Some time today the trigger will be pulled re: Russia's access to its foreign reserves. These are estimated to be 130 bn in gold, 70 bn in PRC bonds and 400 bn in G7 sovereign and blue chip bonds
- who knows where the gold is held (in Ft Knox
)
- 70 in China can be liquidated by some means but perhaps not into$
- the 400 they will not get their hands on (though will continue to own them)
The bang will be heard on Monday as the fire power to intervene in support of the rouble will have evaporated... and it will drop like a stone! It has already - but you ain't seen nothing yet
- tantamount to doubling the price of bread in Paris, or the price of onions in India
- the result will be the same too; I am sure the riot police is busy getting their gear at the ready
Ever-lasting truths: Multi-year budgets/ planning by necessity have to address the painful questions; more often than not the Either-Or prevails over Both-And.
If everyone is thinking the same, then someone is not thinking (attributed to Patton)