Russian Currency Tumbles As Investors Panic

[Scott]

Russian Currency Tumbles As Investors Panic

MOSCOW - Russia's currency suffered its worst week since the financial crisis of the 1990s destroyed the country's economy, dropping over 10% in just the last couple days.

With Russia teetering on the brink of recession and buffeted by fleeing investors, plummeting oil prices, costly adventures in Crimea and Ukraine, and the resulting Western sanctions, the ruble hit an historic low of 48.60 rubles to the U.S. dollar this morning.

It recovered slightly this afternoon after Russia's Central Bank pledged to intervene, though it remains unclear how much it will do and whether it will just seek to maintain the ruble at the current level or try to bring it back down.

http://news.yahoo.com/russias-currency-tumbles-investors-panic-183306310--abc-news-topstories.html

[zydeco]

Looks like a big blow to Thai tourism from Russia.

[lovetotravel]

According to this article:

http://money.cnn.com/2014/11/07/investing/russia-currency-ruble-putin/index.html

The Ruble has fallen 30% this year, 10% in the past week alone. That's a big deal for tourists. Add to that very high interest rates now. And the collapse of some big travel agencies there.

The average Russian is paying the price for Putin being stubborn.

From the above article:

The central bank said Friday that the rapid plunge in recent days could threaten Russia's financial stability, and it was ready to sell dollars again "at any moment" to steady the ruble.

It burned through $30 billion alone last month, buying rubles to brake the fall.

[zydeco]

Once again, it appears Thailand has chosen the wrong partner at the wrong time to cozy up to.

[pitrevie]

The German economy is having a hard time of it because of the sanctions so it looks as if it is working out well for the Russians. Anyway they don't need so many dollars now they have started closing MacDonalds.

[zydeco]

The German economy is having a hard time of it because of the sanctions so it looks as if it is working out well for the Russians. Anyway they don't need so many dollars now they have started closing MacDonalds.

The Germans should be a good object lesson for Thailand. This is what happens when you tie yourself too closely to a corrupt, autocratic regime whose only economic strength is based on energy--which is always bust and boom. Otherwise, Russia hasn't got much to sell, nobody wants their cultural products, their science, their industrial or engineering products. And most of all, nobody wants their tourists--except for Thailand.

[Publicus]

Said Dmitry Polevoy, chief economist for ING Bank in Russia, “Panic amongst the population is difficult to stop.”

http://www.theguardian.com/world/2014/nov/07/rouble-crashes-russian-economy-brink-recession-currency

'Panic' seems to be the operative word at the moment, from the Russian central bank to the Finance Ministry and right out onto the street.

The ruble is officially a rubble, down 30% this year, to include 10% Friday alone. The Central Bank has actually decided to stop propping up the ruble because it has basically incinerated $100 billion of their reserves on what has clearly become a hopeless cause.

The instability of currency is reviving uncomfortable memories among Russian people, many of whom suffered after the country’s default in 1998 when savings were wiped out and queues formed at exchange points as the rouble was dramatically devalued amid spiralling inflation.

Economic problems in Russia even threaten to undermine the power base of the president, Vladimir Putin, who has built his political reputation on a promise of stability, the restoration of Russia’s great power status and rising living standards. He has made few public comments about the rouble since declines began to accelerate last month.

http://www.theguardian.com/world/2014/nov/07/rouble-crashes-russian-economy-brink-recession-currency

Here toward mid-November the Russian economy could appear to be going out with the present year -- come January it may be that both 2014 and the Russian economy will be gone. Russia's best interest rate is 9.5%, nobody's buying the ruble any more, inflation is above 8%, oil is down to $80 a barrel and Putin's practicing Taekwondo.

2015 is going to be a serious comedown year for the economy and financial system of the CCP Boyz in Beijing who are presently looking at a $24 Trillion housing and property bubble bursting which economists globally know is going to set off a cascade of bursting bubbles in official banking, shadow banking, provincial and local government debt and so on and so on.

Brazil's economy remains in official recession while India remains India.

The Brics are falling.

[Jingthing]

It's a shame the people have to pay a high price to have such an odious dictator in charge. But, on the other hand, he is massively POPULAR there ...

[scubascuba3]

Said Dmitry Polevoy, chief economist for ING Bank in Russia, “Panic amongst the population is difficult to stop.”

http://www.theguardian.com/world/2014/nov/07/rouble-crashes-russian-economy-brink-recession-currency

'Panic' seems to be the operative word at the moment, from the Russian central bank to the Finance Ministry and right out onto the street.

The ruble is officially a rubble, down 30% this year, to include 10% Friday alone. The Central Bank has actually decided to stop propping up the ruble because it has basically incinerated $100 billion of their reserves on what has clearly become a hopeless cause.

The instability of currency is reviving uncomfortable memories among Russian people, many of whom suffered after the country’s default in 1998 when savings were wiped out and queues formed at exchange points as the rouble was dramatically devalued amid spiralling inflation.

Economic problems in Russia even threaten to undermine the power base of the president, Vladimir Putin, who has built his political reputation on a promise of stability, the restoration of Russia’s great power status and rising living standards. He has made few public comments about the rouble since declines began to accelerate last month.

http://www.theguardian.com/world/2014/nov/07/rouble-crashes-russian-economy-brink-recession-currency

Here toward mid-November the Russian economy could appear to be going out with the present year -- come January it may be that both 2014 and the Russian economy will be gone. Russia's best interest rate is 9.5%, nobody's buying the ruble any more, inflation is above 8%, oil is down to $80 a barrel and Putin's practicing Taekwondo.

2015 is going to be a serious comedown year for the economy and financial system of the CCP Boyz in Beijing who are presently looking at a $24 Trillion housing and property bubble bursting which economists globally know is going to set off a cascade of bursting bubbles in official banking, shadow banking, provincial and local government debt and so on and so on.

Brazil's economy remains in official recession while India remains India.

The Brics are falling.

Didn't Thatcher say you can't buck the market, UK tried around 1992 and failed with the ERM.

Russia has got a huge asset of attractive women although attitude problem contras it out.

[NeverSure]

The US and Saudi Arabia deliberately attacked Russia's economy by pumping oil to drive the world price down. The mainstay of Russia's economy is its rather recent oil boom and if powerful enough, other countries can attack Russia without firing a shot.

Publicus is dead on right. China is next.

[KittenKong]

Maybe that will mean fewer Russians in my condo building.

Dosvedanya.

[NeverSure]

Didn't Thatcher say you can't buck the market, UK tried around 1992 and failed with the ERM.

Russia has got a huge asset of attractive women although attitude problem contras it out.

And a rice scheme and...

Unless someone has a monopoly on a needed commodity, others will seize the opportunity and fill the gap.

Peak oil and all that crap is a myth. There is more oil being discovered than is being used. One might think that by the time there becomes a true shortage of oil or natural gas, technology could replace it. Who says that cars will always run on oil?

The US has more oil than all of the other countries in the world combined, and it already has 100 years worth of natural gas drilled. Unlike Russia it has a diverse economy with technology, manufacturing, service industries and farm exports.

China has to import food and oil, and Russia lives off its oil. When they run out of money they will be defeated on the world stage.

What can China or Russia buy with their near-worthless money?

[up-country_sinclair]

The US and Saudi Arabia deliberately attacked Russia's economy by pumping oil to drive the world price down. The mainstay of Russia's economy is its rather recent oil boom and if powerful enough, other countries can attack Russia without firing a shot.

Russia is also attacking without firing a shot. Russian hackers have recently infiltrated JP Morgan and other large financial institutions in the US.

[F430murci]

This breaks my heart. So many good, hard working people in Russia are really suffering right now. Once you get outside Moscow or St. Petersburg, the reality is much worse than the media portrays.

[F430murci]

The US and Saudi Arabia deliberately attacked Russia's economy by pumping oil to drive the world price down. The mainstay of Russia's economy is its rather recent oil boom and if powerful enough, other countries can attack Russia without firing a shot.

Russia is also attacking without firing a shot. Russian hackers have recently infiltrated JP Morgan and other large financial institutions in the US.

So? Who cares. This has been going on day in, day out 24 hours a day for several years.

[doctorproc156]

This breaks my heart. So many good, hard working people in Russia are really suffering right now. Once you get outside Moscow or St. Petersburg, the reality is much worse than the media portrays.

Russia really isn't that bad, spend some time on google street view and see for yourself.

[Publicus]

The US and Saudi Arabia deliberately attacked Russia's economy by pumping oil to drive the world price down. The mainstay of Russia's economy is its rather recent oil boom and if powerful enough, other countries can attack Russia without firing a shot.

Russia is also attacking without firing a shot. Russian hackers have recently infiltrated JP Morgan and other large financial institutions in the US.

Russia has highly sophisticated cyber systems of warfare and of hacking but with rare exception it is unable to hack the US government, so it has gone after softer targets such as big banks. Big banks are not soft targets but compared to the Pentagon and the NSA, big banks are softer targets.

Speaking of the NSA and Russia....

US physically hacks 100,000 foreign computers

NSA spies have inserted circuitry into computers in China, Russia, EU, India, Saudi and Pakistan to gain intelligence

The New York Times on Tuesday cited documents from the National Security Agency, computer experts and US officials stating that the NSA uses radio wave technology to gain access to otherwise encrypted computers or machines that are not connected to the internet.

The Times reported that the agency has been inserting tiny circuit boards into computers for several years. The technology allows non-internet connected computers to be hacked, and bypasses encryption and anti-spyware systems that otherwise prevent hacking over the world wide web.

The NSA calls the effort an "active defence"' and has used the technology to monitor units of the Chinese and Russian armies, drug cartels, trade institutions inside the European Union, and US allies including Saudi Arabia, India and Pakistan, the Times reported.

http://www.aljazeera.com/news/americas/2014/01/us-physically-hacks-100000-foreign-computers-20141154313871671.html

And then there's this spoof which Vlad still isn't laughing about

NSA Hacks Putin’s iPod: 'Putin' on the Hits

Finally, something fun and/or useful from the National Security Agency (NSA) Evesdropping — the tunes on Vlad Putin’s iPod:

10. ‘This Land is MY Land’

9. ‘Back in the USSR’

8. ‘Crimea River’

7. ‘Tanks for the Memories’

6. ‘Why Can’t We Be Friends’

5. Russian Army Sings "Close To You’

4. Ricky Martin, ‘Livin La Vida Loca’

3. ‘Swan Lake’ (the Black Swan)

2. Madonna, ‘Don’t Cry for Me Angela Merkel’

and Vlad’s #1 Fave: Pussy Riot’s Greatest Hits

http://planetwashington.com/2014/03/24/nsa-hacks-putins-ipod-putin-on-the-hits-2/

Edited November 8, 2014 by Publicus

[F430murci]

This breaks my heart. So many good, hard working people in Russia are really suffering right now. Once you get outside Moscow or St. Petersburg, the reality is much worse than the media portrays.

Russia really isn't that bad, spend some time on google street view and see for yourself.

I spend time there, my wife is from there and speaks to her family and friends there nightly. My wife is also an investment banker for BofA Global Corporate and Investment Banking with her entire lob in Russia. She cannot talk about it without tearing up because it is bad.

[NeverSure]

This breaks my heart. So many good, hard working people in Russia are really suffering right now. Once you get outside Moscow or St. Petersburg, the reality is much worse than the media portrays.

Russia really isn't that bad, spend some time on google street view and see for yourself.

Sit on a street corner in St. Petersburg and ogle the women.

[Publicus]

This breaks my heart. So many good, hard working people in Russia are really suffering right now. Once you get outside Moscow or St. Petersburg, the reality is much worse than the media portrays.

Russia really isn't that bad, spend some time on google street view and see for yourself.

I spend time there, my wife is from there and speaks to her family and friends there nightly. My wife is also an investment banker for BofA Global Corporate and Investment Banking with her entire lob in Russia. She cannot talk about it without tearing up because it is bad.

Two weeks ago I with associates spent an evening banquet and the next day with business people from Russia who made some buys. A couple of 'em were fluent in English (and if your wife looks anything like the buyer Marlena then From Russia With Love takes on a whole new meaning )

Anyway seven of the eight buyers were really ticked at the United States, as I could quickly discern, but all eight of 'em said they are livid at Putin because it has turned out Putin is bad for business. Moreover, the eight said it's turned out Putin is bad for the Russian economy in general.

These Russians do want to dominate and they thought they had their guy in Putin, but they now see Putin can't prevail and that Putin/Russia couldn't ever prevail, so they want this over with now and the eight would just as soon see Putin gone just to assure he can't have any further relapses of his KGB/Tsarist glories (which obviously is my summary statement of their views, feelings, concerns).

The eight said they were having a hard time buying USDollars and Euros because nobody wants to buy the rubble ruble. It's since then the central bank gave up on defending the rubble so we here are wondering if the two who did make buys will be able to follow through.

Six of the eight Russian business people said they decided against making any deal because of the ruble uncertainties, the sanctions, the risk of war, and because they really didn't know what Putin might do next. They all said the whole picture in Russia just suddenly became extremely bad very shortly after the sanctions.

[F430murci]

Pub:

Sorry man, but that sounds like bs to me. Russians, including my wife, are not critical of Putin. They view Putin as restoring Russian pride and resurrecting Russia from the ruins. My wife has a BA in Economics and Speciality Degree (MBA equivalent) in Stick Market from Novosibirisk University and an MBA from Yale and her head spins and projectile green vomit emits from her mouth ala Exorcist if you try and criticisize Putin to her. Intellectually, she of all people should see it you, but you have no clue as to Russian pride.

[Jingthing]

Well, he certainly has made a splash!

“Imagine a boy who dreams of being a KGB officer
when everyone else wants to be a cosmonaut.”

[F430murci]

Well, he certainly has made a splash!

ADV1076_coverx633.jpg

Imagine a boy who dreams of being a KGB officer

when everyone else wants to be a cosmonaut.

Really? Stop projecting your personal issues on entire continents.

[Publicus]

Well, he certainly has made a splash!

ADV1076_coverx633.jpg

Imagine a boy who dreams of being a KGB officer

when everyone else wants to be a cosmonaut.

Really? Stop projecting your personal issues on entire continents.

The Advocate said it but it does not matter who is saying it because it is true and any one of dozens and dozens of media could have said it, and many of 'em have said it in many different ways from many different perspectives, so I for one am not getting my neck bent out of shape or discolored over it.

[lovetotravel]

This breaks my heart. So many good, hard working people in Russia are really suffering right now. Once you get outside Moscow or St. Petersburg, the reality is much worse than the media portrays.

Russia really isn't that bad, spend some time on google street view and see for yourself.

Having spent 3 weeks touring Siberia, I have to say there are some extremely poor people there. I did meet some fantastic people, and met some that weren't so fantastic. But they are very poor. Moscow and St. Petersburg is completely different.

[harryfrompattaya]

This breaks my heart. So many good, hard working people in Russia are really suffering right now. Once you get outside Moscow or St. Petersburg, the reality is much worse than the media portrays.

I suggest that you start a collection this way you will feel better and help the poor fools that makeup Russia

[F430murci]

This breaks my heart. So many good, hard working people in Russia are really suffering right now. Once you get outside Moscow or St. Petersburg, the reality is much worse than the media portrays.

I suggest that you start a collection this way you will feel better and help the poor fools that makeup Russia

What??? That is a stupid arrssee statement.

[Publicus]

This breaks my heart. So many good, hard working people in Russia are really suffering right now. Once you get outside Moscow or St. Petersburg, the reality is much worse than the media portrays.

I suggest that you start a collection this way you will feel better and help the poor fools that makeup Russia

What??? That is a stupid arrssee statement.

Hard working poor Russians break the heart while hard working poor Americans are takers who break the budget.

Ghettoized Americans are thugs but Russian oligarchs are businessmen.

It takes me a half second to see the absurdity of that...and much more.

[thailiketoo]

96 to 69 Rubles to THB

[F430murci]

This breaks my heart. So many good, hard working people in Russia are really suffering right now. Once you get outside Moscow or St. Petersburg, the reality is much worse than the media portrays.

I suggest that you start a collection this way you will feel better and help the poor fools that makeup Russia

What??? That is a stupid arrssee statement.

Hard working poor Russians break the heart while hard working poor Americans are takers who break the budget.

Ghettoized Americans are thugs but Russian oligarchs are businessmen.

It takes me a half second to see the absurdity of that...and much more.

??? No clue.