Amidst all the Sony hacking hoo-har, and the Taliban atrocity in Peshawar, the Russian currency collapsed yesterday. A rouble is now worth half its value of a year ago.
Russia is 'falling apart' as a result, with panicking Russians seeing prices shoot up. They are buying up re-sellable consumables such as European imported electronics to get rid of their roubles. "We bought a washing machine for $440, (yesterday)" said shopper Alexei Malakhov, an IT specialist. "Now it's already $560."
Apple has closed its online Russian store as they cannot set prices for their products in this climate.
Oil prices have plummeted , and with it, the Russian state's main source of income. Half of the Russian government's income comes from its sale of oil and gas. Because of sanctions imposed by Obama and US allies after the shooting down of the passenger plane over Eastern Ukraine by Russian armed rebels.
Six months ago, 34 rubles would buy a dollar. On Tuesday, it took almost 70 rubles. So Russians holding rubles have lost half their wealth. In desperation, the Central Bank tried to break the fall, raising interest rates from 10 percent to 17 percent. It didn't work. The sanctions against Russia prevent Russian banks re-financing their foreign currency debts.
Putin , who has enjoyed a high degree of popularity thanks to the improved economic conditions seen in recent years - mainly thanks to the high price of oil - and thanks to his aggressive expansionist rhetoric, may not survive.
Russians have taken to twitter to voice gallows humor. One wag tweeted: “When oil and gas run out soon, roubles can be used to heat people’s homes.”