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China, Russia Sign CNY150 Billion Local-Currency Swap As Plunging Oil Prices Sting Putin
While it is beyond a doubt that the primary catalyst for Europe's triple-dip recession has been the nearly two quarters and counting of escalating Russian sanctions that were supposed to solely harm Putin (because who could have possibly foreseen that plunging German exports to Russia would have a far greater impact on the export-driven German economy), the truth is that the Kremlin itself is starting to hurt, if not so much as a result of the European trade embargo but mostly due to crashing oil prices, which have been driven lower almost exclusively by Saudi Arabia as part of its most recent secret bargain with the US, a bargain which as we read today is likely to tear OPEC apart.
One place where Russia has been hit the hardest as a result of tumbling oil prices, is the crashing currency, with the Ruble hitting new record lows against the USD on a daily basis. In fact, as Bloomberg reports, Russia has been forced to spend a whopping $6 billion in just the past 10 days to slow down the tumble of the RUB:
The ruble extended its longest losing streak in more than a year as $6 billion of Russian currency interventions failed to stem the depreciation amid tumbling oil prices.
The ruble weakened 0.5 percent versus the dollar-euro basket to 45.2911 by 1:50 p.m. in Moscow, taking its seven-day decline to 2.2 percent, the longest stretch of losses since the nine days ended Aug. 1, 2013. Oil, which along with natural gas contributes almost half of Russia’s revenue, fell 2.4 percent to $88.08 per barrel in London, the lowest since December 2010.
Russia’s central bank intervened in the past 10 days to stabilize the ruble, central bank Governor Elvira Nabiullina told lawmakers in Moscow today. The action, which comes as President Vladimir Putin orders a withdrawal of Russian forces from Ukraine’s border, has so far failed to halt the ruble’s decline amid a domestic foreign currency shortage stemming from sanctions. The cost of swapping rubles into dollars widened to a record.
“The main driver for the ruble right now is the oil price,” Dmitry Polevoy, the chief economist for Russia at ING Groep NV, said in e-an e-mailed note. Crude’s decline “totally eclipses” the “reassuring news” that Russia announced it was pulling back forces from Ukraine’s borders, he said.
Needless to say, Saudi Arabia is hardly getting a Christmas card from Putin this year, although one wonders, just what channels will the former KGB spy use to retaliate against the Saudi princes. Because retaliate he will.
In the meantime, however, Putin has other problems as well, the main of which is a direct consequence of the tumbling currency, namely soaring inflation, and the all too possible reality of upcoming price controls. From the WSJ:
Russia’s government is considering freezing prices for some “socially important” goods as inflation nears a four-year high, the government newspaper Rossiyskaya Gazeta reported on Thursday.
Russia had been aiming to bring inflation to a post-Soviet low of 5% this year, but the annexation of Ukraine’s region of Crimea ruined the plan. The annexation and the subsequent sanctions imposed by Western countries have put pressure on the ruble, making imports more expensive. The Kremlin’s decision to ban food imports from states that have sanctioned Russia has further spurred already burgeoning inflation.
Russia’s Industry and Trade Minister Denis Manturov said in an interview with Rossiyskaya Gazeta that the government may artificially stabilize prices for some 40 vital goods if a price jumps by more than 30%. He did not say what these goods were or when the price freeze may happen.
If Venezuela or Argentina is any indication, price controls always end badly. And the local population knows this, which completes the triple whammy of Russia's sharp economic impact, namely the accelerating conversion of ruble denominated savings into dollars, sapping Russian commercial banks' dollar holdings, and yet another drain on Russia's central bank reserves:
More Russians are keeping their cash in dollars and euros as the ruble falls to records amid central bank efforts to maintain control over the pace of the decline.
The number of people with foreign-currency holdings rose in September from August, Bank of Russia said in its inflation report published Oct. 10. OAO Sberbank, Russia’s biggest lender, had its first drop in retail deposits since May last month, while the premium to swap rubles for dollars climbed to a record at the end of last week, data compiled by Bloomberg show.
Investors are betting the most in six years that central bank Governor Elvira Nabiullina will have to raise interest rates after about $6 billion of interventions failed to prevent the ruble from reaching all-time lows every day last week. While the economy risks sinking into a recession amid U.S. and European Union sanctions over the crisis in Ukraine, policy makers must underpin confidence in the ruble.
“Once the mindset of a crisis sets in, it becomes a self-fulfilling prophecy,” Neil Shearing, an economist at Capital Economics Ltd. in London, said by phone on Oct. 10. “Residents start to anticipate further weakness in the ruble and shift out of rubles and into hard currency and that precipitates further weakness.”
To be sure, the traditional read through of this news is quite negative for the economy of yet another country which is reliant on the petrodollar. On the other hand, another take is that the collusion between the US, Europe and now Saudi Arabia will merely force Russia to accelerate its bilateral ties with China, in everything from trade to capital flows. Indeed, that is precisely what is happening. As RIA reported over the weekend, China is ready to export agricultural products and oil and gas equipment to Russia, China’s Vice Premier Wang Yang stated Saturday. Products, for which Russia could pay in either Rubles or Renminbi, thereby accelerating the de-dollarization of bilateral commercial relations.
"China is willing to export to Russia such competitive products as agricultural goods, oil and gas equipment, and is ready to import Russian engineering products," Wang Yang said during the 18th session of the Russian-Chinese Commission for the Preparation of Regular Meetings of the Heads of Governments.
He noted that trade turnover between Russia and China is increasing every year. Compared to the same period of 2013, it has already grown by 6.7 percent. This trend will help to accomplish the task to increase trade turnover to $100 billion by 2015. The Russian-Chinese Commission for the Preparation of Regular Meetings of the Heads of Governments is currently taking place in Sochi. The annual Russian-Chinese Economic Forum is held within its frameworks.
The participants of this year's forum have noted a positive trend in the development of joint investment, economic, industrial projects, and strengthening of partnerships between the two countries.
Bloomberg added that Russia, China sign accords on energy, banking, technology, during a ceremony overseen by Russian Prime Minister Dmitry Medvedev, Chinese Premier Li Keqiang in Moscow. Pacts include accords on east gas pipeline route, double-tax treaty, satellite navigation, high-speed rail cooperation, Rosneft-CNPC cooperation, local-currency swaps, and so on. China Exim Bank also signs accords w/ VTB, Vnesheconombank, Russian Agricultural Bank.
And the cherry on top came moments ago when, as if to assure all involved parties that there will be enough capital support on both sides, the PBOC released a surprising announcement that the central banks of China and Russia signed a 3-year, 150 billion yuan bilateral local-currency swap deal today, according to a statement posted on PBOC website. Deal can be expanded if both parties agree, statement says. Deal aims to make bilateral trade and direct investment more convenient and promote economic development in 2 nations.
To be sure, some such as Bloomberg, are skeptical that the unprecedented pivot by Russia toward China as it shuns the west, will merely harm the Kremlin. Others, however, wonder: who will be left standing: Europe, with its chronic deficit of energy and reliance on Russia, a country overflowing with natural resources, or Russia, whose economy is currently underoing a dramatic and painful shift, as it scrambles to dissolve all linkages to the Petrodollar and face the Gas-O-Yuan? Perhaps it is worth refreshing this subject in a few months, after Europe's economic situation is made far more clear after what is sure to be a long, cold winter.
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This axis of evil will be a bit more of a challenge to Amerika than Germany-Japan, no?
In retrospect....it was probably a bad idea to off General Patton.
Patton would have sided with putin, against the money changers.
Yes, many don't understand that or the fat that Putin really does not give a shit what the price of Russia's oil is in dollars.
perhaps russia ought to encourage citizens to transfer from roubles to gold?
Oh he cares, Bob, he cares plenty. And so do you, you silly goose!
dup
he had got to know the Germans, listen and begin id the real enemy
As the occupation progressed, he becames certain that the Allies should be recruiting German help to finish off Russia straightaway and have done with it. Rather than wait to settle accounts with them long after America had demobilized its war effort.
Scene from the Allied Victory Parade in Berlin.
"My dear General Patton, do you see that tank? It carries a gun which fires a shell seven miles."
"Is that so, my dear Marshal Zhukov, if one of my men opened fire on you before closing to within seven hundred yards I would have him court-martialled for cowardice."
"The Russians are simply savages. We could beat hell out of them." GSP,jr. 1945
Patton came from a monied, aristocratic Virginia family.
More propaganda from the House of Saud, the Russians have plenty of Nat Gas to sell at extremely elevated prices to Europe in Euro and China wants all the Russian oil available in CHY, what don't these fucking delusional dollar whores understand about this??
If anyone is in trouble or could collapse with USD oil prices dropping, it's the the fucking Saudi's!!
I love it when Russia and China thumb their noses at the US and say, I fart in your general direction...
I wouldn't bet against a troika with Germany joining Russia and China, leaving the rest of the planet to simmer in self-inflicted debt...
That would mean Germany would leave the EU and likely, NATO. Now the funny thing to me would be to watch the Polish government say "oh, fuck. What have we done." When this is happening.
Poles are always on the wrong side of everything
Ohh I don't think Germany is ready for that script again, but they sure as hell are done taking orders from the Americans and British! So Nato unraveling is a very real possibility IMO though!
Germany-Japan axis didn't include Soviet Union, ot WW2 could've ended very differently. Forget that, MIC has a hard time defeating Tehran-Pyongyang axis, much less Beijing-Moscow. Although, I do not expect that last axis to last much longer partially because of the protracted border between the two, Chinese wouldn't forget Sun Tzu in that respect:
ok, we keep slapping a russkie in the face, do you or i think he might just punch us in the face? maybe germany will wake the fuck up and say fuck off merica, and oh by the way we want our gold you lying cheating rehypothicating basterds...
So that is why the US and Canada are at war!....O wait....they aren't?
boris, i upvoted you because your point is true, certainly in the long run, but presently i think both russia and china have agreed the end of the petrodollar is in both their interests. after that they will each return to past grievances. certainly china will never forget Mao was set up by stalin in korea and that it slowed his taking tibet. i think iran, china, and russia are going to be focused on the petrodollar. i am surprised somewhat that putin has withdrawn troops from the border with ukraine, but i suppose that may be a cosmetic move rather than a white flag.
Germany has been behind the last 3 big ones and this coming one as well.
should have posted the value of the agreement in yen, it would have been even more impressive that way lol... stupid RTyler is stupid
Spock: Ah, so your 'clever' solution is to use one elastic fiat currency over another as a Reference marker? Interesting.
A more robust solution would be to Index them to an Absolute Reference Frame, i.e. to Absolute Money (GOLD), and then Settle in CNY or RUB.
Well, America did not defeat both parts of that axis. They defeated the Japanese for sure. It was Russia that beat Hitler and his several minion allies in Europe, lest not forget that.
I always get strange looks from folks when I point this out to them... The US role in Europe was in the final push to take out Hitler, while the US dominiated the Pacific theater... Many do not know that China lost 20 million and Russia lost 30 million people in that war, while the US lost 400,000 souls...
1) Massive shipments of lend-lease motor vehicles that motorized the Soviet armies. Radios that allowed them to talk to each other. Food to feed them. Critical mixing agents that allowed Russian oil refineries to produce high octane aviation gas. Overall estimate is 10% of Soviet war economy came from lend lease and, in certain cases such as motor vehicles, around 50%.
2) Allied air campaign against Germany knocks off an estimated 9% of German industrial capacity according to USSBS after the war.
3) On June 1, 1944 (eve of Normandy invasion) German land forces in Russia-- 2.8m. German land forces deployed on other fronts 2.4m.
Without Allied support, Germany would have made short work of Stalin. Without Russians holding Germans in East, Allied invasion impossible. Joint effort to crush a very powerful enemy which could probably have held either side off indefinitely in a one-front war.
But Germany was liberated from its cruel, oppressive dictatorship as a result of the war while Russia was not. So, in a macro sense, Russia was the big loser overall. Land devastated, massive casualties, and a triumphant dictator left sitting on his evil throne. Everyone else got to go home and start rebuilding a better world- not so for Russia and Russian-conquered areas.
Is that BS passed as "history" nowaday in schools ? Pathetic... 10% difference (at best) for the biggest war effort ever...
Everyone of these guys are practically thesame in some respect. They will all abuse power when its in their hands. THAT IS A LIFE LONG REALITY IN THIS WORLD. THE WORLD WILL ALWAYS BE LIKE THIS! YOU JUST TO UNDERSTAND IT AT ANY ONE POINT IN TIME AND LIVE WITH IT THE WAY IT IS
The Rise of the Anti Hegemon http://youtu.be/aKZWSWP3UKU
The 3 Coming False Flags http://youtu.be/_UbAgq3u6lQ
Cool videos!
Neighbors just got back Friday from two weeks in Germany - said that on the surface things looked to be pretty good. My brother and his wife got back last Sunday from two weeks in France - said the same thing - it all seems pretty normal. I know the numbers don't lie, but sometimes those throwing out the numbers certainly do - like BLS unemployment figures, for instance.
You see the same thing in many places in the US as well - restaurants have lots of cars on the parking lot and hotels are nearly full. What is expanding is the debt that is fueling these 'good areas' and the 'size' of the depressed areas.
On the surface eveything seems normal, but come to my city and I'll take you to the local mall.....which is half empty. Then I'll take you the next town....and then the next and so on.
Totally! The common people are tapped out and living hand to mouth.
I had about 4 work colleagues come into Atlanta for a training. They had to move hotels because there wasn't 1 hotel in Buckhead with availability all 3 nights. I would guess there are about 5000 rooms within 1/2 mile of where we were at. I look at this and the vacancies in the commercial space ALL around and feel my mind being torn apart by the cognitive dissonance.
It is like trying to draw a circle and always missing the starting point so you are left with a spiral and not a circle.
Was at the mall yesterday in north California, lots of people eating and walking, but very few carrying any bags of china goods. How long can the WH float a shit before it sinks?
Thomas Eric Duncan just got into Dallas a month ago from Liberia. Dead now.
This is short term pain... The long term key is still Syria and the natty gas pipelines.
Repost from before, incase you missed it.
--------------------------------------
Putin won’t do shit.
When Putin came into power the first time, I used to tell me friends that he will be going far and will be causing some serious sleepless nights for the West. Ofcourse they laughed me off as Russia was totally beaten down at that time.
I have been following Putin since his early days, what he was doing and saying. I think he has reached his limit and he is not the World Leader that a lot of us expected him to be.
He might be a great leader for Russia and will look after his own and Russian interests but will not do jack shit on the international arena in matters that does not concern Russia directly.
When Libya got plundered, all he did was some angry press conference because killing Gadhafi was not “mandated” at the UN meeting.
He took the MH17 accusations on the chin and didn’t go further than some “impressive and intelligent” presentations, rather than spilling the beans.
He accepted the ceasefire in Ukraine whereas you would have expected him to chase them all the way to the presidential palace in Kiev and right up Porky’s ass, to send a message, though he did take Crimea, Russian interest.
Read history of Russia and China. They have never projected their power abroad, not talking about Fleets and military but the Will. They never had the will. Mongols/Tatars, in their heydays, bitchslapped both China and Russia. There is a reason the Tatars and Cossacks have a special place in Russia i.e. they get shit done.
Russians can sing some songs of bravery and punch some duffel bags and barrels to show the Russian strength, while drunk on Vodka, but come real situation, not so much. I mean its not Putin’s fault that you indulged in his sporty pictures and thought he is going to be the savior everyone is waiting for. He overdoes the macho image, because he actually isn’t.
To project power on the world scale, you either have to be a fearless Warrior type or a shameless Psychopath.
He is neither, maybe just to minimal extent. He wants to be “partners” with the West not a contender, as he keeps saying and eat over rated fish eggs and overpriced bubbly in his palace like all wannabe Russians and indulge in some boy’s club kind of sports from time to time.
US will get the gas pipeline corridor through Syria, Assad will stay in Damascus and Russians at the port of Tartus. He has probably agreed to the arrangement. He will not budge until NATO is in his bedroom. Its just a Russian psychic, as shown in history, and then Russians will fight bravely on their home turf.
(US and ISIS getting into Damascus will be a game changer though, and a warning for Israel)
Russians didn’t even conquer the Central Asian states. They were given to them by Teddy and the drunken fat Slob with a Georgian incharge.
I mean he has all this gas to sell, his bread and butter, and all this time he has had no alternative payment and pricing method and structure?! Apart from getting some of his ministers to give out intelligent and detailed presentations, he again won’t do jack shit on that.
The Chess player couldn’t foresee it? Like he couldn’t foresee Gadhafi being taken to the woodshed? And he still cannot foresee that Empire will keep striking back and will not backoff?
I don’t even think he has a valuation model for his gas and a pricing structure. Its just, dig a hole in the ground and put the pipes and sell gas for enough money to cover the costs and some oligarch profits. He cannot even recover his money from Ukraine for the unpaid gas?!
What is a barrel of oil or cm3 of gas worth? Hard earned 50 bucks or printed 50 bucks?
There will be no PetroRuble or PetroYuan or PetroGold even.
PetroRuble – Russia can only trade to the extent pf what the other country can sell to Russia, and the other country might still be dependent on USD for the inputs of its produce and exposed to USD manipulation.
If you find it hard to understand the concept, then think of it this way. There is extremely high demand for water and short supply in Sahara. You must be able to charge astronomical prices for bottled water there then? (Some MBA would possible think it’s a great idea and Nestle should expand into Sahara… lol)
Petro Yuan – Pegged to the USD and can be printed.
Petro Gold – Will you really buy oil or gas with your physical Gold?
USD will stay as long as there is oil trading, albeit in seriously devalued form. That is the sad reality. Uncle Sam is not producing oil for sale, so no skin off their nose, and they’ve got big guns and the will to use! When the world will abandon oil, they will abandon USD, it will be a gradual process.
And guess where does the famed gas pipeline from Russia to China enters Chinese territory? Right through the Xinjiang "homeland" of Uyghur people who are ethnic Muslims. Surprise Surprise! They might want independence.
Coming soon, another episode like Ukraine, but in Chinese this time?
Those people who followed Baghdad Bob, do you know how they felt afterwards when Baghdad fell? You might find out if you keep rootin for Putin like that.
Sorry folks, he is not the bare-chested Knight on a Siberian horse coming to the rescue. Constitutional dilemmas of US citizens and oppressed people in the East are not his problems. He just wants to sell gas to his "partners" and get some respect on the negotiating table.
Looks like someone is looking to stir up some crap.....you've been working on this for a while haven't you?
He needs to go back and see his off shore psychiatrist
Baah Baahh.
only time is a judge of an opinions you make above. the germans and french must have thought those pesky slavs are actually really just a drunken cowards, as they advanced toward and into russia in past attempts. they learned hard way it is best to stay at home minding own business, instead of invading russia.
Some you guys are not reading me correctly.
What you say is correct, and thats what I said. Russians will fight brafely to defend Russia and Putin may be a great leader for Russia, just not a World leader, as many want to believe.
in short, a national leader... of Russia. yet many of those "guys" crave exactly for that, a national leader for their nation, though then again some have lost their sense of nation, and crave just leadership. and purpose. like the guys joining the Fight Club in the book and movie, or the guys hijacking planes to Havanna, Cuba, in the 70's
LULZbank, why do people like you always try to attack character?
If you've been following Russia for so long, you should know it has to dance between the west and east, as it's done for centuries.
Putin is a chess player. Chess players don't push their king to the middle of the board. If I were him, I'd be waiting, making sure NATO doesn't push forward any more right now, and focus on the South Stream Pipeline and supporting Syria.
Delay the enemies plans while strengthening your own infrastructure and position.
Excuse me, what is a "world" leader?
You don't make convincing points because the premise is not convincing. The fact Putin is working at least partly for his country instead for his cronie friends is big enough. The rest, as history has proven time and time again, will be determined by geopolitical chance. Obviously, Putin won't go out of his way to conquer Europe or other nonsense of the sort, nor he will attempt to conquer the world through petrodollar, Hollywood and usury politics. And no one is expecting him to. Going out of the borders of your country to tell others what is right and how they should behave is not being a "world leader", it's being an invader and an imperialist.
Putin's a good leader for those who want to reconstitute the former SU. He plays the long game, wherein the SU collapses, the remnant (Russia) bleeds its best and brightest through emigration, and then Russia tries to gather together a few of the old republics (part of Georgia, part of Ukraine, maybe Estonia or Kazakhstan) for one last hurrah.
It's quite a heady plan.
Am i to believe that Russia has no control over its currency? Rediculous.
"Rediculous" [sic]? Not as ridiculous as your grasp on grammar, Bob.
The Soviet Union has as much control of its currency as, say, Venezuela or Argentina - which is to say not much. It's going to be fun to watch the ruble go down the toilet.
BS is BS no matter how many times its reposted. give us a break.
Allies are back in Syria (almost) and Putin ceasefired in Ukraine and now taking it USD style.
Apparently, he is a chess player, always 10 moves ahead.
Until Putin makes a significant practical move, you can go fuck yourself.
Guess you must have missed the explosion of China-Russia trade deals, the end-around that Russia did to keep the US from bombing Syria last year and the white, red and blue flag flying over Sevastopol without any blood spilled.
@ Bank whatever.
actually you're very wrong, reminder: rope-a-dope
Russia is now a big BRIC that is part of an independent market/economy. Putin's only use for dollars now is to wipe his arse after taking a big dump on the EU/West.
Putin hoards his remaining dollars greedily. Why? Because they're worth 40X more than his own currency, of course.
Putin's "10 moves ahead"...which explains why the ruble's debasement continues apace. It'll be interesting to see how long the Soviet Union continues 'defending' the currency (which is to say spends its currency reserves to prop it up). The real fun starts when the SU abandons this effort.
Putin's only chance to redeem himself in the eyes of history is to pull a Franco and restore the Monarchy.
we've got some troll over here...
Yeah, Kosher at that.
I agree it is quite frustrating to see Russia and China not act. Have they resigned themselves to rolling over to the West and merely hoping that the West will finish itself off without any help from them? Or are they much smarter than analysts like you and me and are waiting for that exact moment to strike when a small amount of effort is all it takes to finish the West off?
I am inclined to believe Vladimir Vladimirovich Putin and Xi Jinping are smarter than you and me.
Vlad and Xi are sure as shit a whole lot smarter than Barry, Valerie, Kohn, and Co.
I'm inclined to believe they're smarter than you, too.
A commenter said last week "the greater misdirect is still a misdirect"
Step wayyyy back. What is going on in the world? Countries are being absorbed into regional unions. China and russia are snuggling. The formerly fractionalized mideast is being unified under isis. The boundary between us and mexico is being erased and the demogtaphic shift in the usa will make that irreversible. South america is lagging a bit but tptb are making sure that they own the press and the military in key countries while they figure out their next stepa to bring order from chaos
If you ignore the pontificating of comical bufoons and bare chested horse riding warrior personas and just look at lines in the sand and energy routes, this is all new world order stuff. Putin and obummer and alqueda are all following banker masonic orders as they strive to reorder the world more nearer to their hearts desire. If christians or brown people or ukrainians or ebola victims die in the process, all the better, less useless eaters.
Divide and conquer still works at zh. Go figure...
TPTB will always be planning something till the last day.
I would think these are the last days of the NWO, which began early/mid 19th century, ofcourse they be fine tuning it periodically.
So far, human labour and assets have been traded via various markets denominated in dollars but now heading into the times when humans will be traded like slaves, once the paper for physical trade dries up.
Just like the good old days.
Lulz - why do you think these are the last days of the NWO? what trends and/or evidence encourages you?
NWO depends on cheap energy/Oil and if Peak Oil phenomenon is true then the present system will not be able to sustain itself.
When the world will move away from Oil, it will be a paradigm change. New powers might emerge and old ones will get buried.
Nwo depends on surveillance, propaganda, control of food supply, and asymetrical weaponry. When cheap oil is gine, they will have high speed rail, drones, bioweapons, and we (who survive the period of engineered chaos) will have hunger games. At least thats how it looks to me.
I agree with LULZBANK for the most part. (go ahead with the red kudos, hehe)
People here need to be careful that, despite their dislike of the current status quo and dislike of "The Establishment," you end up getting sucked into some kind of dirty geopolitical game.
Forget Russia and/or China coming to the rescue of all the goldbugs here. I'll bet most people here have never even been to Russia or China, so they blindly and mindlessly trade in the Mainstream Media propaganda for RussiaToday and ZH propaganda. Just being a contrarian for the sake of being a contrarian, never mind which dictator you'll end up supporting...
Change will need to come from within our Western society, not because Russia or China will come to our rescue by crushing the Dollar and creating a Gold Standard.
p.s. I believe in Gold because of the lack of countrerparty risk, NOT because the Chinese or Russians will create a new Gold Standard and send the price (it's just the price guys, remember fiat currency..) through the moon. Those are just fairytales told by people who, for a handsome fiat-currency commission of course, will SELL you some gold and silver. Or do you really think Mike Ballony or Peter Schiff can find Russia or China on a map?
And then you've got GoldCore wiht articles saying "God prices are set to rise becuase of strong demand from Indians" and then you read about India's economy and realise that its a glorified third world economy.
Yes, the Gold will go to the moon because of demand from the Third World who are struggling to feed themselves.. LULZ
Gold going to the moon measured in fiat currency which the Godl bugs hate, is another LULZ>
i don't know you, but i will be quite nice for you.
whatever actual game is all about.
when usa put nazi on head of europ in 45.
when usa come to normendy when war is over
when usa cry for 1million dead while russia lost 26 millions..
when kiev nazi system is supported by usa.
when daesh money is CIA printed.
when usa buy 40dollz a barel of oil ....
i dont really care about who do what at what cost, i just do not like nazi & usa gov attitude over ressources and the way they manipulate fear to control the mass.
that said, if you still want to offer me a drink, i'm not against it :)
fell from credibility at the "which dictator" nonsense
better worry about your own country
Hahaha, so you fell for that little trick where Medvedev was 'president' for one term?
Don't get me wrong, contrary to China, I really like Russia. Very very nice and warm people, good food and a beautiful countryside. Despite all the hardship that the average Russian has endure over the last decade (Tsarist rule, Communism, and the current Mafia/KGB clan that runs the country) Russians never seem to lose their sense of humor, irony and preseverance.
Yet if you look at the standard of living for most Russians, it's very clear that the average Russian has not profited from that very 'wisdom' being touted here on ZH that Putin is now displaying in crashing his own currency and playing a game of chess on the world map.
I've visited Russia during the Yeltsin and Putin years and the average citizen is definitely better off now that the commodity economy has roared to life. My extended family in Russia didn't have any automobiles in the family back during the Yeltsin years - now every adult has one. No doubt Russia is sinking into a recession as we speak, but strides have definitely been made. Do I credit Putin specifically for it? Not really. Why? Because Russia was bound to eventually begin exploiting its natural wealth with or without him. There's just as much corruption in Russia as there ever was, and I've personally bribed public officials while traveling in Russia. Also, I don't see Russia moving beyond its role as the world's energy depot, although I hope that would change.
Because China and Russia don't act like the US doesn't mean they are not participating. Sometimes leading by example is enough. The world has seen what US hegemony looks like, and are becoming tired of the warmongering bully. This is precisely why China and Russia will prevail in the long run. They refuse to be grawn in by USA/CIA provocation. They see no upside in getting involved in the stupidity of American Imperialism. They don't need to, America is doing a pretty good job of destroying itself. The rest of the world is waking up to the fact that by simply rejecting the western banker/MIC oligopoly, they won't have to cowtow to the bully much longer.
Very interesting analysis.
But.
Comrade Putin did not roll into Kiev at the moment of Mariupol offensive because he couldnt, but because he wouldnt.
Lets see, NR partisans and assorted friends mount up on their Voentorg trabants, roll up the panicked and disorganised territorial and carpathian battalions and arrive in Kiev.
Porky flies away to London, and sets a gvt-in-exile, a la De Gaulle.
UPA bandits do what they do the best; run to the forests, hide and begin 1948-style terror campaing.
Anglo-zionist puppets wail and weep loudly about the horrible and genocidal aggression, then proceed to beef up NATO.
US MIC screams triumphantly; look, der rusische kommt! Buy another hundred or so of useless air superiority fighters.
Comrade Putin remains with an useless, broken and bankrupt excuse for region, a new Cold War and enigmatic chinese comrades in the east.
He rather not, dont you think?
Yes, you are right as per your scenario.
But also, he can just roll into Kiev, get hold of porky or the weasel or anyone and make an example out of it and then retreat back to Russia, letting NATO etc pick up pieces.
What did Putin do, when NATO got Ghaddafi killed?
I disagree on this particular point.
To hotdrop porky and that bandit yatseniuk would take a regular airmobile assault, which would be rather hard to stage for NR partisans.
Porky and yats make a public confession and are sent for a long thermal cure in Kolyma, until now no problem.
Then the problems begin as soon as the helicopters leave.
The remaining neo-nazi leadership silently thanks russians for cleaning the place and installs a ferocious, overtly nazi military dictatorship, with NATO blessing (but russians attacked first!).
They immediately join NATO, fearing more hotdrops and then we have german and polish regular troops at NR DMZ, and Falcons in Jitomir.
It is not worth just for liquidating those two bandits, and NATO is picking the pieces already anyways.
That was pretty good...
Anyone know what ever happened to Al Quaeda?.
is it important to you?
Russians don't care what you think.
http://ozziesaffa.blogspot.com/2014/06/15-years-of-putin-rule-in-one-infograph.html
Russians are better off than ever
Reading and comprehension difficulties?
Putin only has to sit and wait . Russia is sat on a mountain of wealth, USA is sat on a mountain of debt "who would you back you silly FUCKER?". Maybe Russia,China will climb into the Saudi oil sale and dump their US$$$$ for cheap Saudi oil. "Now that would FUCK them over".
<-- Putin hasn't done more in MENA or Ukraine because... He lacks External Ability (limited by Resources, Cash, Mil power, Support)
<-- Putin hasn't done more in MENA or Ukraine because... He lacks Inner Courage/Will
Guessing why LULZBank got so many Up arrows (~ 1:3 ratio), and the possible sentiment of voters, which is based on his rather Moderate actions to date.
p.s. Please don't let my following comments on my own perception affect your UP/Down votes, but here's my subjective view (based on limited and public info)... Personally, I think he's being Reactive than Proactive, given that almost all his actions are in response to some external event. Although he's doing a great job at being a Global Statesman, I don't see him stirring things up for the US Neocons, the way they are stirring things up for him. IOW, he's playing a purely Defensive game, and I can't help but wonder if sometimes the best defense isn't a good Offense? Zionists have taught us the latter, time and again: Always be proactive in seizing and keeping control of Perception (with world-class and incessant PR and Propaganda), and use the Christian "Guilt Complex" as a lever for competitive advantage.
"He might be a great leader for Russia and will look after his own and Russian interests but will not do jack shit on the international arena in matters that does not concern Russia directly."
Where can we get one of them? You know, more like George Washington??
Let the bells of free market freedom ring!
‘I’ve Abandoned Free Market Principles To Save The Free Market System’
George set up the softball.......and Barry slammed it home.
Two party system huh?
Anti-Russian sanctions drive rapid de-dollarization
http://failedevolution.blogspot.gr/2014/09/anti-russian-sanctions-drive-...
Seems like an excellent time for these two to unload Treasuries like they are on fire.
Full Metal Jacket interviews.....
http://www.youtube.com/watch?v=A4BuQMJEKHw
150 Billion Yuan = $24 Billion.
Meh- we've spent that in two weeks on MBS.
Even the USDCNH is only 3% VOL of the currency transaction float.
The real bilateral trade is between the EURUSD and to a slightly lesser extant the USDJPY. I get it though, if your economy relies almost exclusively on natural resources, you're going to do what you can to keep the demand up.
I must say though, I do enjoy paying $2.90 (today) rather than $4.23 (August 2012) at the pump.
Stock up on the gas if you can. The rebound in higher prices will be much worse. The Euroshits pay about 8 dollars a gallon. You will be catching up as the world deleverages from the dollar.
shut up cosmos, you stupid bitch, russia can't even balance their budget at $115 pb and that ship is sunk... they'll be lucky if it stays above $80 this year
seriously, this was supposed to be the strong man of europe? who goes running for pennies in the couch cushions the nanosecond he realizes that the budget can't be met even at peak prices? who goes running to *** China *** no less? we're supposed to be worried about this guy? what a moron
why don't you run off and sink some tankers in your magical stealth sub fleet... with your wife, Morgan Fairchild... fucking delusional
Whats even more stupid is, these folks think Russia can sell gas & oil to China, who depends on US and EU for manufacturing contracts to generate cash.
I say... LULZ
Both Cosmos and you are wrong. Sure Russia won't sink any oil tankers (LOL)
But Russia is not as in a weak position as you seem to believe. First of all, Putin is not running for pennies. In fact, he has been concluding mega-deal with the Chinese, and not only the "Power Of Siberia" thing. More than thirty in total.
Second, even if western sanctions do hurt the Russian economy, which they will to a certain extent, they will not remain there forever. They may in fact be retracted as soon as next year.
Thirdly, Russia will be able to at least partly offset the financial shortfall from western sanctions through Chinese (and other) funding. Chinese banks are already moving into Moscow. http://www.globalresearch.ca/8th-largest-bank-in-world-opening-operation...
Fourth, low oil prices will not only hurt Russia. In fact, they will hurt the western supermajors much more (they are drilling extremely marginal wells) and even more crucually, the American frackers. A protracted period of low oil prices (somewhat unlikely) will cause some serious short term pain for Russia, but in all probability massive long term gain by the fact of the serious weakening of western oil producers. You can also add several US allies that will bleed due to low oil prices.
Fifth, Russia is the one country on the planet that is used to fighting against the odds and against mighty and brutal opponents (just pick up a history book) Sure the American empire is still pre-eminent, but I would not bet on Obama and the current and divided EU to succeed where Hitler and Napoleon failed.
Sixth. The anti-Russian alliance seems to have been counting on Putin losing popularity in Russia and eventually being overthrown. Their actions have had the exact opposite effect. As long as Putin remains in power, Russia will eventually come out stronger out of this very serious crisis.
But still, no one can know how these things will develop with any degree of certainty. We must wait and see.
Concur.
Everyone knows that getting some "Terror Group" to bomb Facilities in KSA would do the trick. Much cheaper than 6B USD Team_RUS is spending to stymie the Currency WarFront the Conventional Way...
So, eventually, some OilCo Execs with Retirement Packages based on his Stock Options and/or OilPx migh end up hring Mercs to do the deed...
what brand of your car, chevy DAESH ?
The Saudis better brace themselves for the Spring of the Arab Proletariat.
Donetsk interviews..........
If this is propaganda - it is of a very high quality
http://www.youtube.com/watch?v=KVU49UDVTGQ
http://www.youtube.com/watch?v=7tRuoMJm9-M
http://www.youtube.com/watch?v=y0FPOWPiUWg
He the Real Deal. Givi and Motorola's units are those tasked to clean Donetsk Airport.
Lena (Elena) he mentioned...Motorola married an Elena few weeks back..might be same but I doubt, she was local militia
before that she was on YouTube armed with Krikov telling about Ukr bombing of civilians..
A friend mine knows her as"Lenka"
Here is after airliner shoot and the wedding..
http://www.youtube.com/watch?v=aKKoKmUtQXE
http://www.youtube.com/watch?v=QBQKh6KJ4r8
This is my favorite: Givi giving a an interview while grads hitting the neighbourhood.
https://www.youtube.com/watch?v=K9k05CbXmqE
It is not.
https://www.youtube.com/watch?v=59apRxeVg60
*Artillery fire in the background from Kiev forces.
So if you have a real economy and money low oil prices hurt you? If you run a ponzi economy oil prices don't matter?
Western powers are putting the thumb screws on Russia, because they will not submit, so the ruble is taking a dive. It's part of the currency war, no surprise there.
The real question in my mind is whether the Russian and Chinese leadership will actually stand fast against the dollar hegemony, or if they will just sell out and take the fast money. The pressure on Putin and Jinping must be stupendous.
The old chinese curse fully applies today: ' May you live in interesting times.'
China has no interest in fighting the dollar. They are part and parcel of the status quo, and are just doing what they can to make a buck.... China isn't going to save Russia, fight the dollar, are any other such busllshit.
They like the system, their part of the system, and they defend the system... They will just jockey for a bigger slice of pie.
Are you still sticking to your tired, incorrect Shtick?
Talk about doubling-down on failure...
OK, Bloomberg wants us to believe Russia is hurting. I suppose they feel the need to make O look like he's winning. However, while I know that Russia and China take part in the global economy, their state systems do not resemble those of the west. It is my belief, and I may be wrong, that Russia and China operate under a different set of rules, and have much more control of their economies than do those in the west. They are NOT banker controlled economies they are State controlled and that's what the fight is about. I think it will come as a shock to the west when they finally wake up to this fact.
"."
Bloomberg is terrible
putin is a bully
he is possi billy mad
or insane.
at the very least a crazy nutter.
he should be nice and let the talmudic rabbis rape him and his country.
ever since 911 we here in the usa have relied on are friends and partners,israel,saudi arabia and the empire of the city of london.
are dancing friends are what has kept us safe.
i agree with david camoron that it is a mad conspiracy theory to suggest that israel had anything to do with israel in this matter.
israel had nothing to do with the 911
if you are looking for means and motives for 911 china,iran and most of all russia look very suspicious.
i think larry silverstein should open a class action against putin for the pulled building 7 and the other controlled demolition buildings in his 911 portfolio.
putin needs to compensate israel and the innocent jews for the cnn eye trauma from watching tv on those desperate days of 9 and 11
I think you should post that at wnd.com to balance out the up and down votes.
Tony, help me out here. My grasp of English history revolves around Mary Queen of Scots & Henry VIII.
Walter Veith's 934 captivates like Dan Brown's "Divinci Code". Are you able to refute any of this?
I have yet to determine how Israhell ties to this madness & where their position is in this heirarchy.
Putin has bigger things to worry about with Australian PM threat to shirtfront him - lol
http://www.news.com.au/national/prime-minister-tony-abbotts-vow-to-shirt...
The new evacuation of Saigon ?????????
http://www.youtube.com/watch?v=p4-nVmiqFRM&list=UUhZRoC9bMegevAxFmee1oSA
http://www.youtube.com/watch?v=3AiyFF9qOls
The low oil price will also screw the US shale oil industries; that is the blowback that's not being taken into account by the policy makers in their lust for stuffing up Putin.
"China is willing to export to Russia such competitive products as agricultural goods, oil and gas equipment, and is ready to import Russian engineering products"
I can see the chinese "customers" go to the local shop Russian engineering products and order one of eveything.
Camping out for the newest Lada.
Lada Niva chases Ukr Tank
http://www.youtube.com/watch?v=mKsfhXMwRVM
Play with fire, get your head chopped off.
Oh wait, that's the guillotine.
It is highly doubtful, that Russia did not prepare itself for the "currency war" and now the "oil war".
In chess, in order to survive to the "end game", you not only have to memorize all of the standard opening gambits and defenses, but try to understand where you will be at the beginning of the "middle game".
In have no idea if we are at or in the "middle game" or not. But, any one running a business or a country would take strategic measures to secure its cash flow.
I do not study the oil market. But, I remember that when the Gulf got polluted, many persons commented that the US would not destroy BP. The reason being that BP was one of the largest writers of long term oil contracts.
Russia has most likely forward contracted out, at high prices, decent percentages of its oil production for as long as 5 years.
Much of what is written is propaganda from both sides. What the true state of affairs of Russia's cash position, etc. is hard to know from the arm chair.
Magog and the Kindom from the East? Nah, they wouldn't conspire together.
Better look ancient maps for that identity. Clearly defined.
Was not Russia
I think China and Russia are going to realise that they will need to neutralise Saudi Arabia once and for all in order to progress the BRICS successfully.
You mean they dont realise it already?
in longer term, 5 to 10 yrs, Saudi Arabia is digging its own grave.
Poor Russia. I has been attacked by Napoleon, Hitler, and now even China is looking to exploit its natural resources. It just can't get any respect.
its not that bad, the US and the west will probably handle ebola before the global economy unhinges from oil prices
.
Russia wins cold war
If Putin is not going to sell energy in USD then price of oil and gas in USD for him is irrelevant.
He knows there are billions of barrels glut around the world ready to be dumped
He is prepared and he did that by initiating dedollarisation Hoping USA and EU would continue QE so world dumps USD further
QE has damaged USD and western economies. Putin wants more QE so damage is accelerated and dollar avoided world wide
Lets say the world is fully de-dollarised.
What currency will the global trade in general and oil trade in particuler transact in? (no SDR's either)
How much effort will be required to change the way its accounted or for book keeping purposes.
I dont see it happening without a big chaos and contraction in world trade.
No world currency, regional trade, not global like in the 1930s.
Russia, China have made that clear
Makes sense.
Kinda like part horses and part automobiles :)
It is way worse for the US expensive shale boondoggle. Or are we already done with that nonsense propaganda about being the biggest oil producer in the world?
This whole saudi-us plan to lower oil might be to reduce isis's oil revenue that everyone is talking about. Although pissing off russia certainly would be viewed as a good thing too. Making the fake bakken fields even less profitable might not be so good.
Putin has screwed the pooch. He's just another fool in the galaxy of "absolute power corrupts..." strongmen who over-reach and fail badly. He can kiss up to China all he wants. They're not going to buy oil from Russia at a penny more per barrel than the world benchmark. His adventure in Ukraine is a disaster. Leading a corrupt kleptocracy that exports nothing but oil and depends on the world for capital, technology and trade is a fate he's brought upon himself. Jeez, you're not really rooting for this ex-KGB school yard bully are you?
Russia is not in the Ukraine. Sorry That is Obama's expensive Boondoggle. Just like all the fallout from it is Obama's expensive punishment.
Dear Radar O'Riley,
What V. V. Putin has been doing in Ukraine is not an adventure. He has acted with amazing restraint (perhaps too much so) to a series of provocations emanating from Washington to achieve its long-term goal of dragooning Ukraine into it's globe-girdling hive of compliant states, and then use it as a club with which to beat Russia. It started wit h the violent overthrown of the democratically elected Yanukovich administration, thus effectingly disenfranching Eastern Ukraine at a single blow.
US foreign policy is nothing but adventures -- an endliess series of optional wars undertaken in the name of no-one-one-knows who, but certainly not in the in name or interest of the American people. Russian foreign policy, by contrast, is guided by the principle of "stable borders so the nation can develop internally." The US refuses to leave Russia in peace and is determined to complete its strategic enclrciement.
Russia is, quite literally, in a bind, but not because of Moscow's alleged agressive behavior, but purely because of Washington's.
Putin, Lavrov and Medvedev have repeatedly said over the past 14 years that Russia, now that Communism is over, seeks a new entente cordiale with Europe and North America. This would entail the creation of a new zone of economic and security cooperation from Lisbon to Vladivostok and embracing the US and Canada. This was the vision that motivated Reagan and Gorbachev in the waning years of the Cold War.
Sadly, the US opted for Empire instead -- hence our foreign policy of diktat, a push for global strategic predominance. We have no interest in a balance of power, consequently we have no interest in talking to anyone. When diktat fails, we resort to encirclement, sanctions, drones, tomahawks, internal subversion and Vicky Nuland.
Putin said that if the US were to reject his vision of a pan-European entente (and the US simply ignored it, never even commented on it) and intended to do to Russia what it did to Serbia, Russia would defend itself. As he said: "We Russians will not be cannon fodder for the New World Order."
If, as you say, V. V. Putin is a schoolyard bully, what does that make a whole series of US presidents?
I'm not defending U.S. foreign policy, which i agree is as wrong headed as Russia's. But that doesn't negate Putin's heavy handed, ultimately self-defeating strategies. He's got a fifth rate economy - that's his problem. And his political economy is fundementally corrupt. Glorifying Putin is just a silly act of contrarianism - all the sins of the West don't redeem his regressive policies. The proof is in the pudding. We'll see what his one-man rule produces. Russians may like his bluster in the short term. Economic tough times may be the painful road to his demise.
If you think is one man rule shows you know nothing about Russia.
Oh, for god's sake, it's not N. Korea, but Putin runs the government. He has a rubber stamp parliament. Political opposition is suppressed. Once again this lionization of Putin as a force for political and economic good is absurd.
Dear Radar,
To answer some of you points:
Putin's policy is far from heavy-handed (especially in comparison to the way we do business). His handling of Crimea was exceedingly elegant (again, compare it to our usual blunderbuss, shock and awe approach involving subversion, mass destruction, and ).
The Russian economy has its problems (though it's far from 5th rate), but that's not the problem here. Russia's problem is that Washington has Russia in its cross-hairs.
Their economy is not more corrupt than ours. Do I really need to elaborate?
Russia does not have one-man rule. Russia was closer to that under Yeltsin who bombed the legitimately elected Russian Duma into submission, stole the 1996 Presidential election outight with the help of crony oligarchs in the media, and ruled by decree -- and we lionized him for it. Why? Because he was bought and paid for, more than eager to roll over and play dead for the US foreign policy establishment. If we demonize Putin now, it's not because we think he's a tyrant (we know he's nothing of the kind), but because he dares to stand for the Russian national interest (under the NWO, the concept of national interest - including US national interest -- is forbidden).
You say Russian's like his bluster, but that's utterly false. He has 80% popularity because he stands for the nation, is intelligent, gets results and conducts himself with sobriety.
Sorry if you think I'm glorifying him; I'm not and that's far from my intention. I'm just describing what I see.
France + UK + US = FUKUS , the Axis of Evil
When the dollar begins ot lose value; namely when oil, etc stop being priced soley in doallrs, hard asset prices (gas, oil, PMs) may go through the roof.
When the Saudis start taking Rubles and Yuan for their oil, we will see who gets stung the worst.
Putin is in line with a new currency. Don't think for one moment he's not a NWO puppet. They would whack him just as fast as you can blink your eye.
Seems to quite a few folks here that Mr. Putin has been the one doing a lot of "whacking" and usually to good effect.
http://www.businessinsider.com/russian-central-bank-admits-defeat-over-d...
A dose of reality about Ukraine:
1.) It's Putin regime goons that are in Ukraine attacking Ukranians - citizens and army. Here you can see Russian made tanks T-72B1 that are only in Russian army, with so called "seperatist" flags driving in city streets. Either it's Russia or Ukraine - both scenarious it prooves that Putin regime is attacking Ukranians using this banner of "seperatists". http://www.youtube.com/watch?v=_d7m_Ua4wFo
2.) And in this Putin regime propoganda channel material failure http://www.youtube.com/watch?v=Zv39Lc5oSVs you can see & hear two things:
2.1.) It's "separatists" who are shooting to Ukraine army from civilian houses and than run away from them - knowing that they are provoking reply fire and in that way puting civilians under danger.
2.2.) As you can hear - they are saying that Ukraine army is shooting GRAD when actually you can hear GRAD but no explosions, that means that actually it's separatists who are shooting GRAD and not Ukraine army. So here you go - these are the ones who are bombarding houses.
3.) Russian soldier mother recieve information that their sons are dead during training or from heart attack. Those who recieve bodies can't look at them and must be burried during night and must keep silence. No honor to those man. http://www.youtube.com/watch?v=LHE_2NTHGvo
4.) Ukranian people in order to show their honor and respect to those brave Ukranian soldiers who died when stand against Putin regime invasion - kneels and holds hands each other all the way through town.
http://www.youtube.com/watch?v=tMjl1euADEg
5.) Even when at city borders are Putine regime goons and attacking Ukranians - people stand together and to show their support to country & army they gather together and sing anthem.
http://www.youtube.com/watch?v=PILstC9SfoY
These are just Growing pains for Russia. It’s a common knowledge - Growth is painful! People of Russia will come out of it as a much stronger, wealthier, healthier and more independent nation. They’ve seen and survived unimaginable things, so all this pathetic, wall street belly dancing ain’t gonna make them flinch. In a few years we should revisit this subject matter, at which point Russians are going to have much more foods produced locally, many more basic products with a sign “made in Russia” and a gold backed currency that is far more real and stable than all these toilet-dollar-paper printed in the west.
Did you mean those "Made in Russia" Crocodile?
You really don't know Russia at all. You have illusions.
http://www.themoscowtimes.com/business/article/russia-to-import-crocodil...
The Moscow Times?
LMAO!
You might as well quote CNN...
So are you saying they are lying regarding this fact? And name that ultimate source you only trust? RTR? RT? :D
P.S.
By the way...
«Minister of Culture of LNR» Irina Filatova submitted the application against the Ukrainian writer Irena Karpy in which demanded to shoot it under laws of a wartime.
https://news.pn/en/RussiaInvadedUkraine/116100
Of course that Putin regime goon organization is no real ministry - any criminal gang could call their self as ministry.
P.P.S.
Lewis Hamilton Wont Shake Hands With Vladimir Putinhttp://www.youtube.com/watch?v=dQkD3n7akRs#t=45