What happened to Russia’s economy today is a really big deal

Russia will endure. They are arguably the people on Earth the most willing and able to suffer. Nevertheless, today was a game changer for the ruling elite.

We’ll see what comes next.

3 thoughts on “What happened to Russia’s economy today is a really big deal

  1. Roman Korol

    The fall of the ruble is important because Russia essentially runs a Third World/colonial economy based on the export of raw materials, but primarily oil and natural gas. Most consumer goods have to be imported. Its other major market sector, organized crime, has divested itself of its ruble holdings and is not affected.

    This economic meltdown can be linked to several unrelated events.


  2. Beauregard

    Here is discussion of subject often posted on this forum:


    “Nor, finally, did it happen because enlightened

    mandarins in the federal bureaucracy and national

    labs were peering around the corners of the future. …

    Instead, fracking happened in the US because

    Americans, almost uniquely in the world, have

    property rights to the minerals under their yards.

    And because the federal government wasn’t really

    paying attention. And because federalism allows

    states to do their own thing. And because against-

    the-grain entrepreneurs like George Mitchell and

    Harold Hamm couldn’t be made to bow to the

    consensus of experts,” who said this stuff would

    destroy, would pollute, and wouldn’t work. They

    did it anyway. “And because our deep capital

    markets were willing to bet against those experts,

    ” and go with the entrepreneur.

    So he’s describing American exceptional here.

    He’s describing American uniqueness. Property

    rights made it worthwhile for somebody to tear

    up their backyard and see what was underneath,

    and when they learned what was there, to go for

    it. They owned the property, they had the ability

    to do it. It doesn’t happen too many other places

    in the world.


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