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Russian Ruble Crashes To New Record Lows - Intervention Imminent?
Despite yesterday's big bounce back in the price of oil, this morning's weakness across the crude complex has rekindled selling pressure on the Russian Ruble as it crashes back to yesterday's record lows against the USD.
At around 54 Ruble to the USD, yesterday saw 'alleged' intervention by the Russian Central Bank with a dramatic reversal back to around 50 intraday... it appears the market wants to test the Central Bank's free-float commitment once again.
Yesterday saw notable Treasury selling as the Ruble was rescued/intervened, one wonders if the move higher in yields for 30Y bonds in the last few minutes signal Russian central bank intervention coming soon. [Sell TSY, Rcv USD, sell USD, buy RUB]
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WAR CURRENCY BITCHEZ
Ruble backed by oil
USD backed by methane
Printing and ration cards. Back in the USSR.
USD backed by Meth...shoulda stopped there
Meth babies need Common Core....thanks Jeb Bush.
Does it really matter? Russia has no debt, large Fx reserves, abundant cheap energy reserves and a lot of Gold. It could, if it so wanted (And will when it suits) back the Ruble with Gold.
On the other hand, The US has $18 Trillion debt plus another $100 Trillion in off balance sheet liabilities and no Gold.
Eventually, reality catches up....and it can be a bitch.
It seems to me like its not all just about the financial condition of the country but the citizens of Russia. Unlike America, they stand behind and support their
leader even as hardship befalls upon them like possibly hyperinflation. This is a sign of a true country that can survive anything, like ww3. Americans can keep on fighting over who gets the last door crasher tv on sale at best buy.
+1000
But please explain to our "Leaders" in DC that, on neither issue do they have ANY advantage....
DS,
So a smart American backs the psychopathic killer clowns in government who created this fiasco?
Lemming, meet cliff.
The USA has had 50 or more years to provide a good example and lead from the front, and all it's done is piss it up against the wall. I AM thinking of Washington and not the people.
DavidC
I still do business in Russia and have been for 20+ years. I keep trying to explain to people that the Russian people are very "hardened" as it were. They take education and their own destinys seriously. They have been living through hell since the Ruble collapsed back in the late 80's and early 90's. They have lived through the collapse of a currency with no form of welfare.
I wonder how the average American will fare when the SNAP cards no longer work. People in 'merica are just plain dumb to think that they have some advantage over the vast majority of people in other countries. In my opinion, Americans have yet to see what real poverty is.
Bingo.
When they do -- it will not be pretty without an extremely brutal police force. Good thing the US doesn't have one of ... shit nevermind.
That's it ! I'm buying Ruble calls from here on out.
Stolichnaya...
That's what I'm talking about: A Stoli-backed currency.
When they do -- it will not be pretty without an extremely brutal police force. Good thing the US doesn't have one of ... shit nevermind.
To your point H-T. Great listen on raising the question(s) of why the Americans keeps paying "moar" for it!
At the end of the day the buck stops at the feet of the Re-public!
WTF?
They might intervene, they might not!!! But they won't break like 1989, if this is what all the hopey talk is about on WS and DC, with regard to this bullshit exchange rate!!
Putin has never been more popular at home or abroad, America never weaker, Obama is a pure fucking clown act, diplomatically speaking and people think somehow "were on top"!!!
Putin is in a zero sum game with us, they know there will be pain, and they feel like they can take it! The question is what kind of pain can the US/EU take and for how long, that's what everyone on the planet is dying to find out?
Tick Tock debt addicted, ponzi economies, tick tock!
I'm not Ed Glosser, trivial psychic - https://screen.yahoo.com/ed-glosser-trivial-psychic-limited-000000664.html -
- but I definitely am getting that 2000 or 2007 feeling all over and everywhere.
It feels like something huge on a global level is about to break or catch fire.
As a wise but formally uneducated person's protest sign once read, "Shit's all fucked up and shit!"
Pure poetry.
??? ? ???? ?????!
Goddammit, how can a blog run by a Russian apparatchik not be able to take cyrillic comments?
Huy v zhopu, Putin!
Go coddle your Regin program
Yet another Amerikan Patriot alias...
USD backed by hot air
There, fixed that for you.
USD is backed by US military
Congrats, you qualify for the dumbest f-ing post of the day....stay tuned
Congrats...
And the U.S. military has faced what sort of enemy with what sort of defensive/offensive capabilities, since... When?
Actually I had cattle in mind, speciffically bulls.
Perhaps. Wake us when Putin demands Rubles for all Russian gas and oil. Nothing changes otherwise.
Why doesn't he demand payment in USD? Oh wait.
He is. And, turning around & sticking right up the Criminal Al Fraud UNITED STATES, CORP. INC. Asses & buying Gold with the Fake US Dollars.
Vlad: I want to exchange these USTs for cash."
Vendor: "Sorry, we don't take those anymore."
"Who will?"
"Someone down in the lower level of the flea market will give you 10 cents on the Dollar. Go there, ask for "Jamie."
USD backed by war.
FTFY.
The ruble's backed by the full faith and credit of the Russian government, just like the USD.
Problem is, that Russian government has debauched the currency and outright defaulted on it so many times and so recently that there's not much faith left.
I think you confused something here:
there's not much debt left
And that happened before Putin became president...
Who gave permission to open that casino again, Bruno, Rocko, get over there and check their books, I smell 3 day old fish.
Back that ruble with a 55 gallon barrel of oil.
Beacuse a standard barrel is not enough!
What's another 13 gallons a barrel between friends.
The inherent problem is currency wars usually turn into shooting wars.
"War is politics by other means" Carl von Clausewitz
having said that, a currency "war" is a misnomer, in this case we have a classic case of a national (state) defender (i.e. the National Bank of Russia) and an international attacker coalition, i.e. everybody that wants to bet on the Rouble in the financial FX markets
your "shooting war" paradigm would be correct if Russia would find the fingerprints of state actors like CBs all over the place. and this is completely unlikely. why should they? they have the megabanks, the rating agencies and the "investors" for that, as Jesse of the "Cafe Americain" once quipped the dreadnoughts, the destroyers (and - my insertion - the free bloodbath privateers)
(I'm still getting used to your cultural bias (eh) of wishing for a shooting war. Very, very uneuropean, you know? ;-/
European nations have been the source of the biggest two wars thus far in the whole of human history, your "getting used to [our] cultural biases of wishing for a shooting war," notwithstanding.
How entirely ignorant and "uneuropean" a statement, you know?
Ultimately, despite your conviction to the contrary, the EU block can not stand, man.
Now for a White Russian.
cultures change. specifically, our cultures are - to my personal chagrin - a tad more on the side of the post-heroic, since WWII
go on, TIS, you are the biggest kid in this block, in my eyes (yes, I mean it as a compliment). explain to me that Europe is a war-thirsty gun-worshipping armageddon-wishing continent. your gauntlet, your choice of weapons. I'll make it easy: our friend "Haus" claims to be an American from the South. I claim that his bias for "Armageddon is coming" is cultural and typical, and a tad alien in Europe. "Not What Conchita Wurst Would Say"
Usually I have to point out that the EU countries are not completely "socialist" and "pacifist". Now I point to a "WOAR!" bias from a "Dixie Warrior" and what happens? ;-)
You know my "WOAR" bias is tounge and cheek.
Good straw man, man.
perhaps. the difference is in humour. in the sense that I'm not laughing. probably my fault, but nothing I can really change. In this context, I'm the alien. Question is: would you prefer to have this club called "ZH commentariat" an Old Dixie-only venue? or are humourless continentals welcome, too?
I am merely suggesting that you're dramatically over-emphasizing "cultural" inclinations as the trigger/cause of major, global events in the course of human history, and to look to the divisive and manipulative hand of the Money Masters for a much more revealing source of what motivates events.
ok, I'll backtrack (too). My comment was twofold: 1) no shooting war because Russia can't point to a state actor. 2) Haus, your "woar" isn't funny, where you claim that you live
the "money masters" as hidden real actors... our continental fascist regimes had the same problem. how do you make them accountable... from the outside? Invade London and NY?
<<<Invade London and NY?>>>
Would be a good start.
Also for your future refrence -- tongue and cheek =/= is not meant to be funny. Its more of a backwards way of illustrating things that are ironic. I'll give you the benefit of the doubt. You are not a native speaker, yet your English is excellent. This is a nuance in the language, which I assume you just didn't know.
Indeed, today I learned something from you, I was not aware of this nuance. To come back to London and NY, how about a "Homer Simpson" glass dome? I think at this point people in Moscow would dance on the street if they could manage to do that
I'm the biggest believer that the London-Manhattan axis/complex, which straddles the pond, is the most influential "decider" of what should be set in motion since at least the late 1800s.
Passing of the baton, deus ex machina, and all that.
the two eyes of the financial brain of the world. still in competition with each other, and both quite contemptuos of the rest of the world, aka "the markets to be managed". the drivers of globalization, megacorporations and the champions of free movement of finance. a marriage of interests in global scope
Ghordius, I know you're sincere in what you proclaim, and that you've been around a while. You and I agree on more things than not.
I think that the main source of our disagreement is our respective outlook over the stability of the European Union - especially in terms of the ability of co-member states being able to continue using a common currency given their dramatically different cultures, economic structures and very budget surpluses/deficits (and massively different efficiencies/inefficiencies in terms of government budgets/spending; e.g. Greece vs Germany).
So wait Ghordo --
When we are talking about the mereits of the EUR, you assert that one justification for the EUR is to avoid the currency war being waged against Russia right now.
When we are talking about the USD/RUP you assert it isn't a currency war.
Which way is it man?
The only reason I am advocating for a shooting war (tongue and cheek mind you), is as soon as a EU/NATO country gets invaded by the Ruskies, and NATO and the EU doesn't do shit, except squawk and send a few strongly written letters -- the quicker the Eastern EU block realizes how screwed they are, and Russia begins to peel them off, thus destroying the "Irreversability" of the "expirment" and thus brining about its end that much quicker.
Eh? What I don't want to ever see again is intra-european currency wars. And I also don't want a shooting war on this continent
of course this USD/RUP is part of the current currency wars, but specifically this "bout" is not state initiated. a profound difference... even for the Russians
Pray tell, what benefit do people in Germany get by a hypothetical French-Frac not getting monkied around with?
::awaits some form of the European Unity argument::
the benefit of a Deutsche Mark not shooting to the moon and so making Germany utterly incompetitive? just look how much CHF the SNB had to print. Imagine for a moment what would happen if markets could bet on the DM. Germany wants to export, remember?
Germany is not so competitive. It is increasingly slothful and inefficient and ageing. The D-Mark was the currency of the 1970s, but today Germany is only competing because it produces in Slovakia, Poland, Hungary, Romania and not in Germany. Net Investment in Germany looks sick.
Germany is rated #4 my the World Economic forum for 2014.
Its population is aging -- which is the largest problem in the country. Germany needs 4-6 million people in their 20s-40s who are independnelty educated and wealthy. I see 3 nations that could help Germany hit this number;
1) Argentia
2) Israel
3) USA
Germany needs to change its immigration policies re; these three lands (see the German Right of Return) and quickly, else in 2040 Germany will be 15% smaller, and still have an aging population.
You are potty. Germany is breeding Turks and Africans on a major scale and providing welfare and Kitas for them. Germany has a phenomenal non-White non-Christian birth rate
This is the problem. These people do not generate income to the extent that their Germanic coutnerparts do.
However, when you compare the top 50 names for kids in Germany (for year 2013)
http://www.beliebte-vornamen.de/jahrgang/j2013
Unlike in the UK where:
http://www.telegraph.co.uk/news/uknews/11260549/Mohammad-and-Sophia-most...
Moreover, the BfH recently decided that the social services system here can deny social services to anyone not a CITIZEN of EU member states. Simple residency or Asylum in another EU member state will not suffice. Whereas in the UK and France -- everyone gets everything for free. They are truyl fucked.
Raw materials and energy my friend.
Prices go down with a strong currency if you have to import all this stuff.
that part of the price calculation is very small, compared to the rest of the world, in particular the US. in fact, if you ever listen to German industrialists, you'll hear that any price for raw materials and energy are good (as long as they are the same worldwide), for the German industry. in fact, the higher they are, the more competitive German products become
quality + raw materials + energy = product
if your "quality" part is high, and the other two rise... your qualitatively higher product has less price differential from a shitty product (note the historically very high energy taxes, in Europe)
Sure, so if the equation looks like this;
(quality (+)) + (raw materials (-)) + (energy (-)) = product
And the price of the value added/quality increases in proportion to the reductiong in raw materials and energy costs, which it would, the product finds its price. This would really depend on what % of the product comes from each of these components. If its 80-10-10 then Germany has a problem. If its 50-25-25 the price of the product would not change.
The only industry in Germany that would get slaughtered by a NEURO is the coal in the NRW.
if the NEURO itself is not target of the same-but-inverse FX speculation that is ailing the Rouble. at which point... good night. now, again, please have a look at the current speculative levels on the EUR. you'd be painting a huge FX cross on two medium-sized currencies with huge capital red letters saying: "speculate, here". and this without involving the Dollar, which would generate two further FX crosses
you can trust the FX megabanksters to do the right thing, right? I mean, it's not like we are hearing of barely concealed scandals, eh?
I have no doubt that London and New York would drive the NEURO through the roof and the EUR through the floor. This however, doesn't change the simple fact that -- such an inflation would drive energy and raw material prices through the floor. It would also force German industry to make its value added part of the product more efficient. It would force reforms within the social system ca., Schröder 2005 -- and things would work out. To tell me that it would be the end of German export oriented manufacturing is just silly. See Germany 1948-1999. See German growth 1948-1999 (ca., 2.5% per year) vs 1999-2014 (ca., 0.8% per year).
Germany can deal with a EUR a 1.94 EUR/USD without breaking a sweat at current global growth rates, according to Deutsche Bank:
http://www.zerohedge.com/news/2013-01-28/euro-soars-where-max-pain-europe
EDIT - Couple that with tariffs for goods that compete with domestically produced goods within a new currency Zone, and Germany would still have access to a market with well over 100 million people tariff free. Make the import of raw materials tariff free, and things would function in the import/export markets as they did from 48-99. It won't be the end of the world. A little bit of research dismisses the "OMFG GERMANY WILL DIE WITHOUT THE EUR" narrative the media uses to scare the Germans into voting against their own interests.
I think you mean deflation. anyway, with the current levels of speculative ammo the DEM would shoot easily higher, perhaps twice or four times as much, with the BuBa printing DMs like mad and having no clue what to buy... the whole German stock market and sov debt? perhaps southern european sovereign bonds? or would you prefer USTs?
How about distribute it directly to the population, and instead of shit sitting in reserves, thus is increases both M and V in the equation MV = Py as opposed to just M which is what our shithead bankers are doing now.
interesting idea. but reserves are valuable. see the current lack of them in the case of the Russian national bank. see how China's case, i.e. the opposite
it would amount to a subsidy. in most cases, a bonus... until it becomes a malus, as subsidies often do
Russia hasn't touched the $450 billion reserve, it is still the third largest in the world- in fact, it is the biggest buyer of gold now because it has too much cash.
Besides it has another $50 billion in a separate national fund, the source of the $3 billion lent to Yanukovich
Not to forget, it is still earning dollars with the previous contracts.
Russians have no intention of invading EU countries. You are histrionic. The EU is simply the civilian arm of NATO, it is the Unelected Subcommittee of SHAPE in fact controlling the populace.
NATO overlays Europe and the EU is a sub-component, rather like a puppet regime put in place to hold down the populace. They cannot get rid of it and cannot affect its policies, and it works hand in glove with Washington's Military Occupation Force NATO
so what do we have here? speculation on top of speculative attacks, specifically speculation on when and how the Russian national bank will intervene
my bet would be... sparingly and late. they have little ammo to start with. the classic continental national bank approach would be to hurt the biggest speculators in the least expected moment. remember that a central bank has one product: it's currency. and the natural (and politically mandated) wish to be the price maker for it. myself, I would enter this churning waters full of blood only if I was a big fish. this is something for big killer whales, not small wanna-be predators of the size of a piranha
Wrong, the Russians have still a big ammo compared to the bankrupt Western clowns pretending to be still "powerful"....
Russia hasn't touched the $450 billion reserve, the third biggest in the world (compare that to the $110 billion US reserve over a $18 trillion debt)- Besides, Russia is the biggest buyer of gold now because it is too liquid.
Not to mention it still has $50 billion in a separate national fund- the source of the $3 billion lent to Yanukovich.
Not to forget, it is still earning dollars with the previous contracts.
But really, it is already getting out of the dollar, it will be dollar-free in two years & the weak Ruble is far less a problem than a collapsed dollar reset which could be anyday now.
We hope the intervention doesn't come in the form of missiles
We will get intervention alright...but it will cost some blood.
desperate times, calls for deperate actions.
Western media:
-Yen collapsing = wonderful news for Japan.
-Ruble collapsing = Russia is going to hell in a handbasket.
I pointed this out a few weeks ago.
Its an excellent question. I'd love to see Santelli ask this on air live -- and watch people go ummmm errrrrr well, ughhhhhh
point us to the story that says a collapsing yen is good for japan
Took all of 10 seconds;
http://online.wsj.com/articles/weak-yen-lifts-japan-corporate-profits-in...
higher japanese equities is the best you got.
technically is the article incorrect anyway?
http://www.forbes.com/sites/stephenharner/2014/09/25/whither-japan-stock...
"On September 16, questioned about the negative effects of a weaker yen while speaking to a business group in Osaka,, Kuroda avoided suggesting that yen depreciation is “bad,” saying said only that BOJ is working to ensure exchange rate “stability.” Speaking later to the press, he stated plainly that yen depreciation is “natural” and is not “negative” for the Japanese economy."
http://blogs.wsj.com/economics/2014/10/22/japan-vice-minister-calls-weak...
“The exchange rate will be decided against a backdrop where the Bank of Japan is continuing easing while the U.S. is moving towards an exit from monetary easing,” vice economy minister Yasutoshi Nishimura told The Wall Street Journal in an interview. “A gradual weakening in the yen, without any sudden changes, is good for Japan.”
http://asia.nikkei.com/Japan-Update/Weak-yen-a-boon-for-big-manufacturer...
"Toyota Motor's consolidated net profit is expected to rise 10% to an all-time high of 2 trillion yen in the year through March. Toyota made the projection on the premise that the dollar would average 104 yen. The greenback is now more than 10 yen stronger than that level. If the exchange rate stays at the current level, the company's pretax profit will exceed the earlier estimate by 400 billion to 500 billion yen."
you take quotes from politicians justifying their misguided actions to be good news stories?
.
"point us to the story that says a collapsing yen is good for japan"
Alas, alas, alas, questioning the rules of the game not before taking part into the game but only when you start turning a loser, has a right name: it is called being a sore loser.
So you are beat. Go back to the corner, keep your gloves on, and come back when you have better ammo.
are you unable to differentiate between quotes from politicians and genuine good news stories?
Are you familiar with the term "moving the goalposts"
so you take political spin as good news. all has become clear
It's just recently that they started to tell that it's bad, but before it was like a revolution you know all that stuff with that J curve.
Somebody wasn't happy with the Turkey pipeline news.
The neocons are going to get a lot of us killed before this is over.
neocons don't care if you die.
neither do communists - in fact they encourage you to die
Word up dog.....neocons only talk about it......communists have a track record of actually doing it.
Millions.....with an M!
Russia should sell its gold to defend the Ruble.
Nah, it should dump its dollar holdings - for gold, yuan
<-- Russia should sell its USD to defend the Ruble
<-- Russia should sell its gold to defend the Ruble
Russia should pontificate about gold forming part of its currency backing.
Nah she should dump her 400 billions USD then buy Fort Knox and Comex vault, taking delivery and making America default...
"We back the Ruble with Gold now. You may redeem your notes at a % of gold coins I just had made."
-Vlad
Yes, and then what is Russia going to do for money next month?
There was a reason why Nixon stopped the raid on Fort Knox, you know.
Currency wars lead to economic wars to military wars. The Nobel Prize Winner bringing joy and sunshine to this world with his $5 billion destabilizing of Ukraine.
In breaking news, in order for the government to manage the next debt ceiliing debate -- President Obama just turned his Nobel Peace Prize into a $1 Trillion dollar coin.
At $5 billion a country -- well, you get the picture.
I recently went to Russia and the RUB was 30ish then, quite a fall. All I can say is that Russians are pretty damn well prepared for almost all sorts of harsh conditions, much better than your average Joe with his over entitled mindset.
I know the American press wants to spin this RUB crash as a total apocalypse, but you know what, never underestimate the power of closely knit Eastern European families and social circles in difficult times. Its what gets people through. That shit does not get measured in them GDP figures and financial wizardry.
and hyper-inflation?
There is no hyper-inflation there .
The ruble is basicly mirroring oil prices. Which kinda makes sense if they are not adjusting their oil prices and don't care about the USD. It is a true petro-Ruble. That means the issue is really that the USD is too strong. Is the American gov crapping on the Ruble causing oil prices to decline or is the oil price drop causing the Ruble to decline.
Honestly, lets ignore the USD to ruble price - there is little or no trade between the two countries. Instead lets show the ruble in relation to Russia's main trading partners - the EU, China, and Turkey -- and the 'collapse' of the ruble is much less. Instead we see that much of the move is USD strength against all 4 of those other currencies -- and is that premise a sound one as US debt tops $18 Trillion??
It's all 'paper' manipulation - that will eventually collapse - so why would Russia even want to intervene and set themselves up on the other side of a bad trade with speculators? Intervention rarely works, oil prices will surely rise by next spring, and Putin has said this is just speculators!
Which means US loses export business to Russia, Russian exports to US generating more Ruble.... and trade with others increases...
So you want to grade on a curve.
The truth is you cannot separate the dollar from any of the world currencies - you may not like that, but it is fact.
actually you can - simply default on your obligations nominated in USD or other foreign currencies
I am talking about the real world not the world of wishes.
A default would make the current Ruble dip look like a North Dakota hill.
so what ? Putin can do it
you dont need USD to feed your population if you have farmland, energy and machinery
It is not that simple, if it was, Putin would tell the rest of the world to F' off and go about the business of Russian rule.
No matter the country or the ruler, the people must be kept happy or live in exile like the old USSR with bread lines and rationing. Yes, 'Putin can do it', the consequences are not pretty, Putin knows this but does not like it.
If he is really smart he will bide his time, opportunity will present itself again. If he is really stupid he will be responsible for the fall of mother Russia to the dark days of the USSR.
aren't you paying attention?
that's exactly what he is doing. He is really smart and, with respect, doesn't need you to tell him
Oil Down= Ruble Down
there is no way around that.
The only thing they should do to combat local inflation is slightly increase taxes while leaving it's monetary base alone to tighten local supply of monetary base which is better long term. Or just do sell treasurys and buy excess ruble out of circulation..
Just float the Rouble, let the market dictate the value. At least you will free up monetary policy to suit the needs of the domestic economy rather than using it to shore up the exchange rate constantly. It would be the wiser thing to do in the long run I think. Plus no need to maintain so many USD reserves to sustain the fixed exchange regime.
What about a gold backed oil Rouble? That should restore some faith and value in the Rouble. If you buy oil and gas from Vlad, pay in Roubles, which are redeemed in gold. Russia is not a reserve currency country so it could possibly work. Just a crazy idea thats all.
"... let the market dictate the value."
LOL. Good one. What is this "Market" you speak of? The Free Market, unmanipulated by "GS & Friends"?
As for backing the Ruble with Gold + Oil + Gas, is not so crazy though. "Crazy like a fox", maybe.
I forget who said it, but I recall some ZH blogger(s) saying that backing the Ruble with a combination of PM plus Energy prevents Global Banksters from playing USDRUB FX games. Seems to make sense. In which case, I'd argue that the BRITICS (BRIICS+Turkey) should pull the same stunt of backing their currencies with a "Basket of Assets".
no intervention will happen simply because russia only has 50 bln USD to defend the rubble
inflation is actually good for russia - it will allow to develop other sectors of their economy and replace imports (luckily russia has its own raw materials so no problem there)
I am curious how much USD Russia has. Cause their forex is $430B roughly and it is in a mixture of currencies (cad, usd, euro etc). They have apparently a lot of euros as well.
But I agree withe the part about the industries. Already Russia is giving state subsidies to Rostec to help the tooling industry (probably weakest Russian manufacturing Industry atm).
subtract from 430B the 6 months of imports and welfare obligations (you need that time to kick start your own economy) and you are only left with some 50B
Umm, fort exactly budget. Forex is still standing at around $430B. They havnt spent much more since ruble free floated. Rest of debt payment has been done through budget and other reserves.
The Ruble is now standing at 50rub/usd. The aspect of it having free float is that now, they get to keep a balanced budget as they wont lose too much from oil price reduction. Problem #1 is prices on goods are now higher (around 9%). Major contribution to higher inflation in Russia, is logistics. One thing Russia was bad at in civil terms was its logistics. At this point, if the government wants to make a dent at inflation, they will need to build more road networks, more trainlines, and more supply chains. Some regions grow everything and some dont grow anything, but it is costing a lot to move the product from one place to another.
That, or lift the agriculture sanctions, or try to fux the supply chain for food from countries they are importing from now.
This sanction thing in the end will not amount to anything more. Russia may either have to face a greatly depreciated and fight inflation by other methods (import substitution mixed in with imports from elsewhere, subsidies, increase wages, tax exemptions, etc). Something people will have to live with.
Ruble, Ruble, Toil and Truble.
Ruble, ruble, tekel, upharsin.
But Russia is in better shape than Europe...
http://www.globaldeflationnews.com/u-s-led-sanctions-against-putins-hand...
They killled the Czar- and his minsters!
Then they overthrew our government with Khazars and their Lackeys!
After the USSR collapsed, they said no buffer countries would join Zato!
Now these fools wish to take the Soul from Russia!"
Nyet, Medvedev. I will not allow it.
Our arms technology can now make mincemeat out of their planes and tanks.
Our anti-missile defense can obliterate their weapons!
But I wish to end this war with Gold.
Once the Western System is shown Naked we will begin to call the shots!"
yadda blah blah blah same old red rusky propaganda
and Putin Rides naked on a red Bear off in the sun set !
yes yes... and can you blame jews or georgians for the problems of the world ... More of that typical RED BULLSHIT
I was thinking about that 35% drop in the value of the rubble the other day. What does this mean for ordinary Russians? It means that 1/3 of their life savings has been exterminated at the same time as prices shoot up in nominal rubble terms and they find themselves increasingly roped off from using foreign currencies to avoid the trap.
But, never fear, Grofaz will save all the good little Okhrana boys and girls who sing choruses of praise to Grandmaster Putin.
"1/3 of their savings are gone " How come ? Explain in detail .
Major Domestic Benefits with Plunging Ruble .http://dlvr.it/7jN8RP
"1/3 of their savings are gone " How come ? Explain in detail .
Major Domestic Benefits with Plunging Ruble .http://dlvr.it/7jN8RP
I still believe that the ruble is worth more the the usd. They don't have a 18T debt.
most of the world is in debt in USD and will work hard to repay that debt because US military will ensure the debt is going to be repaid
that is where USD strength comes from
ruble is only backed by oil and gas which is falling in price right now
US Military ? I hardly think so. Noone has really tried killing US military recently, not since the VietCong shredded them. I would not count on the US military machine surviving contact with what is coming up ahead.
"not since the VietCong shredded them"
The Vietcong didn't do shit, US politicians hamstrung their military and shredded itself and killed it's own soldiers in the process - just like Afghanistan and Iraq.
Never let a politician anywhere near a battle field unless they are going to gear up and pickup.
Would you explain to me how exactly the US military will "ensure" that the Russian debts are repayed, please ? I have troubles visualising that exact process...
So invest in vodka?
Did ZH get taken over by the kgb? It's Vlad this, Rooskie that, 24 hrs a day. Zzzzzzzzzz. Let's focus on Castro for a change of pace.
Time to learn more about ZH and who is controling it.
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
You are wet behind the ears
Viedo,
please give us a break...you're everywhere...we get your point, you're a neocon. Ok, fair enough, now go outside and enjoy your time.
I wear shiny side out foil, so I am impervious to mismo beams of any frequency.
Ah, viedoklis_Latvian S.S.R., copying and pasting his little heart out, desperately trying to earn a potato.
Forgot to compare Putin to Hitler, though, so no bonus lump of coal for you today.
and those who manipulate their people take their rights away and work for elite benefits
Could it be such a thing might happen in the US? <cue The Life of Brian's stoning scene "Are there women here today?">
russia is 24 hrs a day in the news because by taking crimea it has declared independence from US order and it is unprecedented
another RED SHILL ... more love for Putin's hairy ass !
when did your ass get smooth?
All that hair has been rubbed off by his admirers kissing it.
And other things.
http://finance.yahoo.com/news/rouble-collapsing-worst-possible-time-1707...
Let it burn!
/Popcorn
Russia is not alone when it comes to debt on this planet.
That's a big YAWN.
All creditors depend on their good standing in the credit community, in this case, the world economy.
If the world does not have faith in your economy and more importantly thinks you may be paranoid and out of touch with their belief system, your credit is shit and so is your currency, in this case the Ruble.
Still short on Putin's moves.
Depends on who determins. Neither IMF or World Bank is the "world". They are both American.