zlacker

>>colone+(OP)
When a currency is devaluating but interest rates are low, the banks can borrow at low rate, sell rubles for dollars into sliding market, wait for ruble to slide more, then repay the loan with cheaper rubles and make a big profit. The trouble is they also accelerate the slide, courtesy of the low rates. The central bank rate increase was likely done to head off that particular danger. Of course there are many other factors pressing the ruble down as well, which central bank can't control, but at least they are trying to prevent worseing the situation with their own hands.

Long term high interest rates plus high cost of import supplies will likely strangle the economy though. Increased demand for domestic goods due to higher import prices is a good thing, but one needs capital to operate most businesses. When interest rates are high you can't borrow, and when political situation is flaky fewer people will want to buy equity.

>>DenisM+ab
Well in the Bloomberg video (new link) the analyst says that projected "growth" for the Russian economy next year is -4% (so, not growth, but a contraction of 4%).

At 14% interest rates there's basically no way to afford capital investments. Unless you are buying a printing press to print more money.

>>Kadin+Ub
I feel powerless over the ignorant political movement of people who, from my PoV, act like drones controlled by the media firing their ammunition and causing collateral damage. Be it Pro-/Contro Ukraine/Russia/America or Israel. We were good to each other, helpful and understanding and just because of a few leading politicians who can't go and fight each other on their own (without an army of soldiers dying for them), all of our lives shall suffer? I'm surely too blinded by the delusions of world-peace to come to grasp how people really are, but I hope to be misunderstanding before I give up my faith and let them destroy what we have build together.

I fear forums whom I enjoyed becoming places of distrust, hatred and battle space against the other political 'side'. Where admins and moderators use their given powers to torture the unwanted. I have only recently seen an Isreali woman marrying an Iranian man on television loving each other. And don't think that all people agree to what the politicians have to say.

We are better. If all fails, I still believe that: “Chaos often breeds life, while order breeds habit.” – Henry Adams Regarding 'Chaos' - this seem like a good read: http://www.halexandria.org/dward165.htm

Leading countries co-operate to limit capital-flow to Russia and this albeit sounding implausible to me, has direct influence on the economic liquidity. Implausible because I don't know how it would be possible for countries and companies to co-operate on such a scale on a capital market, where most notably personal profit leads the market over political decisions. I would be much more curious on which companies initiated the financial war and how they orchestrated their strategies, than the actual outcome, from the PoV of a mathematically and technologically fascinated guy.

http://i.imgur.com/dnAWMT2.png

Thank you for reading so far.

>>Fracta+Em
If Putin pulls back from Ukraine, they'll unroll the sanctions post haste. It's really not that hard.

The problem is $60 per barrel oil. Putin can't undo that.