Russian Economy General News: #2

sepheronx wrote:Well, regardless what they do now, sounds like CBR is now under investigation. If there are any discrepencies, I imagine there are people going to be charged. I agree with you werewolf, CB needs to be federalized. I never understood why a countries CB, which controls the currency of the nation, and interest rates, is allowed to be private? Also, they own the largest forex bank of Russia, Sberbank. (Well, over 50% of it).

Hooefully, they find discrepencies that will force them to intervene. Or, make CB a pointless organization by creating another entity to smother out CB. Recognize the currency of another CB.

Werewolf wrote:

sepheronx wrote:Well, regardless what they do now, sounds like CBR is now under investigation. If there are any discrepencies, I imagine there are people going to be charged. I agree with you werewolf, CB needs to be federalized. I never understood why a countries CB, which controls the currency of the nation, and interest rates, is allowed to be private? Also, they own the largest forex bank of Russia, Sberbank. (Well, over 50% of it).

Hooefully, they find discrepencies that will force them to intervene. Or, make CB a pointless organization by creating another entity to smother out CB. Recognize the currency of another CB.

That was made under Jelzin the Drunk because his western "Partners" told him so. Almost every single country on earth is bound by Bretton woods because US has installed so many puppets even in Russia during Jelzin ERA, where CIA where going in and out in the Kreml and have even had access to KGB headquarters. I remeber in a documentary don't know exactly if it was about tanks or helicopters but there was a mention that the KGB general resigned because Jelzin administration has ordered him to let CIA agents into the KGB, he first dismissed it and asked what bad joke this is and than he was threatened to let them in or he would find someone who would, so he resigned from his position.

sepheronx wrote:After what Austin posted about CB plans (use some forex to help ruble and possibly use gold to buy imports), Ruble dropped another 2%.

Lol oh well, maybe heads will roll in CB.

Werewolf wrote:The 20th and 21st century it is private Central Banks that are not obligated to serve the country they are printing money for and what is next century a private army that can be bought by anyone and will act against the country it is formed by?

As Sa'iqa wrote:

Werewolf wrote:The 20th and 21st century it is private Central Banks that are not obligated to serve the country they are printing money for and what is next century a private army that can be bought by anyone and will act against the country it is formed by?

During the Middle Ages Europe had no standing armies but instead relied on private feudal levies. During the Renessainse mercenary armies were more popular than at any point before or after.


And the world still worked.

As Sa'iqa wrote:

Werewolf wrote:The 20th and 21st century it is private Central Banks that are not obligated to serve the country they are printing money for and what is next century a private army that can be bought by anyone and will act against the country it is formed by?

During the Middle Ages Europe had no standing armies but instead relied on private feudal levies. During the Renessainse mercenary armies were more popular than at any point before or after.


And the world still worked.

Werewolf wrote:

sepheronx wrote:After what Austin posted about CB plans (use some forex to help ruble and possibly use gold to buy imports), Ruble dropped another 2%.

Lol oh well, maybe heads will roll in CB.

That smells more like an attempt of giving US russian gold if they are seriously trying to use Gold for ruble.

I hope not only heads will roll but also some tanks right into the CB and show them who is the man in the house.

The 20th and 21st century it is private Central Banks that are not obligated to serve the country they are printing money for and what is next century a private army that can be bought by anyone and will act against the country it is formed by?

This insanity has to stop and no more soft talk or bail outs, just jailing for traitor and enemy of the state, federalizing of the CB and rewriting constitution and the article that says the CB is private and is not obligated to serve RF.

sepheronx wrote:

Werewolf wrote:

sepheronx wrote:After what Austin posted about CB plans (use some forex to help ruble and possibly use gold to buy imports), Ruble dropped another 2%.

Lol oh well, maybe heads will roll in CB.

That smells more like an attempt of giving US russian gold if they are seriously trying to use Gold for ruble.

I hope not only heads will roll but also some tanks right into the CB and show them who is the man in the house.

The 20th and 21st century it is private Central Banks that are not obligated to serve the country they are printing money for and what is next century a private army that can be bought by anyone and will act against the country it is formed by?

This insanity has to stop and no more soft talk or bail outs, just jailing for traitor and enemy of the state, federalizing of the CB and rewriting constitution and the article that says the CB is private and is not obligated to serve RF.

That is what I was thinking. Trying to give Russian gold away. Good thing is, Russia is filled with gold and I think there are still plenty of untapped mines. I think CB should not be in charge of gold reserves. Actually, CB should not be in charge of anything other than making sure banks are somewhat in line. The rest should be based on market itself and the banks/government (Government should have gold reserve, and each bank should have their own, which I think they already do).

But the investigation will go underway. Hopefully this is the pretext of dealing with CB.

Central Bank Says Speculators Push Ruble's Value Down

Austin wrote:

Central Bank Says Speculators Push Ruble's Value Down

http://www.themoscowtimes.com/business/article/central-bank-says-speculators-push-ruble-s-value-down/510717.html

Hannibal Barca wrote:Ruble goes down INTENTIONALLY by RCB! When oil inevitably goes up again to 100 $/barrel pretty soon (IMO Q2 2015) then inflation and interest rates will be high and Russian economy will start to rally. If there was a real attack to the Ruble then MICEX would had been in trouble. You don't know too much about economy, do you guys? Volatility is great and everything is fine, average Joe will suck for the time being but hey this are suckers anyway!

Rmf wrote:Lets relax and think, the west are trying different short term methods to apply pressure...
Russian central bank should have stayed cool and actually lowered interest rates so rubble would be in more demand ,especially sinse western credit option is drying up...
The biggest challenge is on the unconventional oil producers here ,shale & tar sands , we will see Q4 financial results in 2 months, and i prognose it will go red.
Its highly doubtfull todays Saudi Arabia can increase its production and keep it going ,like it did in the 80s...
so today, the game is different.

Huy Phúc wrote:The "free world" is blabbering about the decreasing of rouble value, and claimed that Russian economy is collapsing. Oh yeah, but the truth is Russian economy is rising. Industrial and manufacturing sector in 2014 certainly can achieve the rise of 4-5%.

The "achievement" that Russia cannot fathom the West is that, the unimaginable public debt of 100%, 150%, 200%... 100-200% public debt means that annual interest is at least 5%-10% GDP. Near the brink of bankrupt. That means these goverments have two option: they welsh on the public debt, or they are destroyed by the people and then dead goverments do not need to pay the debt anymore.

With the current situation, the tragic fate of the glorious economy of the West and its Asian allies like Japan is a serious threat. That is the reason why the West was so happy when their economy manage to escape negative growth rate.

Rouble value decreasing is natural, that is the reason why Russia will not suffer the economic depression due to "bubble", like Vietnam in 2012 or Turkey, Greece in 2008-2010. In more detail, in 2013 the flow of investment into Russia was skyscraping, and much of it are short-term "bubble" FDI investment, After wrecking havoc in Turkey and Greece, the short-term investment bubble turned to Russia in 2013. However, suddenly a crisis occured in Ukraina. The bubble quickly flat down even when they had not bloated yet. Actually Moskva used that crisis to cleansed the investment flow, retained the good, reliable fund and kick the bubble away. The decreasing value of rouble is very favourable for Russian manufacturing sector, because decreasing value means the ones who hold money will suffer, meanwhile the one who create products will smile. Devaluating the currecncy is one of the tactics used for increase the exporting competitiveness in short term. Meanwhile, the owner of "bubble" investment who bought rouble in 2013 with high price, now they have to sell the rouble with low price.

So you can see that, the devaluation of rouble in 2014 is natural, in 2013 it rose and in 2014 it decreased like the shape of a wave. Moskva used a painful face when annoucing the news to the People, but then they coldly stated that rouble will continue to decrease 30% further. And 120 bil USD of FDI bubble was kicked out of Russia.

Meanwhile in the glorious and civilized West... people massively protest against the saction at Russia. They burned the regional goverment building in France, they burned EU flags. The farmer throw unsellable farm produce to the street, throw cattle feces to the road, right at the maginificant capital city of Paris.

EU does not feel pain ? OK, how about the French shipbuilder protest and throw the Mistral ship to your own parliament building ? The West, you see, took 120 bil USD of FDI from Russia but that didn't help.

The very reason for this crisis is still the same old story of 193x. The West's competitiveness is losing its advantage to BRICS, their products is heavily threaten by BRICS. But instead of do something to improve the competitiveness, the West shut down their gates and impose sanction in order to cover their weak competitiveness. And the competitiveness, therefore, is decreasing and decreasing toghether with the process of jerking off.

And as you can see, similar things happened in 193x and the imevitable results is the period of exploding and bombing in 1939-1945.

Marx is very very correct about the nature of imperialism. The imperial powers are suffering from the decrease of competitiveness and the increasing obsoleteness and senescence, but they refuse to give up your authority, therefore the whole economy go down with them. Rise and fall is natural, everybody will eventually die somday, but tragically there are still a huge number of fools who crazily and desperately want to be immortal. And there are old, aging conglomerates who have already reach the end of their life... but still desperately cling to their meaningless existence.