After blogging yesterday on the Obama Administrations latest loonytoons plan to ‘kick-start’ the (US) economy, which you can bet our equally inept government will not be long in taking up, I though a mash up of snippets from financial papers and blogs might be a good way to kick off today, just to show you all again that despite the propaganda happy pills we are given every day, the global financial system is still FUBAR and our leaders (of any mainstream political party) do not have a clue what to do next.
This first story is something I have warned was imminent many times:
from Zero Hedge
The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan
A little over a month ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative. This changed rather dramatically overnight when in a little noticed statement, Gazprom’s CFO Andrey Kruglov uttered the magic words (via Bloomberg):
GAZPROM READY TO SETTLE CHINA CONTRACTS IN YUAN OR RUBLES: CFO
In other words just as the US may or may not be preparing to export crude – a step which the clever boys and girls in Washington have nopt yet worked out would weaken the dollar’s reserve status as traditional US oil trading partners will need to find other import customers who pay in non-USD currencies – the world’s two other superpowers are preparing to respond. And once the bilateral trade in Rubles or Renminbi is established, the rest of the energy world will piggyback. [ Continue Reading ]
First Russia and China, then UAE, Egypt, and Turkey and now it appears Germany is pulling the rug out from under US hegemony
First Russia and China, then UAE, Egypt, and Turkey… and now it appears Germany (following a phone call with Putin) is pulling the rug out from under US hegemony – just as Obama’s warmongery ramps up…
*MERKEL SAYS U.S. CAN’T SOLVE ALL THE WORLD’S PROBLEMS ANYMORE
Which is odd because just yesterday, President Obama (who never lies) stated “The United States is and will remain the one indispensable nation in the world…” adding that “no other nation can do what we do.” Perhaps he is wrong? Oh, but it’s racist to suggest he might be wrong
Meanwhile Der Spiegel was reporting fears among the German business community:
Just a day after the US sanctions were announced, the German-Russian Foreign Trade Office in Moscow was besieged by phone calls from concerned German companies who do business with both the US and Russia. The German Chambers of Commerce and Industry estimate that up to a quarter of German companies that do business abroad could be affected. And the risks are significant, with large fines threatening those who violate the American sanctions, whether knowingly or not.
Stefan Fittkau, who heads the Moscow office of EagleBurgmann, the Bavaria-based industrial sealing specialists, says company sales have already plunged by 30 percent. “Orders have been cancelled or delayed — or we simply don’t receive them anymore,” he says. Novatek, Russia’s second largest natural gas company, for example, had hired EagleBurgmann to take care of seals at a vast liquefied natural gas facility on the Yamal Peninsula in Siberia. Now, though, doing business with Novatek is no longer allowed.
As Boggart Blog has told you previously, the rush to suck up to Obama by imposing the sanctions the USA demanded on a nation that is a much bigger trade partner of the EU than the USA, is backfiring with European economies being hit far harder by the measures than the Russians.
Argentina And A Few More Countries Near Bankruptcy
So the QE led recovery is surging ahead all around the world? Well that’s the fairy tale being pumped out by mainstream media as the elite grow increasingly fearful people are catching on to just how totally screwed up we are thanks to the efforts of the Oligarchic Collectivism of the globalisers.
from Hang The Bankers
Latin America’s third-largest economy, Argentina, defaulted on scheduled payments on its government bonds at the end of July. Credit agency Moodys reported Argentinas one-year Sovereign EDF (Expected Default Frequency) to soared 48% in one week earning the country a Caa1 rating.
A Caa1 rating is well below the first level of bad rating Ba1, which already indicates a significant credit risk- Argentina Moodys credit rating is Caa1; or Negative.
Heres a few more negative ratings; Cyprus Caa3, and Greece Caa3. You would expect these countries to have these types of ratings as their economies have all but collapsed with banks defaulting as well as governments if were not for EU bailout packages and assistance from IMF/ECB and even the US Federal Reserve.
Alongside them however is Egypt with Moodys credit rating Caa1, Jamaica Caa3, Pakistan Caa1, Ukraine Caa3, Venezuala Caa1 and finally Belize Caa2 any one of these countries could effectively go bust at any moment, plunging the world into another crisisette. But should one of the bigger economies go ……
All of which goes to show what you read or hear in mainstream news is a joke:
Russia throws down the gauntlet: energy supply to Europe cut off; petrodollar abandoned as currency war escalates
There are some big moves taking place on the global stage that you need to know about, as this could all lead to World War III. Yesterday Russia cut off its natural gas supply to Europe, “plunging the continent into an energy crisis ‘within hours’ as a dispute with Ukraine escalated,” the Daily Mail reported. “This morning, gas companies in Ukraine said that Russia had completely cut off their supply. Six countries reported a complete shut-off of Russian gas shipped via Ukraine today, in a sharp escalation of …