Russia Defends Ruble With Biggest Rate Rise Since 1998

“Russia took its biggest step yet to shore up the ruble and defuse the currency crisis threatening its stricken economy.

In a surprise announcement just before 1 a.m. in Moscow, the Russian central bank said it would raise its key interest rate to 17 percent from 10.5 percent, effective today. The move was the largest single increase since 1998, when Russian rates soared past 100 percent and the government defaulted on debt.

The ruble lost 2.5 percent to 66.0985 against the dollar as of 12:53 p.m., reversing an early gain prompted by the news.

The announcement, as well as its timing, underscored the financial straits in which Russia now finds itself. If sustained, the new higher rates would squeeze an economy that is already being hurt by sanctions led by the U.S. and European Union, and by a collapse in oil prices. Some analysts said they doubted the economy could withstand such high rates for long.”

Think Putin is going down without a fight? I don’t. Right now they are forcing the Russian bear into a corner.If the collective oil producers keep oil low for a long enough time they will leave Putin few options. Hard choices:Let your economy collapse or start pillaging foreign treasuries.
A man pushed to empire by events. What’s a Hun to do?
At this point I think we should just spare all of the bloodshed. We should have the champions meet on the field of battle and settle the score.
We can send Dear Leader out on a girls bike, wearing mom jeans and clutching a handful of healthy recipes to vanquish the blood thirsty half Hun. To the victor the spoils!!
What say you, comrades of New Russia west?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s