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US Stocks Slide, Ruble Plunges As Russia Prepares Capital Controls
Just days after Ukraine began discussing capital controls, and Russian lawmakers passed a bill enabling asset freezes, it appears Russia has reached its limit.
- *RUSSIA SAID TO WEIGH CAPITAL CONTROLS IF NET OUTFLOWS INTENSIFY
The Ruble is plunging towards 40 to the USD (CB intervention levels), US equity futures gapped lower, and European stocks are sliding.
As Bloomberg reports,
Russia’s central bank is weighing the introduction of temporary capital controls if the flow of money out of the country intensifies, according to two officials with direct knowledge of the discussions.
Such measures would be preventative and used only if net outflows rise significantly, the people said, who asked not to be identified because no decision has been made. They didn’t give a timeline or a level that may force such a move, saying they are looking at all possible scenarios.
The discussions are the latest sign that U.S. and European sanctions are hurting Russia and rethink policies the central bank has sought to avoid. The Economy Ministry last week raised its estimate for this year’s outflows to $100 billion from $90 billion. Russia hasn’t had a net inflow of private capital since 2007, the year after lifted restrictions.
Central bank Chairman Elvira Nabiullina, a former economic aide to President Vladimir Putin, said in an address to the government on Sept. 25 that “introducing capital controls doesn’t make sense.”
Still, if trades restrictions -- such as the U.S. and EU sanctions and Russia’s retaliatory measures -- are prolonged and the tax burden rises, capital outflows will intensify. That will push the regulator to shift its focus more toward ensuring financial stability from fighting inflation and use various instruments “including non-standard” means, Nabiullina said.
The central bank’s press service declined to comment. The Finance Ministry isn’t discussing such measures, Svetlana Nikitina, a spokeswoman, said by text message.
US equities gapped lower...
And the Ruble plunged...
- *RUBLE WEAKENS TO BOUNDARY OF RUSSIA CENTRAL BANK'S TRADING BAND
- *RUBLE WEAKENS TO LEVEL WHERE CENTRAL BANK SAYS WILL INTERVENE
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Capital controls in Russia? So, same as it ever was...
We didn't start the fire
Russia Prepares Capital Controls
Spot the trend.
So it's all going according to plan then, including lower crude prices? Problem is, Russia will come through this and be much stronger at the other end of it. More short-term poorly thought through strategy...
"Tell Vlad I'll have more flexibility after the election...."
We will transmit.
"Excellent job, Agent Haffblack."
yes a huge change... .4 ... stop the presses this is HUGE!lol
yes a huge change... .4 ... stop the presses this is HUGE!lol
Bitcoin starts to gather momentum.
Yup, time to gather up my bitcoins and head to the bunker. Oh, wait...
@ $374.88?
Fuck that - It's all you. . . and Gh0atrider I suppose.
Or has he finally embarassed himself into another new identity?
Momentum? In which direction?
Here we go again, it's daily now, with a half assed, one sided story about "Russian costs"!
Printed and created for the Wall Street bankers and DC stooges, who then can sit around the lunch table and pretend shit "is going as planned"!
Russia is leading the way thru the wilderness of de-dollarization on this planet, of course there will be fucking "outflows" of USD as the capital flees the old system! What the story doesn't say, is what the "inflows" of non USD assets are and have been over the last 6 months or a year?
Is it going to be chaotic, of course it is, will there be hardship, you god damn right, and Putin has said so, told his people to prepare and get ready!
Meanwhile in the West and US, they deny anything is happening at all, and don't worry be happy, spend money like there's no tomorrow, and big daddy government will always protect and provide for you, no need to do anything different!
"We didn't start the fire"
-1 for the Billy Joel reference. Please....
I prefer "Symphony of destruction".....
This is like that low rumble you hear when a far off storm is approaching. The clouds have been darkening for a while but that noise is unmistakable. It's coming.
The real fun begins when / if they detach from the SWIFT System.
Shit, the west and the U.S. has pretty much said "fuck the SWIFT system" already.
Perhaps but all roads (re: money) still lead to Brussels. With control in Basel.
Like you said, the calm before the storm. This U.S. is a global bully that has basically just said, "I am going to do what I want, now what the fuck are the rest of you going to do about it?"
Everyone else is ignoring the bully (in so much as they can) and going about their business. Interesting times, great opportunities and risk abound.
Speed doesn't kill, its that sudden stop at the end.....
and gold still negative
Not in € :-))
Costs?
Did you mean "Coats?"
When a tetrad of nukes explode high above the atmosphere of the US THEN you'll know that Russis has reached its limit
Facebook will still work, right?
Nyet.
Should be able to download one final screen shot.
So how much gasoline do you reckon is prudent to have on hand for the generator? 50 gallons? 500? There isn't enough and I should have Pb instead?
Capital controls? If you were Russian, wouldn't you like to own some gold now? Probably better than USD in Moscow...
GPRO up another 5% in the premarket, next stop 100.
PE still under $300. I'm sure everything will be fine.
???
Janet? Is it you?
What's a PE?
What about profit:equity? Where are we at with that one?
LET'S GET READY TO RUUUUUUUUUUUUUUBLE!
Well at least this site nailed it with this one. U.S sanctions would absolutely backfire and hurt the U.S instead and here we sit with the dollar crashing and U.S markets absolutely cratering and capital controls are initiated while the almighty Ruble climbs ever higher while the world flocks to Mega cap russian stocks and Russian Bonds. Checkmate Putin. He is the man!
WHOOPS
The RUP heading towards 40 does not mean it is strengthening -- rather the exact opposite.
This is why I stopped posting.
You did?
My bad. Sarcasm over text isn't my strong suit.
polyester suit
ekm said it was because you decided to focus on your career singing doo-wop around trashcan fires. He said you got a new leather jacket and everything.
doo-wop bands are on board with the banking lobby but leather jacket wearers are on the side of the mic. I can't lose.
later guys. Have a good one.
I've always wanted a T-72.
For the commute....
Can't be too safe with all thats going on in Mkssouri
.
Remember us little people when you're out Cruising with Ruben and the Jets, fonz.
if you're bailing fonz, then thanks for the lulz and the pearls of wisdom. you'll be missed. take care & good sailing.
Glad to see you back Fonz! :-)
I don't even know what to say. Other than, "welcome back to the nuthouse."
RIGHT OUT OF THE GATE. Not even a moment to catch your breath and somebody takes your post just dead wrong.
Golf clap for all involved. Fine work, gentlemen. Fine work.
lol. This place is entertaining if nothing else. Thanks.
>> I stopped posting.
You and a lot of other (most) decent people. I tired of reading the articles but kept coming back for the replies in the peanut gallery. That lost it's appeal also. I've only recently been skimming the group to see if anyone interesting remained to make it worthwhile but the signal to noise ratio is unacceptably irritating. It's good to run into one of your post. I'm sure it's adios.
We're gonna set up a donation fund so we can get Robot Trader's Mom to give handjobs to disgruntled long time posters.
Bad things don't seem quite so bad after you bust a nut.
Fucking A, I should be a consultant!
pods
Where is Francis Sawyer, and who did he upset so that he was banned?
He was being sarcastic....
fail on my part.
Hans:
Don't feel bad - it was Fonz' resonsibility to put a /sarc at the end of his post. He's the one who screwed the pooch.
He's been gone so long that he has missed the culture change. That's what he gets for standing still in time - while everyone else is keeping in step with the spirit.
-30-
What did you mean by this? Is this a pre-coffee, post booze binge post?
Fonz, there are really two markets. One, which the US is king of, is the debt/financial market. One which is seen on every headline across the world, buoyed by the FED largesse.
The other is of real, tangible products.
What Russia (and others) might bring about is the fall of the funny money market and bring to the front the actual market for physical materials, products and energy.
Many countries around the world are tired of seeing goods cross the sea only to have promises to pay returned. Many smaller markets are developing that trade real goods. And the US is losing the ability to squash each and every one of them.
pods
Pods all that is left of me is a sarcastic douche who is trying very hard to just enjoy the outside world a bit more lately, so I am on my way out right now but the only issue I have with statements like "Many countries around the world are tired of seeing goods cross the sea only to have promises to pay returned. Many smaller markets are developing that trade real goods. And the US is losing the ability to squash each and every one of them."
is that I see no proof of it. But maybe I am looking at it from the wrong vantage point. I admit thats possible All the best to you and yours man.
You too man, don't get wound up too tight in this. I was at the beach trying not to get bit by a 5' shark while slightly intoxicated when you "let out the demon."
The big news about Russia/China setting up an alternate to the SWIFT system will be a flop, but energy deals will threaten the current status quo.
Everyone needs energy, and that need will chip away at the USD eventually.
Energy is what will do it. Either Russia/China or ME falling out.
All the best to you are yours as well fonz!
Just remember, everyone is an asshole sometimes. :)
pods
Pods:
Which proves once again that everyone wants to be friends - it's just that some of them are your asshole friends . . .
-30-
I was so good at it they put an "A" on my hockey jersey.
pods
Yup.
How's all that gold Russia's been buying relative to the Ruble?
Welcome back.
Can't believe the US is actually winning this but for now they are. Absolutely galling but everything that has transpired inthe past six years has been so.
When will the rest of the world fight back?
That's the benefit of having the world's reserve currency and the military to back it up.
<- Fed will save the ruble
<- Fed won't save ruble
It's OK. Gold is cheaper for them this way.
The weaker the ruble the more gold costs, do you use the new math?
Probably that fuckin common core.
:/
*yawn* One big KABOOM and all indicators will imediately reverse course.
William Dudley of the NY Fed trading desk in full control of the markets.
DP
All the rich Russians take their money out of Russia.....that is why Russia does not do so well..there is no re investment....its all out of the country....because they know that at any point in time...Putin will take it if he wants it with some trumped up charge....
Reminds me of the olive grove story. A man has an olive grove with twenty nice trees, but he has enough land suitable for growing to raise 200. A tourist asked of him why he did not grow more trees and improve his lot in life. His reply was simple, if he had that many trees someone connected to the oligarchy would simply claim his land and take away everything. Sad but true...
Most of the "rich" Russians stole their funds back in Yeltin's time.
Last Olympics was pretty good go at raping the treasury
fuck you youngman.
what did the rabbi in goldman sachs do with libyas sovreign wealth funds
your kosher tribe really are fucking vampyre.
typical yahudi blaming victims for rape crimes
Putin is in on this.....he's just another nwo oligarch/puzzle piece.
Nice to see Putler suffering :) I hope Russia gets another 1998 Economical Crisis and kicks that piece of shit midget out of the office. Go sanctions!
Ignore the Putlers co*ksuckers & RT brainwashed conspiracy nuts on here, Putlers economy is very weak, their military budget is almost equal to 1 Nato country such as the UK. Their GDP per capita is one of the lowest in the Europe
And 80% of their economy is their oil and gas.llllllsdldld....and if those prices drop..they are in big trouble....
Young:
If oil and gas prices drop, they cut back supply; forcing prices to rise because there is no alternative product to replace oil and gas, a la OPEC (Remember them?)
With their big hit in the Artic, Russia is headed for a century of economic power unseen since, well, since forever.
The whining in America is because the standard of living is going down - you don't hear that in Russia because the standard is going up, relative to the Soviet days - which many still remember.
Add to that the fact that Americans have been diluted in their patriotism by illegals who really want to hook the SW US back onto Mexico, while the Russians are more enthused about being Russian than ever before.
The trolls can say what they want about Putin, but reality is that I'd take a psychological profile like his any day over the psycho sociopath in the WH any day. And I'm confident that most Americans - as opposed to the illegals - would also.
BTW, with the revelations of Obama's non-participation in national security matters - favoring golf, drunken parties, fundraisers, and such over the responsibilities of office, when is Obama going to be impeached for misfeasance, and malfeasance in office . . .?
Oh yeah, that's right, he's Black. "Can't touch that."
-30-
Drop price increase production, budgets need funding.
OPEC always has quota cheaters on low price
It's the US Fed, Wall Street and the ECB vs the BRICS. The banksters want to destroy a runegade country like Russia. Russia isn't following the plan.
Is this the moment when Putin calls Xi on the bat phone to unleash the UST nuclear option? And that enables Shanghai to take over the gold and silver fix? To finally trigger the derivatives dominoes and #Dollar death ?
Haven't China and Russia been doing that already? The Belgium mystery buyer? Is it really gonna be a nuke or just a conventional weapon?
Good, at least now I can pick up an AvtoVAZ I've been wainting on the cheap.
Yeah, capital controls always work. People never learn anything.
Whats going on, I thought President for life Putin was god like. With wave of his strong bear like hands he can do anything. No problem for the chess master of the universe, he will make this pesky monetary issue go away. Or does the rest of the actually matter?
Wait, b.b.b..b.bbbbbuuut RT and RIA!!!!!!!! In Russia everything is great and no crisis there, Putler the great master of everything.
You must be a big fan of cnbc, eh, sweetie?
Cookie?
Or otherwise known as EXPROPRIATION OF OLIGARCHS.
So, where are those pooooowerful bankers telling Putin what to do?
He is killing them and expropriating them.
So is Jinping.
look risingsun,ekm1 and youngman
3 rabbis together
hide your children and run for the hills before talmudic rape time.
You are just getting boring, sir
We need some new fun.
"Russia hasn’t had a net inflow of private capital since 2007"
You cannot treat money as you would a whore, money is noble as it is the concrete manisfestation of mutual trust and respect between two parties. Money will simply leave by hook or by crook capital controls or not.
How long til the ruble/yen/dollar swaps kick in and boost every market to all time highs. Yen/Dollar carry trade is so passe.
The more I read about the West V. the East the more bitter I become. I look upon the financial system with much disdain these days. All the Tit for Tat between the US and Russia reminds of the NFL. Corrupt to the bone, most every game is rigged, and the money just keeps getting sucked right out of everyones behind. But hey, at least we all have a team we can really get behind and cheer them on.
Wonderful summary.
"Tit-For-Tat"
"Corrupt to the bone"
"the money just keeps getting sucked right out"
"A team we can really get behind"
So money is leaving Russia to go where - the stock market? Paper gold?
The US has the best fake economy in the galaxy. I'm not so sure that Russia is worse off in the long or mid term getting off FRN-heroin.
Lots of pipe to lay in Central Asia, yet....
Any of my junkers have a coherent argument going to the idea the US economy is in good shape? Love to hear it...
what I see is an economy based on trading around debt, propped up by the reserve currency status which is eroding by the moment...
Plenty of deals have been made between Russia and the BRICS, and others, including in South America.
Short term bad - sure. But why mid term, geniuses?
Since 1971 Oil is Gold.
Russia has plenty.
Gold is only good for trade.
Interfering in everyone's business is bad for trade. Making the emerging world think you have the will and desire to kill and invade them if they don't do what you want is bad for trade. Being a bumbling, arrogant, golfer, is neutral to trade...but encourages bandits.
Making people in the first world - your PRIMARY CUSTOMERS - think you have the will and desire to kill them or invade them is even worse for trade.
Stupid chess move.
Too much Machiavelli in Capitols, not enough Golden Rule.
<--Putin is working with the western oligarchs to create the New World Order
<--Putin is anti New World Order
Putin is both out for himself and a Russian nationalist. He doesn't want to tear everything down, but he wants a bigger place at the table, and less US/UK dominance of... everything.
Now if you're Brandon Smith - you take this to mean he's "controlled opposition."
But if you know anything about how the Russians look at the world - you don't. The ass-raping by the oligarch set Russia back by years. Neocon efforts to destabilize and weaken Russia have been unremitting. Russia will play ball if allowed to, and if the game isn't rigged against them, but they will do their own thing no matter what.
Putin's betrayal of the oligarchs was to the great benefit of the Russian people. The theft sure looked like an organized conspiracy by people backed with Western cash...
So when you say "New World Order" - what do you mean? The banking/corporate interests that stole from the Russian people and took the wealth out of the country, or the interests that will steal from them but use the wealth relatively productively for and within Russia?
I'm asking, btw...
I think there are 2 "new world orders" - one a mirror image of the other. Putin has to do what is good for Russia, and we have painted him as the opposite of whatever we are. I agree with your assessment of how Russians view their circumstances, I just think it is Through the Looking Glass compared to how we in the west view our circumstances. Our mistake is thinking that difference = evil. We had a chance to make Russia an ally instead of an enemy, but we refused to respect Russia's point of view or even acknowledge she had one.
The oligarchs ran amok in the 1990s and Putin was the man the Russians needed to control them. He snapped the wallet shut on a lot of western financial fingers, and he will never be forgiven for that. We in the west see what he did as theft, but we do not see oligarch shenanigans as theft. On our side of the Looking Glass, oligarch fingers in the cookie jar is just business as usual.
"I'm asking, btw..."
The former I suppose. btw, if pussy is a nationalist, he can't possibly be pro-nwo, that's if i understand nwo correctly ---> the subjugation of nations to the wussies.
If pussy is out for himself, then all bets are off.
"out-for-himself" intersects "nationalism" - let's see how this plays out.
OT: good news finally.
http://www.alternet.org/world/israel-put-trial-war-crimes?akid=12302.219...
Not a word about this on the latest TV news on Channel One (main Russian propaganda channel)
While Russia may ponder capital controls, why not also let it be known that they're 'pondering' accepting non-USD payments for gas and oil?
I'm sure just the hint of a ponder would reverse any capital exodus and turn the USDRUB graph upside down.
I believe Putin is keeping lots of dry powder in the locker. Note - in all the Ukraine sanctions inspired sanctions against Russia , Putin merely responded with
agricultural import bans from the EU/US and reductions in gas pressures to EU (pro-rata) for unpiad Ukie gas bills.
Putin is playing the minimalist hand superbly well, and has lots of options left.
What good is dry powder when all around you have been shot to hell while you waited?
Putin is reactive not out of playing chess but out of weakness of position. He was caught totally unprepared for SWIFT being weaponized, he (or Russia) did nothing in response to Iraq, Libya, others and now Syria. Ukraine is a show of weakness not strength. As Putin tries to establish a stalemate in Ukraine the US takes out entire countries who are Putins friends. The list of how Putin has been caught flat footed goes on. Putin has been so scared of the US reaction that he backed out of supplying his modern missile systems to Syria and Iran (blantant betrayal).
Putin is resisting but does not want a real fight. That includes on the economic front. By the time he acts Russia will be greatly weakened, or so it appears.
Sadly, if Russia falls there will be not other country to gather a coalition to resist.
I fear that by allowing his friends to be butchered Putin has created a mistrust of Russia "friendship". This may carry over to the economic front where countries are concerned Putin will just use the destruction of their economy as a sacrifice in his resistance to the US.
Russia can't project force to Syria like it can to Iran.
Also, th Syria story is still being written. I'm sure Ivan would not object to a money pit/meat grinder.
Of course neither would Israel. The Oded Yinon plan, not gas pipelines, motivates the 'neocons'
and the neocons still largely control the Deep State.
Russia/Putin are weak of course- in comparison to the US/West/NATO - so how would you expect it/him to play their cards?
Putin knows US/NATO can't risk bombing or warring directly with him, but he also knows they won't stop nibbling at his borders
and worrying his allies. Dodging and jabbing your much larger/more powerful opponent is more sensible than an on-the-floor grappling match.
Russia also has the problem of updating much of its armed forces (missile forces excepted) whilst playing, in some part, the globalist/USD reserve currency game
- China, his closest (natural) ally also has huge USD-denominated assets it wants to use/leverage , while they still have value.
China also has an over-reliance on exports to the US and an insufficiently developed home market and/or alternative export markets to take up the
slack, if the US suddenly can'y 'buy' its stuff anymore.
It's in neither of their [Russia/China] interests' to 'upset the USD apple-cart' too soon, nor precipitate Neocon end-game strategies. Not yet, at least.
Declare gold to be legal tender and announce an offical exchange rate with the Ruble. Recieve capital inflows...of gold.
Bitcoin, bitchskiz!
If Russia really wanted to stir things up it should close its capital markets, start issuing its own currency and start to trade using virtual currencies. This would shift the game outside the control of the banksters and back into areas where Russia has some muscle.
I'm a bit disappointed that it took until Tuesday for the bad news to trickle out. When Russia released its big scoop about the latest oil find on a Saturday, I was quite sure that it was a pre-emptive effort to blunt some form of upcoming harbinger of doom and said so on this forum.
Why else release such news on a weekend, unless it simply couldn't wait?
Of course the Okhrana around here was frantically savage in their defense of Bad Vlad and uparrowed each other's comments in a desperate effort to make it seem like the world was fully behind the big dummy in the Kremlin.
But where are they today?
I mean, come on, Okhrana guys, BTFD. Here's a fabulous opportunity to supplement your Russian paper equivalent of thirty pieces of silver with a fabulous insider trading opportunity. BTFD, guys, BTFD. Long on the Rubble. Long on Russian farm stocks. Long on those nesting egg thingys. Long on the Nutcracker Suite, but that's just because Christmas is coming.
Bad Vlad needs your money and your land, not just your approbation.
Edited to add:
I see that the Okhrana is finally starting to put some word count into the discussion but their heart obviously isn't in it. Pretty hard to spin currency controls into some sort of cunning plan to overthrow the US.
I dunno, this kind of stuff against the ruble and the CIA-instigated protests in HK are just going to accelerate the BRICS Bank solution to the all-out hegemony of the U.S.
FT.com (I know, a shit media outlet for the most part) has an article today showing how the BRICS bank is taking shape faster than was foreseen in the West, working to set up a non-dollar trade zone that encompasses all the BRICS.
The Empire of Chaos is hovering over the 'mommie' ready to slit the 'newborn's' throat. But I think this baby's gonna get born and will live in spite of that.
Abandonment of the dollar may speed up in South America, too. I heard on the radio today that a US judge is ruling against Argentina and is demanding they pay a fine of $50,000 per day or pay off the hedge fund creditors in whole ASAP. Argentina won't and that will drive another default to everybody else, and Argentina will fall out of the dollar zone.
Russia could ditch US dollar in 2-3 years – head of Russia's #2 bank
http://rt.com/business/191804-russia-ditch-dollar-2-years/
Kremlin's plan for restructuring economy- cut export/import dependency- is set for 10 years. First fruits will show up 3 years from now as russian military-industrial complex will be cut off Ukraine's industries=
move them to Russia= jobs. Economic problems in Russia will drag down EU sooner or later. Balts are first in line. Price of energy will not stay low for long as there is no player in game wish to sell for less. If trend continue they will drop oil from market as russia does already with gas to europe. If gas price stay low who will invest to pipeline from Gulf to Europe? Those prices are fixed, like chinese gas deal with Russia is for fixed price not tied to oil price.
According to Ragozin, deputy PM, they already started restructuring to reduce dependence on imports, even before this latest foofaraw in Ukraine. Here is an interesting interview with him - made me say Hmm. It goes for a half hour but even the first five minutes are thought provoking.
http://www.youtube.com/watch?v=2-cBISOTZzg
But But, I thought Russia stronk like a OX!.. US dollar kaput?