3509: Da Fuck?!

[Apia resurrected]

I guess we will see.
I still wished people wouldn’t use words like “ economic nuclear bomb” to show how serious it is. I’m not sure if more angst and panic is something we really need.
( I think both of them are here in huge amounts already!)

[shoebootie]

Keith's lil nummy yummy noises for his athletic greens makes me smile.

[nordcharonmir]

Originally Posted by Jenni

I’m still listening but I wanted to post this about the sanctions against Russia.. Someone more literate with the financial markets explained the it like this to me…

“The seizure of central bank deposits announced yesterday is an economic nuclear bomb. People don’t get how significant it is. Russia will revert to a barter economy within days.

Every Russian is now bankrupt. Immediately. The state can’t prop them up. What happens next is anyones guess. They could be using cigarettes as currency any day now.

We’ll find out if an army will still fight if they’re not being paid.”

I’m really hoping they’re right about how serious the actions are.

Central Bank deposit seizures aren't nearly as big of a deal as your friend expressed. It is only the foreign deposits in foreign currencies being held. This will effect the gov's liquidity and currency regulation to an extent. Read somewhere that it is only about 600B which sounds like a lot but have to remember how much currency all of Russia has in circulation. Will cause a jump in inflation (a drop in buying power of the currency by definition) and some consumer panic but won't put them into a barter economy in and of itself. Actually Russia has a few mechanism to recover some of the citizen's foreign currencies to stake against rouble to hold currency pricing a little more constant but these things all take time. Consumer panic and runs on banks because of sanctions etc I believe is biggest potential issue for their citizens. Some of the actions around central bank declaring unquestioned liquidity to all Russian banks may actually have a worse long term effect but hard to tell with so much economic chaos over there what is causing what.

[Jenni]

Originally Posted by nordcharonmir

Central Bank deposit seizures aren't nearly as big of a deal as your friend expressed. It is only the foreign deposits in foreign currencies being held. This will effect the gov's liquidity and currency regulation to an extent. Read somewhere that it is only about 600B which sounds like a lot but have to remember how much currency all of Russia has in circulation. Will cause a jump in inflation (a drop in buying power of the currency by definition) and some consumer panic but won't put them into a barter economy in and of itself. Actually Russia has a few mechanism to recover some of the citizen's foreign currencies to stake against rouble to hold currency pricing a little more constant but these things all take time. Consumer panic and runs on banks because of sanctions etc I believe is biggest potential issue for their citizens. Some of the actions around central bank declaring unquestioned liquidity to all Russian banks may actually have a worse long term effect but hard to tell with so much economic chaos over there what is causing what.

Well that’s disappointing. I’m all in favour of economic nuclear bombs over real ones.