Putin Sanctions at Economic Tipping Point as Markets Fray - Polidicks

[QUOTE]Russia’s ruble, bonds and stocks rallied on March 18, a day after the European Union announced sanctions against the nation as President Vladimir Putin prepared to annex Ukraine’s Crimean peninsula. Fast-forward six months and escalating EU and U.S. penalties and the ruble is at a record low, Russian banks pay the most on record to gain dollar funding and government bonds have suffered the biggest losses among emerging markets, according to data compiled by Bloomberg. The Micex Index of stocks is down 6 percent from this year’s high on June 24. The reversal for the ruble is driving up inflation amid the slowest wage growth in more than three years, while rising yields have led to the scrapping of nine straight bond auctions, pressuring government revenue. The consequences are beginning to feed through to growth, said Ivan Tchakarov at Citigroup Inc. “Sanctions at present are biting more with regard to financial markets and less with regard to the real economy,” Tchakarov, the chief economist at Citigroup in Moscow, said by e-mail yesterday. “We may see the real impact on the economy only next year.” Russia is locked in a standoff with its former Cold War adversaries, who accuse the Kremlin of supporting rebels in east Ukraine. While formally blocking a handful of the biggest companies from foreign debt markets, sanctions have shut out “everyone” because investors and banks are “very cautious,” Bob Foresman, head of Barclays Plc in Russia, said Sept. 16. [/QUOTE] [URL="http://www.bloomberg.com/news/2014-09-19/putin-sanctions-at-tipping-point-as-markets-fray-russia-credit.html"]Source: Bloomberg[/URL] There are more details located within the source that mention inflation and depressed wages as a result of a weakened ruble. So for anyone who may have misunderstood the sanctions, they weren't designed to cripple, but to slowly strangle the Russian economy. If Europe can keep it's spine straight in the face of winter then this strategy will work.

I hope the Russian people can make it through this.

[QUOTE=Emperor Scorpious II;46022531]I hope the Russian people can make it through this.[/QUOTE] No, we will kill eachother with sticks and arrows for the last bottles of vodka.

-snip, missed a section of the article-

[QUOTE=MuffinZerg;46022569]No, we will kill eachother with sticks and arrows for the last bottles of vodka.[/QUOTE]Make it into a TV show and you'll get billions from it. Sanctions will no longer have an effect, although there will be less Russians around to celebrate it.

[QUOTE=Sgt Doom;46023125]Make it into a TV show and you'll get billions from it. Sanctions will no longer have an effect, although there will be less Russians around to celebrate it.[/QUOTE] Alternatively remove any kind of governmentship in Russia for 20 years and spread complete anarchy. Turn off internet and sell AK-47's in the streets. After that call it The Zone and make it a Cheeki-breeki theme park for rich westeners.

[QUOTE=MuffinZerg;46023141]Alternatively remove any kind of governmentship in Russia for 20 years and spread complete anarchy. Turn off internet and sell AK-47's in the streets. After that call it The Zone and make it a Cheeki-breeki theme park for rich westeners.[/QUOTE]Throw in a vodka discount for Finns and you have yourself a deal :v:

[QUOTE=MuffinZerg;46023141]Alternatively remove any kind of governmentship in Russia for 20 years and spread complete anarchy. Turn off internet and sell AK-47's in the streets. After that call it The Zone and make it a Cheeki-breeki theme park for rich westeners.[/QUOTE] Only if you can fuck with the noosphere and make bloodsuckers will you see my $$$

[QUOTE=MuffinZerg;46023141]Alternatively remove any kind of governmentship in Russia for 20 years and spread complete anarchy. Turn off internet and sell AK-47's in the streets. After that call it The Zone and make it a Cheeki-breeki theme park for rich westeners.[/QUOTE] Giving Tzar Putin a few more years until it's time for another casual government change in Russia. Even 110% get tired of having to go back to the good old times of working in the fields.