Putin’s recent speech to the Federal Assembly contained two part: a foreign policy part which was nothing short of historical, and an internal economics part which was very disappointing to say the least. In fact, I would say that it was outright frightening. I won’t post the full text here, but you can consult if for yourself by clicking here. But here is my summary of Putin’s message:
We will make every effort to aid the Russian business community, we will also make every effort to return much of the Russian money hidden abroad in offshore accounts, and we will create stability and predictability. All this is fine and dandy, except for what was not said.
- Putin did not denounce the work of the Russian Central Bank or its Chairwoman.
- Putin did not promise to sell US bonds and bring Russian money back home.
- Putin did not sack a single Russian official for incompetence or, even less so, sabotage
- Putin did not announce a major change in the status of the Ruble, no “golden Ruble” for example.
- Putin did not reject the western economic model.
- Putin announce no reform or taking over by the state of the Russian Central Bank.
- Most importantly, Putin did not announce any major change in economic policy
I have no way of knowing whether Putin sincerely believe in the western economic dogmas, of whether he has no other option than to pretend that he does, but the outcome is the same: Putin rejects the western political model while apparently still fully endorsing its economic model.
I have just listening to an interview of Mikhail Khazin and Evegnii Feodorov on the Russian New Service Radio and both of them are now openly sounding the alarm. Khazin is demanding that the Director of the Russian Central Bank be fired and arrested, while Feodorov wants the Central Bank to be completely shut down. I agree with both.
The Russian economy in general and the Ruble especially are both under direct attack, not only by official sanctions, but also by speculative operations. The price of oil is collapsing probably under a combination of objective reasons (the world recession) and deliberate US operations, yet Putin is not changing economic course in a fundamental way and he is even complimenting the Central Bank for its activities. Does that not remind you of something?
Personally, this reminds me of what happened during the last months of Anatolii Serdiukov when the Russian military was hit by one scandal after another, yet Putin continued to praise Serduikov and his work. Eventually, of course, Serdiukov was sacked and replaced by the truly outstanding Shoigu, but it took a lot of time and efforts to finally get him sacked (and even today Serdiukov has still not been sentenced by any court for his numerous criminal activities).
Does that mean that Putin is hesitant, weak or confused?
I don’t think so. I think that this shows that one of the most difficult and dangerous tasks for Putin is to get rid of the saboteurs in the top echelons of power. The same Mikhail Khazin has recently declared that only now did the “Eurasian Sovereignist” group’s power roughly match the one of the pro-US “Atlantic Integrationists” (though he did not quite use these expressions which are mine).
Hopefully Putin is setting up a Serdiukov-like sacking of Nabiulina, but this is not sure at all. The pressure is mounting for him to take dramatic action and to finally begin to de-couple the Russian economy from the western economic orthodoxy known as the Washington Concensus, but there is also a lot of resistance.
This is right now by far the biggest threat to Russia and Putin: the 5th column of saboteurs in the top echelons of power, especially the government. As long as these people will remain in power Russia will continue to remain weak and fragile and very susceptible to western economic warfare.
The Saker
I thought russians never threaten, just act, so regarding the speech, what are you complaining about.
Saker’s passion and sentimentality are good, non-bourgeois qualities but he gets prematurely excited sometimes. I imagine him whirling to Dvorak’s slavic dances.
Softly softly catchee monkey.
@Ingrian: I thought russians never threaten, just act, so regarding the speech, what are you complaining about.
About the lack of a different vision and about the praise for saboteurs.
I love Dvorak’s slavic dances. I will dance to them not when threats are made, but when action is taken.
Cheers,
The Saker
Come on! Putin is an exceptionally gifted counter-inteligence officer, for some reason he is doing what he do…
Calm down.
The man has enough on his plate.
Look, Putin went from signing a good deal with Turkey, then travelling back to Moscow to prepare for the speech to having to deal with terrorist attacks in Grozny, not sleeping and giving a speech.
Personally, I would wait. When one is trying to draw people out, you have to ask yourself, do you want to cash the small fish or the big fish?
You also have to consider that when Putin does move, he will have the support of the Russian people, as he has set the stage, educated them that the 5th column and the bank are saboteurs.
The people will support him.
and about Serdiukov … I can’t remember which blog mentioned that he’d been charged with something.
I hope this is not a sign of Putin’s economic incompetence or his lack of vision. Perhaps he is just building the right momentum to overthrow the traitors. His speeches are not entirely transparent or predictive of his future action.
Saker a few questions for you,if you don’t mind?
It seems that the Russian version(domestic)of SWIFT seems to be almost ready.They are going to test it next week.
Russian central bank is part of the BIS Basel system,which means in true reality that it is owned by Rotschild banksters.
This is not conspiracy theory it is a fact.All ‘independent so called’ central banks are.
I read an article of EAP in the Daily Telegraph(City banksters paper).This guy is a son of an MI5 agent and probably one also.
What we are seeing today(attack on the ruble,agreement between the US and the Saudis to ‘kill’ for a while,the oil price,etc etc…he has been writing this very scenario in details a long time before it even started(in march or april,if I’m not wrong).Which means that the attack on Putin and the RF was prepared and a long time ago.These bastards would not have started this financial war without a fith column inside Russia.Because they have no right to fail.Soros is also probably heavily ‘invested’ as he already has been the one behind the new Ukies Govt. with foreigners which are all working for him via Open Europe.
Do you think that these people from the fith column could act with the Military or at least a part of it to organize a ‘coup’?
We already have a financial coup to say the least.
If think that Putin simply wants to stay alive,as do not even think to nationalize the Rotchild’s BIS central banks.They will not hesitate to kill him(see Sadam,Ghadaffi and others who recently tried how they finished).
Of course RF is not Irak or Libya..
http://rt.com/business/212423-russia-payment-system-test/
“anonymous”
The Russians, and most anyone else, are threatened by a heavily militarized and fascized imperialist American government that has NO organized domestic opposition (in a population of 320 million).
This is a truly dangerous fact. The Vietnamese took 12 years and the loss of 2 million of their people to drive the American imperialists from its territory.
As with the German people of pre World War II, the American people, with few exceptions, have abrogated their responsibilities to defend their (now destroyed) Republic, and to preserve the ecology, and political and economic viability of their only Planet.
There is little room for retreat (for Russia), not from Stalingrad on the Volga, or from Donetz. The growing war in Europe (once again) is frought with dangers.
While the worst danger is for the Partisans and the Russians to lose this war, as the Defeat of the Republic in Spain opened the way for the all-out assault of the NAZI armies on Europe, victory of humanity requires a difficult fight against a bunch of criminally insane imperialist Oligarchs and their Generals.
The Permanent Court of Arbitration in The Hague has thrown the book at the Russian state, or more specifically at Vladimir Putin and his Siloviki circle from the security services.
The $51.5bn ruling against on the Kremlin unveiled this morning has no precedent in international law. The damages are 20 times larger than any previous verdict…
Lawyers for the Yukos-MGL-Khodorkovsky team tell me that they cannot pursue the foreign bond holdings of the Russian central bank if the Kremlin refuses to pay up when the deadline expires on January 15, as seems likely. Moscow has already dismissed the case as “politically motivated”.
If oil were to fall to $80 for a sustained period – and Saudi Arabia and the US could theoretically together bring this about, the latter by releasing supplies from the strategic petroleum – it would face a squeeze. Some analysts say this may happen anyway if Libya and Iran come back on stream.
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100027780/bps-faustian-pact-with-russia-goes-horribly-wrong-with-yukos-verdict/
15th of january 2015…connecting the dots?
Saker is right, he’s not being emotional at all, only realistic.
Of course sacking Nabiulina is not easy at all, the Central Bank is an independent entity, and moreover Nabiulina is one of his people, he always supported and promoted her.
But something is really binding his hands, as it always happened in crucial moments so far. Be it the euro-atlantists, the Rothschilds or the big bad wolf, this is a fact.
The problem is that half fighters lose completely.
There are forces at work trying to undermine RCB, with menaces of conviction and some other kinds of pressure, but if they will not be supported they won’t prevail. And in such a case Russia will suffer very hard.
“anonymous”
The Russians, and most anyone else, are threatened by a heavily militarized and fascized imperialist American government that has NO organized domestic opposition (in a population of 320 million).
This is a truly dangerous fact. The Vietnamese took 12 years and the loss of 2 million of their people to drive the American imperialists from its territory.
As with the German people of pre World War II, the American people, with few exceptions, have abrogated their responsibilities to defend their (now destroyed) Republic, and to preserve the ecology, and political and economic viability of their only Planet.
There is little room for retreat (for Russia), not from Stalingrad on the Volga, or from Donetz. The growing war in Europe (once again) is frought with dangers.
While the worst danger is for the Partisans and the Russians to lose this war, as the Defeat of the Republic in Spain opened the way for the all-out assault of the NAZI armies on Europe, victory of humanity requires a difficult fight against a bunch of criminally insane imperialist Oligarchs and their Generals.
Peter J. Antonsen
The United States has constructed a financial neutron bomb. For the past 12 years an elite cell at the US Treasury has been sharpening the tools of economic warfare, designing ways to bring almost any country to its knees without firing a shot.
The strategy relies on hegemonic control over the global banking system, buttressed by a network of allies and the reluctant acquiescence of neutral states. Let us call this the Manhattan Project of the early 21st century.
“It is a new kind of war, like a creeping financial insurgency, intended to constrict our enemies’ financial lifeblood, unprecedented in its reach and effectiveness,” says Juan Zarate, the Treasury and White House official who helped spearhead policy after 9/11.
“The new geo-economic game may be more efficient and subtle than past geopolitical competitions, but it is no less ruthless and destructive,” he writes in his book Treasury’s War: the Unleashing of a New Era of Financial Warfare.
The stealth weapon is a “scarlet letter”, devised under Section 311 of the US Patriot Act. Once a bank is tainted in this way – accused of money-laundering or underwriting terrorist activities, a suitably loose offence – it becomes radioactive, caught in the “boa constrictor’s lethal embrace”, as Mr Zarate puts it.
This can be a death sentence even if the lender has no operations in the US. European banks do not dare to defy US regulators. They sever all dealings with the victim.
The US Treasury faces a more formidable prey with Russia, the world’s biggest producer of energy with a $2 trillion economy, superb scientists and a first-strike nuclear arsenal. It is also tightly linked to the German and east European economies. The US risks endangering its own alliance system if it runs roughshod over friends. It is in much the same situation as Britain in the mid-19th century when it enforced naval supremacy, boarding alleged slave ships anywhere in the world, under any flag, ruffling everybody’s feathers.
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/10771069/US-financial-showdown-with-Russia-is-more-dangerous-than-it-looks-for-both-sides.html
Evgenyi Alexeevich Feodorov I really like.
It seems a reliable guy and what he says does not seem far-fetched.
In the interview that someone posted in the comments to the Khazin interview, which has no waste,he wonders what all we keep asking about Novorussia ( though no longer talk about our brothers in the Donbass every day, they are always on my mind ).
By the way, what about this mechanism that they will publish on the NLM website to know who the 5th column are. Looks very interesting, but I imagine that the page is in Russian.
I want to know who the 5th column are. Any chance we can have news of this mechanism here? (I’m thinking of the Russian team).
The Filth Column ( I misspelt it for a reason) has to be purged! Historically, the most dangerous enemies of Russia, came from Russia; Lenin, Stalin, Trotsky etc and Putin knows that. He has to be very ruthless and careful; these snakes were poisoning Russia from within for hundreds of years and this is a life-and-death situation for the Russian civilization.
What Putin did not say in his speech is like the Sherlock Holmes story about “the dog that did not bark”.
Telegraphing his punches in such an obvious way would not be clever.
I think Putin is watching the antics on Wall Street with great interest and anticipating when the ever rising US stock market has reached its peak.
The rise in $US assets is significantly driven by purchases of $US which are in turn being funded by selling almost everything else including oil and the rouble.
When the world starts to sell out of the $US is the right time to give it a little extra nudge – not a moment before.
You will find at that time, which has to be imminent, Putin will be able to nationalise the Russian Central Bank with ease “in order to stabilise the financial situation in Russia”.
If he acts before then the combined financial might that the US can bring to bear will cause much more damage than is already being inflicted on the Russian economy.
It makes no difference what the exchange rate of the rouble is so long as all the important Russian assets are in Russian hands. Where things get difficult is when Russia can be forced into a fire sale scenario such as in the 1990’s.
By keeping its powder dry and its assets safe, Russia will be able to buy whatever it wants for cents in the dollar when Wall Street next collapses.
Dear Saker
I strongly hope that you are right.
Indeed, there is a pattern, by which it is claimed that Putin holds the nomenklatura together, tightly, by allowing corruption, and at the same time trying to get things done. Now, taking these traitors down is the most delicate and serious operation which Putin and Russia have faced since 1991.
At some point, with the development of a new entrepeneurs class, the role of the oligarchs will somewhat be balanced. But surely the Dvorkovichs and their ilk are not prone to allow it.
And of course, the issue is the control of the rouble.
I hope that this is resolved for good, since this cannot continue any longer.
The Central Bank of Russia unlike Belarus National Bank, Ukraine or Kazakhstan is member of BIS.[1]
Bank for International Settlements:
According to the charter, shares in the bank could be held by individuals and non-governmental entities. The BIS was constituted as having corporate existence in Switzerland on the basis of an agreement with Switzerland acting as headquarters state for the bank. It also enjoyed immunity in all the contracting states.Between 1933 and 1945 the BIS board of directors included Walther Funk, a prominent Nazi official, and Emil Puhl, as well as Hermann Schmitz, the director of IG Farben and Baron von Schroeder, the owner of the J.H. Stein Bank.
http://en.wikipedia.org/wiki/Bank_for_International_Settlements
The central banks have a supreme central bank, The bank for International Settlements (BIS) in Basel. It was founded by Rothschild agents Charles Dawes and Owen Young alongside with Hjalmar Schacht of the Deutsche Reichsbank. About this system Bill Clinton´s mentor, member of the Council on Foreign Relations, Professor Carroll Quigley wrote in his book “Tragedy and Hope” 1975 , which was based on years of studies in the Archives of that Council:
“The powers of financial capitalism had (a) far reaching (plan), nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences.
The apex of the system was to be the Bank For International Settlements in Basel, Switzerland*, a private bank owned and controlled by the world’s central banks which were themselves private corporations.
Each central bank … sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the Country, and to influence cooperative politicians by subsequent economic rewards in the business world.”
Part one:
Putin Is Doing the Complete Bidding of the Rothschilds.
To these well-intentioned, but misguided analysts, Putin has succeeded where other world leaders have lost their lives (e.g. JFK, Hussein, etc.). As romantic and appealing as a superhero may be who will ride in and save the world from the evil bankers, nothing could be further from the truth when it comes to Putin. Whether Putin realizes it or not, he is doing the complete bidding of the big boys at the BIS and everything is moving right along according to plan.
This article explores the fact that Putin, although he may be, on the surface, resisting international banking on one level, he is very much under their control on another level.
The world’s central banks take their marching orders from the Bank for International Settlements because the monetization of the fiat currency that each central bank controls is determined by the BIS.
It can be accurately stated that the central banks are rulers of nations and represent mid-level management in the hierarchy of the process.Americans have been allowed to enjoy this most favored status because it became our task, on behalf of the BIS, to put together coalitions of central banks to force unwilling nations into this system. And when a nation, such as Libya and Iraq, attempted to swim upstream against the debt enslavement policies of these banks, the leaders were murdered and the people become indentured debt slaves. The cost to America is endless war, massive debt and a reputation for being the “Great Satan”.
Virtually, all nations have succumbed to this tyranny, with two notable exceptions, Russia and China. To a lesser extent, India has also become problematic for the BIS since they have joined Russia and China in using national currency and/or gold to conduct trade among each other rather than using the “required” dollar.
If the BIS is going to realize its dream of New World Order, Russia, China and the United States economies must all be crushed. For when the world lies in ruin, out of chaos will come order. Putin is the main driving force in making this a reality.
Part two:
Putin Has Checkmated the Central Banks At Level Two
Putin is defeating the world’s central banks at two levels. One, he is spearheading an effort to move the world away from the dollar as the world’s reserve currency. This is what the Syrian and Iranian crisis was all about (e.g. selling oil for gold rather than the Petrodollar) and Putin exposed Obama’s false flag event (i.e. gassing the Syrian rebels) for what it really was. Further, Putin now has the power to refuse to accept the dollar as payment for his gas flowing into Europe. If the Petrodollar dies, what will happen to the US economy? If this does happen, we will find out very quickly why DHS purchased 2.2 billion rounds of ammunition to go with its 2700 armored personnel carriers.
Second, Putin is threatening to become the main supplier of energy on the planet. With the consummation a recent gas deal between the Russians and the Chinese, Putin is undermining the control of energy that the central banks have enjoyed since the early days of the creation of Saudi Arabia to oversee oil production.
Putin is spitting in the face of the Federal Reserve and the other G7 central banks by encouraging Iran to sell its oil for gold. This is turning international finance on its head. Putin also has enough of a military presence, along with nuclear weapons, to stave a direct conventional invasion of his country. Putin has positioned himself to control the energy needs of Europe as the Europeans will be forced to choose between heating their homes or remaining a military ally of the US. This will eventually lead to a disintegration of NATO, thus enhancing Putin’s military power by comparison.
Part 3:
Has Putin Really Killed the New World Order?
The march of the G7 toward consolidating national power under the central banks has stopped dead in its tracks. Russia, China, India and to a lesser extent, Brazil and South Africa are now charting their own independent economic course. When Libya refused to regionalize and weaken its currency and they were adamant about avoiding the debt slavery, their leaders were murdered and their country was conquered by al-Qaeda proxy forces supported by the funds of the G7.
However, Russia and China are not Libya and Iraq. Both nations possess nuclear weapons and sizeable armies. For the moment, the dream of a New World Order appears to be dead. Or is it?
The BIS Employs the Sun Tzu Strategy of “Death’s Ground”
The G7 central banks are impotent against Putin as he has outmaneuvered them at every turn. But for the big boys at Basel, things are proceeding according to plan. If the BIS has to sacrifice some of its central banks to get what it wants, so be it. The BIS will also think nothing of fermenting the conditions for the next world war.
Over 2,000 years ago, Chinese military strategist, Sun Tzu, imparted a knowledge of military strategy which is still being taught in our service academies and in our war colleges. One of the primary principles of Sun Tzu consists of the concept of placing one’s soldiers on “death’s ground” if you want them to fight hard and achieve victory against all odds. The best military example that comes to mind is what happened to the WWII Normandy invasion force at Omaha Beach on June 6, 1944. These men were thrown onto a beach where there was no retreat and they were only going to leave the beach dead or victorious. The BIS has employed a Sun Tzu strategy of placing its second level of power, the central banks, on death’s ground. The G7 central banks will conquer Putin, or they will die. However, before rigor mortis sets in, the G7 nations will commence a world war based on economic survival. Again, out of chaos will come order.
Part 4:
World War III Is Inevitable
The failure of the central banks to corral and control Putin has made World War III a likely scenario. As Putin continues on the path of destroying the dollar as the world’s reserve currency, what will the Federal Reserve do? There will be a war to preserve the status quo. As China, Russia and the United States are drawn into a confrontation, the world’s economy will be obliterated along with billions of lives. In the aftermath of the coming global holocaust, the supreme financial rulers of the planet will be waiting to create order, the New World Order, out of chaos.
A willing pawn of the NWO, or not, Putin is no hero. He is doing exactly what is expected. Make no mistake about, the BIS controls the central banks, world finance and Putin. The New World Order is very much alive.
The Central Bank issue is indeed a strange anomaly in the Russian situation.
There can be no doubt whatsoever the Chair of the RCB is a proxy for the US/Western banking cartel.
A simple, but effective, strategy will be to hold off for a while and once the ordinary citizens really start to feel the effects of the punitive ‘sanctions’ then it be then time to point the finger squarely at the traitors embedded at the RCB.
They will be lucky to be on the receiving end of treason charges, because surely when the public become aware of their role as operative for the AZE then lynching is likely.
Saker,
As I recall Mark Sleboda has taken a position that Putin is too little too late. (Sorry, I can’t be more specific but it was a few months ago.) What would it take for you to come to agree with him?
One of the lead articles on Itar-Tass news is about the Russians and Chinese comparing how they handle corruption. http://itar-tass.com/en/economy/765780
I think there is more to this than one may think.
China has a very experienced member of the Standing Committee Wang Qishan who knows where all the crooks and thief’s and corruption is in government and businesses. http://en.wikipedia.org/wiki/Wang_Qishan
He is nailing hugely important figures in SOEs, Military, and Central Government.
Zhou Yongkang
http://www.reuters.com/article/2014/12/06/us-china-corruption-idUSKCN0JJ1RV20141206
How the investigations are made, how the culprits are taken down are high skills.
China, additionally, has a French system of prosecution. They have the proof, then arrest you, and you have to prove your innocence. Not many crooks get off.
Putin just made a statement on the legal system in Russia, and a statement on the Constitution.
http://itar-tass.com/en/russia/765788
http://itar-tass.com/en/russia/765778
All these news items are a crescendo. The sh*t is about to hit the fan.
He has no choice. He must clean out the Liberals and get the economy and efficiency of the nation going. He pleaded in his speech. That is the last time they will hear the soft message. Next, will come the sledgehammer.
It is matter of national security to get Russian’s economy going. He can declare an emergency and take over any institution or ministry and make wholesale changes.
He needs to do it before he gets blamed for the collapse.
PARIS, December 8. /TASS/. France’s delivery of Mistral helicopter carriers to Russia is closely connected with implementation of the Minsk peace agreements on Ukraine, French daily newspaper Le Figaro quoted President Francois Hollande as saying.
http://itar-tass.com/en/economy/765685
Hi Saker, could you please get this translated to English using Google Chrome to see if this is anyhow true… Seems like these documents (in the pictures section) are not fakes…
http://www.pluska.sk/spravy/zo-zahranicia/internetom-koluje-sokujuca-sprava-miliony-ukrajine-plati-usa.html
Thanks.
@Anon 22:14
Link to the EAP article you mention, please.
Dear The Saker,
I think Putin is managing this very carefully. I picked up in his speech two important points.
He clearly stated that it was speculators drivig down the rouble and that the Central Bank (CB) has the tools to stop this and go after the speculators. I saw this as him throwing down the gauntlet – they got the message. This information also went public so everyone will know who to blame – the CB – when things turn sour – they are now exposed.
At the same time the Head of the Intelligence service came out about this too and laying the blame firmly at the door of the perpetrators. The radio interview you refer to is further adding to the public opinion and more exposure – so when it comes to a head the public will be fully on board.
I thought it was rather interesting that Medvedev is going to do a tv interview shortly – he is not the President anymore but the Atlanticists are obviously feeling the need to get their man in the spot light…..so things aren’t going their way……
Patience – it is all going to come tumbling down – the Chairwoman is going to be seen by the majority of the Russian public as a traitor and many more.
Rgds,
Veritas
I wonder what to make of his statement:
> I’d like to ask the Bank of Russia and the Government to carry out tough and concerted actions to discourage the so-called speculators from playing on fluctuations of the Russian currency. In this regard, I’d like to point out that the authorities know who these speculators are. We have the proper instruments of influence, and the time is ripe to use them.
Why is he barking this time? Normally he just bites, if he can. Odd.
The only explanation I could come up with is that it’s some secret signal to some people in places he cannot otherwise contact without blowing their cover.
Honk
The international banking mafia’s power is not to be underestimated and it would be foolish to go head to head with them unprepared. Anonymous at 22:14 mentioned the Russian version of SWIFT which might be one of the things that are being put in place so when the fifth column is taken out, they can’t take the whole country down with them.
Central banks are the sanctuary of the new world order. No-one ever challenged them. Not even the most powerful men in history (Hitler,napoleon…). If Putin makes it it would be a (counter)revolution.
The Russian strategy of communication is to play weak and then act. This is what they have done earlier during the ukrainian war when the NRF were supposedly disorganized and Strelkov was complaining and so on, just before they ‘miraculously’ crushed the Ukrainians.
I believe that the people publicly pushing Putin to shut the central bank are allowed to do so on purpose, in order to prepare the opinion. If not what’s the point of having them?
Putin will face/use unprecedented levels of violence as he tries to conquer the central bank because this is the core of the system. He needs all the public support he can get in order not to look like a dictator.
> Putin did not announce a major change in the status of the Ruble, no “golden Ruble” for example.
Which would the most stupid thing to do if he is still in the process of acquiring more gold. Current gold prices are a windfall for the East.
Similar is true for all your other disappointments, it’s being disappointed about the fact that Putin did not bash and abandon South Stream – before getting Turkey on board.
In other words: If any leader has shown to know his tactics and strategies, and is on the side of actual, normal human being, than it would be Putin.
I’m only disappointed of the fact that I can’t be a fly on the wall when Putin and his closest advisors and friends are talking – or a fly in his brain.
Honk
The web where it seems to be posting the formula to find out who is 5th column and who is not rusnod.ru
Zhou Yongkang: The link you supplied ending in 78 in which Putin affirms the desirability of being able to change the constitution is interesting because the RCB’s powers are reiterated there.
Wd be great to get rid of that provision.
Btw: Chairwoman of RCB, Nabuilina was appointed by Putin, was a protege of his. Seems she went wrong anyway.
I think Putin knows it’s best to compartmentalize and deal with one disaster at a time. While dealing with the west, he is quietly laying the groundwork for dealing with the banksters at a later date. That means he has to prepare for the hell they will unleash the moment he makes his move against them. Such as setting up a national payment system for they will surely kick Russia out of SWIFT should he move against the central bank. Waiting for the price of oil to stabilize and eventually rebound because he will need cash reserves to fight back. ETC.
While doing all this, he has to reassure the banksters that they have nothing to worry about. That he is really on their side. I doubt they believe him but just as Putin has to be cautious dealing with them, they have to be cautious dealing with him. Reassurance, even if not believed, causes hesitation and indecision.
As nearly every other country in the world, Russia is a member of the IMF. The rules of the IMF include that the Central Bank must be independent of the government. The IMF through the Central Bank (or the other way around) is supposed to keep track of the country’s economy to make sure they don’t damage the world economy. ….and, if they have loans, can pay them back.
Because the IMF was originally set up to ensure economic stability in the world, all members get to see the details of the economic policies of all the others.
Wikipedia says
So there you are. How much they put in and how many votes they have depends on the size of their economies BUT this is revised only ever 5 years. USA is currently on top with as many votes as the next 3 nations put together, although it has just slipped to the 2nd size economy behind China.
Wiki does mention,disapprovingly,that Argentina refuses inspection of its books but this hasn’t got it kicked out. So this is possible. The independent Central Bank is meant to take the usual “received wisdom” steps to stabilise the exchange rate and inflation etc, which accounts for what the Russian Central Bank has been doing.
So, it is very sensible of Putin to NOT talk publicly about the details of his economic plans….if he doesn’t want steps taken to sabotage it. It cold cause difficulties to withdraw from IMF,so he’d ave to really think hard about that one. Best he can do for short term, without arousing suspicions, is to get a bank Governor who sees eye to eye with him, and can find ways of justifying non-standard actions to the IMF (ie the strongest member, the USA). It may not have been designed as a instrument of the US but it has certainly developed that way.
Besides even without all this, Putin’s style is to sit back and watch and nod and smile and wait, then ACT when he’s ready. He doesn’t go around telegraphing his punches. He does a lot of what-ifs, has a plan A plan B and plan C, and when the time is right for one of them, he produces it. He doesn’t miss opportunities, because he’s thought about what he’d do if this or that chance came up. This most likely includes juggling with his local oligarchs and other power brokers.
The man studied law and did his thesis on international trade. It’s not his first year as President. He has very powerful opponents looking to bring him down. Why would be go yapping about his plans? he doesn’t owe it to anyone to explain them in advance.
Saker,
Just my 2 cents:
1- Putin did not fully endorse the western dogma. One important aspect of said dogma is globalization and open economy. The speech though repeatedly talks about independence and imports substitution. In my view Putin called for a national liberal economy, as opposed to a western-style globalized liberal economy.
2- Some of the changes you seem to support – central bank takeover, fundamental monetary policy change, massive economic power grab from liberal elites – are probably not the kind of changes you want to announce in advance, discuss for a few weeks in various committees and then slowly implement. These things are better done by a small team in a few hours in the middle of the night one week-end without warning and announced on the next morning once everything is under control, in order to avoid monetary speculation, capital flight and such things.
My guess is Putin would really like a non-globalized but liberal economic policy to work. But if it doesn’t work then the change in direction will be so swift it will make the Georgia war and Crimea de-ukrainization look like slow, long-runnung operations.
Regards
Saker, the Central Bank is key.
Your anti-soviet past seems to still be present, preventing you to admit your own contribution to the colonization of Russia (no hard feelings).
Putin has one – and only one – shot left (his 2nd) to nationalize the CB, thus liberating the country and eventually the world from the “Empire”. The support of his people must be guaranteed – without it the system will devour him trying and everyone counting on him.
If you missed it, he did attack the very basis of the CB’s policy refering to IMF-rules: he denied Russia’s people to be less-developed.
Anonymous said, “There can be no doubt whatsoever the Chair of the RCB is a proxy for the US/Western banking cartel.”
Anonymous I call your attention to the fact that she is merely carrying out the law as embodied in the constitution, the law on central banking and the law embedded in Russian membership in the IMF.
It is predominantly the SYSTEM that is rotten. That’s partially why I think it wd be so much better if Russia can get other countries to withdraw from IMF simultaneously & also nationalize their central banks and currencies.
Russia has a central bank that is not under the full control of the government. Russia also has a state fund which is not under the control of the central bank.
The state fund is now starting to function as a shadow bank. Funds are being disbursed to provide loans for Russian capital investments and to enable business to meet their foreign currency needs.
It may be that the central bank is largely impervious to a government takedown however if it is not used then it becomes less relevant.
There’s a reason for all the gold buying. In order to cover the ruble it is not necessary to have 1:1 coverage. At some point the government could choose to take control of the currency by backing it from the state fund Shadow bank.
It is always very difficult to make major/fundamental structural changes, not only in respect of the disruption and damage to the general population but also of course the vested interests.
It really needs to get bad before these things can be changed without serious backlash.
Putin has indeed announced major changes to the nations foreign policy, but look how bad things had to get there before he did so.
Truth is, the economy could be better, but its not yet that bad.
One thing though, the Chinese deals and Turkstream show exactly how Putin will act when pressed. I do wonder if he and key allies are planning a new architecture to enable the full removal of their currencies from exposure to US speculation but without losing the benefits of free floating exchange?
ANONYMOUS @ 22:31: The court case where they fined Russia was last July.
More positive news for Russia: Turkey is slowly but surely moving from the West to the East:
https://deepresource.wordpress.com/2014/12/09/back-to-the-ottoman-empire/
This would mean a step of breathtaking magniture.
Oh and dear Saker, Putin is neither a Eurasian souvereignist nor a Atlanticist integrationist, but a European.
Don’t listen to me, listen to Putin himself:
http://deepresource.wordpress.com/2014/09/19/putin-confirms-ambition-paris-berlin-moscow-alliance/
http://deepresource.wordpress.com/2012/06/23/russia-plays-the-european-card/
Putin’s words in 2012:
““Russia is an inalienable and organic part of Greater Europe and European civilization. Our citizens think of themselves as Europeans. We are by no means indifferent to developments in united Europe.””
Putin speaking German in front of the Bundestag:
https://www.youtube.com/watch?v=2FRVOPGwXf0
Can anybody show a video where Putin is peaking Chinese?
Paris-Berlin-Moscow is next.
Kind regards,
Dutch
it is putin fault that even after resounding victory in the elction he has still harboured the traitors and saboteurs inside the cabinet despite knowing that they a re foreign agents.
putin has peoples endorement but he wanted anglosaxon endorsement-that is why he has acted as an idiot and weakling.
The Shocking Reason Putin Isn’t Worried About The $50 Billion Yukos Ruling.
Having $50 billion of assets under potential seizure is enough to make anyone whince. However, despite a quickly worded statement on the Yukos award, Vladimir Putin seems less than anxious to find a resolution. We think we know why, and it’s very concerning.
One person close to Mr Putin said the Yukos ruling was insignificant in light of the bigger geopolitical stand-off over Ukraine.
“There is a war coming in Europe,” he said. “Do you really think this matters?”
source FT
http://www.zerohedge.com/news/2014-07-28/shocking-reason-putin-isnt-worried-about-50-billion-yukos-ruling
What do you mean by “western economic dogmas”?
Dollar reserve status? Keynesianism? Austerity? Libertarianism?
Does the central bank in Russia have a similar role to the FED in USA?
Saker, I understand your alarm at what you do not understand, but I also note you think Putin is not hesitant, weak or confused. You are a military analyst, I am more of an economic analyst and we look at the situation from different angles.
Serdiukov crossed a line when he against regulations took old valuable cars from a museum, for example. He had to go, but Putin dealt diplomatically with him for reasons I can’t name. Perhaps to keep the loyalty of Serdiukovs allies? Because Serdiukov, despite his faults, had made a contribution? Politics is not what I know best, so don’t ask me, I don’t have access to the Kremlin, though I have seen the building and stepped on the lawn against regulations while being monitored by guards. He. The Red square is a beautiful place and many in my generation in the West have seen it on TV year after year as did everybody in the Sovjetunion.
I have no Kremlin contacts whatsoever, but despite that I think I understand what Putin is doing. At least partly. At times, he has hard hands, as he must have, but at heart he is a diplomat and he never abandons his goals. Never. Look at how he treats friends and foes. Look at how he treated Hollande, that little you know what, as if Hollande was a longlost cousin and how he has put up with Merkels outbursts this year. Merkel compared him to Hitler. Remember when he travelled a long distance to meet big Bush of all people at a Russian airport? When he gave his personal judo clothes to a critical european politician, whose children practiced judo? VVP knows how to handle people. By being friendly to the oligarchs, who are facts of life as you once wrote, he can influence them.
Putins goals? The best for Russia and the people. If the central bank is almost untouchable for the moment, what options does he have except being civil and patient? I can’t imagine the president of Russia being unaware of the problems the CB poses and not knowing how difficult it is to change the legislation. If no one else, Khazin has told him. If a friendly approach towards the bank does not work and if the international political climate does not improve, I can see Putin surprise us by taking over the bank and be demonized for it. There is always a limit to his patience, as we saw when he banned food from the EU, closed down South Stream and snatched Crimea from NATO.
From the economic point of view, I see two immediate and disturbing problems. The weak rubel and the high interest rate in Russia. Both problems can only be solved with entirely new economic inventions. Traditionally, a central bank has two or more conflicting goals. To defend the currency, that is what the CB does now with a high interest rate, and to fight inflation and keep the general price level down. That it can not do today when the rubel is under attack. In the present environment, it is difficult or almost impossible to do both at the same time.
Threat for Russia: Putin has his bottom line and that is in the statement, ” Russian will exist as a sovereign state or it will not exist at all.” His resolve is clear; let’s hope his skill, timing and his strategy carries the day and that he can be utterly ruthless.
Part One
Mr. Saker wrote:
All this is fine and dandy, except for what was not said.
• Putin did not denounce the work of the Russian Central Bank or its Chairwoman.
• Putin did not promise to sell US bonds and bring Russian money back home.
• Putin did not sack a single Russian official for incompetence or, even less so, sabotage
• Putin did not announce a major change in the status of the Ruble, no “golden Ruble” for example.
• Putin did not reject the western economic model.
• Putin announce no reform or taking over by the state of the Russian Central Bank.
• Most importantly, Putin did not announce any major change in economic policy
”
I have no way of knowing whether Putin sincerely believe in the western economic dogmas, of whether he has no other option than to pretend that he does, but the outcome is the same: Putin rejects the western political model while apparently still fully endorsing its economic model.
~ ~ ~ ~ ~ ~
Let’s not sound the alarm.. Mr. Putin is attending to business without shouting it from roof-tops like his western counterparts. Some policies and systems cannot be changed at the flick of a switch. Take a look at the larger global picture what is in the works for Year 2015. We will watch very interesting happenings unfold. Today we read of:
1. The New SWIFT SYSTEM –Sanctioned Russian banks begin testing national payment system next week
Published time: December 08, 2014 13:18
The move comes as a part of Russia’s ambitious initiative to move away from the Western dominance of its financial markets. Last month the Russian Central Bank said it would have its own international inter-bank payment system, an alternative to the global SWIFT network up and running by May 2015.
2. Russia may build up to 24 nuclear power units in India — media
“The new road map on the countries’ cooperation in the nuclear industry can be formed during Russian President Vladimir Putin’s visit to Delhi on Thursday”
Russia may build 20-24 nuclear power units in India against 14-16 units agreed previously, the Times of India reported Monday, citing Russia’s ambassador Alexander Kadakin.
3. Let’s take a look at the real impact of falling oil prices, said to have been coordinated to punish the Russian Economy. Who will be hurt the most?
In terms of profits, with oil at $70/bbl Russia stands at No: 3 in profitability behind Saudi Arabia and ME – ex Saudi. We now understand today, Western Big Oil companies are shuttering work and laying off employees.
Published by the Swiss National Bank
Link: SNBCHF:
Shale Oil, Oil Sands and Oil Supply Globally: Market Price Compared to Production Costs
Russian post office, a question for anyone who has insight on this institution…I ordered a book and everyone has told me that it will take months to reach me from Moscow. So far it has been more than a month. Why is the Russian mail so slow?
BILL SAUNDERS said, “When the world starts to sell out of the $US is the right time to give it a little extra nudge – not a moment before.
You will find at that time, which has to be imminent, Putin will be able to nationalise the Russian Central Bank with ease “in order to stabilise the financial situation in Russia”.
If he acts before then the combined financial might that the US can bring to bear will cause much more damage than is already being inflicted on the Russian economy.”
Bill, on the other hand we can be very sure that there is another financial system waiting in the wings ‘to prevent chaos’ when the dollar system collapses. It seems to me that the temptation to sign onto it will be very great. (It’s probably SDRs).
However if the Russian system is already in place and a few other countries are already using it we are much more likely to win.
Btw I don’t see that the Russian domestic clearing system has anything to do with replacing the SWIFT system. It’s like growing celery as a first step in growing oranges.
It is not clear to me what it is that people think the Russian central bank is doing that it should not be doing or what it is not doing that it should be doing. Could those who hold the bank guilty of treason provide some clarification.
The ruble exchange rate is determined by supply and demand including supply and demand created by investors, importers, exporters, central bank market operations and speculators.
The main reason that the ruble is down is that demand for the ruble is down because the value of Russia’s oil exports is down by an amount equal, on a yearly basis, to around $100 billion, or 5% of GDP.
In addition, speculative short selling and panic liquidation of ruble-denominated assets may be causing some irrationality in the market. This is the only aspect upon which the central bank can have an immediate and significant affect. It can punish short sellers by wading into the market and buying rubles with gold or dollars, or buying currency futures, which should be profitable if indeed the ruble is oversold.
However, it remains open to question whether the ruble is oversold. To stabilize the currency, Russia has to cut imports by an amount equal to the decline in oil revenue. In a two trillion dollar economy, a 100 billion dollar cut in imports is a challenge.
Russia’s counter-sanctions will help, but it takes time for the economy to respond with import substitution, and increased exports of non-oil commodities or manufactures. In the meantime, Russians will have to accept a reduced standard of living, as is evident from the fact that inflation is now running at around 10% (higher ruble prices being what drives import substitution and increased exports).
The only fundamental solution to Russia’s heavy dependence on commodity exports is to increase the manufacturing and the service sectors of the economy. To achieve this, Russia needs to insure the availability of capital to businesses of all sizes, and to protect the small and medium firms from corrupt bureaucrats and the mafia.
But whatever happens, Russia’s economy will need time, probably several years, to adjust to a sharp reduction in energy export revenue. Having made the adjustment, the economy should be more diversified and therefore more robust than it is now.
Pt 2
4. And in an extremely important development -this makes 5. The fight begins over all the money left in the world.
Money, not currency. Russia, India, China, Brazil knows the difference.
The Mother of All Bank Runs
Why is Belgium asking to bring home its gold
We already know Germany had publicly requested their gold back beginning in early 2013 and gotten very little so far. Just a couple of weeks back, The Netherlands announced the repatriation of 122.5 tons of gold …after the fact. When the announcement came, it said the transfer and transaction had already been done. Several days afterwards, a leading candidate for France’s next election also brought up the possibility of French gold being repatriated …and now it’s Belgium!!!
Notice I used three exclamation points, I did so because of all the central banks to request their gold back Belgium in my opinion would be the very last to do so with one “caveat.” The caveat being “unless something REALLY big has changed,” let me explain. First, Belgium is the “seat” of the European Union, this is where all European decisions are made and announced (with Germany’s approval of course). The decision to repatriate gold from the “safe haven” of New York and to do it publicly raises eyebrows on its own, but this is Belgium, not “just some country” in Europe.[.]
= = = = =
Worth a listen on a little geopolitical and financial from an unusual website.:Skip the introduction or don’t let it be a turn-off.
Dr. Jim Willie has a good track record, formerly with a TBTF
LINK
Vlad Putin reminded the West today that the Nazis could not defeat the Russian Army. Is anybody in the USA paying attention? Financial analyst Jim Willie spends one hour with Rick today. Mr. Willie said we are in the final stage of the break-up of the Western banking cabal’s stranglehold on the world. You’ll hear a financial analysis that you won’t read in the Wall Street Journal or hear Jim Cramer say on CNBC.
= = = = =
Keep on stacking Mr. Putin.
Dear Saker and friends,
In my opinion, Putin did not lay down any concrete plans or measures that would signify how Russia should alter its monetary policy for very good reasons. First and foremost this is the one battleground where Russia is especially vulnerable in relation to the AZ Empire, and is the primary weapon that the enemies of Russia are using against her. Revealing your plans/intentions in any way shape or form would very simply be just very bad tactics. Whether he has the power to deal with the RCB issues comfortably or by taking serious risk is also secondary. The fact of the matter is that Russia’s monetary policy must quickly change or Putin will be somehow removed from power. Putin is probably waiting for the most opportune moment to act. Allowing some of the damage to become evident before taking decisive and tough action is also a further possibility in this case.
Moreover, praising the RCB and its chairwoman could either be a diversionary tactic, or could also allude to the possibility that at least a few influential insider are on Putin’s side and are prepared to introduce radical reforms at some point.
Even though I get the impression that Putin is not very much into economics or economic history, I am sure as hell certain that he readily comprehends how crucial and dangerous for Russia this issue really is. I can only hope that his advisers know what they are doing and saying.
Even though I tend to agree with Glazyev/Khazin in general terms, I am not sure I am on the same page with them apropos some finer points, but they are 100% preferable to the lunatic and treasonous liberals that have been bleeding Russia for 25 years now.
The bottom line is this: Russia’s number one enemy at the moment is not the USA, or the West or even NATO. It is the voodoo neo-liberals (and the rotten class interests which they serve) of the Washington Consensus.
Stavros H
Greetings from Singapore:
Merkel had a six hours meeting with Putin in Brisbane. It is very unlikely that they need six hours to discuss Novorussia. My view: Merkel made a last minute effort to bring Putin back to the West, quite naive. Russia and the West are at war since Brisbane. This would also explain Hollande’s surprise meeting with Putin in Moscow, which was unscheduled, perhaps another attempt to see if Putin did soften.
The West is economically and morally bankrupt and a war would be a good escape from admitting failure, and while some kind of unreal peace lasts, the central banks will print money ‘ad nauseam’ to keep the feeling of progress and growth.
Rgds
Mario Medjeral
ANONYMOUS @ 23:09, Parts 1-4:
What a stream of nonsense & non sequiturs. You sound just like Where-Wolf. Whatever you’re smoking it’s disturbing your mental processes.
ANONYMOUS @23:39:
This cyberberkut hacking of a Biden assistant was written about here. http://www.zerohedge.com/news/2014-11-25/hacked-us-documents-said-reveal-extent-undisclosed-us-lethal-aid-ukraine-army
Anonymous @ 23:39:
The story about cyberberkut hacking a Biden assistant was carried in English here.
http://www.zerohedge.com/news/2014-11-25/hacked-us-documents-said-reveal-extent-undisclosed-us-lethal-aid-ukraine-army
OT I have found Wayne Madsen a reliable investigator.
http://www.strategic-culture.org/news/2014/12/03/israel-secret-plan-for-second-israel-in-ukraine.html
STAVROS H: I agree 100%. Since you are not w Khazin & Glazyev on all the details, you might take a look at Starikov.
Online book here.
[pdf] Rouble Nationalization – the Way to Russia’s Freedom by Nikolay Starikov
The IMF is a USD tribute and control system which is failing due to the exponential growth of USD credit instruments encumbering the world’s real assets.
The BIS facilitates international trade flows by arranging account settlement between Central Banks. The BIS mandate is at odds with the IMF Imperial Dollar Function, as the USD losses its store of value money function.
I do not know the legal relationship between the Russian Central Bank and the IMF, except to say I have read the Russia government paid all debts to the IMF in full thereby decreasing USD tribute flow from the Russian Economy.
The Russian Central Bank may have to meet reserve requirements established by BIS in the Basel Accords to create ruble denominated credit. The problem is the USD is a reserve asset, so the Russian Central Bank must hold USD to create rubles. This is ‘austerity’ and ‘tribute’ being forced on economies world wide. No one likes the USA exorbitant privilege!
The world is preparing to jettison the USD as a reserve asset, since the USA has abused the privilege against friends, enemies, and partners alike. The BIS has been preparing the reset to gold as a RESERVE ASSET on the balance sheets of Central Banks. When the USD timeline as a reserve asset ends, the price elasticity of gold will allow the Russian Central Bank to expand credit for the real economy.
This is a complex topic which I only a little understand, so please consider my words an extrapolation based on incomplete information and understanding.
The world $IMFS is a tangled knot strangling the real world economy. Vladimir Putin is a well informed and responsible man. He will not cut the tangled knot, but will cooperate with responsible parties attempting to untie the Gordian Knot without WAR. It is clear the IMF and BIS serve different functions in the world financial system, so BIS may be an ally in this process.
Mr. Khazin said the world is evolving toward currency blocks, with gold to settle account balances between currency blocks.
SDR’s are a deception to maintain the IMF Imperial System. SDR’s are not compatible with multi-polar world civilizations, each with its own fiat currency system. No one will trust a fiat currency in any form as a world reserve asset after USD denominated paper burns. The world will suffer austerity for a period, as the reset from the $IMFS evolves. I think an evolutionary reset is the better alternative and abrupt collapse and the possible escalation to world war.
Vladimir Putin praises and protects the Russian Central Bank to protect it from populist zealots whose advise might cause war and chaos. Time is on the side of Russia and all peace loving and creative humanity!
Thank you, Saker!
Pt 3
Putin Pipeline Moves and EU Stupidity– Engdahl
by forcing Bulgaria, an EU member, to halt South Stream, using blackmail of a Bulgarian bank bailout last June, the EU has made itself dependent on gas security via Ukraine, a country the EU’s own political spinelessness has helped turn into a failed state ruled by a cabal of Brussels-and-Washington backed gangsters and oligarchs. We might use the term “stupid” to describe EU policy on South Stream, were it not for the fact at the end of the day Washington blackmail on the EU caused the South Stream blockage policy to be implemented, just as the economically devastating EU Russia sanctions were imposed only after extreme pressure on Berlin and Paris by Washington.
Bringing Turkey closer to Eurasia
Russia and Turkey have just signed an agreement to expand the existing Russian Blue Stream gas pipeline to Turkey by an immediate 3 billion cubic meters to the current 13.7 bcm of gas pumped to Turkey via Blue Stream, for a total near 17 bcm.
Putin also announced a fascinating new option, to build a gas hub on the Turkish-Greek border to supply Europe with gas to compensate for the loss of South Stream. He told the press, “We are ready to not only expand the Blue Stream, but to build another pipeline system to supply the growing demand of the Turkish economy, and if it is deemed justified, to set up an additional gas hub for the South European consumers on Turkish territory, near the border with Greece.”{.}
~ ~ ~ ~ ~ ~
Year 2015 setting up. So let’s not agonize over the Rouble. It is not the only currency taking the lower road against the USD.
Tumbling euro not enough to save Germany’s factories
German industrial production data has failed to match the expectations of analysts, as the country faces lower growth next year
Poland joins EU. Poles move to UK, elsewhere for work, no longer contribute to social security. Polish social security overwhelms budget. Polish women have fewer kids, Population ages. Problem accelerates. To get workers, Poland imports banderites, passes the problem on to Ukraine. Ukraine stops paying pensions to the East, where most of the wages are generated and bombs destroy the industry. US UK EU banks profit from slave wages, and peo0ple are impoverished. All EU currencies fall against the dollar, making all dollar denominated loans impossible to repay. Banks and corporations supercede nation-states which have already ceded sovereignty to EU and defense to NATO. WELCOME to 21st Century supra-national fascism, US style.
Sergei Glaziev, one of Russia’s leading economists, has been screaming bluntly about the idiotic policies of the Central Bank for quite some time now.
https://z5h64q92x9.net/tr-url/ru-en.en/newdaynews.ru/authors/519073.html
Gkaziev joins the group half an hour into this excellent videotaped forum, and blasts the central bank.
https://www.youtube.com/watch?v=CH4Pcgoi3eE
The US is a Leading Terrorist State.
http://www.informationclearinghouse.info/article40026.htm
in FR
http://www.les-crises.fr/les-etats-unis-sont-un-etat-terroriste-de-premier-plan/
@Honk:> Putin did not announce a major change in the status of the Ruble, no “golden Ruble” for example.
Which would the most stupid thing to do if he is still in the process of acquiring more gold.
Very good point, you are 100% correct.
Thanks!
The Saker
The Saker: BTW, my question at 23:20 was meant as a question., not as some snide comment. For example, let’s say that Assad is forced out by the AZ’s and is dismembered. Assad is given a place to live in Russia. What would that say about Putin’s commitment and or standing? What events could lead you to alter you model? I am raising the question of the falsifiability of your model.
As for me, I really don’t know.
About the Russian post office, from good web site “Rusia beyond the Headlines
Exactly on the money, Saker! Aside from the centuries-old power schemes and vested interests around the control of the currency printing press, it would seem straightforward to just announce a change of the board of the central bank, no? Who nominates it anyway, the president? It could easily be a compromise where the various power factions are given an appropriate number of seats around the table.
A few quotes from Putin’s speech to the federal assembly: “We will only succeed if we work towards prosperity and affluence, rather than hope for an opening or a favourable situation on foreign markets”, “the most important thing now is to give the people an opportunity for self-fulfilment”, “The more actively people become involved in organising their own lives, the more independent they are, both economically and politically, and the greater Russia’s potential”.
Well, one solution that would go most of the way towards realizing these goals is honest money. The Russian government could take, say, 20% of their gold reserves (after they’ve reclaimed it from the saboteurs down at the central bank), mint them into coins and start distributing them into the economy. The value could be independent of the paper rouble and determined by the markets. This would make the golden rouble a concrete reality and promote “fundamental conservative values such as patriotism, and respect for the history, traditions, and culture of one’s country.” The central bank/government would no longer be in total control, but, “it’s crucial to abandon the basic principle of total, endless control.”
Dmitry Orlov says that Russia is excellent at undertaking huge projects that no one else can tackle. Technically the concrete golden rouble would be simple, but on the monetary/paradigm-shifting/spiritual plane this would be the project of the century.
@ CanSpeccy
You ask what is it that we are accusing the RCB of doing which is treasonous. Very simple.
By allowing the free movement of money into and out of Russia, they (RCB) have rendered the economy vulnerable to speculators (where the AZ Empire is at its formidable best) oligarchs and crooks of all kinds. This situation has allowed the economic bleeding of Russia for 25 years now with oligarchs moving their money out of the country for tax havens ranging from London, New York, Luxembourg, Cyprus, Spain etc… This has starved Russia of much needed investment (even though part of the Russian offshore accounts is sometimes reinvested back into Russia. This is done so that the tax burden is reduced for Russian corporations, but at the same time the state loses tax revenue) This process, also makes the value of the ruble volatile. It can either become overly expensive (as in the period leading up to the 2009 crisis) or dirt-cheap as it is now. At the moment, the Russian economy (stocks, bonds and currency) is the most undervalued on the planet by far. It is quite false that the Russian economy is in bad shape at the moment. The problems of the Russian economy at present are perfectly manageable from a purely economic perspective. These problems are: a) Relatively low and falling investment. b) Low commodity prices. The falling value of commodities is only temporary. The low investment is partly caused by the war that has been unleashed against Russia by the Empire (and the resulting fallout from lost confidence and sanctions) and due to some slack policy by the Russian government. Otherwise Russia has extremely strong fundamentals for the long-term. Russia is the only major country on the planet with virtually zero public debt, she is also the richest land in terms of natural resources. This is especially crucial, since despite what one may get from the western MSM (hahaha) in the future the tendency for commodity prices will be upwards, since many of them are reaching or are past Peak Production. This is the primary long-term reason that has neo-cons losing sleep over Russia and Putin. Russia is also strategically places to act as the primary energy and commodity provider of Eurasia. Russia could be selling raw materials to Europe/China/Japan/Korea/Turkey/possibly even India at the same time. Russia will also be a good place to invest for many corporations or SOEs in any number of sectors. Putin is slowly moving to that direction, and this is why it has become imperative for the AZ Empire to cut Russia into pieces. Brezhyinksi knew this many years ago.
But going back to the RCB question. The bottom line is this: The Russian monetary policy as has been practiced for the last 25 years has benefited oligarchs, foreign speculators and corporations and has served to undermine domestic investment, industry, state tax revenue and has left Russia vulnerable to speculative and Empire-led attacks on her currency.
Wanna know which country has resisted tooth and nail the “liberalization” of its monetary policy and currency? That’s right, the People’s Republic of China and this is one of the primary reasons that the Chinese have bequeathed the most dramatic economic development the world has ever seen.
the “other side” of the radio-interview with Evgenii Feodorov posted by the Saker (@ 9m50s):
http://rusnod.ru/nodtv/video4515.html
Although Putin did not want a gold backed currency, Both Russia and China have stopped exporting Gold to sell on the international markets and have been accumulating them instead. Also the price of Gold is too low for such things. Many mines are selling it now for a loss and only staying alive by using tricks like fleecing the shareholders.. Like what barrick did when they raised 5 billion to buy back the Gold they sold but did not have. Although they did it when Gold was at the highs.. Now they will sell it again at a low price and make the Fed happy as it should.. Called buying high and selling low, the only way to fleece the public.. US does not have much Gold now. But they force others to sell Gold cheap using derivatives. As we can see, derivatives even if not directly connected should not have any effect on the asset price but it does. Foreigners can not invest in the indian stock market directly except using government approved vehicles but using derivatives issued in Singapore and hong kong,they indirectly control the prices of the stocks. So even if something supposedly has no direct reference to something, it is like drinking a glass of beer and the beer levels in the keg does down even if the lass is not directly connected to the keg.. Just amazing aint it..
But this should also raise fear for everyone! Many US companies like JPM, insure their employees so they benefit in case of death or accidental dismemberment.. The company stands to mke a lot more money with you dying than you could ever hope to make them staying alive.. Sooner or later, workers are going to meet an accident when earnings are low.. It directly adds to their profit margin.. The more workers that die, the higher the profit.. Heck in a few decades killing off employees will be the thing like flash trading is now. Sign now up when they will hire anyone who can stumble and poke someone in the eye.. make money while acting like a total idiot..
An interview with Mikhail Khazin on Sott.net
http://bit.ly/1BuNBsb
Dear Saker and friends,
You would have heard me (and will do so again in the future) praising China for its achievements in the past few decades. I am also strongly convinced that Russia should learn from the Chinese. The comparison between the two countries is of course only valid to an extent, since there are some fundamental differences between the two countries. But at the same time, there are also extreme similarities. Both countries looked for ways to re-ignite economic progress once dogmatic (I may also add, juvenile) communism reached its limits. China has succeeded wildly in the effort, Russia, not so much. Both countries are also hated by powerful circles in the West who have dreamed for ages on how to subjugate them both. Not only Russia has a lot to learn from the Chinese, but has to work with them as cordially as possible. Divided, they will fall, united, they will prevail.
I will provide this link to brilliant British economist John Ross, who lucidly explains the extend of Chinese economic success, dispelling on the way all the drivel one finds in the MSM written about China. This economist also warned Russia of the grave dangers of adopting the neo-liberal model in the late 80s and early 90s, and correctly warned of catastrophe. There are many articles on his blog, which I advise anyone of you to carefully read if you are interested in propaganda-free economics: http://ablog.typepad.com/keytrendsinglobalisation/
As monetary policy, crisis theory, the nature of currency and its relation to gold have become such hot topics even on this forum, please also allow me to provide a link to the blog of another brilliant economist who explains in excruciating detail how these dynamics interact with each other in the real world. I know that many of you on this forum are quite anti-Marxist, and while I myself am opposed to many of the lunatic and dogmatic Marxists, this guy’s precise Marxist analysis of the history of capitalism is quite invaluable and brilliant. Unlike John Ross’s style which is accessible for people even with limited grasp in economics, this one is quite complex and tough to follow for people without a good basic understanding of the history of capitalism and of Marxist analytical tools of the inner workings of our global system. There are a few articles on this blog especially devoted into explaining the role of gold throughout history. There is also a very interesting article on whether Russia is an imperialist country.
https://critiqueofcrisistheory.wordpress.com/category/russia/
https://critiqueofcrisistheory.wordpress.com/2012/07/08/gold-as-money-and-the-role-of-the-national-question-in-the-current-crisis/
https://critiqueofcrisistheory.wordpress.com/
Another little thing about gold. Even Alan Greenspan (Federal Reserve Chairman for decades) has recently admitted that gold is the most fundamental form of currency (he meant to say money) the world has ever known. His reply was unequivocal. This is only the most crucial part of his interview to Gillian Tett (Financial Times reporter) in front of the Council of Foreign Relations:
https://www.youtube.com/watch?v=Oz4-Tru_30A
This is his full interview. I found it extremely interesting and suspicious that he even mentions Ukraine* in particular:
https://www.youtube.com/watch?v=XqHNF6NOpoE
*His mentioning of the Ukraine comes after 6:00 minutes in while he is discussing the discounting of long-term assets across the world. I thought it was somewhat odd that a central banker mentioned Ukraine in this context. Freudian slip of tongue maybe? Just coincidence? Who knows.
A few points come to my mind – and some beefs as well, including some with the good Saker himself! So here they come:
1. Why don’t we stop personalizing everything to Putin? It is bad enough that erecting demons is the modus operandi of the “west” and its media. Let them bark, why do we have to imitate their howls?
2. The present mess and the dangers that lie ahead are all about Russia and Russians. It is true that Putin is a good and noble leader. But rest assured that even if Putin goes away, the west will discover a new Hitler in Russia, unless of course Russia gets cursed with another Yeltsin. It is all about the west’s need to control the entire planet and this lust will not go away even if Putin does.
3. Now no one has expressed this view on this blog, but the way I see it Russia has no choice but to close itself economically to the west – completely and in almost one swoop. And that would require a socialist – or at least a socialistic economy – for the foreseeable future. Socialist ideas are not the flavour of the month on this blog, which is one of my beefs – not because I am an ideologue but simply because I see no other option for Russia at this stage. The reality of world history is that no national economy – not a single one – has pulled itself out of deep troubles or underdevelopment except by the state controlling the commanding heights of the economy. For example: China, India up to 1980, Russia itself up to 1960, Japan under the Meiji restoration – and believe it or not, the western economies themselves, except that the western model was mercantile protectionism. The west changed its tune to “free trade” only after it had acquired competitive advantages and saw free trade as the way to lock in this advantage.
4. A generation of post-Soviet Russians has been busy throwing out all statist and state control ideas, to the point that they are now silly about “free markets” and “free trade” and “foreign investments”. The Russian Central bankers, liberal intellectuals, Govt officials, are completely in thrall to “markets”. Unfortunately, it seems Putin could also be similarly enthralled. And that is my beef with him. No nation can solve political problems without tackling the economy at the same time. If it is under comprador control, the ouster of these has to be one of the main battle plans. China under Mao saw this clearly. And even the current political Chinese leadership is into “free trade” only because today they enjoy competitive advantages on the world market.
5. Putin has to start an ideological battle at home to get the people behind him to be able to oust compradors and other west-looking liberals. If he has not done so because of lack of political strength, he is being wise and may well take them on at a more opportune time. But if he is not acing because he is himself not free of illusions, then that is truly dangerous, perhaps hopeless.