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Thursday, May 12, 2022

Biden's sanctions Make Russia Great Again

While Congress just handed $40 billion to Ukraine, Biden's sanctions are giving Russia billions more in revenues, which have made the ruble strong like bear!

Market Insider reported, "The Russian ruble is the world's top performing currency in 2022, as it's up 11% against the dollar."

Biden's economic sanctions are a MOAB -- Mother Of All Backfires. Not only is the ruble up, up and away, but Russian oil is raking in record revenues.

First, the ruble.

The Market Insider report said, "The Russian ruble has turned into the world's best-performing currency this year, as its onshore rate is up more than 11% against the US dollar so far in 2022. 

"The ruble is the biggest gainer among 31 major currencies, according to data tracked by Bloomberg, and has overtaken the Brazilian real, which is up 9% this year.

"But the ruble's advance has come after Moscow imposed a slate of capital controls to prop up the economy to offset Western sanctions for its war on Ukraine. That means few investors are able to take profits from the currency rally out of Russia. 

"The capital controls are in addition to Russia demanding ruble-payments for natural gas supplies from European nations, as well as forcing exporters to sell foreign-exchange holdings. 

"Nonetheless, the success of the Kremlin's artificial market maneuvers has outperformed those of other nations like Argentina and Turkey when they attempted similar measures."

Economic sanctions forced Putin to come up with alternative ways of banking and financing. He did. He may be insane with power but he is not stupid.

Zero Hedge laughs in Biden's face.

It reported, "A few weeks after we learned that Russia's current account just hit an all time high thanks due to soaring commodity exports (just as the US trade deficit blew out to a record high on its own) we learned that contrary to the intentions of European countries, a calculation by a German think tank found that Russia's oil and gas revenues hit a record high in April, rising to 1.8 trillion rubles in a single month, after 1.2 trillion in March, leading to the following stunning statistics: 'After only 4 months, Russia's federal budget has now already received 50% of the planned oil and gas revenue for 2022 (9.5 trillion).'"

Russia is getting its ass handed to it by a country one-fourth its size using weaponry supplied by NATO. The war shows Russia is a third-rate power run by some of the dumbest generals in world history. We haven't seen this bad military leadership since Robert E. Lee at Gettysburg.

But its economy is kicking ass.

Zero Hedge also reported, "Moscow earned roughly $20 billion each month in 2022 from combined sales of crude and products amounting to about 8 million barrels a day, the Paris-based IEA said in its monthly market report.

"As we have documented frequently, Russian shipments have continued to flow freely even as the European Union edges towards an import ban, and international oil majors such as Shell and TotalEnergies have pledged to cease purchases. Countering these self-imposed sanctions, Asia has remained a grateful and keen customer, with China and India picking up cargoes no longer wanted in Europe, and doing so at a huge discount to spot.

"Even as Russia has kept oil output steady, reduced flows of Russian refined products such as diesel, fuel oil and naphtha have aggravated tightness in global markets, the IEA noted, echoing what we have said virtually every day for the past month. Stockpiles have declined for seven consecutive quarters, with reserves of so-called middle distillates at their lowest since 2008.

"For all the disruption, Moscow has continued to enjoy a financial windfall compared with the first four months of 2021. Despite the EU’s public censure of the Kremlin’s aggression, total oil export revenues were up 50% this year."

***

Now then, I said this before Biden imposed his stupid sanctions and I say it again: Sanctions do not work.

40-plus years of sanctions failed to flip Iran.

60 years of sanctions failed to flip Cuba.

70 years of sanctions failed to flip North Korea.

Meanwhile, we face 11% inflation and we've run out of baby formula. (Thank goodness for Karo syrup and canned milk.)

But under the Cui Bono -- who benefits -- Rule maybe that was the deal. Maybe Putin agreed to invade Ukraine in exchange for economic sanctions. This placated the military-industrial complex by creating a need for the Pentagon to replenish its stock of missiles and the like. This also helped Putin, which was a payback for helping Democrats compile that fake Russian dossier.

OK, I am kidding.

Putin is incompetent in military matters.

Biden is incompetent in economic matters.

And Chairman Xi is eyeing Taiwan.

11 comments:

  1. Putin is incompetent in military matters.
    Scott Ritter disagrees.

    ReplyDelete
  2. Sanctions are working as planned. Europe is being isolated from Russia and will be continue to be under the thumb of the US, even more so. The primary target is Europe, not Russia.

    ReplyDelete
    Replies
    1. Yes, and the Russkies have such a better deal to offer, right, Jeffery?

      Delete
  3. I've been watching You Tube footage of Russia's total
    FUBAR . FlyingT-72 turrets and all. Very little air cover,
    Troops low morale, Not yer Grandpa Ivan's Red Army.

    ReplyDelete
    Replies
    1. That one wasn't that good, either. They would have flopped were it not for Dolf's many blunders.

      Delete
  4. Dems evil+incompetence approaches limitless.

    ReplyDelete
  5. Rand Paul just stalled the latest Uke bailout.

    Biden is incompetent in economic matters.

    No, he is incompetent in any honest dealings in which men or nations engage.

    ReplyDelete
  6. Don, while I don't believe a correction is required, the sentence "Biden is incompetent in economic matters" - the "in economic matters" is not necessary

    ReplyDelete
  7. I love summer and early fall, but November can’t get here fast enough.

    ReplyDelete
  8. You misspelled John C. McClellan. Robert E Lee only made one mistake at Gettysburg (Pickett's Charge) Otherwise he was one of the best generals in the Civil War. McClellan snatched defeat from the jaws of victory for over two years while wielding one of the largest armies on Earth.

    ReplyDelete