Russian Currency Crisis and Sheep buy this!?!

Either we have some incredibly narrow reporting on the part of UK’s Mail Online, or we are witnessing a spectacular event of how incredibly dense the population of sheep are.

MOSCOW (AP) — Russian consumers flocked to the stores Wednesday, frantically buying a range of big-ticket items to pre-empt the price rises kicked off by the staggering fall in the value of the ruble in recent days.

Russia’s currency has been collapsing 15-20% in the last day, and consumer panic is not helping it out at all.  Russians are trading in their rubles for dollars or spending their rubles on consumer goods.  This may set off a train of events that further devaluates the currency, and could even lead to a bank run.  Russia made a dramatic moved and increased their ruble interest rate 6.5% to 17% which is one of the highest interest rates in the world.  This has plugged the sinking ship, but no one knows if it will hold.

You would think that these extraordinary circumstances would cause Russians to run out and start preparing.

  • Buy up food!
  • Buy up warm clothes and other shelter!
  • Buy up water stores!

Actually…not so much.  As the UK article shows, Russians are running to stores like IKEA and buying furniture, TVs, and other ridiculously useless items.

Russia Economy

What Will Happen in the United States?

The global economic situation is grim, and one might expect these same events to happen within the United States at some point in time.  When and if it does, will people rush out to buy life necessities?  If this situation in Russia is in any way indicative of the overall world population of sheep, odds are “probably not.”  While some will make their best effort to obtain food and other necessities, it is not a stretch of the imagination to see a situation like Ferguson on steroids.  Not only will there be looting, but many will waste their dollars on senseless purchases like TVs, electronics, and other goods that will have no bearing on their overall survival.

SMH (Shaking my head….)

Let me end this article by sharing a heartfelt moment with my readers.  This event of Russian currency collapse is all part of the currency war that is taking place between the US, its allies and Russia.  Over the last couple years (and this year particular), we are witnessing a cascade of events that will lead us to world war.  When talking with owners of other preparedness websites, we see this trend coming to life sometime in 2015.

Most of us have not experienced the cruelties of war, nor the hardships of depression.  We read about these events on the internet, and they seemingly stay on the internet.  Have you really thought about the “what-if” these events roll up to your doorstep?  Will you really be able to handle seeing your family and friends suffering?  If you have not started to prepare, you really need to start taking these events seriously.

  • Problem Solver

    Two important things about Russia as it was explained to me.

    1) There are still many Russians who grow food in the summer months on small plots of land of five acres or less. So running for food is not so much a an issue in a society where many still practice growing some of their own food. Russians know they can get seeds and tubers for 2015 growing season.
    2) Barter still plays an important role in Russia. Russia has a long history of an effective black market.

    You need to dig deeper into the culture to understand the behavior.

    Most Americans are lucky to grow a few tomato and pepper plants in the summer.
    Out side of yard sales and flea markets America is not a society that bargains and haggles. Americans have been trained to go to the store and pay the price on the label. To save money some look for sales!

    If there was a need to grow food seeds and tubers must be grown a year ahead. Most seed companies run out of some items as it gets close to the growing season. If there was a sudden demand you would see many out of stocks.

    America has no history a massive currency devaluation like Russia.
    America has no history of shortages like Russia.
    America has no history of thriving underground market in everyday items the stores do not have because of shortages.
    America has no history of small homesteads growing substantial amount of vegetables since victory gardens of WWII.

    So America is less prepared than Russia.