Friday, November 14, 2008

The ruble slips



Just as I get ready to leave the country on Sunday, the dollar has begun to strengthen against the ruble. I got 28 rubles for the dollar today. Two weeks ago, it was roughly 26. This might not sound like a lot - but actually it adds up - even for the personal consumer.

But - the cappuccino machine where I write is still steaming. I'm not the only customer in this cafe. The stores still have products on the shelves - although I saw a piece on the TV today - about some stores encountering problems with getting the credit they need.

And - of course - the news from the United States isn't so encouraging. I'm posting today's piece by Krugman about Depression Economics. This is Obama's great challenge and opportunity.

(Above are some recent picture. One of the Kremlin area and the full moon. The other - znachki - the little badges that were so freely given out in the Soviet Union. )