Disney escalates, pausing all Russian business, not just new movie releases.
In a related story: Putin's propaganda is failing.
So apparently, recently, Russia floated the idea that the CIA funded chemical/biological weapons labs in Ukraine. This is, of course, complete bullshit. But the theory is Russia is saying this, because they're prepping to use such weapons on the Ukrainian people themselves and want to blame US.
A plan brought down, and this is the funniest thing I've seen all day, was...food poisoning.
No, really. Putin cried wolf and nobody bought it, even as they came here and tried to sell it themselves. Because, you know, they'd starve to death if they didn't.
Putin is even now claiming "crisis actors". No, really. Putin's that desperate. Problem is, well the problem is he's murdering a lot of people, but the disinformation problem is, Russia got things like YouTube and Twitter. Once they got access to information that wasn't Putin, the damage was done. Removing access doesn't change that.
-- CIA Director, under oathThe realities of killed and wounded coming home in increasing numbers, the realities of the economic consequences for ordinary Russians...the realities of the horrific scenes of hospitals and schools being bombed next door in Ukraine — I don't think he can bottle up the truth indefinitely
Just like the ruble, Putin's lies have no value, and Russians know this. That's why they're looking elsewhere. See also: bank runs.
The Russian Central Bank is running out of options
If Russia's banks and currency were fine, they wouldn't be forcing foreigners to sell all their dollars for rubles. But, they are. They're also doing this:The CBR has dealt with many challenges since the global financial crisis—but it has never lent out more than what it had backed up in foreign exchange and other safe assets, even in emergency lending. Now, with a conservative estimate of 53 percent of its assets frozen and the central bank unable to buy swaps from Western banks, the CBR could suddenly look much less credible as a lender of last resort.
In just a week, its claims on banks have quintupled to 5.2 trillion rubles, or 20 percent of its available reserves—and this assumes the $130 billion of gold reserves it holds are liquid, when they are in fact hard to move and not really in demand. Expect emergency lending to grow over the coming days and weeks, as markets re-open and the new sanctions begin to bite.
While nothing prevents the CBR from lending more rubles than it can access in foreign exchange, its goal in a high-inflation environment is to use the money it has wisely. It must also deal with a currency mismatch problem, since Western banks won’t provide swaps. The Peoples’ Bank of China does have a swap line with CBR, but only for the renminbi. Chinese state banks have also shown reluctance to finance the purchase of Russian commodities in dollars, so they are unlikely to offer dollar swaps.
If you have to bribe people into using your money, your money sucks. In the world economy, money isn't worth what the government says it is, but what the world knows it is. And everyone who didn't divest and flee already has written off Russia as a loss.The government has also introduced a set of policies to support the CBR’s effort to substitute frozen reserves. The Finance Ministry has introduced a “capital amnesty” allowing residents with savings abroad to bring them back to Russia with few questions asked about taxes or criminal activity. On March 1, Prime Minister Mikhail Mishustin announced a temporary ban on foreign investors selling their Russian assets. And in a subsequent announcement, the CBR banned the transfer of coupon payments to foreign owners of ruble bonds.