Posted on 11/29/2024 3:54:01 AM PST by marcusmaximus
The Russian rouble has plunged to its lowest level against the dollar since the immediate aftermath of the full-scale invasion of Ukraine in March 2022.
The ruble hit 113 against the US dollar on Thursday. On Wednesday, Russia's central bank announced it would stop foreign-currency purchases to try and strengthen the currency and ease pressures on financial markets.
The ruble has been sliding since late summer, falling by more than a third since August. Oil prices have fallen in the same period, hitting Russia's earning capacity from its most important commodity.
That has piled pressure onto a war economy already struggling under the weight of soaring inflation. President Vladimir Putin has dramatically ramped up military spending over the past 18 months, in an attempt to gain the upper hand in the war in Ukraine.
Defense spending has more than tripled since 2021 and is set to be a record 13.5 trillion ruble ($122 billion, €102 billion) in next year's budget, another huge 25% hike. The country's central bank estimates inflation hit 8.5% this year, double its target. Interest rates are also at record highs, hitting 21% in October.
(Excerpt) Read more at amp.dw.com ...
>> Thanks for sharing your delusions with us here in the real world! Always fun!
You’re welcome. I’m glad you enjoyed that brief dive through the shallow reflective layer of the gazing pool that you and your globalist zeeper friends camp around, into the cold but invigorating waters of real understanding.
Meh. The hyperbole is strong here, if you contrast and compare the West pissing away hundreds of billions per year for "climate justice" shakedowns:
The COP29 Presidency of Azerbaijan today announced the agreement of the Baku Finance Goal (BFG), a new commitment to channel $1.3tn of climate finance to the developing world each year. Success on the COP29 Presidency’s top priority for the UN Climate Summit represents a significant uplift from the previous climate finance goal of $100 billion and will unlock a new wave of global investment. The Baku Finance Goal contains a core target for developed countries to take the lead on mobilizing at least $300 billion per year for developing countries by 2035. This represents a $50bn increase on the previous draft text, and is the product of 48 hours of intensive diplomacy by the COP29 Presidency. It pays special consideration to support the least developed countries and small island developing states, with provisions on accessibility and transparency.
https://cop29.az/en/media-hub/news/breakthrough-in-baku-delivers-13tn-baku-finance-goal
Total and utter madness!
As an exercise and to step away from one-liner sorts of replies, I checked with our banks and our S&L, where we have large enough deposits to be treated very well.
One cannot buy rubles, i.e. exchange and have bank notes, from either Wells Fargo or BofA, and of course not at an S&L. Therefore there is no "official" exchange rate for physical currency. Period. Lots of "rate calculators" but none actually sell the physical currency.
Looking around various sites, I come to think the easiest way to imagine is as ruble versus cent. Thus a gallon of milk in Russia at "300 rubles" sounds like a lot, but thinking in cents, it's about $3.00. Move the decimal point. Rather like the old Italian lira, when prices were quoted in tens of thousands, which looked high until one did a simple calculation. But consumers are often innumerate.
The couple of larger "ship rubles" companies will not insure a package, and one cannot examine before buying, so using an online, uninsured seller would not be prudent.
I've recently bought New Zealand and British currency, and my banks require it 1) be shipped to the local branch, and 2) I pick it up in person and sign for it.
Long answer, but there it is.
As an exercise and to step away from one-liner sorts of replies, I checked with our banks and our S&L, where we have large enough deposits to be treated very well.
One cannot buy rubles, i.e. exchange and have bank notes, from either Wells Fargo or BofA, and of course not at an S&L. Therefore there is no "official" exchange rate for physical currency. Period. Lots of "rate calculators" but none actually sell the physical currency.
Looking around various sites, I come to think the easiest way to imagine is as ruble versus cent. Thus a gallon of milk in Russia at "300 rubles" sounds like a lot, but thinking in cents, it's about $3.00. Move the decimal point. Rather like the old Italian lira, when prices were quoted in tens of thousands, which looked high until one did a simple calculation. But consumers are often innumerate.
The couple of larger "ship rubles" companies will not insure a package, and one cannot examine before buying, so using an online, uninsured seller would not be prudent.
I've recently bought New Zealand and British currency, and my banks require it 1) be shipped to the local branch, and 2) I pick it up in person and sign for it.
Long answer, but there it is.
>> As an exercise and to step away from one-liner sorts of replies...
Careful, FRiend! You can be banned for life for that! :-)
(just kidding, THANK YOU for the leg work and the thoughtful reply.)
They owe almost FORTY TRILLION DOLLARS!!!
Oh no, wait.
That’s not Russia.
You pack up to go fight yet marcus boy? :)
Getting the old ammo out to rock n roll?
no, you’re not.
The Russian reporters attribute the fall of the Ruble to the increase in interest rates accomplished to rein in the inflation that is making food too expensive for many, even most. The result is a reliance on potatoes, the typical food of the serf masses.
That reliance has spread to the extent that the price of potatoes has risen to unaffordability for some and the supply is diminished by the massive increase in demand.
the increase in the official interest rate to 21% translates to an actual rate of 32% for ordinary business loans made to oligarchs that control all the business. They can’t make a profit from such typical day to day transactions so lots of business is gradually ceasing.
So, the Sanctions are having an effect but the war with Ukraine has result4ed in the decline of ordinary business activities that has resulted in a decline in the value of the Ruble that has resulted in nongovernable inflation that has resulted in the decline of ordinary business activities.
That is the current and very widely reported news out of Russia. Not government propaganda but actual news
Chinese Yuan is also collapsing, as well as other BRICS currencies. It has to do with the forseen trade war with the US.
All the while Blinken jibber-jabbered about Maduro in Venezuela only days ago, Maduro hangs on to power and has since 2013. Sanctions and all are the Biden-Blinken game, but whole nations find ways around them. And while Maduro stays on, Biden and Blinken are out of office on 20 January 2025. Think Trump will follow all the Biden strategies? Likely not.
In the same way, the North Koreans cling to a generations' long power over that nation, though we've sought various ways to topple them. And NOBODY chitter-chats about the KPW exchange rate these days, which also cannot be bought from any of my local banks. How long has the current Norks clung to power? Since 2012.
Ditto the Chinese Communists. Based on what one can see, they'll be around after Biden and Blinken are not. Ditto with the EU in the moment, as the Lefties in Europe rage at who? Venezuela? North Korea? China? Even Russia? Most of the European political elite rages against actual conservatives. Like Orban. And Weidel. And LePen. And Meloni. And Farage. AND Trump.
Nothing of the above is an apoligia for Maduro, Kim or Xi, but everything about the above is about the "sanctions" game which seems to be a poor strategy long term.Tariffs might help, but the BIG game in town for us is as you mention:
$ 36,079,371,230,584 and rising FAST.Disclaimer: The above number is already past its "sell by date."
At my local Aldi here in the USA, a gallon of milk went from ~$3 to $3.65.
I haven’t bought beef for months. I’m boycotting it until the big packers are broken up.
I live near the Volga. I’ll catch Putin before he crosses it and throw him back to finish your Zelensky off for good!
Putin is backing the Russia economy and government into a corner. The part of the world not aiding Ukraine can either gouge Russia on energy sales, or cut Russia out of international trade when Russia is mostly a export economy. Putin is 72 years old when the average lifespan for Russian men is 67.6 years. He's living on borrowed time. When Russian leaders die, it tends to throw the government into chaos. Russia is looking at two potential internal crises, which if they happen will hamper their invasion of Ukraine, making a third crisis.
Now Trump is back, knowing through hard experience who his friends and enemies are. That's four potential catastrophes the Russian elites have no control over. The Russian government is not looking forward to Trump's Presidency at all.
"Russian invasions and involvement Afghanistan, Chechnya, Georgia, Africa, Moldova, and Ukraine...." Seems so very accurate. So many tend to get involved in conflicts.
One might think of Iraq, Afghanistan, Sudan, Somalia, Yemen, Libya, Syria, Serbia and Kosovo, and then those various Samantha Power color revolution thingies.... Why, even a Peace Prize recipient tended to get involved.
So much tending. And so much involvement. Quite the way of this world.
Putin says he does not believe Trump is safe after assassination attempts Reuters, 29 November 2024.
Putin sends chilling warning to Trump over his safety as he threatens Kyiv with Oreshnik missile strike Hundustan Times, republished by MSN, 28 November 2024.
Trump cabinet noms, other appointees targeted with bomb threats NY Post, 27 November 2024.
Trump's New Border Czar Receives Death Threats Newsweek, 11 November 2024.
Sanctions forced rich, Russian oligarchs to keep their money in Russia.
Perhaps it is falling because Trump is coming and we're going to drill, baby, drill. But, at least, the propagandists in the press could give credit to where it is due.
Track your rubles, currently at 106.5:
https://www.tradingview.com/symbols/USDRUB/
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