The incredible shrinking Ruble.
The ruble’s collapse is disastrous for Putin – and bad for you too
by Geoffrey Smith |December 15, 2014 | Fortune
A financial crisis would make the Kremlin more unpredictable, wreck western banks and heap misery on the Russian people.
Russia’s ruble is melting down faster than you can say “Vladimir Vladimirovich”. That’s nothing short of disastrous for him–but it ain’t good for you either.
The ruble fell a jaw-dropping 11% against the dollar Monday. Even when seen in the context of the dollar routing all emerging market currencies (Brazil’s real fell 1.2% and South Africa’s rand 1.5%), a move like that is straight out of the Financial Crisis Handbook–completely unsustainable. Russia has seen nothing like it since it defaulted on its domestic debt in 1998.
Given President Vladimir Putin’s status as the West’s new bogeyman, the temptation to rejoice ….
See details and the possibilities:
At the risk of celebrating someone’s demise, it couldn’t have come at a better time. (late as it is) Be honest, if it were us they would be dancing in the streets. Sorry, I don’t see a good reason to temper my exuberant glee. This article cautions that. And the message their tentacles send to every enemy of ours will be swift.
The important thing to remember is this is absolutely not Obama’s doing. Though like Obama, Putin has a good blame game — probably even better at it. Obama’s regime and Democrats have forgotten what a threat Russia is(has been) — if they ever knew.
However, Obama is as ill suited to correctly deal with Putin and the effects this will cause, as he has been all along. Obama cannot afford another hit on his credibility, while Putin is still riding high on popularity. If Putin seemed out of control before, he’s about to get more unpredictable. The forecast already was a 4.5% shrinkage next year in their economy.