by Georgi Stankov and Erick Premiere, December 16, 2014
Greetings Georgi,
The Orion system is on death watch as Russia raises its interest rates to protect against the forthcoming collapse…As you have elegantly elaborated Orion system is crying !
Erick, USA
Russia Defends Ruble With Biggest Rate Rise Since 1998
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Dear Erick,
I read about this hike in interest rates but I am not sure if this move will not hurt Russia. But ultimately it does not matter, anything that destabilizes the whole financial system is good for us as it accelerates our ascension.
George
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Amen ! The stench of iniquities has truly reached the heavens… Each day I am seeing etheric portions of my multidimensional self…surely ascension is close…
Thanks Sir.
Erick
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Greetings Georgi,
All seems to go accordingly with so many in the USA cheering the destruction of the ruble… that being said what do you think of this stratagem listed here? (see Sarcha Faal Report below)
Erick
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Dear Erick,
Sorcha Faal has sometimes very good insider reports, but sometimes they have been bluntly wrong in the past. This latest report is based entirely on well known and published facts and it is self-evident that the Russians have their own counter-strategy ready when the USA and the EU try to destabilize them financially as is the case now with the low oil price and economically with sanctions and other bank restrictions.
But I have somewhat difficulties to understand the following basic statement of Sorcha Faal:
“A chilling report published today by the Ministry of Economic Development (MED) is warning of potentially “catastrophic unknown consequences” relating to President Putin’s issuance to the Central Bank of Russia (CBR) of orders to initiate what is commonly known within the Kremlin as the “Samson Defense” designed to crash the Russian ruble, while at the same time insuring the economic collapse of both the United States and European Union.”
Russia decided to increase the interest rates of the ruble drastically in order to save the ruble and not to crash it. What may happen is that with such high interest rates the Russians will eventually drain the home credit market and cause a recession in their country. Well, this recession may be countered by issuing more money and credit by the Central bank as this report says. I assume that Sorcha Faal, who is not very competent in economic issues, may have used an imprecise language here.
Now let me speculate a little bit what has happened so far and what will happen in the coming days. The move of the Russians to raise the interest rates from 10.5% to 17% is extraordinary and cannot be explained solely as a support for the crumbling ruble. There must be much more to that. It is a well known fact that both, the USA and EU, are overwhelmed by their debt – both fiscal as well as private and corporate – that they can never pay back.
The Russians, on the contrary, have a very sound balance, both externally and internally. And they have the greatest advantage to have huge resources and to be able to decouple from the Western world trade, which is based on huge imbalances such as the USA trade deficit (700 billion $ per year). The USA is printing toilet paper money out of thin air to buy valuabe material goods from the rest of the world. The US production can cover less than 50% of the American demands and private consumption (3/4 of GDP). Without import of high quality products and even food from abroad the Americans will be starved within one week.
In this sense the WTO rules (world trade organisation) is an egregious legalisation of these stark imbalances from which only the USA profits. Even the EU loses in this uneven trade with the exception of Germany as the biggest export country in the world per capita, as long as the dollar is accepted as a world currency. But the moment the dollar crashes, as this very soon will be the case, even Germany will lose a lot and many Germans know it.
All this is perfectly known to the Russians and has been widely discussed by their experts in the Russian media recently. Hence there are no surprises this time. I assume that this huge hike in interest rates in Russia has a much bigger purpose than just supporting the crumbling ruble.
I personally think – and I intended to mention this in my yesterday’s response to you but then left it – that this huge hike in the interest rate is only the first step to introducing the gold-based ruble in close coordination with China.
What makes me think that this is the case?
First, because such speculations are making the round for some time. And second, because China is now in huge trouble after it created a big real estate bubble – many empty cities, airports and highways as prestigious infrastructure projects to keep employment high and to prevent a revolution of the hungry masses. http://www.zerohedge.
There are for instance 500 million empty apartments (!) in China, which bring no revenues as the owners have built or bought them as private investment and do not want to rent them. because their value drops immediately. This bubble is about to burst any moment from now on. Only a few days ago China also tightened the credit ratings for banks and companies which is a similar step as raising the interest rates in Russia – it leads to credit crunch.
That is why I thing that both countries are now preparing the introduction of their new gold-based currencies. In this case it is the best strategy, first to raise the interest rates and thus increase the value of your fiat currency and then to introduce it as gold-based currency. Russia is in a much better position to do this than China as the latter is hugely dependent on international trade – import and export to keep its growth rate high. The Russians are more autark in their economy as they are self-sustainable, both in terms of agricultural products as well as in terms of natural resources and even technology.
The USA and the EU are on the contrary the most vulnerable economies in the world as they are based entirely on constantly growing debt. As I wrote recently, the USA has 700 billion $ trade deficit with the rest of the world as it does not produce anything of real value anymore. As long as cheap products could be imported from China, it was an easy game. But now the imports from China have increased drastically this year, hence the big hidden inflation in the USA, which is another Chinese tactics to crash the USA.
In this respect both countries know who is their enemy number one and that a huge and pitiless war is now being waged. They are not so stupid as the people in the West. The Russian and Chinese elite know that there is no time for niceties anymore and that the war has been officially declared by the USA on them asking the Saudis to crash the oil price a couple of months ago.
What the stupid Obama & Orion Co. did not figure out, was that the Russians and Chinese will play in this poker game imposed on them and kill the USA with their own weapons of mass financial destruction, as this report by Sarcha Faal confirms one more time.
I have made you aware of the collapse of the US shale fracking industry some time ago. I think that this was the first step of the Russian plan, defined as “Samson Defence” in this report. Russia and Putin played with the USA the same poker game and increased the stakes beyond the pain threshold for the USA. They did not lower their oil production to support the oil price but increased it instead, knowing that the USA will crash first in this situation.
This is the same tactics as the Russians applied to EU by banning all food imports from these countries in response to their sanctions. The pain was stronger felt in the EU than by the Russians, who immediately found a substitute in Turkey and Latin America. They also began to increase their own agricultural production. The Russians knew very well that the Saudis have vested interests in crashing the USA oil industry and have no scruples to turn against their American ally that has already failed to protect them politically against Iran and Syria.
What we now observe is the classical Diadochus fights among the dark western Cabal shortly before their demise – everybody is fighting against everybody for the few left bones like rabid dogs. While the Western camp is deeply divided, Russia and China pull together away the rug from under the feet of the Western cabal on the other side.
It was the pronounced aim of the USA foreign policy to divide Russia and China as to prevent a new powerful Eurasian union of the two countries. That is why they triggered the Ukrainian conflict but failed badly as China sided with Russia and has actually acknowledged Crimea as part of Russia. Now China is even profiting from the plunging oil price which helps compensate for their weak economic growth this year.
As you see, all economic trends now run in favour of Russia and China and against the West, even though these two countries may not have the time to implement their plans.
What do I expect in the coming days?
The plot is thickening indeed. The big hike in Russian interest rates is a two-edged sword. It will kill the USA, but it may also kill the Russian economy. The Russian are however under full control of the situation as they can lower the interest rates of the ruble anytime when they begin to feel the pain. But the USA can do nothing about that. They are like the worst poker player who has a poor hand but continues stupidly raising the stakes without having any money to pay for it, or even worse, by borrowing money from his adversaries as the EU tried to do with Russia to save Ukraine by asking them to cancel the Ukrainian debt (as the German finance minister did recently in a conversation with his Russian colleague. In vain!).
This is what already happened with the Saudis’ deal to crash the oil price as to harm Russia. Instead they crashed the American oil industry, which was based on a 1000 billion $ credit bubble that brings no revenues anymore.
Putin and the Russians know that the FED and ECB have no chance to increase their interest rates even modestly and support the dollar and the Euro, as this will crash their already depressed economies. They can only feed the Orion Beast by creating new debt and keep the liquidity high. Otherwise, the Western economies will experience a sudden death. This is what, I think, the Russian are now doing with the help of China, which always has a more cautious policy as it has much more to lose than Russia. But they work in tandem to crash the West.
This scenario only reinforces the global financial crash, which we accelerated with our Decree today. At the end, it does not matter if the Russian economy also crashes, as long as the West fully defaults and we have a sudden shutdown of all banks here. After that we will have the total collapse of the Orion matrix and the long awaited ascension scenario, as envisioned by myself 17 years ago, will unfold. It is time for us to go home.
Everything is now aligning in a perfect order and I cannot hide my aesthetic pleasure in observing this beautiful scenario of total destruction of the Orion matrix that is now unfolding in front my watchful eyes every day. All this in full knowledge that we are the new Logos Gods and creators of this scenario – so to say, the hidden ace up in the sleeves of God’s garment.
With love and light
George
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Putin Orders Feared “Samson Defense” To Collapse US-EU Economies
By: Sorcha Faal, and as reported to her Western Subscribers
http://www.whatdoesitmean.com/index1825.htm
The CBR’s “Samson Defense” is a Russian monetary strategy designed to economically mirror Israel’s feared “Samson Option” deterrence strategy of massive retaliation with nuclear weapons as a “last resort” if military attacks threaten its existence.A chilling report published today by the Ministry of Economic Development (MED) is warning of potentially “catastrophic unknown consequences” relating to President Putin’s issuance to the Central Bank of Russia (CBR) of orders to initiate what is commonly known within the Kremlin as the “Samson Defense” designed to crash the Russian ruble, while at the same time insuring the economic collapse of both the United States and European Union.
In Putin’s action against the US-EU, this report says, the CBR’sstunning move earlier today in raising the interest rate to 17% from 10.5% has had its desired consequence as the ruble plunged more than 20% and to date and has now lost about 57% of its value versus the US dollar since the start of the year, which exceeds the 36% plunge related to the 2008 global economic crisis.
Most importantly to note about this currency plunge, however, this report notes, are that Russia’s fiscal domestic accounts are denominated in depreciating rubles and its oil exports are invoiced in an appreciating US dollar, meaning that the fiscal blow from lower oil prices will be cushioned by a weak ruble, and was a strategy that Putin warned about earlier when he stated that the Federation was braced for a “catastrophic” slump in oil prices.
Equally as important to note, MED analysts in this report say, the CBRagreed to lend money this week against 625 billion rubles (over $10 billion) of bonds freshly printed by oil giant Rosneft allowing it to hoard its export dollars and meet a $10 billion loan repayment later this month, and another $4 billion in February.
As to how catastrophically low oil prices can fall, this report continues, it notes that OPEC has already stated that they are willing to push prices as low as $40 a barrel in their bid to take on Russia and US shale, a stance which began this past September when the Obama regime reached a secret deal with Saudi Arabia in order to flood the world with oil to collapse the Russian economy, but which has now backfired on them as the Saudis seek to bankrupt US shale producers too.
With 15% of US shale gas producers are already losing money because of the Obama regimes secret deal with Saudi Arabia, this report warns, up to half of all of Americas shale operations will face financial ruin if oil prices slip below $55 a barrel leaving millions without jobs in an already collapsing economy.
To the ability of the Federation withstanding a “Samson Defense” economic war against the US and EU, this report says, it should be noted that the current debt of the US stands at a staggering $18 trillion [an amount so large it is nowmathematically impossible to ever pay back] while the EU is, likewise, at a equally staggering amount of €12 trillion ($15 trillion).
Compared to the combined US-EU debt of $30 trillion, this report notes, Russia has only $678 billion in foreign debt, has very little outstanding debt and its public debt to gross domestic product ratio is 10% – an excellent figure compared to the EU’s dismal average ratio of 90.9 and the US’s 71.8%.
Likewise to note, MED analysts in this report say, is that while Russia’s debt to GDP is roughly 14%, the EU currently stands at 90.9%, the US at 80.2%, and Japan’s at 227%, meaning, simply, that the Federation can withstand any economic hardship the Western alliance puts against it.
Also, and as independent analysts confirm, Moscow‘s coffers are well-filled, giving Russia the durability to weather a double external shock – tanking oil prices and Western sanctions.
The Finance Ministry controls two sovereign wealth funds, which contained some $172 billion as of December. The money, held in foreign currency, has been accumulated during the past 15 years of high oil and gas revenues and has been earmarked as a piggy bank, primarily for the pension system.
Additionally, the CBR’s overall foreign currency reserves stood at a healthy $416.2 billion dollars in early December.
And most critical to note about the “Samson Defense”, this report concludes, is that Russia will not cut its oil production against the headwinds of collapsing prices, and may, indeed, increase its amount as the plunging ruble, combined with a rising US dollar, actually makes Federation oil the most affordable in the world.
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Right again Georgi !
The Russian Ruble Is Hereby Halted Until Further Notice
http://www.zerohedge.com/news/
Earlier, we reported that various currency brokers such as FXCM and FxPro, would – as a result of the soaring liquidity in the USDRUB pair – suspend trading in the Russian Ruble (while other merely hiked margins to ridiculous levels). It appears things have escalated again, and as FXCM just reported, instead of just politely advising clients not to open new USDRUB position tomorrow, it has advised anyone long, or short, the USDRUB that their positions will be forcibly shut in moments.
So for those curious why there appears to be a collapse in Ruble volatility in the past few hours which in turn has sent both stocks and crude soaring, the answer is simple: nobody is trading it!
And this is what happened following the post: as soon as all those short the RUB (long USDRUB) realized they have to take profits, the USDRUB tumbled some 500 pips (!) in the process sending stocks surging.
