free falling

12:57 | 16-12-2014 | Economics, Politics | No Comments


Russia, you see, is stuck in an economic catch-22. Its economy needs lower interest rates to push up growth, but its companies need higher interest rates to push up the ruble and make all the dollars they borrowed not worth so much. So, to use a technical term, they’re screwed no matter what they do. If they had kept interest rates low, then the ruble would have continued to disintegrate, inflation would have spiked, and big corporations would have defaulted — but at least growth wouldn’t have fallen quite so much.

все так — решили, как обычно, спасать своих.

ну, и on a side note, классическое “всех переиграл”:

Putin might be playing chess while we play checkers, but only if we lend him the money for the set.


Leave a Reply