Posted on 12/16/2014 10:05:30 PM PST by blam
Elena Holodny
December 16, 2014
As Russia's currency crisis unfolds, Russians are scrambling to get their hands on US dollars.
Even Russians working in the oil sector are rushing to trade their rubles in for dollars.
A bank in Russia's Khanty-Mansiysk region — aka an area in Russia that produces approximately 51% of Russian oil — has completely run out of dollars, and is almost out of euros, reports Interfax.
The bank still has rubles.
"Basically, what this means is that people who work in the oil industry [in Khanty-Mansiysk] just got all of their money out of the bank in dollars," a person familiar with the matter told Business Insider.
Early Tuesday (late Monday ET), the Russian Central Bank raised rates to 17% from 10.5%. The bank's statement said the decision was driven by the need to limit significant devaluation in the ruble and inflation risks.
In a sentence, it did not work. The Russian currency fell to new lows, reaching 80 rubles to the dollar and 100 rubles to the euro on Tuesday. It first opened 8% stronger after the central bank's rate hike.
(snip)
(Excerpt) Read more at businessinsider.com ...
I thought Putin said he was going to quit using the Dollar for oil, along with a group called BRIC.
" Never before have I seen so many pieces of information to be put together in the span of just one week. This past week we were bombarded with connectable dot after connectable dot, nearly each and every one of them on their own would have caused a panic 30 years ago. I say "30 years ago" because this was before the 1987 crash, this was before anything and everything, nailed down or not ...was levered many times over in what eventually became an inflation orgy. 30 years ago, black was not white, wrong was not right and "debt" was still in its infancy of being money. Fast forward to present day and we now have a monetary system with one foot on a banana peel and the other in a grave!"
This crisis will light a fire under the BRICs. They’ll jettison the USD faster than planned.
When the dollar faces a similar fate we will all be scrambling to get our hands on gold and silver.
kind of funny since they were hoping to tank our dollar with the tighter arrangements between china and themselves, and then the whole gold ruble was going to be released, blah blah blah...
This is the sort of thing that (predictably) leads to war.
Their economy is base on oil, with the current drop in oil prices they are panicking.
Everyone in the world, not just Russians wants to get their hands on the reserve currency.
Unfortunately for the Russians, the ruble will soon be cheaper than toilet paper and Americans should buy rubles and wipe away.
Its not only the Russians scrambling to get hard currency but so are the Iranians, Saudis, Venezuelans and just about every other oil producer. They are all dependent on selling their oil to obtain the food, technological goods and services they need to survive. Otherwise they begin to wither and suffer political dissolution. Actually Russia is more stable as a culture and country than most. It underscores that there will never be another oil embargo. Oil will find its way to the shores of any country with the hard currency to pay for it.
“When the dollar faces a similar fate we will all be scrambling to get our hands on gold and silver.”
That will not happen in any of our lifetimes.
The dollar is and will remain the reserve currency and their is nothing to replace it.
Just ask the fools who bought bitcoin.
This leads to war.
The Mexican peso?
“This leads to war.”
Unless Putin wants to be embedded in a glass parking lot, Russia is not going to war against NATO.
When price floors drop on EVERYTHING following an oil crash, those countries who are self-sufficient in everything they need flourish. The rest start wars amongst themselves.
The Mexican peso is stable and most Mexicans no longer convert to dollars.
Are you kidding? Do you know what MAD is? Russia can do whatever they please, the west only has the fortitude and will to place sanction after sanction upon Russia.
Not open war, but cyber, and by proxy. Just what the Russians excel at.
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