Anyone who insists on believing that they can make the damned markets dance to their tune should look closer to what is going on in Russia – a country which in terms of size, wealth, economic advantages and geostrategic importance is nowhere near Greece. Nevertheless, a series of unfortunate moves by Mr. Putin, in conjunction with the sharp drop of the price of oil, have led the erstwhile superpower to a financial deadlock.
Just yesterday, for the second time in a week, it was forced to raise its interest rates by 6.5 points to 17%! Still though, the country’s currency, the ruble, continued its downward spiral with the exchange rate against the dollar and the euro exceeding 79 rubles for the first time in its history.
As it turns out once again, the wishful thinking, erratic actions and misguided demonstrations of power may quickly have a boomerang effect, creating a suffocating climate in the economy. Unfortunately, anyone who insists on ignoring the reality in a globalized economy will quickly find that you cannot play “tough guy” with the markets when are more or less dependent on them.
Anyone insisting on deluding themselves that they will defeat the speculators and greedy markets should probably reflect upon the situation in Russia – a country with far greater productive resources and without the commitments and dependencies of Greece. Because when we find out who is dancing to whose rhythm it might be too late to do anything about it.
TO VIMA
