This is because of oil prices.
USA gets cheaper oil from arabic states who doesn't care about the prices but $$$.
Also Russia is on war all the time, they need money...
Topic: Russian Ruble drops 12% in one day. - page 5. (Read 6539 times)
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.
In 1956, Phillip Cagan wrote The Monetary Dynamics of Hyperinflation, the book often regarded as the first serious study of hyperinflation and its effects. In his book, Cagan defined a hyperinflationary episode as starting in the month that the monthly inflation rate exceeds 50%.
http://en.wikipedia.org/wiki/Hyperinflation
http://en.wikipedia.org/wiki/Hyperinflation
Russian Ruble over the past 100 years or so has lost 10 to the 14th power in purchasing power. CNBC says the oil companies are issuing debt and buying dollars with it. The only problem is our central bank is not that honest either. This is the big plus for bitcoin. Bitcoin is limited to 21 million coins. All bitcoin needs is more or the same number of users than last year. The ruble also shows the failure of gold and silver backed currencies. Through most of its history the ruble was gold and silver backed. The reality is those pegs or exchange rates can be changed when the government or banks need money. The only true gold currency is gold itself.
In June the number of rubles per dollar was 34. Today it hit 65.6. Thus Russia is in a period of hyperinflation, a 100% inflation rate over a year. Hyperinflations are not something to hurt your neighbor with many Russians are losing their life savings and when that happens it can lead to evil like Adolf Hitler.
Furthermore for the U.S. to compete worldwide, they may have to cut wages which is not going to happen. Thus, there could be problems in the U.S. especially when many are considering raising the minimum wage next year.
Any comments?
In June the number of rubles per dollar was 34. Today it hit 65.6. Thus Russia is in a period of hyperinflation, a 100% inflation rate over a year. Hyperinflations are not something to hurt your neighbor with many Russians are losing their life savings and when that happens it can lead to evil like Adolf Hitler.
Furthermore for the U.S. to compete worldwide, they may have to cut wages which is not going to happen. Thus, there could be problems in the U.S. especially when many are considering raising the minimum wage next year.
Any comments?
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