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Russian Central Bank Intervenes After Currency Crashes, Halts "Manipulated" Equity Futures Trading
The Russian Ruble has collapsed this morning. Despite a modest dead-cat-bounce-like rally in crude oil, the Ruble is down almost 3 handles smashing through the 61/USD level for the first time ever. Minutes after flash-crashing to 61.46/USD, officials, according to Reuters, halted trading in certain instruments to “prevent possible manipulation of equity futures market." Russia's 5Y CDS has broken above 500bps for the first time since 2009 (+21bps today), the RTS stock market is down over 6%, and 5Y bond yields are pushing towards 13%. It seems Putin is increasingly being put under pressure to do something...
- RUSSIAN CENTRAL BANK SAYS ORDER TO MOSCOW EXCHANGE TO HALT TRADING IN CERTAIN INSTRUMENTS TO PREVENT MANIPULATION OF EQUITY FUTURES MARKET
The Central Bank of the Russian Federation (Bank of Russia) Press Service
On measures to prevent a possible market manipulation
In order to prevent possible manipulation during pricing expiry of futures contracts on the RTS Index RTS-12.14 equity markets included in the calculation base of the RTS Index as of 12.15.2014, the Bank of Russia sent an order to ZAO "MICEX" to suspend the trading of financial instruments near customers bidders whose actions in the equity markets have repeatedly directed action in times of determining the settlement price of the expiry of futures contracts on the RTS Index, ekspirirovavshihsya previously (2013-2014 gg.).
RTS is collapsing
The Ruble is crashing...
Then what apopeared to be intervention occurred...
Confirmed - BANK OF RUSSIA MAY HAVE SOLD $350M TO BOLSTER RUB: BCS' SAENZ
And default risk is spiking
Charts: Bloomberg
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What a surprise?
Everyone else is getting dollars.....stop screwing around.
Gay nerd over muscle head
"Despite a modest dead-cat-bounce-like rally..."
Don't you mean: "Red-cat-bounce?"
BTW, Ruble down to 60.67 to the $USD. That's a 4.21% drop, just this morning! That's a HUGE move in the FX market.
Forget oil, I'll bet there are some sizeable margin calls going on today in the currency space.
Maybe it will be a Red Swan that triggers the collapse...
[P.S.: Gold/Platinum ratio just crossed 1.000; both are trading at $1,210/oz.]
If you like your manipulated BS, you can keep your manipulated BS.
We manipulated some folks.....
Anyway they can do that here??
Aussies protest war criminal Porshenko in Sydney. Odd how we have a Islamic takeover in the same city about the same time.
http://www.liveleak.com/view?i=284_1418605085
This is the same war criminal that Soros pro-amnesty Congress gave standing O's to.
Get the fuck out of Ukraine snd go back and run your little failed state Pooty Poot.
Russia is not in the Ukraine. You would know by now instead of just getting hype. There would be some evidence. The one group of Russians on an exercise that wandered across the border were sent back to Russia immediately by Ukraine. What does that tell you?
with a crashing ruble (lol) expect a bit less russian tourism going fwd at least outside of the ukraine
Bullish for Black Sea resorts.
@ Quinvarius, re: Russia is not in the Ukraine
Is it hard to see with your head buried so far in the sand? Your hero is going down, homie.
Russians have been, are and always will be in Ukraine. Fixed it for ya moshe. If you don't like cry me a river or you can perform some Talmudic rituals to get the Russians out of Ukraine.
No bub . Russia ends up with 23 billion $ surplus in their budget amid sanctions whereas cameron had 150 billion deficit whereas aussies had 41 billion deficit . Russian pensions is not decreasing either . “A weak ruble is good for the government budget,” “It’s in the government’s interest to let the ruble devalue but it should do it in a way that will not lead to a panic among Russians who keep money in rubles.”
A weak ruble is only good if you buy russian goods. Since the russians make jack shit except weapons, vodka, and energy, whcih don't constitue a balanced diet, it is not good for russians at all. As for their financial situation, they blew through 10% of their currency reservews in the first half of this year alone, and $50/barrel oil means their prediction of a small recession in 2015 is worthy of FED prediction standards.
Putin will not go quietly into the night, but he will go.
The fewer Russian tourists in Thailand, the better it is. Crash, ruble, crash!
Thailand will not be feel bad at all . With CIA Torture camp in Bangok they will be geting more and more recruits ready to be radicalized so US can send them to join ISIS .
Their jackshit industries is booming amid crisis especially aggricultural . Their economy is resilient amid sanctions. Putin is here to stay till 2024 . Wishful thinkers like you can moan/speculate whatever you feel like . US isn't winning the new cold war bub get a grip and stop being an ignorant ( exceptional one )
Yes, russia is booming, just look at their currency. And I'm the ignorant one.
You are. Currencies are irrelevant. Hard assets are the only thing that matters. That would be good agricultural land, good manufacturing capabilities, and gold. Russia has all of them + highly educated and quite innovative people.
What does America have, other than a bunch of arrogant traders / bankers ?
Of course their currency is hurting! Only a country whose paperware currency enjoys being the GRC, can create "money" out of thin air and write unfunded checks (USSA), and make statements like "Deficits don't matter" (Cheney).
And those who benefit from the Dollar's GRC status are its real owners (in NY and Tel Aviv), its bullied and rented friends (EU, Five Eyes, G7) and hired Mercs (Ukraine junta). They are able to enjoy this easy ride because the fiat USD creation is being forced onto the rest of the planet, that does not enjoy its 'benefits' but is forced to subsidize it. It's a nice trick and nice lifestyle, if you can get away with it.
But, I suppose, the moment someone highlights some basics facts and truth, people like you (shills, trolls, zealots and morons) will immediately use all the classic tricks of Debate (deflect, redirect, avoid facts, context or perspective, use sarcasm, humor and ad hominems) to take the spotlight away from themselves, and their shaky or phoney 'Argument'. I don't mind you being critical (here on Fight cum Debate Club), but you'll have to do a LOT better.
p.s. And tempting and fun as it may be, I won't play into your hand (to redirect and slander ZH), I will not give in to ad hominems. No matter how much you like to provoke, Agent Provocateur. These dirty tricks did not work on Jesus and (using Him for inspiration), it won't work on me either, bud.
TPTB in Russia (i.e. Putin) could peg their currency to USD anytime they want. There is a deeper game here. On one hand, the profits of the exporters are not affected by the collapsing ruble. But I suspect that Putin is just looking for a reason to replace the entire management of the Russian Central Bank with more "reliable" people. A collapsing ruble would be just the crisis he needs to go on with his plan, and still claim that his hand was forced. For internal political reasons, it's better for the pressure to build from lower levels up (from a population fed up with the decreasing purchasing power, at least against western currencies) than the other way around. Once the Central Bank proves it is incapable to stop the slide, the cries for the gov to "do something" will become too much to ignore. Governors will be replaced, and a package of measures to stop speculation will be introduced over night. Currency market contracts will be terminated and defaulted upon, and the ruble will be pegged at a conveniently low rate. Russia will became China (currency wise), and the "smart guys from across the ocean won't be able to do a damn thing about it. After all, "a la guerre comme a la guerre" as the say goes. Americans are so naive...
And just who the fuck occupied Crimea?
marriedgeordie
Crimea is not occupied. It was already home to Russia's fleet, already ethnically Russian, already determined (since 1954) to get out from under Kiev. Russia surged forces into their bases in Crimea but the number never surpassed the limit stipulated in the RF/Ukrainian basing agreement. There was never an invasion -- which is you never saw i-phone pix of Russian tanks and APCs and landing craft and paratroopers descending on Sevastopol.
The Russian majoirty held a referndum and voted to joint he RF. Such a referendum would have passed in a landslide whether or not Russia had bases on the peninsula.
Had Washington/Brussels allowed the electoral caldendar to play out, there would have been presidential elections in Feb 2015 (which Yanukovich probably would have lost) and Crimea would now be part of the Ukrainian Republic and there would be no civil war in Donetsk and Lugansk.
So if you want to get all hot and bothered about Crimea, blame Washington, not to Moscow. We should be used to this by now. We go mucking around in other peoples' countries, and get results we never expected (but should have.) Similarly, our mucking aournd in Syria and Iraq have bequeathed us ISIS.
All correct. Additionally, after that vote Crimea's parliament (unsure if that's the correct name) requested accession to join Russia.
And that 'parliament' was seated well before the coup in Kiev installed Yats et al.
How could it have been handled more legitimately?
better think who did not...
Crimean succeeded from Ukraine
While Kiev and radicals were running their mouths their big damage intentions against Russia types
Crimean people opted out
Done
It was elegant
Crimea is still celebrating
Me it's the reverse I would love to see Russian troops in Novorussia at least to avoid the civilian getting shelled by Kiev terrorist.
There are only sympathetic Russian cock-suckers on ZH.
"Here, let me take your coat Mr. Putin."
Of course you and I know they (and Putin) are being castrated right in front of our eyes.
the fluffers?
<~~~Sympathetic to NWO targets
<~~~Drank the NWO kool-aid
I'm not sympathetic to Putin, and I think a world ultimately run from Moscow (rather than Washington/New York/London) would be far, far worse for individual liberty - but the propaganda is pretty blatant.
imo both sets of propaganda, the pro- and anti-Russian ones are blatant, at the moment. It was very visible during the Ukraine crisis, where many ZH readers posted according to what they were... fed
The mostly unspoken, unpopular, and unpalatable position is that there is no one (no major player) on the side of the average person. Pick your poison.
Way off Gordo.
It isn't that anyone loves Putin...
They just hate Obama and what America is doing worse.
There's still a residual feeling, although it's totally unsupportable by evidence, that America is supposed to be the good guys.
And a large majority of Americans want to believe that it is, and it would be, if they had a say in the matter.
They would rather have a good job than a global dominating Empire.
I agree with much of what you're saying, but I think a lot of the posting is by hypocrites who hate American government more than they love liberty.
The enlightened ones realize it isn't Obama at all.
There is a conspiracy though none dare call it that.
Who owns the US?
If the individual liberty of US is like
* ignoring individual liberty out of US
* guns and support for ISIS,
* nuclear weapons for Israel,
* bombing of dozens of countries,
* coups around the planet,
* Germany occupation since 1945,
* support of fascists in Ukraine
* police state in the US
* total government and corporation corruption
* frauds in the financial markets
* more than 50% taxing on income and property
Then I really prefer what Putin and Russia has to offer.
+1000
You forgot the s/ ;)
Get a grip pee pee .
Back to molesting kids and grannies, you TSA mouthbreathing fuckwad.
I'm impresses by the Up/Down numbers to Dumbotron's post.
+17 responses, not to a well argued position, but merely to his Ad Hominem? Interesting.
The other observation I'll make, is that today is the day that Russia is supposed to test its alternative to SWIFT, which I like to call 'RIFT'. Surely this and the US arms airlift to E. Ukraine are not a coincidences.
We're talking "Cassus Belli" (cause for war), boys.
Too late comrades!
I'm the only one that thought we should guard the gold vault?
You guys are all fired!
The next time we do something like this......THINK!
This is far less about oil than potential war and financial barriers being put up by the West. The bankers are telegraphing their knowledge or intent.
The economic war against Russia continues - the military war cannot be far behind:
US Congress authorizes new sanctions against Russia, arms shipments to Ukraine
By Niles Williamson15 December 2014
In an inflammatory move the US Senate unanimously passed a bill late Saturday night authorizing President Barack Obama to implement a raft of new sanctions against Russia and deliver hundreds of millions of dollars of lethal and nonlethal military aid to the Ukrainian government.
The Ukraine Freedom Support Act of 2014, which also passed in the House by a unanimous vote, is currently awaiting the president’s signature.
Speaking Thursday to a group of CEOs at a meeting of the White House’s export council, Obama indicated that he would not support further sanctions against Russia unless the United States’ European partners agreed to new sanctions as well.
“The notion that we can simply ratchet up sanctions further and further and further, and then ultimately, Putin changes his mind I think is a miscalculation,” he said. “What will ultimately lead to Russia making a strategic decision is if they recognize that Europe is standing with us and will be in it for the long haul and we are, in fact, patient.”
A spokesman for the Russian Foreign ministry told reporters on Friday that the measure was “deeply confrontational” and would “destroy cooperation.” He added that Russia, “won’t succumb to blackmail, won’t compromise its national interests and won’t allow interference in its internal affairs.” Responding to the passage of the bill, Russian Deputy Foreign Minister Sergei Ryabkov told Interfax, “Undoubtedly, we will not be able to leave this without a response.”
Most provocatively the legislation authorizes the distribution of $350 million in military aid to the Kiev regime over the next three years. Included in this potential cache are anti-tank and anti-armor weapons, grenade launchers, mortars, machine guns, as well as surveillance drones. The Obama administration has so far resisted official calls from the regime in Kiev for the distribution of lethal military aid.
The bill also gives the president the authority to apply a new tranche of economic sanctions against Russian companies as well as individuals that may invest in the Russian energy sector.
http://www.wsws.org/en/articles/2014/12/15/ukra-d15.html
It may not be the best of strategies to force Putin to do anything. He might well do something.
He's not going to do shit. He's a little man whose butt hurt that his motherland is a failed commumist state and is now a failed, corrupt oligarchical state.
All he is going to do is go back to the mountains for more photos of him riding a pony in the mountains and swimming in a lake. Because the Russians still buy that propaganda bullshit and so do so many retards here on ZeroHedge
If you say so, Kike.
Nice try JumbleOn
Haha your trolling skills suck too .
better worry about your own country
Why don't they just sell the U.S. bonds.
good question
It's their own public and the banks that are selling the Ruble, it has nothing to do with western speculators. No one was holding much Ruble to begin with, no one has it to sell.
Still waiting on Russia to start WW3 with the USA.
Russia would be in the right.
Superb.
The US effectively declared war when it compared Russia to ISIS and Ebola. The 'Ukraine Freedom Support Act' enabling the placement of weapons in Ukraine is an implementation of that war.
When currencies become a tool of war and casus belli.
Reminder: Topol M work great and can do evasive maneuver.
Reminder:
Russia has to spread approx same number of warheads as US deploys over targets in all of western Europe and United States.
US + UK + France has larger combined arsenal and smaller number of targets to pulverize.
Net result is that you definitely won't be around to celebrate, but we might be.
Further reminder: Nobody has ever tested ICBM polar flight paths. All tests done east-west axis. Nobody really knows in practice if missiles will actually hit targets.
they should buy gold to stop this fucking joke
squeeze them (manipulators)
"squeeze them (manipulators)" - for that, the Russian NB governor needs... USDs. And she has enough of them, but she has to be parsimonious with them
You can purchase physical with Ruples.
UST -> USD -> RUP -> AG
US hoping Russia bombs the hell out of Saudi oil wells.
really wish that whatever is comming would just happen.
You really sure you're ready ?
I don't think anybody really is, but it seems unstoppable now.
Rock meets immovable object.
Yeah, I think I agree. I do not want to see anything like this come down the pike....yet its rolling on.
Syndicate attempt to bankrupt Russia ends with white flashes and mushroom clouds.
us can't win nuke war, just 200m dead and "hot" heap left.
Hmmm, kill 200 million FSA, liberal cheerleaders and government employees?
That leaves us 140 million productive and really angry citizens.
Kill 200 milion Russians in return?
For Russia, that means they need to import an extra 50 million people just to get their population up to zero.
If the idea is to scare us off, you are going about it the wrong way.
Russia has civil defense
So?
Our 140 million plus whatever Europe contributes will far outnumber the Russian survivors even if you didn't lose a single life.
Plus you are dealing with a program operated by a corrupt government (like all of the rest of them). You will find that the food supplies have mysteriously vanished, the survey meters don't have batteries and won't provide accurate readings anyhow because Russian-made Geiger-Muller tubes(those that actually work) fail in a few hours of use, and that the shelters have a compromised PF that renders them into deathtraps because the skimmers know that their crimes won't be uncovered until it no longer matters.
So you go ahead and rely on your government to provide you with protection. Mine is sitting right here at the house and I pay to have all my equipment tested and recalibrated in a private lab every five years. I even have some old Russian stuff that I use as emergency backups in case additional people show up.
Thanks for providing the gear at virtually free prices, by the way. No doubt the original purveyors in Russia can afford to charge such low prices because their cost basis is zero, as in stolen from the supplies you are counting on.
Dude, there aren't going to be ANY survivors. Whatever is left after the H-bombs will be exterminated by the hundreds of burning cooling ponds.
This idea of "riding it out" and prevailing due a larger number of survivors is puerile foolishness at its worst.
..... how would be, the best way to invest in a (small) basket of Russian bonds & or currency??
Cyprus banks?
If your enemy is secure at all points, be prepared for him. If he is in superior strength, evade him. If your opponent is temperamental, seek to irritate him. Pretend to be weak, that he may grow arrogant. If he is taking his ease, give him no rest. If his forces are united, separate them. If sovereign and subject are in accord, put division between them. Attack him where he is unprepared, appear where you are not expected
~Sun Tzu "The Art of War"
The best strategy is to be really strong. First in general, then at the decisive spot.
-- Napoleon Bonaparte
Yeah, that worked really great for Napoleon, both in Russia and at Waterloo...
It worked fabulously at Jena, Austerlitz, Marengo and numerous other fields of conflict. Logistics were the problem in Russia and a crazy subordinate on the French side plus an excellent one on the English/Prussian side finished the Napoleonic dream on the road to Brussels.
But Napoleon is regarded as one of the premier strategists of history. Having read Sun Tzu, most of his wisdom is a collection of generic common knowledge. His aphorisms were dutifully serious while Napoleon often tended to couch his in an ironic or sarcastic tone:
"God is usually found on the side that has the biggest battalions" being a familiar contribution.
If this crash is the result of manipulation then the US and the EU better watch out. They may force Russia's hand into real military action.
Wonder if the US is going to employ their space weapons (kinetic energy) when Russia decides finally go at this militarily.
If a hammer costs $600 for the pentagram, there isn't enough money in the universe for
space weapons.Seems to me that Russia controls space right now, not the US.
Could sombody please tell me how Nuland still has not been fired after she started this whole thing?
If you poke the Bear enough he will bite. Guaranteed.
If you poke an eagle long enough, he will take out a gun and shoot you.
Then make a bear tooth necklace for his girlfriend.
In my neck of woods on the West coast, the eagles are kicked away by crows, and seagulls... just saying.
That's because those wimpy California eagles don't carry guns.
Isn't this basically what Abe wants over in Japan? A currency crash but can't get it?
Who would've thought the Rub would be the first fiat to die.
Okay, it is not going to die. But after hearing about the demise of the dollar for years, this is the closest we've gotten anything like that..
where is the troll army? We need more trolls on Russia threads citing Larry Kudlow and CNN...
Well this means we won't have enough money to buy US crap.
Besides ammo, vodka and brides
late edit
Has anyone ever bought anything that was made in Russia?
I didn’t think so.
I'd buy a SU-35 if I had the money :)
http://www.dailymail.co.uk/news/article-2188727/Americans-buy-AK47s-Russ...
I sure have buddy.
Couple thousand rounds of Wolf 7.62x39.
No.
But why then are Americans still flying into space with Russian rocket ships - being the only means of travel to get a space station. See the Nov 2014 launch description:
http://www.space.com/27848-space-station-crew-launch-webcast.html
Vodka. Other than that, cannot think of anything....
Weapons and ammo....
Couple nice Mosin-Nagant 91/30's and a mega-butt-ton of surplus 7.62X54R light ball.
Grimaldus
Well... back in the day, when I had a ponytail, geetar and a much narrower horizon, these were a must have:
https://www.google.com/search?q=sovtek+6l6&sa=X&biw=1920&bih=959&tbm=isc...
We all buy oil and gas a lot of which comes from Russia.
The Russians sell their products in Dollars. and thus, with Rubles down, they are actually getting richer every minute.
The price of oil is falling. That means Russia gets less dollars. But they still get much more Rubles ultimately.
Of yes, Russia will have to use more Rubles to buy western goods. like food, meat and fruits right?
But No. Russia has accepted western sanctions and now have stopped buying food, meat and fruits from western nations.
Well that sums up the situation more accurately. Russians know exactly what they are doing. No amount of media pressure is going to make them shoot themselves in their foot.
Before: 100 dollar/barrel at 36 rub/usd -> 3600 rub/barrel
now :60 dollar/barrel at 60 rub/usd -> 3600 rub/barrel.
Fine so far.
Before: 6 rub / rmb
Now : 9.7 rub/rmb
The problem is of course the imports. western or chinese. Usd rmb hasn't moved an inch in the same period. And I thought that Russia mall in Beijing looked deserted in 2012.
At least the Russian can be happy that the Ukranians has it worse.
All hail the Russian. The know what they are doing (tm)
If they are getting richer by the minute thanks to this western scheme, why are they fighting it and complaining so much?
Do they like being impoverished?
I would buy Topol-m if I had the permission and money to do so.
dumb Q
Oil up + Ruble down = Budget surplus
Russia and China need to return the favor and crash the US dollar.
what would be the point in doing that ?
every one is trying to crash its own currency (at least as long as population is ok with that)
The real basic question in my mind is whether Putin is playing along with the western bankers or whether he is actually trying to make a stand against their hegemony.
My bet is on the first one.
He played the NWO along the garden path for a few years.He had to, Russia WAS too weak.
We are seeing the real Putin now, and he is definitely making a stand.
We are on the front row to history being made,or ended.
Russia is the one remaining obstacle to ZWO world domination via control of the money and the media.
Russian officials politely call it "the global financial oligarchy".
One thing is clear. Russia will resist being stripped of their soverignity as has been done to every other Western nation with a Rothschild syndicate affiliated central bank.
Lets face it. Western leaders are ZWO puppets. Merkel could run the US and Obama could run Germany. It wouldn't make a bit of difference for the citizens if you shuffled the ZWO mascotts back and forth.
Russia will fight if they have to. They have said so on several occasions. In this context, "fight" means nuclear war.
making a forced stand because of Barbarossa-2 plan which was unveiled not long ago
Market manipulation ? whatever does he mean ?
Stupid Russians.
Putin and his finance ministers better come up with his own version of SWIFT sooner rather than later...
Too many "Zio-heads" in the woodwork in Russian banks!
Aren't they unveiling that new system today?
Pure serendipity that this happens today, I'm sure.
Many in Washington do not know the difference in playing Musical Chairs with Russian Roulette.
Cookies and Twittering make all the difference!!!
Russians didn't deserve such a stupid president as putin. Now they are in deep deep shit for long long time. If only they get rid of that nutty - they could be able to restore Russia face on international stage and trust to RUB.
Feeling sorry for common russians.
Presidential favorability Polls do not seem to confirm your contention. But then again, in a Police State, polls and indictments can be rigged.
Feeling sorry for common Americans and Russian peasants.
Feeling sorry for American peasants and common Russians.
TFTFY
I agree with the last part about feeling sorry for the average russian but which country do you live in that you would think Putin is stupid by comparison? He is definitely an asshole but way up the tree compared with every other western country.
Americans didn't deserve such a stupid president as obamo. Now they are in deep deep shit for long long time. If only they get rid of that nutty - they could be able to restore America face on international stage and trust to USD.
Feeling sorry for common americans
Go Putin
This global situation is uncharted territory, without precedent in history and only the fucks at the very top of world hierarchy may know which way it's gonna turn. One thing's for sure, the common Russian work slave is having a very tough time right now. Their entire unofficial economy in Russia (and Ukraine for that matter) is and has been based on the value of the American dollar. All private debts are settled in dollars, rent paid based on the dollar, cars bought based on the dollar.... I know, I lived there for a while. If the Ruble keeps falling the little guys are screwed. They will come out into the streets and that may very well push Putin into a situational decision none of us want him to make.
I believe MA best described the Wash. game plan which is precarious considering Putin's popularity. which he will want to preserve, and the nationalistic patriotism that still exists as a result of WWII occupation and subsequent human sacrifice. I too lived in Moscow for a short time ( not Hotel International or Hotel Nationale ) during period of Detente and know how Russians can hunkerdown in the face or adversity. Question I have is how the young generation would react to adversity.
Looks like an opportunity to buy some RUB
for them to suck up this financial attack, they must have something really HUGE in the works for the cabal. Everyone is getting mowed down right now, but who will be mortally wounded without the possibility of recovery? Time will tell.
time to buy rubles
I thought that the Russian Ruble was the strongest currency since the country had increased gold reserves to such a high level.
It looks like that Russian owned gold is being treated the same as the gold that people hold here who did that "back up the truck" move.
russian corporate debt is higher than russia's foreign currencies and gold reserves all together
russia should not halt the trade but outright DEFAULT on foreign obligations at once blaming western sanctions as a primary cause
The US vs Russia conflict is all about proving the US dollar dominance. The US is running scared that non-dollar initiatives by the BRIC nations (primarily led by Putin) will end the dollar hegemony in the world. This would be near fatal to the US.
I expect this conflict to go much further. Putin will next put troops in eastern Ukraine. This will put the US on high alert and perhaps counter with US troops in western Ukraine; don't know.
I do know that Putin will not back down. I believe he is prepared to continue to challenge US dominance as he and many other countries are fed up with our spoiled ways.
Ultimately, if the Russian economy collapses, it will be stronger for it over time. The US on the otherhand would be totally screwed; there is little resourcefulness left in this country.
There is no US-Russia conflict. All that is happening is one little man who decided that he can change the international law. Now he is getting the bill for it.
How can you believe that?
Congress and Senate are just as much responsible...
.
Clinton? Bush? Obama?
The bill is still being drawn.
As much as I appreciate Putin for standing up to the West, I have to say he has dropped the ball. I think soon the Russian people will realize that the recent successes of the Russian economy have not been due to the intelligence of Putin but mostly due to the higher energy prices. The bloom will come off.
Putin should have seized the opportunity of the higher energy prices to make Hay, and restructure the Russian economy, cracked down on the corruption that has stifled innovation and investment in industries other than energy. It looks like he is doing this now but it is too late, any meaningful reform will take years.
http://russia-insider.com/en/2014/12/13/1709
Oil accounts for less than 20% of Russias GDP. Compare it to the 90's. There actually has been change. Usual ignorance from people: "i dont see made in Russia here" is false example of trying to say Russian produces nothing. I can tell you from experience, out in eastern europe, Russia produces most. Just not sold out west.
Oil and gas account for 2/3 of Russia's export revenues...
It might help you to read the link and the link that it quotes.
But for government revenue, sure. But government budget is in rubles, what they are gaining ends up in more rubles. Hence budget surplus.
It was 26% when oil was $110. Which is huge. Also the exports are 66% energy based.
http://atlas.media.mit.edu/profile/country/rus/
Russia is extremely relient on energy to survive and maintain an account balance.
During these last few years of surplus, Putin should have courted all those industries that they import to set up shop (satalite industrial plants) in Russia. The 100 billion that they squandered to prop up the currency could have been spent on enticing these importers to locate and produce in Russia. But nobody wants to put capital where there is so much risk due to corruption and lack of rule of law, so this does not happen and they just export there.
http://www.awarablogs.com/putin-midterm-interim-results/
Here you go. Good reading material.
Not much Putin can actually do. He needs the oligarchs support but these guys are strongarm men, not industrialists. They get by on Govt. contracts and subsidies, not innovative consumer goods production to market domestically and for export.
If Putin cut subsidies to spur economic growth by forcing these industrials to find other sources of income, he could bet on a coup cooking under his feet in 48 hours.
Putin needs these guys but he needs them earning, not collecting.
Rostec is getting state subsidies for developers of tools (tooling plants) and small businesses (2-3 yr tax exemption). Today Putin told state companies to further produce import substitution and management (reduce overhead costs). He done this only once before in 2001 when he first became president. And jt was a different speach about how he is in charge and changes were gonna be made.
Meanwhile
India's gold imports surge 6-fold :Gold imports stood at USD 5.61 billion in November this year as against USD 835.83 million in the corresponding month in 2013,
http://www.business-standard.com/article/pti-stories/trade-deficit-widen...
This might be the 'Archduke hitting the deck' moment where the inevitable stupidity that will ensue is obvious but unstoppable.
Ideological agendas overcome common sense and the die is cast.
Clearly the western banks are waging a speculative attack on Russia's currency.
Many people are panicking over nothing. People with experience in Russia (myself) can give you far better details. While foreing production in Russia is dropping, domestic production (production of goods by Russian companies) have increased. So production balanced out (partially dipped in nov). There is initiative to remove foreign currency listings in markets in Russia. That said, costs are going up but not at rates one would expect with a currency that dropped as much as it did in 1 year. They have also had another budget surplus too. People like stopeuro and alike are far from being right (or intelligent by any means) and there are no queues or anything in markets. Prices of meat has gone up in some areas and harder to get good cuts in aome other places, but things barely changed. What is being said is that now cost of goods in other countries (specifically from states and eu) are no longer viable due to being over priced. But what dumbass stopeuro fails to figure out, is that it was Putin who sanctioned the food market in EU and next year, the orders from Brazil, Africa and alike will come in, and prices will start to even out. No one is starving. Actually on the contrary, meat, dairy and vegetable market has boomed in Russia (in terms of production) while fish has dropped but slowly coming back. Since Russia is major metal producer as well as energy producer, they have little to fear. What the west will fear is if Russia decides to increase export tarrifs on them for metals and gas/oil. This will mean they will have to cut back productions themselves. Boeing, lockheed, ect all use Russian Titanium.