Desperate measures, and they looked so. After the rubble tumbled 11% against the dollar the day before, Russia raised its lending rate from 10.5% to 17% (following a 1% hike). The result, an all out panic and a 20% one day drop. The attempt was clearly to conserve the dollars in reserve necessary for state enterprises to pay back loans that cant be refinanced due to sanctions. The effect will doom the economy (job production and consumer spending) next year, from the predicted 5% decline in GDP to several times that. I did not use the expression STATE ENTERPRISES inaccurately. WE ARE NOW OFFICIALLY BACK TO THE USSR AND A STATE CONTROLLED ECONOMY.
Posted on: Tue, 16 Dec 2014 13:05:00 +0000
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