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"Ruble Trading To Resume"
As already noted, yesterday one after another FX broker scrambled to disconnected the Russian currency from the system due to "western banks stopping quoting pricing" and as a result of epic volatility (and as everyone knows, brokers prefer to only trade those pairs where they know with near certainty they can pick 1 pip or so from every trade which is why they prefer stability and orderly markets). However, in the aftermath of today's announcement that the Russia finance ministry will join the central bank in selling reserves, the RUB has found a bid. And sure enough, here come the FX brokers barging back, advising that Ruble trading is set to resume this afternoon.
So enjoy the return of the USDRUB pair... at least until another burst of buying (i.e., RUB shorting) on any news out of Russian - or for whatever reason - sends risk assets, and crude, tumbling all over again at which point the Ruble will once again be halted from retail participation.
Rinse. Repeat.
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so boyz and algoz, the RUB is back. but don't punch too hard, or you'll be left again with the NOK on which to spend your excess (discounted) energy
Yes please....maybe it will teach my gold some culture.
Hedge funds will be working hard for money these past and next few days.
Pretty shocking how weak Putin turned out to be. He got his ass kicked by Obama and now has to come groveling to the USA for help. What a loser. Putin couldn't even mount a response. He just stood there and and froze while the USA beat his face in.
way too soon to say crap like this , the man is playing chess, Obozo and the tribe are playing checkers
playing checkers: quick short result, nothing long term
playing chess: long term win
Translation: Some US banker thought that they were going to lose money, then got to the point where he figured that he might be able to make money with another strategy. Or got scared because shutting Russia out of FX markets is fucking dumb.
Not just Chess, 3-D Chess...
They have a saying over there..."Count chicks by fall time" which I imagine has to do with the hatching season and translates to "don't county your chickens till they hatch"
....froze because he can't fathom the stupidity of the USSA....
But anouncing a gold backed ruble to the world should do the trick.
Then who's face will be beat in........?
@fight: You've the mind of a child. Why isn't it you "my country right or wrong" types getting their faces kicked in by cops?
I swear, life's unfair..........
Of course, it all depends on how much more "Not-for-profit" RUB trading we see again?
Russia has no Balance of Payments problems as it runs a trade surplus. It also has huge natural resources and even with the collapse in crude, NatGas (For Europe) had remained firm because it is a captive market. So it's energy income is in Forex and its production costs are in RUB. That is manageable and that is NOT the basis for a "Currency crisis".
Russia has only 20% Debt to GDP and substantial reserves in both Fx and Gold. So there is no LOGICAL reason for this RUB collapse.Unlike some other countries? This too shall pass and Russia will emerge stronger than ever, especially if all the foreign capital has departed by then. Russia is perfectly capable of financing its own capex.
When ready, and the time is not right now because The USG would intensify raids, Russia will back its currency with Gold by fixing its level against Gold and demanding Energy payments in either Gold or Rubles. It could also, if it has had enough, just buy Gold long contracts on Comex and LBMA then stand for delivery. Playing the same "Not-for-profit" game. Let's see what would happen then?
Excellent post, but I do have one quibble ...
Um, the rules would change? That is precisely what is screwed up with our markets anymore; the insiders never lose because even when they do they just change the rules so they win.
I don't think Russia is going to gain much of anything by directly butting heads with the US, which is what the US is trying to achieve. Consider all the opportunities to but heads over the past few years and Russia has managed to defuse the situations over and over. This actually puts the US in a worse position because our douchebag leaders need another war to cover the financial collapse they are creating ... and they are running out of time.
Russia will simply have to build trade and enterprise and decouple if they genuinely want to prosper. That leaves China as the other potential trading partner (India is just too damn poor - they have problems building electricity production and selling it at a profit), which will take time and has it's own set of griefs.
Regards,
Cooter
Yes, good points all. But if Russia were to force the issue on Comex and LBMA, yes, they could change the rules regarding Cash settlement instead of Physical delivery, but that would still be understood by the "Markets" as a default, which would finish the Paper markets and cause total havoc in all "Markets", especially derivatives of all kinds.
Maybe Russia having SS-18's pointed at 55 Water Street, NY, NY aka the FXCM headquarters helped get their mind right.
American should stop the Cold War they are creating with Russia.
https://www.youtube.com/watch?v=LQfwMKAeCPI
More rubble than ruble.
This should be fun. Yesterdays range vs. the dollar 58-89/1.
Orderly markets;) and we know who gives the orders...
Vegas under/over line is 4 hours before the next halt.
Tranlated: Yesterdays beat down was insufficient
Hmmm, also noted the time to go back up is right when they release the FOMC minutes? Okie dokie
Given the USSA attack on the Russian economy and the inevitable response, would now be a good time to bug out?
Do you really want to survive in the aftermath of Thermonuclear War?
Nuclear Winters are not appealing to the pallette as...
THERE WILL BE NOTHING TO FUCKING EAT. So you linger on suffering for another six months...a year...maybe two?
No thanks. I am heading toward Ground Zero. I am not that damned masochistic.
There will be no nukes... perhaps total destructions but like you just said there would be nothing to eat. These tyrants still need peasants to lord over and they still have to eat, drink, and breath what this planet produces.
All this talk of nukes is the ZHers doom dream... it's never going to happen and the Cold War already proved it. Total destruction via conventional bombing... sure... but these people aren't going to irradiate the earth just to die themselves.
Thanks for the pep talk.
Let's do this thing.
I can't wait for the post-Armageddon Mad Max sex.
There is no guarantee humanity will survive a full-blown nuclear exchange. If it ever comes down to it, I think it is best to take the Chevy Chase route.
You uh...wanna go out with a bang?
FYI, nuclear winters are far from a certainty. The idea is that fires from the aftermath, not the mushroom cloud itself, will put enough soot into the upper atmosphere to reduce solar flux to the ground. Have the spate of very large forest fires that we've had during the past few years had any noticeable effect on climate? If no, then the idea of nuclear winter is bogus.
I could be wrong, but I believe your second sentence might be incorrect.
My understanding is that nukes, like volcanoes, inject particles — from the explosions, not the resulting fires — much higher into the atmosphere — i.e. into the upper atmosphere — than forest fires.
Once that high, they remain for a much longer period than particles from forest fires that only reach lower elevations.
There's also the question of the volume of particles produced at once by total nuclear war versus whatever is produced on an annual basis by forest fires.
So the Currency Vigilanties lie in wait as sharks while the School of Fish approaches. It will be a blood feast.
Just in time for the FOMC !
So the big boys have successfully hedged their bets they were lopsided on?
Good to know.
pods
Exactly.
I don't participate in the "markets' anymore.Still watch them from force of habit ever since
I bought my first stawk,Burmah oil,a long, long time ago.
How do you guys sleep at night, knowing they will change the rules on you on a whim ?
Ah, Burmah old boy. Dennis would be proud..
place your bets place your bets.....
Capital control for the CBR...no other choice left, otherwise a Moscow's style Maidan will be the next step!
Tyler:
I think Mr. Putin is having a press conference tomorrow. Is there a way ZH could stream it live? I suspect it will move markets.
thanks and Happy holidays!
Maybe a gold backed ruble or dumping of U.S treasuries will be the subject of the conference
Aka: "dealing desk needs to offload its horrendous position of RUB inventory"
That's some major timing boys... right as the FOMC is released... sure that's not intentional...
With a surprise interest rate hike.
Its a matter of survival of the GRC for the FedRes,
Anything is possible at this point.
it would be surprising, indeed
All is fair in love and war.
Moar woar.
the big boys had their fun yesturday
fuck the rigged market and thier worthless Finance/economy products
Boys and their toys.....
Germans papers report: German politicians offer assistance to Russia. If that is true, I am really glad. The Germans should never forget (and the Americans as well), that the German besiege of Leningrad during WW2 resulted in 1 million starved inhabitants there alone!
Fuck Brzezinski and Wolfowitz!
Germans papers report: German politicians offer assistance to Russia. If that is true, I am really glad. The Germans should never forget (and the Americans as well), that the German besiege of Leningrad during WW2 resulted in 1 million starved inhabitants there alone!
Fuck Brzezinski and Wolfowitz!
Without Russian, Hitler would won the war against US, the dirty work was done by the Soviet, then USA finished an already heavily weakened Hitler on the Eastern front...
VERY TRUE !
Russia was Hitler's fatal mistake
If he had kept the aliance with Stal we would be speaking German (or Russian) today, and I would not be here typing because I am an impure latinoe (of the european type though)
what is an "impure latinoe"?
Don't ever wish Hitler would have succeeded. Or Stalin. Both brutal dictators...
Don't ever wish Hitler would have succeeded. Or Stalin. Both brutal dictators...
oh, historic speculation... without Russia, ze Germanz would have won WWI, and so Hitler would have been a postcard painter for his whole life
on the other side, it was the Kaiser's government that sent Lenin to Russia. but then again, it was the Berlin-Baghdad railway that really incensed the Brits
but yes, Russians left dozens of millions of dead soldiers to prove your point that they bore the brunt of WWII
25 million dead Russians agree.....
I have just about fucking had it with this "German hopium" bullshit!
It is time to put this "Noble German" meme in its grave.
German politicians might preen, posture, and pander to their constituents sentiments, but the EU and the German government brazenly spout the lies and propaganda. The German Marshall Fund, along with the usual suspects is a financial backer of Arseny "Arsenic" Yatsenyuk's "foundation". Germany is in absolute lockstep with the harebrained Cold War 2.0 being rolled out. Germany played a big role in the Ukraine coup, and has taken a most cowardly position on everything related to it.
After 10 years of NSA spying, the US owns all of Merkel's skeletons, all of Germany's gold, and knows exactly where all the bodies are buried. The pusillanimous Germans are perfectly cool with the NSA spying on their Chancellor, and have dropped the whole thing, because the NSA did not incriminate themselves by volunteering the evidence. That is how lame Merkel and the Germans are. The German government wanted the US to sign a no-spy deal with Germany, but the US promptly punked them out, refusing everything, and Susan Rice told Merkel to shut her trap about it.
When Germany, who has the second largest gold stash in the world, tried to get its gold back from the US, they were given a minuscule, symbolic amount and told to shut the fuck up about it. They were not even allowed to inspect, much less audit their own gold!
Germany is currently building and paying for the Israeli navy's ships. Of course, they have a history of giving Israel expensive and advanced nuclear launch capable submarines for free. Israel uses these warships to protect herself against those evil terrorists, then has the chutzpah to claim all the credit for their navy's "success".
I could go on, but I think the point is made. Frau Merkel, and Germany as a whole, is completely captured and obedient to her masters. Anybody who believes the "German people" think otherwise should keep this in mind.
There are a lot of people who would like to see Germany take a principled stand, and they are desperately seek for something (anything!) that will confirm their bias.
Unfortunately, these persons are just smokin' and tokin' on the hopium.
Puff, puff, pass...
P.S. As an interesting sidenote, Ukraine's American-born, .gov-employed agent, er... Finance Minister, worked for at least three of those "financial backers" of the "Arsenic" Foundation.
USDRUB is available on my charts but with a 6.6 million $ margin per lot instead of 2000$ yesterday...
In short: the pair is available but untradable.
Probably in other platforms, the margin is a 5:1 if not lower !
The rate is slightly appreciating 64/1 on my charts just now, look like that George Soros can't short at 50X leverage to destroy the currency anymore.
The US with a public debt of 18 TRILLION is trying to sink Russian economy with a negligeble public debt...
This situation makes me want to cry myself laughing
lol
LMAO
http://usawatchdog.com/is-ruble-collapse-act-of-war-paul-craig-roberts/
Roberts has this chuckle that amuses me every time he refers to crimnal activity,
Darth Soros thought this one would be a piece of cake!
The interconnected complexities of international financial market(s) and what happens when major party(s) attempt to control and screw with one another.
Can't live with each other... Can't live without each other...
Perhaps things are more complicated since Soros' rogue younger years.
Just checked - USDRUB still not available on FXCM.
OGZPY, ROSN.ME, and LUKOF looking a bit oversold. Buy when there's blood in the streets?
Just checked - USDRUB still not available on FXCM.
Give it some more time.
Kerry and Fischer are still holding out the carrot of threatening "diplomacy" hoping Putin will pay more of Ukraine's debt which comes in the form of FX staying intact while at the other end lethal aid to Ukraine will be the "stick" if Russia doesn't capitulate!
Can't wait to see Act III when all of this blows up in Darth Soros' face!
Russia’s 20 richest billionaires lose $10 billion this week.
http://itar-tass.com/en/economy/767555