Comment Putin destroys ruble and Russian stock market indices – cowardly attack could also drive Finland into recession

The Russian attack is causing a great deal of human suffering in Ukraine, Russia and also in Finland. It is illustrative that the Moex index of the Moscow Stock Exchange has now collapsed clearly lower than in the stock market crash caused by the coronavirus, writes Joonas Laitinen, a news producer for the financial editorial.

Russian president Vladimir Putin launched an attack on Ukraine on the night between Wednesday and Thursday.

The human consequences of the war in Ukraine are enormous, but the average Russian will also suffer. After the attack, the ruble collapsed completely. One US dollar now gets 87 rubles. As late as the end of October, one dollar received only 70 rubles.

This means that Putin’s cowardly attack significantly weakened the purchasing power of the Russians. Of course, it must be remembered that the decline in purchasing power is mainly affecting Western products, such as electronics purchased from the United States. The attack on the price of Russian food will hardly raise, at least for a moment.

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Destructive there is also a trace on the Moscow Stock Exchange. The stock exchange’s Moex index fell by almost 45 percent on Thursday. The RTS index, on the other hand, plunged nearly 50 percent at some point.

Read more: Market monitoring: Moscow’s stock market and ruble collapse completely, OP estimates that war will even lead to a recession in Finland – graphics show dramatic capital movements

Since mid-October, nearly half of Moex has melted. Illustratively, Moex went well below the worst wave caused by the coronavirus on Thursday.

So a huge amount of money has melted off the Moscow Stock Exchange in a short time. In light of current information, it appears that money has been shifted away, especially by foreign investors.

The Putin-led invasion of Russia is also visible in Finland. The Helsinki Stock Exchange opened on a sharp drop on Monday.

Why bring new suffering on top of previous suffering?

Stock market buzz in addition, Finland may face much more severe economic consequences. If Europe and the United States want to maintain their credibility, Russia will now be attacked with unprecedented sanctions.

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Finland on the Russian side suffers more from sanctions than the rest of Europe. It is quite possible that sanctions will drive the recession in the well-growing Finnish economy. This, in turn, would cause human suffering in Finland as well.

OP’s chief economist also considers such a development to be possible Reijo Heiskanen.

“If you want to paint a damn on the wall, the risk of stagflation lurks above,” Heiskanen told HS. Stagflation refers to an economic situation that combines recession, high inflation and high unemployment.

World has just struggled in the midst of a couple of years of a coronavirus pandemic. The war in Ukraine is completely incomprehensible in that regard. Why bring new suffering on top of previous suffering?

The President of The Republic of Finland Sauli Niinistö at the press conference on Thursday morning, put well into what many have known for a long time.

“The masks have been taken off and only the face of the war is visible,” Niinistö said.

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Under Putin, beneath the mask, a face of greatness, alienated from reality, was revealed. At the latest, it has now been revealed that Russia is being ruled by a man who does not care a bit about the plight of his people.

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