Kerry warns Russia of expensive new sanctions

[Bosonic]

Source: AP

WASHINGTON (AP) — Secretary of State John Kerry is accusing Russia of failing to live up to commitments it made to ease the crisis in Ukraine.

In unusually blunt language, Kerry said Thursday that unless Moscow takes immediate steps to de-escalate the situation, Washington will have no choice but to impose additional sanctions. He said It would be a "grave" and "expensive mistake." His comments come amid an increasingly bitter war of words over who is to blame for the crisis in Ukraine that is becoming steadily more violent.

The U.S. says Russia is fomenting unrest and separatist sentiment in eastern Ukraine following its annexation of the strategic Crimean Peninsula. Russia accuses the U.S. of encouraging a pro-Western government in Kiev to adopt anti-Russian policies.

Read more: http://news.yahoo.com/kerry-warns-russia-expensive-sanctions-224318720--politics.html;_ylt=AwrBJR.ik1lTZnYAZlXQtDMD

[former9thward]

1. Empty rhetoric.

There is nothing much else the U.S. can do without Europe and they have made it plain they wish no more sanctions. So Kerry put up or shut up. Putin doesn't care.

[Bosonic]

2. Russia’s Gazprombank Preparing for U.S. Sanctions Over Ukraine

Russia’s Gazprombank Preparing for U.S. Sanctions Over Ukraine

OAO Gazprombank executives are readying Russia’s third-largest lender for possible U.S. sanctions as the Obama administration prepares its response to escalating tensions in Ukraine, according to two people with knowledge of the deliberations.

Gazprombank is a potential target, said a U.S. official, who asked not to be identified because the information is confidential. Another Russian-state controlled financial institution, development lender Vnesheconombank, is taking precautionary measures against possible sanctions, according to one person familiar with talks at that bank. Spokesmen for Gazprombank and VEB, as it’s known, declined to comment.

President Barack Obama said yesterday the U.S. and its allies have additional sanctions against Russia ready to go as the crisis in Ukraine intensifies. Russia is aware of broad tools the U.S. is prepared to use if the country doesn’t meet the commitments under last week’s Geneva agreement, which called for de-escalation in Ukraine, said a Treasury official, who asked not to be identified because the future actions haven’t been announced yet. Measures are being considered against individuals, as well as financial services, energy and defense, Treasury Secretary Jacob J. Lew said last month in a statement.

http://www.businessweek.com/news/2014-04-24/russia-s-gazprombank-said-to-ready-for-u-dot-s-dot-sanctions-on-ukraine

[DeSwiss]

15. The US is little more than a old, demented and craven actor hanging on desperately......

...as the curtain falls. One more scene. One more soliloquy. One last conquest for empire!

One last hurrah.

There won't be much to this if there's no money to be made by the MIC. If no missiles fly and no bombs explode there ain't that much money in replacing fuel alone. Shit must be destroyed in order for replacement orders to fly. Or abandonment works if you have a nice country to leave your excess military shit in.

And with our sole growth industry being Ponzi Schemes© and War®, and with no one around (only tiny adversaries need apply) to fight, they are flummoxed as to what to do next. Thus, the rusty sword rattling Sec. Kerry is sent out to scare the Russians into compliance with his stare. If this were the good 'ol days, they'd of had their old war by now. Dammit!

But everyone's hip to the means and the methods that have been used to get us all riled up for a new war -- just like Sweeps Week -- a great media production of the ''evil enemy'' proceeds each one every time -- but that doesn't work anymore either. Once they all turned to watch CNN -- to see the missiles fly and bombs exploding. Now it is CNN that bombs -- and they tune for the laughs.

It's so embarrassing when you want to put on a war, you send out nice engraved invitations and you even request RSVPs (hereinafter referred to as knuckling under to the threat of sanctions). And then on the deadline day, no one shows up. No is one shaking in their boots. No one even mentions it. Nada. Zilch.

The US has become a joke bully, because everyone knows it have a glass jaw. How will the US ever live it down?

- Oh well, our military rulers have at least managed to bring heroin prices down and to improve its purity. That should bring in a lot more income for The Job Creators®. So that's something I suppose......

[center]Heroin purity up, cost down, making potent drug available to younger crowd

[/center]

[totodeinhere]

3. Not true.

http://euroasianews.com/eu-threatens-russia-with-more-sanctions-over-ukraines-russian-speaking-regions/

EU threatens Russia with more sanctions over Ukraine’s Russian-speaking regions.

[former9thward]

6. Threats and doing something are two different things.

All it takes is one EU country to say no and there will be no new sanctions.

[strikeforce]

7. that article is

over 9 days old.

[Benton D Struckcheon]

5. Cuz Putin's the Invincible Fascist Fighter, right?

Except he actually invited them into his country for a "national forum", and various reps of far right (that's fascist to you) parties "observed" the Crimean referendum. And one of the governors appointed by the new Kiev government (at least one that I know of, there could be more) is Jewish. How could that be?

[former9thward]

8. The Kiev government is full of fascists.

The man facing down Putin's aggression as secretary of the Ukrainian National Security and Defence Council is Andriy Parubiy. He oversees national security for the nation having previously served as security commandant during the anti-government protests in Kiev.

Parubiy was the founder of the Social National Party of Ukraine, a fascist party styled on Hitler's Nazis, with membership restricted to ethnic Ukrainians.

Overseeing the armed forces alongside Parubiy as the Deputy Secretary of National Security is Dmytro Yarosh, the leader of the Right Sector - a group of hardline nationalist streetfighters, who previously boasted they were ready for armed struggle to free Ukraine.

Inside Right Sector was an alliance of hardline nationalist groups including Patriot of Ukraine and the paramilitary group UNA-UNSO, who have fought against Russian troops in Chechnya and Moldova. Their members paraded in balaclavas and wore uniforms bearing far-right insignia, including the wolfsangel.

http://www.channel4.com/news/svoboda-ministers-ukraine-new-government-far-right

But no, Putin is not an "Invincible Fascist Fighter". He is far more complicated than that -- as are most people.

[Benton D Struckcheon]

9. Same question I ask all youse guys

What is the difference, other than who winds up on top, between Putin's revanchist fascism and the (alleged) fascism of the Ukraine government, and why, if Ukraine's government is so fascist, is it not revered by Le Pen and Jobbik and Golden Dawn, the way Putin's is? Is it just that they have a bad PR department?
All of those latter, by the way, were invited to that "national forum" they're holding, and they're going. So who, pray tell, is full of fascists?

[joshcryer]

11. It's about 15-20% fascist.

This is a stark contrast to Putin's party which is 100% fascist.

(It's actually lower than that as only 3 of the 21 leading members are fascist, the rest are like acedemics, artists, journalists, doctors basically Maiden oligarchs who paid for the protests to keep going.)

[joshcryer]

12. This is about tax evasion, which the oligarchs deal in big time.

The US has withdrawn from negotiations on how the Foreign Account Tax Compliance Act will be implemented with respect to Russia.

This is fucking huge.

http://www.politico.com/story/2014/04/the-new-russia-sanctions-stalled-tax-talks-106004.html

[former9thward]

13. The time has past when Western countries can impose their will on others.

Russia has plenty of countries -- the vast majority of the world -- to trade with. That is why the EU does not want to go further.

[joshcryer]

14. Having 30% tax on $40 billion in economic activity is huge.

Especially when dollars are what the oligarchs trade in primarily.

There will be a huge capital flight.

[hack89]

18. The oligarchs can't stash their money in Russia

which makes their massive fortunes vulnerable. That is what the US and the EU will be going after.

[The Magistrate]

19. True, Sir

As this keeps up, tracking the relation of the ruble to the dollar is starting to look like the relation between the greenback and the Confederate dollar....

[former9thward]

20. Fantasy runs deep among some.

The Russian economy will not be crashing despite these dreams. The West has lost control of the world and many are disappointed at that.

[hack89]

21. No - but the oligarchs will not be willing

to give up their fortunes for Ukraine. Let's remember who runs Russia. Don't assume their interests align with Putin's.

[former9thward]

22. Are you predicting Putin will be overthrown?

If so when? If not then what difference does it make?

[hack89]

25. Who knows?

I do know that in Russia, government and military service at the highest levels is a path to great wealth. Putin understands that jeopardizing that wealth is risky. And lets not forget that Putin himself has billions stashed away.

[jeff47]

26. Yeah, the Ruble tanking, the Russian stock market tanking,

and their interest rate hikes on debt all demonstrate that the West has no effect on Russia's economy.

Russia has plenty of countries -- the vast majority of the world -- to trade with.

That's nice. How much money do you think Somalia has for imports? How's that compare to, say, France?

"The west" blocking trade with Russia is a big fucking deal because "the west" has most of the money in the world. Additionally, many products from Russia (ex. natural gas) are not easily shipped to other buyers. Since those are Russia's major exports, that's a rather big deal.

[former9thward]

27. You seem to be leaving out China and India.

Both allies of Russia and the world's two biggest countries. How convenient for your theory. Imperialist domination -- no matter where it is coming from -- dies hard.

[jeff47]

28. No, I'm not.

Because China and India don't have as much money as Europe and the US, so they can't buy as much from Russia.

Also, Russia has a pipeline to send natural gas to Europe. Russia does not have a pipeline to send natural gas to China nor India.

However, the Ruble is tanking vs the Yen and the Rupee....and it's so odd you just keep skipping over all those financial market reactions.

[former9thward]

29. Currencies go up and down for a host of reasons.

As do economies. One would think anyone who went through the 2008-2009 period in the U.S. would know that. China seems to have enough money to bail us out with their Treasuries buys. But fine, think this is all because of "sanctions". It will be interesting to see what the excuses will be when the Russian economy improves and they are still in Crimea.

[jeff47]

30. So many errors contained in one post.

Currencies go up and down for a host of reasons.

Ok, then why has the Ruble crashed against the currency of every other developed country?

If it isn't due to fear of the effects of sanctions, something else would be pushing the currency down. So what is it?

China seems to have enough money to bail us out with their Treasuries buys

Excellent regurgitation of that Republican talking point!

Guess who owns most of US debt? The US.


Every block on that graph that is not "Foreign and international" is a US entity. So the entirety of our debt to foreign countries is around 30%. The remaining 70% of our debt is owned by us.

So how much US debt does China own? $1.3T. Also known as.....10%. OH MY GOD!!!!

How much does Japan own? $1.1T. Huh...odd that nobody talks about "Japan bailing us out". Almost like China-as-boogeyman is a political talking point.....

So why was China buying so much debt? To hold the Yuan down so they remain "cheap" versus the US. Guess what stopped working in 2008? Buying debt to hold the Yuan down versus the Dollar. Which is why China has more-or-less stopped buying US debt.

But "OMG CHINA OWNS US ALL!!!!!" is a fantastic lie to tell when you're trying to slash federal spending. Especially when you imply that China could somehow demand immediate payment. They can't - the payment schedule is fixed. Unfortunately, a whole lot of people have bought into the lie.

But fine, think this is all because of "sanctions".

You are free to show how it is some other specific cause.

[joshcryer]

31. +1, tired of the China talking point.

Especially because if China were to call in their holdings their economy would collapse.

[jeff47]

33. No. China can not call in their holdings.

There is no mechanism where China can demand early payment on their debt. They can sell the treasuries on the open market, but all treasuries pay out on a fixed schedule.

[joshcryer]

35. Fair enough but the Fed would get involved.

[former9thward]

32. If you look at a graph of the ruble v. dollar it has been going down for several years.

Long before sanctions. But that does not fit your narrative. As far as the rest of your post it devolved into a series of strawmen. You can play that game with a newbie.

[jeff47]

34. Except it hasn't.

Here's the Ruble vs the Dollar for the last 5 years. So where's the big down trend?

Here's the Ruble vs the Euro. Looks nearly the same.

As far as the rest of your post it devolved into a series of strawmen.

You are claiming China owns a massive part of the US debt - that they "bailed us out". This is utterly and completely false. Which is why you are now running away from your claim.

You have a vision in your head. When reality does not match, you are claiming reality is wrong.

[SoapBox]

4. Czar Putt-putt...

Has a bizarre death wish of some kind...he couldn't give shit about "sanctions".

[DeSwiss]

10. :-/

[representativepress]

16. VIDEO of Kerry's speech

VIDEO: Secretary Kerry's Threats and Accusations Against Russia Over Ukraine

(Kerry has already been exposed as someone who can't be trusted)

[Bosonic]

17. Russia fails to fight rouble slide with rate rise

Russia fails to fight rouble slide with rate rise

The Russian central bank's surprise move to increase interest rates has failed to buoy up the beleaguered rouble.

The bank, which raised interest rates to 7.5pc from 7pc on Friday morning, said that it took the decision because of a greater than expected impact of rouble devaluation on inflation.

It said the move, which follows an unprecedented 150 basis point rate rise last month, would enable the bank to lower inflation to 6pc by the end of 2014 and that it did not plan to cut rates in the coming months.

The rouble, which has lost nearly 8pc against the dollar this year, firmed slightly following the announcement, but has since dropped below pre-announcement levels.

http://www.telegraph.co.uk/finance/economics/10787338/Russia-fails-to-fight-rouble-slide-with-rate-rise.html

[Bosonic]

23. Russia's credit rating downgraded by S&P

Russia's credit rating downgraded by S&P

Credit ratings agency Standard & Poor's has cut Russia's rating to one notch above "junk" status.

The move comes as foreign investors continue to take money out of the country amid tensions over the situation in Ukraine.

S&P downgraded Russia's rating to 'BBB-' from 'BBB'.

Also on Friday, Russia's central bank raised its key interest rate from 7% to 7.5% as it sought to defend the value of the rouble.

http://www.bbc.co.uk/news/business-27159423

[Bosonic]

24. With Downgraded Debt, A Plunging Currency, And A Weak Stock Market Russia Is In Real Trouble

With Downgraded Debt, A Plunging Currency, And A Weak Stock Market Russia Is In Real Trouble

I’ve written before that if Russia was going to “pay a price” for its annexation of Crimea that this was likely happen through a natural market reaction, and not through sanctions imposed by the United States or the European Union. While the Obama administration and its European partners are still debating the imposition of additional sanctions (some of which could be quite severe) the market has moved at a much more rapid clip, and things have been pretty ugly for Russian stocks and bonds.

Earlier today Standard and Poor’s cut Russia’s sovereign debt rating one step to BBB-, the lowest investment grade and one level above “junk” status. While the Russians have predictably bemoaned the “political” nature of S&P’s move, the reality is that this is the country’s first debt downgrade since December 2008 when the global financial crisis was in full swing Russia was on the verge of a really nasty economic downturn. S&P based its decision on slowing economic growth, geopolitical tensions, and capital flight that reached $70 billion(!) in just the first quarter. It’s impossible to know exactly what will come of S&P’s downgrade (the ratings agencies themselves don’t have any real power or authority) but it reflects a rapid souring of the mood in Russia and an overall worsening of economic conditions.

Another indiction of just how seriously the Russian economy is deteriorating was provided by the Russian Central Bank. At a previously scheduled meeting, it raised its key interest rate from 7 percent to 7.5 percent citing rouble weakness and high inflation risks. This follows on the heels of a two-point rate hike in March. The Russian Central Bank is actually a very well-run outfit, and it’s deeply disconcerting that it has been spooked enough to hike interest rates so dramatically. Despite the calm demeanor projected by Russian policy makers, their actions suggest something bordering on panic.

It’s perfectly fair to say that S&P made an error in downgrading Russia’s debt. They made a famously bad call about the US back in 2011 and, historically speaking, moves by the ratings agencies have a very weak correlation to actual changes in soverign debt performance. But you can hardly accuse the Russian Central Bank of being tainted by anti-Russian bias, and all of its recent policy moves show that it is in fundemental agreement with S&P that the risks facing the economy are real and growing.

http://www.forbes.com/sites/markadomanis/2014/04/25/with-downgraded-debt-a-plunging-currency-and-a-weak-stock-market-russia-is-in-real-trouble/