Russia's Economy Is Collapsing. Here's What You Need to Know.

[WHO IS SERAFIN]

Could not happen to nicer guy like Putin. And it could not happen to a better group of people who give him a 75% approval rating for attacking another country and stealing there land. Enjoy the karma you created.

Early Tuesday morning, Russia made what may be a last-ditch effort to save its economy: the country's central bank jacked up interest rates to try to prevent the ruble from plunging in value for the sixth time this year. But the currency hit record lows anyway, sparking worries of economic collapse—and political instability.

The last time Russia raised its interest rates this high was during the 1998 financial crisis, sometimes called the "Russian Flu." Declining productivity and a disadvantageous foreign exchange rate helped trigger the crisis. When demand for crude oil went down and Russian President Boris Yeltsin dismissed his prime minister, the fight to save the ruble was on. The central bank raised rates dramatically that May; the government defaulted on its loans a few months later. The Russian economy only bounced back once demand for oil rose.

Here's Mother Jones' Kevin Drum on an earlier crisis:

Why did the Soviet Union lose control of its satellite states behind the Iron Curtain in 1989? Lots of reasons, but the proximate cause was a disastrous war in Afghanistan; plummeting oil prices; and a resulting economic crisis.

READ THE REST HERE
http://www.motherjones.com/politics/2014/12/russian-ruble-collapse-putin

 

[seasidemike]

yes, but here is what else you need to know:

http://www.bloomberg.com/news/2014-12-22/china-offers-russia-help-with-suggestion-of-wider-currency-swap.html

Two Chinese ministers offered support for Russia as President Vladimir Putin seeks to shore up the ruble without depleting foreign-exchange reserves.

China will provide help if needed and is confident Russia can overcome its economic difficulties, Foreign Minister Wang Yi was cited as saying in Bangkok in a Dec. 20 report by Hong Kong-based Phoenix TV. Commerce Minister Gao Hucheng said expanding a currency swap between the two nations and making increased use of yuan for bilateral trade would have the greatest impact in aiding Russia, according to the broadcaster.

 

[WHO IS SERAFIN]

Damage is done. The people in Russia are cleaning out there bank accounts. Making a rush for the stores to clean out the shelves. Economy is still declining and China's limited help does not fix the issue of there biggest problem and money maker. And that is to make a profit from there oil I think I read it has to sell for $105 a barrel while oil is selling around the 40s a barrel. They are so screwed!

 

[Webster]

Damage is done. The people in Russia are cleaning out there bank accounts. Making a rush for the stores to clean out the shelves. Economy is still declining and China's limited help does not fix the issue of there biggest problem and money maker. And that is to make a profit from there oil I think I read it has to sell for $105 a barrel while oil is selling around the 40s a barrel. They are so screwed!

I never thought I'd say this, Liberty, but "thank God for fracking."....

 

[DrLeftover]

Russia isn't the only one sweating it out:

UAE economy minister reassures investors after bourse plunge

Ups and downs in stock markets are normal and markets tend eventually to resume their upward trends, United Arab Emirates economy minister Sultan bin Saeed Al Mansouri said on Tuesday.

Mansouri, who is also chairman of the Securities and Commodities Authority, the UAE's market regulator, was issuing a statement to reassure investors after the country's stock markets plunged on Tuesday, partly in response to sliding oil prices.

Dubai's main equities index closed 7.3 percent lower, bringing its losses this month to 28 percent, while the Abu Dhabi market tumbled 6.9 percent.

Mansouri said the UAE's economy and corporate profit growth were strong, and that oil's share of the economy was less than 30 percent.

He urged investors to base their decisions on careful analysis and act rationally. He did not announce any concrete new steps to support the markets.

http://www.arabianbusiness.com/uae-economy-minister-reassures-investors-after-bourse-plunge-575439.html

 

[Webster]

*looks over towards Doc* Like I said, thank God for fracking.

 

[DrLeftover]

So, "drill, baby, drill!", worked.

 

[WHO IS SERAFIN]

So, "drill, baby, drill!", worked.

Wait! It couldn't have worked because the leftists said it never would.

 

[Webster]

So, "drill, baby, drill!", worked.

Wait! It couldn't have worked because the leftists said it never would.

Hey, even when I was a dirty ole' liberal, Liberty, I supported fracking for the simple fact that every bit of oil we found here in North America was another bit of oil we didn't have to import from such enlightened places as Venezuela and the Arab Gulf states....glad to see I was right about that issue.