MURDER, POLITICS, AND THE END OF THE JAZZ AGE
by Michael Wolraich
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Putin’s Bubble Bursts
By trkingmomoe on Fri, 12/19/2014 - 9:55am |Krugman explains why the ruble has fallen more then the deflation of the price of oil. He looks at all the debt that the oligarchs has accumulated out side of Russia. All this debt is held in foreign currency and not in rubles. Normally this type of currency crash happens when high foreign debt is caused by government over borrowing and low exports. This is not the case because exports have been high in Russia and government borrowing low. The private sector has been accumulating assets out side of Russia with heavy borrowing.
It is a good read. I like how in the end he brings up the love affair some of the far right's with Putin. Like I said in a comment on the other thread on this subject. Russia is a far right's wet dream.
URL:
http://www.nytimes.com/2014/12/19/opinion/paul-krugman-putins-bubble-bursts.html?ref=todayspaper&_r=0
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