Posted on 11/09/2009 3:22:34 PM PST by FromLori
As Zero Hedge speculated recently, the latest participant on the gold bandwagon is now officially Russia, which last month was said to be considering a sale of up to 25 tons of gold. That posturing did not last too long. Not only that, but Russia is now also actively participating in the dollar intervention market, buying more than $1 billion of dollars to keep the ruble low. Due to moderating inflation and a rapidly appreciating ruble, the country is now considering diversification in the same way that India and China presumable are: by shifting into dollars. Look for much more upside pressure on Gold as more and more countries become disgusted with the way Bernanke is treating both American's citizens and the country's currency. Reuters reporting:
Russia's central bank does not exclude further rate cuts before the end of 2009 and may buy gold from the state repository, Gokhran, the bank's first deputy chairman, Alexei Ulyukayev, said on Monday.
"We will buy (gold) only if conditions are adequate," Ulyukayev told reporters.
Last month, Russian media reported that the government planned to sell 25 tonnes of gold, possibly on the local market, from the repository.
Separately, Ulyukayev said the central bank has bought more than $1 billion in November on the foreign exchange market to cap the appreciation of the rouble.
The vast majority of the purchases came on Monday amid increased interest from investors in the rouble and its instruments, pressuring the Russian currency to firm further. And as for the most stinging critique of Bernanke's attempt to force the US taxpayer to become the only holder of MBS in the world, the first deputy chairman of Russia's Central Bank had this to say of just how much credibility the rest of the world has in the Fed's balance sheet (which now soon will consist almost 50% of MBS and Agencies).
Ulyukayev also said the central bank had no plans to invest again in U.S. mortgage agency bonds.
"We have fully exited from them and we have no plans to go back," Ulyukayev said. One by one, Bernanke is managing to alienate every foreign Central Bank.
Hi Jason I was wondering where you have been I have gotten kind of used to you tailing what I post so you can spew your venom. Kind of like having a stalker :)
Russia is not selling gold....India changed all that. Only retards at IMF will sell gold. And some of that IMF gold is ours!
This article is poorly written but Russia is not selling gold. That just ain’t cool now.
That article doesn’t make sense...Russia is pi**ed at Bernacke printing money, but they are going to be buying dollars instead of gold?
The russian Central Bank has no plans to invest in US mortage agency bonds again.
No Sh!t Ivan, really?
I think you are confused in fact I know you are confused never once have I spewed Hatred of the rich. Now if there are CROOKS I don’t care how much money they have they are CROOKS.
I find it interesting to surmise the control of the various central banks.
In the Russian case, it seems that Putin and his St. Pete crowd runs things, despite the long standing control of Moscow. This may be an affront to the previous “new owners” of the country.
How this all interplays is more interesting than watching a championship chess match, unfortunately with greater consequences.
At least the Russian central bank will have hard assets rather than bonds issued by a bankrupt!
Consider the source... Zerohedge.
Economic Jihad.
I hate the rich fake capitalists on Wall Street. Like Goldman Sachs welfare bums. I don't like being forced to bail out derivatives traders who take home billions in bonuses and crash our economic system. Wall Street is a gigantic parasite same as the Federal Government that bails them out
Was not always like that but Wall Street has done nothing useful for America for about a decade. They got rich off of America. I knew derivatives were poison in 1998 when LTCM got bailed out and it only got worse since then
BTW real capitalists are an industry or provide useful services.
Wall Street are fake capitalists. Are just is like the money changers that Jesus drove out of the Temple
LTCM got bailed out? You have any details?
What’s your problem? You are another admirer of Wall Street’s fake capitalists? You think Lloyd Blankfein and Jamie Dimon are capitalists? I liked it when that puke said yesterday that he was doing God’s work on Wall Street
You made a claim, I'd like to see you back it up.
You think LTCM was bailed out? Who bailed them out? How much did it cost the taxpayer?
LTCM was bailed out...by other banks. The bailout was organized by the NY Fed but no taxpayer funds were used. Interestingly, Bear Stearns declined to participate in the bailout. Some speculate that their refusal to go along with the rest of the Wall Street banks contributed to virtually nobody (other than Fed/Treasury forced JPM) wanting to help them out in their similar liquidity collapse in 2008.
That’s what happened WT
Toddster needs to google LTCM and bailout..... and he would get plenty of hits.
Unlike today, back then in 1998 the Feds were able to shame Wall Street into bailing out their own miscreants. I remember when it took place and the bailout took a while to line up. But essentially a who’s who of Wall Street chipped in to bail out LTCM. The resident genius/quant who flamed out at LTCM was Myron Scholes of the Black Scholes option evaluation method
So why would Dennis whine about that?
So why would Dennis whine about that?
LTCM bailout was about 3 billion so Wall Street was able to reluctantly pony up the money. LTCM woke me up as what evil crap derivatives are but Wall Street pursued them at much greater levels. What was once a modest bailout is today a mega-bailout. All billed to the taxpayers
Some idiots at FR don't mind paying for bailing out Wall Street and Banksters. That would be you toddster
And those banks got all their money back. So why the whining?
Some idiots at FR
Don't be so hard on yourself, you can still learn.
And are the taxpayers going to get all their money bank from the 2008-9 Wall Street/Bank bailouts? Idiot! Stooge! Buffoon!
As a general rule I am completely against government intervention. However...you knew it was coming...I do believe the government/Fed was right to intervene in the collapses of several very large banks last year. If all had been allowed to go the way of Lehman (Bear, AIG, etc.) the financial ramifications would have been catastrophic. We are in a severe recession but we would have experienced something like the decline of the 30’s (20%+ reported unemployment, massive asset deflation, falling of equity markets by 70%, etc.) if the toxic positions had been allowed to unwind unfettered. The positions were just far too large and to intertwined across the globe to simply “allow the markets to work.”
That being said, I do not agree with the government taking over ownership of assets. That is economic fascism. My preference would have been for the Fed to simply act as a monetary backstop for the necessary liquidity. Now that this ship has sailed, the objective needs to be to get the government back out of asset ownership ASAFP.
Derivatives are esoteric/vaporous financial instruments that generate exaggerated returns/losses. There should be more stringent liquidity guidelines to ensure that nothing like the liquidity collapse we have seen over the last 2 years is repeated.
Flame away...
Yes.
And very little of their money back from the auto bailouts.
I sort of agree with you but only halfway
I remember the initial bailout in late September very well and I was also very worried
But we should have made a limited and smaller response which would have contained the implosion just as well
But Wall Street pond scum took advantage of the situation and finagled much more than they needed to stop the crisis
The same pond scum that cooked up this crisis with their derivatives also lied through their teeth to get mega-bailouts from the USG
In September 2008 Henry Paulson was on the phone constantly with Lloyd Blankfein of GS before and after he got an ethics waiver permitting it
White House and Congress are very stupid and unsophisticated when it comes to slick Wall Street machinations with credit default swaps, derivatives and collateralized mortgage obligations. This is how Henry Paulson, Tim Guithner and Wall Street and Goldman Sachs operatives and participants were able to snow them and rob the US Treasury and be made whole. And it wasn't just fooling them. Great favoritism was shown by Henry Paulson who was a Goldman Sachs graduate
How about last March with the fourth AIG bailout where Goldman Sachs got a 10 billion dollar gift from the Federal Government via AIG? There was no crisis.
You can read the bailout timeline here--->>
http://bailout.propublica.org/main/timeline/index
If you believe yr own BS then go put some money on it
They’ll get paid back the same amount of dollars. They will not get paid back the same amount of purchasing power. When it’s all paid back, gold will be $10,000/oz, a cup of coffee will be $10, and a gallon of gas will be $20.
Great job banksters
Still pushing fiat money, huh?
No, Russia is buying gold and dollars (they have an export problem).
Gold is past break-out and rising steadily, even through a little profit taking by the idiots.
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