Capital outflow crisis does not exist. Companies are solvent and in the process of repaying debt. Contrary to doom-mongering from outside the country, in Russia there is perfect calm
Following the prophecies of doom that were going the rounds in December the rouble appears to have stabilised, the Central Bank's reserves are intact and the government looks calm and in control.
This appearance of calm appears to have annoyed some of the government's Western critics.
The economist Anders Aslund sees it as evidence that "Putin is in denial".
Most remarkably, the Economist sees the government's "Zen-like calm" as "proof" "the economic crisis has officially arrived".
This rather begs the question of what the Economist would make of signs of panic. Would that be proof the crisis is officially over?
Nobody denies Russia faces a difficult year. The sanctions are obliging Russian companies to pay off their foreign debts at the same time as the dollar price of oil - Russia's main export commodity - has halved, making repayment more difficult.
The rouble as a result has come under serious pressure and has halved in value. Investment and spending as a result are being cut back.
The rouble's fall is causing inflation this year to be significantly higher than it has been over the last few years or that the authorities had planned for. This in turn will cause real incomes to drop.
Complete story at - Despite western propaganda, Russia is not in economic crisis -- Puppet Masters -- Sott.net
Following the prophecies of doom that were going the rounds in December the rouble appears to have stabilised, the Central Bank's reserves are intact and the government looks calm and in control.
This appearance of calm appears to have annoyed some of the government's Western critics.
The economist Anders Aslund sees it as evidence that "Putin is in denial".
Most remarkably, the Economist sees the government's "Zen-like calm" as "proof" "the economic crisis has officially arrived".
This rather begs the question of what the Economist would make of signs of panic. Would that be proof the crisis is officially over?
Nobody denies Russia faces a difficult year. The sanctions are obliging Russian companies to pay off their foreign debts at the same time as the dollar price of oil - Russia's main export commodity - has halved, making repayment more difficult.
The rouble as a result has come under serious pressure and has halved in value. Investment and spending as a result are being cut back.
The rouble's fall is causing inflation this year to be significantly higher than it has been over the last few years or that the authorities had planned for. This in turn will cause real incomes to drop.
Complete story at - Despite western propaganda, Russia is not in economic crisis -- Puppet Masters -- Sott.net
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