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WOW! A 10% drop for a country the size of Russia is jaw dropping. It's nothing but panic. I am still in shock. They raised interest rates from 10% to 17% in one day. They are gonna run out of foreign exchange, and will be forced to sell all that gold they have been accumulating.
Their only exports....Oil and vodka, both on the rocks.
Nasdrovia comrade Putin.
Don't forget that they don't have fixed-rate mortgages there, so everyone with a mortgage will feel the pain immediately.
Don't forget that they don't have fixed-rate mortgages there, so everyone with a mortgage will feel the pain immediately.
The Russians are really gonna love Putin now.
Hey Snowden, you really know how to pick countries, don't you? Hope your ass freezes, I hear its gonna get rough out there.
Don't forget that they don't have fixed-rate mortgages there, so everyone with a mortgage will feel the pain immediately.
Most people don't have a mortgage in Russia. Russia has 84% home ownership rate and 15% flat tax; practically a Republican paradise The interest rates only have to stay at these levels for a few months to bring the ruble back under 55. With economic pain hitting Europe, I doubt Europe will extend sanctions in march, and ruble will go back to 45.
Well, they have a current account surplus of about 35 billion bucks. They had a current account surplus of about 30 billion bucks last year.
they manufacture gas/oil in rubles- but sell in dollars/euro. Just think of that profit margin. If the ruble stays this low-their domestic industry can start picking up and be competitive. it is not like they are a nation of 300# welfare slobs who scream about the 1%.
they manufacture gas/oil in rubles- but sell in dollars/euro. Just think of that profit margin. If the ruble stays this low-their domestic industry can start picking up and be competitive. it is not like they are a nation of 300# welfare slobs who scream about the 1%.
Competitive in what? They don't make anything the world wants except for vodka, and they drink most of it.
Russia has 84% home ownership
Possible, but they shove multiple families into one tiny apartment. Good luck having sex with a half dozen 5 year olds watching you.
Competitive in what? They don't make anything the world wants except for vodka, and they drink most of it.
If the ruble stays low-they can make anything they want and it will be competitive.
Competitive in what? They don't make anything the world wants except for vodka, and they drink most of it.
If the ruble stays low-they can make anything they want and it will be competitive.
It's not possible. When a currency crashes like that, you have high interest rates and inflation. It nullifies the temporary advantage of a currency drop. What do you think they can make? Cars...big screens....computers? It will take years and years even if they had what it takes.
Putin will be on his knees in no time, apologizing for his foolish mistakes.
Competitive in what?
#2 Defense exporter in the world after US.
I agree. Not something to be proud of, and weapons that are priced in dollars anyway.
Russia has the potential to be an economic superpower, but only by adapting what worked for the West. Capitalism, democracy, co-operation. Anything else is insanity proven over and over again.
Competitive in what?
#2 Defense exporter in the world after US.
At least 60% of these capabilities were tied to Ukrainian suppliers which are now lost for Russians and actively working on re-arming their own military. Expect collapse in many articles of Russian weapon exports. It has already started with helicopters. More to come.
Most people don't have a mortgage in Russia.
Not true anymore. The quoted 84% ownership is not "free and clear". Last decade has seen an explosion of housing prices and mortgage activity. Not many people can afford to buy a flat outright, especially in major cities like Moscow, St.Petersburg or even Novosibirsk. It's true that Russians prefer buying to renting (even when rent-to-own ratio is completely out of whack), but that doesn't mean they don't borrow to do so.
BTW, the main reason their active duty military personnel is agreeing to go on illegal "vacations" in Ukraine is because they are mortgaged to their eyeballs and would lose their flats if kicked out of the army. In such event not only will they lose their salary, their army-sponsored mortgage will be revoked immediately too.
Wish I had a wheelbarrow full of Fed Res notes that are worth nothing.
My dear Comrade, the worthless Fed Res notes now buys even more Rubles.
You guys can pray for America to collapse all you want, but God aint listening.
Competitive in what? They don't make anything the world wants except for vodka, and they drink most of it.
If the ruble stays low-they can make anything they want and it will be competitive.
All they make is crap.
Competitive in what? They don't make anything the world wants except for vodka, and they drink most of it.
If the ruble stays low-they can make anything they want and it will be competitive.
All they make is crap.
Even the 99 cent store carries nothing made in Russia. Not even pencils.
"We have only to kick in the door and the whole rotten structure will come crashing down."
http://streetwiseprofessor.com/?p=8996