(Telegraph) Ambrose Evans-Pritchard–Russia risks Soviet-style collapse as rouble defence fails

Russia has lost control of its economy and may be forced to impose Soviet-style exchange controls after “shock and awe” action by the central bank failed to stem the collapse of the rouble.

“The situation is critical,” said the central bank’s vice-chairman, Sergei Shvetsov. “What is happening is a nightmare that we could not even have imagined a year ago….”

Lars Christensen, from Danske Bank, said the Kremlin’s actions have led to the “absolutely worst possible outcome” since the botched move is enough to do grave damage, without solving anything. “They should have let the currency go rather than killing the economy. Investment is in freefall, and I fear this shock is going to be even bigger than in 2008-2009. Nothing suggests that oil is going to rebound quickly this time,” he said.

Read it all.


Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, Credit Markets, Currency Markets, Defense, National Security, Military, Economy, Energy, Natural Resources, Ethics / Moral Theology, Europe, Foreign Relations, Globalization, History, Politics in General, Russia, The Banking System/Sector, Theology