Posted on 11/12/2008 2:30:56 AM PST by TigerLikesRooster
Russia lifts rates to 12pc to save rouble as crisis deepens
Russia's central bank has raised interest rates a full percentage point to 12pc to prevent a collapse of the rouble following a day of mayhem on the Moscow markets, prompting concerns that the financial crisis may be spiralling out of control.
By Ambrose Evans-Pritchard
Last Updated: 8:47AM GMT 12 Nov 2008
The surprise move last night came after the authorities had spent $7bn of foreign reserves in a matter of hours trying to defend the currency, at a lower level. The central bank has now spent $84bn of its reserves over the last month.
"The devaluation has begun," said Lars Christensen, Russia strategist at Danske Bank.
"The rouble has fallen out of its basket against the euro and the dollar. Russia is facing a serious confidence crisis and this could set off a self-fulfilling panic. What is clear is that economy is slowing drastically."
Chris Weafer, strategist at UralSib, said there were echoes of the 1998 crisis. "If people lose confidence, we could have a massive run on the banks as we saw twice in the nineties: then the game is up,'' he told Bloomberg.
Russia is battening down the hatches for a deep slump. It has downgraded is oil forecast to $50 a barrel next year, a level that will play havoc with the state finances. Expecting trouble, the Kremlin has mobilised the police to crush dissent.
(Excerpt) Read more at telegraph.co.uk ...
Ping!
“Expecting trouble, the Kremlin has mobilised the police to crush dissent.”
this will be something to watch
Americans used to think things like this could never happen here- about 60 million happy Obummer voter-campers still have no clue
The biggest wave will crash on our shores in three...two...
we are facing very scary times.....when economies go down, friends can become enemies very quickly...and the world knows though it won't admit it that zero is a arrogant hitler wannabe....
There are a few positive results of the world financial crisis.
Hey Russia, Iran, And so many other countries having real trouble with their economies, tough.
Hey Chi-coms turds, love to see a new Boxer rebellion within your borders.
Is this crisis a Rove and Bush plot to throw these crap countries in to the garbage cans?
If it is, it's been managed without the finesse that Reagan and Bush demonstrated. This plot has come perilously close to destroying our own economy, and may actually have done so.
I'm just glad that I have another ten productive years left.
Obama needs to steal this new speak “Anti-crisis groups”.
With the rest of the world’s currencies crashing, will we see a rush to US dollars?
Yes repercussions will be significant. But the U.S. gets little of its oil from the mid-east compared to Europe and Japan.
Here we will feel it but not like they will in those places.
Mexico, Canada, Nigeria, Venezuela, Alaska and right here is wherewe get most of our oil.
Iran needs an ass whoopin and to have its nuke program destroyed. Else it is Europe that will suffer as well as those other Persian Gulf countries.
Still the Euroweenies sit and do nothing.
Maybe Czar Putin and his toy poodle Medvedev can gobble up some more territory and stabilize the currency.
If actions taken by Israel throw Europe and Japan into severe crisis, look for our alliance with them to take a major turn for the worse. Either the US repudiates Israel, unlikely under the current administration but apparently very likely under the next, or the US will suffer retaliation, economic, political and military. The “perfect storm” keeps on playing out.
I’ve wondered who will fare the best, under this looming collapse, and it’s not hyperbole to call it a collapse. I keep coming back to the old survivalist “food, fuel and firearms,” the three F’s thing. We’ve got the food and the firearms in the US, but are dependent upon external sources for, what, over two thirds of our fuel needs? Who is better set than the US in this regard? If there is another country that fits those criteria, look for that country to be the source of attacks against us.
Attacks yes. But no other country has the heavy lift capabilities to invade us.
Also GOD help any third world craphole like russia if they hit us and it can be proven.
Tank tracks did up dirt.
Under dirt, gold.
Gold pay off debt.
Russia happy!
Invade For Gold And Motherland!
(something like that)
It was never all American-made. The Eurozone and Russia were levered up a LOT higher than American banks ever were.
When the crux of the problem is too many junk loans and not enough liquidity, raising the interest rate makes more sense than dropping it.
In the USA today money in savings accounts is losing value.
Interest paid is not enough to keep up with rising costs.
And cheap money just encourages more undersecured lending.
think back to the russian invasion of south ossetia, abkhazia, and georgia.
capitalism with the flu has done more than u.s. military intervention would be allowed or could do.
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