Russia just raised interest rates to 17% from 10.5% This rate hike comes just 4 days after last Thursday when Russia hiked rates to 10.5% from 8% in an effort to combat inflation, which rose 9.1% year over year in November.
The announcement was made at 1 a.m. local time in Moscow.
One oclock in the morning!
The chart in the link shows how many more rubles it takes to exchange for 1 US dollar.
Russia is starting to resemble Zimbabwe. Pretty soon the Russian people will be using rubles for toilet paper. Nice going Vladimere!
I don't understand. Putin promised the Western powers economic sanctions would not effect Russia. Putin is never wrong is he?
No, something else has happened. Simply put Russia has insufficient economic cushion and what has happened there (and it isn't over yet) may soon spread world wide as the 2nd great depression my parents believed in (they lived through the first one) arrives. This time it may be everywhere, which of course means going to war may not be the solution this time.
Russia's Oil-Revenue went South,after the Oilprice dropped! Its Economy is pretty lopsided! Maybe someone ought to tell Mister Putin that not all the Eggs are supposed to be putin the same Basket!
Russia just raised interest rates to 17% from 10.5% This rate hike comes just 4 days after last Thursday when Russia hiked rates to 10.5% from 8% in an effort to combat inflation, which rose 9.1% year over year in November.
The announcement was made at 1 a.m. local time in Moscow.
One oclock in the morning!
The chart in the link shows how many more rubles it takes to exchange for 1 US dollar.
Russia is starting to resemble Zimbabwe. Pretty soon the Russian people will be using rubles for toilet paper. Nice going Vladimere!
Oil prices. Not sanctions. The Saudi's can't keep over producing for very long. They're trying to kill off shale. And doing a good job at it.
Russia just raised interest rates to 17% from 10.5% This rate hike comes just 4 days after last Thursday when Russia hiked rates to 10.5% from 8% in an effort to combat inflation, which rose 9.1% year over year in November.
The announcement was made at 1 a.m. local time in Moscow.
One oclock in the morning!
The chart in the link shows how many more rubles it takes to exchange for 1 US dollar.
Russia is starting to resemble Zimbabwe. Pretty soon the Russian people will be using rubles for toilet paper. Nice going Vladimere!
In th 90's we had a hyperinflation of 52 % "the tequila effect" -I think it was way higher than that but gov gives a make up to the numbers- .
The Russians are tough people (more than we are because of climate conditions) and if we made it trough, they will.
lifeisadreamMexi Go, Mexico State Mexico16,713 posts
lifeisadream: In th 90's we had a hyperinflation of 52 % "the tequila effect" -I think it was way higher than that but gov gives a make up to the numbers- .
The Russians are tough people (more than we are because of climate conditions) and if we made it trough, they will.
Not that I am an expert in macroeconomics but recession is like diarrhea and hyperinflation is like a heart attack.
RayfromUSA: Of course sanctions hurt any country. Especially in times of wordwide recession.
Can you imagine what would happen to the dollar if China stopped supporting it? Can you imagine what would happen to China if the US defaulted on all those treasury notes the Chinese government has bought? The US economy is in far worse shape than Russia's. The last example of an American relocating to Russia was Edward Snowden Russia's total external debt is less than one trillion dollars.
The US foreign debt is officially over 17 trillion and that doesn't cover domestic obligations such as social security.
Despite it's current squeeze Russia is still a creditor nation. In other words, more money is owed to Russia than Russia owes to others. Go back to school and learn some basic accounting. Having a lopsided AR/AP is not a healthy scenario. The lender always loses if either side falls on hard times. The lender in this case, Russia, has no recourse if the borrower nation(s) go belly up. You can't get blood out of a turnip. The US however is, by far, the worlds greatest debtor nation. Typical Texas Republican, your financial reasoning is right out of the 1930's. I bet you even favor going back on the gold standard.
RayfromUSA: Can you imagine what would happen to the dollar if China stopped supporting it?
China would collapse
RayfromUSA: Russia's total external debt is less than one trillion dollars.
Government external debt not too important. Look at Japan.
RayfromUSA: The US foreign debt is officially over 17 trillion and that doesn't cover domestic obligations such as social security.
As above, not really a major issue. Measures such as debt/GDP ratios are only a nonsense really. They can have a psychological effect. But from a pure economics point of view, it is terrible to think of ratios like this. Debt is a stock variable. GDP is a flow variable. No real sense in that type of ratio.
In response to: Can you imagine what would happen to China if the US defaulted on all those treasury notes the Chinese government has bought?
Yes. The dollar would sink and lose all value in the short to medium term. China and the US would slump. The country with the Secondary Economic infrastructure would recover the fastest. Since the West is gone past the point of no return on that front, a major economic crash would be the end. The manufacturing and primary industries is what characterises developing or in this hypothesis, redeveloping economies. The current developing economies have that in abundance.
ooby_dooby: Go back to school and learn some basic accounting. Having a lopsided AR/AP is not a healthy scenario. The lender always loses if either side falls on hard times. The lender in this case, Russia, has no recourse if the borrower nation(s) go belly up. You can't get blood out of a turnip.
He might need to go back to school, but looking at my country and others, no... the lenders are doing ok. The borrowers lose parts of their sovereignty and political independence when they default. That's a given.
Russia just raised interest rates to 17% from 10.5% This rate hike comes just 4 days after last Thursday when Russia hiked rates to 10.5% from 8% in an effort to combat inflation, which rose 9.1% year over year in November.
The announcement was made at 1 a.m. local time in Moscow.
One oclock in the morning!
The chart in the link shows how many more rubles it takes to exchange for 1 US dollar.
Russia is starting to resemble Zimbabwe. Pretty soon the Russian people will be using rubles for toilet paper. Nice going Vladimere!
they won't be in trouble long , Russia has every thing a country needs in bulk . Oil is cheap at the moment but its needed by the west and China . Their jets, tanks and AK's have just got cheaper and are a match for any thing the rest of the world sells . You should worry more about western economics than Russian .
lifeisadreamMexi Go, Mexico State Mexico16,713 posts
gcy1980: China would collapse Government external debt not too important. Look at Japan. As above, not really a major issue. Measures such as debt/GDP ratios are only a nonsense really. They can have a psychological effect. But from a pure economics point of view, it is terrible to think of ratios like this. Debt is a stock variable. GDP is a flow variable. No real sense in that type of ratio.
Would China collapse? Yes, indeed so "would" any other country.
What is nice here is Oooby's interest in Russia and his wishes for Russia to do well
One country collapses, there goes every other country sooner or later.
O_D_, I liked your wrings on CS on feeding your chickens, but when you put things on stuff that matters and that you hardly know except from stupid partial propaganda sources, it will bring me just to smile to your ignorance.
Russia is the biggest country in the world of nearly 10 times bigger than USA. It has real economy and an abundance of ALL kinds of resources. It's people are very proud and very capable. So I'll suggest to do more research before writing some smile bringing nonsense. :-)
epirb: they won't be in trouble long , Russia has every thing a country needs in bulk . Oil is cheap at the moment but its needed by the west and China . Their jets, tanks and AK's have just got cheaper and are a match for any thing the rest of the world sells . You should worry more about western economics than Russian .
That's silly. Russia's army is small compared to it's size. Her Navy is obsolete and rusting. Her Air Force is mostly aging Cold War aircraft with only a few 1990s aircraft.
Ken_19: That's silly. Russia's army is small compared to it's size. Her Navy is obsolete and rusting. Her Air Force is mostly aging Cold War aircraft with only a few 1990s aircraft.
Thankfully from NATO's position, they know that isn't actually true. Not even factually close.
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Russia just raised interest rates to 17% from 10.5% This rate hike comes just 4 days after last Thursday when Russia hiked rates to 10.5% from 8% in an effort to combat inflation, which rose 9.1% year over year in November.
The announcement was made at 1 a.m. local time in Moscow.
One oclock in the morning!
The chart in the link shows how many more rubles it takes to exchange for 1 US dollar.
Russia is starting to resemble Zimbabwe. Pretty soon the Russian people will be using rubles for toilet paper.
Nice going Vladimere!