Economists and Investors Bearish on Russia in 2015

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January 18, 2015 by JImbo

Russian Economy to Shrink 5.5% in 2015

They have the opposite problem we have.

We have a government boosting inflation and printing money. Meanwhile, interest rates are as low as they can go. (.25%)

Russia has DEFLATION and is boosting interest rates (17%). While this can boost savings (cutting the money supply and boosting the value of the ruble), it also makes getting loans extra-difficult for companies.

Savings Interest and Loans Interest are two sides of the same coin after all.

So, instead of investing in a bad market they are voting with their feet. They are fleeing the country for greener pastures.

Of course given OUR issues, they aren’t coming HERE either. Nor Europe.

They’re going to third-world countries where there are more business-friendly climates and improving markets.

Places not so dependent on oil prices perhaps…

Look how closely the Ruble value follows oil prices.

Not a coincidence.

Or that the price of scrap is rising.

“Comrade, how much do you think we could get for this old thing?”

 

3 thoughts on “Economists and Investors Bearish on Russia in 2015

  1. Pat Russell says:

    Lets see how much they still support the Despot when the can’t get meat or toilet paper.

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