Tag: ruble

“Events like this happen once a century”

Submitted by Backstopper

Telegraph

“Events like this happen once a century”: Sergey Glazyev on epochal shifts and changing ways of life

Is it possible to stabilize the ruble in three days and why don’t the Ukrainian”zombies” give up?

“After failing to weaken China head-on through a trade war, the Americans shifted the main blow to Russia, which they see as a weak link in the global geopolitics and economy. The Anglo-Saxons are trying to implement their eternal Russophobic ideas to destroy our country, and at the same time to weaken China, because the strategic alliance of the Russian Federation and the PRC is too tough for the United States. They don’t have the economic or military power to destroy us together, not separately,” says Sergey Glazyev, an academician of the Russian Academy of Sciences and former adviser to the Russian President. Glazyev spoke in an interview with BUSINESS Online about what opportunities are now opening up for the Russian economy, whether the Central Bank is pandering to the enemy and whether a new world currency will replace the dollar. Continue reading ““Events like this happen once a century””

Is Russia the REAL target of Western sanctions?

Guest Post by Kit Knightly

The first tweet I saw when I checked my timeline this morning was from foreign policy analyst Clint Ehlirch, pointing out that the Russian ruble has already started recovering from the dip created by Western sanctions, and is almost at pre-war levels:

Ehrlich states, “sanctions were designed to collapse the value of the Ruble, they have failed”.

…to which I can only respond, well “were they?”

…and perhaps more importantly, “have they?”

Because it doesn’t really look like it, does it?

If anything, the sanctions seem to be at best rather impotent, and at worst amazingly counterproductive.

Continue reading “Is Russia the REAL target of Western sanctions?”

Russia To Demand “Hostile States” Pay In Rubles For Gas

Via ZeroHedge

Putin: Don't Mess With Russia

With the ruble mostly stuck in sanctions limbo and trading around 100 to the dollar in recent days (an improvement from the USDRUB 140 hit on March 8), the Kremlin appears to have found a new way to prop up the Russian currency besides merely central bank interventions: make foreign customers of Russian gas demand it.

Continue reading “Russia To Demand “Hostile States” Pay In Rubles For Gas”

Outspooking The Lehman Apocalypse: Could A Russian Default Be In The Cards?

The American MSM is cackling at the collapse of the Russian ruble and the Russian stock market. They seem to think Russia’s loss is an American win. They are too myopic to realize a Russian collapse will just be a first domino in a worldwide conflagration. The collapse in oil prices is mainly due to a collapse in worldwide demand because we have entered a global recession. No one wins in a global recession. Central banks have shot their load. The debt binge has failed to cure a disease caused by too much debt. Deflation has taken hold and will ravage the debt laden countries. The pain is just beginning.

As a reminder – Russian debt to GDP is 20% and they still have hundreds of billions of barrels of crude oil under their land. The US has debt to GDP of 103% of GDP and shale that is worthless unless oil prices are above $80 per barrel. Oil is currently $56 per barrel. Are we really winning?

The wildcard in this is Putin. The faux journalists and toady politicians think he will back down, leave the Ukraine, and bow down to Obama. Really? Not a chance. He is more likely to launch tanks into the Ukraine and see if Obama and NATO have any balls. Obama is an amateur with 40% approval who will not be able to accomplish anything in the last two years of his failed presidency. If he pushed Putin too hard, the unintended consequences may end up being a major chapter in a future history book.

The sheep are busy preparing for Christmas while tweeting, texting and facebooking to their heart’s content. They have no idea they are being led closer to the slaughterhouse.

Tyler Durden's picture

Submitted by Tyler Durden on 12/16/2014 15:10 -0500

Via Mint – Blain’s Extra Porridge,

“Nazhmite Lyubuyu Stavku…“

Extra Comment – this might be getting serious.

 

Russia’s markets have been spanked hard despite last night’s hike. 19% currency crash and 13% down stocks in a session. Ouch! Cumulatively, over the past few weeks stocks, oil and the Ruble are off 50% plus, and bonds off 40%. This morning felt like free-fall. Expect more action from the Russians to stave off economic catastrophe… imminent capital controls are rumoured, but markets are demonstrating a massive loss of confidence.

Lots of old market hands are talking about how its similar to the Russia default and crash of ‘98 all over again.. Actually.. its worse.

Much worse.

The scale and speed of the current collapse is a magnitude greater, and the effects are accelerated and magnified by the utter absence of liquidity, and by the political stakes at play. Lots of comments about how a Russian crisis might play out and what cornered Putin may do – or be forced into. Let’s not speculate, but it seems pretty clear that any Western support to calm the crisis and stabilise markets would come at a very high personal cost to Putin. That would be a good point to get selectively involved.

It’s too early. We’ve seen a few cautious buyers get wallpapered with Russian and Ukraine paper – and done decent amount of business, but generally none of the main distressed players feel it’s yet time to get involved. “Don’t expect a V-Shaped recovery – its different and aint going to happen..” said one manager. Hope is not a strategy when it comes to Russia at present.

The big risk is whether the Russian meltdown can be contained within the borders of the Rodina. All kinds of no-see-ems suggest themselves.

What are potential knock-ons into other markets? Perhaps Russians having to unwind London Property, (we understand Russians have been very big buyers in recent weeks prefiguring potential exchange controls), or further ructions in Europe? We’re already concerned European sovereign debt is poised on a knife-edge between brutal reality and over-inflated hopes for QE. A strong nudge from a conflagurating Russia and bang goes Italy?

Or will it come from safe-haven flight triggering sell-offs across every asset class in a replay of 2008? Could a Russia default that will outspook the Lehman apocalypse be on the cards?

So much for dull Christmas markets…