Tuesday, December 16, 2014

Russia ... too big to fail?

Too big to fail?
OK -- I understand the English words, but I don't honestly understand the links between action taken and ends desired:
Russia's rouble has slipped back near its all-time low despite a dramatic interest rate rise by its central bank.
It increased rates to 17% from 10.5% in an attempt to boost the currency's value against the dollar.
The rouble has lost almost 50% against the US dollar this year as falling oil prices and Western sanctions continue to weigh on the country's economy.
I know that American neocon princelings like Dick Cheney love to chortle and preen when the enemies of the country that prints money and morality at their behest suffer a setback.

But I also wonder at what point our enemies' difficulties have the same effect as those experienced by our friends. In this instance, for example, at what point, if any, does Russia's financial plight have the same effect as the past difficulties of a Goldman Sachs and the U.S. is forced to address the 'fact' that Russia is "too big to fail?"

Wallowing in victory can only suffice for so long before the negative effects become apparent.

1 comment:

  1. A global economy benefits the banks that bankroll the bailouts. The culpability of those same banks in the creation of financial failures requiring bailouts is clear. Boom or bust has become boom, bust and bailout. It allows those who are too big to participate to buy up resources as spoils.