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Russia Prepares For GDP Surge As Consumers Scramble To Spend Their Plunging Rubles
In the most ironic twist of all amid the "currency crisis" enveloping Russia, we suspect the world's central bankers will be looking on jealously as The CBR manages to achieve precisely what The BoJ and The Fed are desperate to achieve. In raising inflation expectations, The FT reports, Russians are hurriedly turning their depreciating Rubles into jewelry, furniture, cars, and apartments as the currency's collapse prompts a shopping spree that will likely lead to a surge in GDP. As one anxious shopper noted, "none of us know what’s happening. We’re all worried that the currency will keep falling," and so "it’s time to buy furniture!" And sure enough, shopping centers are currently experiencing a spectacular rush.
Russians hurried to change their savings and pensions into dollars and euros while also stocking up on furniture and jewellery as the rouble’s collapse accelerated.
Their mounting concern was reflected on Tuesday morning in the red lights of the currency exchange booths that dot the city, which were ticking over to show ever weaker rouble rates.
...
“I took out some of my pension and I want to change it into dollars,” said Galina, a retiree, who declined to give her surname. “None of us know what’s happening. We’re all worried that the currency will keep falling.”
The dramatic collapse in the rouble in recent days has not triggered outright panic, but it has prompted a rush to change currency and to stock up on durable goods such as furniture, cars and jewellery before they become even more expensive.
...
"I think the rouble will carry on falling until the end of the year,” she said. “It’s time to buy furniture!”
Indeed, shoppers reported enormous queues even at 2am in Ikea on Monday night as people rushed to stock up before the rouble plunge triggered price rises. The Swedish furniture company had said it would be raising prices from Thursday.
...
"People who didn’t manage to exchange their money at 35 roubles or 40 roubles to the dollar have been buying up high-end goods, cars and apartments because a massive repricing hasn’t happened yet,” said Vyacheslav Trapeznikov, acting director of the Urals Builders’ Guild, in Yekaterinburg.
Car sales in Russia rose in November from the previous month — in spite of a slowing economy — and December is “rather promising”, according to the Association of European Businesses in Russia trade group. “Retail demand has been extraordinary in recent weeks,” said Joerg Schreiber of the AEB.
...
“People are trying to spend their last roubles and buy up things that haven’t been priced, but this trend has an expiration date,” Mr Trapeznikov said.
Russians are lining up at currency exchange centers to swap their increasingly worthless Rubles for Dollars...
And as Germany's N-TV also notes, they are spending that money...
Shopping centers are currently experiencing a spectacular rush. The most recent example is the Swedish furniture chain Ikea, prior to their department stores in the past few days with long queues. Several hours had to wait for the customers before they could enter.
The reason is that Ikea had announced in early December to try to raise prices in the near future because of the decline of the ruble. While Ikea calmed after its customers that prices would continue to meet the published list prices in the summer. At the same time, the Group achieves in Russia each year well over a billion euros in sales, that its operations were dependent on external factors explained.
...
"At this point, Russia differs from industrialized countries to save where people start when a crisis begins," says the economist Igor Nikolayev. "For us, this is accompanied by a strong degradation of money and the people spend more, which relaxes the situation for some time," adds the analyst of consulting company FBK.
...
"People have rushed to buy expensive goods such as televisions, computers, laptops, to save their rubles, which lose value dramatically," says Maria Wakatowa of the consulting firm Watcom, the observed trade.
* * *
Simply put - it's all about inflation expectations. And unlike The Fed or The BoJ, who keep trying to jawbone higher expectations into their citizens' minds, the CBR has achieved it and with it - a spending spree before things get more expensive and implicitly a surge in GDP. Ofcourse, however, the spending surge can only be short-term and will stop as soon as there are no more Rubles to spend.
* * *
Finally - this seemed to sum it all up nicely...
Wonder if Japanese newspapers ran headlines like this in the 1990s. pic.twitter.com/njAgn6JY7j
— Peter Thal Larsen (@peter_tl) December 16, 2014
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Yellen just howled in ecstasy.
Where is the rioting?? No looting?? Where are the fires???
So, their currency is collapsing, and they are ready to "buy" assets, all the while, patiently standing in line, with no businesses burning...
I admire the Russians. Americans are now pathetic. Being destroyed by the tribe.
Russian people need to purchase bulli's. Physical delivery, of course.
Y'all hear that, Janet?
You rush out to buy gold in the open market (for real physical delivery into Your Grubby Little Hands fbo Goldman and JPM et al, fuckers) then everybody'll rush out to spend their depreciating $US and "ici violas!" you'll have your desired GDP boost.
They should all go out and buy vehicles. That's a hard asset that maintains value, much like real estate. /stoopid
Seriously people. Gold and silver.
But... but... 17%!
I thought this crisis was all part of chess master Putin's plan to destroy the US dollar? Or is this the new broken window fallacy, the BROKEN CURRENCY FALLACY?
Weimar Russia?
BTFD..... at IKEA
This surge in spending of a currency that the public is losing confidence in in mass is exactly how hyperinflation death spirals start. Hyperinflation is a psychological panic that sends the velocity of money soaring as everyone tries to trade it for real stuff as quickly as possible. This could get ugly for Russia in a hurry
As one anxious shopper noted, "none of us know what’s happening. We’re all worried that the currency will keep falling,"
Should have bought gold months ago, honey
As I have posted many times before, the average joe or in this case the average Ivan, doesn't give a shit about gold and silver. They all flocked to cash and durable goods, during a "crisis".
Yeah, as usual I will get a bunch of downvotes from the metalbugs, but seriously, what will it take for you guys to get it that shiny trinkets aren't that important in a crisis? Even if you are a big bear, gold and silver are still a joke.
Look at what sheeple flock to in times of perceived crises, and hedge accordingly!
That's right, because the bid/ask spreads on furniture, cars and jewellery make the perfect currency hedge.
Is it any surprise that the average Russian - after generations of being brainwashed with Western notions like communism - should be clueless?
And yet here you are, at Zerohedge, and you're as dumb as they are.
At some point I think that furniture will be be broken up and used for firewood. Crash Course Capitalism.
Miffed
It would appear that there is one troll that may disagree with you. Keep in mind, they get paid with fiat and free porn access 24/7
You went full-retard.
I'll just leave this here
http://www.goldpriceoz.com/gold-price-russia/
That picture in the London Evening Standard is amazing.
I didn't even know you could buy an Indian guy in a green sportcoat. What do they go for nowdays?
that was funny....
and i think they go for about tree-fiddy...
Now THAT is funny! By the way, are you a GBU-24 dropper?
We preferred to think of it as express delivery back in the day.
Nah, Ikea furniture is much more durable than gold and silver.
Russians are geniuses.
The narrator (played by Edward Norton) in Fight Club totally agrees and endorses that statement.
Just do not forget what happened to Edward Norton when he crossed the ruskies in the Italian job.
Yah, some FEDtard needs to give the Russians a lecture on how Gold isn't money......however, you should have bought a LOT of it.
This is what perplexes me. This situation plays out around the world over and over.
Some wise sage may even say "you should keep 10% of your assets in PMs" Which is fine. But when the SHTF like the last week in Russia, like what will eventually happen in Japan. You want 100% of your assets in somthing that has widespread international value. oil is my favorite and if I could store a thousand barrels of unleaded and diesel in my backyard I would....because I know I'll use....but I can't. So, now there's millions of russians who wish they had been stackers.
Totally agree. In today's "market", ruled by fraud and corruption, putting 10 or 20% of your wealth into real assets is too little. And as we see now, it's too late to start stacking today in Russia.
In short, Russia(ns) has seen far worse during periods of far worse account balance ratios ~ it's overhyped, the market is very short sighted to say the least, and Putin's Russia will be fine. Crisis is opportunity.
"Russian people need to purchase bulli's. Physical delivery, of course."
They act no worse than the CBR. Neither is using Gold as a hedge.
If Russia doesn't have the brains & balls to back the RUB with 20% gold+platinum, then they're not as clever at chess, poker or economics as many peeps here give them credit for. Even if it takes a bit more time to have their RIFT up and running, they can and should still calm the BRIC/EM markets by making the ANNOUNCEMENT.
Either that, or other Big Players (Beijing! or Redhshields?) are co-stirring the Russian pot.
No laziness. ...everyone else is just doing what they do.
you do realize that Russians have a living memory of currency collapses, among other things, and a longer memory of far worse. they never tended to the hysterical, anyway
Krugman is on phone with Japanese PM Abe & BOJ's Kuroda, telling them to start making tactical moves to annex SE Asian nations to REALLY devalue yen and boost consumption via "pull forward" panic.
When will the Drubocrats go after - *Gasp!* - the HOARDERS?
poor Galina the retiree that wants to exchange her Rubles to Dollars would normally be among the worst hit, together with her age cohort. there might be lots of blameless victims of this, for Russian history, minor disaster
nevertheless, the Russian People was never as happy or prosperous or confident as in the last years... since practically ever. strange, but true
and Galina the retiree is among the conservative supporters of Putin, and I'm confident state pensions will not be in any way cut, which with a more food-autarkic Russia, with plenty of domestic energy...
so all in all, don't expect riots in front of the Cremlin. perhaps some demonstration in front of the CBR, Russia's Central Bank
You miss the forest for the trees, Ghordius.
A currency collapse collapses ALL STRATEGIC INTERNATIONAL developments for Russia -- which includes (but is not limited to): Oil+Gas pipelines, Arms, BRICS+EM Trade.
Rather than Russia being in the lead, in charge, they will be totally on Defense, while the US (Fed, CIA, DOD, NSA, Wall St) are on a global rampage of getting real assets and collecting on Debts.
It's the grand global game of RISK being played out, and although I'm rooting for them and wish the Underdog well against the Global Bully, Russia MUST up its game in a MAJOR way, or be left in the dust. They NEED to kick Obama and Wall St right where it hurts, and they have yet to do this.
The clock is ticking but the scoreboard is not in Russia's favor. IMO.
Patience. The whole world will burn soon enough. These are the economic conditions that allow madmen to rise power....just wait for the empty store shelves, and the people to start burning their paper fiatscos to keep warm.
This is the increase in money velocity that causes hyperinflation. Money velocity not money supply is the difference between deflation inflation and hyperinflation.
It’s an economic hot potato and it needs the right conditions, we will have those conditions soon enough. Japan is the next major to experience it though.
MV=Py
Y'all got it! Here's a prime, pure and unadulterated example of a behavioral shift in the public's liquidity and spending preferences that boosts V and this GDP and or P. And you can betechur ass it's gonna do both in this case. Stores get cleaned out, orders back filled, people bidding for shit on shelves. Ba Boom! Instant GDP boost
Yet no production to refill the stores, and there in lies the economic destruction caused by hyperinflation.
How are Americans so narrow minded to not pay attention to this case study. I prefer Japan though, lets watch that debacle.
Inflation is a monetary process, hyperinflation is a psychological event.
Agreed and the prior is gradual where the latter can, obviously, happen overnight.
Just watch the RHI (Russian Hoooker Index). Back on the 8th it already cost twice as much to get some. If you need a leading indicator look no further.
Kudlow just came all over his green shoots!
Fuck the stupid ass Russians. Always bowing down to the strong man.
Enjoy your 50,000 ruble bread. Vodka will still be cheap though.
Why so serious moshe? Shake your ass and sing hallelujah.......... hallelujah
JMBTRN
Not as cheap as your pathetic comments.
Jumbotron hails from a long line of ZIOKIKES.
Nope....just an anarchist who doesn't give two shits and a holler about America or Russia. Or neo-cons or neo-libs. Or Russian strong men ruding ponies showing off bitch tits or black faggot presidents.
Or Ras-putin cock sucking Zerotards
..just an Jewish anarchist(wannabe?)...blah blah blah. Don't forget the most important word.
KIKE!
http://www.cnn.com/2013/04/07/health/new-york-neonatal-herpes/
http://abcnews.go.com/Health/baby-dies-herpes-virus-ritual-circumcision-...
Seriously dude... all the intelligent stuff you post and then this crap? Just because somebody doesn't hop onboard the Russophile train doesn't make them a Jew. Should have just called him an asshole and moved on. Thought you were smarter than that.
We can't be blaming all our troubles on the Zionist and looking to Russia to save us. That is incredibly lazy. I swear with some of you morons if a bird poops on your head you would look around for a Jew to blame and a Russian to beat him up.
Yes Zionism is a pain in the ass, but who lets them get away with it? There is the real problem.
You can always tell the pud pulling pussies on this site when they cry out BOOGYMAN (JOOS)
It's like the blacks and hispanics blaming whitey or Muzzies blaming the West.
Here's a hint you whiny little pussies. If you don't like the situation it's your own damn fault for wallowing in the shit blaming someone else. Get your own shit together or shut the fuck up.
If it means moving....then move. If it means leaving the country.....leave the country. If it means picking up the gun like our forefathers.....then grow some balls and pick up the gun.
But blaming Jews??? If the Russians can be brought down by a hand full of Jews then the Russians don't deserve to live. It' called evolutuon bitchezz.
Russians are just trying to get by like the rest of us, but what a wonderful thing for the elite that we can be made to hate them and them us. Just like it's a wonderful thing that they can convince people that Jews have a monopoly on corruption.
I don't mind placing blame where it is due, and Zionist have been behind or complicit in much of the shit going on today, but you're delusional if you don't think that it was was a team effort.
Attributing all the world's misfortune and problems to the Jews is the same thing as a peasant from the dark ages making the sign of the cross and looking around for a witch everytime something bad happens to them. Not exactly a dazzling display of higher reasoning capability.
Irving Kristol??........is that you?
you mean "Gertrude Himmelfarb, is that you?"
Gloating Jumbotron is glad to see the his chosen country's enemies' main supporter - Russia - take a hit.
Can't wait for Eretz Israel to rule MENA, can you? Think of the glory of it! A good mensch could sit down and eat a salmon bagel and not have his view poluted by any goyim! How lovely!
You think that band of racists will still running the US and be causing all this trouble in 100 years?
"A good mensch"
Don't be redundant, dude.
You think there's somebody in life called a 'bad mensch'? Or an 'average mensch?'
Any more of this, and it's back to Hebrew School with you and sitting on the rabbi's lap.
Kosher jumbo weinie,
How many shekels they pay you?
If you see a wal mart, don't bother spending your rubles. Just loot the fucker like your USSA brothers.
Everybody knows shit's fucked
https://www.youtube.com/watch?v=NWxISwEBU0U
But remember what happened to Old Yellen at the end of the movie
buy gold? no so much.. probably buy bread .. water.. fuel.. and bullets.
http://hedgeaccordingly.com/2014/12/russian-ruble-suffers-steepest-drop-...
The time to buy gold for the Russians was over the summer or any time during the last three years when gold and dollars for that matter were going down in Rubles.
I actually saw cuts from the same person on Yahoo Finance, in one clip he was saying gold was a sell and in another discussing a Russian investor that made the “right call” in buying euros in the summer. Gold would have protected him even more!!! Fools.
As I said the time to buy gold or silver has passed for the russians. If I were them I would be buying food and fuel too, but for us its not to late. Who cares if we don't have something like that for 10 or 20 years or even if our PM's protect our kids. Its like a gun its better to have it and not need it.
Anyone else seeing the irony here? The one country this site spends at least a third of its articles cheerleading for, has the hyperinflation that they have been predicting here for almost what? 5-6 years?...and the best response is that it boosts GDP? Yes zh hyperinflation boost GDP, right before it swan dives off of a cliff. Don't sugar coat it, just call it what it is.
I do understand where you are coming from, and don't understand the Ruski loving around here. That said what I see from all this is yet another fiat currency falling just like the yen. I don't take away from it that the Dollar is superior. I don't think Americans are smarter then the Japanese or Russians, more experienced and skilled but that won't trump economic laws of over indebted economies.
Just because the Russians are falling don't let that make you think the US is rising, that's an relitivity illusion.
Hell I've been waiting for it to happen in the US for years, that's why this is so suprising.
Just look at it as a case study as to how people react in these types of events. Unfortuntly it will be much worse here. Russians know how to deal wiht economic collapse, our people don't. These events are examples of when governments lose control. It will happen here, just be thankful you have more time to prepare.
"Russians know how to deal with economic collapse, our people don't."
They've had lots of practice.
It seems like you pick up my gist but I did mean the russian PEOPLE know how deal with economic collapse forced upon them by their GOVERNMENT. There that's better.
http://www.resilience.org/stories/2006-12-04/closing-collapse-gap-ussr-w...
Society’s Five Stages of Economic Collapse http://www.selfsufficientblog.com/2014/12/08/societys-five-stages-econom...Yeah, but someone else caused their currency collapse.
We hyperinflated some folks.
We only cheer for Putin and Russia to ass-fuck the Zionists. We know Putin is ex-KGB scum but he's swinging his big hairy balls at the NWO, so, yeah, I'm gonna pump my fist when I see him do it.
Yeah but we do have to be careful. I always got the feeling I should be very careful watching stuff like RT, you know its just a propaganda machine.
Russian citizens are doing the smart thing under the circumstances, but they will not knuckle under. They never do.
Easy.... easy....
Clearing the shelves of IKEA is smart? Sorry....I hate IKEA, but, that's my problem. it's a great place to buy things to assemble as long as you put value your own labor at something around $3.00 per/hour.
The Ruble is crashing and people are exchanging them for tangible items - what's not to get?
They're a day late and a ruble short.
one word IRONY
At least they won't trample others to death like US gorillas
They're only lining up for currency, not iPhones, Jesus, get your priorities straight. Overmarketed gadgets are the new fiat.
Here in the USSA I am more concerned about getting run over by a little rascal scooter with 400 lbs of fun in tow. It's going to get fugly once fat albert finds out he can't get his normal fix of crap food and ready to eat meals.
Hey, Hey, Hey!
Do they know it's Xmas time?
https://www.youtube.com/watch?v=bjQzJAKxTrE
Most of the BRICS are not Christian -- so they may not know it is Xmas time...
He he....by the way, which one was Pink?
No they don't.
Know why?
They are not Christians and would know XMAS from Mardi Gras.
Give them the food during Ramadam or whatever it is that they celebrate. Dinner, for example.
"As BRICS are in the processes to decouple economies from the Western neoliberal monetary monopoly, they could bring back the gold standard as a base for their transactions, which is much more steady than the paper money unstable financial bubbles. They are ready, because they are emerging economies with billions of potencial consumer tanks and can attract other countries too being victims of the international financial mafia, like Argentina and Greece."
http://failedevolution.blogspot.gr/2014/12/russias-moves-to-decouple-eco...
look up Group of 77 and then look at Members...its over 130 Nations....they're getting near time, and nothing mentioned in our news other than painting a picture that things are bad there ... makes people forget about here
Russia, China, India Central Banks Buying More Gold as Oil Prices DropMetal Miner - 12/15/2014 12:59:45 PM
Russia’s central bank bought more than 130 tons of gold ... Following two days of rising prices, the price of Chinese platinum bar dropped 0.4% to CNY 263.00 ($42.47) per gram. The price of US platinum bar held steady at $1,236 per ounce.
“It makes perfect sense politically for Russia to horde and accumulate more gold,” he says. “And equally importantly, it makes sense to advertise this to the population that … leaders are aware of the need to take care of the reserves and the like.”
==========================================
OK, I'll post this here...I was researching around Russia's Import/Export info and came across this. Though not a surpise to see the same Gang of thieves still allowed to get away with this..of course they had to Hammer the Platinum Group, since 80% comes from BRICS, Russis, S.Africa duo.
Can't you just picture them holding up the announcement until they got ALL their "bets" in, in Hiden Off-Shore, no-name accounts, once they know Exactly what Number the ball on the Roulette table will land on. I'll add a bit, but the whole article should be read:
http://mg.co.za/article/2014-12-04-standard-bank-cited-in-price-fix-claim/
Latest collusion scandal
This is the latest scandal about collusion linked to major financial institutions, such as the manipulation of the London interbank offered rate in the lead-up to the global financial crisis.
This year, it emerged the gold price had been manipulated by large banks, such as Barclays, which was fined $44-million.
Five major banks were also fined in November for rigging the foreign exchange rates.
Platinum and palladium fixings occur twice a day: at 9.45am and 2pm London time (the latter for the benefit of US trade) and the four defendants are the only participants. The fixings take the form of a simultaneous auction, at which each party, which has calculated its demand for the metals at every possible price, submits this to the chair. The price is then set so that the total demand from the parties perfectly matches the supply. The fixing window is for as long as it takes for the parties to agree on a price, but typically it is just a few minutes.
According to the complaint, before the fix took place, “the defendants and their co-conspirators were privy to, and shared confidential non-public information about client purchase and sale orders that allowed them to glean information about the direction of platinum and palladium prices and, consequently, gave them the ability to execute trades in physical platinum and palladium and platinum- and palladium-based financial products in advance of those movements”.
What is new is it’s not just Russia snapping up gold. China, India, and many other emerging economies have also been snapping up gold lately, says Ashish Bhatia, a director at the World Gold Council. He says this is a big sea change in the gold market. Bhatia says up until a few years ago, central banks were selling their gold assets.
Well the Russians won't be able to use their Rubles to buy gold and their oil isn't going to buy as much either. They'll have a tough time putting the same pressure on the gold market that they have in the past few months.
Lucky for them they've got a domestic source then, huh?
Very funny headline for the article, Tyler! Thanks for the humor!
Everyone's been laughing at Harvey Organ's $200 ag by Jan call, but the wheels are quickly falling off. Anything seems possible.
Anything.
Release the unicorns.
Cats and Dogs, living together...
Anything meaning $200 au as well.....
unicorns have sick humour.
Everybody needs to study this phenomenon closely, since it will be coming to a country near you sooner or later.
Simply ask the E.Z. to make all gas and oil payments in Rubles or the gas and oil will be shut off.
Start there, then negociate "free trade" agreement with China that is outside of the dollar.
Oh wait, nevermind...
Fuck this I'm going to buy some roubles.
Smart move Putin! He can do much better than Abe.
Is there any proof that Japan is not deliberately commiting suicide to protect it's only real ally?
Why do you treat abstractions as real people in order to ponder their "suicide?" This is much more like a homicide of the actual people living in Japan, and the perpetrator of the crime is named Rockefeller.
Oh, and there's no such thing as proving a negative.
you telling me russians do not have their credit cards maxed out yet ? WTF ?
You can thank the good ol us gov't for creating this mess
US dollar is healthiest horse in the glue factory.
And acting like a deranged colt before the inevitable blow to its head
AG and AU blow to the head that is
Proof Of Concept for Abenomics -- showing that the Bank of Japan still has NOT DONE ENOUGH! <wink, wink> And that the BofJ has to really crater the Yen in order to achieve GDP and wage growth!
Buy furniture. Cars and Apartments? W T F. This is insanity on steroids. Fucking furniture, electronics, cars, and apartment would be the last thing on my shopping list if I were in their situation. Can someone explain this to me...and how in the name of God this is something to cheer about as folks line up at a fucking IKEA. Jesus, please come quickly....We've now gone total fucking retard.
How is it possible to "save their rubles" by turning it into a worthless POS IKEA furniture and an Ipod. I'm ready to put a 9mm in my ear, cause the entire human fucking race has gone over the edge. Insane.
It is times like these that I can totally understand how greats like Hemingway and Hunter S. Thompson could take a shotgun blast to the head. I believe the world drives them to it more than their own demons do.
While I mostly agree with you, buying furniture is actualy a good idea. I noticed that most people change their furniture not because it is broken, but because of esthetic reasons.
If you don't care about that then buying something that will last you 20 year might be a good idea.
I hear IKEA is not the same, or has the same quality everywhere. it would not be the only brand to do so
I can think of no better way to ride out a hyperinflation than a new bed, many cases of vodka, and a lithe Russian devotchka.
Don't do it Db51, we will need you "crazy types" in the game. It is insane.
I just spent the last three days collecting a bunch of rocks. I will be offering them at an exchange of 90 rubles per rock.
put a rock on your brain then
motherf!%ckers
i bet Eugenia's inbox full
The critters have been trying to build a one-way road to city, and failing, for thousands of years, but they don’t care, because they are consumed by what happened yesterday. Economics is not a closed-system, zero-sum game, which is what the economic priests have always tried to prove, in their own self interest. The Euro was an oxymoron, problemsolution from the get-go, and Silicon Valley is just the latest in a very long line of Edisons, with the intent of increasing the efficiency of extortion as its foundation.
The State has been holding me up for $10k for 20 years, losing millions in taxes, on the assumption that labor is replaceable, printing inflation to get its tax base. The critters choose to believe that they are replaceable and therefore everyone else is. If you don’t show up to work, the economy not only loses your productivity, but, more importantly, your multiplier effect on others, which, as you can see, Big G is desperately trying to ignite, and failing.
I prefer to work union, but when I don’t I charge two to three times the union rate, and I short the short, eliminating future make-work. That is what the Fed is fighting, and it’s going to lose, like it always does, in the long run. It didn’t abandon the gold standard by choice. China is welcome to hoard gold, along with all the other critters chasing shiny objects, squatting on farmland, starving their own people.
Putin doesn’t care what the price of oil is; he wins either way. Labor doesn’t get up in the morning because the Fed prints paper, and the corporations are not buying back stock and increasing dividends, with middle class purchasing power, by accident. How many critters do you suppose found themselves on the wrong side of the oil bet, most not even knowing that they made the bet?
The world is always getting smaller, for those who choose to live in a bubble. If you bet, the empire always wins, surprise, so bet on yourself. The union elevator mechanics have a job because many, many more union elevator operators went on strike, and ta-da, where replaced, magic. Fewer people making relatively more paper is a problemsolution.
What they say about assumptions is true. If you want to get on a Boeing piloted by computers and kids with a joy stick who think that life is a game, you are welcome to do so. Germany is going to lose, again, and do something stupid, again. Don’t get involved in other people’s feudal marriages expecting a happy outcome. Containment is a stupid game, McNamara was a moron, and so are the captains of the US Navy, who bet on pensions like the rest of the herd.
Answer the questions, get out of the way, and pay the bill, because I have much better things to do than fix poor German technology so Italian bankers have a reason to exist. Italy doesn’t have all those elevators by accident.
Who puts money in the bank to give Trump the arbitrage he needs to exist, in a long line of masters and slaves, controlled by assumptions in a computer? How many times a day do you suppose Trump gets into an elevator?
You might want to learn something about unions, before you start talking about labor. Eat all the paper, break all the windows, and dig all the ditches you like. The global cities are sitting on centuries old infrastructure, which is a sunk cost, financed as economic activity, critters chasing their own tail, wondering why they are getting poorer.
How much acid is normal for you?
If I hadn't woke up to Zionism in the past year or so, I wouldn't understand why and what is happening now in Syria, the Ukraine and Russia, and with oil and the dollar.
The Zionist western banksters will make sure Greater Israel gets their Lebensraum in Syria, no matter how many Goy have to freeze or die.
An American, not US subject.
It is not a conspiracy, just organized plunder and murder.
If I hadn't woke up to Zionism in the past year or so
Waking up in bed to a severed horse head really drives their agenda home.
Though, waking up to head is rather nice.
An American, not US subject.
Why aren't they buying stawks then?
With a name like Liesman, it's got to be good.
I don't get it either.
They should buy stuff that will last through a war, not furniture. The Rouble's problem is not oil as much as it is the West's obvious intent to provoke WW3.
...because everyone loves those Russian-made automobiles. (sarc)
Actually, I'd like to get my hands on one of these:
http://www.army-technology.com/projects/kamaz-63969-typhoon-mrap-armoure...
Let me check.
The Lada Niva costs 350,000 roubles or $4,500. Now show me an SUV that you can buy for $4,500. The Wrangler starts at $25,000 or 6 times more.
Actually using 1944 as a guide, buying Gold Russian watches and cigarettes, and alcohol. The watches are swiss designs and are known as good, plus the gold is on your person at all times. Don't forget the gold bands... Not sure the nylons works in todays world, but hey?
My dad did that just ahead of the Germans and ther buddies...
Hookers and coke. Hookers and coke. Hookers and coke and vodka.
Meet the Russian Black Friday. Merry Xmas ho ho ho
It's all over now...
APPL halts online sales in Russia
Heading straight down the hyperinflationary bullet points...
Next will be stores raising prices on a daily basis because of demand. Then the government will try to implement price controls. Those controls will fail, especially for food, as prices rise daily, they will ignore the government to save their own ass.
Then the mad rush. That is how money turns to toilet paper in 6 months.
Japan is headed that way.
Eventually the US.
Interesting. It seems logical to conclude now that the collapse of oil prices, and producers are maintaining production, is part of the economic war on Russia. It now, given market behavior , seems also that speculation driving the Ruble into the dirt is also part of this economic war. The real economy and real state finances of Russia are quite sound, debt is under control, reserves are very high. In fact, the USA would envy the financial state of Russia, which does not live on debt, but on production. Todays FX action is illogical, it simply IS. So behind the curtain, of so called FX traders, lurks the giant in the room, The USA and it's Fiat Dollar System. I know that real currency traders did not beat the ruble down today after it's early climb, don't tell me this was normal market action, it was not, and everyone not a liar knows it was not. With these interest rates, with the size of Russian FX reserves, Gold, and good trade balance, there is no way the normal FX trader is throwing everything he has into ruble speculation. Come on, seriously expect me to believe that.
I was not sure, until todays action in ruble trade, that this was economic war carried on by the USA and it's infinite dollar supply. But it is clear after what happened today that the US has it's unlimited dollars out there working to drive the ruble into the dust. Until a couple days ago, I was not sure the oil price collapse was anything but a bubble bursting, and a drop to market rates. When it dropped again after OPEC met and decided to let oil fall and to all maintain production no matter the price, that rang some alarm bells. This was an epic switch in behavior. What happened inside the OPEC meetings was nothing short of a Saudi Coup, in which they basically took power over OPEC with it's client at it's back.
The USA made the choice to push it's clients to wage economic war on Russia, and to sacrifice Frackers and Tar Miners to do it. SOme will say "wait, that bullshit, the USA would never let the fracking miracle collapse. But what if fracking isn't a miracle after all, what if it's debt fueled drilling and fast depletion of good patchs made it vulnerable already. In that case, the pain is worth the gain.
Since this has all happened at warp speed. I suggest a market long term trend to lower oil prices was pushed off a cliff by the USA and Saudi and allies. The attack on the ruble, which should fall a bit on lower oil, is a route now and the USA has infinite FX power to drive it lower via it's many agents.
Putin was caught sleeping, trying to please the EU and to please Oligharchs and Liberals inside the Russia economic and financial system. He is getting fucked now, he is getting fucked "long time". The Russian Central Bank is more his enemy than his friend, they are part of the Neoliberal economic system and would just as soon surrender to the west and become one more American cotnrolled agent for the west.
Unless I see real evidence otherwise, I think oil and the ruble are down to 30% real market forces, and 70% US economic warfare taking place via the financial and market systems under domination of Washignton. At the very best it would be 50% - 50%, but I doubt it is that even.
Now it is up to Russia's population to decide which way they will jump. Believe it or not, the general mood of the people is important, if they turn on Putin he would be gone very quickly. And surrender would be total, if the people consider this to be war, then I predict they push Putin to fight back. Then it could get ugly! This is hard to know, even the Russians don't know which way they are going to go. So this is 50% -50%, Anti Putin coup could happen with pro USA liberals winning, [this is where the central bank stands by the way], or tradition could rear it's head and Putin would get the support from the people to go on a war economy foooting and fight back against king dollar. To do so would require at the least the aid of China, whi is getting pretty fed up with Obama's Pivot to Asia. SOme other BIRCKS might come onboard as well.
In any case, what you see today is the power that "King Dollar" gives the USA.
While I don't disagree that the source of the oil price slide could indeed have been started as economic warfare...
the rouble is falling off a cliff because the oil price slide is likely to crush the Russian economy. While their domestic debt to GDP ratio is not currently bad, what's being priced in is that their GDP is going to fall drastically in a very very very bad recession/depression. This would cause the GDP / debt ratio to go out of whack and very potentially default on domestic debt.
In the end though... what really matters is whether Russians really start believing the money will almost certainly be worth less or nothing in the future. If that becomes the mindset en masse... it doesn't matter what Russia's financial state is... it's game over.
If your a rich Russian you take your money out of Russia as fast as you can..that has been going on for years....they just dont trust themselves....so they have already traded out of the Ruble.....its the poor pensioner who lives on $15 a month..they will just starve more and freeze more...and there is many of them...
Russian population not jumping population like how high hands up American media stupid sheeps. Russian population remember bolshevik cold blood killings Romanov family. Putin chance at 80% or moar.
(edit...still deserve arrow up)
"I was not sure, until todays action in ruble trade, that this was economic war carried on by the USA and it's infinite dollar supply. But it is clear after what happened today that the US has it's unlimited dollars out there working to drive the ruble into the dust"
Russia has been elected the Lehman of the world. Syria and Crimea was just the visible tipping point.
As with Lehman, the voters had only altruistic motives in mind.
Yellen, Dudley and Evans are all taking notice.
See, you too can trigger spending by having a currency crisis, money printers.
Queen takes Bishop, check.
Russia's move.... They're pretty good at Chess
Isn't it ironic that just 13 years ago after what we were told was an attack from 19 hijackers with "box cutters" that started our plunge into the economic abyss we saw George W. Bush on just about every television channel that even though we were at war after the worst attack on America in 60 years we shouldn't worry too much about our new police state, urging us on to enjoy the "Great Outdoors" and to spend our money as the true sign of patriotism!!!
I thought to myself if we're going to be going to war why the fuck would anyone be thinking about a vacation? In the Fall of 2001 I was thinking "victory garden" and the President of the United States was telling me to "party"???!!!!
Juxtaposed to the lies that got the U.S. to loot, decimate torture and murder all the Countries we've been through in the last decade the Russians are doing just the opposite of what Americans would do. They are spending in order to save because they know and understand what they are facing!
My first thought was "Better go get some of that cheap gold."
My first thought was "Better go get some of that cheap gold."
Let's just say I wish I had had your wisdom all those years ago.
Everyone talks about the rouble, Ukraine's hryvnia gets to continue its plunge in private -25 to GBP (12 pre-Maidan) -http://www.xe.com/currencyconverter/convert/…
I was thinking about that this morning as well, and then I saw this WP story that somewhat surprised me. Interesting chart of oil, rubble, and hyrvnia all together.
http://www.washingtonpost.com/blogs/wonkblog/wp/2014/12/15/russias-economy-is-doomed-its-that-simple/
Russian Bitcoin users unaffected.
Take a step back. Maybe this is a set up where the USA causes major problems for Russia and the Ruble which makes Russia very mad and giving them a motive to attack on USA. False Flag Coming?
Maybe this is a set up where the USA causes major problems for Russia and the Ruble which makes Russia very mad and giving them a motive to attack on USA. False Flag Coming?
Let's see now... False Flags -Little Ones
Shoe bomber Check
Sears Tower Bombers Check
underwear bomber Check
Ft. Hood shootings Check
Wisconsin Sikh temple shootings Check
Aurora Check
Sandy Hook Check
Boston Marathon Check
MH-370 Check
MH-17 Check
James Foley, Steven Sottloff beheadings Check
Ebola outbreak Check
Sydney chocolate house hostage crisis Check
Racial discrimination protesting and riots as a means to distract divide from tightening NDAA martial law Check
False Flag(s) una grande scale?...
9/11 Check
7/7 Check
Mumbai bombings Check
Fukushima Check
Syria chemicak weapons attack by FSA blamed on Assad Check
Yeah I'd say that the probability is strong for another false flag given the short list of the ones that we know about since 9/11!
It appers ZH has Russia defeated. Remember, until the fat lady sings, the game is still on.
Just sayin...
I guess that while many here stack, or perhaps because they do, they picture a currency collapse as an "Armageddon Scenario". so they have difficulties picturing Russians taking this "in a stride"
Economic warfare and sanctions leads to hyperinflation. Looks like the same thing Iran went through. Maybe the chess master is a few moves behind.