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Belarus Hikes Refinancing Rate From 22% to 27% To Combat Hyperinflation

Tyler Durden's picture




 

Belarus, which recently has been fighting hyperinflation after devaluing its currency by over half, just hiked its central refinancing rate by 5%, from 22% to 27%. We look forward to Comcast's clown channel to pitch Belarussian equities next as the local stock market is poised to outperform every single stock market in the world, complete domestic currency devaluation aside. NB: This is what hyperinflation looks like.

From the google transalted press release:

National Bank refinancing rate increases to 27 percent per annum.

Board of the National Bank decided to further increase the refinancing rate - from 1 September 2011 it increased by 5 percentage points to reach 27 per cent per annum (Judgement of 26.08.2011 ? 352).

Such an increase in refinancing due to the need to tighten monetary policy to stabilize the foreign exchange market and reduce the intensity of price increases.

In addition, increasing the refinancing rate will increase the amount of compensation to depositors of costs associated with inflationary pressures, and will be an additional deterrent to the growth of money supply.

As part of the developed plan to enter the single rate of Belarusian ruble and Social Security National Bank jointly with the Government will continue to conduct a coordinated policy to ensure economic and financial stability in the country.

 

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Tue, 08/30/2011 - 10:57 | 1614891 anynonmous
anynonmous's picture

Isn't Roubini from Belarus?

Tue, 08/30/2011 - 11:01 | 1614910 BaBaBouy
BaBaBouy's picture

.

Need A Good Fix Of HOPIUM...

Anyone know a good dealer, Bummah, Burnenkeee ???

 

Tue, 08/30/2011 - 11:17 | 1614970 MillionDollarBonus_
MillionDollarBonus_'s picture

Belarus is a backward country. Their government officials and central bankers do not have access to intellectuals of the same calibre as our officials in the US. We have the best economics schools in the world. People all over the world compete for the priveledge of being educated by our professors, because they are second to none in competence and intellect.

Tue, 08/30/2011 - 11:19 | 1614989 BaBaBouy
BaBaBouy's picture

.

Yeah Right... AND Our Economy Is Going Gangbusters...

Gooo Usa MBA's !!!

Tue, 08/30/2011 - 11:29 | 1615028 nodhannum
nodhannum's picture

Your kidding...right?  What a complete BS comment.  I don't think your MDB is gonna last long with your ouotlook.

Tue, 08/30/2011 - 12:03 | 1615186 MachoMan
MachoMan's picture

You're my new favorite troll.  I haven't seen Hamy Wanger in a while, so kudos to you.  You're gonna get a lot of people with this gag before they get it.

Tue, 08/30/2011 - 12:22 | 1615287 Flakmeister
Flakmeister's picture

I gotta admit that he has a certain panache....

I get a bigger charge out of the people that get their underwear in knots... Who is smarter? The matador or the bull that charges at the red cape? 

Tue, 08/30/2011 - 12:41 | 1615380 The They
The They's picture

With your constant, unquestioning bootlicking of figures of authority such as central bankers and "intellectuals", and an unbridaled (not to mention substanceless) thirst for central planning, MDB, i think you are my new favorite troll. 

 

junking you puts a twinkle in my eye.

Tue, 08/30/2011 - 16:39 | 1616484 Finite Supply
Finite Supply's picture

"Second to none in competence and intellect"...  This has got to be a joke. On a good day, I'm not that bright, but Ill trade me for a thousand intellectuals any day of the week.  Its intellectuals like Bennie, Summers, Romer (after she sold her soul) and Krugman that have destroyed this once great country.  "Intellectuals.."  Trolls, all of them. I say round them all up and put them to work in the steel mills

Tue, 08/30/2011 - 11:09 | 1614954 IQ 145
IQ 145's picture

WOW what an opportunity. We could buy some bellrus bonds, and get lots and lots of interest. Whee!

Tue, 08/30/2011 - 11:49 | 1615113 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

Is a night with a high class hooker now double? Or the same price relative to wages?? I imagine most high class hookers rely on forigners for their trade; while lower class, fatter round the edges, rougher hookers rely on local guys - builders, postmen, teachers, accountants etc etc none of whom have seen wage increases!

So while high class hookers might put up their prices a little (though probably not matching inflation) I'd be low class hookers have to keep their prices in line with local wages.

I've always been of the opinion that several visits to low class hookers is better than blowing eveything you have on one high class one. Think about it: low class ones often have more of a love of their craft - while high class ones can be snobby and expect their attractiveness to be enough to part you with your money and not bother put in any effort. And to put it simply, I'd rather shag 3-4 decently attrative chicks that one super hot one. Thats just me, I like doing it a lot.

Could be a hellava destination for a dirty holiday!

Tue, 08/30/2011 - 12:08 | 1615209 MachoMan
MachoMan's picture

You could get two...  and then tell one of them to "quit staring at it and eat it."  And then kill one and chase the other around your apartment complex with a chainsaw while in your underpants...  if she gets too far down the stairs from you, just drop the chainsaw on her.  Being a psycho and all...

Tue, 08/30/2011 - 12:25 | 1615303 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I can't do that one in Belerus again though, as the fuzz got tipped off that time I kidknapped the headmasters daughter. No, what I'm preying for is Greece to leave the euro, go back on the drachma at 50% devaluation. Gold $3000, Silver $100. Cash out my long positions. 10 hookers in a high class hotel and I line them up like a drill sargent. I get the doing press ups, wrestling each other, pretending to be piggies - I get on one of their backs and race them around the room!...Then out comes the chainsaw!!! They think its a joke hahahheheh! Until I cut off one of their legs AAHHHHHHAAAAAAAAAAAAAHHH!

The rest run for the door! Its locked! Bolted! No way out!!!!!!

I bet then they'd really hate that Papendreau for selling out to the banksters hahaha!

Tue, 08/30/2011 - 14:07 | 1615787 Xylusta
Xylusta's picture

Jesus...that's twisted.

Tue, 08/30/2011 - 10:58 | 1614898 Dismal Scientist
Dismal Scientist's picture

I love the smell of hyperinflation in the morning

Tue, 08/30/2011 - 14:28 | 1615916 SovietCong
SovietCong's picture

Beginning mid-September, Belarus will allow (somewhat) free floating FX of their ruble. At least that's what their chieftain Lukashenko is saying... They will have after-hour FX sessions on their exchange and will let people trade currencies freely. Guess what will happen then?

Hint: Right now, the National Bank of Belarus has a USD ask at ca. 1 USD=5K BYR, subject to strict purchase rationing of course. On the black market the USD ask is over 10K BYR, more than double the official rate.

Tue, 08/30/2011 - 10:59 | 1614900 YesWeKahn
YesWeKahn's picture

Their consumer confidence must be sky high.

Tue, 08/30/2011 - 11:01 | 1614911 SheepDog-One
SheepDog-One's picture

A glimpse into our near term future here in the west.

Tue, 08/30/2011 - 11:07 | 1614946 espirit
espirit's picture

...and that assclown BB says the Fed will prevent such conditions. What, by taking the dollah to zero?  rotflmao

Tue, 08/30/2011 - 11:02 | 1614914 buzzsaw99
buzzsaw99's picture

usa clownbux are different. ask chindia. [/sarcasm]

Tue, 08/30/2011 - 11:04 | 1614921 Zero Debt
Zero Debt's picture

The Bulls..

http://en.wikipedia.org/wiki/File:Belarus-1992-Bill-100-Obverse.jpg

And the Bears...

http://en.wikipedia.org/wiki/File:Belarus-1992-Bill-50-Obverse.jpg

That was back in the days...

Now witness the SKI JUMP RAMP...

http://en.wikipedia.org/wiki/File:Belarus-1999-Bill-5000000-Reverse.jpg

Oh and by the way..just a "jump" of 50 to 5,000,000...nothing to see here..

 

Tue, 08/30/2011 - 11:25 | 1615022 hawks5999
hawks5999's picture

I was in Belarus to spend those first 2 bills. Wasn't around for the 5,000,000 bill, but saw the introduction of the 20,000 bill. The place was a basket case then and it lead to the election of Lukashenko. Hate to see what this round of Hyper-I will lead to. I have a feeling it won't be good for the people of Belarus.

Tue, 08/30/2011 - 12:04 | 1615192 Zero Debt
Zero Debt's picture

Yet..the MSM networks don't care...And THAT by itself should be big news as well...

* Dictatorship, Price Controls, Capital Controls, KGB Control over Mass Media (http://www.youtube.com/watch?v=jW_GLKff3YU)
* Rushing to clear bank accounts to buy anything, Empty store shelves, Workers finding themselves suddenly completely broke (http://www.smartmoney.com/invest/markets/could-a-currency-collapse-happe...)
* Threats of not supplying electricity from Russia and Ukraine (http://talks.guns.ru/forummessage/151/808256-74.html)
* Suspended sales of precious metals from the National Bank (http://democraticbelarus.eu/node/12274)

But of course, that does not happen in the West.

 

Tue, 08/30/2011 - 11:04 | 1614922 mynhair
mynhair's picture

Is transalted like transfatted?

Tue, 08/30/2011 - 11:04 | 1614923 Flakmeister
Flakmeister's picture

The dollar is toast... but nothing like this is going to happen here as long as oil is priced in Bennie-Bux....

Tue, 08/30/2011 - 11:07 | 1614945 SheepDog-One
SheepDog-One's picture

Oil will be a distant memory to most americans soon when the Syria/Iran/Russian war kicks off soon.

Tue, 08/30/2011 - 11:37 | 1615054 Flakmeister
Flakmeister's picture

Hey, I'll stand by my call.

The Russians have nothing to gain in a direct confrontation with US.... and nobody will go to war over Syria.

Tue, 08/30/2011 - 14:36 | 1615964 Calmyourself
Calmyourself's picture

Huh?   Who will go to war with this triumvirate?  They are on the same side right..  Unless nukes come out to play I would not engage just laugh..  Until Turkey comes south with Russia help..  Yeah the sunburns are a problem but they can be pared down to nuisance.

Tue, 08/30/2011 - 11:05 | 1614928 Dick Darlington
Dick Darlington's picture

Meh, Chairsatan could fix that in 15 minutes, no problem.

Tue, 08/30/2011 - 11:07 | 1614939 Oh regional Indian
Oh regional Indian's picture

First you set the world up, with a fat, in-efficient but global supply chain.

Then you ensure that no nation is self-sufficient. COnvince them, through bribery (buy their stuff for a while) or coercion (IMF) and pretty soon, no nation seems capable of feedling and clothing it's citizens with what used to be fairly self-sufficient local ecomomies.

At my vegetable seller, a full 80% fruits come from South Africa, the US and New Zealand. How can that make any sense? South Africa to Bangalore and it's cheaper than homegrown?

of course it will end, in tears.

Makes me what to shove a red hot branding iron into the eye of a globalist scum-sucker.

V

http://aadivaahan.wordpress.com/2011/08/30/humor-me/

Tue, 08/30/2011 - 12:27 | 1615312 prole
prole's picture

Oh Indian could you tell me the price you pay there retail for potatos, tomatos, grapes per pound in US dollar terms? In India with vast amounts of land and apparent all-year growing season(?) couldn't you just buy a few extra acres and grow all the vegetables and fruits imaginable for an extended family?

Tue, 08/30/2011 - 22:54 | 1617688 msjimmied
msjimmied's picture

In India, most old families have a farm, just like they will have gold. They are tenacious in holding on to what they know is true wealth and what will feed them. They have thousands of years of history that drilled that lesson in. Vivek, plenty of good farmland a little on the outskirts of Bangalore...get it while you can. Couple of acres, you don't need much. Heck, you could go even further afield, help is cheap in India. Smarts ain't gonna feed ya.

Tue, 08/30/2011 - 11:09 | 1614940 alexwest
alexwest's picture

i got a few buddies there ..

funny it wont help a thing...

 

major reason to hike is take money from system, cause as soon as local rubles are out, they are exchnaged for hard stuff and/or hard currencies.. but this action are only worse economical situation..

only solution is bring more $$/euro into belarus to stabilise rate, but Luckashneko wont do it , cause he will be forced to open country , allow foreign investements /etc..

 

so most likely nearest guys will probably make dictator disappear sooner or later..you cant be dictator w/out natural rsources, look at russia, what is going to happen if brent /light spread dispappear, and brent cost less 90..

 

russian budget ( > 500 bln$) is balanced if oil is more than 110..

watch out for that black swan, or actually big brown angry russian bear

 

alx

 

 

Tue, 08/30/2011 - 11:17 | 1614978 IQ 145
IQ 145's picture

Well, I hope he disappears sooner instead of later. I agree with you that "large forces" are interested in getting the oil price up; and furthermore the clueless here on the internet want to short the oil price now; probably be back over $100 in time for the first hard freeze. I was going to say, Thanksgiving, but that's a local holiday. Dont' want the bear is get too upset.

Tue, 08/30/2011 - 11:09 | 1614948 Bam_Man
Bam_Man's picture

Belarus clearly does not have an "exorbitant privilege".

Tue, 08/30/2011 - 11:08 | 1614950 Dr. Engali
Dr. Engali's picture

I wonder what gold is worth in their currency.

Tue, 08/30/2011 - 15:28 | 1616161 Debugas
Debugas's picture

it is impossible to buy gold as banks refuse to accept BYR currency as payment for gold. First you have to exchange BYR for dollars or euros

Tue, 08/30/2011 - 17:37 | 1616683 AUD
AUD's picture

Backwardation, with interest rates at 27%!? Unheard of.

Tue, 08/30/2011 - 11:10 | 1614958 Bam_Man
Bam_Man's picture

They should re-name their currency the Belarussian Rubble.

Tue, 08/30/2011 - 11:12 | 1614962 lizzy36
lizzy36's picture

Funny thing, is in QE2/Tepper Rally, everyone went long financial names. BAC was going to be the transmission mechanism. We all know how that ended.

I speculate that for QE3 there will only be one transmission mechanism:Commodities.

Get ready boys and girls.

Tue, 08/30/2011 - 12:18 | 1615260 Hephasteus
Hephasteus's picture

Yep. That's the 10 dollar bag of sugar post of the week.

They've been trying to make it medical as well with obama care. Trying to keep it out of commodities. But it's going to end up there anyway.

Tue, 08/30/2011 - 11:14 | 1614965 lunaticfringe
lunaticfringe's picture

Send the Bernank!

Tue, 08/30/2011 - 11:15 | 1614973 somethingelse
somethingelse's picture

and the market is on the verge of going green again.  

i guess guaranteed recession (domestic and global) is now bullish

Tue, 08/30/2011 - 11:18 | 1614987 lunaticfringe
lunaticfringe's picture

Ain't it beautiful? All that shitty news just propels it skyward. Every day.

Tue, 08/30/2011 - 11:15 | 1614974 Dr. Engali
Dr. Engali's picture

I sure am glad the S&P is holding above 1200. I'm feeling wealthier already. I think I'll go stimulate the economy and spend spend spend.

 

Sarc/off

Gonna buy more gold.

Tue, 08/30/2011 - 11:16 | 1614975 mcguire
mcguire's picture

this is an old chart, but it gives a good picture of western bank exposure to central and eastern europe...  thought it might be interesting in light of the above.

http://www.ft.com/cms/s/0/ea19fec8-028e-11de-b58b-000077b07658.html#axzz...

Tue, 08/30/2011 - 11:23 | 1615009 mcguire
mcguire's picture

austria: exposure to CEE 246B, = 55% of GDP!!! specific exposure to belarus 2.1B.. wow.

Tue, 08/30/2011 - 12:20 | 1615272 Freddie
Freddie's picture

It was an Austrian (Rothschild) bank that kicked off the last depression.

Tue, 08/30/2011 - 11:24 | 1615015 IQ 145
IQ 145's picture

A couple of years ago; a big Austrian Bank was advertising on their website that "We're not asleep at the wheel, we're forward looking and taking part in the new opportunities in Eastern europe". A lot of people had that idea, "A new Opportunity ! ".  Not so good now. I really don't knnow how close to the edge they are; but some of them have a lot of loans out in places where basically, a functioning economy was something that happened a while ago.

Tue, 08/30/2011 - 11:17 | 1614979 FoieGras
FoieGras's picture

I heard there's hyperinflation in Bagladesh, too.

Tue, 08/30/2011 - 11:19 | 1614990 Cone of Uncertainty
Cone of Uncertainty's picture

Bernanke makes me want to hyperinflate into the toilet.

Tue, 08/30/2011 - 11:23 | 1615010 swissaustrian
swissaustrian's picture

Buy the belarussian stock market in chf with a currency hedge.

Tue, 08/30/2011 - 11:35 | 1615052 NotApplicable
NotApplicable's picture

Thank God that can never happen to a global reserve currency!

Of course, it will go to instantaneous supernova first. Well, unless it becomes a black hole that swallows itself. Or both.

Tue, 08/30/2011 - 11:38 | 1615060 z123
z123's picture

those israelis are funny people, they occupy gaza and then find out that occupation is costing them a lot so they withdraw from gaza and ask the egyptians to protect them from palestinians coming from gaza !!, go protect yourself isreal and occupy gaza again, it is that simple.

Tue, 08/30/2011 - 11:43 | 1615075 Texas Ginslinger
Texas Ginslinger's picture

What inflation...??

Fidelity VP Dirk Hofschire; "Freed from inflation concerns, emerging markets including China, Brazil, and India, along with a few healthy developed economies such as Australia, have the wherewithal to end their recent tightening cycles."

https://guidance.fidelity.com/viewpoints/slowdown-or-recession

 

Tue, 08/30/2011 - 12:24 | 1615091 Construct
Construct's picture

Belarus can always join the EUSSR.

Tue, 08/30/2011 - 11:47 | 1615102 onlooker
onlooker's picture

It is my understanding that Australia recently put large cash into Belarus Tractor to increase production. EPA still has them blocked in the USA.

Tue, 08/30/2011 - 12:07 | 1615207 jm
jm's picture

I don't know anything about Belarus debt markets... even if it sells local currency debt. 

Can any locals report, if it exists, what the local currency yield curve looks like?  Seems a good test of a theory I have.

Not interested in external debt... would surely be inverted.

Tue, 08/30/2011 - 15:36 | 1616204 Debugas
Debugas's picture

as of december 2010 belarus was offering its government bonds on russian and asian markets.

It is under control of the belorussian president (he issues orders with specific amounts and terms of the bond issues the last i know of was in the amount of 15 billion (9 zeros) russian rubles with the term of up to 5 years)

Wed, 08/31/2011 - 12:07 | 1619144 jm
jm's picture

Thx

Tue, 08/30/2011 - 14:26 | 1615904 FranSix
FranSix's picture

Wowaweewa It's-a very nice!

http://www.youtube.com/watch?v=2GoCvuu0dlQ

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