RWalls
12-22-2014, 08:07 PM
http://www.businessinsider.com/afp-for-russias-economy-the-worst-is-yet-to-come-2014-12
Russia’s financial markets are reeling after recent volatile economic conditions. Western sanctions and the oil crisis have caused the ruble to plummet. In a failed attempt to bolster consumer confidence, the central bank hiked key interest rates by a massive 6.5 percent. The ensuing bank panic crashed financial websites as users tried to withdraw their funds. Consumers mobbed retailers to get in front of impeding price jumps. At Russia’s annual year-end press conference, President Vladimir Putin attempted to encourage the public. He did acknowledge difficult financial times lie ahead. Major retailers are shuttering or limiting sales in the region to avoid losses. Analysts predict that inflation will jump to 15 percent in the future. Imported foods and consumer goods are becoming luxuries due to the 50 percent loss in value against the dollar.
The central bank predicts a steep 5 percent economic decline if oil market conditions remain static. Economist William Jackson of Capital Economics foresees that the banking industry will soon feel the effects of this crisis. This comes at a time when Russia’s financial sector is vulnerable due to sanctions imposed by the West over recent political decisions. The central bank has publicized its actions to help the economy’s recovery while Russian officials approved bills to recapitalize the banking industry. Contrary to analyst Chris Weafer’s opinion, Russian citizens fear that economic conditions will return to those of the 1998 financial crisis.
Is this a planned financial attack with OPEC on the US? Whats next for the US? For Russia? A Russian oil tycoon is warning that OPEC’s decision is to strike against the American oil market, which becomes unprofitable at $70-80 per barrel. Are we next on OPEC's radar? This is all the more reason for the US to become energy independent and an exporter.
Russia’s financial markets are reeling after recent volatile economic conditions. Western sanctions and the oil crisis have caused the ruble to plummet. In a failed attempt to bolster consumer confidence, the central bank hiked key interest rates by a massive 6.5 percent. The ensuing bank panic crashed financial websites as users tried to withdraw their funds. Consumers mobbed retailers to get in front of impeding price jumps. At Russia’s annual year-end press conference, President Vladimir Putin attempted to encourage the public. He did acknowledge difficult financial times lie ahead. Major retailers are shuttering or limiting sales in the region to avoid losses. Analysts predict that inflation will jump to 15 percent in the future. Imported foods and consumer goods are becoming luxuries due to the 50 percent loss in value against the dollar.
The central bank predicts a steep 5 percent economic decline if oil market conditions remain static. Economist William Jackson of Capital Economics foresees that the banking industry will soon feel the effects of this crisis. This comes at a time when Russia’s financial sector is vulnerable due to sanctions imposed by the West over recent political decisions. The central bank has publicized its actions to help the economy’s recovery while Russian officials approved bills to recapitalize the banking industry. Contrary to analyst Chris Weafer’s opinion, Russian citizens fear that economic conditions will return to those of the 1998 financial crisis.
Is this a planned financial attack with OPEC on the US? Whats next for the US? For Russia? A Russian oil tycoon is warning that OPEC’s decision is to strike against the American oil market, which becomes unprofitable at $70-80 per barrel. Are we next on OPEC's radar? This is all the more reason for the US to become energy independent and an exporter.