Russia dumping dollars to use to protect currency and falling oil prices | WHAT REALLY HAPPENED

Russia dumping dollars to use to protect currency and falling oil prices

Despite the reassuring narrative from The West that Russia faces "costs" and is increasingly "isolated" due to sanctions for its actions in Ukraine, the most recent data suggests reality is quite different. First, capital outflows slowed dramatically in Q3 (from $23.7 billion in Q2 to $13 billion in Q3) with September seeing capital inflows for the first time since Sept 2013. Second, Russia's current account surplus was significantly stronger than expected ($11.4 billion vs $8.8 billion expected) driven by increased trade. Third, and perhaps most crucially, Russia paid down a massive $52.8 billion in foreign debt as Putin "de-dollarizes" at near record pace, reducing external debt to the lowest since 2012.

Webmaster's Commentary: 

(Sigh) it has become keenly apparent that the most sought-after capability for anyone working for this administration is their pathological inability to think any scenario through to its logical conclusion.

These anti-Russian sanctions appear to have blown up in the face of this administration like a really bad trick cigar.

It has forced China and Russia closer together economically, and caused the US dollar to be bypassed nearly completely in their trading.

And, in the midst of all this, let us not forget that instead of having a budget surplus, the US government has an extraordinary budget deficit, which does not appear to be getting addressed at any time in the near future.

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