Is The Ruble Tanking?
 

http://www.washingtonpost.com/world/...y.html?hpid=z1

33 rubles to the dollar at the beginning of the year, to 74 rubles to the dollar at present. Wow :(.

Yes!

In the long run it is good for Russia.

Yeah right, especially with oil under $55 per bbl.

Though it may make the short run pretty messy.

Oil under $55 ensures the longevity of oil.

A BROAD VIEW.
Russia is forced to reduce importation. Such a huge varied country has all the factors to be
self contained like America once was.

The only thing that Russia produces that the world is interested in buying is oil and weapons. Without diversification of its industries and reduction in corruption, Russia stands little chance of getting a grip on their problems.

The push for diversification should be greater now and this might succeed despite crony capitalism. However corruption? :D

As I understand it, it costs Russia $44.00 to produce a bbl of oil. With the price at $55.00, Russia would almost be better off leaving it in the ground and pouring capital into other sectors of their economy.

John

One of the benefits of capitalism is the economy catering to supply and demand. Investment shifts over to industries and companies where there is more demand and thus profits. Russia is a soculist (crony communism?) country where entrenched interests trump demand and profitability. So the economic system needs to change from within. I doubt is Putin is the man to let market forces take over.