Russian central bank sharply hikes rates (from 16%) to 18%, promises further tightening

13 comments

1. Let’s hope inflation does not react. 20% in September would be nice to see.

2. This just in: Russian economy still suffering disastrous effects of the failed Russian invasion of Ukraine that is now simultaneously draining the work force and Russian treasury.

   Central Bank of Russia responds with more protectionism that has them on the road towards a central African economy from the 1990’s, complete with rising inflation AND rising interest rates, all but ensuring that Capital Investors will send their money out of country or into multinational corporate stocks.

   This, of course, may result in those same investors experiencing technical difficulties with their high rise apartment windows.

   But it won’t stop the money from leaving Russia.

   And China is all too happy to turn Russia into a vassal state.

3. You know, double digit central bank rates are a well known indicator for a healthy and stable economy.

4. The stated interest rate may be unique in Russian statistical declaration, as it is verifiable and certain They still insist their economy is growing and inflation is 8%, and for some reason, western news outlets accept and report these obvious falsehoods without rebuttal. Here’s a few truth bombs:

   -The cost of potatoes has risen 91% already this year. Potatoes are not an import item, and there has been no indication of blight or any other production disaster. This just doesn’t happen with 8% inflation.

   -Nobody raises their interest rate 2 full percent to fight single digit inflation. Nobody. Ever.

   – A growing economy doesn’t suddenly halt the export of a value added economy (i.e., gas, diesel and other fuel products) if the economy is producing efficiently. Now the Ukrainian drone program may have something to do with the shortfall, but most refineries are well beyond attack range, yet even with the export ban, gas prices are up a reported 35%.

   – And its about to get worse. Wage increases to common people are an incredible stimulus to spending in normal times, and even more so when the wage earners know the value of the currency is approaching free fall- when money is worth less tomorrow than it is today, and you can’t access inflation proof currency like Euros, or even Yuan, you will buy anything, just to retain the value.

5. Lmao, economists predicted this literally a week ago. Russian economy go BRRRRRRRR.

   This results in a few things:

   Weakening of the ruble

   Weakening of international investments into Russia

   Even higher inflation (because the Russian government is buying up all the materials that civilians are using for the war effort, therefor driving up the prices. Problem is Russian civilians still need those materials so they pay the higher prices to buy them, further driving up inflation.)

   Higher payouts to incentivize Military Recruitment

   Only problem is that this all cannot happen fast enough. Fuck Russia. Fuck Putin. Fuck his enablers, may you all drown in your own excrement.

6. 1990’s here we come.

7. Probably the main reason the West doesn’t get directly involved. They’re betting on economic collapse forcing regime change like in Soviet times. Predicting the timing is the difficult part.

8. A new Joe Blogs YT video on this immediately.

9. Following the USSR collapse script pretty closely.

10. Watch after December. The last, large Russian gas to Europe contract expires and won’t be renewed. This is going to add to their troubles in a big way.

11. Yum yum yum give me that despotic rot

12. Holy fuck.

13. It’s very simple. Would you rather have 100,000,000 rubles or 100,000 usd. Ask anyone outside of Russia, and you’ll get a good idea of the true value.