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Thread: Russian rouble suffers steepest drop in 16 years

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    Russian rouble suffers steepest drop in 16 years

    Russian rouble suffers steepest drop in 16 years
    December 16, 2014

    MOSCOW (Reuters) - The rouble plunged more than 11 percent against the dollar on Tuesday in its steepest intra-day fall since the Russian financial crisis in 1998 as confidence in the central bank evaporated after an ineffectual rate hike. It has now fallen close to 20 percent this week, taking its losses this year against the dollar to more than 50 percent and stirring memories of the 1998 crisis when the currency collapsed within a matter of days, forcing Russia to default on its debt. The central bank's First Deputy Governor Sergei Shvetsov said the bank would implement more measures to stabilize the currency market, calling the situation "critical".

    Source
    The Russian ruble has lost 50% of its value against the dollar this year. Analysts now predict that the Russian economy will contract by 4.3-4.7% in 2015 which is higher than the contraction which led to the US Great Depression. On Sunday the Russian Central Bank raised interest rates from 10.5% to 17% in a desperate attempt to staunch the ruble's free-fall and capitol flight. It didn't work. There are now three negative forces at play feeding on one another... plunging oil prices, Western sanctions, and panic in the commercial and public sectors to divest portfolio's of the ruble before it becomes worthless. The only choices left now are spending billions in foreign reserves every day to artificially prop up the ruble or to implement capital controls that forbid currency conversions. Neither option is palatable nor guaranteed to staunch the economic bleeding.


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    Re: Russian rouble suffers steepest drop in 16 years

    destabilizing Russia's economy does us little good. it would be nice if we could stop pissing around with the globe and fix our own problems instead.

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    Re: Russian rouble suffers steepest drop in 16 years

    Quote Originally Posted by Helix View Post
    destabilizing Russia's economy does us little good. it would be nice if we could stop pissing around with the globe and fix our own problems instead.
    While I agree with your sentiments, I'm doubtful that our sanctions are doing much damage to Russia.
    I think the plunging oil prices are the problem.
    If Russia hadn't marched into Crimea, maybe the rest of the world would be more sympathetic to their plight.
    No matter how cynical I become toward politicians, it's never enough.

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    Re: Russian rouble suffers steepest drop in 16 years

    Quote Originally Posted by radioman View Post
    While I agree with your sentiments, I'm doubtful that our sanctions are doing much damage to Russia.
    I think the plunging oil prices are the problem.
    If Russia hadn't marched into Crimea, maybe the rest of the world would be more sympathetic to their plight.
    plunging oil prices were a big part of the sinking of the soviet union, too. but in this case, we look like a convenient demon. it would be nice if we would have just stayed the **** out of it.

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    Re: Russian rouble suffers steepest drop in 16 years

    Quote Originally Posted by radioman View Post
    While I agree with your sentiments, I'm doubtful that our sanctions are doing much damage to Russia.
    I think the plunging oil prices are the problem.
    If Russia hadn't marched into Crimea, maybe the rest of the world would be more sympathetic to their plight.
    They did not march into the Crimea (in force) until there was a referendum that went overwhelmingly in Russia's favor.

    If anything was illegal, it was the coup that overthrew the legally elected (though corrupt) leader of the Ukraine. Those idiot rebels that did that could have avoided almost all of this mess if they had just waited a few months for the next general election.

    And it is the same thing in the Donetsk region - Russians did not intervene until after the referendum that again was overwhelmingly in Russia's favor.

    And why is it horrific if Russia marches into the Crimea after a referendum (granted, there were some troops there before - but there were U.S. troops in Iraq and Afghanistan when they had their elections) BUT it is fine when America invades, bombs and embargoes (like Cuba) anyone they feel like?

    Now Putin is no saint. In fact, he is probably a pig. But I see what Russia has done as only a fraction as bad as what America has done over the past 5-10 years.
    Last edited by DA60; 12-17-14 at 04:55 AM.

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    Re: Russian rouble suffers steepest drop in 16 years

    Quote Originally Posted by Helix View Post
    plunging oil prices were a big part of the sinking of the soviet union, too. but in this case, we look like a convenient demon. it would be nice if we would have just stayed the **** out of it.
    When do you think we should get involved in foreign affairs? Ever? Under what circumstances?
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    Re: Russian rouble suffers steepest drop in 16 years

    Quote Originally Posted by Redress View Post
    When do you think we should get involved in foreign affairs? Ever? Under what circumstances?
    when they bomb Pearl Harbor, and invasion looks like a real possibility.

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    Re: Russian rouble suffers steepest drop in 16 years

    ...Putin is owning Obama. He's a chess player and Obama plays checkers! Obama is a fool who doesn't know what he is doing! Imagine if the dollar's value dropped by half within 2 years. Republicans would have a field day rimming Obama for it. However, Putin has done just that, and he's... the strong leader Obama should fear? Lmao.
    Last edited by Hatuey; 12-17-14 at 05:04 AM.
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    Re: Russian rouble suffers steepest drop in 16 years

    Quote Originally Posted by DA60 View Post
    They did not march into the Crimea (in force) until there was a referendum that went overwhelmingly in Russia's favor.

    If anything was illegal, it was the coup that overthrew the legally elected (though corrupt) leader of the Ukraine. Those idiot rebels that did that could have avoided almost all of this mess if they had just waited a few months for the next general election.

    And it is the same thing in the Donetsk region - Russians did not intervene until after the referendum that again was overwhelmingly in Russia's favor.

    And why is it horrific if Russia marches into the Crimea after a referendum (granted, there were some troops there before - but there were U.S. troops in Iraq and Afghanistan when they had their elections) BUT it is fine when America invades, bombs and embargoes (like Cuba) anyone they feel like?

    Now Putin is no saint. In fact, he is probably a pig. But I see what Russia has done as only a fraction as bad as what America has done over the past 5-10 years. And a tiny fraction at that.

    And Neocons who disagree? Save it - I have NO respect for your opinions on this subject. NONE AT ALL...you people are a far bigger problem for America then all terrorists in the world combined, imo.
    I'm no neo-con and hopefully that group has been marginalized for the foreseeable future.
    I'm not going to defend my country's bumbling in the M.E.
    The fact is, Russia did march into the Crimea.
    Now their economy is sunk.....live with it.
    When China decides to exercise it's historic claims on Siberia, they will use the same rationale as Putin has used in the Ukraine.
    No matter how cynical I become toward politicians, it's never enough.

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    Re: Russian rouble suffers steepest drop in 16 years

    Quote Originally Posted by Helix View Post
    plunging oil prices were a big part of the sinking of the soviet union, too. but in this case, we look like a [COLOR="#B22222"]convenient demon.[/COLOR] it would be nice if we would have just stayed the **** out of it.
    Oh, hell.....we're always a convenient demon.
    Sometimes we actually are that demon.... this time, not so much.
    No matter how cynical I become toward politicians, it's never enough.

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