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Russia Warns May Send Troops To Ukraine After Congress Unanimously Votes To Give Lethal Aid To Kiev

Tyler Durden's picture




 

While the market, and America's media, was focusing over the passage of the Cromnibus, and whether Wall Street would dump a few hundred trillion in derivatives on the laps of US taxpayers once again (it did), quietly and unanimously both houses passed The Ukraine Freedom Support Act of 2014, which authorizes "providing lethal assistance to Ukraine’s military" as well as sweeping sanctions on Russia’s energy sector.

The measure mandates sanctions against Rosoboronexport, the state agency that promotes Russia’s defense exports and arms trade. It also would require sanctions on OAO Gazprom (GAZP), the world’s largest extractor of natural gas, if the state-controlled company withholds supplies to other European nations (yes, the US is now in the pre-emptive punishment business, and is enforcing sanctions on a "what if" basis).

But while one may debate if additional sanctions will do much to impact a Russian economy which is already impaired due to the plunging ruble, the clear escalation is that unlike previously, when the US limited itself - at least on paper - to non-lethal assistance to the Ukraine, now the US is finally preparing to send in weapons, and potentially "military advisors" as well. We say "on paper", because in late November hacked US documents revealed the extent of secret US "Lethal Aid" for the Ukraine army. And since America's under-the-table support for Ukraine's insolvent armed forces has been revealed, there is little point in pretending to keep a moral upper hand (especially in light of recent "other" revelations involving the US, most notably its intelligence services).

And as has happened for the entire duration of the second Cold War, any action by the US was promptly met with a just as provocative reaction by Russia. In this case, a leftist member of the Russian Duma said the US Senate’s decision to arm the Kiev regime should prompt ‘adequate measures’ from Russia, such as deploying military force on Ukrainian territory before the threat becomes too high.

In other words, in addition to the global energy meltdown which is about to send oil exporting nations into a state of shock matched only by owners of US High Yield energy bonds, the Ukraine conflict, which the algos and carbon-based Portfolio Manager forgot about, is about to re-escalate, with Russia now set to recreate the Crimea annexation after it officially sends its troops on Ukraine soil.

From RT:

“The decision of the US Senate is extremely dangerous. If it is supported by the House of Representatives and signed by their president, Russia must reply with adequate measures,” Mikhail Yemelyanov of the Fair Russia party told reporters on Friday.

 

It is quite possible that we should return to the decision by our Upper House and give the Russian president an opportunity to use military force on Ukrainian territory preemptively. We should not wait until Ukraine is armed and becomes really dangerous,” the lawmaker stated.

 

Yemelyanov also noted that in his opinion the US Senate’s decision to arm Ukraine had revealed that Washington wasn’t interested in the de-escalation of the Ukrainian conflict. He then said that US actions gave him the impression they was seeking to turn Ukraine into some sort of an “international militant targeting the Russian Federation.”

 

“In a few years Ukraine will turn into a poor and hungry country with an anti-Russian government that will teach its population to hate Russia. They will be armed to the teeth and Ukraine and US reluctance to recognize the Russian Federation within its current borders would always provoke conflicts,” the MP said.

So does this mean that what was a lingering proxy cold civil war in east Ukraine between NATO-armed Ukraine troops and Russia-armed Separatists and local militias is about to escalate into a shooting precursor to something greater? There is still hope an all out escalation can be avoided. From Bloomberg:

White House press secretary Josh Earnest said today that the administration hadn’t finished reviewing the language and isn’t ready to take a position on the legislation. He said the administration wants to ensure that the U.S. and its European allies are working together, that any sanctions are effective and that they minimize harm to U.S. and European companies.

 

“This is delicate work,” Earnest said.

Did we say "there is hope"? Never mind.

The good news is that preparations for yet another world war are taking place, the US will "prove" it has the moral superiority by offsetting Russian propaganda.... with its own propaganda!

From the last line of the Ukraine Freedom Support Act:

"Directs the Chairman of the Broadcasting Board of Governors to submit to Congress a plan for increasing the quantity of Russian-language broadcasting into the countries of the former Soviet Union in order to counter Russian Federation propaganda. Requires such plan to prioritize broadcasting into Ukraine, Georgia, and Moldova by the Voice of America (VOA) and Radio Free Europe/Radio Liberty."

Which can only mean one thing: the US is about to flood the airwaves east of the Dnieper river with reruns of Rocky 4 all over again.

 

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Sun, 12/14/2014 - 11:05 | 5550129 Volkodav
Volkodav's picture

You know nothing about this subject..

Americans were kept ignorant.

.

Sat, 12/13/2014 - 21:30 | 5549304 sun tzu
sun tzu's picture

I'm sure the $500 billion in junk shale bonds won't default and crush Amerikan banks LOL. They all have $500 billion in capital sitting around, right?

Sat, 12/13/2014 - 21:32 | 5549314 silverer
silverer's picture

It's the economy that's about to be drilled...

Sat, 12/13/2014 - 21:47 | 5549330 Winston Churchill
Winston Churchill's picture

I'm begining to wonder if its Putin destabilizing the oil market, not the US.

Think about it.Sacrificing a rook to kill a queen.

Got to get a larger tin foil hat.

Sat, 12/13/2014 - 22:04 | 5549355 Suppressor
Suppressor's picture

A larger tin foil hat and a shitgun!

Sun, 12/14/2014 - 08:44 | 5549930 Refuse-Resist
Refuse-Resist's picture

just make sure to fire your shitgun when bad people come in your house. That'll send 'em runnin'.

 

 

 

Sat, 12/13/2014 - 23:04 | 5549436 Volkodav
Volkodav's picture

More think about it, more it look the shale is much more fragile than hurt Russia.

I talked to reliable oil guy, producer and services...he never plunged, very conservative.

Good head, and his knowledge:

If price do not rise quick, this time much worse than eighties bust...which arrived sudden

 

Sun, 12/14/2014 - 04:29 | 5549787 farmboy
farmboy's picture

speaking about "unintended consequences" regarding the manipulation of financial ( commodities) markets by the US :)

Sun, 12/14/2014 - 10:45 | 5550070 HowdyDoody
HowdyDoody's picture

Only ~28% of Russia's tax income comes from energy sources. A reduction in the price of oil by 50% results in a 14% loss, tricky but manageable. A country with say 80% of tax from oil (Canada?, Saudi etc) faces a 40% budget loss. That will hurt.

Sun, 12/14/2014 - 11:32 | 5550188 JohninMK
JohninMK's picture

You are missing the exchange rate difference. Oil priced and money received in dollars is the full hit. Oil priced in dollars and received in similar depreciated roubles, no hit.

If this was planned someone didn't think it through if they were US oriented, or were extremely clever if not.

 

Sun, 12/14/2014 - 16:59 | 5551064 Freddie
Freddie's picture

Saudis and the others in the middle east are going to get hit pretty hard.   They have a lot of debt and a lot of mouths to feed with that oil revenue.

Sat, 12/13/2014 - 21:31 | 5549310 silverer
silverer's picture

Compare US debt to GDP to Russia's debt to GDP. I think the Russians can sit down and drink vodka for ten years and still not come up with our numbers.

Sat, 12/13/2014 - 21:42 | 5549323 FieldingMellish
FieldingMellish's picture

Plan!

Sat, 12/13/2014 - 21:49 | 5549334 noben
noben's picture

I'd want to see how Russia's test goes with their SWIFT alternative system: "RIFT", as I like to call it.

Happens on Monday, 12/15. If it goes well, they will want to have it up and running before things get too "kinetic".

Cause an alternative to BIS+SWIFT will indeed ruin the day for TPTB in the West (the Fed, its Owners and its many Beneficiaries). Especially if Russia also drops the 2nd shoe to RIFT and back its currency with "Precious".

In which case the Hobbit movie "The Battle of the 5 Armies" on 12/17 might be some serious foreshadowing of things to come.

Sat, 12/13/2014 - 22:14 | 5549364 Theta_Burn
Theta_Burn's picture

The sudden provision of lethal aid is the response to "RIFT"

Gaddafi had the nerve to cause a rift with talk of gold backed Dinar and accepting Euros for his oil..

This pic was about 9 mths before the kinetic action was unleashed on Libya

http://www.bing.com/images/search?q=obama%20gaddafi%20picture&qs=n&form=QBIR&pq=obama%20gaddafi%20picture&sc=0-15&sp=-1&sk=#view=detail&id=7E19572DB6B314DEFABF88BAD577725141CCC491&selectedIndex=17

Sun, 12/14/2014 - 08:59 | 5549937 Winston Churchill
Winston Churchill's picture

Source ?

Sun, 12/14/2014 - 10:49 | 5550084 HowdyDoody
Sun, 12/14/2014 - 12:20 | 5550296 Winston Churchill
Winston Churchill's picture

Thanks, missed it, on jobsite this week.

Sat, 12/13/2014 - 20:43 | 5549207 TeamDepends
TeamDepends's picture

Putin be disputin' while conjuring Rasputin.

Sat, 12/13/2014 - 20:43 | 5549208 Peter Pan
Peter Pan's picture

The US is not sending lethal weaponry to Kiev to protect it. It is sending it to provoke Russia.

Sat, 12/13/2014 - 20:54 | 5549224 Antifaschistische
Antifaschistische's picture

But the US has such a wonderful track record of peace and prosperity when it comes to drop shipping millions of pounds of military equipment, bombs, guns and bullets in countries.

Having said that...the people in Eastern Ukraine are not happy with Putin either and are offended by his aggression.

So...as is often the case, the people that get hurt are just pawns in this big global game.

Sat, 12/13/2014 - 21:22 | 5549291 Aussiekiwi
Aussiekiwi's picture

Look you realize the weapons are still being manufactured, you can only stockpile them for so long, in the end you need a couple of good wars to reduce the stockpile, supply and demand at work, thank god for capitalism and the American way of life.

Sat, 12/13/2014 - 22:56 | 5549423 Volkodav
Volkodav's picture

They knock out Ukr apc and tank already with weapons their Grandfathers stored.

Sat, 12/13/2014 - 22:22 | 5549376 Nexus789
Nexus789's picture

What Russian aggression? The agreesion is all coming from the West and sponsored by the degenerates in Washington.

Sat, 12/13/2014 - 22:52 | 5549418 Volkodav
Volkodav's picture

Wrong. You know nothing about this subject.

What aggression?

People pray aloud Russia to save them.

Sun, 12/14/2014 - 02:42 | 5549704 Lore
Lore's picture

Be patient with newcomers who are still catching up.  Reality on the ground is completely blacked out by controlled western media.

Death and Destruction Continues in E. Ukraine 

Sat, 12/13/2014 - 21:25 | 5549296 SAT 800
SAT 800's picture

Did you figure that out all by yourself ?

Sat, 12/13/2014 - 23:13 | 5549454 Stumpy4516
Stumpy4516's picture

Peter,  Or the US has no fear that Putin will actually send in fighting troops.  Putin makes noise but does nothing, Putin even forced the EUk to stop when they could have wiped out trapped WUk troops and were set to put the WUk backwards.  Israel over flys Syria and bombs close to the capital but there is no response by Syria and not even a verbal response by Putin.  I would guess Putin has given orders that Israel and NATO plans are not to be shot down no matter what.

The US is already sending weapons but now that it is official it will increase and it opens the door for the next step of taking over WUk and installing missiles on the border. 

Once again the mantra is This time Putin is going to do something.  Now Putin will act.  --- But it is just another episode like the others.  Mass murders have already occured, an airliner was intentially shot down in an attempt to blame Putin/EUk and ramp up the fight.  Putin does not act.

Sun, 12/14/2014 - 00:21 | 5549582 COSMOS
COSMOS's picture

All these actions by the West Putin is using to show the rest of the world what monsters they really are.  The actions of NATO and EU and USA are starting to scare the shit out of all the BRICS.  Plus each action by the West allows him to gain greater solidarity at home.  When he acts.  Every Russian man woman and child will be totally behind the effort.  There will be no dissent.

Sat, 12/13/2014 - 23:30 | 5549483 Eyeroller
Eyeroller's picture

We lethally aided some folks.

Sun, 12/14/2014 - 00:15 | 5549573 petkovplamen
petkovplamen's picture

No shitsky, now tell me something else Mr. Obvious!

Sat, 12/13/2014 - 20:44 | 5549210 ParkAveFlasher
ParkAveFlasher's picture

"Throw in the damn towel, man!"

Sat, 12/13/2014 - 20:49 | 5549216 razorthin
razorthin's picture

Let me see if I understand this.  Amerika is willing to sacrifice its own ponziconomy to take down Russia, in order that it might instigate WW3?

Sat, 12/13/2014 - 20:49 | 5549220 Infinite QE
Infinite QE's picture

never underestimate the insanity of rabid zionists. they want Ukraine as a second-homeland as the world is figuring out they have no historical connection to israel.

Sat, 12/13/2014 - 20:54 | 5549228 razorthin
razorthin's picture

I don't know about deep ancestry, but the pale skin suggests they've been out of the region for at least 10,000 years.  Squatter's rights to the brown semites.

Sat, 12/13/2014 - 20:56 | 5549232 Infinite QE
Infinite QE's picture

They're khazars who hail from the bowels of the area now called ukraine.

Sat, 12/13/2014 - 22:37 | 5549396 spqrusa
spqrusa's picture

9500BC to be exact.

Sat, 12/13/2014 - 21:32 | 5549311 indygo55
indygo55's picture

"they want Ukraine as a second-homeland"

Bingo!

Sun, 12/14/2014 - 01:02 | 5549630 JAFAH
JAFAH's picture

Because the Jewish Autonomous Oblast is just too far away from the action.

Sun, 12/14/2014 - 02:53 | 5549712 Volkodav
Volkodav's picture

ongoing...

Kolomoyski is triple citizen, Hunter Biden on board of his Burmisa Holdings....

tribe head and private army ....ad infititum

Sat, 12/13/2014 - 21:01 | 5549250 Amerikan Patriot
Amerikan Patriot's picture

Let me see if I understand this. 

The Soviet Union broke up into 15 different sovereigns, Russia proper got itself a taste of prosperity, and now it wants to reconstitute the Soviet Union and give all that up?

Sat, 12/13/2014 - 21:25 | 5549295 Bay of Pigs
Bay of Pigs's picture

You don't seem to understand much at all.

Sat, 12/13/2014 - 21:50 | 5549335 Winston Churchill
Winston Churchill's picture

You give him too much credit.

Sat, 12/13/2014 - 21:36 | 5549318 skepsis101
skepsis101's picture

Keep on autofellating.  Someday you may actually fill your mouth.   God I'm sick of you and the rest of your team!

Sat, 12/13/2014 - 23:28 | 5549478 TheReplacement
TheReplacement's picture

You ever wonder how much he makes shilling?

Sun, 12/14/2014 - 00:20 | 5549578 Eahudimac
Eahudimac's picture

Nope, you clearly do not understand. Shouldn't you be getting anally rehydrated somewhere?

Sun, 12/14/2014 - 03:20 | 5549740 Titus
Titus's picture

+1 for RED MEAT

Sun, 12/14/2014 - 03:53 | 5549759 Otrader
Otrader's picture

The ZOG has America by the balls.  The ZOG will do what the ZOG wants to do.  Right now, they want Russia and the dumb taxpyers will pay for it with sweat, tears and blood.

Sat, 12/13/2014 - 20:49 | 5549217 Infinite QE
Infinite QE's picture

Time for Vlad to start kicking zionist ass.

 

Sat, 12/13/2014 - 20:59 | 5549239 Amerikan Patriot
Amerikan Patriot's picture

Uh, no.

It's time for the ruble and oil to fall even further into the toilet.

Sat, 12/13/2014 - 21:43 | 5549324 sun tzu
sun tzu's picture

That's terrible. Millions of Russian tourists won't be able to visit EU nations and spend their money. They won't be able to buy EU products either. 

Sun, 12/14/2014 - 18:40 | 5551324 flapdoodle
flapdoodle's picture

However, they will be able to buy Russian, Chinese, Indian, Iranian, Turkish, and Argentine products without any problem.

What exactly does the EU sell again that is so fantastic that there are no other substitutes? (Other than aged Gouda cheese - now that is pretty awesome, but none-the-less the Russians can cry over their vodka and Iranian caviar over the loss, I'm sure)

Sat, 12/13/2014 - 20:54 | 5549222 exartizo
exartizo's picture

Yo Adrienne.

We knocked out some Russian folks.

Sat, 12/13/2014 - 23:18 | 5549460 25or6to4
25or6to4's picture

Yo that's Dolph Lungren, a swede no less.

Sat, 12/13/2014 - 20:53 | 5549223 Argos
Argos's picture

Great, just great. Another step down the road to war.

Sat, 12/13/2014 - 21:30 | 5549305 silverer
silverer's picture

I agree. It's something we don't need. At all.

Sun, 12/14/2014 - 00:22 | 5549581 petkovplamen
petkovplamen's picture

Actually you couldnt be MORE wrong. With West's fake "Capitalism" imploding, the ONLY thing that saves it every time is a world war. Ecept this time it will be nuk'ear and we all shall end up glowing in the dark. Oh well, it's been a good life.... Maybe Australia will survive and they will have their real Mad Max.

Sat, 12/13/2014 - 20:55 | 5549225 no more banksters
no more banksters's picture

"It seems that BRICS increasingly gaining financial independence from the Western neoliberal bloc. This will bring further panic to the Western oligarchs as may fear that a fast growing Russian economy could become a new model for other countries even from the Western sphere of influence."

http://failedevolution.blogspot.gr/2014/12/putins-speech-interpretation-...

Sat, 12/13/2014 - 20:57 | 5549227 CL Spec
CL Spec's picture

Send in the elite carpet-munchers and butt-buddies to die by the sword they so love to "wield". Normal people just want to live in peace...

Sat, 12/13/2014 - 20:58 | 5549229 tarabel
tarabel's picture

 

 

Awwww, poor defenceless Grand Duchy of Evil. All week they've been telling everybody how strong they are, how many tanks and nukes they have, and how nobody except the Mongols, English/French, Japanese, Germans, and Americans have ever beaten them. But they did kick the shit out of Charles XII of Sweden and eventually wore down Marshal Mannerheim's sinister Finns.

Offer a few driblets of aid to the Ukrainians and now the story changes. Those damn Ukrainians are DANGEROUS and they could end up THREATENING the very existence of the Grand Duchy of Evil even while they teach their children to hate Grofaz II and all other Russians. Guess what? They already hate you and are glad to be out from under your thumb.

Okay, the pump is primed, release the Weekend Okhrana dudes...

Sat, 12/13/2014 - 21:19 | 5549285 scrappy
scrappy's picture

You are

tarabel

at your "job".

Member for
14 weeks 5 days
Sat, 12/13/2014 - 21:31 | 5549312 Theta_Burn
Theta_Burn's picture

Whats your dipshit excuse for Israel?

Sat, 12/13/2014 - 22:02 | 5549353 August
August's picture

Divide et impera, baby.

Sun, 12/14/2014 - 16:10 | 5550950 Max Steel
Max Steel's picture

 



Nope, you clearly do not understand. Shouldn't you be getting anally rehydrated somewhere?
Sun, 12/14/2014 - 17:29 | 5551127 nuke ISIS now
nuke ISIS now's picture

Laughable...If you "dare" say anything negative about Russia, you get downvoted

 

Fuck you... Russia dickheads here...how's that mother fuckers?

 

cocksuckers

Sat, 12/13/2014 - 20:55 | 5549230 VWAndy
VWAndy's picture

Ever get the feeling you are being played. By both sides?

Sat, 12/13/2014 - 21:20 | 5549290 scrappy
scrappy's picture

Yes.

More than 2 actually.

Sat, 12/13/2014 - 23:30 | 5549482 TheReplacement
TheReplacement's picture

Ding Ding

Sat, 12/13/2014 - 20:58 | 5549234 Amerikan Patriot
Amerikan Patriot's picture

Vlad says "I'm going to huff and I'm going to puff and I'm going to...fart real loud."

Okay, that's not entirely true.  He may also judo flip a few compliant, flacid men to the mat.

 

Sat, 12/13/2014 - 21:22 | 5549293 scrappy
scrappy's picture
Amerikan Patriot

17 weeks 5 days

Hmmmn, have a tarable,

Merry Christmas!

Sun, 12/14/2014 - 02:43 | 5549707 Volkodav
Volkodav's picture

jokey goat

Sat, 12/13/2014 - 20:56 | 5549236 himaroid
himaroid's picture

<<----Oil price goes up

<<----Sorry, no help Vlad

Sat, 12/13/2014 - 20:58 | 5549241 kowalli
kowalli's picture

Why it is worse for Russia if USA want to escalate? Russia will collapse - why not just wait? I think you got it wrong...

Sat, 12/13/2014 - 21:12 | 5549268 himaroid
himaroid's picture

I have been wrong often but never before when asking a simple question.

Gotta go, my crazy nephews are out there jumping over the bonfire. NOT ON MY WATCH!

Sat, 12/13/2014 - 21:13 | 5549274 kowalli
kowalli's picture

oh,sorry. np man, don't shoot.

Sun, 12/14/2014 - 16:13 | 5550961 Max Steel
Max Steel's picture

So does US . Wishful thinking but R.F. isn't going anywhere . Your sanctions or ruble devaluation isn't working . see the latest news bob .

Sat, 12/13/2014 - 22:09 | 5549361 Urban Redneck
Urban Redneck's picture

Now that they're putting Gazprom on the the table... IF Putin wanted to raise the price of oil (which is NOT necessarily the case, given the recent meeting with KSA and impending Chernobyl incident in US HY energy debt) Putin could simply sanction any foreign oil companies and JV partners operating in Russia - and prevent them from lifting any Russian oil or receiving any revenues until ALL sanctions in their corporate parent's country of domicile are lifted -- energy production is cut and 100% of the revenues flow to Russian firms, so it is revenue neutral with even a constant oil price and decreased exports (it's not like exiting the WTO and Energy Charter aren't already on the table... International Law is the voluntary association of Sovereigns - the USSA having turned it into a tool of hegemony in recent decades - the exit is in the cards anyway given the lack of success at "reform" at the IMF (which is a walk in the park compared to the effort that would be required to increase the minuscule shareholding of all the BRICS at the BIS). 

Sat, 12/13/2014 - 20:57 | 5549237 kowalli
kowalli's picture

Do you think that USA haven't any more time and desperate?

Sat, 12/13/2014 - 21:01 | 5549246 knukles
knukles's picture

So, the warmongers get back into office and the peacenicks vote alongside with them for moar woar.
Hah!
Just as I suspected!  Thay're all up to no good!\

 

Peace Prizes all around, boys!

Sun, 12/14/2014 - 07:17 | 5549866 negative rates
negative rates's picture

Peace pipes too pal.

Sat, 12/13/2014 - 21:00 | 5549247 Upset Your Worries
Upset Your Worries's picture

"I am tired and sick of war. Its glory is all moonshine. It is only those who have neither fired a shot nor heard the shrieks and groans of the wounded who cry aloud for blood, for vengeance, for desolation. War is hell."

Sherman

 

Sat, 12/13/2014 - 21:05 | 5549252 himaroid
himaroid's picture

Sure  w.tecumseh, like that diversionary quote is going to make us forget your war crimes.

Sat, 12/13/2014 - 21:18 | 5549284 disabledvet
disabledvet's picture

"But if its the hell of war they want I will make sure to give it to them."

That part of the quote got left out, I agree.

I'm not so sure the current war lovers are of that ilk...nor even Putin.  But certainly the Russians and Ukrainians are.  And yes..."we're over there."

Not sure where the US Army is in all this...but make no doubt "America is there!"

This doesn't feel like we're looking for the answer to the "question of slavery" however.  Torture maybe....

Sat, 12/13/2014 - 22:13 | 5549363 August
August's picture

>>>I'm not so sure the current war lovers are of that ilk...nor even Putin.  But certainly the Russians and Ukrainians are.

No doubt there is now plenty of bad blood between various parties involved in the Ukraine conflict, and some of them may well want a military resolution to the current stand-off.  But you can bet that Putin isn't one of them; the Russian leadership wants a neutral, prosperous Ukraine, and has zero desire for drawn-out hostilities on its western border.  Can you guess who does want exactly that? And is spending billions of their dollars to make it so?

Sat, 12/13/2014 - 22:44 | 5549405 Volkodav
Volkodav's picture

only bad blood is when come to rule over, kill you, take your land.

 

Sat, 12/13/2014 - 23:52 | 5549521 TheReplacement
TheReplacement's picture

There is a big difference between a war lover and a warrior.  You can generally trust a warrior much further than a war lover.

Sat, 12/13/2014 - 21:17 | 5549282 Aussiekiwi
Aussiekiwi's picture

Hey!!, be fair, they will watch the highlights on CNN, just like in Iraq, will probably need to reach for another drink.

Sat, 12/13/2014 - 21:28 | 5549302 silverer
silverer's picture

And Sherman was a hard ass.

Sat, 12/13/2014 - 22:40 | 5549399 Volkodav
Volkodav's picture

enough...

War Criminal

Sat, 12/13/2014 - 21:07 | 5549256 will ling
will ling's picture

and vald.... bides his time. no sweat.

Sat, 12/13/2014 - 21:11 | 5549262 Amerikan Patriot
Amerikan Patriot's picture
Neither Rate Hikes nor Putin's Diplomacy Can Stop Ruble Slide

Central bank rate hike may be too much for many businesses, but wasn’t enough to turn the market around.

Russia’s currency tumbled to new all-time lows against the dollar and euro Friday, with neither the central bank’s latest interest rate hike nor threats against ‘speculators’ from one of the country’s top cops able to stop the rout.

The seemingly unstoppable fall in the ruble is putting ever more pressure on banks that have borrowed heavily in dollars in the past, and which are struggling to meet demand for foreign currency from clients. In an effort to head off a full-scale banking crisis, the government is preparing a new round of recapitalization measures funded by the state’s rainy-day fund.

Under pressure from falling oil prices, the ruble has now lost over 9% this week alone against the dollar, even though the central bank Thursday raised its key interest rate by a full percentage point to 10.5% in an effort to support it.

The step satisfied neither economists, who said it wasn’t enough to turn the currency around, nor businesses, for whom credit will now get even more expensive even though the growth is shuddering to a halt. The central bank said Thursday it expects “virtually no growth” in the next two years, as low oil prices and restricted access to western capital markets choke off investment. It also said it expects inflation to top 10% at the start of next year.

Alexander Bastrykin, a top law-enforcement official who heads the Interior Ministry’s Investigative Committee, had made the most explicit threat yet to punish ‘speculators’ who manipulate the foreign exchange market, proposing tougher criminal penalties.

The turmoil at home took the gloss of a high-profile visit to India earlier this week by President Vladimir Putin. The visit ended in an agreement to make Russian helicopters in India, and expand direct ties between Alrosa, the world’s largest diamond miner, and Indian industry, but with no concrete deals in the crucial oil and gas sector.

Putin agreed with Indian PM Narendra Modi on expanding an agreement for Russia to build 10 or more nuclear reactors in India at a reported cost of $3 billion each. But that isn’t going to make any short-term difference to Russia’s economy. The one Russian-built plant currently operating in India at Kudankulam took over 25 years to build and launch. So far, despite an obvious need to upgrade its power generation nationwide, India hasn’t even identified a site for the second one.

Sat, 12/13/2014 - 21:14 | 5549275 Aussiekiwi
Aussiekiwi's picture

Perhaps Putin could pass legislation that puts the European tax payer on the hook for any and all losses, a small tax on top of the Gas price perhaps,seems to work a treat in the US, problem solved.

Sat, 12/13/2014 - 21:10 | 5549264 Aussiekiwi
Aussiekiwi's picture

The Morons really think that by supplying US weapons and 'Military advisers eg: US troops, that that will make the Russians surrender, lol.

I need to stock up on more popcorn, I am not going to have enough for this show. I feel sorry for the Ukrainian people, their country is about to be totally trashed in the name of Freedom morally supported by both sides.

Sat, 12/13/2014 - 21:12 | 5549266 hairball48
hairball48's picture

I don't think Rocky will pull it off this time....because this time is different.

Sat, 12/13/2014 - 21:13 | 5549271 Amerikan Patriot
Amerikan Patriot's picture
Russia: Why 63 Is an Important Number These Days
Russia's President Vladimir Putin reacts during a meeting in the Belarussian capital Minsk, Aug. 26, 2014. Putin and Ukraine's President Petro Poroshenko are meeting in Minsk for key talks on Aug. 26.

Kirill Kudryavtsev/AFP/Getty Images

The grim joke in Moscow these days is that oil, the ruble and Putin are all headed for 63 next year.

That’s oil down to $63/barrel, the ruble plummeting to 63/dollar, and Putin turning 63 years old.

That joke was ruined today as the price of a barrel of benchmark Brent crude flew past $63 and is already around $62.59.

The ruble isn’t far behind.

US Embassy in Moscow Faces Cold War-Era Harassment

Today, it passed 57 to the dollar for the first time ever, down nearly 8% just this week and over 40% this year. Even a steep interest hike has done little to slow the ruble’s collapse.

There’s more bad economic news on the horizon. Some $128 billion is projected to have fled the country this year, more than double last year’s capital flight, and well over 6% of the entire Russian economy. Lower oil prices have wiped out tens of billions of dollars in market cap for Russia’s largest oil and gas companies. A recession is now projected next year. Inflation, particularly for food, is rising.

That’s not even the most troubling news.

Economists estimate Russian banks and major state-owned companies owe western banks hundreds of billions of dollars. But due to Western sanctions, they cannot refinance that debt in the U.S. or Europe. Chinese banks can’t handle that volume, so they are facing defaults or look for handouts from Russia’s dwindling rainy day funds.

The combination of factors has the potential to collapse Russia’s economy, with unpredictable consequences for Putin and the rest of the world.

President Vladimir Putin’s popularity is based on rising incomes and maintaining stability. Both are threatened if oil keeps dropping and prices keep rising. Russia’s budget will face a shortfall as it expected oil revenues to be significantly higher, affecting everything from state-owned companies that employ many Russians to pensioners and government employees on fixed incomes.

The West hoped sanctions would force Putin to reign in his muscular foreign policy. But as a recent Economist cover explained, a “wounded bear” could be more dangerous abroad.

Russia remains one of the largest economies in the world and its economic deterioration could ripple across the world.

Meanwhile, Putin is trying to deflect blame and attention. The top story on a major state-owned channel’s newscast today was not the ruble’s sudden drop, but a story about French soccer fans getting beaten up in Kiev.

Putin has tried to blame to western sanctions, and they surely played a role, but for years the Kremlin failed to address major structural problems with the Russian economy, which depends too much on oil revenue and natural resources. Flat growth was predicted even before the oil drop and sanctions.

There’s now a new joke making the rounds: “If you had the chance, what would you change in your past?” one Russian ask his friend. The friend replies: “I would’ve changed rubles to dollars.”

Sat, 12/13/2014 - 21:28 | 5549303 disabledvet
disabledvet's picture

So if Russia itself collapses then what?

This really doesn't feel like a "win/win" to me.  That obviously is the strategy however.

Not that anyone is going to spell that out.  I will say Russia did attack Crimea without provocation.  I'm still not sure why.

Sat, 12/13/2014 - 22:03 | 5549349 himaroid
himaroid's picture

This is when zh needs a third, sideways, arrow/button. Maybe blue?

Sat, 12/13/2014 - 22:33 | 5549390 spqrusa
spqrusa's picture

Russia collapse? Maybe but they will take down the rest of the world in spite.

Sun, 12/14/2014 - 01:20 | 5549650 IridiumRebel
IridiumRebel's picture

America collapse? Maybe but they will take down the rest of the world in spite.

FIFY

Sun, 12/14/2014 - 00:00 | 5549536 TheReplacement
TheReplacement's picture

I tend to agree.  If Russia collapses they still have a decent military and a couple of nukes.  Bankrupt doesn't necessarily mean surrender, especially if the Russian people side with Putin against the west.

As for Crimea, warm water naval base.  Hello Turkey.

Sun, 12/14/2014 - 07:18 | 5549868 negative rates
negative rates's picture

Red eyes at moring, sailor, take warning!*8

Sun, 12/14/2014 - 11:18 | 5550157 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

So if Russia itself collapses then what?

Not really a concern anytime soon. The Ukrainian economy is on its last gasp and will not survive the winter. The European economic 'recovery' stands on soft ground with shaky legs and can be felled by a single misstep. Now in its eighth year of depression, the US economic 'recovery' is a fiction built on creative accounting fraud, the redefinition of words in mid-sentence, and primitive thuggery.

The Russians can afford to wait things out. The Ukraine is finished. The EU, unless it decides to prioritize sensibility over sanctimony, will be next to teeter and fall, if for no other reason than Vichy DC will throw it under the bus to save itself. And one wrong derivative blowing up is all it would take to trigger a US descent into outright martial law.

In the meantime, the Russian government's budget surplus this year, through November, is roughly $23 billion.

http://russia-insider.com/en/2014/12/13/1828

This really doesn't feel like a "win/win" to me.  That obviously is the strategy however.

The rulers in Vichy DC cannot strategize, as they are incapable of thinking, planning, and acting for the long term. They are driven by expediency and have no time to consider consequences. It's not a strategy, it's sheer desperation.

I will say Russia did attack Crimea without provocation.

You will be wrong when you say it, no matter how real the hallucinations may appear.

I'm still not sure why.

Probably because you've been skipping your medications.

Sat, 12/13/2014 - 22:02 | 5549352 Omen IV
Omen IV's picture

you said:

"President Vladimir Putin’s popularity is based on rising incomes and maintaining stability"

no his 86% approval is based on the fact he is a nationalist - the people know this is an existential threat they are facing which they havent seen in 65 years and need a Leader who is prepared for it. The US has no leadership only gangsters looking for a fight.

Russians will move tactically - americans have left after each provocation -

MacArthur fled with 600,000 chinese chasing him back to the 38th parallel in Korea where the Americans reside today....after 63 years same place they started from and 50,000 dead plus 2.5 million Koreans.

The world is watching

 

Sun, 12/14/2014 - 12:38 | 5550335 7againstThebes
7againstThebes's picture

“American Patriot,”

     I think your description of Moscow is sprinkled with truth.  Yes, there are people in Moscow who kick themselves for not changing rubles into dollars.  I know a few such people. 

But, that said, your reading of the Russian scene is not truthful.  It is a lie.  

You know very well that Putin has not ginned up the present conflict in Ukraine.  You know very well that the there is no evidence that the population in Russia is aggressive.  You know very well that the shooting down of the Malaysian airliner was a false flag operation (or rather, a clumsy, bungled attempt at one). 

So what are you doing? Are you trying to convince us that war in Ukraine is a good idea, or that Putin is resurrecting the USSR? 

No, not at all.  You don’t care about us. Your contempt for us comes through every sentence.

It seems to me that what you are doing is trying to find words and arguments to use to paint us as unpatriotic. You want to do this precisely BECAUSE you cannot answer our arguments or reveal your true motives. You are using words not to discover truth, but to suppress truth – which means in practice: you have to suppress or delegitimize us. 

Like so many things in the present age, this works until it doesn’t. 

 

Sat, 12/13/2014 - 21:18 | 5549283 oncefired
oncefired's picture

Need to start WW3 so that it is easier to anounce that banks are closing and a new devalued currency is being introduced. Don't worry that your 401k disappeared, Russia is the devil!

Sun, 12/14/2014 - 08:50 | 5549934 Refuse-Resist
Refuse-Resist's picture

Oy Vey Yeah!

 

Da Da

Da da daaaa

 

 

Sat, 12/13/2014 - 21:26 | 5549301 RMolineaux
RMolineaux's picture

Compliments to Tyler on excellent piece.  One can never overestimate the stupidity of our congress.  The Jerusalem Times has an interesting piece reporting that Israeli scholars and politicians have finally acknowledged the Kazar origin of Ashkenazi jews, and some are using it to make a claim on Ukraine.  This would fit nicely into the US program to scrape up any available degenerates to support the coup government it has installed in Kiev.  Can you visualize Israeli troops fighting alongside unrepentant Nazis?

Sat, 12/13/2014 - 21:56 | 5549343 Winston Churchill
Winston Churchill's picture

How would you be able to tell them apart ?

Apart from the blue star that is.

Sat, 12/13/2014 - 22:16 | 5549369 BigDuke6
BigDuke6's picture

Are you suggesting that congress is under jewish control?

surely not.

yes they bankroll 70% of them to go on fact finding junkets in europe and isreal but these are people of honour....

and its not really a bribe when you are the chosen people... more a divine right...

Sat, 12/13/2014 - 22:32 | 5549389 spqrusa
spqrusa's picture

Stupid or Criminal? They seem to be winning so stupid doesn't seem to apply.

Sun, 12/14/2014 - 00:02 | 5549546 TheReplacement
TheReplacement's picture

If Israel wants to send troops then so be it. 

If the US wants to send troops then hell no.  Seeing as there is little I can do to stop that I can only hope the troops wake up before it is too late.

Sun, 12/14/2014 - 03:05 | 5549718 Freddie
Freddie's picture

Good luck to them.  They are not in any hurry to go back into Lebanon after running up against Hezbollah in 2006.  Hezbollah made the IDF's life miserable and they left in 34 days.  It was not a success. 

I cannot imagine the IDF fighting DPR and other NovoRussian rebels.  These guys are even tougher than Hezbollah. Many Ukrianian conscripts wisely realized that they are fighting their brothers and quit the war.  They also did not want to fight these vetrans of places like Chechnya and Afghnistan.

The men in Eastern Ukraine are tough soldiers.

Sun, 12/14/2014 - 03:45 | 5549754 Otrader
Otrader's picture

The chosenite blood is precious.  The goy will be doing the dirty work as usual with goy money.  

Sat, 12/13/2014 - 21:35 | 5549316 Barnaby
Barnaby's picture

"I will crush you." ~ unified Russian, Chinese, Korean and (dead last) US Hackers

Novus ordo bitchorum

Sat, 12/13/2014 - 22:35 | 5549392 Volkodav
Sat, 12/13/2014 - 23:06 | 5549443 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

That is an interesting website.

Sat, 12/13/2014 - 23:21 | 5549465 Volkodav
Volkodav's picture

dup

So is Economist World Debt Comparison   World Debt Clock

http://www.economist.com/content/global_debt_clock/

compare countries

Sat, 12/13/2014 - 21:43 | 5549322 22winmag
22winmag's picture

The largest army (by far) on Earth is eventually going to be forced to put it's collective foot down and stop this nonsense.

Sat, 12/13/2014 - 21:56 | 5549341 himaroid
himaroid's picture

Try not to step on that there red button, big foot.

Sat, 12/13/2014 - 22:26 | 5549381 Radical Marijuana
Radical Marijuana's picture

"The largest army on Earth" is IRRELEVANT after the development of weapons of mass destruction. What we are watching is runaway criminally insanity, which is psychotically out of touch with that reality. "The largest army on Earth" could ONLY make things become even more criminally insane, faster!

Sat, 12/13/2014 - 22:49 | 5549388 spqrusa
spqrusa's picture

Hmm - how about weaponized smallpox, ebola, marburg and a wild assortment of other nasty bugs - how will are their slingers and lead do against that? Russia's favorite approach is a stealth nook strike - they have been jonesing to carry this out since they acquired nooks in the 50's

Sun, 12/14/2014 - 11:41 | 5550214 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Hmm - how about weaponized smallpox, ebola, marburg and a wild assortment of other nasty bugs - how will are their slingers and lead do against that?

I see you still haven't made the connection between actions and consequences. Try sticking your hand in a fire or a wood chipper and see if that helps.

Russia's favorite approach is a stealth nook strike - they have been jonesing to carry this out since they acquired nooks in the 50's

Yours is a primitive mind trapped in a world of comic book storylines.

https://en.wikipedia.org/wiki/Plan_Totality

Sun, 12/14/2014 - 00:00 | 5549537 Trucker Glock
Trucker Glock's picture

"The largest army (by far) on Earth is eventually going to be forced to put it's collective foot down and stop this nonsense."

I don't think China wants to be involved with Ukraine.

Sun, 12/14/2014 - 00:10 | 5549564 TheReplacement
TheReplacement's picture

You obviously are not a fan of the Remington 700.  Over 5 million sold.  That's a big army.

Sun, 12/14/2014 - 00:35 | 5549595 Trucker Glock
Trucker Glock's picture

Perhaps I misunderstood his comment and what nonsense he was referring to.

Not sure I would consider a collective of Rem 700 owners an army.

Sun, 12/14/2014 - 00:36 | 5549601 TheReplacement
TheReplacement's picture

I believe he was referring to a magazine ad a couple of years ago by Remington.  It went something like:

"Remington Model 700.  Over 5 million sold.  The world's largest army is not in China."

Sun, 12/14/2014 - 00:50 | 5549615 Trucker Glock
Trucker Glock's picture

Ah.  Never saw the ad.  Thanks.  Completely misunderstood his comment.

Edit:  I have one hundred or so American Rifleman in the back seat of my car a friend gave me recently.  Maybe I should be reading them.

Sun, 12/14/2014 - 07:48 | 5549888 zerocash
zerocash's picture

China does have over 600 million citizens who are fit for military service though. More than the entire population of the US.

http://www.globalfirepower.com/country-military-strength-detail.asp?coun...

Sun, 12/14/2014 - 02:42 | 5549706 Volkodav
Volkodav's picture

Is not needed.

Not yet.

There is investment talks with Crimea.

Sat, 12/13/2014 - 21:48 | 5549333 rsnoble
rsnoble's picture

Least common denominator: humans.  Our species is never going to make it.

Sat, 12/13/2014 - 21:52 | 5549340 Barnaby
Barnaby's picture

Who really "makes it" anyway? The original rulers of our planet constitute food for us with their eggs and bodies by the bucket-load.

Drink, and be merry!

Sat, 12/13/2014 - 22:41 | 5549402 Radical Marijuana
Radical Marijuana's picture

I hate to have to agree with you rsnoble, however, it takes believing in a prodigious series of miracles to come to any other conclusions. We have globalized systems of electronic monkey money, backed by apes with atomic bombs. The degree of disconnection between relative progress in physical sciences, versus political science totally dominated by bullshit, provides NO good grounds for any rational hopes for the foreseeable future, especially since history has already selected for the ruling classes to become the most psychotic people, who are promoting a criminally insane agenda, to attempt to consolidate their globalized systems of enforced frauds, despite those having been pump up and UP with electronics and atomic power.

Electronic monkey money, backed by apes with atomic bombs, is the best summary of the situation we face, wherein the overwhelming vast majority of people do not understand anything about quantum mechanics or the special theory of relativity, while the criminally insane ruling classes continue to plan on using those powers to become able to consolidate their hegemony of social controls through the means of backing up lies with violence, even though that takes doing that with electronics and atomic power, that are trillions of times BIGGER than ever before in human history!

A tiny minority of human beings were able to get the rest of them into extreme difficulties, because that tiny minority was able to advance the industrial revolutions, through science and technology, while the remainder continued to live inside of social pyramid systems controlled by lies backed by violence, and therefore, most of the potential of science and technology ended up being applied to make civilization become orders of magnitude more dishonest, due to being able to threaten to become orders of magnitude more violent.

Meanwhile, it appears a pointless waste of time, and quite quixotic, to bother to point out that both the ruling classes, and those they rule over, have become psychotically out of touch with the realities created by advancing science and technology, because almost everybody continues to look towards the past, while the ruling classes appear to be the most criminally insane, because they tend to most believe in the most old-fashioned religions.

The current situations are the politics generated by people who believe in religions which are thousands of years old, opposed by people who believe in ideologies which are hundreds of years old, within the context of technological transformations that are less than a Century old, while almost none of the ways of thinking that enabled the sciences that made those technologies have any role whatsoever within the political processes that take advantage of those technologies to advance the old-fashioned agendas of backing up lies with violence. Given that overall situation, there are NO good grounds to doubt that the human species is preparing to commit collective suicide.

Sat, 12/13/2014 - 23:45 | 5549512 joego1
joego1's picture

Whats in the bong tonight radical?

Sun, 12/14/2014 - 00:33 | 5549596 Anusocracy
Anusocracy's picture

The current situations are generated by survival behaviors developed over millions of years of tribal life and 10,000 years of settlement life.

They are no longer beneficial in a modern technological setting.

Sun, 12/14/2014 - 00:13 | 5549569 August
August's picture

Yep.  The monkey thing just isn't working out.

Sat, 12/13/2014 - 22:00 | 5549348 Joe Tierney
Joe Tierney's picture

It's all just an excuse to escalate the war on Russia and re-collapse it by collapsing its economy, before Russia-China can really coalesce into something dangerous to U.S. global hegemony.

 

It's a race against time....

 

Got to turn Russia into a social/economic wasteland before it can accomplish the goal of bringing China and the rest of the BRICS fully into an anti-petrodollar global axis with real clout.

 

It won't work - Russia will succeed before the U.S. can succeed in stopping Putin.

Sat, 12/13/2014 - 22:03 | 5549354 Barnaby
Barnaby's picture

Or there is no Collapse at all, just a sad thin pantomime, every time and rich men like me get richer.

Sun, 12/14/2014 - 02:02 | 5549677 will ling
will ling's picture

sound analysis.

Sat, 12/13/2014 - 22:07 | 5549357 himaroid
himaroid's picture

These Putin haters making predictions about the Russian economy should tell us their analysis of the effects on the U.S./world economy.

Come on now, follow through.

Sun, 12/14/2014 - 03:06 | 5549720 Freddie
Freddie's picture

It is harming European companies and countries the most.

Sat, 12/13/2014 - 22:16 | 5549365 alexcojones
alexcojones's picture

Fighting the Russians in winter/

Yeah, that has always worked out well.

src/

Sat, 12/13/2014 - 22:17 | 5549368 Radical Marijuana
Radical Marijuana's picture

http://www.zerohedge.com/news/2014-12-05/ron-paul-warns-reckless-congress-just-declared-war-russia

Ron Paul Warns, Reckless Congress Just 'Declared War' On Russia

During our times where everything manifests exponential accelerating trends, Ron Paul's predictions are becoming true faster than ever!

Sat, 12/13/2014 - 22:18 | 5549373 Harriet Wanger
Harriet Wanger's picture

For the last few years, the U.S. government has been going for toeholds against Russia only to be countered by body slams. Short sell the petro market? Two massive locked-in deals with China. Sabotage the Southstream? Turkey. Five billion dollars to buy Ukraine? Crimea, with almost all of the oil rights in the Black Sea and nary a ruble spent. Is there anybody out there who really thinks the ruble decline wasn't foreseen before Russia removed the peg? That things aren't going exactly as Russia planned?

It's easy enough: Bet against the U.S. government doing one single intelligent thing and you will win every time.

Sun, 12/14/2014 - 00:24 | 5549586 Freddie
Freddie's picture

The US Govt is also very good at selling out Americans.  Putin is liked by Russians because he cares about Russia and will protect his people. 

Congress and Obama sell out Americans at every turn.

Sat, 12/13/2014 - 22:28 | 5549384 spqrusa
spqrusa's picture

Have to open up a new theatre of war as the old ones are drying up. How else will they sacrifice the boys and girls to their demon gods?

Sat, 12/13/2014 - 23:28 | 5549480 eyesofpelosi
eyesofpelosi's picture

Lol! Molech for president 2016!

Sun, 12/14/2014 - 00:20 | 5549579 August
August's picture

Cthulu-Rubio!  They rock with the younger generations.

Sun, 12/14/2014 - 00:33 | 5549597 TheReplacement
TheReplacement's picture

Am thinking of running for President in 16 (death wish).

My opening spot:

"Hi, my name is TheReplacement.  I'm pretty much against everything for which those other candidates stand."

"You know that no matter which one of them you vote for the outcome will just be more of the same."

"So since your vote doesn't really matter anyway you should just throw it away on me"

"I'm TheReplacement and I approve this message."

*This message brought to you by 'Ah Fuck It' PAC.

Sun, 12/14/2014 - 00:44 | 5549614 Steal Your Face
Steal Your Face's picture

I saw a bumper sticker on an old pickup in Lawrence KS a few years back:

Vote Cthulu. Why settle for a lesser evil?

Do NOT follow this link or you will be banned from the site!