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Russia Just Pulled Itself Out Of The Petrodollar
Back in November, before most grasped just how serious the collapse in crude was (and would become, as well as its massive implications), we wrote "How The Petrodollar Quietly Died, And Nobody Noticed", because for the first time in almost two decades, energy-exporting countries would pull their "petrodollars" out of world markets in 2015.
This empirical death of Petrodollar followed years of windfalls for oil exporters such as Russia, Angola, Saudi Arabia and Nigeria. Much of that money found its way into financial markets, helping to boost asset prices and keep the cost of borrowing down, through so-called petrodollar recycling.
We added that in 2014 "the oil producers will effectively import capital amounting to $7.6 billion. By comparison, they exported $60 billion in 2013 and $248 billion in 2012, according to the following graphic based on BNP Paribas calculations."
The problem was compounded by its own positive feedback loop: as the last few weeks vividly demonstrated, plunging oil would lead to a further liquidation in foreign reserves for the oil exporters who rushed to preserve their currencies, leading to even greater drops in oil as the viable producers rushed to pump out as much crude out of the ground as possible in a scramble to put the weakest producers out of business, and to crush marginal production. Call it Game Theory gone mad and on steroids.
Ironically, when the price of crude started its self-reinforcing plunge, such a death would happen whether the petrodollar participants wanted it, or, as the case may be, were dragged into the abattoir kicking and screaming.
It is the latter that seems to have taken place with the one country that many though initially would do everything in its power to have an amicable departure from the Petrodollar and yet whose divorce from the USD has quickly become a very messy affair, with lots of screaming and the occasional artillery shell.
As Bloomberg reports Russia "may unseal its $88 billion Reserve Fund and convert some of its foreign-currency holdings into rubles, the latest government effort to prop up an economy veering into its worst slump since 2009."
These are dollars which Russia would have otherwise recycled into US denominated assets. Instead, Russia will purchase even more Rubles and use the proceeds for FX and economic stabilization purposes.
"Together with the central bank, we are selling a part of our foreign-currency reserves,” Finance Minister Anton Siluanov said in Moscow today. “We’ll get rubles and place them in deposits for banks, giving liquidity to the economy."
Call it less than amicable divorce, call it what you will: what it is, is Russia violently leaving the ranks of countries that exchange crude for US paper.
More:
Russia may convert as much as 500 billion rubles from one of the government’s two sovereign wealth funds to support the national currency, Siluanov said, calling the ruble “undervalued.” The Finance Ministry last month started selling foreign currency remaining on the Treasury’s accounts.
The entire 500 billion rubles or part of the amount will be converted in January-February through the central bank, according to Deputy Finance Minister Alexey Moiseev. The Bank of Russia will determine the timing and method of the operation.
The ruble, the world’s second-worst performing currency last year, weakened for a fourth day, losing 1.3 percent to 66.0775 against the dollar by 3:21 p.m. in Moscow. It trimmed a drop of as much as 2 percent after Siluanov’s comments. The ruble’s continued slump this year underscores the fragility of coordinated measures by Russia’s government and central bank that steered the ruble’s rebound from a record-low intraday level of 80.10 on Dec. 16. OAO Gazprom and four other state-controlled exporters were ordered last month to cut foreign-currency holdings by March 1 to levels no higher than they were on Oct. 1. The central bank sought to make it easier for banks to access dollars and euros while raising its key rate to 17 percent, the emergency level it introduced last month to arrest the ruble collapse.
Today’s announcement “looks ruble-supportive, as together with state-driven selling from exporters it would support FX supply on the market,” Dmitry Polevoy, chief economist for Russia and the Commonwealth of Independent States at ING Groep NV in Moscow, said by e-mail. “Also, it will be helpful for banks, while there might be some negative effects related to extra money supply and risks of using some of the money on the FX market for short-term speculations.
Bloomberg's dready summary of the US economy is generally spot on, and is to be expected when any nation finally leaves, voluntarily or otherwise, the stranglehold of a global reserve currency. What Bloomberg failed to account for is what happens to the remainder of the Petrodollar world. Here is what we said last time:
Outside from the domestic economic impact within EMs due to the downward oil price shock, we believe that the implications for financial market liquidity via the reduced recycling of petrodollars should not be underestimated. Because energy exporters do not fully invest their export receipts and effectively ‘save’ a considerable portion of their income, these surplus funds find their way back into bank deposits (fuelling the loan market) as well as into financial markets and other assets. This capital has helped fund debt among importers, helping to boost overall growth as well as other financial markets liquidity conditions.
...
[T]his year, we expect that incremental liquidity typically provided by such recycled flows will be markedly reduced, estimating that direct and other capital outflows from energy exporters will have declined by USD253bn YoY. Of course, these economies also receive inward capital, so on a net basis, the additional capital provided externally is much lower. This year, we expect that net capital flows will be negative for EM, representing the first net inflow of capital (USD8bn) for the first time in eighteen years. This compares with USD60bn last year, which itself was down from USD248bn in 2012. At its peak, recycled EM petro dollars amounted to USD511bn back in 2006. The declines seen since 2006 not only reflect the changed global environment, but also the propensity of underlying exporters to begin investing the money domestically rather than save. The implications for financial markets liquidity - not to mention related downward pressure on US Treasury yields – is negative.
Considering the wildly violent moves we have seen so far in the market confirming just how little liquidity is left in the market, and of course, the absolutely collapse in Treasury yields, with the 30 Year just hitting a record low, this prediction has been borne out precisely as expected.
And now, we await to see which other country will follow Russia out of the Petrodollar next, and what impact that will have not only on the world's reserve currency, on US Treasury rates, and on the most financialized commodity as this chart demonstrates...
... but on what is most important to developed world central planners everywhere: asset prices levels, and specifically what happens when the sellers emerge into what is rapidly shaping up as the most illiquid market in history.
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I must of struck the wrong cord in telling the truth. booohoo. I have three down votes. Fuck off cunts! Exposure is only a day away.
Don't Worry...Putin is just recapitalizing the Russian EBT Cards that's All. Russians need to eat Y'all !
He is late to the party. I've been liquidating my dollar position for years now.
So what are you going to do with all those Big Macs?
Ask the longhorn steakhouse servants above.
/sarc
I bought an amusement park.
If i read this correctly Americas plan was to hurt the russian economy so bad it had to sell its USD reserves thereby reducing the value of the USD?
Starting in January 2015 buyers from around the world appear in China to make deals for their orders for Christmas 2015.
If China, who is playing its position close to the chest, asks for Letters of Credit to be payable in some combination of rubles and dollars, "it's game on, baby."
Reading & watching Putin regime propaganda channels and its paid trolls brings back memories of living in USSR where it was told that western world will soon collapse, that dollar will collapse, etc. Only thing what collapsed was ruskies with their poor economy structure. It's been 25 years since than but nothing has changed. I guess ruskies don't learn at all and so they are bound to repeat same mistakes again and again.
MDB, is that you?
Amerikan Patriot?
It will be interesting to see how quickly this ramps up.
The Russians do need USD to service their debt with countries that issued USD denominated credit. So I'm not yet certain whether going all in with their dollar sovereign wealth fund will work out for them in the near future. Maybe. Maybe not, depending on how their creditors feel about it individually. I can see the wisdom in converting it to ruble now (Getting more rubles for the dollar) to provide liquidity for internal investments, but this is one of those all in poker moves that may turn out to be brilliant or stupid when the river card is turned over. Knowing the Russians, it'll probably be the former than the latter.
"We'll Kill the Dollar!"
"Hahaha, Reggie, my Masters told me I would be the one to Crash the Dollar and end America!"
"What are you getting paid in, Munchkins?"
"Err, uhh, dollars..."
"Hmmmm...."
"But, look, they gave me these gold bars. I can't figure out why they tarnish, though."
"Let me see those. Honey...it says 90% Tungsten on the bottom."
"That's good, right? Tungsten. A major refinery, right?"
Ten tongues in the right spot sounds pretty good to him.
I fell in love with this coin yesterday but I know it won't go for $4.99. I know it has some black oxidation on it that I hate but at least it has never been cleaned. The coin looks like how it should look and you can't fake that patina. I have never bought a coin from Ebay before but I might have to make a bid.
Interesting coin. I picked up some old coins in Russia and Central Asia. I also found a stash of French silver coins after my dad passed away.
Let's bid against each other and then cut the coin in half, like they used to do pieces of 8!"
Interesting point and it is true LC55. Let's not bid against each other though if we can help it. These coins need to be accumulated and we are not cutting them in half. It is history. I showed the Russian Mrs that coin and she asked, "Don't you already have that coin?". That's not the point.
Bankers hate numismatists because those old coins are evidence of their paper chicanery. I have questions and I want these douchebags to explain themselves when presented with the evidence and it does not matter which country the coins are from because it is all the same story. They are stealing our wealth through excessive paper issuance of what amounts to be a worthless promissory note.
Keep up the good work LC55 and keep collecting coins and gathering evidence.
Isn't this old news? I seem to remember 1 month's QE being a pittance.
AC2011 Session 1.2 Come Undone: Kyle Bass redux << must watch..
Off-topic.
In many countries a military coup would have occurred:
https://twitter.com/CalFreedomMom/status/555429544891408384/photo/1
hehe.
Just ask Gaddafi with his gold back African currency or Hussein about stepping out of the USD line.
http://www.globalresearch.ca/the-real-reason-russia-is-demonized-and-sanctioned-the-american-petrodollar/5402592?print=1
http://www.thenewamerican.com/economy/markets/item/4630-gadhafi-s-gold-money-plan-would-have-devastated-dollar
Against the Coalition's wishes Khaddafi built an irrigation canal and that got him ignominiously assraped by a bowie knife.
Against Britain's wishes General Saddam chose to bourse his oil, and he was hanged like a real man, reciting the name of his god as he died.
I see a great distinction.
“We will have one big state, our entire economy will be under the control of the state,” Sberbank’s chairman and president German Gref said at the Gaidar Forum, according to Interfax.
http://instamun.org/russian-bank-chair-the-entire-economy-will-be-under-...
Now that is collectivism in full strength. That is where regime is in full control over people. That is where Putin regime is heading. Elitist dream to rule over comman man - a boot stamping un human face.
Well "viedoklis_lv" aka "freedom123", if you are right then let's hope Putin marches into Latvia and sorts put those pesky trolls who keep popping up on ZH like zits ;-) A can of fly spray will do the trick :-)
Why are you so afraid of this man's opinion?
Are only "correct" opinions to be tolerated?
Are you and your friends the only ones allowed to decide which opinions are or are not acceptable?
I mean, you are actually suggesting that he be gassed for daring to think insect-like thoughts contrary to yours and yet you no doubt feel that you are the anti-fascist and he is an enemy of free expression.
Anyone who disagrees with any of you assholes is a troll. Get bent, asshole.
“We’ll get rubles and place them in deposits for banks, giving liquidity to the economy."
Why don't they take control of their own central bank, lower the rates and print those rubles?
My foreign reserve, your currency problem
Starve dollar liquidity and the dollar goes to the moon.
http://roacheforque.blogspot.com/2015/01/afety-of-haven.html
I applaud the move out of the Petrodollar Hell that American Exceptionalists built for the World.
Putin 10, O'Bummer 0.
Russian Federation wins yet again, USA.
:|
Raiding your savings account to make your mortgage payment is not winning.
Russia claims that it has plenty of foreign reserves and there is no need to panic. Yet they have depleted their official stash of fx, raided their central pension fund (twice), passed a law effectively nationalizing the fx holdings of Russian corporations and requiring part of them to be sold for increasingly-worthless rubles, and are now siphoning assets out of their rainy day fund.
Sure smells like victory to me.
But not for Russia.
When Adolf Hilter pulled Germany out of gold-based international monetary system controlled by Wall Street, he turned himself and his country into the enemy of the international usury led by Wall Street. Hillary Clinton is right when she says Putin is the new Hitler. Like Hilter, Putin loves his people and country, places interest of community above all, hates foreign domination, and defends national sovereignty. Petro $ is today's international usury and Putin is the today's Hitler to Wall Street. WW3.
So, then was Nixon the Hitler of the 1970's?
No he was the enforcer for the international usury's new International monetary base aka petro $.
I mean, he was like the only person to continue the search for Communists after the whole Hiss thing.
Another 3:30 ramp up in the works?
Let the XAG/XAU monkeyhammering begin!
Interesting read written by a Russian teacher:
Why Lying Has Become a National Pastime in Russia
When I first arrived in Moscow, I soon learned that if I asked if something could be done and I received the answer, "OK, no problem," that did not mean I could expect for the deed to be accomplished. Many times when I left for the United States and had paid for various tasks to be done by the time I returned in two months, I came back to a job that was either done incorrectly or not at all. In fact, several times the other person acted as though our conversation concerning the job had never taken place.
I found lies were more acceptable than admitting a lack of knowledge about how to do what I had requested. Or they had overcommitted and rather than telling me that they would not be able to accomplish my request, they simply procrastinated and kept insisting that the job was "almost done," when in fact, it had not even been started.
When speaking with Russian friends about my frustration in such situations, they laughed and said, "That's normal here!"
Many Russians lie on a regular basis. They lie even when they don't have to lie. It is a national pastime. It can proceed from the small "white lie" of a family member to one of major proportions from a government official. But often, most Russians are not deceived and know when a statement is a falsehood.
So why do they tolerate this phenomenon?
Not telling the truth was reinforced by a Soviet system that lied consistently to their people. The government instilled great fear in its citizenry with nonstop propaganda about enemies who they perceived were everywhere — within and without the country. The Soviet system lied to manipulate, maintain control and create fear and submission. The government could not admit any flaws, and if errors occurred they were instantly denied because they would reveal intolerable weaknesses.
During Soviet times, people often lied just to stay alive. If a parent or spouse was arrested and declared an enemy of the state, the remaining family members often changed their names and lied to obtain false documents to obtain food, a place to live, education or a job. Lying became a standard means of survival to protect oneself or a loved one. I have heard many stories of what people did to stay alive during times of famine or war. Ethics often were discarded while starving or watching a child die.
The government used lies to make the Soviet system appear better than it actually was. They said Russia was the best country in the world, and everyone else had less than they did. They proclaimed that communism destroyed all class variants and everyone was equal when, in fact, Communist Party officials had many privileges the average person did not possess: larger, nicer apartments and furnishings, the ability to shop in private well-stocked stores for food and clothing and the ability to travel and vacation in Party resorts and dachas.
The Party even went so far as to rewrite and delete history. It is interesting to view old photos of Josef Stalin posing with people who were later deemed enemies of the state and compare them with later versions in which these "enemies" were erased — long before Photoshop expertise existed. School history books were rewritten when there were changes in Party leadership or when prominent officials fell out of favor and were arrested, shot or sent to the gulag. My students often mention they have a difficult time with trust because the things that they were taught as absolute truths were so often changed and replaced by new truths. It became an ethical dilemma for teachers and parents who genuinely desired to be loyal Soviet citizens.
One of the ways people survived these mind-bending issues was to practice what is known in Russia as "vranyo." It is deemed a "white lie" and is generally accepted as acceptable. Vranyo is described as when a person knows he is lying and expects the other person to understand that. One of my colleagues said, "He was lying to us, we knew he was lying, he knew we knew he was lying, but he kept lying anyway, and we pretended to believe him."
Lying is often used to maintain a better image and to save face. Russians are a very proud people, and under the Soviet system many genuinely believed they were "the best." For those men and women, their sense of personal value was coupled with this system. Thus, when it fell, so did their personal worth. They also had never been allowed to think independently or understand how to be responsible for themselves. As a result, during the chaos of the 1990s, many Russians were very confused. They were required to suddenly make decisions and accept responsibilities for which they had no training. At the same time, their pride would not allow them to admit that they did not know how to accomplish these new tasks. Consequently, they fell back into their old familiar pattern of vranyo and lied rather than admit that they could not do something or needed help.
Lying often is used to take advantage of others, thus breeding corruption and outright theft. Many entrepreneurs have been robbed because criminals bribed officials who enabled them to evict the rightful owners of newly successful businesses. Contracts have been canceled and property seized. I remember several years ago walking past the Trinity Motors showroom on Tverskaya Ulitsa, and I was shocked to see the windows painted white. I later read that 25 men had stormed in and given the company only a few hours to evacuate the property. Their lease had been canceled by the presidential administration
In addition, just last week, I shopped in the prestigious Tverskoi Passazh shopping center and was dismayed to find that only three days later it was seized by a group of men who drove out the guards and barricaded the door. The presidential administration reportedly canceled their lease that was to run to 2016.
Russia is plagued by lying that ranges from what is deemed as a mild-mannered vranyo to immoral corruption. Vranyo is a lie, and the acceptance of this creates a system of falsehood that undermines trust and condones and encourages deceit, deception and irresponsibility. If someone lies regarding small things, he will likely lie in more important areas and also will accept this offensive behavior in others.
I challenge my students regarding this major issue of honesty and integrity. They admit it has been a struggle for them, but they are breaking this destructive habit and are proud to see the changes in themselves and their families, personally and professionally. They have made commitments to being truth-bearers and honorable citizens of a healthy Russia.
http://www.themoscowtimes.com/opinion/article/why-lying-has-become-a-national-pastime/470253.html
Huh? All our foreign/domestic/economic policies here in the US are of the "pants on fire" variety.
.
That article is nothing but lies.
Article is Lies and BS Moscow Times is terrible
Everyone who dares to lie about Putin deserves to be punished.
Everyone who dares to lie about Obama deserves to be punished.
Everyone who dares to lie about Mini-Xi deserves to be punished.
Lucky we have extra-large staffs of punishers on government payrolls everywhere.
Busy, busy, busy are those who hunt down and punish lies.
dafuq did i just read
Finally, some critical thinking.
Moscow Times is foreign-owned Atlanticist trash.
"...Not telling the truth was reinforced by a Soviet system that lied consistently to their people. The government instilled great fear in its citizenry with nonstop propaganda about enemies who they perceived were everywhere — within and without the country. The Soviet system lied to manipulate, maintain control and create fear and submission. The government could not admit any flaws, and if errors occurred they were instantly denied because they would reveal intolerable weaknesses....
The government used lies to make the Soviet system appear better than it actually was. They said Russia was the best country in the world, and everyone else had less than they did. They proclaimed that communism destroyed all class variants and everyone was equal when, in fact, Communist Party officials had many privileges the average person did not possess: larger, nicer apartments and furnishings, the ability to shop in private well-stocked stores for food and clothing and the ability to travel and vacation in Party resorts and dachas."
Hey, we resemble that remark.
Hope you kept your old maps.
The more you described the system of official lies that dominated the USSR and peoples' reaction to them the more similar it began to appear to the West today.
This experience is not at all different from my experience in Israel. Now people can jump on board and say this is about ethnicity, but I tend to believe in this place it is about a nation built on a national lie. When you're pretending that the army isn't oppressing innocent people (when it is and a majority of the population ACTIVELY carry guns in participation with this oppression), everyone knows it's a lie. The origins of the state are a lie. Everyone knows the stated goals and promises of the politicians are lies. The whole game becomes one in which those who tell the truth are just suckers. Furthermore, those who feel BAD about lying if they do or who take losses because they don't like to lie - they are suckers too. The result is a whole society of people worth absolute shit. Business becomes nearly impossible to function. Commerce based on dialog breaks down and is replaced by "connections" rather than representations of truth in the market. Then you get oligarchs and gang type activity.
People here act like "obviously everyone is lying all the time" to such an extent that politics merely becomes playing along with a lie. The choice among politicians is just then who has the best lie narrative that really gets you to believe the lie. Any intervention of humanity or truth at this point is devastating to the function of the system and the policing of this can be carried out with devastation. I worked a job where the CEO embezzled money while workers went unpaid for years. When this started to leak out the management (paid folks) worked furiously to cover it up, all in contravention to the law. As a lawyer I stood up and tried to stop it and the violations of law. The result - I am the one who ended up getting the brunt of punishment.
I know the US is struggling with this now, but I do remember it being a rather meritocratic society where ones truth and work could attract success. Now, with the conduct of the government and this plague of lies from the top I talked about - it looks like "lie or you're a sucker" is becoming more common.
This is good news.
The U.S. must now cancel transfer payments and mass-scale euthanize the Baby Boomers and all their worthlessness.
As a nation, we can no longer afford them.
You're next in line for the psychopath's testing unit.
Even boomers can outwork gen xers.
I've seen zero evidence of that.
Then open your eyes, fuckstick. I'm a boomer as are my friends. We are some of the most self-sufficent people you'd ever want to meet. But, you wouldn't want to meet us. Because you're a cunt behind a keyboard.
History is a bitch and it fucks 24/7 nonstop . let me quote :
Despite objections from Schmidt, president of the Reich’s Bank, Hitler withdrew Germany’s money system from the gold standard…. Hitler substituted a direct barter system in foreign dealings. German currency became defined units of human productivity.
In January 1938, the Soviet diplomat Kristyan Rakovsky commented on the German money system. Rakovsky had held posts in London and in Paris and was acquainted with Wall Street financiers. He explained, “Hitler, this uneducated ordinary man, has out of natural intuition and even despite the opposition of the technician Schacht, created an especially dangerous economic system. An illiterate in every theory of economics driven only by necessity, he has cut out international as well as private high finance. Hitler possesses almost no gold, and so he can’t endeavor to make it a basis for currency. Since the only available collateral for his money is the technical aptitude and great industriousness of the German people, technology and labor became his ‘gold’…. As you know, like magic it’s eliminated all the unemployment for more than six million skilled employees and laborers. “
Germany’s withdrawal from the gold-based, internationally linked monetary system in favor of a medium of exchange founded on domestic productivity corresponded to Hitler’s belief in maintaining the sovereignty of nations. This was an unwelcome development in London, Paris and New York, where cosmopolitan investment and banking institutions profited from loaning money to foreign countries. Germany no longer had to borrow in order to trade on the world market. Foreign demand for German goods correspondingly created more jobs within the Reich.
— Richard Tedor, Hitler’s Revolution, Chapter 2 The New Germany
"German currency became defined units of human productivity."
Some humans are more productive than others.
Hate Fact.
Hitler withdrew Germany from the established FED (founded right before the outbreak of WW1). How did it end? I am curious how the Putin-experiment is going to end.
It's going to end up in a nuclear winter, I hope.
The only difference between Hitler and Putin is that Russia has a huge arsenal of NUKES.
But, you know, the Neocons don't give shit because they believe they can fix it.
I agree it's a brilliant system, but it's not Hitler's—it's Gottfried Feder's.
https://archive.org/details/DasManifestzurBrechungderZinsknechtschaftdes...
And then Hitler killed and replaced him and abandoned that system of idealism based on worker productivity.
You're right about the idea originating with Feder but where did you get the idea that Hitler killed him? Sure, he fell out of favor but as far as I know went into teaching and died naturally.
Cool!.....
https://www.youtube.com/watch?v=LBduNcf1eQc
WHERE'S PHONYSTAR AND HIS SHITCOINS NOW?
BAWWWHAHAHAHAHAHAHA
This may come to be known, in our future "history", and the biggest event of the year.
The shooting of the Archduke in 2015.
...or, maybe not: http://www.zerohedge.com/news/2015-01-14/russia-just-pulled-itself-out-p...
What a wonderful coincidence?... Every time George Soros appears in a particular location "bad things" just seem to be right behind him leaving an unwanted and very unpleasant trace... Like his flatulence!
Dare say we should ponder the possibilities for the next looming "false flag" in that part of the World and just hope that "Je suis Charlie" does an epic backfire as it more than likely is being used as cover for something much more prodigious within "skunk works" inc.!
http://www.presstv.ir/Detail/2015/01/14/393067/Ukraine-monitors-being-pu...
If you have a death wish old man and you don't care about any of your progeny which obviously has the highest of probabilities considering "who" you are and what you've already racked up in the loss department on these misadventures just keep it up!...
We dare you to ask Putin to "pull your finger" on the next 9/11 you initiate on his doorstep. Because it will be the last time you see that finger or anything else you "own"!
One can only hope that all traces of Soros's DNA will be wiped off the planet.
https://www.youtube.com/watch?v=ynAAXzs3PUY
Jan. 9, 2015 / Dr. Jim Willie[ much on PetroDollar ]
I thought that ZioTurd Soros died already. Hopefully, it's a hologram.
That childrens' blood is great for longevity.
Just out, Putin's Way..from PBS..watch it...you think the US has issues with corruption..aint seen nothing yet...this is very well done..
MT @frontlinepbs: #PutinsWay on @PBS and here online: bit.ly/1swy4Fh bit.ly/1swy2NQ (just watched this-excellent)
I'll watch that right after I watch the PBS special called Obama's Way: A Story of Corruption.
Why in the fuck would any thinking person watch anything put out by PBS? Seriosly, get a grip man.
TV and Hollywood is for retards and idiot serfs. Keep up the good work moron.
More lies about Putin and Russia here:
http://news.yahoo.com/russian-minister-promises-limit-government-spending-081622735.html
Anyone got more information on which to validate/refute the following article?
http://russiansupport.blogspot.de/2015/01/gazprom-will-block-coming-to-e...
I saw this somewhere else today. Gazprom pretty much cannot trust the Ukrainains with the pipeline. South Stream to Turkeywill pretty much end the Ukrainain pipeline. The ukies steal gas, do not pay and other shit.
Southstream to Turkey is nonsense to construct.
Gazprom has spent about $9 billion already. That will be a writeoff.
What more information do you need? Russia is not going to block that trade although they may threaten to do so. Why would they? What everyone seems to misunderstand about Russia is the fact that Russians have a central bank too whether they want one or not. That is all you need to really understand.
They have this at least which is ugly as hell but nontheless is gold. Who is the "artist of Russia" I wonder? Whatever. Of course I want one because look at the low mintage. No one has this coin on ZH and the dating is the best because why change the die? Most Russians do not even know that the coin even exists. I can spend my money elsewhere but just so you know. I can't seem to find one.
"Russians have a central bank too whether they want one or not."
And the lady heading it is of the Tribe, thereby embedded in the overall Rotschild international CB racket.
Ok, iv'e read that, and I hate to be a bore but, not being a financial whizz could someone please explain in little words, what It all means.?
Russia is selling the family jewels to make payroll on Friday.
Another smashing victory for chess players everywhere.
Not true. Gazprom is shutting down gas transport through the Ukraine by 2019, redirecting supply elsewhere. They are sick of the Ukies stealing their gas and endless blackmail. This is a good move since it blocks the USSA's ability to constantly harrass Russia via their Ukie butt puppets.
Exactly. You keep playing both sides against each other, and then, one day you wake up and you are obsolete. With a geographical advantage this rarely happens overnight, hence the hubris involved. Its like the privilege Panama, Suez, and the Malacca Straits have enjoyed, but which can be removed, if they try to capitalize TOO MUCH on their advantage.
get-or even RENT a clue darlin-or go bake some cookies and let the educated speak here
Tarabel is no Honestann, that's for sure. Forget the cookies Dnaught, she places Oreos in the oven at ~175 - 10 minutes :P
Who needs brains? She's hot!
What it all means?
It's about to rain. Trolls are getting restless.
Unless I'm not reading the article correctly, Russia is still accepting dollars for oil, which means, Russia still participates in the petro-dollar scam. However, yes, they are wisely exchanging dollars (currently artificially high) for rubles (currently artificially insanely low), which is simply wise policy.
What if the Russians do change their policy and exclusively demand rubles for oil and gas. Well. That will be a new story, a very good one. This could be the first (or second) step towards that day, but hasn't happened yet.
Note that if Russia did demand rubles for oil and gas, the "price" in rubles would have to be (and look) very high (compared to recent prices), due to the artificial fall in the ruble. And so, that might create grumbles. But when Russia accepts dollars for oil and gas, the "price" looks quite reasonable given the current artificial strength in the dollar. And so, "no hard feelings or pissing contests". As long as Russia takes all those dollars and instantly convert them to rubles at the currently insane exchange rate, they're doing great. Which is more like what it appears they're doing.
The last thing Russia want to receive for oil and gas payments is more depreciating rubles. They have a printing press to make those.
Except that if Russia accepted only Roubles for oil/gas,the Rouble would rise in value and the scenario you paint would not happen or at least would be moderated.
As I understand it, Russia doesn't control its Central Bank money supply. The gangsters who run the western banking system do.
Buying those Rubles low is a smart idea. But then, you're loathe to admit an obvious fact like that, aren't you Mr. Gloop?
Perhaps Russia would be wiser to offer a discount if people buy their oil in rubles.
Substitute rubles with gold, and that make sense. But it makes just as much sense, if not more, to accept those stupid dollars and then immediately convert them to gold.
You have it pegged honestann. It is all about the central banks and that is what the "Cold War" was all about. I don't hate Russians; I have been married to a Russian woman for 11 years and have two children with her. That means my children are half Russian and they speak Russian. I did my part to stop the propaganda wars and my attitude filters back to Russia. One thing I have noticed is that the Russians are bit slower on figuring out that is the central bankers who are causing the problems.(some know it) What would the West gain by starting a war with Russia? NOTHING. I am not going to fight them and they don't want to fight me either. It is hard to get a Russian to trust you if you are an American but I have managed to do it. All it took to accomplish that was telling the truth.
Russian politicians got sucked into the banker bullshit just like everywhere else. Some Russians know that fact full well. One thing I have learned is that not all Russians are the same. There are plenty of groups of Russians who are very different from each other. I can't explain it accurately. I am not sure that I fully understand the differences that we are talking since about 900 AD. There is no way that I can know but the wife says that I am an idiot and she is not political but is no one's fool. She is correct.
Russian history is amazing and I will collect it where I can. Womanhead knows that I am not an idiot but rather an asshole as there is quite a difference. Idiots do not ask questions but assholes do.
What I forgot to say is, the Russians would be even smarter to instantly convert those dollars into gold.
You are spot again honestann but that is not how it goes there in Russia. You would think that they would figure this out.
"It is hard to get a Russian to trust you if you are an American but I have managed to do it. All it took to accomplish that was telling the truth."
I think this is why people have sympathy with the Russians and their leaders.
They should fat finger sell it all at once.
66.0775 against the dollar by 3:21 p.m. in Moscow. It trimmed a drop of as much as 2 percent after Siluanov’s comments. The ruble’s continued slump this year underscores the fragility of coordinated measures by Russia’s government and central bank that steered the ruble’s rebound from a record-low intraday level of 80.10.
So, looking at it another way - the ruble is up about 17.5% over the past month or so?
Not too bad really. The US Dollar is crashing!
Lies, damned lies and statistics eh.
Ruble plunged to 88.
Then bounced to 55.
Now down ~15% from that and headed to 100.
+++++++++++++++
Update: Typical of ZH nutters that presenting facts generates down votes. Just to be clear, I look at those as confirmation of my correct analysis when the tampon hoarders disagree.
."tampon hoarders"
Fuuuuuuck. I knew I was forgetting something.
if this place is so full of Nutters-then you might as well include yourself in that subset, as you post nutty things all the time-And why bother hanging out here other than to piss and moan and whine? ya 'Tard
currency reserves don't mean shit. Gold reserves is where its at dawg. Nobody wants their own worthless paper.
wurd.
gazprom to stop gas transit to europe via ukraine
http://www.rg.ru/2015/01/14/miller-site.html
Not one western media outlet is reporting this, or at least I haven't seen it anywhere yet.
Yawn....another "petrodollar gonna die!" post. So what? You have been posting all kinds of stuff ("Holy Grail" deal between Russia and China), blah...blah...blah and nothing has happened to the dollar nor to the American economy. Where is this doom and gloom crash that will make the Depression seem like a picnic that you so confidently predict?
Everyone is such a Google shithead these days...
CLICK HAVE! CLICK HAVE! CLICK HAVE!
You think this will be an overnight thing?
No. They are just covering the cracks but the levy will break.
I don't know how trading your foreign reserves to prop up your liquidity starved economy is cause for celebration. Russia is losing economically and we're hanging around in the ukraine. Biden's boy may make his family's fortune after all. How are we going to fight off China for all that energy is the real question. There's a billion of them. How many million "excess" males?
There has been a lot of whaf-iffing here (generally, not just this article) over why Russia doesn't start accepting only rubles or gold for oil/gas, and, relatedly, why Russina/China don't just dump USTs out of retaliation or geopolitical strategery.
1) I do not believe that there are a sufficient number of rubles in circulation (yet) to smoothly effectuate such a change. Russia could just start printing more (setting aside questions over who really controls the Russian Central Bank), but from what I can tell, Russia has not been inclined to turn on the printing presses (both physical and electronic). For Russia to switch settlement, it would likely only to do so incrementally, which I think would be consistent with Russia's tendency to act conservatively and defensively (which I don't mean in a pejorative sense). I think the tell-tale sign will be the pace at which non-USD energy agreements are signed, and with whom.
2) Even assuming Russia switches to ruble based settlement, the USD is still going to remain the settlement currency of choice for the overwhelming balance of global trade for the foreseeable future. Thus, the notion that Russia or China will dump USTs does not make a lot of sense because a) if they were able to cause a drop in the price of USTs, they're reducing their own purchasing power, which makes no sense, and b) there is no good reason to think the Fed would not do whatever was necessary to buy up whatever was being sold. According to http://www.zerohedge.com/news/2014-12-15/china-russia-dump-us-treasurys-..., China and Russia hold ~$1.4T in USTs. In the past 7 years-ish the US has added another ~$7T in debt. What's another $1.4T at this point? Thus, a UST dump makes no sense from either a strategic or economic perspective.
3) Instead, China is able to use its USTs to keep buying up Africa and spreading its influence around the world. China knows that it is a necessity to diversify its trade partners so as to not stay trapped in the current state of China/US codependency. But China, too, is an extremely conservative and methodical culture, and what is fears is any sort of rapid change to the status quo that increases the risk of civil unrest. Thus, China is not going to willingly participate in any scheme that has any real chance of creating uncontrollable destabilization.
If the petrol dollar was over then spot gold and silver would spike. Who knows, maybe tomorrow it will.
"(setting aside questions over who really controls the Russian Central Bank...)"
For what it's worth the current head of the Russian CB is of the Tribe. But you suspected that anyway, didn't you?
Ha, just like I called it. BTC peeps, watch your wallets.
According to reports, CEX.IO has "lost" something like 16,000 transactions just today. I requested my coin at 11:30 today.
This reporter hashes BTC and several other coins, and had only .5 BTC to transfer, yet it's missing from my wallet. (For a control I transfered 2 BTC from Coinbase at the exact time. It arrived within 15 minutes.) Here's the message from the exchange, CEX.IO timestamped 14:57 today:
Regarding The Recent Withdrawal Transaction ID Error
Hello Everyone,
We have recent performed a hotwallet migration which caused various deposit and withdrawal delays to occur. Both issues have been fixed, but users who have placed a withdrawal request during this period may still not have had their transactions completed. Nothing is lost. We ask at this time that if you performed a transaction that is missing to please contact us via ticket immediately so we may refund your account. All future withdrawals should process correctly. We are sorry for the issues and inconvenience this may have caused you.
"I don't have your money, it's in Samir's house and Tarik's house and Ahmed's house!"
Here's an economic perspective of what might happen to the U.S. Dollar and oil and to gold and silver as well and why QE will come again soon!
http://www.silverdoctors.com/is-2015-the-year-the-fed-comes-to-the-aid-o...
Roubles...
Dollars...
They are still just empty paper promises.
Logical to trade depressed promises for inflated promises.
Like the lies a courting man tells, that he'll fetch her the sun or the moon, the promises are not important, are nothing, what is won with them is everything.
Paper is supposed to represent the work of a man, his stored labor. When he promises his wife a new roof yet his labor-paper produces a half-assed job, in our society the only one who pays is the husband. Often with a bullet through his cranium.
At least until the BRICS back with gold.
The picture of Putin is funny!!
hmhmhm Why would Ukraine trade all their gold for US paper? This is much better!
I think their gold was stolen.
the only thing the Ukraine has left is Gold spray painted lead bars...
Right or wrong, the Ukraine has a lot of backing. Financial and otherwise.
They did not trade it. The gold was whipped out to the friends of Yats once he seized power on behalf of his masters.
What is a petrodollar? A dollar from a greasy guy?
My best advice for all of you guys is that instead of investing $700+ in a crap Samsung or iPhone consider buying a satellite phone with at least 1 year service plan. Things will start getting pretty ugly soon and your regular cellphones will be obsolete by then.
You still think sat phones use satellites? With your knowledgebase, don't deride iFruiters.
Wait - I thought they called them sat phones because they couldn't butt-dial.
Dont worry sheeple like you dont know the difference.
Not they use petrodollar to communicate. You MORON
A unique opportunity for Greece
... as Russia tries to upgrade its geopolitical influence in the East Mediterranean
http://x2t.com/GrRu
In rubles, of course.
gassus interruptus
Huge development---but will central banks simply go on doing as they do and simply disregard the real world of production and products? Is this the last real reoccurring assett deposit to drive the liquidity loan/credit engine? So if there are no legal checks and balances then merely opting out of the game will most likely be seen as an act of war by Western Banking Monetary proponants which is the most significant hallmark of "Western Culture" --- what a sour note.
$88 billion, and we're supposed to think that will be the end of the "petrodollar"? How quickly we forget that, until recently, that was a month's worth of Fed printing. It's nothing, really.
"How the petrodollar quietly died, and nobody noticed." Because it's not a thing.
How the petrodollar quietly died, and nobody cares.
First of all Russia has to dump the Russian central bank.
The institution is controlled from London/Tel Aviv/Washington.
The Jewess heading it, is muppet only, like the jewess, heading FED, is a muppet only.
Muppet might be the wrong word. I'd just say that her first loyalty won't be to Mother Russia.
Can you back that claim?
I have always heard Nabiullina is Tatar heritage.
Just hope it will happen asap. The more countries dump the petrodollar the better for the world. It's about time the world's greatest bully finally got a bloody nose! And don't you try to threaten Russia with your sanctions and dirty propaganda. It's the same as trying to scare a hadgehog with a naked butt.
Russia FTW!!!!
What about the dollars that stay at home and weren't used to buy high priced oil ? This whole petro-$ conspiracy theiry is bullshit.
If US wholesalers (refiners) are paying less for crude, and in turn consumers of refined procuts are paying the middlemen less, then those dollars are staying at home in US banks. Those $s get invested also.
So one should be looking at the any leakages. My guess is that foreign producers are using some of those $s for non-$ investments/ consumption. So you lose those petro dollars. Secondly, those dollars that now remain in the US may be invested in say shorter term maturities than what oil producer central banks might investin. So there may be changes to the demand for $-based assets since different entities will have different preferences.
In general lower oil prices should be better for the $ because foreigners should be spending some of those $s on non-$ goods/assets, whereas US consumers' $ stay at home. I think the perto-dollar story is a myth. It's good for investment banks as they get to loot the dumb arabs when they help them "invest" their petro-loot, wherea when you I save $50 bucks in that stays in our checking accounts, it probably ends up in some money market fund.
The dollar has been on a Juggernaut run lately, but it will pull back shortly to catch it's breath before resuming the trip to the stratosphere.
http://www.globaldeflationnews.com/u-s-dollar-indexelliott-wave-update-f...
Look, the Russians can exchange all the dollars for rubles that they want. Be our guest. Because outside of Russia the only thing the Ruble is good for is to wipe ones ass after a stinky shit. 50%+ of the Russian GDP from oil sales? HAHAHAHAHA. This is looking like Russia in the 1930s -- good times!
On the other hand, this http://finance.yahoo.com/news/russia-picks-monetary-policy-chief-0815040... looks like a big time cave in.
"Dmitry Tulin, a former central bank official who also worked at the International Monetary Fund and Deloitte LLP,...". Looks like an international central banking apparachnik for most all his career. Russian Central Bank will continue as property of international bankers rather than Russia, it seems.
No one wants dollars. OK what are the alternatives? Do you want Euro? Pound Sterling? Swiss Francs? Yen? Rubles? Yuan? Gold? The alternatives represent a close race between some very slow horses. Of course there are always the Brazilian Real, Mexican Pesos, Venezuelan Bolivars or Turkish Lira, which can be counted on to hold their value (that was intended as a joke).