Russians found about sanctions and SWIFT ban. Bank run ensues.

[Swede]

https://www.reddit.com/r/PublicFreakout/comments/t2j9s1/russians_have_found_out_about_the_sanctions_and/?utm_source=share&utm_medium=web2x&context=3


Russians have found out about the sanctions and the SWIFT ban. A Bank Run seems to have begun.

[mopinko]

1. this is gonna hurt.

pootie is gonna have his hands full on the home front.

[Shellback Squid]

2. 30% wearing masks too

[Turbineguy]

3. Standing in line.

Now that brings back memories of the good old Soviet days.

A guy walks into a butcher shop, "Do you have any fish today?"
"We don't have meat here, they don't have fish across the street!"

Actually, it's not funny. Ordinary Russians will pay a big price for this adventure.

[OneBlueDotS-Carolina]

4. Nyet & Nyet...

All we have is Canadian currency, fine, I'll take it.

Hey, it says redeemable at Canadian Tire Stores...can I trade it for Kohls Cash?


Canadian Tire money, officially Canadian Tire 'money'[1][2] or CTM, is a loyalty program operated by the Canadian retail chain Canadian Tire. It consists of coupons, issued by the company, which resemble real banknotes. It can be used as scrip in Canadian Tire stores, but is not considered a private currency. The notes are printed on paper similar to what Canadian currency was printed on when they were still paper, and were jointly produced by two of the country's long-established security printers, British American Banknote Company (BABN) and Canadian Bank Note Company (CBN).[3] Some privately owned businesses in Canada accept CTM as payment (see history below), since the owners of many such businesses shop at Canadian Tire.[citation needed] In Canadian Tire stores, CTM is accepted for Canadian money at par, ie; 1 Canadian Tire Dollar = 1 Canadian Dollar.

In April 2018, Canadian Tire announced that they would be shifting to Triangle Rewards, a card based rewards program.[4] Paper Canadian Tire Money continues to be issued and accepted alongside the new program.

https://en.wikipedia.org/wiki/Canadian_Tire_money

[dalton99a]

5. Like the good old times

[yardwork]

6. Time for Putin to go through some things.

[TheBlackAdder]

7. Perhaps at some point it will hit the common folk. Most of SWIFT is for cross-border bank transfers.

.

It affects international trade the most, and there are a dozen alternatives to it.

.

[Happy Hoosier]

9. Since Russia depends heavily on foreign trade...

… the effect will be felt rather suddenly. The Ruble will tumble. Shelves will be bare quite soon.

[Johonny]

10. It has already hit the common folks

The stock market has collapsed. The banks are being run on. As the economy tanks, the common man that has nothing is the first effected always. I'm already seeing posts on Twitter from Russians saying they have no money, and their job is gone.

[TheBlackAdder]

12. The domestic money still exists, and those stock market reports were before SWIFT was pulled.

.

The run on the banks is primarily a separate issue and happens when countries go to war.

How many conservatives were doing a run on gold during the Iraq wars because they didn't trust the dollar?


When banks have SWIFT connectivity failures, they have other processes to transfer funds. Things don't just come to a stop. I've been part of the supporting team for SWIFT connections for my firm for a couple of decades now.

.

[hunter]

8. Russia can always print more rubles to keep the ATMs running.

But Russian consumers are not going to be seeing many imported goods on the store shelves anytime soon.

It's also going to put a huge suck on Russia's commodity exports as "neutral" or "friendly" nations like China demand these in trade.

When Russian bread prices skyrocket the average Russian is going to wonder why their nation is exporting wheat to China.

Hong Kong (CNN Business) China has relaxed restrictions on imports of Russian wheat, a move that could address food security concerns in the world's second largest economy and ease the impact of Western sanctions on Russia.

The decision to allow imports of wheat from all regions of Russia was made during Russian President Vladimir Putin's visit to Beijing earlier this month, but the details were only announced by China's customs administration this week.

Russia is the world's top producer of wheat. Previously, China had restricted wheat imports from Russia due to concerns about the presence of dwarf bunt fungus — a disease that can cause severe loss of yield for wheat and other crops — in some parts of the country.

--more--

https://www.cnn.com/2022/02/25/business/wheat-russia-china-intl-hnk/index.html

China has had its eyes on Siberian natural resources for a long time. When this is over I suspect China will own them. That will be Putin's legacy.

[SoonerPride]

11. Printing rubles Willy Nilly will trigger hyperinflation

They’ll need a wheelbarrow of rubles to buy a loaf of bread

If there is one to be found

[hunter]

14. Doesn't matter if rubles are in a bank account or pulled out of an ATM and stuffed in a mattress.

That's not what causes hyperinflation.

Things go wrong when a government starts printing money without raising taxes or selling secure debt on the open market.

I don't think Russia is crazy enough to loose control of their currency like that, but I also didn't think they were crazy enough to invade Ukraine.

Putin's probably not going to say "Ooops, sorry, I blew it!" pull out of Ukraine and step down in favor of some boring technocrat who will get the wheels turning again. Rather I suspect the Russian people are in for some very severe austerity measures.

[zuul]

13. Nothing reassures the populace like

telling them to remain calm.

‘Nothing to see here. Move along.’

[Danascot]

15. Putin doesn't care about the average citizen

He's so insulated it will have no effect on him. He'll just spin it that it's all the West's doing.