Tag Archives: Vladimir Putin

Putin Got Obama Hanging By the Balls

Financially speaking, of course. But no wonder Russia’s president Vladimir Putin hardly bothered to comment on the almost hysterical Barack Obama the other night, calling him a “jackass” and a “dick”.  America owes Russia 138 billion dollar. Together with his good buddy and neighbour,  Xi Jinping of China, the two trade partners now control about 1,5 trillion dollar, or 25%,  of all US debt. That means they almost control the United States of America.

“The end of “easy money” in the US is going to fundamentally influence the global economy.”

Aleksey Kudrin

 

G20SUMMIT

I think I know what kinda feelings that made US president, Barack Obama, go nuts over Russia’s president, Vladimir Putin at the opening day of the G20 meeting in St. Petersburg. Imagine; visiting your bank, where you’ve been a loyal on-time-paying customer for 20 years, just to make sure that your credit cards will be renewed when they expires at end of the year: “We’re very sorry, but your application is denied due to changes in our credit rating practices” Jackass! Let me talk to the dick in charge!

I’m not sure, but it seems like a plausible explanation.

Mr. Obama comes to St. Petersburg to gain support for his plan to launch a military attack on Syria. Instead the other state leaders starts nagging him about all the money he have borrowed on behalf of the American people and how he plans to come up with the 3 trillion dollar needed to renew existing loans due this year.

China urges the United States to be “mindful of the spill over effects” of the planned tapering of the country’s monetary stimulus , Zhu Guangyao, China’s vice finance minister said during a meeting with Russian President Vladimir Putin at the G20 summit. The US should “work to contribute to the stability of the global financial markets, and the steady recovery of the global economy,” Zhu added.

Talking exclusively to Russia Today, Russia’s former finance minister Aleksey Kudrin says the end of “easy money” in the US “is going to fundamentally influence the global economy”. However, though the tapering could be extremely painful right now, countries around the world need to reconcile the thought that such money injections could be just temporary, Kudrin says.

“Now we are witnessing an attempt to win time to reform the economy, to consolidate budgets, to cut expenses, to increase taxes, to overhaul social welfare, to stimulate some of the industries. … At a certain point this additional stimulus will have to be gone and the economy will have to function on its own,” he says.

“Will it (the global economy) be able to? Which countries won’t cope with the situation? We still don’t know. So, we’ll have to adapt to this new kind of situation. This is going to be a challenge”, Kudrin concludes.

A challenge, indeed.  What Mr. Kurdin is saying implisit is that some countries will NOT make it.

And here comes the scary part:

Vladimir-PutinAt the moment, America owes other nations 5,6 trillion dollar, according to the  US Treasuruy.

As it turns out, Russia and China holds about 25% of it. Imagine that! Imagine what may happen if they should decide to dump the whole load at the market, followed by a few other nervous investors.

That’s right. Disaster. But what does that really mean in this context?

Thanks to The Economic Collapse Blog, here’s a brief summary:

These are a few consequences of rising bond yields on 10 year US Treasuries.

  • It will cost the federal government more to borrow money.
  • It will cost state and local governments more to borrow money.
  • As bond yields go up, bond values go down.  In the end, rising bond yields could end up costing bond investors trillions of dollars.
  • Rising bond yields will cause mortgage rates to skyrocket.  In fact, we are already starting to see this happen.  This week the average rate on a 30 year mortgage hit 4.57 percent.
  • Higher interest rates will mean a slowdown in economic activity at a time when we definitely cannot afford it.
  • As economic activity slows down, that will be very bad for stocks.  When the next great stock market crash happens (and it is coming), equity investors could end up losing trillions of dollars of wealth.
  • Of course the biggest threat of all is the 441 trillion dollar interest rate derivatives time bomb that is sitting out there.  Rapidly rising interest rates could potentially bring down several of our “too big to fail” banks in rapid succession and throw us into the greatest financial crisis the nation has ever seen.

Are you starting to get the picture?

 

This is one of those articles that makes you go hmm…

Full Story&Documentation @ The Economic Collapse Blog

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Fears Grow Over Global Food Supply

Russia announced a 12-month extension of its grain export ban on Thursday, raising fears about a return to the food shortages and riots of 2007-08 which spread through developing countries dependent on imports. The announcement by Vladimir Putin came as the UN’s Food and Agriculture Organization called an emergency meeting to discuss the wheat shortage, and riots in Mozambique.

“This is quite serious.”

Abdolreza Abbassian


The unrest in Maputo, in which 280 people were also injured, followed the government’s decision to raise bread prices by 30 per cent. Police opened fire on demonstrators after thousands turned out to protest against the price hikes, burning tyres and looting food warehouses. Although agricultural officials and traders insist that wheat and other crop supplies are more abundant than in 2007-08, officials fear the deadly Mozambique riots could be replicated.


The 2007-08 food shortages, the most severe in 30 years, set off riots in countries from Bangladesh to Mexico, and helped to trigger the collapse of governments in Haiti and Madagascar.

The Russian announcement extended an export ban first announced last month until late December 2011, sending wheat and other cereals prices to near a two-year high, according to Financial Times .

The FAO says that “the concern about a possible repeat of the 2007-08 food crisis” had resulted in “an enormous number” of inquiries from member countries. “The purpose of holding this meeting is for exporting and importing countries to engage.”

Russia is traditionally the world’s fourth-largest wheat exporter, and the export ban has already forced importers in the Middle East and North Africa, the biggest buyers, to seek supplies in Europe and the US.

Food Prices Surge

Mr Putin says Moscow could “only consider lifting the export ban after next year’s crop has been harvested and we have clarity on the grain balances”.

He adds that the decision to extend the ban was intended to “end unnecessary anxiety and to ensure a stable and predict-able business environment for market participants”.

Quite Serious

“This is quite serious,” says Abdolreza Abbassian, of the FAO in Rome.

“Two years in a row without Russian exports creates quite a disturbance.” Dan Manternach, chief wheat economist at Doane Agricultural Services in St Louis, adds:

“This is a wake-up call for importing nations about the reliability of Russia.”

Jakkie Cilliers, director of South Africa’s Institute of Security Studies, said there was concern over a repeat of the protests of 2008: “That certainly strengthened a return of the military in politics in Africa.”

European wheat prices on Thursday hit €231.5 a tonne, just shy of last month’s two-year high of €236.

Wheat prices have surged nearly 70 per cent since January, and analysts forecast further rises after Russia’s decision and concerns about weather damage to Australia’s crop.

Food on the honor system?

CNN reports:

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Russia Warns: Wildfires Pose Nuclear Threat

The Russian government warned late Thursday that raging wildfires could pose a nuclear threat to neighboring countries, with the natural disaster already spilling across Russian borders in terms of food markets. The heat from fires in the Bryansk region near the frontier with Belarus and Ukraine  could release harmful radioactive particles into the atmosphere.

“In the event of a fire there, radionuclides could rise together with combustion particles, resulting in a new pollution zone.”

Sergei Shoigu

Russian wildfires death toll reach 50 people.

Russian emergencies minister Sergei Shoigu says heat from fires in the Bryansk region near the frontier with Belarus and Ukraine, which was contaminated following the Chernobyl disaster in 1986, could release harmful radioactive particles into the atmosphere.

Russian Minister of Emergency Situations, Sergei Shoigu.

“In the event of a fire there, radionuclides could rise (into the air) together with combustion particles, resulting in a new pollution zone,” he explained on national television yesterday night.

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According to the EUobserver.com, Russia earlier this week removed radioactive material from the Sarov nuclear weapons research centre in the Nizhny Novgorod region as a precaution.

It also shifted conventional artillery rockets from a garrison near Naro-Fominsk, southwest of Moscow.

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Signs Of Panic

The fires, which have already killed 50 people, have also destroyed millions of hectares of crops, leaving Russians in doubt on food security as wheat prices continue to rise.

Russia wants to tame domestic prices by banning grain sales abroad from 15 August to 31 December, in what is the international grain market’s fourth largest exporter.

The ban is to apply to exports of maslin, rye, corn, barley, wheat and rye flour.

Russian Prime Minister, Vladimir Putin.

“We shouldn’t allow domestic prices in Russia to rise, and we need to preserve our cattle and build up supplies for next year,” Russia’s Prime Minister Vladimir Putin said on Thursday while announcing the ban.

Mr Putin also proposed that Kazakhstan and Belarus, Russia’s partners in a tentative customs union, should join the ban.

The announcement sent wheat prices to a two-year high on the international commodities market.

The Russian agriculture ministry has recently lowered the country’s 2010 grain harvest forecast to between 70 million and 75 million tonnes. The previous forecasts were between 85 million and 90 million tonnes.

The zone of high pressure above Russia which has caused the fires is also affecting weather in central Europe and is responsible for high rainfall in other parts of the region since early May, the Financial Times reports.

“It’s totally panic in the European grain market,” one trader says.

Extreme Weather

The rainfall has caused flooding in Hungary, Slovakia and Romania, leaving more than 300 homes damaged beyond repair in Hungary and at least 20 dead in Romania.

Floods are also affecting the local agricultural industry. Hungary’s wheat harvest is reportedly 20 percent down on last year.

Slovakia’s farmers also expect below average yields.

Here’s the latest update from RT (Russia Today):

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