War in Ukraine

#10,408
#10,408
MontyPython said:
Hello hyperinflation.

Russia’s central bank on Monday more than doubled the country’s key interest rate from 9.5% to 20% as its currency, the ruble, hit a record low against the dollar on the back of a slew of new sanctions and penalties imposed on Russia by Europe and the U.S. for its invasion of Ukraine.

Also

In a statement Monday, the Russian finance ministry and the central bank announced plans to order domestic exporters to sell their foreign exchange revenues starting on Feb. 28. The move will order exporters to sell 80% of all their forex revenues received under export contracts.

Over the weekend, the U.S., European allies and Canada agreed to cut off key Russian banks from the interbank messaging system, SWIFT, which connects more than 11,000 banks and financial institutions in over 200 countries and territories. The EU also announced Sunday it was shutting its airspace to Russian aircraft.

The volatility in Russian markets “does show that the freezing of the Russian central banks assets, which was decided over the weekend by the EU as well as the other western countries led by the U.S. — it shows what a significant move that is,” David Marsh, chairman of economic policy think tank OMFIF, told CNBC’s “Squawk Box Europe” on Monday.

“That is actually much more significant than the SWIFT action, which was breaking a taboo by Germany when it joined in on that over the weekend,” he said, referring to sanctions that cut several Russian banks out of the global SWIFT payments system.

“It does mean that there is going to be this enormous scramble for dollars in Russia — we’ve seen the queues outside the banks and so on.”

# # #

I believe the net/net here is that IF Russia is largely unable to use its significant central bank reserves that it had built up in preparation of the Ukrainian invasion, and IF it can't figure out a workaround (I've heard crypto is a possibility), then it likely would be forced to simply print new Rubles to pay its bills.

This situation could lead to hyperinflation and a collapse of the Ruble.

If this happens, I suspect the Oligarchs are off the Putin train.

Again, lots of IFs here. This is all new territory here to try to strangle the central bank of a large economy like Russia.

Russian ATM line yesterday...

View attachment 436355
Click to expand...


Lines. Back to the USSR. To bad most there look too young to remember what Putin has returned to them.
 
  • Like
Reactions: Paper_Towel, Ulysees E. McGill, InVOLuntary and 1 other person
#10,410
#10,410
Gandalf said:
Many thanks for this and I missed it trying to post on my phone.

That said, the argument still holds and its almost semantics. Do you think for a moment that EU members would not face enormous pressure to defend any EU country that was attacked, NATO member or no? The only reason that EU countries like Finland and Sweden are not in NATO is that they do not want to be (that may have just changed however). Bottom line is that EU should only have them join if they add value to current members and that is debatable.

Prior to this, people do not remember that Ukraine was a place plagued with massive corruption and graft (tied with Uganda) and very high drug trafficking and use. No one can doubt the people of the Ukraine's resolve in fighting for their homeland but that doesnt mean the EU would be better off with them in it. Then again, the EU may want them to incorporate all their idiotic laws. That is how Ukraine goes from corrupt democracy to dictator wanna be (Putin) to bureaucratic socialist paradise. Once in the EU, you are pretty much ruled by Germany, you have almost no say over your own courts.
Click to expand...

I think the ultimate question is where Ukraine belongs. Should it be part of Europe? If yes, let them in. If no, then Europe leaves them to fend for themselves economically and, obviously, militarily.
 
#10,413
#10,413
MontyPython said:
I think the ultimate question is where Ukraine belongs. Should it be part of Europe? If yes, let them in. If no, then Europe leaves them to fend for themselves economically and, obviously, militarily.
Click to expand...

I'm not a big fan of current admittance to NATO in the same way I wouldn't buy a house that is literally on fire, but if they can manage to hold on. I can't think if a more committed ally against Russia than these cats. If Sweden and Finland came on along with Ukraine, talk about an all time backfire for Pooty.
 
  • Like
Reactions: zeppelin128, CABVOL, NorthDallas40 and 2 others
#10,421
#10,421
PEPPERJAX said:
Private label? Sounds like a fine bourbon.
Click to expand...

My .gif collection has been refined and aged like nothing else. It is the envy of Kings. Even a short glance into the folder triggers an unexplained response of complete satisfaction. Those who have seen it report that the images smell of rich mahogany.
 
  • Like
Reactions: PEPPERJAX and Gandalf
#10,423
#10,423
Gandalf said:
Prior to this, people do not remember that Ukraine was a place plagued with massive corruption and graft (tied with Uganda) and very high drug trafficking and use. No one can doubt the people of the Ukraine's resolve in fighting for their homeland but that doesnt mean the EU would be better off with them in it. Then again, the EU may want them to incorporate all their idiotic laws. That is how Ukraine goes from corrupt democracy to dictator wanna be (Putin) to bureaucratic socialist paradise. Once in the EU, you are pretty much ruled by Germany, you have almost no say over your own courts.
Click to expand...
Just curious, but what has changed that in recent days?
 
#10,424
#10,424
Septic said:
It dissolves into the gasoline, if you use enough of it it makes it very viscous and it will stick to and burn whatever it hits. Like low budget napalm.
Click to expand...
Hey, gasoline is super expensive right now. No more low budget napalm.
 
  • Like
Reactions: AM64
New posts
You must log in or register to reply here.

VN Store



Back
Top