this post was submitted on 30 Nov 2024
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Summary

Russia’s ruble has plunged to its lowest level since March 2022 following new U.S. sanctions on Gazprombank, a key platform for energy payments.

The ruble’s slide, driven by sanctions, falling oil prices, and soaring defense spending, has intensified inflation and strained the war economy.

While the Kremlin benefits from a weaker ruble by converting foreign revenues into more domestic currency, experts warn of overheating risks and financial instability.

The Russian central bank is scrambling for solutions, but long-term economic pressures and declining oil revenues pose significant challenges.

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[–] scarabic 1 points 15 hours ago

Why the fuck did we wait this long? Trump will reverse this November 21 change as soon as he takes office.

[–] [email protected] 113 points 3 days ago (1 children)

Watch how quickly cheeto man lifts the sanctions when he takes office. Bet it's a day one agenda item.

[–] rational_lib 15 points 3 days ago (1 children)

Or Russia will collapse before he can save them, Putin gets executed, then Trump takes the credit.

[–] [email protected] 9 points 2 days ago (1 children)

That is the shittiest win, but still...

[–] meliaesc 6 points 2 days ago

I'll 100% take it.

[–] njm1314 31 points 3 days ago

They just got to hold out another couple of months

[–] [email protected] 150 points 4 days ago (5 children)

Ruble in rubble, rocks Russia

Come on people, write good headlines.

[–] [email protected] 67 points 4 days ago (3 children)

Instead, in 2024

Russia in panic as US sanctions SLAAAAAAMS ruble

[–] psycho_driver 20 points 3 days ago* (last edited 3 days ago)

Russian bankers HATE this one simple trick!

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[–] FlyingSquid 97 points 3 days ago (3 children)

If only they could do something about it like not invade another country and get those sanctions lifted.

Of course in January, they won't have to worry about that.

[–] [email protected] 35 points 3 days ago (2 children)

I don't think it will matter. I might be wrong but once hyper inflation sets in I think you are fucked and it's years to dig out even to stability.

[–] FlyingSquid 38 points 3 days ago (2 children)

It only took Weimar Germany 3 or 4 years to fix the hyperinflation problem, but it also made people seriously distrust the government and when the next economic crisis hit (The Great Depression), Hitler was able to use the fears of the populace to rise into power.

[–] [email protected] 22 points 3 days ago (1 children)

Good news then!

They've had their version of Hitler for years!

[–] FlyingSquid 19 points 3 days ago (1 children)
[–] [email protected] 46 points 3 days ago (3 children)

That's the Russian National Motto!

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[–] kerrigan778 51 points 3 days ago* (last edited 2 days ago) (3 children)

Non sensationalist version: the ruble has steadily dropped about 10% in value vs the euro over the course of the last ~4-5 months

Yes, your currency dropping 10% in value over just 4 months is serious, it is also not sudden panic inducing collapse.

UPDATE: The article doesn't give this data but more recent data suggests that there is some major sudden fluctuations over the last week, possibly will become another significant sustained drop in the ruble.

[–] Valmond 4 points 2 days ago

-50% in 2 years, nothing to see here! /s

[–] [email protected] 16 points 3 days ago

Thank you. This headline sounds exactly like the way the other side would be criticised for wording it, very propoganda-like.

[–] Korne127 8 points 3 days ago (1 children)

Saying +10% in about four months is technically correct, but very misleading

[–] [email protected] 19 points 3 days ago (1 children)

This is an unlabeled graph and ambiguous comment. What are you saying? That the ruble is doing better than he is claiming compared to the euro, or worse?

[–] Korne127 12 points 3 days ago (5 children)

The main part of the change happened in just a few days - weeks, and not over four months.

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[–] [email protected] 145 points 4 days ago (4 children)

i'm no fan of american imperialism, and also with an economy about as big as the state of new york, america acting on russia is not exactly "picking on somebody your own size" ... but, passively observing the machinations of two monstrous beasts neither of which i have the ability to influence let alone control, it's hard to feel bad for russia right now. all they had to do was leave ukraine the fuck alone. all they had to do was STAY HOME. I hope they find out enough to realize that fucking around was a mistake.

[–] [email protected] 8 points 2 days ago* (last edited 1 day ago) (1 children)

I don't know why you're speaking in the past-tense. Putin and the oligarchs can still stop the damage to the Russian economy, the lives being pointlessly spent, as well as the senseless damage to Ukraine... It all could end the very moment you read this. All they have to do is GTFO, return all prisoners/property/children they stole, and pay Ukraine reparations for the war crimes they committed. Definitely still cheaper in the long run...

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[–] Maggoty 11 points 3 days ago (2 children)

The picture clarifies a bit more when you realize Russia's economy was already going down because of sanctions from the 2014 Crimean invasion. Which they did in direct response to the people of Ukraine rejecting Russia. They wanted to control Ukraine in the first place (like Belarus) because they believe two things. They have a right to a sphere of influence in their "near abroad" and controlling those countries is critical to their self defense. It would be like the US deciding Mexico and Canada must be puppets in order to defend themselves.

So with their economy circling the drain because of their pre-existing beliefs the invasion of Ukraine became an economic imperative. They actually thought it would be like Crimea again. The first wave of troops actually had parade uniforms packed. So the plan was very obviously to use Ukraine's rising economy to bolster their own and achieve another buffer state.

Now the goal has necessarily changed. It's survival for Putin and his group. When they failed that embarrassingly they couldn't back down. They've propagandized this as an existential fight for people in Eastern Ukraine who want to be or already are Russian. So they cannot easily give up. This is why Putin keeps saying they control the districts of Donetsk and Luhansk even though they don't control the entirety of the districts. He's been messaging for about a year now that he's willing to end this if they let him keep what he has and don't object too loudly when he tells his people he got the entirety of both districts.

So basically, Putin realized it was a mistake on the day they had to retreat from Kyiv. Ever since then he's been furiously looking for an exit that doesn't involve him being deposed by the oligarchs.

[–] Paragone 2 points 23 hours ago (1 children)

What a helpful comment.

Thank you!

_ /\ _

[–] Maggoty 1 points 22 hours ago

No problem. When I'm not despairing at domestic politics, the international stuff is what I bonded with in college.

[–] [email protected] 7 points 3 days ago

Putin being eaten alive by the very pack of hyenas he mobilized would be very cathartic and satisfying though.

[–] [email protected] 27 points 3 days ago (8 children)

On the other hand, Putin doesn't seem to care much about the suffering of his own people, which is what's happening here. It's the people, many of which are innocent, who suffer. Putin and his people are safe and warm with plenty of Euros and Dollars to spend.

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[–] [email protected] 59 points 4 days ago (8 children)

In the end, all wars are economic.

[–] scarabic 2 points 15 hours ago (1 children)

Usually, but perhaps not all. North Vietnam did not repel the US through its superior industrial capacity / economy.

[–] [email protected] 1 points 12 hours ago* (last edited 12 hours ago)

Well no, North Vietnam repelled the US with China's military force (mostly just manpower/cannon fodder). But regardless, saying that the war was economic doesn't mean that one side's economy must be superior to the other's in order to "win". The Vietnam war is actually a good example of an asymmetric situation, because North Vietnam's economic capacity really had no bearing on the outcome. The war was astronomically expensive for the US, which had spent US$168 billion by 1970. Adjusted to 2019 dollars this is US$843.63 billion, making it the 4th most expensive conflict in US history.

Vietnam didn't have to out-produce the US, they just had to drag the conflict out until it became too costly to sustain.

To put it another way, it's not a question of how much war you can afford, it's a question of how much war you can force the other guy to pay for, and what he can afford.

[–] [email protected] 31 points 4 days ago* (last edited 4 days ago) (4 children)

No, just most. War is the continuation of politics by different means, and political desires are quite often, but definitely not always, economical. Rome razed Carthage because of the economics of empires in the Mediterranean, yes, but Charlemagne didn't genocide Old Saxony for its economic output, but religious fervour and autocratic arrogance (the whole one god one pope one king thing).

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[–] Trail 42 points 4 days ago (1 children)

In this case it should probably classify as "offense spending" rather than defense.

[–] Vash63 24 points 4 days ago (1 children)

That's true in almost call cases and is precisely the intent of doublespeak

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