RobDownSouth
No Kings
- Joined
- Apr 13, 2002
- Posts
- 77,826
Russia is sooo Screwed
Well, it looks like Russia is in for a long, cold, and economically devastating winter.
...at this point, it’s not clear that Russia has any good options left at its disposal to stop the ruble from tumbling. It could start unloading its own foreign currency reserves to stanch the bleeding, but as Jennifer Rankin of the Guardian argues, those could drain away fast. And such a move wouldn't fix any of the underlying problems that have pushed Russia to the breaking point. The ruble is collapsing, in part, because oil prices are in the pits. Cheap crude is bad for Russia’s economy. It’s terrible for its government, which gets half its tax revenue from oil and gas. And it's terrible for the ruble, specifically, because as the value of a country’s exports plunge, so too does the value of its money. At the same time, Western sanctions have largely cut off Russia’s banks and oil companies from the credit markets by preventing financial institutions from lending to them for more than one month at a time. In other words, Russia’s economy is basically radioactive.
LINK
Can you imagine the sturm und drang here if the interest rates in America were jacked up seven points OVERNIGHT?
Hell, even Vetty might get up off his fat ass and take his torch and pitchfork to DC to protest.
Seems like only yesterday Brother Eyer and Brother Vettebigot were extolling the strong leadership of Vladmir Putin
Well, it looks like Russia is in for a long, cold, and economically devastating winter.
...at this point, it’s not clear that Russia has any good options left at its disposal to stop the ruble from tumbling. It could start unloading its own foreign currency reserves to stanch the bleeding, but as Jennifer Rankin of the Guardian argues, those could drain away fast. And such a move wouldn't fix any of the underlying problems that have pushed Russia to the breaking point. The ruble is collapsing, in part, because oil prices are in the pits. Cheap crude is bad for Russia’s economy. It’s terrible for its government, which gets half its tax revenue from oil and gas. And it's terrible for the ruble, specifically, because as the value of a country’s exports plunge, so too does the value of its money. At the same time, Western sanctions have largely cut off Russia’s banks and oil companies from the credit markets by preventing financial institutions from lending to them for more than one month at a time. In other words, Russia’s economy is basically radioactive.
LINK
Can you imagine the sturm und drang here if the interest rates in America were jacked up seven points OVERNIGHT?
Hell, even Vetty might get up off his fat ass and take his torch and pitchfork to DC to protest.
Seems like only yesterday Brother Eyer and Brother Vettebigot were extolling the strong leadership of Vladmir Putin
