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spyguy

Russia Raises Irs To 17%

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Real interest rate of ~7%

Just goes to show that when an country/economy loses the market then its got a hard battle to fight, which it mainly fights with interest rates.

Just as well nothing like this has ever happened in the UK? A Rolls-Royce economy, cruising through the turbulent economic sea.

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it was 1.5% 2 months ago. Just crazy to see it go up so fast.

Yes, you will not see anything like that panic in the UK. All our Economists and central bankers are highly trained, scientifically proved professionals.

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I think there are some stormy waters for stock markets, globally going ahead. We've been here before with the Rouble and the Thai Baht.

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it was 1.5% 2 months ago. Just crazy to see it go up so fast.

Admittedly it's an extreme set of circumstances, but I wonder if a few UK people already maxed out on a 6x mortgage at 300 year low interest rates are starting to get a bit twitchy this morning?

Nah, probably not.

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interesting that commentators Ive been reading in the last few days say the Saudis refuse to turn the oil taps off. It is also interesting the Russians havent turned theirs off either...One would think they would if they were too concerned about the Ruble.

We appear to be in a war of the suits, Russia is aiming at the Western Banks which will blow up due to Margin calls (paid and unpaid more likely) on oil derivatives, while our side hope the collapse of the Ruble will be victory for us.

I think we have badly miscalculated....

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Bank Runs and food hoarding taking place as I type....

http://uk.businessinsider.com/price-inflation-in-russia-as-people-hoard-food-cash-2014-12?r=US

Going out on a limb an extreme action would be war - it serves to unite countries in times like these.

I understand that if OPEC drive oil to $50, Putin will have just one year of reserves left to fund the Russian State; there is going to be a lot of unhappy bears when they don't get paid.

The proverbial old Chinese "May you live in interesting times" curse springs to mind.............

A defacto war with Russia is already underway....

http://www.bbc.co.uk/news/world-middle-east-30289546

Why is Saudi Arabia using oil as a weapon?
Edited by geezer466

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What's kind of interesting is as far as I can tell, that huge hike has made sod all difference to the exchange rates. They are continuing downwards.

If the rate hike was supposed to be a mighty show of force its failed dismally.

Has ramping up interest rates to this level ever stopped a currency from declining? The speculators clearly smell profit.

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Admittedly it's an extreme set of circumstances, but I wonder if a few UK people already maxed out on a 6x mortgage at 300 year low interest rates are starting to get a bit twitchy this morning?

Nah, probably not.

They'd have to be watching the news or reading a paper. Seems unlikely.

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http://

www.bbc.co.uk/news/world-middle-east-30289546

Why is Saudi Arabia using oil as a weapon?

Thank goodness there's no contribution to the falling oil price due to a fall in demand from the West and China etc etc.

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What's kind of interesting is as far as I can tell, that huge hike has made sod all difference to the exchange rates. They are continuing downwards.

If the rate hike was supposed to be a mighty show of force its failed dismally.

Same here

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