Looks like the Ruble went bye bye today, some call it a collapse. Russia in turn increased the interest rates from 10.5% to 17% all in an effort to combat inflation. can you say OUCH, I am certainly glad i do not have any Russian loans. This decline has been on a sharp uswing since around october? What could have happened then? Could it be the cheaper gasoline in America? Thats my hunch but I will certainly be waiting for the other shoe to drop on this one. I feel like a move like this could out the US that much faster, I could be wrong but I would watch the airline industry and other transport industries for clues.
But low oil prices aren't the only reason why the inflation rate in Russia accelerated that fast. Russia's economy has been ailing ever since they were hit with sanctions. As time progresses and the effects of the sanctions continue to be felt more sharply I'm sure that the value of the Rouble will keep dropping as interest rates creep up.
The cumulative effect of crippling sanctions, oil manipulation, increasing political isolation, banking shenanigans withing the RF, and the fact the Ruble was never that strong to begin with are really taking their toll. Considering the thug they have running the show, they are getting what they deserve. It would be interesting, and good for the world stage, if Putin was deposed.
