• Buffalox@lemmy.world
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    5 days ago

    This is one of the economic indicators Russia can’t hide, and it’s not looking good.
    In 2022 when they increased interest rates to 20%, they strengthened the Ruble by a lot, doubling the value of the Ruble.
    But the Ruble has been declining since, and now even with nearly as high an interest rate of 19%, The Ruble is almost as low as the dramatic drop in 2022 that caused the interest hike to 20%.
    This is the second time in a couple of months they increase interest rates, and combined they are a 3% increase in a short time. And the Ruble remains at a low value.

    For anyone in doubt, this is a strong indicator that the Russian economy can’t handle the pressure of the war. Russian wages are losing value fast, and investments are very expensive, so a further decline in the Russian economy is likely. Especially since there is no cheap unemployed labor to draw growth from, which there normally would be in a situation of economic decline, but there is already full employment.

    The Russian economy is in decline and overheating at the same time.

    • duckduckohno@lemmy.world
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      5 days ago

      If Russians elected a log to be president and it stayed in power since 2000, they would have enjoyed a much better economy right now. Allowing a complete lunatic to stay in power is complete lunacy.