More Bad News for Russia

[AkMike]

Forty Percent of Russians Don't Know Why Ruble's Value Is Plummeting
The Moscow Times
Oct. 10 2014 20:00
Last edited 20:02

Maxim Stulov / Vedomosti


As Russia's ruble hemorrhages value, more than 40 percent of Russians are unable to explain why the currency is depreciating, even as the majority admit that it is bound to impact their lives, a poll published Friday showed.

The ruble continued its months-long slide on Friday, falling 0.6 percent against the U.S. dollar by evening. The ruble has collapsed more than 20 percent against the dollar this year under pressure from a plunge in oil prices, a strong dollar and Western sanctions over the war in eastern Ukraine.

But when Russian citizens were asked what was behind the currency's fall, 41 percent couldn't provide an answer, a study by state-run pollster the Public Opinion Foundation found.

Of 1,500 respondents, 23 percent blamed United States and European Union sanctions against Russia for pushing down the ruble.

Another 10 percent pointed to the war in eastern Ukraine; 8 percent blamed problems in the Russian economy, which is running close to zero growth this year; and 6 percent said spoiled relations with the West were responsible.

Only 5 percent pointed to the falling oil price. Brent oil was below $90 dollars per barrel on Friday, down from a high of $113 in July.

Nonetheless, a majority of respondents expect to be affected: 41 percent said they believe changes in the ruble exchange rate will have an "acute" impact on their lives, while another 20 percent anticipate a "weak" impact.

The survey was conducted in 100 towns and cities across Russia and had a margin of error not exceeding 3.6 percent.

http://www.themoscowtimes.com/article/509267.html

[AC]

Only 5 percent pointed to the falling oil price. Brent oil was below $90 dollars per barrel on Friday, down from a high of $113 in July.
http://www.themoscowtimes.com/article/509267.html

Looks like it will drop even more, which is usually good for the US economy, and very bad for Russia's:


http://www.msn.com/en-us/money/money/cramer-oil-hit-by-perfect-storm/ar-BB9eoxV

[AC]

BTW, you watch your economy (which is going South)

The US economy has far more resiliency than the Russian economy.  Let's wait and see what happens on November 4th.  There is pent-up demand for work to be done, we just need a Congress which will let it happen.


http://www.msn.com/en-us/money/markets/crumbling-us-fix-seen-in-trillions-of-dollars-of-global-money/ar-AA6QWza

[Gator]

BTW, you watch your economy (which is going South)

Yes, sell all your assets, and exchange all your dollars for rubles. 

[Doll]

Yes, sell all your assets, and exchange all your dollars for rubles.

Actually, it is the best time to do it, especially for the ones who want to buy real estate property in Russia.

[sleepycat]

Actually, it is the best time to do it, especially for the ones who want to buy real estate property in Russia.

If you believe that the Rouble has already bottomed out and will rebound soon.

Also isn't there some proposed new law in Russia about giving the government the power to seize foreigner's assets to compensate Putin's cronies for their losses? With this sovereign risk why would any individual bother to invest in real estate in Russia?

[Doll]

If you believe that the Rouble has already bottomed out and will rebound soon.

Also isn't there some proposed new law in Russia about giving the government the power to seize foreigner's assets to compensate Putin's cronies for their losses? With this sovereign risk why would any individual bother to invest in real estate in Russia?

Banks still do transactions.

[sleepycat]

The Kremlin must be really p*ssed off with the Saudis for tanking the oil price.
Too bad there aren't any Russian speakers living in Saudi Arabia for Putin to stage an invasion protect.

[AkMike]

Actually, it is the best time to do it, especially for the ones who want to buy real estate property in Russia.

Why in the world would any sane person want to buy property in a land controlled by a Huilonista?

[Anotherkiwi]

Let's wait and see what happens on November 4th. 

November 4th is Melbourne Cup day.  Nothing else that happens in the world that day matters at all. 

[AC]

The Kremlin must be really p*ssed off with the Saudis for tanking the oil price.

The Saudi's claim that they just want to maintain market share at a time when oil is plunging all over the World, so they are looking for new customers to do just that.

I think it has more to do with the USA becoming more of an oil producer than in years past. 

I doubt if Obama was smart enough to think of getting them to do this; but you never know.  He (Obama) clearly blamed Putin for upsetting the fraternity of peaceful nations by annexing Crimea etc. when he gave his speech in France commemorating the actions of the US military and allies during WWII.

[sleepycat]

It seems the average Russian citizen thinks being subjected to crippling sanctions will be good for their country...

http://news.yahoo.com/majority-russians-western-sanctions-help-economy-poll-105156381--business.html

[Doll]

It seems the average Russian citizen thinks being subjected to crippling sanctions will be good for their country...

http://news.yahoo.com/majority-russians-western-sanctions-help-economy-poll-105156381--business.html

Sanctions have a lot of positive for Russian economy.

[fathertime]

It seems the average Russian citizen thinks being subjected to crippling sanctions will be good for their country...

http://news.yahoo.com/majority-russians-western-sanctions-help-economy-poll-105156381--business.html

Well we shall see if the sanctions put Russians in a position where they have to be more self-sufficient.  They have an enormous amount of resources, so if they use what they have, the sanctions could ultimately benefit them in the respect that they 'learn to fish'.  The boomerang continues though, as our markets are set to open down once again.   


Fathertime! 

[sleepycat]

Sanctions have a lot of positive for Russian economy.

Such as?

[AkMike]

Such as?

They've lost weight because of the food import ban.
Because the prices have risen and the 'rubble' has fallen they eat less.

[Doll]

Such as?

Well we shall see if the sanctions put Russians in a position where they have to be more self-sufficient.  They have an enormous amount of resources, so if they use what they have, the sanctions could ultimately benefit them in the respect that they 'learn to fish'.  The boomerang continues though, as our markets are set to open down once again.   


Fathertime!

[Doll]

They've lost weight because of the food import ban.
Because the prices have risen and the 'rubble' has fallen they eat less.

Russia is a huge country with a lot of food PLUS there are China and ALL the Asian countries what will be happy to sell food to Russia.
Like we need Polish apples!
HAHAHAAAA

[Doll]

They've lost weight because of the food import ban.
Because the prices have risen and the 'rubble' has fallen they eat less.

My son lives in Russia, I am on Skype with him daily.
They are eating same way.

[Doll]

Russia now has many new contracts with different countries including Belorussia, many Asian countries and Latin America.
Read the news, guys
 

[sleepycat]

But for example are the substitutes really as good as real French cheese or Belgian chocolate?

Well we shall see if the sanctions put Russians in a position where they have to be more self-sufficient.  They have an enormous amount of resources, so if they use what they have, the sanctions could ultimately benefit them in the respect that they 'learn to fish'.  The boomerang continues though, as our markets are set to open down once again.   


Fathertime!

Is it really that easy for a country that had no previous experience in manufacturing a particular product, to make that product from scratch and have it nearly as good quality and price competitive as made by another country that specialises in making that product? You know, the concept of specialisation?

[Doll]

But for example are the substitutes really as good as real French cheese or Belgian chocolate?

Is it really that easy for a country that had no previous experience in manufacturing a particular product, to make that product from scratch and have it nearly as good quality and price competitive as made by another country that specialises in making that product? You know, the concept of specialisation?

Sleepycat, Russia had this experience in 1998 when we had default. Ruble dropped 4 times (TIMES)
It was a good wake up call and Russia started producing many more things.
Same is happening now.

[Doll]

Forgot to cry over French cheese and Belgian chocolate - I am not sure if I've ever tried this chocolate and I don't care for French cheese.
What I am implying is- in the situation like this Russian don't care. Like I said before, we will eat dirt but stay proud.
This is what you will never understand.
Also, read history of Russia. It has been never conquered (after Mongolians)

[Wayne]

My wife says Russian chocolate is no good compared to Ukrainian chocolate. She also thinks Ukrainian beer is better than Russian.
 
Your talking about buying land in Russia as an American--but is that even possible? I know in Ukraine you can buy a flat or land as long as it is not farm land.
 
Also, it is typical to list the price for land in USD.

[sleepycat]

As Doll suggested they'll rather eat dirt and be proud so whether Russian chocolate taste any good seems irrelevant!

Plus with the new proposed law giving the government power to confiscate foreigner's assets to compensate Putin's cronies, why would anyone risk their money to buy real estate in Russia?