The falling price of oil is causing problems for Russia's economy, says Matt O'Brien of the Washington Post. The ruble is down 50% against the dollar this year. The Russian central bank raised interest rates from 10.5 to 17 percent in an attempt to prop up the value of the ruble, but this move will "send Russia's moribund economy into a deep recession."
The only asset, and I use that word lightly, that's done worse than the ruble's 50 percent fall is Bitcoin, which is a fake currency that techno-utopians insist is the future we don't know we want. And this is only going to get worse. 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.
Sorry, Putin. Russia's economy is doomed
