Russia took its biggest step yet to shore up the ruble and defuse the currency crisis threatening its stricken economy.
In a surprise announcement just before 1 a.m. in Moscow, the Russian central bank said it would raise its key interest rate to 17 percent from 10.5 percent, effective today. The move was the largest single increase since 1998, when Russian rates soared past 100 percent and the government defaulted on debt.
http://www.bloomberg.com/news/2014-1...e-decline.html
The oligarchs that run the west are felling the ruble with attacks on multiple fronts, from drastically reduced oil prices to sanctions and many other methods seen and unseen. This is making a lot of Russians make runs on their banks to get their holdings out before the end comes. If the western oligarchs are successful in ruining the Russian economy it may make sense to expect Russia to strike the western oligarchs with the power they have remaining, meaning nuclear, biological, and chemical weapons.
Imagine your bank runs out of cash and has to resort to the bank on top of it that it gets its money from. So your bank calls up its bank and says hey can you loan me a few million? Your bank's bank says sure, let me set you up. Your bank says oh yeah what interest rate? Your banks bank says 17 percent. Your bank says wtf, last time I got a loan from you it was at 10 percent! I couldn't justify a loan at 10 percent wtf how can you expect to take a loan at 17 percent? So your bank doesn't take the loan, you can't get any money out of your bank because it doesn't have any, your account has been absorbed by your banks creditors, you lose, good day sir. This is what Russians are facing right now today. This is what we will face if/when the fed starts hiking rates instead of quantitative easing. But in Russia's case don't expect them to take it silently.
Apparently last night Putin tried to talk some sense into the Euroligarchs, dunno if he got anywhere, but this is a stupid thing for Europe to play along with the western oligarchs since a lot of Europe gets a major portion of its energy from Russia. Also there's the Fulda gap, through wich thousands of Russian tanks could flood into Europe if the worst comes to be. This would probably be in conjunction with a Russian cruise missile strike on our leadership, mil and civilian, from subs off our coasts, making the cruise missiles flight times very short. Just some fun thoughts for you.
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