you heard? Vampires wipe out each other all the time.
The German elite is very well aware of what you say and acts accordingly. Why do you think Germany keeps such a low profil in military matters? Stupid German leaders gave the Anglo-American empire the chance to wage war against us twice in the 20. century, this will not happen again. We Germans just have to wait till the Anglo-American empire falls apart because of it´s inner contradictions.
Astute as usual. After almost a lifetime of having German friends, I still don't understand their teutonic soft spot for the elusive and mythical "honourable englishman". They do exist (Ahem, pointing at oneself), but not in any numbers to make the slightest bit of difference to the cesspool of deceit that characterises my home town: London.
Germans are mostly good people. I dare say that as with most of us, they project their own values on to others and that is the reason why the Germans have thus far sided with the West in the mistaken belief that our governments are "exceptional" and "good", instead of delusional and utterly evil. Merkel being compromised by the NSA and their press being as polluted with lying scum as the rest of ours (Perhaps a little less) doesn't help either I suppose. It's the same story throughout the American hegemonic empire whether in the East or West - there are growing numbers of people waking up to reality, but the rest are blinkered by a lifetime of cultural brainwashing from the popular press and film media about "Good people" murdering "Bad people", always hiding the wretched truth of broken lives and the bodies of children that litter the battlefield in every military projection our governments have undertaken in the pursuit of vast profits. Ostensibly for our protection from the very people they created and funded.
The Germans are too polite to say so, but certainly the ones I know are sick of the lies and are well aware of how schizophrenic muredering propagandists can be. They were victims of them twice - once by Hitler and then shortly thereafter by the West who portrayed all of them as monsters instead of victims beguiled by power, wealth and the insanity of arrogant exceptionalism.
Great response, friend. Having lived in London (went to grad school there), and worked in several Western countries and traveled on business to a bunch of others, I have met GREAT people everywhere. It truly is a human constant that you can find plenty of people of the "good-bad" spectrum, no matter where you go. Under all the layers of culture and religion... People are people.
It's ruthless and cruel ideological extremists and sociopaths that I worry about, which abound in too many places and are making the world a worse place each day.
The only effective and lasting remedy that I see, is that People need to (a) Wake Up, and (b) Take Action, to reclaim their governments and countries. IOW: We need regional and national Bottom-Up Solutions to the world's Top-Down Problems. IMHO.
It will never happen as all western and civilized societies have outlawed "terrorism".
I agree .The only gentle english is a dead one.
Very good.
Polarization of a group is a basic strategy of the psychopathic elite. Divisiveness is the first step to gain ultimate control. Those who are not mindful to this ploy fall easily in its trap and, unfortunately, the numbers are vast that play Pawn.
I was reading some letters from William Dodd to Roosevelt expressing his frustration over the lack of acknowledgement of the growing threat of Hitlers rise to power. It was clear by Roosevelt's response, he was influenced by the pressures to maintain the flow of money from the treaty of Versailles into the bankster's pockets. Suffering of the people was really of no consequence in this game of chess. And the band played on.
Miffed ;-)
Wouldn't it be nice if the German's came out of their trance and told the EU to stick the EURO where the sun don't shine ? Yes; it would. very nice.
for whom? Germans? we read often this request about Germany to drop the EUR - with or without EU exit - yet never with an analysis of what would happen
fact is that if Germany would reintroduce now the Deutsche Mark, the BundesBank would immediatly peg it to the EUR, and have to defend this peg
best example for this phenomenon is the CHF. ask Swiss producers if they think the peg should be abandoned, but not without covering your ears first
people that moan about the EUR forget that before the common currency, multi-peg arrangements among european currencies were the norm, not the exception. a logical result of the USD hegemony. they also forget that with a Deutsche Mark, speculation pressure on a rise of it would be immense, possibly overwhelming
we are in a heated currency war environment on the downward leg. the current "winners", in this kind of situation, are those who can devalue, best without expending manouver room
the British Pound is a completely different proposition, it can be quite independent thanks to the negative balance of trade of the UK
so I ask you: why should Germans go back to the DM? so that you can place bets on a DEMEUR rising? or so that you could then moan about the peg? or to read ZH articles about how exposed the BuBa would become, buying immense amounts of EUR for DEM?
it goes all back to one thing only: price stability. for good or for bad, that's what the EUR is delivering, at the moment, even though most of the media portrays it as a danger of deflation. and price stability means production efficiency, the better environment if your economy is based on production instead of FIRE speculation
of course, if you are asking for a DEM because you think that the BuBa could succesfully depreciate it versus the EUR, that would be a completely different matter. are you asking for a weak DEM? weaker then the EUR and the USD? so that Germany can export... moar?
Ghordius, I am sure you know infinitely more about central banking than I do ( which isn't hard after all ), but you posts are very political imho. ( let's say you sound French, despite your excellent command of English. I hope you do not consider that a blow below the belt. You have always refused to reveal your nationalities, probably in an effort to come across as defending the general European interest ).
"BundesBank would immediatly peg it to the EUR, and have to defend this peg"-->Not so sure. What would happen if they did not ?
"best example for this phenomenon is the CHF"-->as far as I know CHF is NOT pegged to Euro, they have put a limit on how strong the CHF can get, so only an upper limit if you like.
"it goes all back to one thing only: price stability"==>Why would Germans want price stability, and not want, and be entitled to, falling prices ? Does keeping the Euro "stable" require a continuous wealth transfer from Germany to others ? On a related note : does Germany, as a nation, really need those trade surpluses ? Or do other people ( foreign shareholders come to mind ), think they need that ?
You refer to the EMS before the euro. As far as I understand other nations felt the need to peg to the DM, not the other way around.
I hail from a small European nation and I do appreciate the need to integrate ( possibly contain ) Germany, but do not spin it as if Germany needs the Euro from an economic point of view. It rings a bit false. The real potential use of the EUR is in countering US hegemony. That would be a joint, European, effort, and is NOT the reason the Euro came into existence. If the Euro is used to drain Germany and as long as Germany is not given more political power, they might as well return to the DM without major negative economic consequences imho. Germany has options, and that gives them bargaining power. I assume you probably feel a need to nip in the bud this notion. ( like Angela Merkel describing the Euro as "alternativlos". The foundation of Alternative für Deutschland followed ). Another option : Ever thought of alternative currency unions ? Neuro : Germany, Netherlands, Finland, Austria, ( Belgium ) ? What is the likelihood of needing to peg that currency ?
And last but not least, can you finally answer the following question : Is Germany a sovereign nation ? Yes or no ?
Since Nato and friends have no respect for Syrian airspace, I would not be suprised if Russia closes down its Airspace to European and British Carriers. It would bankrupt them all.
Further more if Assad is gone I think Europes stable gas supply is gone and they are now permanetly in bed with the Arabs. Russia will waste no time turning its pipelines East. Not good.
if Russia closes down its Airspace to European and British Carriers. It would bankrupt them all.
Ridiculous.
There was an estimate that it would cost Euro airlines 1+ billion a month to fly around Russia. These are costs that they cannot pass on to consumers who would have a choice to fly non-sanctioned, Asian airlines.
Yes. It can bankrupt them.
Must be nice having a huge chunk or the world's land mass hahahah...
To Blind Monkey (from the same source you quoted, reuters)
Avoiding Russian airspace would probably be 25-50 percent more expensive than paying fees for transit, said Russian aviation consultant Boris Ryabok, estimating European airlines would lose around $100-200 million per year, less than the cost to Russia of the lost fees.
http://www.reuters.com/article/2014/08/05/ukraine-crisis-russia-airlines...
If you wish to fly - say - from Frankfurt to Tokyo, how much more would you pay so as not to have a flight that is 4 hours longer?
100% of business-class would switch to Asian airlines at the drop of a hat. Get real.
Except Tokyo is in Japan, and Frankfurt is in Germany, both of which would not allow flights from their airspace to violate sanctions. Except for that your theory is air tight.
To defeat a nation or its government you must defeat the will of its people. Does anyone here think that Russians will ditch Putin before any of the EU countries or America will ditch their leadership? We seem to only pick fights with the most intractable people. Its almost like we want to lose, or at least never win.
We have always been at war with Eurasia.
it is truly surreal to watch fictional novels play out in real time.
No worries. Here is my source. Since it ain't my credit card they are using I don't have an exact number. Let's agree that it will be a lot of money. The $1.3 billion seems high since on rereading it, it looks like the source cited said $1.3 for 3 months. Still a crap load of money and I stand by my logic that the extra costs cannot be pass to consumers.
http://www.zerohedge.com/news/2014-08-05/russia-plans-airspace-blockade-...
Citing sources from ZH to back up a ZH point is kinda like... well you get it.
According to reuters, it will cost russia more than europe. Reuters must be in on it.
Well Fuck! If REUTERS says it is so, then it must be!
Hey everybody, what are we doing here? Let's go to Reuters!
The time has come for Europe to grow some balls and tell Obama " You want russia, then go Route Alaska"
But, but... isn't that a form of Airspace Terrarism?
/sarc
it's also a "very good thing" for all those investments in hubs and airlines in the Gulf States. immense investments, btw. who will win that commercial war? some are betting on the countries with the future cheapest aircraft fuel
The singular surprise I see in this is the apparent belief that in economic warfare, your opponents won't fire back. It apparently took Vlad a little time to figure out how to effectively shoot his guns, but now that he's figured it out - watch out - this dude isn't afraid to go for your jugular. If this whisper of a threat took the DOW down 260, what's going to happen when he actually closes the gas spigot to Europe? Beware Mr. Obama, your overreach is generating blowback and your strings that hold NATO together are a lot more tenuous than you think. Back off bro.
He has to get permission from his puppet masters to back off; or they may just cut his strings.
"NSA spying on Merkel since 2002 has completely compromised her"
Correct. She needs to GO for this and other reasons. Once they know her private thoughts, emotions and instincts, she is SO compromised that she is USELESS to German interests. Short of Merkel having a Divine Epiphany, or doing a complete REBOOT on her mindset, Merkel must GO.
It goes w/o saying that her successor needs to be a Total German, and not a Bankster's Bitch. Hopefully the Germans are smart and independent enough to ensure that. Of course, if they are dumb or weak enough to build Subs for Israel for free*, then they deserve to get Fudge-packed.
* 5249081 Bunga Bunga Germany gives the weapons actually for free, like submarines to Israel: http://whiteresister.com/index.php/stories/138-germany-gives-israel-nucl...
-264 on the Dow Jones; LOL. where are all those people who told me the market could never go down ? Oh, yeah; they took the day off, sick. Well, can't blame them for that. I'd be sick too, if I were them.
Thats right being Americas bitch can be expensive and they are finding out and will find out even more. Also the reason for having those forces in Germany isn't because of Russia, it's to make sure Germany keeps playing nice if you know what I mean.
The Workings Of The Shanghai International Gold Exchange, Part One
https://www.bullionstar.com/article/the%20workings%20of%20the%20shanghai...
yeah that fucking shit Obola spewed out yesterday at the UN probally has something to do with this
Sure sounded like a Declaration of War to me.
What the fuck did he think the Russians would do ?
Obozo is lucky he didn't wake up with a 100kt breakfast in his bed.
Putin has more patience than me, I would have sucker punched the bully way before now.
It is not time yet.
or just a horse's head.
I wondered if anyone would get that reference; I guess someone did.
Let's not digress with Obola's UN stunt, but that was the First Shoe to drop regarding Global Sanctions on Terrorism. Note that the Russians and Chinese went along with the US Resolution.
I will revisit this in the future, because I'm certain that this will also be used in the US for "combating potential Domestic Terrorism", in all sorts of creative ways -- including more Capital Controls and Gun Controls.
You have to be able to enforce them. Look if they can't find these guys before they leave or freeze bank accounts that would actually shut down the whole ISIS mess what makes you think the UN will be able to do a better job when they SWIFT system is completely backdoored along with all the banks.... Let's face it someone buying a couple of million dollar's in black market oil at $40 a barrel unless they are hiding the payments in ransom money it is going to show up somewhere in the system. They don't want to find it anymore than they don't want to shut down bank accounts tied to ISIS since the IMF can't keep track of how much they are owed later on in interest to collect on.
The Islamic charity funding networks are a different story though. UN ain't enforcing or shutting down shit as far as that one goes.
For the moment why not go along.
They know the US will not be able to resist going way beyond any mandate.
The camels nose is inside the tent.How long until the rest of him is as well ?
The whole thing is a trap, and Uncle Scam is falling into it, or should I say the MIC is.
Hubris will kill you.
Don't be so "certain", of so many things. Just a friendly suggestion.
Thank god trade wars never turn into shooting wars.
BP and exxon assets next?
The statement seemed to imply 'state owned assets' so BP etc not included.
Putin will mirror the targeted sanctions that Barry has thrown up against him. He will try to craft the sanctions to hit those closest to Barry's inner circle. Golf course owners.
LULZ. blew tea through my nose.
May your putting greens turn brown!
Oi Vey !
So, this is... Bad for EUR, but Good for USD?
Who woulda thought it... that the "Fuck the EU!" Nulandized Europeans would have to pay the Tab for the Neo/Zio-Cons? Never woulda guessed it.
Wait, you're telling me that during times of political crisis, national goverments might NOT respect foreign property rights?
Geesh, who'd have thought? I do hope someone memo'd Simon Black.
Something one learns very early in school when one goes to a rural public school. If you want to land a punch on someone be prepared to accept the same.
Knowing how to block a punch is handy too.
Don't "block" punches... Blocking just gives the other guy another go at you.
A better way of putting it is knowing how to "respond" to a punch. Hang on... this guy tells it in video far better than I can in words:
https://www.youtube.com/watch?v=lVWgbDDxSVE
He's demonstrating with a basic karate technique but that doesnt matter, the concept is the same for all fighting "styles". A "block" stops you getting hit in an important area yes, by one hand. Your opponent has two and by trying to hit you with one has already prepared the other side to hit you. All you've done with a block is delay him by 1/3 of a second from attacking you again and you're no better position than when he tried to hit you first time. Respond to a punch dont block it.
This guy tells it even better-er.
https://www.youtube.com/watch?v=_j1-xQA_ufE
NotGrokkingIt - Does he have a franchise operation? How many YellenBucks to start one in my neighborhood. I live in East Harlem by the way and I think those Jew-doh and Nin-Jew Chops would really inspire my friends in the local crips.
If the other guy want a Bunkai, he is liable to get a Bangdie.
I'm partial to the latter, as a core belief in my Religion: My Right to Life.
If this legislation get enacted, and worse it gets acted upon, then lots and lots of German investments throughout Russia could be nationalised.
Ouch!
Good. Justice will be served.
You don't think US assets like GM at Opel might be the target ?
I am thinking that this legislation would allow Russia to "pick and choose" who they favour or not. The sky is not necessarily falling for everyone. Mind If I was a US/UK company I would be playing very nice.
German not so much. German industry does not want sanctions.
So tit for tat shall we say. Giving legislative authority for "targeted sanctions" to borrow a phrase.
Gee, ya think. with all that left over "love" the Russians have for their German "neighbors"?
The SAME LOVE the Germans have now for their European Brothers, the Greeks and the Rest of the PIGS.
Not Quite the same "Love". Not every family in Germany has a family member that was slaughtered like an animal by the Germans; as do the families in Russia.
The most dangerous man on the planet is Barack Obama, as his sheer incompetence is causing everything he touches to crumble!
heh, I've learned to count my blessings, Eireann.
Only thing worse than an incompetent psychopath, is a competent one.
I'm concerned that in the next 3 years we will find out the difference firsthand. I have to say I'll be surprised if Barky makes it to the end of a second term without being removed from office, but I hope that doesn't happen. Nowadays, I feel that he is the devil we know.
If this whole maryann goes to hell in a handbasket, I damn sure want O'bomb-a to get full credit.
If we have President Biden I will be forced to watch the news every night with fresh popcorn. It will be the best comedy show on.
It's not incompetence. It's intentional.
intentional and ordered by the REAL controllers of the country...
"give control of nations money supply and i care not who makes its laws...."
will it ever sink in for fucks sake......
Do you really think Obama is sitting in the white house with a cigarette hanging out of his mouth strategizing all of this????
You gotta ask yourselves what do the Oligarchs want and then the picture will become clear.
Obama is a fucking puppet distraction
Come on, guy; he just reads the teleprompter. he didn't plan the Bay of Pigs, did he ? Hmm ? this fuckfest has a patented flavor to it alright; but he didn't invent it.
Good... The DAX is long overdue for a smash down, like the rest of the equity markets. The German macro has been lousy over the last couple of months.
How'd you like the Dow today? pretty entertaining, eh?