Russia's economic boom is over for now, with its stock market down about 70 percent. The ruble is nearing a three-year low. The country's central bank has spent about $150 billion - nearly 25 percent of its reserves - propping up the currency and increasing market liquidity. Those reserves were accumulated when the price of oil was high.
About half of the Russian budget comes from sales of oil and gas. And more tax revenue is generated by energy industry suppliers. And so, the plummeting price of crude could soon create a budget deficit, directly impacting Russians employed by the government - more than half the national work force and their families.
Half the Russian budget comes from oil and gas? What kind of real country is dependent on selling one product? Take away their nukes and just what is Russia? Certainly not a superpower.
Back when the Russians endured the Beslan massacre, I felt sorry for the Russians. I sent a small donation to the Russians. I even maintained hope that Russia would shake off its past and join the West.
But the Russians have been such bastards the last several years under the tender influences of Putin that I can't feel sorry for them one bit.
When oil was expensive they enjoyed their fantasy world of brave Russia standing up to the evil, plotting West. Let's see how the Russians enjoy their isolation now.
Or maybe their good Iranian and South Ossetian friends will rush to their rescue.
