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    Russian Economy General News: #3

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    Post  par far Sat Jan 17, 2015 10:03 am

    US to buy 60 Russian space rocket engines worth $1bn, why is Russia doing this? Does this mean that the sanctions will be lifted and/or the Mistrals will be delivered part of this deal.


    http://www.presstv.com/Detail/2015/01/17/393433/US-to-buy-60-Russian-rocket-engines
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    Post  kvs Sat Jan 17, 2015 10:15 am

    Austin wrote:I was reading CB statement of Forex Outflow of $130 for 2015 and 120 billion for 2016.

    Considering Russia has around $385 Billion in Forex including Gold , The total outflow for this and next year is projected at $250-260 billion.

    That leaves around $125 billion .......most of this outflow are related to Foreign Debt Repayment as due to sanctions loans of companies cannot be refinance.

    Would it be wise to then pay off the loan or it would be wiser to stop all loan repayment till sanctions are removed ?

    Also how do they pay for import with such low reserves ?


    You are mixing up different things. The forex outflow is from private sources and not the CBR. The $385 billion are CBR reserve funds.

    Clearly the CBR is no longer flushing its reserves down the toilet now that the ruble is fully floating (dirty or not). Those foreign
    debt payments are not by the Russian government but by corporations. And as I have posted before, these are not even all true
    debt payments but shuffling money to offshore branches.
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    Post  Austin Sat Jan 17, 2015 10:23 am

    kvs wrote:

    You are mixing up different things.  The forex outflow is from private sources and not the CBR.   The $385 billion are CBR reserve funds.

    Clearly the CBR is no longer flushing its reserves down the toilet now that the ruble is fully floating (dirty or not).    Those foreign
    debt payments are not by the Russian government but by corporations.   And as I have posted before, these are not even all true
    debt payments but shuffling money to offshore branches.

    From what I see even government companies like Rosneft , Gazprom , Big Banks have to pay their debt and they are not getting refinanced specially from US banks , I read EU banks are refinancing it partially.

    So not all debt is private , infact CB stated most of the outflow was due to debt repayment , as Private or Public Compaies could not refinance its debt they ended up buying USD from CB by selling their Roubles earning.

    I suspect the forecast of $120 for 2015 and $75 for 2016 might exceed.


    So I think another factor is how much Oil Price Grows and how much forex they can add in this two years .


    So what Happens if they decided not to pay their debts to these banks and come with a law not to pay till sanctions are removed ?

    I suspect all the EU banks wil go in panic mode , I am not sure what exposer does these Debts have to US banks but I am certain the EU banks and to some extent US banks would panic knowing they may not get their money back.


    I suspect Putin is also helping the Oligarch to take their money out of Russia or else wats the point in having Full Capital Account Convertability and Free Flow of Money
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    Post  Austin Sat Jan 17, 2015 10:36 am

    I think it would be nice if Russian could cut a deal with Chinese and let the chinese invest 300-500 Billion USD in Russian Bonds in return for selling its Oil to China in Renminbi.

    Or better have a similar value swap agreement.

    China can easily bail out Russia if it wants it has $4 trillion in Reserves and investing in Russia would not be a dead investement like their Dead Towns they built up.

    In worst case it can sell Oil and Gas of that amount
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    Post  sepheronx Sat Jan 17, 2015 6:34 pm

    Austin wrote:
    kvs wrote:

    You are mixing up different things.  The forex outflow is from private sources and not the CBR.   The $385 billion are CBR reserve funds.

    Clearly the CBR is no longer flushing its reserves down the toilet now that the ruble is fully floating (dirty or not).    Those foreign
    debt payments are not by the Russian government but by corporations.   And as I have posted before, these are not even all true
    debt payments but shuffling money to offshore branches.

    From what I see even government companies like Rosneft , Gazprom , Big Banks have to pay their debt and they are not getting refinanced specially from US banks , I read EU banks are refinancing it partially.

    So not all debt is private , infact CB stated most of the outflow was due to debt repayment , as Private or Public Compaies could not refinance its debt they ended up buying USD from CB by selling their Roubles earning.

    I suspect the forecast of $120 for 2015 and $75 for 2016 might exceed.


    So I think another factor is how much Oil Price Grows and how much forex they can add in this two years .


    So what Happens if they decided not to pay their debts to these banks and come with a law not to pay till sanctions are removed ?

    I suspect all the EU banks wil go in panic mode , I am not sure what exposer does these Debts have to US banks but I am certain the EU banks and to some extent US banks would panic knowing they may not get their money back.


    I suspect Putin is also helping the Oligarch to take their money out of Russia or else wats the point in having Full Capital Account Convertability and Free Flow of Money

    Reason why full capital convertibility and free floating is to make speculators not attack Ruble and makes it easier to trade with, I am not entirely sure though. It was a good move imo, as it helps steady the fall of the oil prices, as well as it is pointless to have a currency convertible at high values to USD or any other. The value of the ruble isn't the problem, it is the people themselves.

    And no, not all of those are due to CBR simply giving money away. It is through Repo. As well, most banks are private in Russia, so they are not tied to CBR. Only one bank, Sberbank is. So any debt payments from other banks is through their own finances or if CBR is using forex to help them, then they should get into trouble for that (unless they really want to blow their forex away). Rumor be told, $88B in USD forex is to be converted to Rubles and handed to banks for liquidity.

    If Russia decided to hold back paying the debt, and convinced private enterprises to do so as well, EU and US banks would definitely go into panic mode, like they did when Iceland did so. The problem is, there are people in Russia, who truly believes that the sanctions will be lifted this year, so they are paying back the debt so they can get credit in the future. But I highly doubt they will get it lifted and in the end, they are screwed in obtaining credit from western institutions and they would have lost all this money handing it to the west for fake promises. Unless they are trying to show Chinese creditors that they are reliable. But regardless, I would just call bankruptcy (default) on all these debts and tell the EU and US to f off. What are they going to do? Not issue them more loans? Oh, they already do that.
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    Post  Kyo Sat Jan 17, 2015 7:09 pm

    Mogherini states that EU should restart trade and finance with Moscow
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    Post  sepheronx Sat Jan 17, 2015 7:13 pm

    Kyo wrote:Mogherini states that EU should restart trade and finance with Moscow

    This has to be quoted for its brilliance and how well typed out it was:
    Charles Templer • 6 hours ago
    A brief reminder:
    The sanctions were put in place after Crimea elected to become part of Russia again and Putin signed a treaty for it to so. There has been plenty of time since March 2014 when the treaty was signed for any dissenters in the Crimea to speak up and protest against this action. More than 90% of Crimean's voted to become part of Russia again with an 83% turnout of voters. It was not a land grab or an annexation, as claimed by EU member leaders, it was a decision made democratically in favour of what the vast majority of Crimea actually wanted. This is why no one in Crimea has protested or complained about it. Sanctions were also put in place because the US and EU accused Putin of invading Ukraine with troops and armaments. Despite all the satellite technology available no credible evidence has been provided to prove this. Putin was also accused of providing BUK missiles to East Ukraine freedom fighters who were accused of shooting down the Malaysian flight MH17. Again with all the super spying technology available no credible evidence has been provided, no proper investigation has taken place, there is a significant number of plane parts from the destroyed aircraft unrecovered still remaining at the crash site and the whole affair has been swept under the carpet...for the time being. So these sanctions are looking very weak and rather stupid. Putin has played it very cool and smart and the whole sanctions affair has backfired which is why there is talk now of removing the sanctions on the pretext that nobody wants to destroy Russia economy as it will only hurth their own. It may well be too late to woo Putin back into the fold. Putin has not allowed the grass to grow under his feet. He immediately turned to the BRICS alliance and accelerated its progress. He then turned to China for technology and military cooperation and was welcomed with open arms and other countries outside the EU are seeking cooperation with Russia. The Russian economy will be stretched for the short term there is no doubt but at some point these new alliances will kick in, new economic cooperation with the Far East and other non EU countries, including Turkey, will develop further and Russia will emerge stronger and better for it. The Sanctioneers are beginning to see this happening and they dont like it because they are the ones who will be the poorer for it in the end.

    Couldn't have said it better myself.
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    Post  sepheronx Sat Jan 17, 2015 7:27 pm

    Life after the Olympics: mountain resort of Sochi packed to capacity

    In Sochi, in the midst of the first after the 2014 Winter Olympics ski season. During the Christmas holidays his mark on the Sochi snow left more than 180 thousand. Tourists. Krasnodar Territory Governor Alexander Tkachev expects Sochi ski resorts in the winter season will be about a million people. RT correspondent Ilya Petrenko was in the former Olympic Village and talked with fans of the ski slopes.
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    Post  Vann7 Sat Jan 17, 2015 8:40 pm



    Is very important that Russia maintain the level of security in Sochi ,that they had in the olympics..if not increase it more.. because now that there is a full scale economic warfare against Russia.. the Western Anglozionist agencies will want to provoke a terrorist attack in Sochi at all cost.. to sabotage the tourism..

    However the security should not just extend to only sochi but all souther Russia and Moscow and ST petersburg..
    that is most important touristical cities . 2015 will be the year of fire .. since now France is under attack..
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    Post  kvs Sat Jan 17, 2015 10:23 pm

    Austin wrote:

    From what I see even government companies like Rosneft , Gazprom , Big Banks have to pay their debt and they are not getting refinanced specially from US banks , I read EU banks are refinancing it partially.

    So not all debt is private , infact CB stated most of the outflow was due to debt repayment , as Private or Public Compaies could not refinance its debt they ended up buying USD from CB by selling their Roubles earning.

    I suspect the forecast of $120 for 2015 and $75 for 2016 might exceed.

    The CBR reserve funds have exactly nothing to do with Gazprom's debt. Taking Gazprom as an example. The same goes
    for Rosneft. Where did you get the notion that these companies use the CBR reserve funds?

    Also, these "state" companies are not treated as part of the government finance system. They are like the
    Crown Corporations in Canada. All of their dealings are private, including their debt financing. The government
    does not pay their debts and their debts are not part of the sovereign (aka government) debt of Russia.



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    Post  Austin Sun Jan 18, 2015 4:11 am

    ^^ Not sure if this was posted but a very objective analysis on Russian debt

    Russia Credit Rating Downgrade Is Blatantly Political. Here's Why
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    Post  Vann7 Sun Jan 18, 2015 7:03 am

    kvs wrote:
    Austin wrote:

    From what I see even government companies like Rosneft , Gazprom , Big Banks have to pay their debt and they are not getting refinanced specially from US banks , I read EU banks are refinancing it partially.

    So not all debt is private , infact CB stated most of the outflow was due to debt repayment , as Private or Public Compaies could not refinance its debt they ended up buying USD from CB by selling their Roubles earning.

    I suspect the forecast of $120 for 2015 and $75 for 2016 might exceed.

    The CBR reserve funds have exactly nothing to do with Gazprom's debt.   Taking Gazprom as an example.    The same goes
    for Rosneft.   Where did you get the notion that these companies use the CBR reserve funds?  

    Also, these "state" companies are not treated as part of the government finance system.   They are like the
    Crown Corporations in Canada.   All of their dealings are private, including their debt financing.   The government
    does not pay their debts and their debts are not part of the sovereign (aka government) debt of Russia.




    Not an economist

    But i always get the impression , that people go a look at the $380 billions reserves Russia central bank have..
    and later they assume that all the debt of Russia have to be paid all in one year.. and that those reserves are the only source of income.. ie.. as if Gazprom or Rosnet and all RUssian companies with debt will not make any income..

    So have seen that before.. that some claim Russia reserves will only last for 2 years.. and no more.. completely ignoring Russia income per year.. and the income of private companies too.. So that in reality Russian Goverment
    is in good shape to pay their debts and without using the central banks 380 billions reserves funds.. is that correct?

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    Post  sepheronx Sun Jan 18, 2015 10:15 am

    Exactly Vann. Rosneft revenues are around $100B and Gazproms is roughly $80B, they can pay their own debt off. Not to mention all debt isnt due at once. Per year, they opperate on budget surpluses and that grows the domestic reserve fund.

    Forex us just being used as liquidity for banks now to refinance themselves and as a loan mechanism to pay debts off, so this money will eventualy be returned. Will take time though.

    Dumbass Kudrin states there is new taxes? What new taxes? And how would they effect businesses when new businesses dont pay any taxes in 2-3 years?
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    Post  kvs Sun Jan 18, 2015 12:27 pm

    Austin wrote:^^ Not sure if this was posted but a very objective analysis on Russian debt

    Russia Credit Rating Downgrade Is Blatantly Political. Here's Why

    I know, the government extracted some its reserves to deal with emergency situations. The same thing happened in
    2008-2009. That is why the reserve fund exists. To prop up Russia's whole financial system. But it is not a day to day
    factor in corporate finances. Think of it like a liquid tax cut when it is spent to shore up finances of Russian banks or
    vital companies. So it is not correct to associate Russian corporate debt with reserve fund depletion. The Russian
    economic model is neo-liberal capitalist and has no similarity to the state owned format of the past. Perhaps this is one
    of the better impacts of having monetarists at the helm for two decades. They prevented the establishment of a Chinese
    style system.

    Gazprom and Rosneft make income in dollars and are not affected by the decline of the ruble exchange. In fact, they
    are in a much better budget position since their expenses for labour and services in Russia are in rubles. The oil price
    drop to around $50 per barrel still leaves a juicy profit margin. Extraction costs are not more than $20 per barrel and
    most likely under $15. It is Canadian tar sands operations that require a minimum price of $35 per barrel for the open pit
    bitumen mining operations. For the in situ extraction the oil price has to be $70. The "shale" oil operations in the USA
    also require $40 dollar oil.

    The problem with the forex rate is that domestic market focused Russian companies cannot get cheap credit and must
    pay the ridiculous interest (8.5% for long term loans) imposed by the CBR. That is a real point for concern. The
    CBR must subtract the "inflation" associated with imported goods. This "inflation" is not inflation. There is no oversupply
    of rubles in the Russian market. It is such an oversupply that should be the CBR's one and only inflation concern. So
    the CBR should be able to set the corporate borrowing rate to 2% without any impact.
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    Post  par far Sun Jan 18, 2015 3:24 pm

    What is up with the Swiss Franc? Can someone please tell.
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    Post  kvs Sun Jan 18, 2015 7:07 pm

    http://www.zerohedge.com/news/2015-01-18/de-dollarization-deepens-russia-buys-most-gold-six-months-continues-selling-us-treas

    The above article makes a critical point. So-called "capital flight" figures from Russia include debt repayment. This is
    simply absurd. Capital flight is the withdrawal of portfolio investments and transfer of assets abroad. Debt payments
    are not in this category whatsoever.
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    Post  Austin Mon Jan 19, 2015 3:07 am

    Considering all the so called Western Nations Credit Rating have downgraded russian companies to near junk or junk status.

    There is no harm in declaring that Russian wont way off their loans until sanction ends on it.

    This would lead to major chaos in Western bank and create ripple effect , Russia has nothing to loose now.

    There is economic warfare played against Russia so better to respond in kind
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    Post  Austin Mon Jan 19, 2015 7:42 am

    Check the Scenario for Russian Economy under Oil Price $70 and $50 developed by Higher School of Economics Moscow

    Scroll below

    http://www.kommersant.ru/doc/2643523
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    Post  sepheronx Mon Jan 19, 2015 10:38 am

    I think I mentioned this before, years ago, and mentioned it here and mp.net - calculatuons on speculation is pointless. The problem with these analysis are that "If oil prices stay low" but does not add in "while every other sector is stagnant" then it makes sense. But in reality, while Russia loses in oil, will be gained in Agriculture and Industry. Oil and gas, like mentioned, is 18% of the GDP, and they still sell it, does not mean all other businesses are instantly gone or stagnant. Actually, what most people forget is that Russia signed deals for next X amount of years for a total of $X amount. Meaning they will either cut the total they get, or increase the volume produced to make up for the loss.

    I like the quote at the end though, and totaly right. It is the average persons fault for the decrease in consumption for quickly buying in 2014.
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    Post  Kyo Mon Jan 19, 2015 3:49 pm

    Ruin Is Our Future

    Paul Craig Roberts

    Neoconservatives arrayed in their Washington offices are congratulating themselves on their success in using the Charlie Hebdo affair to reunite Europe with Washington’s foreign policy. No more French votes with the Palestinians against the Washington-Israeli position. No more growing European sympathy with the Palestinians. No more growing European opposition to launching new wars in the Middle East. No more calls from the French president to end the sanctions against Russia.

    Do the neoconservatives also understand that they have united Europeans with the right-wing anti-immigration political parties? The wave of support for the Charlie Hebdo cartoonists is the wave of Marine Le Pen’s National Front, Nigel Farage’s UK Independence Party, and Germany’s PEGIDA sweeping over Europe. These parties are empowered by the anti-immigration fervor that was orchestrated in order to reunite Europeans with Washington and Israel.

    Once again the arrogant and insolent neoconservatives have blundered. Charlie Hebdo’s empowerment of the anti-immigration parties has the potential to revolutionize European politics and destroy Washington’s empire. See my weekend interview with King World News for my thoughts on this potential game-changer. http://kingworldnews.com/paul-craig-roberts-new-crisis-worse-russia-unleashing-black-swans-west/

    The reports from the UK Daily Mail and from Zero Hedge that Russia has cut off natural gas deliveries to six European countries must be incorrect. These sources are credible and well-informed, but such a cut-off would have instantly produced political and financial turmoil of which there is no sign. Therefore, unless there is a news blackout, Russia’s action has been misunderstood.

    We know something real has happened. Otherwise, EU energy official Maros Sefcovic would not be expressing such consternation. Although I am without any definite information, I believe I know what the real story is. Russia, tired of Ukraine’s theft of the natural gas that passes through the country on its way to delivery to Europe, has made a decision to route the gas to Turkey, thus bypassing Ukraine.

    The Russian energy minister has confirmed this decision and added that if European countries wish to avail themselves of this gas supply, they must put in place the infrastructure or pipeline to bring the gas into their countries.

    In other words, there is a potential for a cutoff in the future, but no cutoff at the present.

    These two events–Charlie Hebdo and the Russian decision to cease delivering gas to Europe via Ukraine–should remind us that the potential for black swans, and unintended consequences of official decisions that can produce black swans, always exist. Not even the American “superpower” is immune from black swans.

    There is as much circumstantial evidence that the CIA and French Intelligence are responsible for the Charlie Hebdo shootings as there is that the shootings were carried out by the two brothers whose ID was conveniently found in the alleged get-away car. As the French made certain that the brothers were killed before they could talk, we will never know what they had to say about the plot.

    The only evidence we have that the brothers are guilty is the claim by the security forces. Every time I hear government claims without real evidence, I remember Saddam Hussein’s “weapons of mass destruction,” Assad’s “use of chemical weapons,” and Iran’s “nuclear weapons program.” If a US National Security Advisor can conjure up out of thin air “mushroom clouds over an American city,” Cherif and Said Kouachi can be turned into killers. After all, they are dead and cannot protest.

    If this was, and we will never know for certain, a false flag attack, it achieved Washington’s goal of reuniting Europe under Washington and Israeli auspices. But this success has an unintended consequence. The unintended consequence is to unify Europe under the anti-immigration policy of the right-wing parties, thus empowering the leaders of those parties.

    If this surmise is correct, Marie Le Pen and Nigel Farage will find their lives and/or reputations in danger as Washington will resist the rise of European governments that do not adhere to Washington’s line.

    The consternation caused by Russia’s decision to relocate its gas delivery to Europe is proof that Russia holds many cards that Russia could play that would bring down the political and financial structures of the Western World.

    China holds similar cards.

    The two countries are not playing their cards, because they do not think that they need them. Instead, the two powers are withdrawing from the Western financial system that serves Western hegemony over the world. They are creating all of the economic institutions that they need in order to be completely independent of the West.

    Therefore, the Russian and Chinese governments reason, “Why be provocative and slap down the Western fools. They might resort to their nuclear weapons, and the entire world would be lost. Let’s just walk away while they encourage us to depart with their provocations.”

    We can be thankful that Vladimir Putin and the leaders of the Chinese government are both intelligent and humane, unlike Western leaders.

    Imagine, for example, the dire consequences for the West if Putin were to become personally involved as a result of the numerous affronts to both Russia and Putin himself. Putin can destroy NATO and the entire Western financial system whenever he wants. All he has to do is to announce that as NATO has declared economic war against Russia, Russia no longer sells energy to NATO members.

    The NATO alliance would dissolve as Europe cannot survive without Russian energy supplies. Washington’s empire would end.

    Putin realizes that the insolent neoconservatives would have to push the nuclear button in order to save face. Unlike Putin, their egos are on the line. Thus, Putin saves the world from nuclear war by not being provocative.

    Now, imagine if the Chinese government were to lose its patience with Washington. To confront the “exceptional, indispensable, unipower” with the reality of its impotence, all China needs to do is to dump its massive dollar-denominated financial assets on the market, all at once, just as the Federal Reserve’s bullion bank agents dump massive uncovered gold contracts on the future’s market.

    In order to avoid US financial collapse, the Federal Reserve would have to print massive amounts of new dollars with which to purchase the dumped Chinese holdings. As the Federal Reserve would protect US financial markets by purchasing the dumped Chinese holdings, the Chinese would lose nothing from the sale. It is the next step that is decisive. The Chinese government then dumps the massive holdings of dollars it has received from its selloff of dollar-dominated financial instruments.

    Now what happens? The Fed can print dollars with which to purchase the dumped Chinese holdings, but the Fed cannot print foreign currencies with which to buy up the dumped dollars.

    The massive supply of dollars dumped in the exchange market by China would have no takers. The dollar’s value would collapse. Washington could no longer pay its bills by printing money. Americans living in an import-dependent country, thanks to jobs offshoring, would be faced with high prices that would seriously erode their living standard. The United States would experience economic, social, and political instability.

    Putting aside their brainwashing, their defensiveness and patriotic support of the regime in Washington, Americans need to ask themselves: How is it possible that the government of the United States, an alleged Superpower, is so unaware of its true vulnerabilities that Washington is capable of pushing two real powers until they have had enough and play the cards that they hold?

    Americans need to understand that the only thing exceptional about the US is the ignorance of the population and the stupidity of the government.

    What other country would let a handful of Wall Street crooks control its economic and foreign policy, run its central bank and Treasury, and subordinate citizens’ interests to the interests of the one percent’s pocketbook?

    A population this insouciant is at the total mercy of Russia and China.

    Yesterday there was a black swan event, an event that could yet unleash other black swan events. http://www.zerohedge.com/news/2015-01-16/largest-retail-fx-broker-stock-crashes-90-swiss-contagion-spreads The Swiss central bank announced an end to its pegging of the Swiss franc to the euro and US dollar. http://www.zerohedge.com/news/2015-01-15/its-tsunami-swiss-franc-soars-most-ever-after-snb-abandons-eurchf-floor-macro-hedge-

    Three years ago flight from euros and dollars into Swiss francs pushed the exchange value of the franc so high that it threatened the existence of the Swiss export industries. Switzerland announced that any further inflows of foreign currencies into francs would be met by creating new francs to absorb the inflows so as not to drive up the exchange rate further. In other words, the Swiss pegged the franc.

    Yesterday the Swiss central bank announced that the peg was off. The franc instantly rose in value. Stocks of Swiss export companies fell, and hedge funds wrongly positioned incurred major hits to their solvency.

    Why did the Swiss remove the peg? It was not a costless action. It cost the central bank and Swiss export industries substantially.

    The answer is that the EU attorney general ruled that it was permissible for the EU central bank to initiate Quantitative Easing–that is, the printing of new euros–in order to bail out the mistakes of the private bankers. This decision means that Switzerland expects to be confronted with massive flight from the euro and that the Swiss central bank is unwilling to print enough new Swiss francs to maintain the peg. The Swiss central bank believes that it would have to run the printing press so hard that the basis of the Swiss money supply would explode, far exceeding the GDP of Switzerland.

    The money printing policy of the US, Japan, and apparently now the EU has forced other countries to inflate their own currencies in order to prevent the rise in the exchange value of their currencies that would curtail their ability to export and earn foreign currencies with which to pay for their imports. Thus Washington has forced the world into printing money.

    The Swiss have backed out of this system. Will others follow, or will the rest of the world follow the Russians and Chinese governments into new monetary arrangements and simply turn their backs on the corrupt and irredeemable West?

    The level of corruption and manipulation that characterizes US economic and foreign policy today was impossible in earlier times when Washington’s ambition was constrained by the Soviet Union. The greed for hegemonic power has made Washington the most corrupt government on earth.

    The consequence of this corruption is ruin.

    “Leadership passes into empire. Empire begets insolence. Insolence brings ruin.”

    Ruin is America’s future.
    Kyo
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    Post  Kyo Mon Jan 19, 2015 6:45 pm

    Nabiullina voids all 3 US rating agencies due to political bias
    sepheronx
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    Post  sepheronx Mon Jan 19, 2015 7:02 pm

    Kyo wrote:Nabiullina voids all 3 US rating agencies due to political bias

    I was about to post this.

    I mentioned not long ago how one option to stop speculator attacks was to bar S&P, Fitch and Moody's from Russia, and sure enough, they did!

    Add to this too: http://www.zerohedge.com/news/2015-01-18/de-dollarization-deepens-russia-buys-most-gold-six-months-continues-selling-us-treas

    Looks like Russia is just giving up on US market altogether. Smart moves IMO.
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    Post  kvs Tue Jan 20, 2015 12:27 am

    Kyo wrote:Nabiullina voids all 3 US rating agencies due to political bias

    The article posted at ZeroHedge tries to insinuate this ban was a case of shooting the messenger. They need to get a grip.
    Any agency that forecasts a 2% GDP decline for Ukraine in 2015 while claiming it will be 5.5% for Russia is a joke and cannot
    possibly give reasonable valuations and credit rankings.

    Over the last 15 years I have always noted the western credit rating firms putting Russia's ability to pay back loans in the
    category of some banana republic. It's time to toss these clowns out. They can go rate each other's noses.
    sepheronx
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    Post  sepheronx Tue Jan 20, 2015 12:34 am

    kvs wrote:
    Kyo wrote:Nabiullina voids all 3 US rating agencies due to political bias

    The article posted at ZeroHedge tries to insinuate this ban was a case of shooting the messenger.    They need to get a grip.
    Any agency that forecasts a 2% GDP decline for Ukraine in 2015 while claiming it will be 5.5% for Russia is a joke and cannot
    possibly give reasonable valuations and credit rankings.  

    Over the last 15 years I have always noted the western credit rating firms putting Russia's ability to pay back loans in the
    category of some banana republic.   It's time to toss these clowns out.  They can go rate each other's noses.

    Commenters on zerohedge seem to make mention of it. They mention how Russia has little debt yet gets lambasted while US has unpayable debt and has total perfect scores. As well, its credit ratings are lower than Greece or Argentina who have defaulted or about to, or doing it a second time. As well, like you mentioned, a nation that is quite stable and has the vast amount of enterprises and foreign trade, has a higher chance of GDP decline than a country that is in a civil war, lost the major production portion of their country and facing near total bankruptcy. Doesn't add up. I truely believe it is all regarding about phantom money, money in possible investments and the value of the Ruble to USD. A joke in itself really.
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    Post  Vann7 Tue Jan 20, 2015 4:04 am

    Paul Craig Roberts is honest and most times have very good points..
    but about marine le pen .. i disagree with his views..  
    The anti Muslin campaings in Europe is good for Christianity , and good for uniting Europe
    with Russia against terrorism..  i have heard europeans Ministers saying the french terrorist
    attacks require Europe to become closer to Russia .. because no longer is a Russia /middle east thing.. but also affect now Europe.

    The way i see it.. the charlie thing is good for the RIght Wing parties in Europe.. in the case of France it is good ,since will help Marine Le pen.. to get more votes in next elections.. that will call
    for the end of migration ,the end of the european union and leaving NATO.. Le Pen on interviews she even said she admires Putin.. Wink   So the french terrorist attack whether were real or false flag is positive for Europe becoming closer to Russia.. at the same time is negative for US /UK and France call for arming islamic fighters..  

    RUssia only needs to be careful with how they manage the contradictory event.. of embracing
    an Anti Muslin France President while at the same time not making angry the chechens.. In my view.. the Anti Muslin campaign in Europe ,can only make Europe and  RUssia closer..

    In the case of Germany im not sure if there are Right wing nationalistic parties , Pro Indepence and sovereignty that are friendly to Russia at the same time.. whatever is the case.. Le Penn winning is really good for Russia ,because she wants to leave NATO and return france to its glory days.. no longer a puppet colony of americans.

    The problem in Ukraine is that the Nationalist parties are complete retards.. and what they really are not nationalistics .. but anti Russian parties..  they have no problem today with having americans that do not speak ukrainian in government positions. top positions . look what a fraud.  Kiev is a Big Joke and contradiction... the want Independence only from RUssia... but don't mind to be colonies of USA.

    Islam is a major threat for world freedom.. and all nations needs to oppose the stealth migration that anglozionist elite are pushing in all Europe. Russia needs to flood Southern Russia with Christians to counter the ignorance of Islam.. Modernization too is the key to counter Islam.. to show modern fashion and modern music to make young generation.. more anti religious.. and is should be.. but also to flood Russia with christians to counter the Islamization
    of Russia.  

    IF Russia economy was really solid and very strong and healthy.. and there was no risk for Kiev to attack Crimea... it will be even a good idea for Russia to invite all Eastern Ukrainians and any pro Russians ukrainians to live in RUssia and leave Donesk and lugansk..  10 to 20 millions of christians Ukrainians will be a very big influence for southern Russia to counter the growth of Islam. Which is the major fuel of  terrorism.

    The major treat to RUssia territorial integrity is precisely the grow of muslins in Russia.. They do not adapt well in free secular society.. Ukraine can significantly help Russia to counter the grow of muslins in Russia. Instead of hiring muslin workers ,to hire ukrainians..

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