[Jester] HI EARLY BIRDS AND LURKERS... MIGHT BE A SHORT NIGHT TONIGHT... HAHAHAHA
[Jester] SO WHAT'S GOING IN HERE?
[jojill] Jester..could you talk about the happenings in Russia
[Jester] jojill WELL WE HAVE BEEN TALKING ABOUT THEM FOR A FEW MONTHS... DO YOU HAVE A SPECIFIC QUESTION?
[alfonse] Jester I heard some interesting figures on break evens, per country, on a Barrel of oil but can't find the link.
[Jester] alfonse I POSTED SOME THE OTHER NIGHT... LET ME SEE IF I CAN COUGH THAT BACK UP...
[Jester] jojill TALKED ABOUT THE GOLD RUBLE A COUPLE DAYS AGO....
[jojill] Jester..fox was reporting their economy is in collapse and their currency was cut in half overnite
[Jester] jojill I DO NOT THINK THAT IS TRUE... IN FACT.... LET ME BRING YOU SOMETHING REAL....
[Jester] jojill THIS ARTICLE IS RUSSIAN SO THE TRANSLATION IS SOMEWHAT OFF... BUT I THINK YOU CAN FIGURE IT OUT...
[Jester] The ruble rose sharply after record-shattering
[Jester] A VERB IS MISSING OR SOMETHING BUT THAT IS HOW IT TRANSLATES.... HAHAHAHHA
[Jester] American and European currency, which reached Tuesday marks in the 80 and 100 rubles. respectively, in the evening rebounded from a maximum of about 13-15 rubles. Dollar settlements " tomorrow "to 19.29 MSK grew by 2.86 rubles. up to 67.31 rubles. Euro at this point increased by 6.13 rubles. up to 85 rubles.
[Jester] HARD TO READ I KNOW... MEANS THAT THEY REBOUNDED FROM DROPPING EARLIER...
[Jester] After an overnight increase the key rate of the Central Bank from 10.5% to 17% of the dollar and the euro fell on the opening of currency trading on Tuesday, but within 10 minutes played fall. During the day, the ruble updated historical lows against the dollar and the euro, as at 15.09 MSK euro on the Moscow Stock Exchange reached a level of 100 rubles., Then fell back to around 90 rubles .; dollar overcame the level of 80 rubles. But then trading at around 70 rubles. for several hours.
[Jester] MEANING THAT THE MAINSTREAM BS MEDIA IS ONLY GIVING YOU HALF OF THE STORY...
[Jester] Stock market closed trading Tuesday mixed dynamics, ruble index grew, while the dollar has fallen off. The MICEX index at the end of trading on the Moscow Stock Exchange rose 1.36% to 1444.32 points, while the RTS fell to 12.41% to 629.15 points ( as of 18:50 MSK).
[jojill] Jester..that's wild..thanks
[Jester] THERE IS MORE BUT THAT IS THE GIST OF IT....
[Jester] jojill YOU SIMPLY CANNOT BELIEVE WHAT THE BUTTHEADS (Media) HERE ARE TELLING YOU... YOU HAVE TO GO OFFSHORE TO GET THE REST OF THE STORY...
[Jester] AND JUST SO YOU KNOW THIS IS NOT A BS SOURCE.... Vedomosti (Russian: Ведомости, literally "The Record") is a Russian language business daily. It is a joint venture between Dow Jones, the Financial Times and Sanoma, the publishers of The Moscow Times.
[Jester] A COUPLE DAYS AGO WE SKIRTED THIS ISSUE... AND NOW IT IS LIKE A LIGHT BULB GOING OFF IN DINAR LAND...
[Jester] Russia Could Introduce a Gold Ruble Tomorrow
[Jester] This article is a response to another piece on the idea of a gold ruble we featured. It makes the case that if it wanted to Russia could put the ruble on a gold standard with relative ease.
[Jester] The successful remonetisation of gold by a major power such as Russia would draw attention to the fault-lines between fiat currencies issued by governments unable or unwilling to do the same and those that can follow in due course. It would be a schism in the world's dollar-based monetary order.
[Jester] Russia has made plain her overriding monetary objective: to do away with the US dollar for all her trade, an ambition she shares with China and their Asian partners. Furthermore, in the short-term the rouble's weakness is undermining the Russian economy by forcing the Central Bank of Russia (CBR) to impose high interest rates to defend the currency and by increasing the burden of foreign currency debt.
[Jester] A MAJOR REASON THE US IS USING SANCTIONS TO BEAT THEM UP...
[Jester] There is little doubt that one objective of NATO's economic sanctions is to harm the Russian economy by undermining the currency, and this policy is working with the rouble having fallen 30% against the US dollar this year so far with the prospect of further falls to come.
[Jester] Russia faces the reality that pricing the rouble in US dollars through the foreign exchanges leaves her a certain loser in a currency war against America and her NATO allies.
[Jester] SOOO.... WHO IS PLAYING INTO WHO'S HANDS DO YOU THINK.... REMEMBER... THINK CHESS... MOVES PLANNED OUT WAY IN ADVANCE.... SACRIFICING A PAWN TO WIN A QUEEN ETC....
[Jester] There is a solution which was suggested in a recent paper by John Butler of Atom Capital, and that is for Russia to link the rouble to gold, or more correctly put it on a gold exchange standard*. The proposal at first sight is so left-field that it takes a lateral thinker such as Butler to think of it.
[Jester] Separately, Professor Steve Hanke of John Hopkins University has alternatively proposed that Russia sets up a currency board to stabilise the rouble. Professor Hanke points out that Northern Russia tied the rouble to the British pound with great success in 1918 after the Bolshevik revolution when Britain and other allied nations invaded and briefly controlled the region.
[Jester] What he didn't say is that sterling would most likely have been accepted as a gold substitute in the region at that time, so running a currency board was the equivalent of putting the rouble in Russia's occupied lands onto a gold exchange standard.
[Jester] Professor Hanke has successfully advised several governments to introduce currency boards over the years, but we can probably rule it out as an option for Russia because of her desire to ditch US dollar relationships. However, on further examination Butler's idea of fixing the rouble to gold is certainly feasible.
[Jester] YOU THINK THEY DON'T NEED US?
[Jester] Russia's public sector external debt is the equivalent of only $378bn in a $2 trillion economy, her foreign exchange reserves total $429bn of which over $45bn is in physical gold, and the budget deficit this year is likely to be roughly $10bn, considerably less than 1% of GDP.
[Jester] THAT IS A WHOLE LOT DIFFERENT THAN THE US....
[Jester] These relationships suggest that a rouble to gold exchange standard could work so long as fiscal discipline is maintained and credit expansion moderated.
[Jester] Once a rate is set, the Russians would not be restricted to just buying and selling gold to maintain the rate of gold exchange. The CBR has the power to manage rouble liquidity as well, and as John Butler points out, it can issue coupon-bearing bonds to the public which would be attractive compared with holding cash roubles.
[Jester] By issuing these bonds, the public is in effect offered a yield linked to gold, but higher than gold's interest rate indicated by the gold lease rates in the London market.
[Jester] Therefore, as the sound-money environment becomes established the public will adjust its financial affairs around a considerably lower interest rate than the current 9.5%-10% level, but in the context of sound money it must always be repaid. Obviously the CBR would have to monitor bank credit expansion to ensure that lower interest rates do not result in a dangerous increase in bank lending and jeopardise the arrangement.
[Jester] NOW 17%.... BUT WE SHALL SEE WHO WINS CHECKMATE IN THIS ROUND....
[Jester] READ FOR YOURSELF... http://russia-insider.com/en/business/2014/12/07/07-49-06pm/how_gold_rouble_would_work
[Jester] SOOOO.... THINK UP ANY GOOD QUESTIONS ON RUSSIA YET?
[SoldierofChrist] Jester wow it's been one heck of a chess game and we can foresee the victor
[clange] Jester That article is exactly in line with what my friend in Russia and I talked about this morning.
[Jester] clange WELL I SHOULD HOPE SO... IT WAS THEIR NEWS.... HAHAHAHAHA
[SoldierofChrist] Jester what the heck can the rest of this month hold lol geez what a ride
[Betsy Ross] SoldierofChrist you can say that again!
[TxBikerLady] Jester this is a pretty intriguing chess game, so glad to be able to watch. I may be in a nose-bleed seat, but at least I'm in the arena! Thank you
[Jester] SoldierofChrist CHRISTMAS IS COMING UP... I SUGGEST YOU ALL TAKE SOME TIME OUT FROM THE SILLY COMPUTER AND SPEND SOME QUALITY TIME WITH FAMILY... JUST SAYING...
[Jester] SEE YOU TOMORROW....