Russia raises key interest rate to 17% amid rouble decline
 

The Russian central bank has announced it is hiking its key interest rate to 17% from 10.5%.

The bank said the move was to try to ease the rouble's recent descent in value.

The Russian rouble has dropped to a new low against the US dollar, as falling oil prices and Western sanctions continue to weigh on the country's economy.

Continued BBC News - Russia raises key interest rate to 17% amid rouble decline

Goodbye Russia :1orglaugh

Sanctions can work better than any bomb...it just doesn't satisfy people's need for instant results.

Where are all the shirtless Putin pictures now..

17%? They are either wildly over-reacting, or they are in worse trouble than I thought. Wow.





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Russia its going down.

Now lil putin should handle it in his tiny ass

The average russian must really be feeling this. Lets say they have a mortgage in rubels, and are paying off a flat whilst working for rubles locally. Their credit % just went from maybe 5% to 20% over the course of a couple of months - and I doubt their salary increased that much.

That being said, i'm sure the russians here on gfy who make money in dollars and euros are popping open champaign - I know I would be if PLN took a crash like that.

:1orglaugh:1orglaugh

Wherever Russia goes, Germany will follow.

Why is that?

USD/RUB +20 % !!! - 75 to 1

crazy.......

I must be missing something - Please explain...

Which one? I thought oil prices does not depend on sanctions? :upsidedow

The secret of Putin's success was an extremely high price on oil during very long period. Now everybody could see he is not a genius. He's nothing.

P.S. Was telling it ya for years.

yes, be happy and welcome your new government installed by US and Wall street ;-)

I strongly believe that our current one was installed by the US and Israel. Don't forget that Putin was set to power by Berezovsky...

BTW, I'm used to spend about 7000 rub in a restaurant which was about $200 for two persons (me and my wife). Now it will be less than $100. A litter of gasoline was was about $1. Now it's only 40-50 cents. What a wonderful world :thumbsup

Do all Russians not give a fuck about their country or just you?

Pathetic seeing you gloat while the majority are really being hurt by this.

Then again, you have always been a real asshole.

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EURRUB=X: Summary for EUR/RUB- Yahoo! Finance
This is like watching bitcoin charts. It almost hit 99RUB / 1EUR

Geography.

In all fairness, if your savings (assuming he keeps in USD or EURO) and buying power suddenly doubled - would you be unhappy?

You two should get married to each other. Would make a lovely idiot couple.

Your feigned indignation speaks greater volumes than you know.

How one handles good fortune that arises because others are facing hardship tells everything you need to know about someone's character.

Gloating because your country's fellow citizens just took a standard of living hit says everything you need to know about him.


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You just an idiot, do you know that? I was always for a strong Russia. I saw that Putin is doing to my country. He simple destroys it, destroys our economics, destroys our laws, destroys our freedoms...

84% (or how many morons were supporting him?) of others didn't understand that. They consider me as a foe when I told them that we need another government. Not I'm not incited them for a revolution or some illegal actions, of course. I have simple tried to explain who they must vote for and why they must never support Putin, never vote for him and his corrupted party. In best cases they eyed at me as at idiot who is so stupid to understand the greatness of Putin.

Those 84% of sheep were in need for a some serious shake up to open their eyes. Now they've just got it. If they continue supporting Putin, the situation will get worse with every year.

So once again, go fuck your self, you clueless clown :321GFY

Now new cold war on doors

So continue to lash out at your government, that's natural, I do it. But don't gloat about your good fortune which is tied exactly to their misfortune and harder lives.

Dick.


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It's not a misfortune for them. It's their chance to open the eyes. This is a GOOD chance for them and for a whole my country.

Fuck off, clown.

:1orglaugh:1orglaugh

You're too much.

Since I'm in Texas today I think steak & eggs sounds like a perfect breakfast. Nice chatting with you again, don't meet solid citizens like you everyday.


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Watch the level of your cholesterol.

In no way did I imply indignation. What do I have to be indignant about? I am simply surprised.

I'm not sure what to infer from what you are saying either, although the air of darkness and malevolence is certainly intriguing! :1orglaugh






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Hope they do not decide to pull it out by starting ww3. A common solution in the past. :Oh crap

Sorry, it's not a clavinet, but will this suffice?




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It's in the short run only, then prices get up real fast.

http://i.imgur.com/eMlBPcq.jpg

Are you sure?...

What he doesn't see in Moscow is how the other side of the country is affected. Cities like Vladivostok, Nakhodka and other areas in the Far East where almost all stuff including food is largely imported from Korea, China and Japan (90% of all cars are used Japanese cars) and so on. Now they are fucked... they can't sell something for Rubles and pay in $ because Rubles are in a free fall. Foreign companies can no longer give them credit terms because you can't give someone 100k in Electronics or appliances, expect them to sell in Rubles and then convert those Rubles to $ for repayment. By the time that product gets from Korea to Vladivostok, Rubles could have dropped another 30%. Since salaries didn't rise 30%, products get more expensive and do not sell anyway. So they get truly fucked. Tons of people went out of business over night that were relying on imports when the Ruble crashed in 98 (was devalued by the government).... I watched the whole Russian Far East completely grind to a halt then as well and know exactly how this plays out in most of these regions. It's not pretty for anyone.

The only people that thrive are those exporting natural resources (fish, coal, timber, metals etc) as they collect payments in Dollars/Euros but still pay all domestic expenses in Rubles where production and every related cost is getting cheaper and cheaper for them. But the common people suffer a lot because prices on everything are going sideways more and more by the day, but their salaries will remain mostly unchanged or lag far behind price increases. Or.... common people have a great deal of "opportunity" as CyberSEO says,.. presumably an improved opportunity to suffer.

Fucked? You wish :1orglaugh Read something about 1998 crisis. That time dollar jumped from 6 rubles to 36 (yes in 6 times almost immediately). Sure that wasn't a cool thing for many, but the heavens did not fall. The same will be again. China (as well as other countries) still buys Russian gas and oil for dollars, so "fucked" is not a suitable word in such a situation.

Don't argue with Lawrence Connor. He never makes sense. :)

Trouble.

Russian Ex-cam girls are returning online. It's the time to setup new studios in Russia.

The average citizen does not get any of those oil dollars, though

I was living in Vladivostok at the time. I remember everything quite well. I remember Yeltsin announcing in the evening that he was NOT going to devalue the Ruble and in the morning he did. Rubles went from something like 5.5 to 1 USD to 9 to 1 USD by noon the next day losing 1/2 their value against the dollar before lunch time. I had money in the banks that i couldn't get out because banks froze all accounts.

The government also summarily pulled the licenses from over 1000 Russian banks, fucking people over, claiming they were money laundering banks with no concern for innocent depositors and how it was going to affect them.

At a certain point, the government was forcing people to transfer $ accounts to Sberbank to be able to withdraw the money in Rubles only and they were exchanging money at very very horrible exchange rates and making a killing on the difference. I am trying to recall the specifics but at some point, the only way to get money out of weak banks was to transfer it to Sberbank for retarded fees and horrible exchange rates, where we'd lose 30-40% of the value just to access cash.

All the large outdoor markets in Vladivostok, relying 100% on chinese/korean imports were shut down over night. The biggest car market in Russia probably is in Vladivostok - selling used Japanese cars and it went from having 40,000 cars for sale to nothing but empty acres and acres of space because no one was going to spend $ not knowing what the next day would bring.

Imports stopped completely.

Everyone that had already imported for sale foods, electronics, cars/parts/accessories, clothes etc etc etc were 100% fucked because they couldn't sell anything at the rate rubles were falling in order to be able to have the $ that they needed to in order to pay back creditors.

There was also a massive murder spree across Russia of bankers and people in the financial industry, primarily because everyone wanted their money out of banks/investments and there was no way for them to access that money, for a variety of reasons (Central bank pulling licenses, no access to funds invested in government related instruments etc).

Of course the economy survived. Why? Because right after that, oil began slowly increasing in price. Otherwise, you'd still be in a bread line today had it not.

So to suggest that no one suffered is idiotic. Everyone suffered in all of Eastern Russia for sure,... as did i when all my funds were frozen in banks that couldn't afford a run on deposits.

So get ready. Oil is going to be cheap for a long time and Russia is being shut out of foreign markets, the Ruble is falling apart and you can talk about the greatness of Russia all you want, but its only going to get worse and worse and worse for a nation of leaders who just can't wait to work against, not with the rest of the developed world.

Right.. Russia only exports natural resources primarily. These people win all day long. Their costs are in a free fall and they sell products for Dollars and Euros and are killing it. All of the small, medium and large business people that need to import clothes, foods, electronics, appliances etc etc etc are fucked. Sony doesn't make TVs in Russia. They have to be paid for in Dollars, imported AND then they have to be sold for Rubles, those Rubles converted back to Dollars and the debt paid. That's impossible when Rubles are in a free fall and you buy inventory at 35 rubles to the dollar one day and the exchange rate is 65 to 1 dollar a week later. You can't just double the price of TV's and sell them because peoples salaries in Rubles remain unchanged.

In fact he does. Free medicine, free education, funny tax rates (how about 6%?) etc. It's all the oil dollars.

I have heard this fairytale a lot of times. You know dude, I was living in a few US cities too, but I'm not trying to pose myself as the expert in the US economics.

BTW, the new prices on the same imported goods in Russia, Belorussia and Kazakhstan:

http://pics.v6.top.rbc.ru/v6_top_pic...7584363761.jpg

Full story: http://top.rbc.ru/business/17/12/2014/549039452ae596c9312d5f61

Oh those poor-poor Russians from Vladivostok ))))

why wont you post these prices in rubles...and why wont you say that from now everything imported will be 2,5 times more expensive ? as..1 usd is still 1 usd...but 1 usd is no longer 30 rubles, but 75 ......

edit: ah, ok i see that they are in rubles too.....

Why won't I? The ruble prices are shown on the same picture.

The simple fact is that I was there, with several businesses. You talked to me like I don't know and I was right there watching it all unfold and I was one of the many trying to get my money out of MDM and Bank of Primorye. So you can cut the "fairy tale" bullshit. I've seen and experienced much more of your own country than you have.

I often have used this situation over the years as an example of how resilient a free market economy is, regardless of reckless tax laws, business laws, corruption etc etc etc.

Of course things will be fine in the end economically meaning that things will eventually find a point of equilibrium and stabilize, but with a long term decline in oil and gas prices, coupled with Western Sanctions and a horrible foreign investment climate in Russia, Russia is in serious trouble for a long time.

I have a serious doubts. Sorry.

P.S. I was born and grown in some cold and snowy Siberian city (it was Soviet Union and then Yeltsin's 90's). I live in Moscow during the last 10 years only. So please don't try to tell me what you know my country better. I don't even think you have been here at all because of all those b/s in your posts :2 cents: