The Kremlin's money managers reacted gently to the dive in the value of the largest country in the world's currency. The beleaguered rouble has seen its value halved in the last 2 weeks. This will certainly cause ripples of despair across the Steppes and in Siberia. Since Russya leans heavily on energy as a source of income and to support sovereign wealth, the global glut and price decline will certainly put Russya into depression-type economic conditions.
Pensions in Russya will take a big hit, given they reflect the value in the rouble. It follows that less income among that key group will flow in diminished amounts to the sectors reliant on consumer spending. And then, we have Mr. Putin and his most recent troubles.
British judge Wren released his report on the murder of Alexander Litvinenko on Thursday, citing the obvious involvement of 2 Russyan agents, the head of the FSB Intelligence Service, and the Kremlin in the person of Vladimir Putin. Prime Minister David Cameron says that actions to consider concerning the disposition of charges against Russya will be fully examined, and could include further sanctions on top of those already imposed as a reult of Russyan takeovers in Crimea and Ukraine.
Mr. Putin wants to play rough; get ready for some international rough and tumble as the largest country in the world takes it on the chin. It seems only right that banking moves deserve the first consideration. All the rest of the legal, political, military moves have no practical result. However, the financial restraints have immediate and far reaching effects. Without connection to international funds and banking support, the national economy is severely restrained and growth essentially ceases in all sectors of the economy.
Welcome, Vladimir, to globalization alla 2016.
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