Bank of Russia raises rate to 17%

[ZenOps]

http://www.theguardian.com/world/201...apse-oil-price

Was 10.5% yesterday.

Uh oh, Shit is two millimeters from hitting the fan.

[BigMass]

Originally posted by ZenOps
http://www.theguardian.com/world/201...apse-oil-price

Was 10.5% yesterday.

Uh oh, Shit is two millimeters from hitting the fan.

yet still %3 shy of where it was in the US back in 1981

[bourge73]

Time for a war....

[spikerS]

an increase of 6.5% is going to cripple them, and fast. Imagine if we had that happen here.

[ZenOps]

Ruble devaluation in time of war is absolutely brutal.

http://en.wikipedia.org/wiki/Hyperin..._Soviet_Russia

Closer to the current date, the 1991 to 97 devaluation of the Ruble was tame by comparison, where you had 120 rubles in 1991 devalued to approximately 1 ruble in 1997.

Currency wars.

AND: As ridiculous as it may seem now, the Russians did survive both WWI and WWII - so one could argue that the banking policy was effective.

[benyl]

Originally posted by spikerS
an increase of 6.5% is going to cripple them, and fast. Imagine if we had that happen here.

Not raising it 6.5 would be worse. They should have raised it 10%. I bet Putin is regretting the whole Crimea thing.

The west is waging war on Russia. An economic war.

[eblend]

Originally posted by benyl


Not raising it 6.5 would be worse. They should have raised it 10%. I bet Putin is regretting the whole Crimea thing.

The west is waging war on Russia. An economic war.

I highly doubt he is regretting Crimea, get old land back, a naval port, it's a win for him regardless how bad the economy gets. Interference in the rest of Ukraine wasn't such a hot idea on the other hand.

[ZenOps]

And one day later..

http://rt.com/business/214779-russia-ruble-drop-record/

Ruble loses 20% of its value in one day.

[ercchry]

cant even trade the ruble in my fx account anymore

[toor]

Putin dun care, Russia stronk. Here, 6.5% would destroy people's lives. In Soviet Russia, it don't matter, life carries on with three potatoes per month instead of five.

[ercchry]

Originally posted by ercchry
cant even trade the ruble in my fx account anymore

weird... its back now.. eh, why not buy some usd/rub im sure the bottom is not even close yet

[InRich]

So let me get this straight. They raised interest rates cause they wanna get rid of all foreign debt, essentially having the country be debt free?

[Toma]

Originally posted by InRich
So let me get this straight. They raised interest rates cause they wanna get rid of all foreign debt, essentially having the country be debt free?

Is the debt in Ruble? then devaluation is a hell of a strategy. If not.... hmmm

[BigMass]

I'd stay away from the Ruble but if I had the opportunity to buy assets in Russia, now would be the time.

[Toma]

And Russia's debt is a joke. They could pay that off tomorrow.

It's funny how we live in a world where countries like the US with it's debilitating astronomical debt are rewarded, lol, and Russia with essentially no debt is in "economic crisis"

lmao.

Propaganda is the only thing that can explain it.

[Toma]

Originally posted by BigMass
I'd stay away from the Ruble but if I had the opportunity to buy assets in Russia, now would be the time.

No shit!! Time to invest, and that's probably the point.

Gonna scope out some condos when I am in Europe in a few months.

[ZenOps]

ABC gets in on it.

http://abcnews.go.com/International/...ry?id=27648323

"Igor and Katya were turned away after the Porsche Cayenne SUV they wanted to buy for their son was out of stock. They settled for a brand new Audi S5 instead. The price, they said, was the equivalent of $27,500. In the United States, MSRP for that car starts at $52,500, according to Edmunds.com."

Interesting that even how the ruble has halved in value against the US dollar in one year, many large goods are still much cheaper than US retail.

[CapnCrunch]

Originally posted by toor
Putin dun care, Russia stronk. Here, 6.5% would destroy people's lives. In Soviet Russia, it don't matter, life carries on with three potatoes per month instead of five.

Q : What are one potato say other potato? A : Premise ridiculous. Who have two potato?

[toor]

^ haha nice

btw, their debt is mostly in USD...

[ZenOps]

“Under the most unfavorable external economic scenario, this situation may go on for about two years. But it may also start improving in the first quarter, in the middle, at the end of the next year.” - Putin.

Means: 2-year ration of 72 potatoes for Russian citizens so we can gear up the war machine.