Capital controls in Moscow has all but locked out any sellers of Rubles and now with the Gas for Ruble scheme about to take effect, dare I say one of the greatest FX short squeezes is underway? This is the sort of stuff that causes wars — very influential people caught SHORT rubles into what might turn out to be an unbelievable run on shorts.
The fucking Ruble is +52% off the lows.
Question for the audience: was there ever a more enticing time to own this currency than now? Before the war, Russia was a standard shithole without appeal. Now Russia is still a shithole; however, the appeal is immense with all customers of the enemy varietal FORCED to jimmy Rubles for gas, otherwise freeze to death. This is shotgun diplomacy and the alternative is Russia sitting and waiting for Europe to beg for terms.
Meanwhile, Russian stocks are ripping higher. Why? It’s rigged!
Like in a boiler room, sell tickets are tossed in the trash. The exchange is only accepting orders from those who like stocks.
On the whole, the sanctions have utterly failed to break the Russian system — because of capital controls and recurring demand for exports — the type of exports that keeps people alive.
Look out for the Ruble scheme to expand into others areas and then look for the Ruble to soar to levels thought not possible, as the Petrol-Dollar gains its first real competitor.
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