Russia dumping dollars to use to protect currency and falling oil prices (Secret US/Saudi deal to lo

Russia dumping dollars to use to protect currency and falling oil prices

As the United States expands its proxy war against Russia and the BRICS nations through a newly discovered secret deal with Saudi Arabia to force down global oil prices, Russia is firing back to this monetary attack against their currency and economy. On Oct. 10, a new report on Russian currency outflows shows that during the third quarter ending in September, the Eurasian state paid off a near record $53 billion in foreign debt, and sold off dollars to use as capital to stabilize their declining currency, and to protect their primary resource industry from the deflation America has caused through the dumping of excess oil into the market supply.

Some of this money was used earlier this week to support the declining Rouble as President Putin authorized the transfer of over $2 billion to be used directly to support the Russian currency. Additionally, the Russian central bank has already authorized funds to be set aside to supplement Russian corporations and oil industries should the need arise for liquidity and capital.

Click link for remainder of article...

An interesting read and move by the US and Saudi Arabia.

Before the Pro Russians start to bitch please bear in mind you guys have advocated Russia, China and BRICS, among other nations, to dump the US dollar / undermine the dollar / cause a collapse of the dollar.

Looks like Russia just got hit with its own tactic.

According to ZeroHedge, which has credibility issues -

Despite the reassuring narrative from The West that Russia faces "costs" and is increasingly "isolated" due to sanctions for its actions in Ukraine, the most recent data suggests reality is quite different. First, capital outflows slowed dramatically in Q3 (from $23.7 billion in Q2 to $13 billion in Q3) with September seeing capital inflows for the first time since Sept 2013. Second, Russia's current account surplus was significantly stronger than expected ($11.4 billion vs $8.8 billion expected) driven by increased trade. Third, and perhaps most crucially, Russia paid down a massive $52.8 billion in foreign debt as Putin "de-dollarizes" at near record pace, reducing external debt to the lowest since 2012. - Zerohedge

Last I checked the US did not attempt to drive down the price of Oil in the 1980's to destabilize the Ruble. The war between Iraq and Iran cut deeply into the oil production at the time. The USSR actually made money during this time to gas sales.



The challenge -

The article makes some claims that don't seem to be supported by facts. It mentions the US Saudi deal but does not disclose anything about it other than just mentioning it. Does anyone have evidence that there was / is in fact a secret deal?

Just a question, if you don't mind.

I've seen that the dollar is strengthening. If Russia is dumping it, is that a sign of desperation? A quick, short-term fix that will cost it down the road? I would have thought that in normal times, they would have kept them and sold later.

Or, do they think this is the time when they can get the best price for their dollars and are closing out their position?

I do not have any links to any evidence. Last time I saw the US foreign exposure about 12 - 6 months ago, Russia was sitting third at about $700 Billion. China had the most at a bit over a Trillion with Japan next at about a Trillion as well. Over the past few years Russia has been leading the trend away from the USD with China taking a more slow and gradual approach to things, but still following a similar trend. Not sure about Japan.

On the overall scale of things this $50 Billion is significant, but not earth shattering. In terms of how Russia is going to pay for its military goals it is an option. As for how the long term investment situation goes, I am sitting here with my popcorn.

Since this is from the examiner whom which in the past have previously have made questionable articles, not just not on the Ukrainian Russian issues.

Before the Pro Russians start to bitch please bear in mind you guys have advocated Russia, China and BRICS, among other nations, to dump the US dollar / undermine the dollar / cause a collapse of the dollar.

Looks like Russia just got hit with its own tactic.
Wrong again, you have being nothing posting anti Russian economy articles trying to prove that Russia and BRICS have being failing. Which arent failing maybe you should see hows that grand Europe doing again...

a reply to: Xcathdra

When the price of oil hit 90 USD on the world markets Russia was hurt more than many other exporting countries.

Remember when Saudi Arabia got pissed because the false flag chemical attack did not work for bombing Syria ? Well they should be happy now with bombs falling under the guise of taking out ISIS.

Some claim America and the West are but shadows of their former strength.. at this point I would not want to bet the house on that being so.Right or wrong USA and allies are quite capable of stirring the pot all over the world.

its enough to make other smaller countries stop, watch and think, do i have to be a slave to the reserve banks.

If they are selling dollars, I assume they are selling them for rubles? So, they're buying their own currency and distributing it into their economy. Sounds familiar, like Quantitative Easing.

Of course a significant difference is that they're liquidating assets to pay for it, rather than borrowing the money.

Still, in a case where an entity trades assets for cash, it's likely that said entity is hurting for money. That said, if that money is used for prudent and gainful investments, it can certainly pay off.

Sounds like Russia is either shoring up its own cash supplies, paying for an investment that it feels will push it forward, or, worst case for Russia, trying to patch a sinking ship. I'm not sure which I believe, most likely its a combination of the three.

Still, this shows they're transferring from savings into checking. It's not business as usual, whatever it is.

originally posted by: Xcathdra

An interesting read and move by the US and Saudi Arabia.

Your take on the situation is upside down ... to say the least. A "high" dollar, is not positive for the US ... high prices on real estate is NOT positive for the real estate market.

To put it bluntly ... the US action here is "treasonous" towards the US and Europe. This action is not directed at Russia, but at central Europe. The only "place" that doesn't have oil.

Saudi Arabia, and other nations killed European industry when they created OPEC. This move, which is illegal in and by itself, is something the US supported. As the only real "market" that got bashed by it, was Europe. This move by US and Saudi Arabia, is merely to try and lure back European customers, to buy middle east oil.

In reality, we should tell you to take your oil and shove it ... sooner or later we will, as we don't need it anymore. And Russian gas is more prosperous for us, than Arabian oil. All Saudi Arabia will do, is increase the prices, once the deal is made ... as they always do.

I'll tell you something about the "future of Europe". Within a few months, Europe will have defined the categories that will define greater security and cooperation within Europe. Trans-Atlantic cooperation will be expelled ... not in the immediate future. But in near future ... supporting Nazis in Europe, for the purpose of creating war ... makes the US the enemies of Europe. And any action, that is directed at fueling problems between European states, that can and will have devestating consequences ... will in near future, be seen as an act of war.

That's the future ... Russia is Europe, you're not.

originally posted by: TheBlackTiger
If they are selling dollars, I assume they are selling them for rubles? So, they're buying their own currency and distributing it into their economy. Sounds familiar, like Quantitative Easing.

Of course a significant difference is that they're liquidating assets to pay for it, rather than borrowing the money.

Still, in a case where an entity trades assets for cash, it's likely that said entity is hurting for money. That said, if that money is used for prudent and gainful investments, it can certainly pay off.

Sounds like Russia is either shoring up its own cash supplies, paying for an investment that it feels will push it forward, or, worst case for Russia, trying to patch a sinking ship. I'm not sure which I believe, most likely its a combination of the three.

Still, this shows they're transferring from savings into checking. It's not business as usual, whatever it is.

Yep the Runble is a disaster, the worst perfornming currency on earth at the moment. Ar the start if irs intervention it banned buying dollars to try and protect the Ruble because everybody in Russia was rushing out to change Rubles inro dollars. When your own people have no confidence in your currency you have to take desperate measures to protect it.

a reply to: Agent_USA_Supporter

Feel free to link me to the threads where I stated BRICS was failing. All of my posts to date on BRICS is correcting the false claims made by several people on this site. From them claiming its a military alliance to thinking the group is some economic powerhouse at the moment (which its not. Even BRICS own internal evaluations puts them to the 2020-2050 date).

The original article is from Zerohedge there chief. The Examiner was commenting on the blog information.

If you actually read the article you would have seen that.

As for Russia failing - they are.
Putins own finance minister along with industry leaders in Russia are trying to warn Putin that the sanctions are hurting. Putin does not seem to care.

Here is a clue for you -
Refute the article / information contained in it. Your constant attack on people instead of engaging the topic is old and tiresome.

a reply to: 727Sky

Its been pointed out time and again that the surplus Russia was using to update / modernize was coming from their oil / gas exports. While some think oil/gas alone should solve Russia's issues, they fail to understand how the world market works and don't comprehend the fact that if oil is below a certain price some countries don't make money - Like Russia in this case at this moment.

originally posted by: charles1952
Just a question, if you don't mind.

I've seen that the dollar is strengthening. If Russia is dumping it, is that a sign of desperation? A quick, short-term fix that will cost it down the road? I would have thought that in normal times, they would have kept them and sold later.

Or, do they think this is the time when they can get the best price for their dollars and are closing out their position?

I think the reason the dollar is rising is because of Russia's invasion of Ukraine, China's issues in Hong Kong and the groups in the western part of their country, etc...

I am under the impression that Russia is selling them off to raise funds to prop up the ruble. They have had to do that several times since the sanctions started. The economy for Russia is expected to close the year out in recession.

It seems Russia weakened its own currency in this move, not surprising. Putin thinks he can hurt the US by dumping his 165 billion in US Treasury Bonds. Compared to the 1 trillion Japan and China each hold it isn't going to have much effect. The speculation however is that Putin in only playing games and didn't actually dump anything, just shifted his treasury holdings to some offshore holding.

Is Russia Dumping Nearly $118 Billion in U.S. Gov’t Bonds?

PS: how corrupt is the Russian economy that one man literally holds all its financial assets?

a reply to: bjarneorn

lol ok...

OPEC is not an illegal entity so I am not sure where you get your info from. Giving you the benefit of the doubt though can you explain why you think its illegal?

As for taking our oil and shoving it - I was not aware Russia imported from the US so im not sure, again, how your comment fits into the debate.

As for the last part of your comment -
I can read the same thing you posted here in other Ukraine threads.


Actually Russia is Europe and Asia, just like Turkey. While Russia may be in Europe, they aren't exactly endearing themselves to the rest of Europe and I doubt Europe is going to go for a repeat of the first 2 world wars.

Unless Russia changes its course I see Europe and the US eventually having to support Russia. Of course I doubt that support will come so long as Putins in charge.

With that said - Got anything on topic that comes to answering my question / challenge?

a reply to: Blackmarketeer

Actually Putin brought back the same patronage program that was present in the USSR, which also was a factor in the collapse of the USSR.

Putin seizes businesses and hands it out to his circle.

The issue Putin seems to have on the sanctions front is listening to the people in his administration trying to tell him there is a problem with the economy. Putin is not listening and keeps "reassuring" the Russian people all is ok and Russia does not have to worry.

I am curious when that lie is going to catch up to him.

Nothing is going to save the Ruble unless oil prices shoot up and santions are dropped. This is a currenly that being out performed by third world nations.

This goes to show how little demand there is for the ruble. If not for the central bank’s support measures, there would have been even less respite for the ruble this week. And the Russian currency has lost more than 15% of its value against the central bank’s euro-dollar basket so far this year—making it one of the worst-performing currencies in the world—despite the bank spending some $45 billion of its reserves to support the exchange rate over that time.

LINK

originally posted by: 727Sky
a reply to: Xcathdra

When the price of oil hit 90 USD on the world markets Russia was hurt more than many other exporting countries.

Remember when Saudi Arabia got pissed because the false flag chemical attack did not work for bombing Syria ? Well they should be happy now with bombs falling under the guise of taking out ISIS.

Some claim America and the West are but shadows of their former strength.. at this point I would not want to bet the house on that being so.Right or wrong USA and allies are quite capable of stirring the pot all over the world.

The strength may be there but the leadership is not. When you castrate a bull you knock out his mentality, which is needed to use that massive strength.

That's why Russia appears stronger than the US. Putin's got 'tude. Obama......a great golf game.

a reply to: StoutBroux


US presidents dont have to be tough when you know you have the capabilities at your disposal you dont have to worry about image. Trust me Obama looks at Ukraine as a minor annoyance. US plan simple Putin doesn't want to play well with others you simply remove his influence and make sure his toys stay in his yard.

Putin is going to be to busy trying to maintain power soon to worry about. All his advisors keep sendong him report's about the economy and he continues to ignore it. If he truly believed the west was trying to destroy the economy than why is he doing everything to make sure it happens? Truth is hrs more worried about gaining control than he is about the consequences the rest of the Rusian goverent is nothing more than a rubber stamp already.

Have you ever stopped to consider that if such a US / Saudi deal ever existed, which I highly doubt, the US would likely be driving down oil prices to help discredit Republicans right before a mid term, not to try and cause the Russians a big problem.

Russian oil production is in a shambles anyway, and has been an environmental disaster. You wanna know what Texas would look like without environmental regulations, you only have to go to the Odessa region of Russia, or the Georgian oil fields. The environment has been completely, utterly devastated by the oil companies. Nothing grows, nothing lives.

The Russians also trade their oil (mostly with the Chinese) in Rubles (ever since last year coming off the US reserve currency) so pushing down he price of the world oil market wouldn't have any effect on Russian oil, as the Russians don't trade using the same markets as everyone else.

originally posted by: StoutBroux

originally posted by: 727Sky
a reply to: Xcathdra

When the price of oil hit 90 USD on the world markets Russia was hurt more than many other exporting countries.

Remember when Saudi Arabia got pissed because the false flag chemical attack did not work for bombing Syria ? Well they should be happy now with bombs falling under the guise of taking out ISIS.

Some claim America and the West are but shadows of their former strength.. at this point I would not want to bet the house on that being so.Right or wrong USA and allies are quite capable of stirring the pot all over the world.

The strength may be there but the leadership is not. When you castrate a bull you knock out his mentality, which is needed to use that massive strength.

That's why Russia appears stronger than the US. Putin's got 'tude. Obama......a great golf game.

Putin doesn't have an opposition trying to undermine his every move to deal with, and in reality, doesn't have to care about getting his party reelected.

Putin can also do whatever he wants without being criticized about it in every media outlet, and without every back yard hack forming an opinion about what he just did.

When NO ONE in your home country is criticizing what you do, of course you look strong.

In America though, there are free speech rights, public rights to freedom of information, a free media that can criticize without fear of persecution, and an opposition who claim to be Patriotic Americans while they work to destroy all those who are trying to make the country a better place.