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Russia Is Preparing For A "Catastrophic" Oil Price Collapse
Vladimir Putin told the state-run TASS news agency that Russia's economy faces a potential "catastrophic" slump in oil prices, saying, as Bloomberg reports, such a scenario is "entirely possible, and we admit it." However, Putin reassures that with reserves at more than $400 billion, the country will weather such a turn of events because "we handle our gold and currency reserves and government reserves sparingly."
“We’re considering all the scenarios, including the so-called catastrophic fall of prices for energy resources, which is entirely possible, and we admit it,” Mr Putin told the state-run Tass news service before attending the G20 summit.
“Our reserves are big enough and they allow us to be sure that we will meet our social commitments and keep all the budgetary processes and the entire economy within a certain framework”
Declining export revenue from oil and natural gas and the central bank’s attempts to shore up the ruble are threatening to exhaust public finances. The non-oil deficit exceeds 10 percent of economic output at a time when the central bank’s defense of the ruble has cut reserves by a fifth from last year’s peak. Still, the currency’s slide helps compensate to an extent as foreign-currency is converted into a larger amount of rubles for the budget.
With $421 billion in international reserves, Russia has a “big enough” buffer to meet all social commitments and maintain budgetary and economy stability, Putin said. The value of the stockpile last week extended its slide to the longest since 2008 as the monetary authority attempted to smooth the ruble’s decline.
“A country like ours finds the situation easier to cope with,” Putin said. “Why? Because we are producers of oil and gas and we handle our gold and currency reserves and government reserves sparingly.”
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"I must break you."
Ivan Drago
What happened to Apollo Creed again?
He lost his hand in 'Happy Gilmore'
And he lost his other arm in Predator.
(golf clap....er...)
yeah, and we all know how that fight ultimately turned out...spoiler alter, was not a good day for Russia
So, class. What have we learned from today's lesson?
Gold is money?
That Russia will have to pimp itself out to China and blow it's savings just to stay alive for another year?
yes and exactly then we will get war, 11/2015, dice are rolled
We've learned that Vlad is a ruthless dictator who will stop at nothing to impoverish, misinform and isolate long-suffering Russians.
"We've learned that Obama is a worthless dictator who will stop at nothing to impoverish, misinform and isolate long-suffering Russians."
There, fixed that for ya.
Some russian media revealed picture of downing MH17 from spy satellite. This is picture is not yet 100% confirm, so it must be cautious.
http://oi62.tinypic.com/2vls6dz.jpg
Another plane shot. But, i repeat, this is not yet 100%.
Some russian media revealed picture of a footprint near the landing site of the satellite now on that comet.
https://s3.amazonaws.com/esa-philea-secure/footprint.jpg
Another space mystery. But, i repeat, this is not yet 100%.
/SARC
Even allowing for a difference in altitude... the image is fishy... given length of an Su-27 relative to the diameter of the fuselage of a 777 and their respective sizes in the image.
Need MOAR hi rez! Generals and spooks are itching for a pissing match, but everyone is afraid to drop trou...
Yes, and there are "agitated" pixels around the jet and the missile trail - but none or little around the airliner. I'm not buying this picture, although I am pretty convinced that there is a real one much like it out there. This is likely a "look that is a fake pic so the whole story is fake" kinda thing.
Edit: higher resolution pic further below. Need to look a bit closer.
If the oil price continues to slide to around 60$ and stays there during a deflationary period of the world economy there are many questions that come to mind :
1° Can the fracking boom in US maintain US production at 9 million BPD ?
2° Can this price level restart economic growth in Trilateral ?
3° What will it do to Brazil's, Venezuela's and Russia's economies. Obviously, India and China as the three new Asian tigers (Korea, Taiwan and Indonesia) benefit from it, as does Japan.
4° What does it do to commodity prices in general?
5° How does this effect the current currency wars ?
6° How will the Repub Congress react to this challenge? They hate regulation of price imposed by others, as the Potus deal on reducing carbon foot print ostensibly signed with China__ but will it be implemented US State side with Keystone Pipeline (big potential culprit) now being planned ?
Long list.
Obviously ??????
If supply dries up Japan can no longer be a entrepot.
When Vlad talks of domestic supply he means domestic supply and domestic supply only............
Vlad has a one horse economy and he HAS to export.
His current trend is to Move 40 % of his Exports (and thus GDP) to Asia. That's his long term pivot as Cameron now bangs his shoe and says : "EU's position, (As long I am speaker for West), will never accept your "aggression" in Ukraine. Step back or we up the sanctions ante. "
He can as the UK banks hold a lot of Russian Oligarchy juice. That is Putin's achilles heel. And Mutti seems caught in the cross wires of her dependence on Nato.
Now, what "obvious" category are you querying? Japan gains from low oil price imports. All the while it devalues its money. In fact, given Japan's currency strategy, its imports in USD may even increase in value. I'll grant you that. The oil price decrease is balanced by Yen decrease. But a Yen collapse to 145 makes that problematic.
@Falek
Actually everyone is riding the same horse.
He goes by the name of "consumer war economy"
Again I am not talking of price , I am talking supply.
The energy needed to do work (or drive around in circles)
Vlad is preparing for a renationalization of claims as happened during the great war and at the end of the Edwardian era.
Ok, Dork. Misread you.
We are talking at cross purposes. My question was on price.
Vlad will have to renationalise the economy. In fact it is defacto renationalised to his buddies, who carry it like the "Trust funds", aka those Isle of Jersey or of Man straw men who run the non-dom trusts in the name of Oligarchs.
Its the oldest game of Oligarchy world. Venice used to play it as well. Thats how old it is.
But it means you have to have a long arm and access to "polonium" or hit men if straw men turn rogue.
From what I've read the break even price in the Eagle Ford averages $60 to $70 a barrel.
All Good Questions. I'll take a stab at some of them...
1. Oil prices vs GDP: Falling Oil prices is GOOD for Oil & Gas Importers (China, India, Korea, Japan, Taiwan), but BAD for Domestic Producers and Exporters (US Shale, Russia, Iran, Venezuela, Canadian Tar Sands) whose cost is >$60.
2. Oil prices vs Currency Wars:
a. Obviously lower Oil+Gas prices means less revenue, and hence less GDP for Energy Exporters opposed to the US, i.e. bad for Russia, Iran and Venezuela. The US wants to see Regime Change (Color Revolutions) in all three countries, so they can gain COMPLETE dominance over energy and thus fully encircle China and its resource needs.
b. Falling energy prices plus Russian Sanctions will probably weaken the Ruble (RUB) further. Ironically they made the 'unpossibly', non-manipulated Ukrainian currency (UAH) skyrocket in the last few days. Go figure. Must be all that gold they have, leased to the NY Fed. ;-)
Solution: The ONLY way out of the Boa-like stranglehold that I see for Russia, Iran, Venezuela and ultimately for China too, is for them to DECOUPLE from the Petrodollar and BIS. Alas, the US has China over the proverbial barrel, as China still holds too many Dollars (in whatever form of Debt) and we know that they will not dump the Dollar-denominated paper Debt. Nor do they have time on their side to convert it into Real Assets that the US can't confiscate or nationalize.
IOW, China is pivotal, but the US has succeeded in neutralizing them with the "Divide & Conquer" Strategy in their war with Russia, Iran and Venezuela (WW 2.5). Rather than presenting a united BRIIC front, China is (and always has been) too damn selfish to TRULY stand up to the US. At this rate, China will eventually pay for their short-sighted selfishness. I suspect.
Because when it comes to "Brains+Deviousness", I put my bet on the Ziocons, not the Chinese. The former have a proven track record of taking over host countries (for thousands years), the latter do not. QED. In fact, I'll wager that the Squid's tentacles have already infiltrated Chinese Finance and Monetary Policy.
Interesting post.
A bit odd that you leave Europe out of the equation. The biggest economy in the world, after all.
Regarding point one : is what really matters is not the variable costs, rather than total costs ? So much has been invested in oil infrastructure over the years that can not be undone, will they not keep producing even at a loss if they can more than cover their variable costs so they loose less ? I have no idea what these variable costs are for the respective countries.
Biggest economy, but one might also argue that it's fully developed.
The world (banks) needs growth.
Every Chinese technocrat reads the Protocols of the Elders of Zion and Mein Kampf as required reading. The Chinese are better at business than the Phoenecians or Greeks or Jews or other Mediterranean peoples will ever be. Keep underestimating them at your own peril.
hey,
not directly an answer to your questions, but interesting article by John Authers on effect of lower oil prices :
http://www.ft.com/intl/cms/s/eacd4860-66a7-11e4-91ab-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Feacd4860-66a7-11e4-91ab-00144feabdc0.html%3Fsiteedition%3Dintl&siteedition=intl&_i_referer=http%3A%2F%2Fwww.ft.com%2Fintl%2Fmarkets%2Fjohn-authers#axzz3J4CmBx4v
You can see 10 articles for free anyway in case you do not have a subscription.
And a question to ZHers, you all are quite cynical about MSM and rightly so, but how do you rate FT ?
I personally learn quite a bit from it, but I am a rookie and have the advantage that I am still on the steep part of the learning curve.
Ukrainian MiG-29 shoots down Boeing MH17
Pic details from 2:17 onwards
http://www.youtube.com/watch?v=oZ5_8azJOBs
Looks like a deliberate leak right before G20 summit in Brisbane.
WOW!
According to the subtitles the picture is from a Boeing email and probably from a US or UK satellite?!?
You can download a copy of Russian engineers' excellent analysis here - or hold your breadth waiting for the West to release one:
http://www.vineyardsaker.co.nz/2014/09/18/malaysian-flight-mh17-crash-an...
Can't tell which satellite that photo has been taken from and can't argue for it's authencity as well. But to be fair, it's just as authentic as NATO blurry pics on Ukraine are.
I also think I should correct myself - the fighter jet in that pic looks more like Su-27 rather than MiG-29:
http://api.ning.com/files/Ug-Ogup9PZ-Ks9Bvu9MfUb6ClDcoYrjA21HkSRBM*ay8f8...
What is hinting torwards authenticity is the claimed source: Boeing and a western satellite.
If you fake something, you reference to your sources, because foreign sources are not under your control - they other side could - in the case of a fake - deliver evidences to proove you wrong.
A higher res photo:
http://slon.ru/images2/2014/11-14/boeing_1tv_hr.jpg
I suspect we could here more about the source of the photo in the coming days (or weeks).
Someone here doesn't find your link to the hires photo and our conversation useful at all... :p
Its not like the Ukes dont have experience shooting down passenger planes. Damn pretty good pics, much better than the grainy NATO/HATO pics lol
Timing is everything Jesus but I cant work out why the BUK system missed the Mig/Su.
The Missile from that fighter sure didnt miss the plane lol
Russia's gold buying won't work out unless they plan on selling in the $14-1500 dollar level or holding it for a very long time. Gold is in a bear market rally at the moment, but it will resume its decline sometime in 2015.
This was my long-term picture from last January which panned out as expected
http://www.globaldeflationnews.com/goldelliott-wave-update-for-week-endi...
Now, short-term, the rally into [B] before resuming the downward trek into [C]
http://www.globaldeflationnews.com/gold-elliott-waves-forecast-a-multi-m...
Sorry, Mr. Eliott Wave does not work for JPM, GS, UBS, Barclays, etc or the FED
WTF? A world leader admiting bad news? I've never heard of that before.
Like you said, Doc....leader.
Obama is a manager, not a leader. And by manager I mean puppet.
TPTB trying to kill Russia's economy before Putin et al kill the dollar?
Very few people understand what makes Putin. Right now, Putin sells oil and gas only for physical gold. Yes, of course, he does not shout about it to the whole world. And he is still accepted as payment, in US dollars. But he immediately changes all those dollars for physical gold. Look at the growth dynamics of the gold reserves of Russia and compare these data with the foreign exchange earnings from oil and gas sales for the same period. The world is not able to survive without oil and gas from Russia. So says the conclusion of the US Geological Survey.
But how long the West can buy oil and gas from Russia in exchange for physical gold?
It's called Check and Mate, gentlemen. Game over.
" And he (Putin) is still accepting payment in US dollars. But he immediately changes all those dollars for physical gold."
If that's true, it's a exceedingly good move. Exchanging worthless paper (any fiat currency like the dollar) for actual goods that, fluctuation or no fluctuation, are going to keep their long-term value because of really limited world reserves (and no possibility of printing nor QE), is exactly what I would have done.
Until someone finally figures out the age-old problem of transforming lead into gold (and therefore make it limitless), gold will remain the only really safe, stable currency in the long run.
Land is another option... use dollars to buy land, but that's more for the average Joe than for a country.
Maybe not lead into gold, but mercury into gold is already achievable if you have access to a nuclear reactor. When was the last time you saw an actual mercury filled thermometer or mercury switch thermostat? Why is the US so opposed to nuclear proliferation? Makes you think...
Lea, problem with investing too much in land is that you cant move it around and take it with you. They can tax you on it to the point where you cant afford to keep it, and they can seize it if they want and pay you for it with worthless paper for less than its worth.
Part of a diversified portfolio which is important unless you're an insider with advanced knowledge of how the rules will be changing.
As my grandfather said, they're not making any more of it (land)
Yeah, the game is almost over for Vlad.
Yeah, the game is almost over for Vlad.
Because his opponents are in agony.
wonder what happens when Russia delcares a 10 fold increase in nat gas in the winter?
i'm not sure that "catastrophic... and we admit it" and "situation easier to cope with" really go together. As with so many other areas of the world, a fuse has been lit. Which one goes bang first? China? Japan? Russia? Iraq? Iran? Greece? Italy? France? Ukraine? Syria? Liberia?
Oh, I tell you friends, we got trouble.
Right here in River City
With a capital T and that rhymes with P and that stands for
President Golf Nut
A convoluted scenario to ponder:
Given - Russia and China are stockpiling gold to bolster their currencies for the inevitable end of the US-dominated petro-dollar. The West is frantically stomping on and manipulating the gold price lower to prevent it from catapulting higher - which would give Russia and China huge profits, strengthen their currencies and increase their use in global trade, thus hastening the fall of the US-petro-dollar.
Our currency wars and Fed intervention to keep the dollar (and stock markets) propped up artificially are another key area of manipulation to keep the dollar value/perception/usage high.
Oil falls under this same scenario. Secret deals with Saudi Arabia and Qatar by Kerry/Obama to cut oil prices to the bone are designed to keep Russia/Putin from profiting from selling their oil and gas, and supplying the EU using their pipelines that transit through Ukraine. Hence the US/GB/EU power grab and support for the neo-Nazi led revolution in Ukraine to remove their pro-Russian president and government. Also, the US deals are designed (should our strategy succeed in Ukraine) to allow Qatar and Saudi Arabia to build their own pipeline that would transit Iran and Syria to Turkey - where it would connect with western pipelines to supply Europe and cut the Russians out of the process. Thus our pseudo-war-on-terror excuses to take down Assad/Syria, fight (and fund, at the same time) the US/Saudi/Israeli-created ISIS, and keep Iran destabilized and out of the equation. Lower gas and oil prices in the US are a bonus from the secret deal made - despite the effects it will have globally on other oil-producing countries who badly need the revenue.
It is a total war using price manipulation of currencies, gold, silver, oil and gas, as well as covert and overt destabilization of countries that threaten our monetary and resource hegemony. It is designed to create internal chaos in the Middle East, tie up the Russian military in Ukraine, use the events there to demonize Putin (and perhaps cause his ouster) - and keep the US-dominated media mouthpieces ramping up the propaganda against Russia on an ongoing basis. The Russia/China pipeline deals scare the shit out of the US - because it stymies our attempts to keep Russian oil and gas profits and usage suppressed - or eliminated entirely. One can only wonder what deals Obama tried to make on his recent trip to China…
How it will end? Badly, one can suppose. But the US doesn't care what damage it causes - as long as we remain the global money-master and superpower controlling the extraction and pricing of resources - all to be traded in the Petro-dollar.
There are no isolated and unconnected events. It is planned chaos, hopefully controlled to some degree. But if it gets out of hand, then so be it. It's just some peripheral collateral damage. Notice that Ukraine has been out of the public eye for some time (mid-term foolishness elections, new boots on the ground in Iraq). So just yesterday the NY Times, prompted by their Pentagon news editors, featured yet another front page "incursion by Russian troops" across the Ukraine border. Friedman had an anti-Putin rant as an op-ed a few days ago. Coincidence? There are no coincidences.
It ends with Dick Cheney and his banker crew nuking Chicago to blame the disappearance of the CME on terrorists. It solves so many problems if the CME just disappears.
that was fucking awesome
O bald one, i love when you post! +100. thank you.
And America will just keep going into debt to feed the FSA and CronyCapitalists...
First Deflation, starting in the energy segment... then, hyperinflation as shit hits the fan.
Seems right on target for a total reset coming soon, to a country near you.
The USA has no reserves...of anything.
Yes we do.... bankers and politicians.
They have all the sheeple. Plenty of that.
IT does have huge reserves of Printing INK and hollow point bullets to be used in case anyone tries to assert their constitutional rights
We have reserves of hubris.
You'd think that the combination of declining oil prices and FedGov's hardon for an escalation of WWIII would have the US adding to the Strategic Reserve to historic levels and then lots more.
unless the plan is for the US to go down. Last lead smelter shut down by the EPA. We are not ready for a big war and will have a hard time ramping up our readiness.
Jew can't be serious.
...Bullshit, Bluster and Bullets?
We will pay you in Stoli like we did in the 80's - no problem
i'll take mine with lime...on the rocks
Does anyone notice Putin is willing to tell the truth (bad news about oil price)publicly?
That's a mark of a leader. Let your people know in advance that things could get ugly.
On our side of the pond it's always" "Everything rosy! Life is good! Nothing to see here. Move along back to your TEEVEE sets."
shillin for the REDS.... kissy kissy
Putin is using words Obama and Bush did not even know existed or could not get to pronounce them correctly.
Just in case the downward spiral in oil and gold prices are the result of price manipulation by forces hostile to Russian resurgence, Putin is putting out the word that it won't work, and that Russia can outlast them.
buy more gold vlad - it's price is collapsing too - you stupid communist fuck!!!
Sure Putin will SAY he's ready just like western high stakes gambler banksters. No, the Russians will suffer but the difference is they are not a bunch of lazy burger eating fatties glued to a TV set. The Russians will suffer with honor.
Of course they're not burger eating fatties. They're vodka swilling drunks.
How the Russians frightened the USS Donald Cook in the Black Sea:
http://www.voltairenet.org/article185860.html
Peak Oil Theory never said that the RETAIL PRICE of oil products would only go up. What the theory says is that the cost of EXTRACTION will keep going up. And this is what is happening. Which is exactly why a deflationary spiral in the retail price is so deadly.
that doesn't hurt, that doesn't hurt, that doesn't hurt.. hahahaha how old is Putin ... like 3 years old
What do the Russian people think.? do you think will share the 400billion with the unwashed masses ... ? C'mon he's a glorious leader, ofcourse he will and alot of that state gold ...
Bullshit... he'll hoard the money and turn the army to oppress the people... same fucking thing these animals alway do !!! repeat history
nice
Oil is the result of geological processes not organic. Jupiter's Atmosphere is largely methane. Is this from Dinosaurs? Look into it.
Not to mention we currently have demonstrable working and third party validated LERN reactors. (traditionally called cold fusion). E-Cat, Look into it.
The issue is the ponzi scheme is dependant on scarce oil and dollar trade. All this is being unwound. Expect to see LERN and other energy technologies made public. If not we are still under Nazi tyranny and control.
oil kisses $40 bbl, figts for 10yrs to get back to 80... US economy goes bannanas another property boom, exports, religion, love, golden age of entertainment for 100 years
.
but no fucking war
“We are leaving the dictatorship of the market where oil goods are based on the dollar and will increase the possibilities of using [other] national currencies: the ruble and the yuan,” Putin just said… (Nov. 14th, 2014)
Most everyone around me in this area NWLA(usa) are oilfield or freeshitarmy, looks like fsa will be the last ones standing...
So... If the USD is indexed to Oil (Petrodollar), and the price of oil is falling because Demand is allegedly down (rather than being manipulated downwards), then this "strengthens" the dollar HOW?
Especially with all the QEs and ZIRP, where are these Petrodollars to find a home (other than in overvalued stocks) and still be called "strong"? All I get is the "Strong" smell of Bullshit, coming from NY and DC.
p.s. DC stands for Dual Citizens, right?
Demon Cunts?
System is pretty simple, J-mafia crew runs the exchange that is supposed to let suppliers and producers determine market price. Problem is these offices are out of the public eye and are now electronic. Thus using HFT etc the prices can be manipulated either up or down. This is why the Chinese are opening up their own exchanges and moving away from a dollar that is printed by the J-mafia run FED. The system has gotten to the point that the valuations are just numbers typed in by the J-mafia so that they can make money day in and day out. Biggest scam ever !!!!
DC stands for Dual Citizens, right?...
K2 well said.
Talk about not setting the words and deeds in opposition?... Who the fuck would know the U.S. has been in a war on terrorism for 13 years and counting?!!!
"This was sent to me by a reader in Australia as an example of the non-stop Putin-bashing coming out of the Australian media ahead of the G-20. Already someone is organizing huge anti-Putin protests which will be given full media play even as protests against other world leaders will be hidden. This feels like the last desperate gasp to try to get a war with Russia (and China) underway to prevent the Ruble (and the Yuan) from toppling the dollar as the global reserve and trade currency."... Mike Rivero WhatReallyHappened.com
Party already started long time ago!...
And Russia is only too happy to egg them on!!!
That sure seems to be whats going on here.
Russia China and gang Vs US, EU, England etc are battling to see whose economy will outlast the other.
Then after world collapses install a new currency backed by gold and start this all over again.
I bet the gold in Fort Knox is there and maybe even more. And as far as claims on it, Possession is nine-tenths of the law.
duel world currency?
Energy?
Food?
Lots of problems coming.
Bp
And at the end of this nasty "trip" we're on... The one who wins this game in the end is the one with the currency that will be worth something!
It's too bad that the vast number of Americans are too fucking stupid to realize this fact!!
Same as it ever was!!!
Aussies are not that smart. They should keep to themselves eating banana down under.
Robert Muldoon, Prime Minister of New Zealand (1975-1984), once said that New Zealanders moving to Australia “raised the IQ of both countries”.
Listen Zero's.
Fuck your Obama and his dirty little "COSTS". This is not a drill people. Aggressive actions `such as` have repercussions.
Beware USSA. You have "SERIOUSLY" bad Karma in this world and it's only getting worse.
Cool Hand Vlad - he possesses a particular brand of sangfroid that is very appealing and very rare among world leaders who typically act like monkeys trying to fuck a football....
Bangalore...you do cause some aggravation here at ZH ... but you do give me a good smile and laugh often ... sometimes the only one all day Thank You...
wow ... oh i was serious ... sad
As long as Russia was playing by the rules the USA garanteed high oil prices for Russia to benefit from.
As soon as Russia stopped obeying the USA has dropped oil price to more natural price levels
What was the mechanism by which they did that?
The US government is well known for its unintended consequences. This play has them too, as they are sticking the 'low oil price' dagger in their own backs as well. IMO, United States lobbyist will save Vlad from $40 oil.
It is wise for Putin to have built up the reserves that Russia did, they did not go on a spending spree, they built reserves. That was sensible. In the short term, oil could spike downwards, in the longer term oil can never stay down. Saudi and their allies are seeking to destroy the heavily leveraged Oil Frackers, and Tar Sand mines. And to regain market share in the big USA market. Plus the US is going along for now, as they think they can kill Russia with low oil prices.
The entire world os going high energy consumption, as the third world grows. Energy can not stay low for long, when it bounces back to real market levels, it will ripe your face off.
"... it will ripe your face off."
Will that leave a mark?
wipe plus rip = ripe
Peak oil isn't about reserves, but rather flow rate.
I rather suspect (fear) that TPTB in the West can FORCE the SDR onto the BRIICS if… IF the following plays out
1. So far, we’ve seen Club Fed (US, EU, Japan) print in synch, like Olympic Synchronized Swimmers. They are all swirling the toilet bowl, and there is little comparative/relative advantage with each other.
2. The comparative/relative advantage lies in exporting inflation to those who are not in the Club (the rest of the world), given that the USD has to be used for international trade.
3. Given 1 and 2, ALL that Club Fed has to do (via their CBs, the IMF, WB and BIS), is to convert their FX holdings to SDRs, and to use the SDR for all international transactions. They can do this overnight. Well, over a long weekend. Literally.
4. Given their combined economic and financial might, the BRIICs and the rest of the world could not compete with their national currencies, and would have to capitulate. The SDR would become the defacto GRC.
Given 1-4, it then comes down to this: Who can front-run whom and pull the pin? Club SDR or Club BRIICS? Think that the CNY can “replace” the USD as the GRC? Think again. All that Club Fed has to do, is to pull the trigger and pass the “GRC Throne” to the SDR: Check Mate! Game over. Meet your new Masters: same as the Old Masters. Neocons + Ziocons. Under this Scenario, WW3 has already been won.
Which is why all this Action & Distraction bullcrap (Ukraine, Sanctions, MENA, ISIS, Ebola, TV, Movies, Pop Music) is just that: Distraction for the real Action going on behind the Scenes. I’d go so far as to argue that… talk of a “Hot WW3” is bullcrap: it merely provides useful cover stories for national leaders for when the Reset button is hit.
WW3 will be won in the Financial capitals of the world: “New York, London, Paris, Munich.” Talk about… pop muzik. Eeny, meeny, miney, mo…” The casualties and collateral damage will be 90% of the world, who will protest openly and host The Hunger Games. The next 9% will maintain The System. The Top 1% will do just fine, and the Top 0.01% will do fantastically well. Per the “Agreements, Terms & Conditions of the Global Oligarchs and Billionaires”. IMHO.
Moscow — The shelves at the Perekrostok supermarket near Proletarskaya Metro in central Moscow are piled high with fresh produce. The meat department looks well-stocked, and the usual wide array of dairy products beckons.
But some of the brand names are unfamiliar to regular shoppers here, and a lot of their favored imported goods are nowhere to be found. An even bigger problem? The price tags, which are escalating – dramatically.
"I'm a person of regular habits, so I can tell you exactly that a grocery bill that came to 3,000 rubles six months ago now costs me closer to 4,500," says Mikhail Sevastyanov, a pensioner. "Like a lot of people, I'm just clenching my teeth and waiting for whatever is coming next."
Marina Volkova, a part-time worker on a tight income, says she can do without the imported French cheese she used to like – it's gone anyway, banned amid Russia's escalating sanctions war with the West over Ukraine. But even the prices for locally produced food are soaring. "You have a list of things to buy, and only so much money. It's getting harder and harder to make it work," she says.Russians have been hammered by economic crises over the past two decades, and perhaps that's why they seem pretty stoic amid the current storm, which has seen the ruble lose 50 percent of its value against the dollar this year – 10 percent in the past week alone – driving up inflation, interest rates and, of course, prices for everyday necessities.
But unlike the hyperinflation and crashes of the 1990s, or even the severe downturn of 2009 – when the West inadvertently inflicted far more economic damage on Russia than sanctions have done – this crisis involves politics.
One factor driving the ruble's plunge are the Western sanctions leveled against Russian banks and state companies over Ukraine. Those have led to a harsh credit squeeze and growing capital flight. Over the summer, the Kremlin struck back with counter-sanctions, banning a whole range of Western foodstuffs.
The customers in Perekrostok seem aware that their problems are to some extent rooted in President Vladimir Putin's spat with the West, but it's not clear that many of them are prepared to blame him – at least, not yet.
Shopper Irina Stoyanova said she was making do by finding cheaper fruits and vegetables in the nearby farmers' market, and doesn't expect things to get much worse: "Yesterday I heard our president on TV, reassuring people that things are under control. Look around you, there's no panic. Russians are used to surviving these things," she says.
Indeed, a survey in August by the Levada Center, Russia's only independent pollster, found that 78 percent of Russians supported the Kremlin's counter-sanctions against the West, while 13 percent thought they were wrong. A similar poll last month found that 73 percent still backed the policy, while 15 percent were opposed.
"Russians know the economic problems are a consequence of sanctions, but they seem to mostly accept what the Russian media tells them and place the blame on the West," says Alexei Grazhdankin, deputy director of the Levada Center. "The Russian leadership's responses are mostly judged to be correct."
Economists say there is no immediate link between the falling ruble and rising prices, and that it may take some time for last week's 10 percent devaluation of the currency to work its way through the economy. Meanwhile, for those who have dollars, shopping in Russia has suddenly become a bonanza. A major news agency noticed this week that tourists to Russia are snapping up bargains in Moscow shops on high-end consumer goods, such as iPhones, which have gone in dollar terms from being the most expensive in Europe to the cheapest in a matter of days.
Ironically, another winner is the Russian government itself, which receives over half of its income in dollars through taxes on oil and gas exports. Russian Finance Minister Anton Siluanov said last month that even though the fall in oil prices is cutting state revenues, every one-ruble drop in the exchange with the dollar rate increases the government's income by up to 200 billion rubles, which it can use to pay pensions, public employee salaries, and other costs.
But that's not a trick that can be repeated more than once, say experts.
"There are more losers than winners in this currency devaluation. We are already seeing a big fall in consumer spending, as people retrench and cut their family costs," says Alexei Devyatov, an economist with UralSib Capital, a Moscow-based investment firm. "Unless the ruble recovers, which seems unlikely, we are probably going to see inflation go into double digits early next year. That's going to be bad news for the economy, and for most Russians."
One unexpected winner is the grocery shopper, Mr. Sevastyanov. He says he learned his lesson from Russia's previous crises, and since early this year he's been spending all his spare cash to buy dollars, which he keeps in a safe place.
"I've already made a tidy little profit," he says.
http://www.csmonitor.com/World/Europe/2014/1112/Falling-ruble-doesn-t-hit-Putin-at-least-not-yet-video
Greece....barter trade with Greece. and Italy. they will peel off before Germany. using small boats, food stuffs. Turkey will be happy to take tolls leave the oil tankers through. Heck the Turks were even willing in ship gold to their ancient Persian enemy.
I for one wish Mr. Putin well, the level of anti Russian propaganda here in Aus has gone into overdrive for the G20. He must be hitting the 1% hard.
yes, he will be "well" !! its the russian people that will suffer .... DUH !!!!
I don't think you will like Putin as much when he and his allies are invading your' country and taking the spoils.
virtually impossible.russia does not have the manpower to invade another country.russia might send a few nukes our way but only if we declare war on them.the west is trying to destroy russia.all russia is doing is defending its self interest.
Couldn't be any worse than what we got now.
So what, Bob? You wished Adolf and Benito well too.
Jumpin' Jack Vlad is a gas , gas, gas!
Russia in general, and Putin in particular, have always been puncticilious with spending.
The largesse we show to people through Soc Sec, Medicare, Medicaid, SNAP, Housing, and the like are viewed in Russia with baffled disbelief.
You may be suprised to know that even at the height of Soviet Communism the Russian authorities were never so generous. The FSA in the US and Western Europe will doubtless be stunned to discover that Russia never believed that making services available at no premium was not the same as being available for free.
In Russia they did (and do) provide all the healthcare you want...just not at the quality you need. If you want the extra quality, then you have to pay for it. They are not ignorant of Supply and Demand in Russia, and never were. They understand that quality must deteriorate to achieve high quantitty.
But they also understand something that the West struggles with.
They understand that not all pay is money, and that deals can be made in return for any of many kinds of payment.
Putin likes to steal stuff.
http://nypost.com/2013/06/21/putin-denies-stealing-krafts-super-bowl-rin...
ny post?
media dumb you down much?
What?? More than the biggest con artist, US??
Shit is gettin serious:
http://www.voltairenet.org/article185860.html
Something doesn't add up in that story.
It quotes an article from Rossíyskaya Gazeta that states the Russian plane was carrying a "Khibiny" device under the fuselage.
Until this incident in April, a "Khibiny" was a nose mounted radar receiver.
It sounds like the Russians developed an effective directional fixed mount vicarator, but that would be a very different device from a radar.
The Russians were the best source for explosively pumped flux compression generators (unless you had some really good friends in the USSA MIC) so why not get trendy and develop something "greener" and more reusable?
There's probably a couple dozen scenarios of what is happening. This is the onethat intrigues me.
In 2009 the demand for oil began to slip as the global economy imploded. Much of the short fall in demand was picked up by the 200 nations of the world and their corporations, to the extent they could, began to accumulate oil by filling hastily created strategic reserves in salt caverns and empty tanks and tankers.
These same nations and their corporations bought Washington's deception that the economy had recovered and that prosperity was jst around the corner.
I'm not sure when the double-dip recession ended and the the triple dip began, but certainly by November 2013, the EU was desperate to get their claws into Ukraine, get it into its zero sum game, and do to it what they had done to the other Eastern European countries who had joined. The media was full of stories about their dissatisfaction.
So Obama approved and Nuland carried out the Ukrainian coup in the Maidan, and Russia's economy, for the most part, was cut out of european action
And all the time Merkel, Obama, Poroshenko were on their knees licking Putin natural gas balls, while they were trying to ruin Russia's economy and currency.
They blamed Russia for the bloodshed in Donbas. Accused them of sending men and equipment over the Russian border to the rebels, but without evidence.
Then MH17 was shot down, again without any proof Russia and the rebels were accused.
Low level fighting in Donbas. The Dutch safety board said high energy objects brought down the plane, but didn't say whether they were bullets or shrapnel or whether they entered on both sides of the fuselage (bullets) or just one side (shrapnel).
The Minsk Protocol reduced the fighting to next to nothing.
The Natural Gas agreement between Russia and Ukraine was signed.
Within a few days of Ukraine getting an agreement, fighting in Donbas becomes more violent than it had ever been.
The price of oil breaks down and oil trades below $80 a barrel.
But at the same time, suddenly MH17 is back in the news, even though we were told not to expect any thing more until the summer of 2015.
http://www.globalresearch.ca/dutch-safety-board-report-dsb-malaysian-mh1...
tp://rt.com/news/205339-mh17-air-plane-malaysian/ jets around mh17
www.dailymail.co.uk/.../Russia-produce-radar-data-proves-milita.
My point here is that the Western Propaganda machine has no problem writing incriminatng articles about Russia but avoids exculpatory ones.
I will not be surprised if, within the next 4 to 6 weeks, we are told that it was indeed the Ukrainian Air Force that brought down the MH17. That it was a rogue operation perpetrated by ultra nationalists, like Svoboda and Pravy Sektor, and the conspitators who have not comitted suicide and fled, have been captured and punished. But, no, youcan't speak to them.
France delivers the Mistral to Russia. The sanctions are recinded. Russia is indemniifed with honeyed lip service.
Oh yeah, the Dow breaks through 19,000 on its way to infinity.
Why would the EU, as distinct from NATO, want Ukraine? Nothing to offer, anything of value in the east under Russian control.
it's never been the EU that wanted Ukraine, silly
Why would the EU, as distinct from NATO, want Ukraine? Nothing to offer, anything of value in the east under Russian control.
@Monty -- Are you a one trick wonder ?
Why would the EU, as distinct from NATO, want Ukraine? Nothing to offer, anything of value in the east under Russian control.
You got me, MB, I can only think of 3 or 4 and I'm sure you will destroy each one of them.
1) Like Iran and Syria before the Maidan -- before Barroso and Ashton made their pitch to Viktor Yanukovych and while Nuland was spreading a $5 billion slush fund around to every Nazi thug she could squeeze into her semitic pussy -- it was America's accepted foreign policy to deprive Russia of all her strategic allies.
2)The EU had not been growing economically of late and like Dracula could use the infusion of blood fo another member to make it's books look better
Ukraine trading in the EU would mean another sucker to buy the exports of the 28 other dwarves. Also Ukraine might have some cheap exports that it did not know the true value of and give them away to the 28.
3) In a reasonably short period of time -- if Ukraine became hooked on the volume of its exports to the other members -- the US and NATO could threaten to take it all away from them if they did not put a full court press on Russia concerning its Crimea bases and attempt to revoke Moscow's leases there.
4) I saved the best for last -- the best in my mind -- and that is the asylum given to Edward Snowden. From previous threads and comments I know that most zh commenters consider Snowden small potatoes in America's scheme of things to be worried about.
I differ with that view.
Publically America could not kick up more of a fuss than they did without creating the suspicion that Snowden really did get the crown jewels. Which he did.
AMERICAN REVENGE AMERICAN PUNISHMENT
Okay Monty, tell me how very wrong I am.
The same reason they wanted Romania and Bulgaria. These places also had nothing to offer. But it is about expanding geographical borders and geopolitical space.
Oh, and Ukraine has vast agricultural land with fertile cherzonem soils. And big agro-firms and biotech companies can't wait to get their hands on them. And already are getting them btw.
Three Kings Wild .
Russia loves King Winter .
https://www.academia.edu/9204956/Slingshot_Atmospheric_Rivers
https://www.academia.edu/9306394/Optimal_Lightning_
https://www.academia.edu/9304658/Optimal_Deserts
If Russian reservers are > the amont the oligarchs want to move to what they perceive as less risky political systems, Russia will be fine.
I think the oligarchs are very likely splitting their ownings across the world, the ultimate political hedge. All investment won't leave Russia, and insiders will make a lot of money from the dumped companies, the cheap stocks.
Russia is not completely corrupt, yet. The US is not so great, relatively. Check with people doing business in both.
If Russian reservers are > the amont the oligarchs want to move to what they perceive as less risky political systems, Russia will be fine.
I think the oligarchs are very likely splitting their ownings across the world, the ultimate political hedge. All investment won't leave Russia, and insiders will make a lot of money from the dumped companies, the cheap stocks.
Russia is not completely corrupt, yet. The US is not so great, relatively. Check with people doing business in both.
The rhetoric communicates that the sanctions won't work as intended.
It would be a great day where the people simply watch Rhodesians and Leninists battle each other, laughing at both of them and ignoring them wholesale.
Again implementing Tesla's and similar inventions would be a great start to this end.
Conflating 2 different matrices in 2 different spheres - the real global economy of demand/supply of physical goods and services (in this case oil) and the financial market pricing of trade flows of the physicals.
Price discovery in the financial markets has gone awry. The disconnect btw the real and financial economy is obvious.
When Russia takes the first step to step out into the now debt induced global economy of papers and deal with the real things, it is a flaw to price its real economy with market prices.
This is so funamental that it is laughable at all these shallow spins.
I give Putin +1 for at least being more truthful than the Obamacare architect - MIT bookworm dickhead architect.
Let's take a close look at Russia's "we're tough, we've been through worse" claim: In a forty-one year span {1904-1945} Russians experienced three revolutions, two World Wars, four lesser wars, a civil war, two famines, six governments, two major genocides, almost a constant state of economic depression and "the red purge". All of the above mentioned wars were fought on Russian soil {Russo-Japanese War to a much lesser extent}. Compare that to what Americans have "suffered". It's not even remotely close.
Putin regime can't much prepare for anything when it's poor economy structure is fully based on oil & gas export. Russia doesn't export tehnology, it imports it from west & china. ot of food products too. So These so caled reserves will burn very fast and what than?
Putin regime has burned it's reserves just on weak ruble from 510$ to 400$ billion. So if oil prices will drop - they will burn fast.
Latvia is supplied with natural gas by who?
Better worry about your own country.
What are Latvian reserves? Debt?
How is regime there?
Is it as popular as Putin Administration?
1.) Now with help of Lithuanian LNG we are independent and can choose what ever supplier we want http://www.euronews.com/2014/10/27/lithuania-declares-energy-independenc... If poor Putin regime is desperate for our money we can choose to buy from it.
2.) I'm not worrying about Latvia but I will spread truth whenever it's possible about Putin regime.
3.) We don't have regime - we have elections here not a show like in Russia where opposition is jailed and Putin stays in power as PM -> President - > PM - > President -> Czar...
4.) Hiter with his propoganda machine also was popular, I think Kim Jong-un is also very popular - because there is no alternative information under regime control. In free countries we are free to criticises our goverment and access information.
Norway LNG what is cost?
US LNG...what will that cost?
What is cost there for Russian NG?
When has Russia not been reliable supplier?
Only problem is Ukraine supported by western enablers ever caused any disruption.
Steal gas, owe money and no accountability
You personally seem fine with your leadership.
Russians support Russian Leadership
Biggest propaganda ever is western MSM, but is losing popularity to alternatives.
You didn't answer about Latvian debt
I will look: Economist World Debt Comparison World Debt Clock
"Norway LNG what is cost?
US LNG...what will that cost?
What is cost there for Russian NG? "
We shall choose cheapest supplier. But we are no more dependent on Putin gas - that is most important factor.
"When has Russia not been reliable supplier?" When invaded brother nation - Ukranians. From brother they have made them as enemies. Ukranians will never go back to Russia. This deep root will stay there forever. Just as with Georgia.
"Russians support Russian Leadership
Biggest propaganda ever is western MSM, but is losing popularity to alternatives."
Mostly are dumbed down just like in US by controlled regime media. Putin regime also is attacking information freedom:
http://globalvoicesonline.org/2014/07/05/russia-internet-censorship-laws...
http://www.reuters.com/article/2013/12/09/us-russia-media-idUSBRE9B80I12...
And Russia Today with Zerohedge is no alternative media - it's Putin regime propoganda asset.
I will repeat this post because in my opinion it’s important to open eyes those who have good intention in their heart but have been misled by elite / regimes of different sides. How I see things is I look at what government is doing – looking at its work, methods and results. And from there it’s basically two sides: those who work in good of common people and protect their individual rights & freedoms, and those who manipulate their people take their rights away and work for elite benefits. Now you look from that perspective and you are going around in so called “alternative media” as this (which actually is not alternative at all – but about that little later) than I’m sure you are aware about US oligarch regime crimes and that they are not working for the people. What you are lacking in information at some sites is about other elites / regimes / oligarchs and how they treat their people. So because of this lack of information you can be easily manipulated to think that there is only one evil elite that rules west and others can be looked at as opposition to this evil – so automatically they are the good guys VS evil west. Well it’s not so at all. If you go back to what I started and those criteria how I divide governments – than you will realize that for example Putin oligarch regime, China elite regime – is not working for their people and is not protecting their individual rights and freedoms. They use the same tactics, the same crimes, the same manipulation in order to gain their elite more power more wealth and hides it under different banners. I’ post links about Putin regime in the end – check them out.This manipulation with your mind is possible using different kind of channels that you think is alternative media – when actually it’s Putin regime asset for brainwashing you. Also US oligarch regime has their alternative media to brainwash you. So it’s really hard to stay focus and not to get lost in this war over your mind. But those criteria I posted can help you.
What Putin regime assets as RT, Zerohedge (because obviously it is Putin regime asset as you will not be able to find any criticism towards from this site towards actions Putin regime do to their people by limiting their freedoms, by internet censorship and of course will stay in line with Putin regime lies that they are not invading Ukraine - when there is evidence
about Putin regime tanks in Ukraine that are not in any country army but only in Russian) does is they are mixing truth with lies. You know – you have to add some sugar for bitter poison. They are well aware about US oligarch crimes and they are well aware that MSM is hiding them from people in west and they are well aware that people in west is seeking the truth that exposes these crimes – so what they do is this – they expose US oligarch regime crimes for what you are so interested in and in this way they are taking your attention and confidence to this source so that you trust them and thank them for bringing truth. And what they do then is they add their Putin regime lies that you automatically accept as truth because they were saying truth about US oligarch regime crimes (not always though). So this is the way they mix truth with lies in order to make you think from their perspective. If they add more paid trolls than mostly this scheme will work and people will live under Putin regime brainwashing machine. So now you know. Now it’s a choice for you to think this trough and start looking at information more with critical thinking. Yes, world is not so simple as we think.
Here are some links to look at and think of if you are cheering for Putin regime:
http://globalvoicesonline.org/2014/07/05/russia-internet-censorship-laws-crackdown/
http://www.washingtonpost.com/world/europe/russias-putin-signs-law-extending-kremlins-grip-over-media/2014/10/15/6d9e8b2c-546b-11e4-809b-8cc0a295c773_story.html
http://www.rferl.org/content/russia-ad-ban-hurts-television/25449900.html
http://www.hrw.org/news/2013/04/24/russia-worst-human-rights-climate-post-soviet-era
http://www.forbes.com/sites/paulroderickgregory/2014/04/12/russian-tv-caught-red-handed-same-guy-same-demonstration-but-three-different-people-spy-bystander-heroic-surgeon/
http://www.youtube.com/watch?v=gkaVIIOE9ys
http://bigstory.ap.org/article/6a2b93aac55c40c9a1b0b0bcc11a07d9/russia-gives-approval-sanctions-compensation
http://www.ibtimes.co.uk/russias-rosneft-asks-48-billion-state-wealth-fund-sanctions-bite-1471332
Hey Petras Lescinskas is that you?
"These so caled reserves will burn very fast and what than?"
With luck he'll invade Latvia and tell the lazy Goebbels crowd:
"All your food supplies are belong to us"
Sure they survive... with all the high tech stuff they export.. vodka for instance.
Even you, Vlad...... https://www.youtube.com/watch?v=rsL6mKxtOlQ
Don"t trust zionist-friendly Putinski. He meets cordially with the head rabbis in Russia, has visited the the holohoax museum in israhell and shaken hands with his buddy Bibi Nutteryahoo. Mind you, even sociopathic "friends" can stab each other in the back!
Russia can't fail they have the West to help
http://newworldorderg20.wordpress.com/2014/11/14/russian-firms-are-making-a-comeback/
http://newworldorderg20.wordpress.com/2014/11/14/1945-british-national-archives-document-reveals-prime-minister-clement-attlee-desire-for-new-world-order-with-russia-u-k-and-u-s/
http://newworldorderg20.wordpress.com/2014/10/27/russias-reliance-on-western-money/
More at http://newworldorderg20.wordpress.com