Russia downgraded to junk status for first time in decade

theguardian.com ^ | 26 January 2015 | Jill Treanor

[Berlin_Freeper]

Russia has been downgraded to junk status for the first time in a decade due to the collapsing oil price, the tumbling value of the rouble and sanctions imposed because of its intervention in Ukraine.

Ratings agency Standard & Poor’s said the downgrade was caused by the country’s reduced flexibility to cut interest rates and a weakening of the financial system.

The ratings agency said the Central Bank of Russia “faces increasingly difficult monetary policy decisions while also trying to support sustainable GDP growth”.

“These challenges result from the inflationary effects of exchange-rate depreciation and sanctions from the west as well as counter-sanctions imposed by Russia,” the agency said.

[Berlin_Freeper]

Ruble Deathwatch(™)

[Berlin_Freeper]

Russian midsize lender SB Bank said on Monday that clients would be unable to withdraw money,

[Berlin_Freeper]

Russia sought to use spies to get more information about high-frequency trading in a potential bid to destabilize the market, according to a court document released by the U.S. government on Monday.

The U.S. government on Monday made one arrest and charged two other diplomats with spying on behalf of Russia.

[Berlin_Freeper]

Mariupol attack shows Russia wants to seize more of Ukraine: U.S.

[MeganC]

The Russians didn’t really think they could invade another country and not suffer any consequences for it, did they?

[GeronL]

“Tighten your belts for the Motherland, comrade!”

pretty much what their government is saying these days

[GeronL]

The problem is that the EU and Obama very much want to end the sanctions if Russia would just quiet things down a while.

[Berlin_Freeper]

"This is just the beginning of the fall for the Russian economy," analyst Sergei Aleksashenko, a former deputy head of the Central Bank, told the Echo of Moscow radio

[Veggie Todd]

Well, if we’re supposed to buy low and sell high, when do we start buying?

[MeganC]

Obama does not want to end sanctions so long as the Russians are engaging Obama’s moslem friends in Chechnya.

[Berlin_Freeper]

"This is just the beginning of the fall for the Russian economy,"

[sagar]

“Well, if we’re supposed to buy low and sell high, when do we start buying?”

When Russia hits the zero.

[Berlin_Freeper]

Germany's foreign minister hinted at further sanctions on Russia on Monday, saying the European Union would have to react if pro-Russian separatists launched a broad offensive on the east Ukrainian port city of Mariupol.

[Krosan]

Here is a chart with track record of Ruble vs Dollar since 1897 (during the Soviet period the rate was not convertible). That is trillion times drop in value. The answer to your question could be that there is almost never a good time to own rubles.

[servantboy777]

>>The Russians didn’t really think they could invade another country and not suffer any consequences for it, did they?<<

The saga has not ended. Gotta strange suspicion the Russians have more up their sleeve.

[GeronL]

Obama and Putin are in league

Putin has a lot of Muslim buddies, like Iran

[backwoods-engineer]

Russia downgraded to junk status for first time in decade

So, who's taking precautions and preparations for a nuclear war with Russia?

Yes, I'm serious.