Topic: Russian Ruble drops 12% in one day. - page 4. (Read 6526 times)
On the top of that Russia is oil exporting country and the depreciation of RUB is 100% correlated with drop of oil prices. The drop of course will stop and be recovered.
Omg. Russia has not hyperinflation. Russia is on the edge of runaway inflation, which is something that for example Israel lived for years with.
Also it is incredible, how people mix inflation and depreciation. Depreciation of RUB to foreign currencies was much bigger than inflation is. Depreciation for example does not always have impact on price of domestic products, especially the ones that are created from domestic commodities. It has direct impact on imports, which get more rpicey. But Russia isalso big exprt economy and depreciation is boom for export.
And while it would be great if the crisis would help btc, it simly does not happen. Btc dropped today almost like RUB.
Also it is incredible, how people mix inflation and depreciation. Depreciation of RUB to foreign currencies was much bigger than inflation is. Depreciation for example does not always have impact on price of domestic products, especially the ones that are created from domestic commodities. It has direct impact on imports, which get more rpicey. But Russia isalso big exprt economy and depreciation is boom for export.
And while it would be great if the crisis would help btc, it simly does not happen. Btc dropped today almost like RUB.
The Russian central bank said it would raise its key interest rate to 17 percent from 10.5 percent. It's a huge increase, looks like situation is serious for Russian government.
Is ruble fully backed by gold??? I thought only swiss franc has that.
Back in 1999, the Swiss voted 59% for changing their constitution, specifically to remove the 40% gold-backing from the Swiss Franc.
Recently, a referendum to at least require the central bank to hold 20% of its reserves at gold was proposed as a step towards reintroducing a gold standard. It was defeated with 78% voting against.
I wonder if you had to have an IQ of at least 110 to vote what would of happend.
People love cheap debt when they don't think they have to pay for it. People become richer and move up the ranks fast on cheap debt. If they had to go to engineering school, to earn their money, they would not be where they are. Basically cheap debt and paper backed currencies let the non-working elite have the money and power. The poorlove it to they can buy cars and not have to pay it back if they want to buy a new cellphone.
I'm surprised Russians arent buying up Bitcoin in a panic...
thisIt's dangerous to pick on a wounded bear.
edit: Looks like they are buying BTC at double peak volume: http://bitcoincharts.com/charts/btceRUR#rg10ztgSzm1g10zm2g25zv
This is my prediction, what is going to happen as slowly the worst inflation countries will start to pick up some bitcoin. Slowly a small grind will move into a larger movement. I just wish bitcoin did not have any inflation already. Compared to 100% inflation, they will experience 5% inflation. People can handle losing 5% a year they won't revolt, you just get a tea party. Relative to their own countries currency it will rise. People in Russia that use bitcoin will be the winners, those that don't well they can pick corn.
http://www.zerohedge.com/news/2014-12-15/russia-shocks-emergency-rate-hike-boosts-interest-rate-105-17
here we go, the magic of fiat money
here we go, the magic of fiat money
This is not high enough. The interest rate needs to be over 100%. If people want to lend money they can. I am not saying this for Russia, I am saying this for the United States too. Low interest rates ALWAYS hurts the economy. What happens is you get people that don't work buying up assets they don't deserve. Just look at the private equity firms, all they do is use bank debt to buy up companies and somehow they are worth $50 million or more in salary. What to mortgage reits do? They lever up with Federal Reserve debt. The dumbest kid on the block has the nicest car because when he defaults it is the poor banker that did the working man harm.
Is ruble fully backed by gold??? I thought only swiss franc has that.
Back in 1999, the Swiss voted 59% for changing their constitution, specifically to remove the 40% gold-backing from the Swiss Franc.
Recently, a referendum to at least require the central bank to hold 20% of its reserves at gold was proposed as a step towards reintroducing a gold standard. It was defeated with 78% voting against.
I wonder if you had to have an IQ of atleast 110 to vote what would of happend.
Is ruble fully backed by gold??? I thought only swiss franc has that. Anyway that is the beauty of fiat issued bank notes. When the value drops and in order to counter inflation, banks can have the option to hike interest rate. 17% is not a small amount. For bitcoin to gain advantage in this area would be quite difficult and unless you can guarantee the equivalent same amount of return in a year, then it's different. And looking at the bitcoin price chart today, it's quite frustrating. Otherwise people would still hang on to fiat.
INNCORRECT, no one is backed by gold, no one. The swiss left that ages ago.. almost re-enstated it but the banksters spent billions to scare them out of it.
Speaking of Russia and Ruble, check out our new feature, Rouble Transfer:
https://bitcurex.com/page/rub/
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https://bitcurex.com/page/rub/
Deposit RUB directly, get USD, buy BTC. Up to 3300 USD without verification. Plain and simple.
Regards!
http://www.zerohedge.com/news/2014-12-15/russia-shocks-emergency-rate-hike-boosts-interest-rate-105-17
here we go, the magic of fiat money
here we go, the magic of fiat money
I'm surprised Russians arent buying up Bitcoin in a panic...
thisIt's dangerous to pick on a wounded bear.
edit: Looks like they are buying BTC at double peak volume: http://bitcoincharts.com/charts/btceRUR#rg10ztgSzm1g10zm2g25zv
Is ruble fully backed by gold??? I thought only swiss franc has that.
Back in 1999, the Swiss voted 59% for changing their constitution, specifically to remove the 40% gold-backing from the Swiss Franc.
Recently, a referendum to at least require the central bank to hold 20% of its reserves at gold was proposed as a step towards reintroducing a gold standard. It was defeated with 78% voting against.
Oil prices + economic embargo. Of course it was expected to happen.
Both Russia and Switzerland have some gold, but it's not backing the currency. You can't go to the central bank and demand a specific amount of gold.
Is ruble fully backed by gold??? I thought only swiss franc has that. Anyway that is the beauty of fiat issued bank notes. When the value drops and in order to counter inflation, banks can have the option to hike interest rate. 17% is not a small amount. For bitcoin to gain advantage in this area would be quite difficult and unless you can guarantee the equivalent same amount of return in a year, then it's different. And looking at the bitcoin price chart today, it's quite frustrating. Otherwise people would still hang on to fiat.
Fantastic ))) I remember 1998 )) -500% But... We do not grieve 
Looks like it will hit 80 against the US$ today. It's really a crazy freefall for a non digi currency. I'm surprised Russians arent buying up Bitcoin in a panic...
Looks like its triggered by the fall in oil prices (its at 55$ this morning - was at 90$ recently and likely to fall to $45 at some point in near future) compounded by RU sanctions, in addition to US$ strength due to possibly Fed policy changes and Russian overnight nearly doubling interest rates to try to stop it falling - which didnt work which smacks of desperaion (as usual in markets, fear and technical trading is driving things more than fundamental reasons)... also Europe economy is doing better than expected so its also affecting it...
Mad month in markets...
Edit: hit 79.6 or so and bounced... Lets see if it breaks 80...
Looks like its triggered by the fall in oil prices (its at 55$ this morning - was at 90$ recently and likely to fall to $45 at some point in near future) compounded by RU sanctions, in addition to US$ strength due to possibly Fed policy changes and Russian overnight nearly doubling interest rates to try to stop it falling - which didnt work which smacks of desperaion (as usual in markets, fear and technical trading is driving things more than fundamental reasons)... also Europe economy is doing better than expected so its also affecting it...
Mad month in markets...
Edit: hit 79.6 or so and bounced... Lets see if it breaks 80...
This isn't Russia versus the US. The ruble is down towards the Euro and all the world's currencies, even the Polish Zloty! I hope it could kickstart a revolution in Russia, but Russians will probably starve to death not understanding anything.
The Ruble is going down due to the sanctions, so obviously it weakens compared with any currency.
What kind of revolution are you hoping for? You want to see their government replaced by "US approved" oligarch? How would that benefit the average Russian?
This is because of oil prices.
Maybe. Oil industries make up a substantial part of the Russian GDP (13.9% in 2012).
Most likely government depended on oil revenues and spent anyways without those revenues. Typical liberal mentality.
This is because of oil prices.
Maybe. Oil industries make up a substantial part of the Russian GDP (13.9% in 2012).
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