LA Times: Russia is fucked, and Putin's asshole is ripped in 2
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Date: December 14th, 2014 8:58 PM Author: Talented wrinkle
In what way exactly? US exports to Russia are $9 billion per year. Russians dont buy Americans products. The dollar exchange rate is thus irrelevant to Average Ivan. 10% inflation is unfortunately nothing new to Russia -- it is about average these past 25 years. It has never really been below 8.5%. This is result of Dutch disease. Inflation of 10% is neither shocking nor remotely damaging to Average Ivan who knows nothing else. Unemployment isn't ticking up. Wages in rubles aren't falling. US inputs have been substituted for Japanese inputs which thanks to free fall in Yen are still affordable.
Tiny % of population (3%) with dollar denominated mortgages are fucked, but those are mostly with Western banks so Russian banks don't care. Sberbank (70% of Russian banking) has no dollar mortgage exposure and doesnt care.
Protectionism has saved Russian economy. Kremlins insistence on independence in all basics means currency fluctuations have minimal impact on average Ivan. Food, fuel, and building materials are not imported and increasingly same is true of basic manufactures meaning Average Ivan doesnt need to worry about Ruble-Dollar rate since Average Ivan's boots are made in Russia as is his car, and everything in his kitchen. Putin has ALMOST restored Soviet self sufficiency to the Russian economy. We need import NOTHING.
(http://www.autoadmit.com/thread.php?thread_id=2756491&forum_id=2#26930933)
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