It is winter, but the bear is awake and as hungry as ever. Russia has been heavily effected by the recent large drop in oil prices and had already been ramping up its military rhetoric and intimidation. How will the current economic struggle affect their future decisions??
The Russian ruble faced intense selling pressure Tuesday, falling at one stage by a whopping 20 percent to historic lows despite a massive pre-dawn interest rate hike from the country’s central bank. The surprise decision to raise the rate to 17 percent from 10.5 percent came in the middle of the night and represented a desperate attempt to prop up the troubled currency. The ruble has fallen sharply in recent weeks as a result of sliding oil prices as well as the impact of Western sanctions imposed over Russia’s involvement in Ukraine.
Given Russia’s huge dependence on oil revenues, the recent sharp falls in the price of oil have hit the Russian economy hard. That’s exacerbated by the fact that the Russian economy isn’t diversified enough to withstand the shock.
As the leader of the Gog and Magog war, it is clear that Russia will become more aggressive as we move closer to the time. On a side note, only one time in history has oil dropped this much in the given time frame. That was in 2008 when the biggest one day point drop in the history of the U.S. stock market followed a few months later with a biblical eye opening drop of exactly 777 points…… Dow Falls 777