International Capital Seeks Safe Haven
Russia's capital flight is intensifying under a threatened international economic crisis and collapse of the global oil & gas price bubble
Russia, which relies on oil and gas exports for half of its budget revenue and Europe as a market for more than 50 percent of its exports, may suffer a worse recession than in 2009 if energy prices plunge, according to Dmitriev.
..."There is large-scale capital flight from Russia, despite the economic recovery," Dmitriev said. "And this capital is flying into the epicenter of the global financial crisis, which is in Europe. That is actually the same as creating a food supply in the center of an atomic explosion." _SFGate
China's rich elites are unnerved by the twin political and economic situations popping up in the middle kingdom, and are looking for a safe place to stash their cash and valuables.
The two China crises are entwined, although the China bubble had been looking for an excuse to deflate for a few years.
The Eurozone is beginning to feel the stress of the building chaos and fiscal crises in Greece, Italy, Spain, and Portugal. An underswell of capital flight is starting to build, even in Europe.
The world is watching the US for any sign that the former global economic bulwark is willing to turn away from its mindless and wasteful spending spree of the last few years that has occurred for no better reason than support for political cronies and a suicidal green energy starvation.
If November elections in the US provide reassurance of a long needed change in US fiscal and monetary policies, global markets may be reassured before the bottom completely erodes.