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Russia’s economy is going through a crisis that has never been seen before. The falling ruble, record-high interest rates, and widespread fear show how weak a system is that is giving way under huge pressures from both inside and outside the country. It’s not just a bad economy; it’s a collapse full of symbols that reminds us of the fall of powers in the past. As the chaos gets worse, it makes us think deeply about Russia’s future and what will happen to the rest of the world as its economy falls apart.
Freefalling Rubles
People have long seen the ruble as a sign of Russian strength, but it is falling at a scary rate. Even though the official exchange rate is 100 rubles to the US dollar, in Moscow it is now 118 rubles to the dollar. On the black market, things are even worse, with tales of desperate deals that far exceed official numbers. People are afraid and don’t trust the Russian financial system as much as they used to, which is shown by this uncontrolled currency trade.
There is a reason for the fear. Russians are putting their funds into foreign currencies like the US dollar and the euro, even though their government doesn’t like the West. In a strange way, this rush to get Western currencies makes the ruble even less valuable, which keeps the situation worse. The unstable ruble shows how weak the economy is and how easily it can be hurt by both…
