Nov

7

The Rouble, from Duncan Coker

November 7, 2014 |

 There are offsetting affects to the decrease in $ priced crude. The decline in the rouble is in fact a windfall to those in power. The oligarchs in Russia have access to hard currency via exports, crude, natty gas, etc. The hard currency is converted to roubles to buy national real assets at 40% discount, like land, hard assets. As long as they can keep ahead of inflation it is a great deal for those in power. Or they borrow form the populous, sell paper bonds and pay back in worthless currency and pocket the difference.

I am not an expert in Russian affairs, but this scenario has played out in history before.


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  1. nik on November 9, 2014 10:30 am

    … hard assets are payed in russia since years in $ or €. the underdog is the pensionier the simple man on the street who get his money in rub and pays in rub

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