Russia has just lost the economic war with the west

Wabbit

Banned
Legendary
Joined
Nov 15, 2011
Messages
11,335
Kin
0💸
Kumi
0💴
Trait Points
0⚔️
You must be registered for see images

thegurdian said:
A full-blown currency crisis. That’s one way to describe the situation in Russia, where even the attempted “shock and awe” of a 6.5 percentage point-hike in interest rates failed to halt the rouble’s slide on the foreign exchanges. The other is to say that Russia has been engaged in an economic war with the west – and has just lost.
.
.
.
So where does that leave Russia? Like Lamont, it has reached the end of the road with interest-rate increases. If a 6.5-point rise proves insufficient to halt the collapse of the rouble, it is hard to know what would do the trick. What’s more, it’s clear that some members of the policy elite in Moscow are unhappy with the idea of further damaging an already weak economy through draconian increases in interest rates to defend the currency.

As a result, there are now only two options. The first is to allow the rouble to find its own level, in the hope that the decline in the oil price will prove temporary and that rising demand for energy as the global economy recovers will push up the rouble against the dollar. The other is to introduce stringent capital controls. These are seen very much as a last resort by Moscow, but may prove necessary if the rouble rout continues.

The phrase “perfect storm” is much over-used, but in Russia’s case it is entirely apposite. The country has a collapsing currency, a collapsing economy and sky-high interest rates. The question now is how the Putin government responds. If Moscow softens its line over Ukraine, it will be a case of mission accomplished for the west. But if economic agony makes a wounded Russian bear even more belligerent, it could prove to be a hollow victory.
[ ]



After seeing almost everyday on RT that sanction will hit back at west blah blah I saw this on guardian today.
What do you think about this?
 

Filosoofis

Banned
Veteran
Joined
Apr 26, 2014
Messages
3,769
Kin
0💸
Kumi
0💴
Trait Points
0⚔️
Awards
As a Dutch boy from the west who loves Russia. It isn't true what the western media is trying to show you nor is RT always. But it is true it is going bad with Russian economy on the other hand EU is also losing money. It isn't hard to do something like this 50 countries vs 1. Putin will just get them out of this problem with other countries like China india. The dollar will collapse in the future and Europe is still blind to see that Russia is not the agressor at all in this situation the USA can't see their own country faling apart so they are trying to extend it by creating more conflicts in the world.
 

Aim64C

Active member
Veteran
Joined
Dec 18, 2012
Messages
3,681
Kin
0💸
Kumi
0💴
Trait Points
0⚔️
Awards
The reality is that this is a gambit mostly led by the Saudis.

As Russia has recovered from communism and the U.S. has slowly begun expanding its exploitable oil reserves through more advanced drilling, the Saudis have seen fit to try and knock out the competition by tanking prices into the ground.

First - this should stand as a lesson to Americans. When politicians tell you that "drilling more oil will not lower gas prices" - run them out on a rail, because this is evidence that directly refutes the notion that reduced oil prices do not create lower costs at the pump.

Second - this isn't really an example of "The West" doing damage to Russia's economy - nor is it nearly as deadly to their economy as it appears. Russia has adopted a mentality that suits their environment - they are used to long, punishing cold spells. They will chug through this like a Siberian blizzard.

Third - I am concerned what kind of damage this is going to wreak on the American economy.

Some of you who pay attention will remember that I have been saying "April of 2015" for a while, now.

[video=youtube;eKUfGLjNX-8]https://www.youtube.com/watch?v=eKUfGLjNX-8[/video]

The dollar's fiat currency system requires continual investment in the dollar.

With the Saudis sending oil prices through the floor (which are unsustainable for them - they can keep that up for perhaps two quarters - they are selling oil at a loss, currently), it can potentially upset investment in Federal Reserve bonds - which, once started, can trigger a cascade of trade shifts that ultimately collapse the U.S. economy.

Should be interesting to see this all unfold.

Call me crazy - but I've had a feeling about April for some time, now. I'm curious to see what will end up being the cause of that feeling.... if anything.
 

Wabbit

Banned
Legendary
Joined
Nov 15, 2011
Messages
11,335
Kin
0💸
Kumi
0💴
Trait Points
0⚔️
With the Saudis sending oil prices through the floor (which are unsustainable for them - they can keep that up for perhaps two quarters - they are selling oil at a loss, currently), it can potentially upset investment in Federal Reserve bonds - which, once started, can trigger a cascade of trade shifts that ultimately collapse the U.S. economy.

Should be interesting to see this all unfold.

Call me crazy - but I've had a feeling about April for some time, now. I'm curious to see what will end up being the cause of that feeling.... if anything.
If they screw US economy who is going to keep them intact? They will soon face competation for power in the region.
 

Aim64C

Active member
Veteran
Joined
Dec 18, 2012
Messages
3,681
Kin
0💸
Kumi
0💴
Trait Points
0⚔️
Awards
If they screw US economy who is going to keep them intact? They will soon face competation for power in the region.
They aren't thinking that far ahead.

They aren't trying to cripple the U.S. Economy - they are simply trying to preserve the Status Quo. They take, for granted, the stability of currencies.

They also are counting on other powers/authorities to counter the threat posed by the Islamic State. In many cases, they could believe that if they do not remain toward the top of the food chain in oil production that other nations will not have reason to intervene against the Islamic State.
 
Top