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Ruble Rallies 34% After Biggest Russian Intervention In 5 Years
Since the Russian Ruble troughed at almost 80 RUB/USD, it has rallied an impressive 34% erasing most of the dramatic devaluation of December. However, as The CBR just announced, this 'strength' came at a price. Russia burned through $15.7 billion of reserves in the week ending Dec 19th - the biggest percentage weekly drop in reserves since Jan 2009, leaving reserves below $400 billion (still a significant amount) for the first time since Aug 2009. While CBR explained much of this will come back as repo trades mature, Vladimir Putin turned inward, blaming the government for "defects" in restructuring the economy.
The Ruble has soared in the last 2 weeks...
On the heels of the biggest intervention in almost 5 years...
- *RUSSIAN INTERNATIONAL RESERVES FALL $15.7B IN WEEK TO DEC. 19
- *RUSSIAN INTERNATIONAL RESERVES AT $398.9B
- *BANK OF RUSSIA SAYS DROP IN RESERVES MOSTLY DUE TO FX REPO
- *BANK OF RUSSIA: FUNDS USED IN FX REPO WILL RETURN TO RESERVES
- *RUSSIA RESERVES ALSO FELL ON REVALUATION AS USD GAINED VS EURO
But, as Sputnik news reports, it's not just external factors, Putin points his finger internally...
The difficulties in Russia’s economy are not only because of outside factors, including sanctions, but also because the government has not worked out some defects, Russian President Vladimir Putin said Thursday.
“The difficulties that we have run into carry not only an outside factor. They are not solely tied to some sorts of limitations of sanctions or limitations tied with the objective international environment, they are tied to our not working out defects that have accumulated over the years,” Putin said during a government meeting in Moscow.
Putin said the government has taken efforts in order to change the structure of the economy in order to give it a more innovative nature, but said the efforts were below the needed measures.
“Much has been done in this but the latest events have shown that this is insufficient,” Putin added.
Russia is currently facing an economic slowdown, with dramatic fluctuations seen recently in the value of the Russian ruble against the US dollar and the euro.
The weakening of the Russian national currency is attributed to low oil prices. The sale of oil accounts for a significant part of Russian budget revenues. Economic sanctions imposed on Moscow by the West in the wake of the Ukrainian crisis are also cited among the reasons for the economic slump.
During a December 18 televised press conference, the Russian president said that the country's economic situation could begin to improve in the first quarter of 2015, with Russia's economy recovering completely over the next few years.
* * *
Still it's not like $400 billion is going to disappear tomorrow - for those proclaiming Russia's imminent default. (CDS imply a mere 5% probability of default over the next year based on 25% recovery assumptions)
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Clearly, they are selling their gold... right?
The real question is, did George Soros still have a short position on the Russian ruble when the ruble rallied?
Probably. But then again, he probably got in while it was in the 30's or 40's.
Maybe, but many of his slavish followers likely got BBQ'ed on their shorts. Meanwhile, the Russian government sold expensive dollars for cheap roubles, buy low ...sell high.
That is the simple truth!
For those that missed it, someone was heavily shorting the Ruble not long ago and the CBR jacked rates to 17% (we Volkered some folks) at which point insiders had certain US exchanges force muppet positions closed under some BS pretense so they could cover said shorts without exploding a leveraged a-bomb (think Amanrath).
And then those Ruskies do exactly what LL said, LOL! I think this set goes to the Russians despite all the propaganda on the TV that implies otherwise. I bet the Chinese are wishing they played that hand!
Hopefully this kinetic financial warefare settles down a bit.
Regards,
Cooter
Just back the Ruble with oil and have China hold their reserve in Ruble, and it's game over for the NWO. China's reserve becomes oil instead of worthless Fed paper.
Plus, change the swap agreement with China to unlimited, there will be no need for Russia to have any Dollar reserves.
Stop holding the currencies of your enemy.
Theway I look at it Russia just earned 50% on its investment. Think of it this way ... Russia bought a whole lot of stuff with a high value Ruble. The Ruble then fell 50%. Russia just bought the Rubles back at half price. Splendid deal.
Sure but you are still playing by their rules, to truely be free you must play by your own rules (which you can change at any time).
The way I look at it the Fed was long oil until recently. Explains the whole thing. Keep the dollar down but not out while you print trillions to buy bonds nobody wants but has to have? Go long oil. Use the trillions to keep prices high while America drives itself broke, and once it breaks, short the fucker and watch oil producing nations go broke too.
Bitchez
So you'd be okay with your government stealing 50% of the value of the money you possess? With cutting the buying power of your salary in half? With making it impossible for you to buy the goods you want as opposed to buying the goods they want you to buy?
No government on earth should possess the power of impoverishing their citizens just to suit their own selfish geopolitical aims. There are only two sides in the war currently raging-- The US Constitution and Declaration of Independence vs. everyone else, a category which includes the orcs running all governments, all banks, and all media empires everywhere. So line up for your orc suits or stand up for your right to not be trampled in the mud by someone hired to protect and defend you.
Was it the Russian govt that did it or wall street traders?
Maybe it's just me, but somehow I always imagined Sun Tzu to be dressed, well... differently than that.
But to the larger point--
The Russian government chooses to live in the world of fiat currencies. It chose to not defend the rubble when it could have and inflicted disastrous consequences upon its citizens by failing to guard their interests rather than what it perceived to be its interests. Once these consequences were clear and it understood the harm to its own interests, it promptly acted.
In medieval times, dukes and barons struggled to control choice pieces of real estate even as they pledged fealty to larger institutions such as kings and churches. The more things change the more they stay the same.
But to reiterate:
I am not on the side of those notable paragons of human rights known as the governments of post-Soviet Russia and kinda-sorta Communist China. I am not on the side of evil European philosophy and methods of finance which have infected the entire globe. I am not on the side of those who make billions by cozying up to these swine, and I am not on the side of those European-trained vermin that have infected the institutions of the Great Republic. I am in favor of sweeping them all away and seeing the ideals of the Enlightenment regain their rightful place in the esteem of humanity.
I do not want to give you orders.
I do not want you to give me orders.
I would like to see us all live free lives unthreatened by the clumsy schemes of governments which can ruin us individually if it serves some higher purpose of its own.
If I have failed to adequately villify some pet puppet regime somewhere on the planet, I do apologize. There is only one war--between the defenders of the Enlightenment and everyone else. Russia and Wall Street are on the same team but arguing over which one gets to play quarterback.
Putin is a totally incompetent POS.
For someone who understand Russian must see the Putin press-conference in late Apr. 2014 where he said that Saudi were Russia good friends who would never allow oil go below $80.
https://www.youtube.com/watch?v=b6ZXmSzzhmo
Well said; and incontestably on the side of humanity and true civilization; as for the down votes; we're a little short of educated adequate thinkers here I'm afraid.
USD is backed by Saudi oil and Saudi oil is backed by US weapons. When it comes to paper, pretty much all of it is back by fossil fuel. The only difference is whose fuel it is.
Saudi Arabia is in a bad spot... location wise. Sandwiched between deep-festering temporal[?] hostilities, where once belligerents were aligned quid-pro-quo, now questioning mutiny from a dying 'PetroDollar'[?] that only Abdullah ?appreciates?!!!
To the west are the (Africa's) Egypt, the Suez Canal traversing to-and-fro the Mediterranean, the Gulf of Aden via Indian Ocean.
To their east lies the treacherous Persian Gulf with the Strait of Hormuz into the Gulf of Oman into the Arabian Sea, again dumping one-way only into the Idian Ocean.
One Refinery goes down or simultaneous pumping stations go offline via cyber/physically sabotaged from the Red Sea via S. Sudan/ Ethiopia.
ISIS is very unpredictable as is al Qaeda now that Sheikh Bandar has disappeared?
The Russian's will do what must be done and Erdogan hates the Saudi's for what they've done to his beloved Muslim Brortherhood?
jmo'
Siiting ducks in a barrel? of oil...
1 usd = 52.75 ruble .
Yep. Plenty more room for the Ruble to appreciate from here.
No they are not selling their gold mate . rather they bought more gold . Remember SOCgen crappy editorial on zh .
Think sarcasm.
I think Soros was probably a little smarter than that sold the USD/RUB in the 70's, and made a ton of money in doing so. 10 days ago or so, I told Yen Cross that crisis breeds opportunity and profits and the USD/RUB is the fx trade that one should focus on. Well capitalized, dividend producing Russian stocks have been a screaming buy for weeks now.
Insider != smart. I hardly think any major player in todays septic tank of a market is clean.
Regards,
Cooter
I think Soros was probably a little smarter than that sold the USD/RUB in the 70's, and made a ton of money in doing so. 10 days ago or so, I told Yen Cross that crisis breeds opportunity and profits and the USD/RUB is the fx trade that one should focus on. Well capitalized, dividend producing Russian stocks have been a screaming buy for weeks now.
Nope - they are buying gold.
Nope - they are buying gold.
There will be costs; yeah, for the Germans, the poles, and us.
“On Tuesday, the CBR chief Elvira Nabiullina said a higher rate should put an end to investor speculation that has been hitting the ruble. 'We must learn to live in a new reality, to focus more on our own resources to finance projects and give import substitution a chance,' the bank chief said in a televised address Tuesday.”
So how do they finance their own projects if their rates are much higher?
Does Russia have a Rothschild central bank?
You might be pleasantly surprised to know who the Rothchild's are backing here. I'm not saying they are backing Putin 100% but the links are there and have been for years.
anyway, best way to make money, or to win a match, is to be same time in the 2 teams...
finance system never loose, what is lost LEFT SIDE is earned RIGHT SIDE. add backdoors 3rd dimension, add 4th - time - it is enclosed spherical system, nothing is lost, never, it is just about beeing in good spot at good moment.
Well I know that the Rothschilds and the Ziogarchs were behind the Bolshevik Revolution and the murder of the czars, but I have many "awake" friends that seem to think Putin is standing up to the NWO and not another globalist/zio puppet. I tend to think it's just another good cop bad cop shit show.
Mosul and Kirkuk were Turkish but the US under Wilson mandated these two fantastically oil rich provinces to Iraq under the British mandate. The reason being sixty-miles to Baghdad and an Ottoman/ Turk future war within a borderless territory?!? http://en.wikipedia.org/wiki/San_Remo_conference
Here's my point! The 'Baku' of Azerbaijan was the largest ever discovery of oil in the region coming from the Caspian sea in the later half of the 19th c.. The Nobel Family and Rothschild's were involved.
*Petroleum industry in Azerbaijan, and the discovery of oil in Baku. http://en.wikipedia.org/wiki/Baku#Discovery_of_oil
Ps. The Versailles Treaty stripped Germany of all its Gold which was harsh, but the Ottoman Empire was shredded and disemboweled for non-other the pre-determined Sykes-Picot. The English created the war along with France kinowing quite well the Rothschild's Houses of France and England would finance them.
Just a taste of geo-politics! Tdays, tommorrows and the past, where only the obituaries can tell the difference of elolutionary-modernity?
If you google around, you will see the "Rothschilds own every central bank but a few" meme, but I wasn't able to easily determine if the bank is (1) privately held or (2) how its officers are appointed.
Ownership of the bank itself (think shareholders vs government department) and how its officials (appointed by private companies vs government officials) is key here I think.
Wiki is very lean and I couldn't find anything on how that works. If someone has reliable sources, it would be interesting to know.
Regards,
Cooter
Sounds about as transparent as the Fed.
Putin has a bear hug around the CBR. And the CBR as a "Central Bank" concept, whether you like Central Banks or not, is a nonsense - example, it is not independent and it has a large and thus controlling ownership of the largest "commercial" bank, Sberbank.
Putin has a 'bear hug' around the central bank of Russia because, well, he's a dictator and he's got a 'bear hug' around every Russian institution. That's what dictators do.
Unlike with the Fed, there's no pretense of separation between politics and the decision-making process of Russia's central bank. If Vlad wants the CBR to jump, the CBR's only response is to ask "How high?"
Putin has said the CBR operates independently of The Kremlin. The CBR is a member of the BIS. It is my understanding that BIS is a Rothschild institution however I am not 100% sure of that and may be wrong. Can anyone verify that for sure?
Nikolai Starikov's book gives a detailed account of the scandalous setup of the Russian Central bank:
http://lit.md/files/nstarikov/rouble_nationalization-the_way_to_russia%2...
And Ellen Brown has a good article showing what the BIS is about:
http://www.globalresearch.ca/the-tower-of-basel-secretive-plans-for-the-...
The French Rothschild family lost their bank twice. The Nazi/Vichy took it in 1939 and the the commies under Mitterand took it in 1986. Hard to be an evil overlord when society keeps stealing your wealth. Envy is their real enemy.
"Does Russia have a Rothschild central bank?"
The answer to that question is related to the question: How did the MH-17 flight data recorder go from rebel hands to Dutch hands without the Russians intercepting it and knowing what was in it?
Well many ruble shorter got crushed two weeks ago, if it was the price to crush them, so be it.
Next time that George Soros alike want to crash it, he will think two times before to do it.
In fact the speculation reversed: they now buy ruble with hope to make profit !
Buying Ruble from the local change outelt then selling them now. It would have paid the X-mas presents for the kids...
15.7 billion out of something near 500 Billion, plus gold. China and Russia will soon be joined in a joint trade and financial unity in January. Do to US war on Russia, this unity is likely to be expanded after Jan 1st to include a currency stablization plan. The world of Dec 25th is about to change, the new relationship with China comes into effect in Jan. Lets see how the ruble shakes out than. I place not much faith in the currency moves until the two economies merge in Jan.
Jack, perhaps 'become further integrated' is a better phrase than the word than 'merge'...
Linky?
I know Russia/China have done some big gas/trade deals, but is this RIFT or something similar? Work has been insane the last couple weeks and I haven't been following as closely as I normally do.
Regards,
Cooter
If you're talking about Eurasian Union then you're wrong . China will not going to be part of EAU .
Maybe the ruble bashers should take a look at the FED's balance sheet and see what's in there? Pretty comical when talking about a "strong doelarr" and adding a cool TRILLION in debt every single year.
And don't forget all that gold sitting over at Fort Knox either. <heavy sarc>
Merry Christmas bitchez...
The proof in the pudding is that I can't walk down the street and open a Russian bank account and collect a nice rate of return. They can't allow that because then they can't control everyone. Instead, I got some sweet offers on sub prime MBS, junk energy bonds, and the like with a bunch of skimming financial intermediaries in the middle.
The retirement I do have has choices A through G and if you don't like it tough shit. I put it all in money market (fuck you BenYellen) and forget about it because it will be gone before I can ever touch it. I don't even think about retirement anymoree, my plan is to work the hours I want until I die.
My role in all this bullshit is TAX DONKEY and sometimes knowing what the best deal is and being denied pisses me off.
Regards,
Cooter
Pre set investment choices like pre set candidates for office. Ain't the democracy grand.
Subhead: Putin dumping dollar.
Now isn't calling dollars reserves like calling the contents of a septic tank reserve drinking water?!
The banksters need to repay us.
Not exactly. The Bankers need to be Executed by extreme prejudice
That is the implied, and preferred, payment.
"We take gold, silver, and heads."
How many bankster heads fit into a 55-gallon "basket?" I don't know, but I would like to find out.
#NSA Admits Wrongdoing… on #Christmas Eve When Nobody is Looking http://bit.ly/1th2Ouz
14 minutes ag#NSA Admits Wrongdoing… on #Christmas Eve When Nobody is Looking http://bit.ly/1th2Ouzif you check Foreign Holders of US Debt/Bonds, you'll find Russia has/had about $108+Billion, and I don't think its gold since they just bought 55 Tonnes in Q3
Just when they prohibitted US from trading them, they jump.
How about that?
"Russia's South Stream move empowers Turkey" 12/24/14 Note: Turkey has the largest standing NATO army behind the USSAs, and the USSA's backing of the "Gulen Movement" to overthrow Erdogan has been the 'I'm thy Decider' breaker?!?
http://www.al-monitor.com/pulse/originals/2014/12/russia-turkey-pipeline.html
Are those nasty Saudi's, 'What me Worry[D]' ... [yet!].
Turkey ? What happened to UK , France army ?
The head of CBR, Elvira Nabiullina is a fifth colum Zionist whore working for rabbi Rothschild and Soros. Hope Putin soon fire and fuck her Zionist ass.
Correct me if I'm wrong, but I was under the impression that he appointed her, which makes her HIS Zionist whore whatever et al.
As I stated previously, Grandmother Putin can blame this mess on her (his tool) but if he fires her, he ends up with full responsibility for all of the coming bad stuff since he will not be able to pretend that her replacement is not his personal choice (as was Elvira, the Banking Mistress of the Dark).
Also note the dichotomy between words-- we are not supporting the rubble with fx reserves-- with the reality that trickles out on Christmas Day-- we have been frantically bailing out the rubble with fx reserves. Talk about the ultimate in Friday night document dumps.
And Russia is forcing corporations to hand over their private fx reserves. How much did this add to the pile which still dropped 18 B in a week? Quite possible that they spent a lot more fx than the gross totals would seem to indicate.
Also note the interesting straw in the wind that they are going to "control" the sales of Russian grain for export. For a country that needs fx income, this seems like an odd choice. But rubble priced Russian grain could fly out the window in search of a hard currency sale and thus leave grain prices in Russia to shoot up in both real and nominal terms, as well as create a serious food shortage which would not go down well with the peasantry. Short term domestic political concerns thus trump long-term strategic necessities.
And you guys did see the report of Grandmother Putin capping the price of vodka.
And the report that inflation has now gone up to 10.3% according to official statistics-- which, as we all know from perusing government statistics elsewhere, means that it is more than that.
Anyhoo, I personally do not believe that the choice lies between a world ruled by Grandmother Putin or one owned by the nasty secret conspiracy of (insert favorite villain's name here). I prefer to imagine a world that is free of all of them, an Empire of Free Men as it was once termed. We will nobly save, or meanly lose, the last, best hope of mankind on earth.
http://youtu.be/DDRPtg0kmJU
Merry Christmas to all, and may God grant you a happy, prosperous, and increasingly freer life in the upcoming year.
go to the hell, stupid zio-fascist.
Does one expect Russian economy can function with the official 17%+ interest rate where Russian businesses must borrow at ~50%+ interest rate?
My friend just came back from Moscow, Russia. All hotels are almost empty since foreign businesses are leaving Russia.
PS
The present situation is very good for China but it is terrible for Russian economy.
If they are wise, once they take those rubles off the market they should burn/delete them. Obviously there were too many floating around. Scarcity should help support the value
"Vladimir Putin turned inward, blaming the government for "defects" in restructuring the economy."
Gee, I thought Putin was the government, you know, like Obama is the US gvmnt?
/sarc/
Like Obama (and every other politician on the planet), he will only claim to be the government when things are going right. :)
Recall there was one day of digestion when the RUB continued down even after the rate hike. This kind of burp has occurred again & again in the international abortions the us fed meddling has caused.
Nimble traders make use of these political dislocations in the market to gtfo of positions about to turn bad. In fact financial survivalists can do no more. It is a dark age. By the time the mouth breathers figure that out, they will be fighting in the streets for scraps of dog meat. Prepare accordingly and Merry Christmas.
And the beat goes on....
Russia and Iran to switch to payments in national currencieshttp://english.pravda.ru/news/business/22-12-2014/129350-russia_iran-0/#...
i hope all the best for russia...
Come on Russians what are you doing? Maybe it is time you start with us and quit the nationalist bullshit.
So next time some politically motivate speculators try to smash the ruble, imagine the volumne of other FX speculators who will jump in on ruble weakness. I predict future ruble stability now.
"Vladimir Putin turned inward, blaming the government for "defects" in restructuring the economy."
He's almost starting to sound Democratic. In the old days of Stalin, if you were not performing up to snuff there would have been no rhetoric. You were summoned, taken into a shielded room, and you came out of that room feet first.
Putin's EVIL! He wants to take out lands and enslave our women! Well, maybe in the times of Gen. Patton the Russkies were very sketchy but times have changed. The US's attitude towards Russia should change accordingly.
OT: Its now apparently your "patriotic duty" to see the PoS known as "The Interview"
http://money.cnn.com/2014/12/25/media/the-interview-box-office/index.htm...
How pathetic.
No charts display any strong uptrend, at best ruble has fallen so much and stabilized at support areas from years ago.
The next big move is probably down, not a surprize!
Where is AmeriKan Patriot and the others? Oh yeah! It's a holiday and they work for the .gov so they get the day off!
My mistake. I am sure they will be back in the battle comment box tomorrow to commandeer the commenting from intelligent discourse.....
Mother Russia should hold off repaying any debt to those (banks & countries) who have imposed economic sanctions,....say until the rouble stablizes (again) ...
or better yet until all santions are lifted.
I tried to buy rubles or Russian ETF, a couple of weeks ago, but didn't have enough dry powder... :-S
If Russia's monetary responses to US attacks can bring down the US banksters then it'll be good for Americans. The Russians will be doing something that the American people lack the courage. Go Vlad Go!
Actually, the bankster tentacles are so embedded into its host, America, that should you kill the parasite, you will likely kill the host as well.
Ruble.... the correct spelling is R U B E L.
The US English Dictionary says RUBLE-as ive seen it spelled all my life
Idiot.
Damn, I shoulda just gone ahead with picking up some RUB cash a week ago and damn the retail gouging rates. Still woulda made a few bucks gettin rammed going in and going out... ok, maybe not such a good deal.
So russia's central bank spends 15 billion dollars+ from its foreign reserves on buying roubles at 80 roubles to the dollar - 60 roubles to the dollar.speculators tried to break the russian rouble and send it north,which i believed it failed.currently the rouble is 53 to the dollar.the rouble is still undervalued and i believe it should be in the 30s or 40s.speculators will very soon see that that the rouble is strengthening and would want to get out with at least a small profit rather than a loss, which will further strengthen the rouble.the rouble then will find its comfort zone of 30-40 roubles to the dollar then russia central bank can sell roubles to buy back its foreign demoninated foreign reserves.
so buy roubles at 80 - 60 to the usd = 15 billion+ dollars worth
sell roubles at 30- 45 to the usd = make about 30 billion dollars
in other words double your money in a few months
merry christmas from Elvira Nabiullina
A little speculation on the Russian Central Bank's frontmen (women) and their ink scars. http://johnhelmer.net/?p=12417
Does oil rocket from here or does this piss off us and they go full attack on russia/oil? That's the billion dollar question i need to know!!!
I don't know exactly how this is going to end, but I do know obama and America will lose.
Seems a number of Obama cock licking trolls on the late shift.
Typically these fuckwits are focussing on the short, immediate game, and that is because the US is so totally fucked that it has to focuss on keeping its bankrupt balls in the air, and their rotting hegemony in constant repair that they cant think beyond next week. Meanwhile China, Russia et al stealing USA's milkshakes.
The USA perpetually having to maintain its rotting geopolitical games...totally fucking Japan in the process, Europe also....and Germany..will they self immolate as a sacrifice to US goals...or in the end tell them to fuck off?
Russia will be ok but now they KNOW the USA for what it is for sure and wont forget
Rubel, not ruble.
Two internationally acepted spellings - ruble or rouble.....don't know where you got 'rubel', but you need to get it out of your mind - it's affecting your worldview.
China set up swap lines directly to renminbi at an out of market rate. The renminbi is convertible in U.S. $ at a rate fixed narrowly by the CRB.
The Russians have been gifted a free arb of at least 100%.....enough to crush all the ruble shortsellers with a minimal real expenditure.
It is China that can rule the financial markets now.....'Murica is f&%*d badly.