I’m no economist but don’t you need to keep interest rates high to support a weak currency? Double whammy?Now it's crossed that threshold they may not get back to it for quite a while. I wonder what the next 'support' level target will be.. 0.8 of a cent?.
Russia needs to start comparing the ruble to their future Brics currency
I'm not sure. I'm not an economist either. But one adverse effect of a weak currency, as Joe Blogs explains in post 17,725, is that as your currency declines against other currencies, you are effectively importing inflation, as everything you buy is rising in price as your currency falls.
I didn't know that
I guess it could become a fairly continuous drop, potential currency buyers (apart from the Russian bank) just keep holding off as they expect interest rates to rise further
. .. which they probably (hopefully) will.
Russia must surely be getting stretched militarily, military police wise...at some point this must show.
It should, but we don't know the extent to which the Kremlin will find money from existing budgets, to keep the show on the road.
It’s already showing. They’ve got NK troops fighting for them and so are very stretched.
www.theguardian.com
NK troops have no experience in the freezing Russian/Ukrainian winters and apparently have been issued with basic Russian uniforms and little training. Recipe for disaster (we hope). Into the meat grinder they go…..
The NK troops have been indoctrinated that they are the crème de la crème and that all others are inferior, which will not go down well with the Russians. It’s a recipe for disaster .. tragic
.