Author Topic: Is the Economic War going Nuclear?  (Read 1411 times)

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Offline Libertas

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Is the Economic War going Nuclear?
« on: December 16, 2014, 08:09:58 AM »
http://www.bloomberg.com/news/2014-12-15/russia-increases-key-interest-rate-to-17-to-stem-ruble-decline.html

This is unsustainable and destablizing and in the end maybe a bit crazy.

The Ruble, perhaps it should be better called the Rubble, has been getting hammered...in no small part due to Western sanctions over Ukraine.

http://www.zerohedge.com/news/2014-12-15/first-sellside-reactions-trickle-17-rate-hike-not-enough-according-citi-jpm

The rate cut on its face is ludicrous.  The Putin Cheerwhores at ZH are giddy about 17% interest on their Rooskie investment, yet somehow oblivious to the daily devaluation of the Rubble (or the pesky matter of repatriating their winnings to whatever non-Russian state the currently luxuriate in!)...to get anything better than the LIRP/NIRP we have here, they would have to jack this rate at a level higher than the devaluation rate, which gets into ridiculous numbers, so we can dispense with that bogus rationale for this move.  Plus, any new influx of cash to the Russian banking system would be stripped off by Vlad's circle of fellow Oligarchs, much like our CentralBankers and their pals on Wall Street like to do us.  Going after the shorts both on the Rubble and on oil is the key, the real target here seems to be the Western financial power brokers.  Usually power doesn't like to be challenged, prudence and patience would dictate waiting the Russians out and see if they blink, anger and arrogance might escalate matters...to a point where ordnance starts flying.
We are now where The Founders were when they faced despotism.

Offline Libertas

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Re: Is the Economic War going Nuclear?
« Reply #1 on: December 16, 2014, 12:00:34 PM »
Ann's take - http://www.barnhardt.biz/2014/12/16/extremely-ominous-russias-central-bank-just-raised-interest-rates-to-17/

GTFO out of these bogus markets.

Well, sure, never bad advice.
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Offline Libertas

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Re: Is the Economic War going Nuclear?
« Reply #2 on: December 16, 2014, 02:36:41 PM »
Is this what the Russians were aiming for?



http://www.zerohedge.com/news/2014-12-16/russian-ruble-hereby-halted-until-further-notice



http://www.zerohedge.com/news/2014-12-16/russia-prepares-gdp-surge-consumers-scramble-spend-their-plunging-rubles

Sometimes it is hard to tell if it is your own people, other people, or any mix thereof screwing you over!

We are now where The Founders were when they faced despotism.

Offline Glock32

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Re: Is the Economic War going Nuclear?
« Reply #3 on: December 16, 2014, 02:41:25 PM »
Pretty soon they'll be lining up for hours to get toilet paper, just like the old days.
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Offline Libertas

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Re: Is the Economic War going Nuclear?
« Reply #4 on: December 16, 2014, 02:55:14 PM »
Natasha - "I heard parents and grandparents talk of lines in old Soviet days...I thought it was over-hyped nonsense."

Boris - "In most places, sh*t rolls downhill.  In Russia sh*t rolls downhill, gets carried back up by some idiot, and gets rolled back down again.  It's just a new idiots turn is all."

 ::hysterical::
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Offline Libertas

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Re: Is the Economic War going Nuclear?
« Reply #5 on: December 19, 2014, 07:49:27 AM »
http://www.zerohedge.com/news/2014-12-18/more-rubles-collapse-meets-eye

No way in Hell does Russia sell gold, they'll get the Chi-Com's to cover what they can and the rest will be churned out of the printing press, they have no other choice.

Well, they could GTFO of Ukraine and make nice nice with the Euro's, but we all know they'll never swallow their false pride!
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Offline Libertas

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Re: Is the Economic War going Nuclear?
« Reply #6 on: December 22, 2014, 09:26:18 AM »
"Today, I can say that we have entered or are entering a real, full-fledged economic crisis. Next year we will feel it clearly," - former finance minister Alexei Kudrin.

Kudrin said falling crude prices only partly accounted for the plunge in the rouble - which has fallen particularly steeply since autumn as concerns increased that the sanctions would prevent Russian companies from meeting debt obligations because they cannot access Western capital.

Kudrin forecast a series of defaults among medium and large enterprises, -- though banks were more likely to be supported by the state -- which is likely to result in rating agencies downgrading Russia's debt to "junk" status.

Russia announced plans to impose a heavy tax on grain exports since rouble volatility and high global prices have caused exports to spike. Russian news agencies reported Prime Minister Dmitry Medvedev told a meeting with officials that the country needed to hang on to its stocks.

While the currency may stabilize in the first quarter of next year, its decline will likely help to push inflation to a rate of 12-15 percent in 2015, Kudrin said. The central bank envisages next year's inflation at around 8 percent.

And even if the price of oil rose to $80 per barrel, gross domestic product was still likely to fall by more than 2 percent in 2015, Kudrin said. At $60 per barrel GDP would decline by 4 percent or more, he added, echoing the central bank's latest assessment, published last week.

http://www.reuters.com/article/2014/12/22/us-russia-crisis-idUSKBN0K011920141222?feedType=RSS&feedName=businessNews

Russian bear continues to get its berries kicked...yeah, that's a shame.  Oh, and that wheat thing?  Yeah, jacking up prices on your customers and making them pay for your own stupidty I bet goes over real well, which the idiots acknowledge with their "needing to hang onto stocks" statement.  Who do you plan to pass the cost onto next?  You're own people?

Russia is in a heap of shat and one of the few options Vlad the Nation Inhaler has shown a propensity for is territorial aggression.  Could be more of that coming...
We are now where The Founders were when they faced despotism.

Offline warpmine

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Re: Is the Economic War going Nuclear?
« Reply #7 on: December 22, 2014, 11:42:20 AM »
All this because Vlad cannot play nice in the sandbox. One would think that you must diversity your portfolio and in this case your economic gdp if you want to go around kicking other nations in the teeth but alas, Putin is nothing more than a dictator with grandeur.

Personally, I never wanted to see Russia hurting ever again like it did under the old system but the people must learn a lesson first which was you should have taken out the garbage first before you could set up a new system. We to will have to do the same thing or it will collapse again by the same asshats that have caused our current debacle.

The power brokers will have to be stripped of their wealth and influence before the system can be reset. ::rockets::
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