The Rouble is collapsing. Bad news for Russia but what about all the customers who now depend on Russia's oil and natural gas? Oil is already trading at around $50 with forecasts of further falls -- Russia needs on average $70 to break even. Russia has already spent nearly $150 billion of her dollar reserves in supporting the Rouble.
While this is a tragedy for the Russians, the consequences for Europe, which has become dependant on Russian oil and gas, are very serious. While the Europeans are paying in hard currency, vital for Russia, the political and social consequences of the collapse are incalculable if they cause disruption to energy exports.
Russia was one of those 'emerging markets' that was supposed, according to most economists, to be able to manage without the west. China, Japan, and Russia are now in dire trouble, along with the Middle East, Europe, the United States and much of South America....Australasia,....
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