According to a weekly report by the fed, a record amount of U.S. government bonds (worth about 105 billion dollars) was withdrawn from the accounts of the fed, sold, or simply moved to another Bank (which for political reasons is the same). The total number on the fed's balance sheet US securities owned by foreign entities, has decreased to the level of December 2012.
One of the suspects was China. However, a much more likely candidate is Russia, which, as you know, there was some disagreement with the West in General and its financial system in particular. And what might have made the Russian state structure with bonds (for sure it will be known in June) is only the tip of the iceberg. According to the Financial Times, was especially hidden training sanctions (involving the freezing of accounts and confiscation of assets after the Crimean referendum), the Russian company quietly withdrew billions of dollars from Western banks. The prospects for major Western gambit has been called into question.
Among those who will repatriate their funds to Russia from the Western financial organizations operating in the U.S., named as the largest banks Sberbank and VTB, and industrial companies, such as LUKOIL. In addition, VTB has cancelled the summit of American investors, scheduled for next month. The outflow started after the failed desperate attempt to solve the Ukrainian crisis through diplomatic negotiations between the Russian foreign Minister and U.S. Secretary of state.
Further, the anticipated sanctions intensify bilateral trade of Russia and China with the use of the ruble or yuan, bypassing the dollar. And perhaps even gold. These assumptions are reflected in the price of the yellow metal, which last week reached a six-month high. Strengthened financial linkages between these two resource-rich countries, even more will alienate them from the "devil of American imperialism".
West, in his characteristic manner believes that nothing excites Russia, as the level of quotes on the MICEX, and a significant fall of Russian stocks is enough to intimidate Putin. Here in America the most important for everyone is the question and I took the S&P 500 index once the height, right?
The West understands that Putin is much more important to high raw material prices, primarily for oil and gas, and not the ghostly indicators of well-being, such as record high stock prices. The majority of Russians don't care about daily fluctuations in stock markets. As for the oligarchs, if anybody will be happy temporary decrease the size of their fortunes and influence, so is Vladimir Putin, whom the West once again highly underestimated. Not to mention the fact that ordinary people also won't be disappointed and will be treated worse for Putin, if the West will fray a little local billionaires.
Yes and actually not all of Russia's major businessmen are afraid of what is happening. So, according to "Bloomberg", the richest man in Russia 60-year-old Alisher Usmanov manages its most valuable asset, the largest producer of iron ore raw materials in Russia's metalloinvest holding company, three subsidiaries, one of which is located in Cyprus belonging to the European Union. In addition, he owns a London mansion in Victorian style, which he bought in 2008 for $ 70 million. Since the crisis began he had lost half a billion dollars.
"Possible sanctions against Russia worried about us, but no catastrophic consequences for our business is not expected", – believes Ivan Streshinsky, head of the company "USM Advisors", which manages Usmanov's assets, including its share in OJSC "MegaFon" and the group "Mail.Ru". – "Proceeds "Mail.Ru" and "Megaphone" come from Russia. People will not stop calling and use the Internet. Metalloinvest may face closure of American and European markets, but it is possible to shift to China and other markets".
Good job, Obama has been even more closer to China and Russia! Moreover, we should not be surprised that while Russian companies withdraw money from the West, Western firms also left Russia.
According to a major Moscow banker, 90 per cent of investors have already acted as if sanctions have already been applied, and this is a reasonable approach to the management of possible risks.
The last two weeks US banks actively sold Russian bonds. According to the Bank for international settlements, they intend to bring about 75 billion dollars. Head of global markets of the company "BCS" (one of the largest Russian brokers) Joseph Dayan noted that in a few days on the market of the Russian bonds is observed a rather bleak picture, and this is partly due to the reduction of international investment banks. Most foreign banks have not stopped lending to Russian organizations. But a half-dozen current financing transactions, the largest companies have remained unsolved because of the desire of lenders to evaluate how hard would be sanctions.
Summarizing, we can conclude that Russia, thinking a few steps ahead, already has withdrawn the lion's share of its assets from the West. Remember how a year ago it became known that the very Russians who were supposed to be affected by the situation in Cyprus, managed to withdraw in advance most of the money. As a rule, they know the situation. Stronger than all suffered innocent Cypriot citizens.
Because Russia's reaction we already know, now I wonder how the opposite is true: the West, especially Europe, ready to the situation when gas supplies to Germany suddenly reduced by a third?
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