Another Big Win For Putin!!!

[714562]

Russia joined the IMF and World Bank & signed away all rights to ever control its own economy forever.

What exactly do you think the IMF and the World Bank do?

Anyway, the somewhat gloating tone of this thread is bullshyt. As awful as Putin is and as much as he deserves to lose, he isn't losing because anything that the West did. The era of peak oil is over and OPEC is flooding the market to make sure the U.S. fracking industry doesn't muscle in on its turf . . . which leaves Russia out in the cold.

Whatever. I'll take it.

 

[88m3]

What exactly do you think the IMF and the World Bank do?

Anyway, the somewhat gloating tone of this thread is bullshyt. As awful as Putin is and as much as he deserves to lose, he isn't losing because anything that the West did. The era of peak oil is over and OPEC is flooding the market to make sure the U.S. fracking industry doesn't muscle in on its turf . . . which leaves Russia out in the cold.

Whatever. I'll take it.

 

[FAH1223]

What exactly do you think the IMF and the World Bank do?

Anyway, the somewhat gloating tone of this thread is bullshyt. As awful as Putin is and as much as he deserves to lose, he isn't losing because anything that the West did. The era of peak oil is over and OPEC is flooding the market to make sure the U.S. fracking industry doesn't muscle in on its turf . . . which leaves Russia out in the cold.

Whatever. I'll take it.

I know breh
We have been here before breh 1997 Asian crisis, 1998 Russia, before that Mexico, Brazil and Argentina.
The horde of speculators will do this to anyone they fancy, you signed up for the IMF and World Bank, WTO this is what you have to deal with. Once you sign it doesn't matter if your economy is growing at 10%, if you have low debt and high savings rate, if you have huge hard currency deposits or low inflations.

IF you upset the West or get uppity like the Asians in 1997 you will get fukked and you will get fukked harder if you play the game by their rules.
For these developing countries you need to stop playing the game to succeed, Mahatir Mohamed did so in 1997 they screamed bloody murder, they predicted the end of Malaysia but it worked very well.

Capital controls work, years later western leaders and economists said it was the right decision after all.
Russia has excellent cash flow, massive resources it just needs capital controls and to get out of the IMF straight jacket in future to grow...things have been much worse for them and it wasn't that long ago.

 

[FAH1223]

russia has a central bank that operates independently of the west. at the end of the day your currency is as strong as the goods and services produced. half of its budget and 70% of its exports are oil and gas. even Russia realizes their need to diversify even before this crisis.

And a $200 crude price target to boot with almost no global incremental demand growth in the foreseeable futureWise to remember that there's a good amount of simpletons on this forum.

Why don't you just say Jews?

http://www.currentconcerns.ch/index.php?id=362

I'm pretty sure you all know about the oligarchs that basically bought Russia's sovereignty over its currency and economy in the 1990s under Yeltsin. They're still very much involved in the activities of its central bank. I don't know why this has to illicit the "JewS" or what have you. It's basic knowledge.

Russia is interesting its a nuclear power but does not have sovereignty over its economy or currency.

It faces the same problems as most of the developing world. Is it too much to ask for your elected officials to run your economy and your currency instead of foreign bankers?

Or maybe you do not understand how global trade and currencies work?

China never signed away its rights to ever control their own currency and neither has India.

 

[Spidey Man]

I wonder how bad Vlad is that he lost Cuba? Can't run those bombers over the Caribbean now

 

[Domingo Halliburton]

http://www.currentconcerns.ch/index.php?id=362

I'm pretty sure you all know about the oligarchs that basically bought Russia's sovereignty over its currency and economy in the 1990s under Yeltsin. They're still very much involved in the activities of its central bank. I don't know why this has to illicit the "JewS" or what have you. It's basic knowledge.

Russia is interesting its a nuclear power but does not have sovereignty over its economy or currency.

It faces the same problems as most of the developing world. Is it too much to ask for your elected officials to run your economy and your currency instead of foreign bankers?

Or maybe you do not understand how global trade and currencies work?

China never signed away its rights to ever control their own currency and neither has India.

I'm amazed the Rothschilds weren't mentioned.

 

[☑︎#VoteDemocrat]

I wonder how bad Vlad is that he lost Cuba? Can't run those bombers over the Caribbean now

Best believe Cuba had to accept some deals to toss Russian interests in the bushes

Russia's hope now is to build a base in the D.R. or Haiti

 

[☑︎#VoteDemocrat]

FINANCEMore: Russia Ruble
Russia's Largest Bank Warns Of A 'Full-Scale Banking Crisis'

• TOMAS HIRST
  

• DEC. 19, 2014, 8:59 AM
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REUTERS/Maxim ShemetovRussian President Vladimir Putin.



Evgeny Gavrilenkov, the chief economist at the investment banking arm of Russia's largest lender Sberbank CIB, has warned that actions taken by the Russian authorities to bail out Russia's troubled banking sector could cause a "full-scale banking crisis".

"If the Central Bank of Russia continues to provide refinancing in exchange for non-marketable securities that banks can generate in almost unlimited amounts, the system will gradually ramp up to full-scale banking crisis," Gavrilenkov said.

That is, the emergency measures undertaken by the central bank to pump liquidity into the country's banking system in order to prevent widespread defaults could end up coming back to bite it. In essence he thinks that banks may prove unable to pay back loans from the central bank with interest rates now set at 17% and the collateral that they pledge in exchange for it may not be of sufficient quality to cover the losses.

He estimates that servicing over 7.3 trillion rubles of debt at current interest rates will cost the banks somewhere in the region of 1.2-1.3 trillion rubles ($20 billion) a year.

Last week Russian central bank head Elvira Nabiullina announced that "the Bank of Russia plans to consider the introduction of foreign currency lending on the security of non-marketable assets" is an effort to calm investor fears about the health of the country's banks. However, Gavrilenkov suggests that this move may increase risks in the system rather than alleviate them.

Indeed he pointed the finger for the plight of the ruble, which has fallen over 40% this year, squarely at the central bank and the Russian Finance Ministry for "pumping the economy with additional liquidity". In remarks that could be interpreted as highly critical of the government, he also said the unprecedented injections of liquidity had "coincided with a significant increase budget expenditures".

There are already clear signs of stress in the banking system. The interbank lending rate, the interest rate that banks charge to lend to each other, jumped to 27.3% yesterday, the highest rate since data started being collected in 2006 according to Bloomberg. The news suggests that confidence in the banking sector is quickly eroding and that banks are becoming concerned with the quality of their peers' balance sheets.

Russian Finance Minister Anton Siluanov admitted on Friday that the country's banks have insufficient capital to meet their capital adequacy ratios.

Following his remarks Russia's lower house of parliament rushed through a draft law to give the banking sector a capital boost of up to 1 trillion rubles ($16.5 billion), Reuters reports. The bill passed three draft readings in a day, a process that frequently takes weeks to complete, in a sign that the government is concerned about the financial sector.

In a note on Thursday Morgan Stanley warned that Russian banks are a major area of concern:

"In addition to margin pressures driven by CBR interest rate hikes, risk of corporate default poses an immediate threat to banks’ earnings, in our view. Cost of risk has increased significantly in corporate portfolios over the past nine months and appears likely to accelerate from here."

These worries have already led to a significant easing of standards by the central bank. On Thursday it announced that banks would no longer have to mark their assets to market and could use the average exchange rate from the previous quarter to assess how much foreign capital they require to cover foreign-currency denominated debt repayments. In essence, the central bank is allowing the banking sector to indulge in a bit of balance sheet fiction during a time of stress.

Bank of RussiaBank of Russia emergency measures for Russian companies.



The question, however, is whether current balance sheet stress is predominantly related to the ruble exchange rate (as in, it is a liquidity problem) or whether the problems are more fundamental (a solvency problem that could lead to default and collapse). As Morgan Stanley puts it, "the Russian banking sector looks to be a risk-absorption buffer between the CBR’s policy and real economy, seemingly poised to bear the brunt of interest rate and depreciation-related adjustment".

For the Russian authorities the issue that must now be addressed is to what extent they can differentiate between banks under stress due to temporary factors and fundamentally damaged institutions. Supporting the latter could end up being an extremely costly and ultimately unrewarding enterprise for the Russian state.



Read more: http://www.businessinsider.com/sber...anking-crisis-in-russia-2014-12#ixzz3MMggwFGZ

 

[☑︎#VoteDemocrat]

Russia Pumps $16 Billion Into Its Banking Sector

• ELENA FABRICHNAYA AND ALEXANDER WINNING, REUTERS

• DEC. 19, 2014, 6:37 AM
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REUTERS/Maxim ZmeyevRussian President Vladimir Putin during his annual end-of-year news conference in Moscow on Thursday.
See Also

Ruble Strengthens After Russia Finance Minister Confirms Government Intervention

There's A Problem With Russia's Foreign Currency Reserves

The EU Is Putting The Screws To Putin


Russia's lower house of parliament passed a draft law that would give the banking sector a capital boost of up to 1 trillion rubles ($16.5 billion) on Friday, part of measures to shield banks from Western economic sanctions.

Russia's financial sector is reeling from the country's slide toward recession and Western sanctions over the Ukraine crisis that have restricted banks' access to international capital markets, driving their funding costs sharply higher.

The State Duma said on its website it had passed the bill in all three required readings — speeding up a process that can sometimes see laws languish in parliament for weeks.

Finance Minister Anton Siluanov told reporters on Friday banks could start receiving the additional capital early next year and that the law would cover all the risks banks faced.

The draft law still needs to be passed by the upper house of parliament and then signed into law by President Vladimir Putin.

The latest aid package for banks comes after the government provided state support in the form of additional capital to banks including VTB earlier this year.

The central bank also eased regulation of the banking sector earlier this week as part of measures to stabilize the ruble, which is down some 45% against the dollar this year.

The draft law does not clarify which banks could benefit, but a similar means of supporting banks was a backup option in the 2008-2009 global financial crisis.

Siluanov said the banks that would benefit would be selected based on the importance of the role they played in lending to the wider economy.

Top lender Sberbank would not receive additional capital as part of the measures, according to the head of the State Duma's financial markets committee. Sberbank could however receive additional capital from the central bank if needed.

(Reporting by Elena Fabrichnaya and Alexander Winning; Editing by Elizabeth Piper)



Read more: http://www.businessinsider.com/r-ru...oosting-banking-capital-2014-12#ixzz3MMh20E00

 

[☑︎#VoteDemocrat]

CHAOS IN RUSSIA: People Are Panic-Buying Furniture And Cars After Ruble Crashes

• TOMAS HIRST
  

• DEC. 19, 2014, 6:57 AM
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AP Photo/Pavel GolovkinA woman waits in a line to pay for her purchases at the IKEA store on the outskirts of Moscow, Russia, Wednesday, Dec. 17, 2014.

The collapse of the ruble has forced companies operating in Russia to undertake extreme measures in an effort to remain profitable as the cost of imports skyrockets. And Russians have responded by panic-buying.

Fear over price hikes has sent demand for foreign goods surging as customers try to buy goods before the stores have a chance to raise the cost further. This has led to scenes not seen in the country since the late 1990s as people queued for hours just to get into some shops.

Even large multinational companies have had to take drastic action. Well-known brands such as Apple and IKEA have had to suspend sales and increased prices over recent weeks as they struggle to keep up with the falling value of the currency, while car companies including General Motors, Jaguar, Land Rover, and Audi have all suspended shipments to the country.

Russian shoppers trying to get onto the homepage of the Apple Store over recent days have been met with a "currently unavailable" sign:

Apple



The suspension came after the company raised the price of an iPhone 6 by around 25% to 39,990 rubles in an effort to offset the currency falls.

Meanwhile, those looking to do some Christmas shopping at IKEA this week were also disappointed. An attempt to increase prices forced sales of kitchen furniture and appliances on the Swedish retailer's website to be suspended until Dec. 20 "due to a large number of customers orders".

IKEAIkea website.



Shoppers posted pictures of panic-buying by consumers in Moscow on social media as IKEA was forced to close a number of physical stores.

And here are more photos from the Associated Press showing the fevered activity at an IKEA store on the outskirts of Moscow:

AP Photo/Pavel Golovkin



AP Photo/Pavel GolovkinWomen push carts with their purchases at the IKEA store on the outskirts of Moscow, Russia, Wednesday, Dec. 17, 2014.



AP Photo/Pavel Golovkin



McDonald’s has also moved to raise its prices with the cost of a Big Mac up by 2.2% to about 94 rubles, Bloomberg reports.

Across the country consumer prices having risen around 25% in 2014, due to a combination of the ruble crash and sanctions placed by the Russian government on imports from the European Union. Staples such as pork and sugar have risen by 25%, and the price of fish and seafood has also leapt up by more than 15%.

The pace of the increases has caused a stampede of nervous shoppers trying to buy up as much as they can before retailers hike up prices even further. Russia's 24-hour news channel RBC TV has been showing the scale of the queues:


Having touched record-highs of 80 rubles to the dollar and 100 rubles to the euro on Wednesday, the currency has strengthened significantly as the government and central bank appear to finally be coordinating their actions. It remains to be seen whether it will be enough to regain people's confidence in the stability of the currency and reverse the panic of the past few weeks.



Read more: http://www.businessinsider.com/appl...ssia-due-to-ruble-falls-2014-12#ixzz3MMhP2nK6

 

[88m3]

I'd be pissed

 

[Leasy]

Putin just give up breh you Fukkin lost now the citizens are suffering.

 

[Leasy]

Putin lost but I respect bul for going against the elites but he didn't have the resources and power to win.

 

[Domingo Halliburton]

Lol at that one article. Not even forcing the banks to mark to market their securities. It would be nice to just make up the price of assets.

 

[Domingo Halliburton]

CFO of Sberbank is denying that they've had to suspend mortgages and auto loans.