Friday, December 26, 2014

The Russian Economy

The economic news out of Russia this week was not good. This piece in The Telegraph details how the Rouble (Ruble?) is now worth just about half of what it was worth against the US dollar from just a year ago. The damn has broken and now the Russian economy is worth in real terms a little less than that of the State of Texas or half of that of California. Put another way - the Russian economy is now worth less than Google. "A Russian downgrade to junk is just a matter of time."

Who could have seen this coming? Well 9 months ago I smelled a rat.

The Russian moves in the Crimea and Ukraine both make sense in the hindsight of a Putin government acting certain ways because they were basically broke.

I wonder how the Russian people feel about that $51 billion Putin spent on the Sochi Winter Olympics now?

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