Russian ruble about to cliff dive

The Russian government has given up trying to prop up its sagging ruble, and will instead do a “dirty float”

“A dirty float would look like it was a free market but the central bank would still have a measure of control”

By doing this, their central bank has already admitted they’ve lost control.

Anyway, we love the concept of making something look like it is a free market. We have no doubt that the ruble will slowly commence its climb to attain the phenomenal exchange rate of the Zimbabwean dollar’s $100 trillion/$1 US. At least this will allow the state to inflate all its problems and while a repeat of Russia 1997 is almost guaranteed, it will let the country have a fresh, post bankruptcy start in a sub-$50 oil world.

All of this will be made worse by the oligarchs / mafia moving every asset they can out of the country.

One comment

  1. What you say is true. Many Russians are very concerned about the falling ruble and we have noticed a rapid acceleration in their trying to purchase assets outside Russia so as to convert to other currencies.

    закон и бизнесс США

Comments are closed.