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Russian Ruble Plunges To New Record Low As Central Bank Hints At Gold Sales
The Ruble collapsed another 2% today breaking above 45 for the first time ever as Bank of Russia's Deputy Governor Ksenia Yudaeva suggested their policy was "quite close" to free floating the currency and desperately tried to jawbone the currency. She suggested that further rate increases were possible, that interventions were part of the "policy package" when repo tool ramps up and, most notably, Moscow could use some of its national foreign currency or even gold bullion reserves – now the world's fifth largest hoard – to pay for buying imports if Western sanctions over Ukraine continue.
- *BANK OF RUSSIA WILL MEET 2016-2017 INFLATION TARGET: YUDAEVA
- *YUDAEVA: RUBLE SEEN STABILIZING BY YEAR END
- *BANK OF RUSSIA'S POLICY QUITE CLOSE TO FREE FLOAT: YUDAEVA
- *YUDAEVA: WE ARE GRADUALLY MOVING AWAY FROM USING CORRIDOR
- *YUDAEVA: WE ARE GRADUALLY MOVING AWAY FROM USING CORRIDOR
- *RUBLE INTERVENTIONS CHANGE PART OF POLICY `PACKAGE': YUDAEVA
- *BANK OF RUSSIA DOESN'T EXCLUDE FURTHER RATE INCREASES: YUDAEVA
USDRUB just broke above 45 for first time ever
which makes you wonder
Charts: Bloomberg
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C'mon Putin, cough up your Gold.
I said it before, and I'll say it again.
"This is not going to end well for Russia"
Are these the same Russians that have survived (and are still surviving) the collapse of their currency and government in the late 80's and throughout the 90's.
The same Russians that have no program equivalent to EBT, Disability, Medicare, Medicaid, etc.
Admittedly, oligarchs are everywhere, but...
Hhmmm, I wonder how American would handle the disappaerance of such programs...?
tick tock motherfuckers...
Yeah. The institutional environment in Russia is a big mess. If the institutional environment changed, however, Russia could be a powerhouse.
Same with India. Strong fundamentals, restrictive politics and bureaucracy.
Yep. the point being that the people in these places are already used to this corrupt bullshit and have found innovative ways to get around it all and still do business. This is the direction America is heading, my point was Americans are ill prepared to handle the kind of reality.
Baloney.
Selling drugs is easy.
They will be selling T-bills and dollars not gold. Sell high buy low.
"They will be selling T-bills and dollars..."
They just announced today their intervention into the fx market (sell dollars, buy rubles) will end as it has been ineffective.
They were blowing throught about $3 billion a month. So no, they won't be selling dollars.
looks like a rope-a-dope announcement to me. the spin doctors of the world have their own reasoning that is not always apparent to others.
why doesn't russia simply offer a gold ruble?
no fucking way...
no fucking way....
It might be a clever ploy if one was a Russian central banker to talk of gold sales to lower the price while actually intending to buy. Sell treasuries and buy gold. hmmm...
manipuflation!
+1
+1
+1.
You read my mind...
You dont sell gold Russia !!!
Find a real strategy
:(
Russia doesn't have enough gold to sell that would make a difference based upon the amount of fiat currency floating around the world. The feral Federal Reserve can print enough worthless dollars to just buy up the physical. It would be the stupidest move in the world for Russia to part with its phyzz.
Unless of course they sell it off-market at a "special price".
I'd guess that the price for gold in 100-ton lots is at least 10x the comex price.
+ an order of magnitude. Maybe $55,000 even...
Especially if the Swiss vote 'Yes' later this month.
When they dump those foreign currency reserves first, shit is going to be hilarious.
I got downvoted when I said Putin the chessplayer has no real strategy or the much famed payment system.
I hope I am wrong, for the sake of balance of power in the world.
The payment system is under development. The problem with Russians is that there are too many initiatives and not much gets done until absolute crisis time.
It's crisis time. Should be up and running in a couple years.
Problem is, when that happens, my guess is that all international payments will have to flow through it, with appropriate fees and possibly fixed exchange rates. Not bullish for the Russians trying to take money out of Russia, but good for the majority who don't have stolen wealth to export.
They are already using Union Pay.
Pay attention.
They have been dumping their foreign currency reserves in an attempt to shore up the ruble. It hasn't worked as the ruble is falling faster than a hooker's panties, so they decided to not sell dollars anymore.
Apparently you haven't been paying attention...
Proving yet again that gold is the currency of last resort....when all else fails gold has value
You mean dollars.
"We're selling gold to raise DOLLARS."
Russia doesn't have any of those which is why their currency is collapsing and they're now confronted with a nasty inflation.
Interestingly they could actually have an energy crisis in Russia because there is no cap ex period there.
or Euros, or whatever someone will accept as payment as the Ruble crumbles
the point is intrinsic value, which currently is their gold that may be converted into other forms of payment other than the Ruble
I thought the ruble was suppose to be the new reserve currency of the world. Uh-ho, who wants to hold onto a currency that is tanking.
Meanwhile plunging gold and silver prices are the lead indicator telling us that deflation via forced debt repudiation is coming soon. Look out below.
Who holds most of that crappy debt?
Baby boomers, the most powerful political block in the nation.
"now the world's fifth largest hoard – to pay for buying imports if Western sanctions over Ukraine continue".
Actually is this a postive for conducting trade in gold going forward ?
It seems like just yesterday when I witnessed the last Ruble collapse. Will they be issuing Ruble number eight..... stay tuned....
did russia buy another letter?
ruble --> rubble?
You mean russia -> prussia?
i suppose russia has no gold stored at NYFRB ... too bad ... it could tell the world it is planning to sell THAT gold ... and, uh, forcing NYFRB to uh, do something
You bring up an interesting point. A few months ago, Germany wanted the gold held by the U.S.
Two days ago, Germany announced their intent to sell gold.
Getting some cash is better than hanging around waiting for a Dear Angela letter.
Germany's gold is now 1 kilo bars in the Bank of China.
There's a monster box of Eagles backing the Comex.
They rent the formerly filled vaults for bizarre Wall St. SMBD sex parties.
Our central bank not Russian, it's like mini federal reserv...
Where is Ron Paul or Craig Roberts when you need them to speak out? This is another real life example of a central bank doing more harm than good. From the very first, the exchange rate for the ruble should have been allowed to fluctuate according to international demand for it.
The central bank's function should be to monitor the operations of the country's banks for the purpose of assuring their operational efficiency, honesty and solvency. Exchange rates should be determined by the crossborder business transactions between two entities at a time, usually numbering in the thousands per day, with the most recent exchange contract being used as a basis for determining the next.
Problem is, the average person works better if they see stability or slight decrease.
Turn up the temp too fast and the frog jumps out of the pot.
ENJOY!
American Financial Markets Have No Relationship To Reality —Paul Craig Roberts and Dave Kranzler. –
“This private use of public policy is unprecedented in history.
Those responsible should be arrested and put on trial and they should simultaneously be sued for damages.”
http://www.degaray.com/?p=4752
Game on. This could end up a shooting war sooner than later.
Gotta get your inflation under control first. "Seperatism" could begin to spread wildly if Putin isn't careful here.
they shouldn't of ban bitcoin! ha!
does it not seem odd that central banks operate in every relevant nation/state?
Slave labor is always in demand.
All fiat currencies will try and run together in their race to the bottom.
Reduces the pesky issue of people going to real money.
I don't agree with your word Relevant however....Every Country that does not let the Central Bankers is have santions or CIA blackswans....events. Then a crack or opening and the bankers get in.....then the IMF aquires that countries resources....or companies...........check it out........DYODD......
Hint at gold sales - push the dollar up / push gold down and then........................ buy more. :-0
Hint at gold sales - push the dollar up / push gold down and then........................ buy more. :-0
Indeed, part of the Putin strategy, a strategy beyond the wildest dreams of the Western international socialists.
Does anyone realize how the election results last night play right into this...? Most - if not all, Republican winners ran on a platform of 'stronger foreign policy' projection around the world, And increased defense $spending. Most of these politicians also want a 'stronger' stance AGAINST Russia. Time will tell, but I don't give it that long before antagonistic rhetoric begins flowing (or shooting) out of the mouths of these Fools, like Diarrhea...
That image did not improve my coffee and banana-nut muffin.
From the NWO perspective, this sort of solves the problem of depressing gold prices and crushing Russia at the same time.
This either ends with Putin being assassinated or war in Europe on a scale not seen since 1945. Either scenario has as good a chance as the other of happening.
oh wait tyler is preaching the petrodollar is dead!!!!! russia will dump treasuries and engage in bilateral trade and the u.s. will be destroyed!!! hahahaha. all of you limp wristed girlie men on here wishing to blow putin should wake up and realize that the u.s. is still firmly entrenched at the top of the pecking order....... russia is getting its ass kicked.....status quo is going nowhere for a long time.....the quicker you all wake up to that, the better off you will be......
Sure thing kito... Are you one of those MMA-wannabe guys I see frequently on the Vegas strip - pompously showing off your latest tattoo to scare all the limp-wristed girly-men away from your ho with the cheap $4500 bolt-ons...?
does it hurt that im insulting your man-crush? the silly american boys on here, believing that their hero putin will topple the evil u.s. empire, paving the way for a new weakened u.s. to become a utopia, where gold will trade freely at barter stations, where freedom will reign once again!!! and of course the new and improved emasculated u.s., with its intelligence, governement and military infrastructure destroyed by the end of the dollar, will somehow magically fend off the onslaught of influence and attacks by larger nations such as china and russia, and hey, even iran!!! yes, utopia in america, just around the corner....all courtesy of putin the great!!!!!
+1
your words have iron
suggestion to sell gold is 6th collum in action like the other russian official that suggested to temper defense modernisation
Election 2014: Mixed results on GMO labeling, cannabis initiatives
http://wtfrly.com/2014/11/05/election-2014-gmo-labeling-cannabis-initiat...
can people read!
"Moscow could use some of its national foreign currency or even gold bullion reserves – now the world's fifth largest hoard – to pay for buying imports if Western sanctions over Ukraine continue."
They will use their FX reserves or GOLD to pay for imports! GOLD TRADE SETTLEMENT ANYONE.
Yes, rather different than "selling" gold.
.
We don't know for sure Putin isn't playing to the the NWO script. Who of us peons know what the f is really going on?
Everyone is Jawboning and I, for one, am not amused.
Russia is NOT going to fork over their gold. It will either be War or the Attack of the Russian Hacker on selected global financial systems networks.
If anyone else had done to the US what we Western society done to Russia, the US probably would have filed a declaration of war by now already, and perhaps justly so. In pondering... How long before Russia considers that path? The US has blaggered China for years about currency manipulation, and yet here in the US using currency inflation and trade-activity as tools of war against Russia - so I think I know which side China will be on - which sets up for quite a long, costly, empire-destroying war.
Why can't we all just get along?
Because Russia wanted free boat parking and doesn't want NATO missiles shoved up his ass.
We cannot let that stand.
We make the rules on this planet.
Gold based foreign trade? Note that when Russia sanctioned European fruits and veggies, Ecuador stepped in. Ecuador has recently loaned/sold Goldman Sachs its gold. If it is a non-recourse loan, maybe it was an artful short sale with Russia providing the means to cover it.
Gold lease rates have spiked. Either they dont have gold, or there are no one willing to lend them gold untill rates are higher. If the gold doesnt exist then what happens to all these shorts that are tradeing.
it seems to me that somehow, the price of gold is being
manipulated lower because there is a very interested buyer
who wants to purchase tonns of the stuff as cheaply
as possible and soon. my guess is that the parties involved are
the same person/s, the buyer is the manipuflators or
manipudeflators, but, they make sure nothing is as it
appears and nothing adds up.
who is driving this train anyway and where
is it going?
It may not be a buyer -- there's probably not that much physical available at this price.
I see two possibilities: a bank or banks that held gold are in serious trouble and are dumping tier-one assets to cover, or that banks(s) that shorted gold or wrote bogus paper that is going to delivery are pushing gold down to reduce their exposure when force majeure is called.
Note that both of these end up with gold launching like a rocket when the news finally breaks.
pushing the price down via the futures market, buying physical
with a default swap for protection. could that be legal or
a sensible strategy?
The "pushing the price down" part isn't legal, as it's manipulation, but good luck getting enforcement on that.
The rest makes sense, but I honestly don't think physical is available in these volumes on the open market, and anyone writing insurance on that deal would have to know that, so I doubt this is a real trading strategy. It's the volumes involved that define what can take place. To put it in perspective, the notional value of the futures traded this morning is equal to about 1.3 million ounces, or 16% of COMEX.
What is very interesting to me, is that someone(s) pulled 4% of COMEX's gold stocks (321,000 ounces) out of the exchange yesterday, and then overnight gold futures get whacked. I strongly suspect these two are connected, and it supports the force majeure interpretation.
Cat out of the bag , or Cat in Catastrophe ?
See
https://www.academia.edu/9136281/Acropolis_and_Catastrophe_Theory_
The ruble did the same thing in 2008-09 when the Western system was crashing. Almost every asset is doing the same thing, except stocks. I think there is a lot more going on here than some Russian foreign policy issues. The paper system is still trapped in a USD centric model, and everything is falling apart. As long as the pumpers of oil and growers of food take USD, economic meltdown will always look the same from inside the box. That being said, all around the the outside of the box is where gold rules.
I agree. We're seeing a lot of wildly different data points that are all trending like they did in 2008.
My gut tells me something broke inside the system, and that Japan's move was supposed to un-break it and had unintended consequences that broke things even more. I'm getting a very strong September 2008 vibe from all this, and have a feeling that even when the news comes out it's just the tip of the iceberg.
This (something broke inside the system) thought occured to me six weeks ago when China dumped over 500 billion into their market (china, 500 billion stealth QE). Seemed a very 2008 emergency TARPish move, though it was compleatly ignored by media.
Thanks for your thoughts.
What a lot of people who do not know, CBR is a private entity whom specifically states does not have to work for the interest of the nation. That said, CBR will be undergoing an investigation and who knows, heads may start rolling: http://ria.ru/economy/20141105/1031721880.html#ixzz3I8wE7K6H
There is speculation that they are also part of the widly told 5th coloumnists that are working against Russia and Putins policies. Problem is, many powerful people have their hands in this and Putin, regardless of people thinking he is a dictator, cannot just rid of them.
That being said, they mentioned to use gold for purchase of foreign goods. But it is a maybe, not guarenteed. With the pending investigation, they may not do it in fear of going to jail. But what is a problem is that while many nations use "talk" to help their economies, Russian CB has a long history of using "talk" to hurt it. This is now third time this person in CB mentions something and currency devalues.
Whatever. At least Russian Ruble isn't the only currency going down. At 44 rubles to USD, still higher than yen and rupee. Inflation is over exaggerated in Russia, depending on the product of course. Some people are now taking advantage of all this to increase costs of goods. No one is investigating cause the guys in charge of it, is ignoring the problem (another guy who should be in jail).
These Problems are problems mostly created by Russians. They have Yeltsin drunk era moniterists who are doing far more harm than good.
Edit: another food for thought is that many banks in Russia were stripped recently by CBR and as some of them were due to money laundering, some otheres werr considered questionable. While Russian CBR holds over 1,100 tons of gold, apparently many banks like VBT has their own gold reserves to use as liquidity. And the question is, if these other banks had gold reserves as well, did CBR just take it?
Saving grace for Russia is that the country is filled with silver and gold. Apparently there are still plenty of untapped gold mines in Russia'a Siberia and Urals. Add in their work in Zimbabwe for Platinum mining, Russians can be fine. Unless CB takes it all. At that point, government needs to intervene.
Good Post.
Much higher quantity in real, though...
Now where does record Russian monthly gold purchaeses fit into this scenario?
This Russia press release is for public consumption, both foreign and domestic. What the real status of things is, is not clear.
We are dealing with a war started by the USA against Russia after the Shochi Winter Olympics. First, it was snubbing the Olympics by no-show. Next, it was the Putsch purchased in the Ukraine for US$5 billion. Then, it was the hot war fueled by Blackwater-type mercenaries. An airplane get shot down but hits the wrong soil. Crimea get re-integrated into Russia. Most of the World can not pronounce the names of the Ukrainian cities - most of the USA has no clue where the Ukraine is. The Ukraine is hopelessly corrupt and financially bankrupt. Russian gas is threatened to get cut off from the Ukraine. Now, the Russians supposedly got partial payment.
Then, the Soroses of the world started shorting the Ruble. Next comes a 25% plunge in the value of crude (occurring after "Peak Oil"). Now, the Russians, being eminent chess-players, did not anticipate and plan for all of that. Are they caught with their drawers down, dumb and stupid (and drunk). They did not hedge the price of their outputs of gas and oil with Glencore and possibly the FX trading value of the Ruble as well. This is the Stalingrad which they are going to lose. Gold now has no value and silver less. The only repository of dignity and worth is in the USA and the US Dollar.
All of this occurred in 8 months of 2014. Think back to where everything was in November 2013. Think about the status today. What is the most desperate nation on the face of the earth. Eventually, the bully gets kicked in the balls and gets bloodied.
I think many of you here are over reacting and being a tad bit more dramatic. While people flung their arms and crued at Indias currency tanking, in the end, the country is still opperating. Russias budget, by the most part, is reliant on domestic conaumption. Oil, gas and metals make up a big part tgough, and even if the oil prices went down, ruble did too, and thus they are ending up with a surplus because of it.
Problems now are going to be the basic consumer. While average wage now is significant compared to a decade ago, it isnt going up this year now. So with prices of goods going up, that means either consumers will spend less, or companies are going to have to sell their products at comptetitive rates. This doesnt mean a country will just dissapear or their economy will tank. Iran, after years of sanctions and hyper inflation, is still doing quite well for that matter. Biggest factor right now is that Yuan to Ruble is 7:1 and this is important as both sides agreed to purchase in each others currencies and China is biggest for Russia in consumer product sales.
That last Gold & Ruble chart shows pretty clearly who the recent Gold seller is, IMO.
I like Russia and I like Russians.
But much of the talk here on ZH with regard to them has been messianic in its intensity and tone.
If men were so great (including government men) there would need be no governments.
Everything always makes sense eventually. Saudi Arabia lowered the oil price to dislodge Russian gold from their hands due to physical shortages on the COMEX in order to keep the ponzi in gold paper going.
Now oil prices went up because of a kaboom at a pipeline...
Like I've been saying for a while, all this machinations in oil and metals is part of the New Bolshevik strategy to bring Russia to its knees. No matter, they will fail as Putin seems to be four steps ahead of the scum as he has a good history of understanding the bolshevik mindset and has experience in offing the ones that needed it.
http://m.youtube.com/watch?v=UWLIgjB9gGw
http://m.youtube.com/watch?v=kIfOjkB17BA
Country that has EVERYTHING - oil, gas, every mineral imaginable, smart and industrious people (with special mentality, sure, and not all, but enough), lots of arable land, rivers, lakes, forests...
Country that has EVERYTHING - oil, gas, every mineral imaginable, smart and industrious people (with special mentality, sure, and not all, but enough), lots of arable land, rivers, lakes, forests...
Think again:
http://www.youtube.com/watch?v=QrU1hZxSEXQ
Enough...
You are just stupid.
Rather than selling gold for paper money gain, Russia should use it's gold reserves to back the Ruble.
A gold-backed Ruble would DESTROY the Ruble shorts, and bring serious pain for the other global currencies.
Good idea, but not yet. Rouble like all other currencies are tumbling under USD strength. When the US is most vulnerable... then they wil go gold backed in concert with China.
Ok great. The Ruble is down... who gives a fuck? Makes more Russian roubles per barrel of oil exported. Strong USD across all currencies .. why? Because the feckin' Fed now has its QE hands tied with a REP Congress and no more room for QE wthin the US fixed income markets with 10 yr yields at 2.33%.
Aooo, all know that US is not the next QE doosh bag ... JPY was and that began the bullish USD move with EUR still to follow. Strong USD will put pressure on Gold. Next move is :
REPs talk about austerity / cutting Federal budget deficit or...? Sure can talk about cutting taxes, removing medical device tax under ObolaCare (means very little), less Inv Banking regs (watch Fauxcahontas do her native American twerking dance)... so what...does nothing except ..... put upward pressure on interest rates.
There is very little that REP Congress can do that will prevent interest rates rising very soon, or relent and let the Fed do another version of QE. Radical = evevybody with reported ncome < 250k get a 10% tax rebate (literally give 90% of Americans cash directly).
None of this is going to work. Must have deflation which will lead to ulitmately gold much, much higher.
After inauguration, will the new Senate pass the "Audit the Fed" bill? Methinks the answer is "Neigh!"
Ladys and Gentleman
Close the borders
Clean out the doj
Charge SHIELD
This is America's last chance
Scott Walker 2016
Mr Putin meet Mr Soros
The spread between physical, and paper isn't wide enough for panic yet.
That being said, it's starting to take longer for me to receive my orders.
What is keeping Russia from demanding gold for oil/gas priced in US dollars? Then let the central banks sell all they want it will only further enrich Russia.
Historically, when China demanded gold for their exports, it triggered the opium wars. Today no one is stupid enough to invade Russia to force them to accept fiat currency (modern opium) for their hard assets (oil/gas).
You think Putin is stupid enough to sell gold for a US printed paper backed with air? The US dollar is not worth the paper it's written on it's even worst than the continental. I just don't understand why the world has to keep US debt for reserve...it's a note, a promise to pay with what I wonder?
Sure is strange how "news reports" work, eh? The whole "developed" world competes to make their currency weak (as in fall in value relative to the others, and in absolute terms). But when Russia currency falls, somehow people think that's bad for Russia!
It would be nice if there was a tiny bit of consistency in reporting. I mean, authors should at least take a position on whether a falling currency is good or bad, then incorporate that conclusion in all articles about all currencies.
I don't claim to understand all the dynamics of the fall in Russian currency, but off hand it seems to me that Russia is a big [energy] exporter, and receives payment in other currencies, not rubles. And within the local economy, prices and expenses both fall as the local currency falls, so not much consequence there either. Except of course for anyone who want to purchase foreign-made goods. In contrast to that, of course, anyone who wants to sell their products to foreigners must be jumping in glee (so conventional wisdom says).
Here is betting Russia continues to buy gold... which conveniently for them is falling along with their local currency. Russia can withstand this currency inconvenience. If they need to buy foreign-made goods, they can buy with foreign currencies they acquire for their energy products, which they receive in huge quantities on a regular basis.
No Central Bank, i.e. government tells the truth. It's a fade.
I can see a possible strategy: China and Russia have large amounts of USD reserves. China and Russia want more gold. They want to maximize their gold purchases with a strong USD. The stronger the dollar, the cheaper gold will become. They know who's dangerously leveraged and more so everyday. I do love my country but not those institutions who hide behind her good name and soil our reputation.
If Harvey Organ and Jim Willie are correct, then we may be seeing the "end game" being played out.
Look at CME CLEAR rules. You wanted paper trades out of the market, you got it. Unfortunately 75% of trade was that paper without it the price will collapse, as we are seeing (as it did in 2007 2009).
Notice price objective is $2
http://stockcharts.com/def/servlet/SC.pnf?chart=$silver,PGTLWANRBR[PA!B13][D][F1!3!!!2!20]&pref=G
Then they should BARTER GAS/Oil for Goods directly.