Posted on 01/06/2015 5:30:49 AM PST by elhombrelibre
Russia's currency on Tuesday slipped 3% to below 63.5 rubles to the dollar as falling oil prices threaten to unwind the government's efforts to defend the currency.
The collapse of the ruble is causing price inflation throughout Russia. Inflation is running at 10%, according to The New York Times. Russian shopkeepers can't update their price lists fast enough and are telling shoppers to come back later when they've put up more-expensive price tags on staple goods. The most extreme example? It's leading to a cheese shortage, The Times says:
A variety of goods — from basmati rice to imported hard cheeses — have simply vanished, leaving consumers with fewer and less desirable choices.
Sausages are in short supply, too, the BBC says:
It's not just inflation that is influencing the festive shop in Russia. So are the "anti-sanctions" Moscow imposed on the West earlier this year. As a result, certain imported products which may have graced some new year tables here in the past are no longer available: like French cheese, Norwegian salmon, German sausage.
(Excerpt) Read more at businessinsider.com ...
The question that comes to mind is how does a wounded leader (Putin) maintain the appearance that he is the victim and not the source of his their pain?
I just read a link that suggested that he will be asked to retire.
I see Putin taking a more dramatic stance and attacking his neighbors for their unnecessary embargos.
I can only pray I am wrong.
“A variety of goods — from basmati rice to imported hard cheeses — have simply vanished, leaving consumers with fewer and less desirable choices.”
White Wine and Brie Crowd Hit Hardest?
When those shortages happen in, ‘The People’s Republik of Madistan’ the ‘Haves’ are gonna be in a panic! Think I’m kidding? ;)
Snobby Commies Hit Hardest! Good.
Same way Castro does, by blaming the USA.
Ukrain was the bread basket once apon a time.Now that the Soviet Union is gone and Putin is attacking Ukrain with his puppets that’s even less food on the Russian table.
They're OK with burlap toilet paper and no light bulbs - but the lack of sausages could be Putin's downfall....
Putin took care of them. He fixed the price of vodka. “Let them eat vodka.”
http://www.reuters.com/article/2015/01/06/us-russia-crisis-markets-idUSKBN0KF0SQ20150106
(Reuters) - The ruble fell more than 4 percent on Tuesday in thin, volatile holiday trading as oil prices hit a new 5-1/2-year low.
By 1003 GMT (0503 ET), the ruble was down 4.5 percent against the dollar at 63.55 rubles RUBUTSTN=MCX and 3.9 percent weaker against the euro at 75.52 EURRUBTN=MCX.
Commentators said weak oil prices, which slumped yet again on expectations of a supply glut, would continue to weigh heavily on the Russian currency, making it extra vulnerable to sharp moves in thin trade.
"USD/RUB in the current circumstances is in a most dangerous position, especially since the majority of Russian traders have yet to return from the New Year holidays," Forex Club senior analyst, Alena Afanasyeva, wrote in a note.
30’s Germany = today’s Russia?
Of course, it’s not that bad, but like then the consequences of inflation are going to be profound.
I’ve said for a couple of years now that despots know they have until Jan of 2017 to do whatever they plan on doing. It’s quiet now not because they are trying to get along and do this civilized. Rather, it is because they are stalling and planning for when they are ready.
It’s one of many reasons for my tag line.
I find it interesting that all the foods they say they lack are imported.
IOW, the ruble may be a perfectly good internal currency.
I think you’re right. And this is only the beginning. It’s going to get worse for food. And Putin’s cronies will try to take maximum profits with these shortages.
They could revert to barter and trade. For instance, for a chicken, a Russian woman might offer her affections.
They survived 70 years of Soviet Communism.
I expect the Russian people can survive a few months without Basmati rice or imported cheese.
At first I read it as “RUBBLE” but I guess it makes sense either way.
And Putin is a man who knows how the communist party was able to stay in power for 70 years. Good point. Good point indeed.
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