It took less than 40 minutes for the ruble to tumble from it's first time ever crossing 56 / USD, to reach 56.7.
This got me wondering, is there more bad news? I think it's merely the continuation of the petroleum collapse.
Bank of America is reportedly forecasting crude to fall to USD 50 / bbl, but with a good rebound in the second half of 2015. Even so, the average oil price for 2015 may be as low as the 70s, which is not good news for Russia...
Somebody, on here, a while back suggested that the west should have intervened with militia in Ukraine, things seem bad enough as they are without further military activity.
Meanwhile, just as example, Russia's airlines are going bankrupt, airliners are generally leased with lease payments in USD's, aviation fuel (airliners drink a lot of it) is priced in USD's, all these companies that have taken out USD loans, even Euro or Monopoly money loans, many of them are going to the wall whilst Putin is in a panic.
Perhaps the time has come to sit back, grab some popcorn, and watch the party :)
P.S. And Durak, it only seems a few weeks back you were questioning if the ruble would drop to 41 to the dollar!
P.P.S. I'm out of touch here, have OPEC dropped the price of oil deliberately to f*ck with Putin?
'It now costs twice as many rubles to buy a dollar, compared to the exchange rates I remember from my visits in 2004-2008.'
Well, my first trip to Ukraine in 2006, the hryvnia was at 5.05 to $1usd, it is currently over 16...what is that more than 3 times???
First time in Russia, rubble was around 27 to $1usd, so it has slightly more than doubled.
Balanced? As I tried to explain to you a few days ago (27 November), it's apples and oranges.
A big, rich country has invaded, occupied and stolen the territory of, and continues to wage bloody war against a smaller, poorer country. There is no symmetry at all there. Get that?
The victim country's economy, which was already a shambles, has gotten even much worse since the invasion. No surprise there -- everybody who cares about Ukraine knows all this. The aggressor country had a relatively strong and stable economy, which it has chosen to put at risk by maintaining its brutal aggression. There is no symmetry at all there. Get that?
Even if Ukraine goes completely bankrupt, and people are starving and freezing in the streets, Putin will continue to stomp Ukraine under his boots. However, if Russia goes bankrupt, its aggressive posture toward Ukraine just _might_ have to change. There is no symmetry at all there. Get that?
ONE country, Russia, can save both its own economy and Ukraine's by complying with its own treaties, and with international law. Ukraine has no comparable influence. Only Russia can make this decision. There is no symmetry at all there. Get that?
When a guy is kicking the shit out of somebody on the street, and I focus on attempts to arrest and prosecute him (instead of the surgeons having to remove the victim's spleen), is that unbalanced reporting?
1. From Rossiskaya Gazeta: The Gosduma (national parliament) just "passed a law banning accounts in foreign banks for officials working in the field of national security." A similar ban already existed for a limited number of top officials: "It's about leadership, the General Prosecutor's Office and the central bank, the management of state corporations and those federal officials, who are appointed by the president, the government, or the Attorney General. Now the list is greatly extended."
2. From lenta.ru, also in the Gosduma: The "Fair Russia" party has introduced legislation to require all companies and individuals in Russia conducting export business, to exchange at least 50% of their foreign currency earnings for rubles.
Get that? "We know you don't want to keep your money in this lawless country, or in our failing currency -- that makes no business sense. So we are going to compel you by force of law."
If Russia had rule of law and a transparent government not based on massive theft and corruption, there would be no need for such laws.
About two hours ago, the ruble crashed 58 / USD, and has remained over 58 since.