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Ukraine's Reserves Plunge 20% In One Month, Drop Below $10 Billion To Lowest In A Decade
Things for Ukraine are going from bad to worse.
Following the revelation that Ukraine's sovereign gold has mysteriously been Corzined, following a stunning admission by central bank governor Valeriya Gontareva on primetime TV that "in the vaults of the central bank there is almost no gold left. There is a small amount of gold bullion left, but it's just 1% of reserves" which however left many questions unanswered and which led to prompt legal action against the central bank governor who is being charged with criminal abuse of power and misuse of office under Article 364 of the Criminal Code of Ukraine, one would think that at least Ukraine's dollar reserves would have increased by a modestly proportional, if not market equivalent, amount.
Alas that is not the case.
As the central bank reported overnight, the country's foreign-currency (and gold reserves) dropped by over 21% in one month, to under $10 billion in November for the first time in nearly a decade due to large payments for debt and gas, from $12.6 billion to $9.966 billion.
The reason for the drop per the CB:
- A reduction of $1.45 billion due to the need to remit a portion of funds that Naftogaz of Ukraine has set aside in a restricted account with the National Bank of Ukraine in order to settle gas bills and arrears with Gazprom OJSC for natural gas imported in November-December 2013 (it remains to be seen if Gazprom confirm receipt or if the funds were merely wired... somewhere).
- A reduction of $897 million due to repayment and service Ukraine's foreign currency debt obligations, including the installment due to the IMF.
- Lastly, a reduction of $573 million as a resyult of intervention in the foreign exchange market.
As the WSJ comments, the bank’s announcement makes clear that the country is running out of the cash it needs to prop up the currency and pay back its debts, suggesting it needs more assistance from the West to avoid a default.
Ukraine’s coffers have emptied this year as its economy has shrunk and its national currency, the hryvnia, has lost around half its value against the U.S. dollar.
Ukrainian officials and analysts say Ukraine urgently needs a boost to its $17-billion lending program from the International Monetary Fund to prop up its finances. That comes amid a fresh push to stop the armed conflict with Russia-backed rebels after previous efforts have floundered.
And yet, as a result of recently souring relations between Ukraine and Europe, notably Germany, it is becoming increasingly unlikely that Europe which has major economic problems of its own, will be supporting the country which as we saw earlier this week, is well on its way to becoming the latest (vassal) state of the US, now that a US Citizen, Natalie Jaresko, has been appointed the country's Finance Minister (which as we reported yesterday led to fights in the Ukraine parliament as the locals finally realize they got the short end of the stick in their negotiations with the US). Meaning it would be up to the US to continue providing the funding to keep the Ukraine US-puppet government going, in exchange for which the only quid-pro-quo remains a western backed army preventing aRussian onslaught in the Ukraine and, of course, providing Joe Biden's son with a director seat on one of the biggest local energy companies. Surely, for national security reasons.
Meanwhile, as the civil war ravaged nation is about to enter the depths of winter, with its reserves evaporating at a torrid pace the next thing Ukraine's tortured population has to look forward to is hyperinflation as its currency begins losing even more of what little value it has left: first slowly, and then all of a sudden.
Now if only Ukraine had some gold left to sell when the rainy days hit...
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The Nobel Prize Winner ruins every country he touches - Libya, Syria, Iraq, Ukraine, Afghanistan, Pakistan, Yemen. The list is endless - don't forget the land of the free.
If the Nobel Prize Winner can spend $5 billion destabilizing Ukraine, surely Nuland can bake up a new batch of cookies to hand out at the Maidan in Kiev in their time of need.
My thoughts EXACTLY. Everything the US touches gets pillaged. There is a global financial war going on and the Ukrainian gold being "transferred" for safe keeping is a bold faced lie.
Ukraine should've joined the Bank of international settlements...
unfortunately, now the BIS will send in its attack pieces to take its natural resources..
its the same as it every was...
Ukraine is running out of coal for electricity soon.
And uranium for its nuclear plants, which could only be bought from Russia in the compatible form for Soviet legacy reactors. Westinghouse was tried as an alternative, failed due to incompatibility.
What Ukraine has as sources of energy:
- Russian gas: NOPE
- Russian uranium: NOPE
- Ukrainian coal: NOPE, it's in the East of the country which got de-facto separated
- Gold: NOPE
In summary: FUBAR. As sad it is, but there's hardly any chance for Ukraine to survive as a whole and independent country: it is bankrupt by itself and hardly feasible in its entirety for outsiders East and West alike. It is being and will continue to be torn apart by various interests. Ukrainians, God bless them, will have to go through hell and back.
They are still swimming in hot chicks though. They can export them for a while.
I'll confirm this ;)
They will go to hell, but mark my words. THEY AIN'T COMING BACK!
Seriously.
Now that SouthStream is off and BlueStreamII to Turkey is on...Ukraine is going down.
If Ukraine had negotiated with Russia they could have gotten a long-term natgas transport deal...no more.
Italy will get their new natgas from BlueStreamII Turkey/Greece and a small underwater pipeline to Brindisi or Lecce Italy.
Less taxes and tarriffs just going through Turkey and Greece vs. 4 or 5 Balkan countries.
Italy was a backer of SouthStream and also backed original BlueStream.
If you own Ukraine farmland there then hopefully it is on the Eastern side or near Crimea since the only viable economy there is produce food and livestock for Russia and no others (except perhaps defense industry...for Russia).
Otherwise I'd sell it all and go to Europe or Cyprus.
Things will only devolve there now to the bottomless pit, until they start selling things again to Russia, but then they will need resources to make hay, again.
Next, most of the Balkan countries are almost in same situation.
TurkeyII could be the new regional empire and may be siding with Russia.
There are no simple or quick solutions.
Fiat is failing.
And they will, though it never buys any country any form of sustainable future to export its females.
.. to filthy rich pervs and despots in the ME, Africa and the EU.
Hey, don't leave out the US moar hot chicks needed.
Ukraine is getting coal from Australia . Thanks Tony Abott ..
Australia : Another USA in making down under
My visiting mother-in-law (and a happy visit that is :/ ) spoke to a few members of their famlily in western Ukraine and they are just about ready to give up and ask Poland to take them back... LOL
Better (distress) Vodka in Poland.
As long as Poland doesnt take the parts that belong to Hungary, Slovakia, and Romania.
.
Poland has been planning a grab of Ukrainian territory all along. Radoslaw Sikorski's outrageous fantasy of Russia offering part of Ukraine to Poland may have seemed like just another in a series of inept, ham-handed anti_russian propaganda. It appears, though, that the story was concocted as a trial balloon to determine the reaction to the idea of partitioning Ukraine.
http://www.strategic-culture.org/news/2014/12/01/prospects-ukraine-parti...
The Russians dont want Ukraine to be split up, they want their brothers back. Just look at how hard they are fighting for Moldova which is not even majority Russian speaking.
They fight for Moldova because it has some of the best wines in the world and the largest wine cellars on Earth, build into Limestone Caves.
http://en.wikipedia.org/wiki/Mile%C8%99tii_Mici_%28winery%29
Coming Soon to a Simon Black Newsletter Near You...
Ukraine: the newest cash for citizenship program. Caution: Sovereign nation currently known locally as "Ukraine" may expire before your passport can be issued.
Hell, I'd be so glad to get out of the U.S. that I'd take Ukrainian citizenship - as long as I can take my gold and silver with me.
LOL. If anything, it'll be "Gold for Citizenship" in the case of Ukraine.
1 kg bar (32 oz) minimum. 30,000 people could thus bring 30 tons back IN.
Which will promptly be sent to the US Fed for safekeeping, courtesy of its new FM, Natalie Jaresko -- an "ex-US Citizen" with a US passport.
Going to buy some Ukie bonds Draghi??? Then we'll drop Austerity on 'em.
After we whooped those dirty (Wall Street-financed) Nazis in World War II making the world safe for democracy and junk like that, those dirty (Wall Street-financed) Communists took over Eastern Europe. Now I guess it's (Wall Street-financed) 'Murica's turn to take over the same area. And we all voted for that, right? Right?!
http://www.zerohedge.com/news/2014-08-29/putin-says-everything-us-touche...
The Inverse Midas Touch: everything he touches turns to shite.
Dutch Midas
Ah, you mean the "O Fudge Touch"
"We fudged some folks. Again."
Actually, it's different this time.
If, for example, a representative from the Russian embassy went to Maidan with cookies, he would be arrested or even shot immediately. It's a free country now.
How in the fuck am I to worry about the ukraine, when I don't know what the hell is going on here?
The odds the truth is told here. what 50%? and in the ukers 20%?
It;s putin's problem, and the great obola is ours. Now, aint' that special?
Fuck'em...
their purgatory is well deserved.
And these assholes will never say where the gold went (surely to the Fed, probably so they could return it to the Dutch). Funny how central banks piss on the barbarous relic but lap it up like fucking dogs whenever its free for the taking.
https://www.youtube.com/watch?v=ZPtjyqgZAUk
http://www.reuters.com/article/2014/12/05/italy-downgrade-sp-idUSR1N0RP0...
This while yield on Italy's sovereign debt is less than 2%? Who is buying junk bonds that yield less than 2%?
Wow.
If Italy breaks off from EU then they could be the regional power, Vatican backed, and take Spain and Portugal under their wing ? They could avoid the coming problem.
We fucked some folks.
Yankovych Ex-Ukraine president must be laughing his ass off now sitting in crimean Beaches .
Ukraine will remain an economic disaster for ever complements of the TRIBE
In the 1930s, the mass “collectivization of agriculture” in Ukraine led to the death by starvation of about 6 million people. —Aleksandr Solzhenitsyn, The Jews in the Soviet Union
An article in The Jewish Tribune citing Jewry, Bolshevism and anti-Semitism:
"A teacher complained: 'The children yell that I am teaching in a Jew school, because Orthodox [Christian] religious education is no longer permitted and because the priest has been driven out. In the People's Commissariat for Education only Jews are sitting there.'" -- Johannes Rogalla von Bieberstein, Jewish Bolshevism--Myth and Reality, Dresden, 2002, p. 231
Why is it always 6 million? Is creativity a lost art?
It's from the talmud. Six million in burnt offering must perish before they get Israel back.
http://www.bbc.com/news/world-europe-30351196
France and the US have agreed a compensation package for Holocaust victims deported by a French rail company during World War Two.
The two sides announced a $60m (£40m) compensation fund, paid for by the French government, on Friday.
Reparations will be paid to those transported by state rail company SNCF to Nazi concentration camps.
US lawmakers have previously attempted to bar SNCF from rail contracts because of its actions in WW2.
The rail company moved 76,000 Jews to Nazi camps during the Holocaust. Only about 3,000 survived.
However, the company, and some historians, have argued that SNCF was forced by the occupying German army to assist in the deportations.
In 2010, the SNCF chief executive expressed "profound sorrow and regret" for the consequences of the company's actions
No doubt that they can verify all those numbers because they have BLS accountants on their staff...
10 newspapers dating 1915-1938 promoting the story of 6 million Jews in danger.
https://www.youtube.com/watch?v=Dda-0Q_XUhk
they should just go buy some AAPL and then tweet about the luncheons with the CEO.
It’s just a band of criminals. They took the government with a criminal act. They’ve been illegitimate from the beginning. Criminals take the government and then they have an election amongst themselves. And then they have a head criminal. It’s hardly the same thing as having a legitimate government, is it?
"Welcome to the 'Poverty for You, Wealth for Them' Zionist reality show, where the 'winner' get the shaft, the mineshaft that is, and the 'loser' gets to 'return,' flee. We have a great slate of guest 'citizens,' I mean hosts, this season."
"Are you ready to play? Good, just drop your humanity and dignity over there and put this yoke on."
An American, not US subject.
How does one say, spell, "guillotine" in Ukrainian?
giljotina )
pronounced GillYoTina
This probably won't work with ZH's server. Tried tho.
When the population withdraws support, the govt collapses, somewhere down the line we're next.
"When the population withdraws support, the govt collapses, somewhere down the line we're next."
Fantastic!
When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.--Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world...
An American, not US subject.
Some like Whitman, Keats, Poe, Frost, Shakespeare. I like Jefferson.
Jefferson was the man! Also who was the man that took out Hamilton in a dual, was it Bur? He was also great.
You are referring to the colorful and controversial Vice President of the US, Aaron Burr, who famously killed the former secretary of the treasury, Alexander Hamilton in a shooting duel in 1804
You like your poverty, you can keep your poverty.
Negative negative negative that's all this site is about. The past year or two I started looking at everything that was said on here in a different way. But since the eBOLA freak outs on this site, I mean you had supposedly microbiologist completely freaking out like a 12-year-old little girl Who has some deep emotional wounds and so many others declaring this is the end. That finally woke me up. You know gradually each year over the past few my business has been making more and more money. To where profits over six figures was very easy. Yet from habit because of fear I kept going to this site reading article after article and believing what I read I read almost all the comments. But you know what what was said on here including the comments it ,just wasn't making any sense after a while. You know we might be vulnerable for another collapse. But you know what it's not going to be anything like what was reported here on zero hedge and the same for commentaries. You know I usually post on here when I've had four or five drinks. But you know what I can't take it anymore , today I'm doing it sober. I wish I knew how to completely delete my connection to this site. But I have tried a number of times the past few months and can't find any link or advice on how to get the fuck away from you people. No matter what happens that is good around the world this site turns it into apocalyptic nightmares. I started reading this site in 2009 or so enjoying shortly after. It really did seem to give me a very good understanding of what took place in 2007 and 08. But gradually every negative thing that this site has said would happen has not happened. And I've joined this site in their apocalyptic of you telling my kids they have to prepare telling my family they have to prepare. But now without a doubt I see that if you consume your daily life with negative news negative influence you're just going to be negative. So fuck all of you a bola apocalyptic deadbeats. And I'll even go as far as saying you know why you apocalyptic economic deadbeats can also go to hell I quit all of you time to break the habit
Thanks for sharing.
Friday Humor?
TEOTWAWKI fatigue?
Not gonna lie, this place has rewired my brain.
"I wish I knew how to completely delete my connection to this site. But I have tried a number of times the past few months and can't find any link or advice on how to get the fuck away from you people"
Might I suggest a nail gun, perhaps some rope, they can help sever your connection.
Don't like it here?
Then Fuck Off! you snivilling little whiner!
It isn't negative. It is just the truth. The economy is collapsing. The Fed is printing money and trying to prop it up. The Fed is making the situation worse. The global USD standard is being abandoned. We are starting wars all over the globe to try and keep our financial power in place.
For being "sober", he writes like a drunk.
With love,
Recovering Alcoholic
HA. See you Monday.
Funny . . . cruel but funny.
that was some hilarious shit...
'COCAINE IS A HELL OF A DRUG..."
RICK JAMES
You have a good point Real. We are obsessed and possessed with the negative on ZH. And it does have an ill effect on all our comments and attitudes.
The problem we all have is how we sensibly evaluate economic conditions in a world when all of the benchmarks used in prior markets have been invalidated by the wolves eating us alive in the rigged markets, corrupt governments, out of control central banks, crony capitalism, and socialist press agendas. We are truly in a brave new world where each of us struggles just to survive…
"No matter what happens that is good around the world this site turns it into apocalyptic nightmares."
More like: "No matter what apocalyptic nightmares are foisted on us 'folks,' it's good to have sites like ZH that expose this (mainly economic) waterboarding."
Guy has a point but I dont know what to make of it.
I watched in hooror as Lehman collapsed and saw all the bs that came out of it. I started paying attention. There could have been a constructive solution (jail time) but it just gets worse every day across the spectrum. ZH just lists bad news but where's the good news? Certainly not in Occupied US or its' colonies.
I see Russia and China making good, smart moves and behaving constructively. In the US it's goona be a toss up between Hillary and Bush/Romney. What kind of choice is that.
The fuse was lit a long time ago and its gonna blow. When? I wish I knew.
Eh ?
Perfect example of turkey (the bird, not the country) logic. Everything is fine... and then Thanksgiving hits ! By the way, don't let the door... you know.
"just wasn't making any sense after a while"
you have been disfunctional for most of your life and now by drinking heavily you are figuring out you are an idiot - so now nothing makes sense
do yourself a favor - go to your bedroom - walk in the closet - shut the door - and blow your brains out - in the interest of advancing HUMANITY
WE ALL WILL BE INDEBTED TO YOU!
So doing the bidding of Western Financial interests doesn't make you rich?
BTFATH
I'm reliably informed by the Latvian potato troll that this drop in Ukraine's reserves is the fault of Putin's Russia. That's right folks, he has invaded the Ukraine no less than 13 times and is now occupying it.
Troll magnet initiated .
Why everything is fine and dandy with this world, excuse me while I clean up the "mess" - my spotted, purple unicorn shits American Gold Eagles...
<---Gold is better for the new born baby
<---Fiat is better for the new born baby
Difference between GOLD standard and FIAT money from the perspective of a new born baby.
Gold standard: a system where you don't have money/gold yet, but when you grow up you can earn, and save some, and do whatever you like with it.
Fiat standard: you were just born, you owe 60,000$ to everyone who was born before you, every dollar you earn will lose value before you even get it into your hands , and you will have to borrow money just to make your inherited a debt survivable disease.
What system is better?
So-far the conensus is if you like FIAT over gold, you hate babies. ^^
I predict EU will finally scream for Russia to pull their chestnuts out of the fire, but it will only happen after dead bodies are stacked up around Kiev like cordwood and everybody else is rioting in the snow because that's the only way they can keep warm and the UN has announced the entire nation is a humanitarian disaster and EU realizes not only will Ukraine default but they will have to fork over MORE cash just to rent helicopters to evacuate their minions one step ahead of the lynch mobs.
Then Putin will politely ask, "Were you talking to me? Sorry, we Russians were isolated from the West so we have been keeping busy with our Eastern business partners. I missed what you said, what was that again? Help? Oh, we'd love to help, but we cannot under the sanctions currently in place. So sorry."
THEN we will see some real negotiations.
The Euros dont care, the more Ukes that freeze in their apts the more Lebensraum and uncontested land the Euros can buy up. Its a major push for depopulating Ukraine. Old people freeze and no need to pay them pensions come spring.
In the other news, Putin offers full amnesty for repatriated to Russia capital. (Google translation)
Abramovich and the likes will now return to Russia?
They wont, their money is already sloshing around private Euro and Israeli banks.
Ukraine you're done:
http://www.xe.com/fr/currencycharts/?from=USD&to=UAH&view=1W
http://www.xe.com/fr/currencycharts/?from=USD&to=UAH&view=2Y
Memo to the USA and the EU
it is time to recall the Pottery Barn rule
You break it, you buy it
Ukraine - Psy-op of a psy-op
http://newworldorderg20.wordpress.com/2014/12/05/ukraine-gets-more-gas-from-russia-than-it-sends-on-to-e-u/
http://newworldorderg20.wordpress.com/2014/12/04/do-you-know-why-governemts-lie-about-nato-and-russian-jet-incursions/
http://newworldorderg20.wordpress.com/2014/12/04/russias-imperious-group-invests-in-ukranian-startup/
and more......http://newworldorderg20.wordpress.com
You know, the little fucker has a point. I've been coming here since 2010 and basically am looking for someone to validate my thinking of how fucked up everything is. And I sure as hell expected a SHTF moment by now....but it never comes. I don't have jack shit to show for the past 6 years of Fed Pumping since all of my assets are in land, cash, stored grain and equipment. I am one dumb fuck. If I had thrown it all in the stock market in 2010 I'd be better off. INstead I've sat here preserving wealth...what cash I have isn't making jack squat....and all of my stock investing friends are laughing their asses off. Seriously folks. I've tried to adhere to having no debt...I own everything I have and don't have a single debt....yet I feel totally violated....like Lord Blankfein bent me over and butt fucked me dry....and I keep wiating for those fucktards to get their just reward....but it never happens I'm fucking depressed....I think the guy has a sound idea of not checking in here....and coming to a sad realization of what a loser you become by living within your means and being a saver. The only way to grow the money gleaned from labor is by throwing your lot in the big rigged casino. Glad I didn't go all in and buy any silver or gold....or the 9mm would be going in the piehole.
That's why Russia is helping them.......East helps the West
http://newworldorderg20.wordpress.com/2014/12/04/russias-imperious-group-invests-in-ukranian-startup/
http://newworldorderg20.wordpress.com/2014/12/05/ukraine-gets-more-gas-from-russia-than-it-sends-on-to-e-u/
http://newworldorderg20.wordpress.com/2014/12/05/ukrainian-supplies-helicopter-to-russia-on-schedule-of-course/
http://newworldorderg20.wordpress.com/2014/11/22/russia-ready-to-supply-electric-power-to-ukraine/
Ukraine will soon crash and burn-they owe Russia billions. They owe the bankers Billions. BOTH will soon call in their deb.......AND IT'S GONE! (Ukraine that is) They are rationing electricity now and have about a weeks worth of coal left. NO HEAT THIS WINTER_thank Porky and the US for that-they are one step from DEFAULT
Will there be a mass Exodus, or will Poland/Russia balkanize the land and people ?
Poland and Belarus may duke it out for dibs ?