Posted on 08/15/2023 7:09:40 AM PDT by SpeedyInTexas
“A rare Russian S-300V4 air defense battery was targeted by Ukrainian forces in the South- as a result a 9A83M2 TELAR and 9A84-2 TEL were destroyed by GMLRS strikes, along with 9S32M1 and 9S19M2 radars suffering damage.”
https://twitter.com/UAWeapons/status/1691491187985723402
Brings back the early 80s. Briefly had a 10.5 mortgage.
I remember having a 10% mortgage and thinking it was a good rate at the time!
The location of the S-300 is shown in the pic below.
My guess is the S-300 was forward deployed in an effort to shoot down StormShadow missiles.
StormShadows fly a High-Low profile to the target.
S-300 missiles might be able to intercept and destroy StormShadows before they descend for the low altitude run in.
“Russia Discusses Return to Capital Controls to Stem Ruble Slump”
Smells like crisis to me.
Raising interest rates 3.5% (35 basis points) in an emergency meeting, is a desperation move. That is a huge increase. It shows that easy options are gone, and that painful major actions are urgently needed.
That was just to keep the ruble essentially stable (around 98.5 to the dollar now), and maybe just for last night. Let’s see how they fare, after the midnight hour in London tonight.
Regardless of how their currency fares (its prospects are grim over the coming months), their essential problem is that they are gushing red ink, spending far more than they make. When (as) the reserves run out, desperate budgetary changes are going to be needed (slashing spending, confiscatory tax increases/nationalization), and/or they will have to print hyperinflation into their economy.
The façade of normality is falling away, and the ugly face of Russian economic ruin will become undeniably clear as this year progresses.
Eating the seed corn:
Russia To Raise Oil Export Duty To Highest This Year
(https://oilprice.com/Latest-Energy-News/World-News/Russia-To-Raise-Oil-Export-Duty-To-Highest-This-Year.html )
“Russia’s Finance Ministry has set its oil export levy at $21.40 per ton starting in September—the highest level this year—as the state tries to lift oil-derived income as oil prices rise, Bloomberg stated on Tuesday. That works out to about $2.92 per barrel...
...The money from the oil export duties are a small part of Russia’s overall oil-derived income, and there are more oil tax law changes coming...
...the tax reform will leave Russia’s oil companies with fewer dollars to invest in exploration and production”
While I generally wish bad ‘luck’ on China, I’m starting to get concerned so much bad financial news out of China might spread to Wall Street.
“Chinese Shadow Bank Misses Dozens of Payments as Fallout Spreads”
“Products with missed payments grow to dozens, official says”
“Company has no repayment schedule, seeks investor patience”
“Zhongrong International Trust Co. missed payments on dozens of products and has no immediate plan to make clients whole, indicating troubles at the embattled Chinese shadow bank are deeper than previously known.
Wang Qiang, board secretary of the firm partly owned by financial giant Zhongzhi Enterprise Group Co., told investors in a meeting earlier this week that the firm missed payments on a batch of products on Aug. 8, adding to delays on at least 10 others since late July, according people familiar with the matter. At least 30 products are now overdue and Zhongrong also halted redemptions on some short-term instruments, one of the people said.
The company doesn’t have an immediate plan to cover the payments since its short-term liquidity has suddenly dried up, Wang said. He added that the number of products with missed payments has risen and the company is facing a “tsunami” of questions from investors and their own wealth managers, according to the people familiar, who asked not to be identified because the meeting was private. Wang asked for patience as the firm seeks to recoup the value of its investments.”
But don’t worry, BRICS will save RuZZia.
BRICS, RICKS, DICKS.
“The liquidity challenges underscore how troubles in the property sector, and China’s weakening economy, are now spreading deeper into to the financial sector. Many trust products are backed by real estate projects run by troubled developers such as China Evergrande Group.
Zhongrong is among the biggest firms in the country’s $2.9 trillion trust industry, which pools savings from wealthy households and corporate clients to make loans and invest in real estate, stocks, bonds and commodities. The firm has 270 high-yield products totaling 39.5 billion yuan ($5.4 billion) due this year, according to data provider Use Trust.”
Make dumb investment decisions, pay the price.
“BlackRock held $351.9 million of Country Garden dollar bonds, according to a filing dated Aug. 11. Allianz’s position was $301 million based on a June 30 filing. That was also when filings from others including Fidelity International Ltd. and HSBC Holdings Plc showed they were holders.”
“Other banks with exposure to Country Garden’s dollar notes included UBS Group AG and JPMorgan Chase & Co., based on their filings earlier this month. Deutsche Bank AG and Banque Lombard Odier & Cie SA also had positions, according to their filings in late June.”
American banks will likely be holding dollar bonds. They will get screwed more so than holders of yuan bonds.
“’Country Garden, formerly China’s biggest developer by contracted sales before a deal slump this year, is at risk of its maiden bond default. The countdown has begun for a 30-day grace period after it missed coupon payments effectively due Aug. 7 on two dollar notes.
Nonpayment would send tremors through China’s debt markets as offshore creditors often rank lower than domestic peers in restructuring. “
Peak China.
Home Sales down 43% in a month.
While Japan had its ‘lost decade’, China’s fall could be sharp and quick.
“China home prices dropped for a second month in July, a further sign of the deepening property downturn that’s weighing on the world’s second-largest economy.
New-home prices in 70 cities, excluding state-subsidized housing, fell 0.23% last month from June, when they slipped 0.06%, National Bureau of Statistics figures showed Wednesday. Prices slid 0.47% in the secondary market, according to the data.”
“The value of residential sales nationwide tumbled 43% in July from June to 654.5 billion yuan ($90 billion), the weakest monthly sales in almost six years, according to Bloomberg calculations based on separate official data Tuesday.”
“BlackRock held $351.9 million of Country Garden dollar bonds”
Black Rock can write off $352 million, like it was an entertainment expense.
The great bulk of China’s dubious debt is held domestically - significantly more than other major economies.
Russia’s Admiral Makarov is back at sea, ten months after being hit by drones.
“Home Sales down 43% in a month”
Peak China:
Massive Youth unemployment.
Demographic collapse.
Imports and exports crashing.
Net investment negative and Capital fleeing.
Hang Seng stock market index down about 10% this month.
Technology embargo and trade war tariffs.
Historic debt levels built on a culture of widespread fraud.
Allied with Russia, alienated from most countries.
Hugely dependent on food, energy and raw material imports.
Communist Party distatorship/rigid Police State, dominated by a single isolated 70 year old.
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