After gaining 10% on the initial news the market riggers threw everything they had at the Ruble and it is now falling through the floor. The Russian stock market is down 15% as we speak and there is massive turmoil.
The big question now is WHY and WHAT'S NEXT?!
The WHY question is fairly easy...Putin has just thrown a monkey wrench into the very delicate FX system that is now crashing the Global Monetary System. All the derivatives based off the Russian Ruble are in chaos and reeling from the MASSIVE Black Swan move in rates. Many FX exchanges have already shutdown US Dollar/Ruble trading...
The USD/RUB Pair Will Be Discontinued Due to Recent Instability of the Russian Ruble
http://www.zerohedge.com/news/
This is turning into a HUGE problem for anyone with derivative positions in the Russian Ruble. As usual the ramifications of this may not be seen today but check back within 30 days as the derivative losses start to mount.
Russia is holding a news conference today...the question is: What will they say about the future of the Ruble? I think it's a bit too early to announce some sort of gold backing of the Ruble but this definitely lays the groundwork for Putin's next move.
More FX instability = More need for a Gold Standard
Let the chaos continue!!
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