Is this the start of the great crash for Russia? Remember how two years ago Vladimir Putin was threatening to replace the dollar with the Ruble as the world’s default currency?
Since then, the value of Russia's only major asset, oil, has more than halved. To make things worse, trade sanctions are in force for Putin's over-reaching annexation of the Ukraine. Russia has lost 50% of its revenue from the tax on oil and is now unable to recapitalize its old outstanding loans. On January 26th, S&P down-rated the ruble to junk status.
Of
course, Putin’s cronies, the so-called oligarchs who double as the government
in this corrupt and fragile country, are now frantically searching for new
assets to steal. Maybe today they found it. News just out of Moscow suggests
the first domino has fallen, heralding the implosion of the Russian financial
system.
This
morning, the Sudostroitelny Bank (LTD) or Sb Bank as it’s known, froze
all the business and private accounts. Account holders were told they could not
take cash from their accounts. The bank tellers would only reveal the 'bank has
problems' and recommended not to deposit any more money. When questioned by the
anxious customers, they would only reply, “its on the internet” and wouldn't
get into a conversation.
The
Sb Bank branch our source visited this morning was full of Russians who
although anxious, seemed quite resigned to their fate. The bank itself buried
the news as the third item on its website
TRANSLATION: Dear customers! 29-30 January 2015 issue of cash from the
accounts of individuals and legal entities will not be performed. The date of
issuance and renewal of the possibility of obtaining funds on the previous
application will be announced later.
On
January 26th, the Bank of Russia disconnected SB Bank from its
electronic banking messaging system. This move by the Russian banking
“regulator” means that SB Bank is no longer able to receive or make payments in
rubles. Moody’s are downgrading the bank.
Expect
more of the same. Russia could face a run on its banks that will bring its
economy to its knees. And a desperate Putin could do anything. Now's the time
to consider your personal financial security, and review your personal social
chaos preparation plans.
Source: http://www.independentlivingnews.com/finances/russias-first-dominoa-will-bank-failure-lead-to-social-chaosa.stml?utm_source=150129ILNDBLPL&keycode=150129ILNDBLPL&u=bb20027a-ddc7-11e2-88f9-80ee731fd7a1#.VMpNeOktEqc
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