Ruble is sinking so Russia raise interest rates
 

Things are looking bleak for Russia's economy.

So it's interesting and all that their economy is tanking. But what I want to know is if there is any way to get some of that 17% interest action. Certificates of deposit here are earning almost half a percent if you lock in for 5 years. Can I open a savings account in a Russian bank and get 17%? Does anyone insure that money? Would I never see that money again? Even in a great year for the stock market, you would never see 17%. That's so much!

Hmm. On further reflection, if I put my money in a bank in Russia, it would be converted to rubles and would probably slide in value against the dollar, wiping out any interest gains.

Nevermind.

The Russian budget was fixed on oil staying at $100. It's dropped to $70 and the Saudis say they won't cut production to jack the price. Plus the sanctions over their invasion have added to their woes. Back in the early 80's when some mortgages and personal loans were hitting 18 or 19%, it was painful.

Appreciate significance of that fact. For example, Venezuela oil could be profitable at $30 or $40 per barrel. But the economy has been so corrupted that Venezuela suffers losses with oil at less than $120 per barrel.

Russia has a similar problem due to how Putin has corrupted and manipulated his oil industry as a tool for government policy.

Many want to blame Saudi Arabia for intentionally harming the market. Saudis have a long history of using their oil to bring sanity back to this market. It is not obvious what their objectives are this time. Putin, of course, accuses the Saudis of acting as an American tool to harm the Russian and Venezuela. However, also potetially hurt will be American fracking operations that need oil to stay well above $60 per barrel.

See Chesapeake Oil stock to appreciate what oil prices have done.

$2.25 per gal on Sunday around here.

Another month of this, and we'll be selling Titans and Armadas again.

My dad does business with some Russians who completely refuse to use banks of any kind. These are not small time, tinfoil hat redneck-equivalents, but real businessmen who do hundreds of thousands of dollars' worth of business at a time, and who are not doing anything illegal that needs hiding.

He finally got up the nerve to ask them once, and they said that during a previous financial crisis in Russia (don't know how long ago this is supposed to have happened, but in this 60-ish guy's lifetime,) the government confiscated all the money in banks. Not like how the American IRS or FBI will occasionally pick one person to screw over and act like their money looks like terrorist transactions when they have no proof--like they took 100% of all the money in all the banks, they just took it and said everyone starts over at zero.

It's the reason this guy emigrated to the US, because if they had to start over they might as well completely start over, but he says he will never use a bank again, in any country.

I knew a guy in Lancaster County who sold used fire trucks. The Insurance Companies would force fire departments to buy new trucks by threatening to raise the insurance rates for the whole town. Anyway, because they couldn't be used in the US he'd buy them cheap, refurbish (read wash) them, and sell them mostly to South America. Swarthy Dudes would arrive with a suitcase full of cash to pay for the truck and shipping. Supposedly because none of the financial institutions (or Governments)were to be trusted.

Cops pull you over for not using your blinker to change lanes, search the car, see the suitcase full of cash, and take it under asset forfeiture laws. You will probably never see it again. It would certainly take an aggressive lawyer to get it back.

It dangerous to travel with cash, and if you do, never consent to a search.

American express Traveler's Checks. Don't leave home without them. Everybody knows that.