It was always going to happen. Emergency rate hikes just make a situation worse by bringing attention to an already bad position.
The new American tactics of simply excluding countries from the world's financial markets are far more effective than the old sabre-rattling threats of yore, especially when the major corporate and bank entities of the country in question have spent the last 15 years loading up on US$ debt. If Russia is determined to stay the current course then it will have to spend its reserves on either bailing out its companies as they fail to roll over their US$ debt or defend its currency. But probably not both - there simply isn't enough cash available.
It's going to be a long and painful (for Russia's people, if not for him) death for Putin's dream of reinstating the USSR.
No comments:
Post a Comment