Yet another Russian Revolution

united_russia_logoWhile many analysts in  foreign offices of various countries have been increasing;y worried that the global slow down would bring China’s economy closer to social unrest, the focus has now shifted to Russia.  The quick slide of petroleum prices plus the financial market crisis has left the former Soviet Union with restless workers demanding more.  

This information is from the U.K’s Financial Times.   Newspapers in Europe are interested in more than just the upcoming Obama annointment and actually have foreign offices rather than armies of reporters chasing the PE on beaches in Hawaii.   Perhaps Russian adventurism in the neighborhood will stop given this unnerving analysis.  We can only hope.

 It’s interesting to note that Russian cars makers also need a bail out from Mama Bear.  It appears no one likes their domestic drives any more.

One of the most interesting things I find with both of these transition economies has been the dance between enjoying increasing levels of consumer goods in return for accepting politically repressive regimes.    Folks in both China and Russia have been willing to trade freedom for stuff.  Now that the stuff is less available, what will happen?   Take that thought one step further and are all that different?  Exactly how much freedom do we sell for our daily bread and Wii?  While our expression of frustration were vented in the recent vote, how long and deep can this recession go before we too start demanding results from all this change?  Better yet, what happens when the candidate that promised to change things so drastically can’t really deliver.

Russia braced for unrest

By Isabel Gorst in Moscow and Anuj Gangahar in New York

Russia is bracing for further unrest as the rouble on Friday slid to a new low against the euro after a succession of moves to devalue its currency.

A cut on Friday extended six weeks of devaluations by Russia’s central bank designed to offset the impact of the global economic crisis and falling oil prices as the country’s main export commodity approached its lowest level since 2004.

After the depreciation, which was the eighth so far this month, the rouble declined as much as 1.2 per cent to Rbs29.06 versus the dollar on Friday, a four year low. The rouble has now lost nearly 20 per cent of its value against the US currency since August.

Analysts at Barclays Capital said the best case scenario would see Russian policymakers, facing the mounting evidence of a recession, allowing a one-off depreciation of 10 per cent or more.

The rouble’s slide comes as the government faces scrutiny over its policies. A demonstration earlier this month in the far eastern city of Vladivostok marked the first major challenge to the Kremlin since the onset of the global financial crisis.

Mikhail Sukhodolsky, a deputy interior minister, warned on Christmas Eve that there could be further protests. “The situation may be exacerbated by a growth in frustration of workers over the non-payment of wages or those threatened with dismissal,” he said.

His remarks coincided with criticism of the Kremlin’s rough handling of the protests in Vladivostok. Moscow-based Omon riot police detained about 61 people in the protests against car import duties designed to prop up domestic car producers, but making foreign vehicles prohibitively expensive for ordinary Russians.


2 Comments on “Yet another Russian Revolution”

  1. Hui Zhou says:

    dakinikat

    Can I ask a technical question? I need data on Eurodollar interest rate and Federal Reserve Board trade-weighted US dollar index for my dissertation. I know the data should be sitting somewhere on the Federal Reserve Board website, but I haven’t been able to find it. Do you happen to know where I can get the data? Thanks a lot.

  2. dakinikat says:

    did you check this link?

    http://www.federalreserve.gov/releases/

    that’s the major page for the data … you may have to one of the commodities exchanges for the eurodollar interest rate… try chicago …