Russia heading into economic disaster

Today Russia's Central Bank has raised interest rates by 6,5 to 17% in hopes of preventing rouble collapse. The rouble is currenly in steep freefall because of western sanctions and plummeting oil prices. Higher interest rates usually attract foreign investors. Russian rouble has declined 45% against the dollar since the start of year and is only 63 roubles per dollar. Oil price has fallen from $115 per barrel to $60 per barrel. Oil and gas account 70% of Russian exports and Russia needs oil price to be higher than $100 per barrel to cover the budget.
The Guardian

Obama signed more sanctions to Russia, but there is huge risk that it will hurt western countries too. By these sanctions its hoped that Putin is overthrown, but if not, it will be disaster for the whole World. Russia is certainly falling into recession and they probably ask money to save their failing banks.

Despite these huge economical problems, Putin is still very popular and blames west for trying to bring Russia down. So far Russian people believe him, and there is high confidence for the government. Moscow will probably pump more and more money to military industrial complex to keep employment high artificially and to prepare for further confrontation. This could lead to deadly implications, the oil rich regions of Russia may decide that they are better off going alone. Russia may also go into conflicts to distract attention.

Russians have already reacted to this situation, they have rushed out to buy imported cars, refrigerators, washing machines, TV sets and other major appliances because every day the prices become higher. Russians have used to luxury goods and they will buy them even when they don't have money. It shouldn't take long before people realize how bad the situation is and revolt against Putin.
News.com.au

This picture should explain

Dailymail

And again it's the working class who gets most affected.

Not to be 'that guy' but you might want to change your title: Economic not economical disaster.

a reply to: Thebel

The real irony is that all those big ticket consumer items are manufactured in the EU. Putin's policies have spooked the Russian public into transferring as much money out of the country as possible. To staunch this outflow of capital, Russians broadly associated with the government are now prohibited from having foreign bank accounts:

Trusted Russian propaganda site.

Desperate times call for bare chested knife wielding dictators
to make sound decisions, and do what's right for everyone.

Of course when he notices his own bank account
is in free fall, he may hit the SHTF button
and take us ALL out just for the hell of it.
Tony Montana style. ...shoot, what am I saying?
Tony Montana wishes he was as thug as Vlad.

Great! Lets back the Bear into a corner an poke him with a sharp stick. Jeez what da yah thinks gonna happen? MORONS!

originally posted by: HUMBLEONE
Great! Lets back the Bear into a corner an poke him with a sharp stick. Jeez what da yah thinks gonna happen? MORONS!

For twenty years we have been feeding the bear and now its getting greedy and stupid. Let's hope we don't have to put it down.

There is still strong faith among people that Putin will find the solution. But people have noticed that the prices have already risen, specially western products. The rich people are preparing for bad times by investing to electronics, while poor people have to save as much money they can. Russia has started to look like North Korea, people have really strong faith to their leader and blame western countries. Putin has been chosen Man of the Year 15th time.

There are rumors that Putin dislikes dealing with economy, he cares much more about the military, and there is always money for the military in Russia.

Its interesting to see how long Russians believe his lies and when will richer parts of the country want to separate from motherland. They do not want to support the whole country alone.

originally posted by: DJW001

originally posted by: HUMBLEONE
Great! Lets back the Bear into a corner an poke him with a sharp stick. Jeez what da yah thinks gonna happen? MORONS!

For twenty years we have been feeding the bear and now its getting greedy and stupid. Let's hope we don't have to put it down.

Put it down? I wouldn't be so cavalier about the potential of "noookler whar" (ala dubyah).

There may be different ways of looking at it in order why Putin has so much support while things from the outside might look so grim . One factor that is hard to understand that may be giving Putin the boost at home is the relationship with China and other Asian countries .

Published on Dec 16, 2014
On the teetering economy and possible economic collapse, former Assistant Treasury Secretary Dr. Paul Craig Roberts says, “We know something serious is wrong. The only provision of Dodd-Frank that has any teeth is the provision that says if the big banks are going to be casinos and gamble on derivatives, they cannot do that in the depository institution where depositors have their accounts. They have to farm it out into subsidiaries. So, if the subsidiaries get into trouble, the subsidiaries have no access to depositor’s money. This is the only real reform part of Dodd-Frank. Citigroup got put into the recent spending bill, the repeal of this, so banks can gamble on derivatives, and taxpayers and depositors are on the hook for the losses. Why would you do that unless you had a lot of derivatives trouble. It could easily be the oil derivatives. . . . The banks can gamble all they want and they are covered by the FDIC, which has no money. . . . This gives the banks access to depositor’s money. . . . This is sick, and it shows the United States government is the most corrupt government on earth, far more corrupt than Russia or China.”

The recent episode of Crosstalk is also worth listening to when trying to see the bigger picture . a reply to: Thebel

Anyone with sense knows that this is about forcing regime change. The end result is that the Russian people who are our brothers and sisters are the ones who have to suffer. Just like Iranian citizens. Regime change wil not come about. I am not taking sides on who is good or bad and who deserves what. I just don't want to find Russia as closed off to the world again. I don't want Russian citizens to suffer. Economic sanctions are pure warfare and the citizens are collateral damage and that's the intent. The US and Western Allies keep undermining Russian vigilance. It will only make them turn on the West.

a reply to: Thebel

There are rumors that Putin dislikes dealing with economy, he cares much more about the military, and there is always money for the military in Russia.

As a KGB officer, Putin was trained in wrecking economies, not building them. As a special assistant to the mayor of Leningrad/St.Petersburg at the start of his political career, he sabotaged the mayor's political opponents by buying German meat with city funds, then shipping it to Moscow. This led to a meat shortage and increased costs of living which were then blamed on the city commission that was threatening the mayor's power.

originally posted by: Annunak1
And again it's the working class who gets most affected.

Isn't that always the way? So the prices where over inflated in the first place! Why the Profiteering price gouging BASTARDS! They've been screwing the American taxpayer all along! (we already knew it, now this proves it) We all the people of earth need to rid ourselves of these parasites!

originally posted by: HUMBLEONE

originally posted by: DJW001

originally posted by: HUMBLEONE
Great! Lets back the Bear into a corner an poke him with a sharp stick. Jeez what da yah thinks gonna happen? MORONS!

For twenty years we have been feeding the bear and now its getting greedy and stupid. Let's hope we don't have to put it down.

Put it down? I wouldn't be so cavalier about the potential of "noookler whar" (ala dubyah).

Do you really believe that Russia is capable of delivering on its nuclear threats?

a reply to: Thebel

If I was Mr Putin I would be thinking about trying to loosen the grip that fossil fuel has on the economy. A huge state like Russia that still has allies and economic partners might just be able to shift emphasis.

I would be hectically busy with opening up as many areas of trade as possible internationally.

It is obvious that U.S and Europe are out to bring Russia into the fold. If Putin does not want that and the Russian people do not then the only alternative is to build an independent Russia.

One thing Russia does not have to worry about is its military might. We can only push Russia so far.

The natural gas exports are unaffected as it stands. Also, Europe is going to be hit by the sanctions. They are denied access to trade with Russia in areas stipulated by the sanctions.

Putin is no Hitler. He is clever. He will ride this out and if they make all the right moves they may come out of this even more independent and stronger. Make the most of this option. It is the only one they have if they do not want to be sucked up into what we refer to as the New World Order.

In a strange kind of way I want Russia to ride this storm. I'm no fan of Globalism the way it has rolled out. I know Russia are far from perfect, but neither are the U.S or Europe.

a reply to: DJW001

Do you really want to find out?

a reply to: Thebel

CHANGE

Humanity is more intrinsically intelligent than to depend on currency as a form of exchange. We live in a seemingly infinite universe there can be many things to "gauge" an exchange rate.
Residing in this space of having an unknown source (federal gov/"powers") carry out an exchange rate is FOOLISH, & can have unknown consequence(s). Look around at your Earth~ Just look at the media, movies, & extreme mental programming of most society.
Carry on, care for your neighbor. Money is for the heartless!!

I will gladly take first notions, my Mind & Heart are no opposed to it! Roar!
It's all coming to ... light, Ya see?
respect to humanity

originally posted by: DJW001

originally posted by: HUMBLEONE

originally posted by: DJW001

originally posted by: HUMBLEONE
Great! Lets back the Bear into a corner an poke him with a sharp stick. Jeez what da yah thinks gonna happen? MORONS!

For twenty years we have been feeding the bear and now its getting greedy and stupid. Let's hope we don't have to put it down.

Put it down? I wouldn't be so cavalier about the potential of "noookler whar" (ala dubyah).

Do you really believe that Russia is capable of delivering on its nuclear threats?

No doubt. They are as capable as the U.S, Israel and Britain. It is a political option. Israel even call it the Samson Option.

This is real folks. The nuclear option is a military option with all the nuclear nations. It is the last resort when all hope of withstanding invasion and attack is lost.

a reply to: the2ofusr1

There may be different ways of looking at it in order why Putin has so much support while things from the outside might look so grim . One factor that is hard to understand that may be giving Putin the boost at home is the relationship with China and other Asian countries .

no, it is Putin's control of the media that has allowed him to remain popular. As for Russia's relationship with China, the Chinese are being curiously quite about the fall of the ruble and the Russian Central Bank's desperate effort to save it.

Xinhua's curious silence.

You can bet that all Russo-Chinese deals will be denominated in US dollars for the foreseeable future.