When will the crisis end in Russia? How to survive in a crisis

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:46

Citizens of our country have long been accustomed to the fact that new financial crises arise in the country with certain interruptions. Collapses in Russia happen so often that almost every Russian knows exactly how to act in the event that a period of instability comes again. The crisis of the economic system is a kind of test for the state, which should be passed not only as quickly as possible, but also with the least losses. Whether Russia will be able to cope with the difficulties in 2015-2016 remains a mystery that analysts are just beginning to unravel.

The economic crisis as it is

Today, every citizen of Russia is well aware that a crisis is bad, but what is an economic crisis? How exactly it occurs and whether it can be avoided, only a few know. Financial collapse is the destabilization of the financial systemstates, when inflation is at its maximum, and the currency markets and the stock exchange are characterized by an unstable exchange rate. It is still difficult to say when the crisis will end in Russia, but experts are already seeing positive dynamics in some areas of the economy. Most specialists are fully convinced that the most important thing today is the mood of our society. After all, panic moods most often lead exclusively to negative consequences, which today are completely inopportune for the Russian Federation. The population will have to go through another difficult period, which will bring not only financial losses, but also many other problems. It is difficult to say how long the crisis in Russia will last, but the amount of time definitely depends on how the population of the state reacts to the problem. If today the population rallies and endures hardships confidently, then this period may end much earlier than experts predict. For example, many analysts last year believed that the ruble would stay at the bottom for a very long time, but in reality everything turned out differently.

History of crises in Russia

Crisis is a cyclic concept. Probably, it is for this reason that it is repeated in our country with a certain stability. When the crisis will end in Russia, of course, it is difficult to say, but in order to remember all the past collapses, you won’t have to spend much time.

Everyone remembers very well the end of the summer of 1998, when economic problems first appeared on the territory of Russia. According to analysts, this was the most devastating crisis in the entire history of the existence of the RussianFederation, because the devaluation of the ruble was about 2.5-3 times, and prices rose by 44%, which can be considered a real disaster for the population, which is accustomed to a stable and measured life. But even then, the Russians coped with the difficulties, therefore, our people know best how to survive in a crisis. Of course, many still recall with horror the instability of 1998-1999, which was the result of such serious changes in our state. It is worth noting that the government took fairly tough measures in order to resolve the situation then, but it bore fruit. Perhaps today the leadership of Russia will think about how to work out according to the same scheme. But this is just speculation.

After crushing hyperinflation in 1998-1999, there was a period of calm, and the collapse was repeated already in the 2000s. The crisis of 2008-2009 is remembered for the fact that Russian President Vladimir Putin called it "echoes of the crisis in the United States." This financial collapse was accompanied by a powerful recession, but then the government's effective plan helped the country quickly cope with difficulties. It is difficult to guess how long the crisis in Russia will last this time.

The global crisis and Russia

No wonder Vladimir Putin openly stated in 2008-2009 that the financial crisis in the country was solely the fault of the United States. The global collapse of the 2000s did indeed begin in America, but a year earlier than it did in Russia. Experts believe that the economic collapse that began even then is still present ineconomies of most countries. Unfortunately, not all countries managed to cope with such negative factors as during 2007-2009, so many are still on the verge.

As you know, it was during this period, for the first time in many years, that global GDP showed a negative trend, falling by 0.7%. Analysts also noted a record number of unemployment, because about 199 million people were on the street. It is difficult to imagine what happened during this period in most states. There is a crisis in the country, there is nowhere to work, food prices have risen, and the standard of living has sunk to the limit. Not surprisingly, experts compare this period of time with the Great Depression, which occurred in the distant 1930s. It was then that people had to cope with similar problems, like the citizens of our country, no matter what. Although, it is worth noting that the crisis in France or Germany is not the same as what happens in Russia during the financial turmoil in the country. The French and Germans during the next economic crisis simply choose a cheaper resort or cancel another shopping, unlike our citizens, who save on almost everything. But Russia has successfully coped with the difficulties this time as well, although many analysts claim that many problems have simply been shelved.

Causes of the 2014-2015 crisis

And indeed, if the state had made the maximum amount of effort then, perhaps today another collapse could have been avoided. But the financial crisis overtook Russia again andhit her with renewed vigor. Although, what experts just do not call the reasons for the collapse of 2014-2015. The beginning of the crisis in Russia was marked by events in Ukraine, so many analysts believe that this was the main motive. Western sanctions in response to the annexation of Crimea had the most negative impact on the Russian economy, and anti-sanctions further aggravated the situation in our country. The geopolitical situation escalated to the limit, the cost of oil fell sharply, and the financial market, as never before, showed negative dynamics. At that moment, the crisis of the Russian economy had just begun, and almost all analysts were already saying that this was serious and for a long time. Most experts immediately began to actively talk about the fact that the economic collapse would not only destroy Russia as a successful state, but would also last as long as possible. It is not surprising that today fewer and fewer citizens of our country listen to the opinion of political scientists and analysts who are trying to talk about what will happen in Russia in the near future.

Theory of survival in a crisis

There is a crisis in the country. And not just regular financial difficulties, but serious problems that force even the Central Bank to go along with the government. The financial market is showing a sharp decline, the ruble has collapsed, and frightened citizens are saving themselves by investing their savings in a variety of areas. The key rate is rising, and the queues at currency exchange offices are still there. Financiers are increasingly shrugging their shoulders and saying thatthe cause of such chaos is speculators who, taking advantage of the destabilization of the situation, began to actively work in the market. When the crisis will end in Russia, no one knows yet, so everyone is trying to prepare as much as possible for a long period of depression and lack of money. Absolutely all financial instruments are used that can at least promise citizens profit or security. At the peak, as always, are the currency and securities of domestic companies. Russians are massively buying up the dollar and sending their savings to the financial market. In general, this situation continues today, so it makes sense to talk about those areas that can bring the maximum income to investors this year, because the worst thing that can be done today is to keep rubles at home. Professionals believe that tomorrow's income will depend on how competently a potential investor manages his savings now.

Bank deposits

It is not surprising that the very first financial instrument that Russian citizens considered at the end of 2014 was a bank deposit. Economists' forecast for Russia sounded as negative as possible during this period, and it was important for investors to keep their savings and at the same time make significant money. Money should make a profit - this is an unwritten rule that almost every person observes today. And during the economic crisis, it is extremely important to secure financial support in the form of passive income. It is worth noting that the Central Bank has done everything to ensure that interest rates on deposits look as high as possible.attractive (for example, he repeatedly raised the key rate, which made bank deposits as attractive as possible for depositors against the backdrop of high interest rates even on ruble deposits), so most depositors did not even hesitate to send their savings to the bank at high interest rates. Unfortunately, the Central Bank has recently begun to actively reduce the key rate, which made deposits not as profitable as last year, so investors have to look for new financial instruments now. It's just that today it makes no sense to invest in a bank if there are more profitable financial instruments that can guarantee a stable income for an investor.

Precious metals market today

How to survive in a crisis and at the same time earn money, those investors who actively work with such a financial instrument as the precious metals market know. At the end of 2014, most experts did not recommend investors to invest in this direction. Gold has not only lost its appeal, but also almost lost its growth prospects amid such negative economic difficulties. In fact, until today, it was really unprofitable for investors to work with precious metals, but recently the market has begun to offer much more per ounce of gold, and experts have completely changed their forecasts. In general, among precious metals today there are contenders who are guaranteed to bring their owners a high income, for example, platinum, which promises already inin the near future to please investors with an increase in value. It is worth noting that the precious metals market has always been considered one of the most stable and profitable investment options.

Forex market

Many experts believe that the global crisis and Russia are inseparable concepts. Well, the problems of a global scale cannot but affect such a large state as the Russian Federation. It is for this reason that many investors preferred to choose the FOREX market as their main financial instrument, which can bring a considerable income to the player with skilled work. Unfortunately, today quite a few ordinary citizens of Russia can freely start working on FOREX. To do this, a potential player needs to learn at least the basics, although many decided this year to use the help of a qualified manager or the services of a management company that guarantee their clients not only income, but also complete security for investments. For FOREX beginners, such conditions are quite enough to invest in such a volatile financial market.

Stocks and bonds

And the last financial instrument that was highly demanded by investors this year and continues to be popular today is shares and bonds of domestic companies. No one can say when the crisis will end in Russia, but the fact is that the securities of Russian organizations have already been able to bring high income to their owners today -it is a fact. Just like the FOREX market, this year the domestic stock exchange turned out to be extremely attractive for investors who find it convenient to work with such financial instruments. Many shareholders transferred their investment portfolios to professionals, some worked independently, but in any case, every investor was able to receive income from Russian companies this spring. The ruble gradually strengthened, and quotes instantly rose, which was the reason for such a high return on assets. At the same time, professionals emphasize that next year the enterprises of our country will be able to show even better and more stable results, which means that investors should continue to work with this financial instrument in the future.

Forecast for 2016

It is not surprising that today one of the most important events in our country is the crisis in Russia. Forecasts for next year are not yet the most encouraging, but still better than the experts promised at the end of 2014. It is worth saying that many experts were confident that Russia would take as long as possible to restore its positions after another economic collapse. But, contrary to all forecasts, today the ruble is gradually recovering its positions, the oil market is showing growth, and domestic companies continue to work actively. Of course, the consequences of the crisis in Russia will be severe, perhaps even more severe than in all previous years. But at the same time, experts note that thanks to the economic crisis and Western sanctions, most domestic companies were able to disclose theirpotential. Professionals assure that today many organizations have been able to reach a completely new level and at the same time prove to the citizens of their country that they are no worse than European organizations. At the same time, experts also stressed that the majority of Russians have rallied and are ready to face the difficulties that the next economic crisis has prepared in order for Russia to be able to withstand the onslaught of the US and pressure from the EU. In a word, today the citizens of our country are doing exactly what the state needs in order to defeat another financial collapse as quickly as possible. Of course, today the government is preparing a project that provides for a significant reduction in real incomes of citizens, but these are just temporary measures that will give results by 2017!