Russia down 11%

I'm really surprised this hasn't been getting more attention.

Russia dropped 9% yesterday, today its down another 11% and its not even lunch time yet.

indexq.org...

What happens if it goes further down that it can handle?

it will bounce back up like any strong economy would, and nothing more.

This subject has been getting quite a bit of attention on my news channels.

Well, this is what happens when you have an economy based on a commodity (oil and gas) which goes up and down in price. In Russia's case this is also compounded by sanctions for their interference in Ukraine, including the annexation of a part of the said.

Russia has been held back since the end of the Cold War by corruption and political nepotism and these have prevented the economy diversifying away from oil and gas dependence. Even Putin, a simple and modestly paid president has benefitted by (allegedly) many billions, and he certainly surrounds himself with people he has made very, very rich.

If the Russian people want to change then they need to change how they are governed. Kick out the autocrats and sort out the problem with corruption.

Regards

Interest rates just up to 17% a rise of around 7%.

www.bbc.co.uk...

Russia is going to fall sooner or later. The economy is really bad currently because the oil and gas price is so low, which are main income for Russia. Putin hasn't addressed this concern, he pretends that there is no problems. And oil price keeps getting lower, meaning more problems for Russia. There is no hope in future.

Manipulating oil price is the deadliest weapon against the Russia, that is the reason why its so low. Oil price is manipulated by someone (US?) to hurt Russian economy.

It's all financial manipulation on a grand scale to hurt the targeted state.

However, when you look at the stuff the western banks have just been putting in place - bail-ins, federal insurance on derivative trades etc - it looks like we are all in the same boat, only our governments as usual are all cooking the books and telling us the economy is just fine. A big crash is coming and it's all thanks to the globalised banking and rigging of markets.

Russia has already penned the new energy trade deals with India, China and others so has found new markets and customers to trade with. Are they still going to be hit by the manipulated lower prices? Of course, but so too are the rest of us. Lower prices at the pumps also hit taxation revenue to the state which they need to make up elsewhere.

It's all manipulation and rigging and those controlling it all, the central banking cartels, can increase or lower the value of currencies or commodities at the stroke of a pen. It's all really illusion and far more manipulated than they would have us believe. As such, Russia can probably weather the storm. Sure it'll hurt, but it's hurting us too, despite what the politicians and talking heads on TV tell us.

I remember seeing interview clips with a couple of the ratings agency head honchos during the 2008 crash. They clearly stated that the ratings they give are "opinion"? What the hell? If that doesn't smack of worthlessness then I don't know what does! And these guys have the power to determine the worth of entire countries!

a reply to: Thebel

You also have to remember that Russia supports Syria so obviously its going to be targeted nby saudi, israel, usa and uk etc etc.

However despite the difficulties its experiencing, its making huge deals and if the above countries think China won't help it out in order to balance the power base perhaps people may be in for a surprise.

Russia is making deals that could ultimately backfire against europe and it shouldn't be forgotten putin is a wily fox and loved politician so I don't think its time to crow ha ha! just yet. The Russians are survivors and its a shame our politicians don't recognise how much better we would be in europe with an allied russia, not a pis..d off russia.

This is an attack on Russia and nothing more. Public pressure didn't work. Sanctions and a devaluation of the rubble didn't work. Now an attack on their primary export....will Russia come to the table now or have they anticipated this?

There is way too much money being lost by western companies with a price this low but it hurts Russia more. When you think about it, it actually explains the merger between BHI and HAL, the second and third american oil company on the market (before the major plunge a few weeks back). They knew, forewarned i'm sure but rest assured once whatever effects are done regarding Russia, you will see it go back up.

As I'm typing now a CNBC talking head was just discussing the impact of oil and sanctions combined hurting Russia's economy. Personally, I would think one would need to be really really bind to not see this for what it is. Cold War 2.0....Reagan eat your heart out!

a reply to: Thebel

Russia is going to fall sooner or later.
Those whom are hoping for Russia to fall should rethink there pathetic anti-Russian statement.

The economy is really bad currently because the oil and gas price is so low,

The economy in Europe is far worse then it looks.

a reply to: Rosinitiate

This is an attack on Russia and nothing more. Public pressure didn't work. Sanctions and a devaluation of the rubble didn't work. Now an attack on their primary export....will Russia come to the table now or have they anticipated this?

Your right they are now trying to force an manufactured protest from this. Putin was right when he said that America and the EU wants to subside Russia.

is it still down even after they raised interset rates to 17% ?

Don't ever buy the story that rates in the western world will never rise above 5%

originally posted by: Agent_USA_Supporter
a reply to: Rosinitiate

This is an attack on Russia and nothing more. Public pressure didn't work. Sanctions and a devaluation of the rubble didn't work. Now an attack on their primary export....will Russia come to the table now or have they anticipated this?

Your right they are now trying to force an manufactured protest from this. Putin was right when he said that America and the EU wants to subside Russia.

Putin had a front seat the first time around, whereas Obama was still being groomed. 2015 is going to make for a very VERY dramatic year me thinks.

a reply to: Rosinitiate

Putin had a front seat the first time around, whereas Obama was still being groomed. 2015 is going to make for a very VERY dramatic year me thinks.

Me like many others have been saying this for five year and are still wrong.

What i do know is that the debt in the west keeps going up and that Russia has very little debt so something has to give and i thinks the rubble would be a good buy just now was i not into physicals

Micheal Hudson gives his take on the situation in this vid . Putin tried talking to EU Nations but they were not interested so Putin simply turned further east . Seeing the large emerging markets in India and China I am sure the economic benefits will be flowing in the future .

a reply to: the2ofusr1

Assuming we do not become a carbon free economic world. A carbon free world economy would impoverish Russia and most of the middle east.

Russia does have low debt to GDP of around 30% and has saved up a war chest. How long this can last only they know.

currently down 13.7%...

thats a crash, technically.

a reply to: Agit8dChop

I know it's no laughing matter, but i can't help but be reminded of this prophetic sketch:

driving the price of oil down to cripple Russia´s exports is an act of war

If the world ever became free of carbon it would become a ice ball and in no need for economics .Most of the talk about the ills of fossil fuels and the need to replace them would be a near impossibility in reality .As long as we need energy to live and function we will need fossil fuels .That need will always seek out a supply .That exchange will either be met or not . The EU as it stands needs energy and Russia was meeting some of that but with the way the boat is headed at present they will need to find other suppliers and that will only cost them extra compared to what they were looking forward to with Russia . By them not allowing the south stream from going through they have shot themselves in the foot . They will be paying the price to appease Washington .

Oh and if you look at the cost that will be incurred in the Ukraine fiasco ,both EU and USA will be on the hook for Billions and Billions of $$ to waist on a bankrupt Ukraine .This at a time when the printing press is having it's own meltdown and no chance of keeping up . Total collapse only means ,total war ...best of luck to all
a reply to: ispyed

The Ruble continues to freefall downwards - it just hit 100 Rubles to one Euro and 80 to the dollar. Well, if you have 10% inflation and your interest rates have just jumped to 17% you are in the smelly stuff.