The 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 how to act in case the period of instability reappears. 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 with the least losses. Will Russia manage to cope with difficulties in 2015-2016, so far remains a mystery that analysts are just starting to solve.
The economic crisis, as it is
Today, every citizen of Russia understands perfectly well that a crisis is bad, but what is an economic crisis? How exactly it arises and whether it can be avoided, only a few know. The financial collapse is a destabilization of the financial system of the state, when inflation is maximally manifested, and the currency markets and the exchange are unstable. It is hard to say when the crisis will end in Russia, but experts are already looking at the positive dynamics in some areas of the economy. Most experts are fully convinced that the most important thing today is the mood of our society. Indeed, panic moods most often lead exclusively to negative consequences, which today are completely inappropriate for the Russian Federation. The population will have to go through another difficult period, which will bring not only financial losses, but also cause many other problems. It is hard to say how long the crisis in Russia will last, but the amount of time definitely depends on how the state’s population will respond to the problem. If today the population is united and will endure difficulties confidently, then this period may end much earlier than experts predict. For example, many analysts last year believed that the ruble would last a very long time at the bottom, but in reality everything turned out differently.
The history of crises in the Russian Federation
Crisis is a cyclical concept. Probably, for this reason it is repeated in our country with a certain stability. When the crisis ends in Russia, of course, it is difficult to say, but in order to remember all the past collapses, you won’t have to spend a lot of time.
Everyone perfectly remembers the end of the summer of 1998, when economic problems arose for the first time in Russia. According to analysts, this was the most devastating crisis in the entire history of the Russian Federation, because the devaluation of the ruble amounted to about 2.5-3 times, and prices rose by 44%, which can be considered a real disaster for the population, which is used to a stable and measured of life. But even then, the Russians coped with difficulties, therefore, our people know best how to survive the crisis. Of course, many still with horror recall the instability of 1998-1999, which was the result of such serious changes in our state. It is worth noting that the government took sufficiently tough measures to resolve the situation then, but it paid off. Perhaps today the leadership of Russia will think about working out the same way. But this is only an assumption.
After overwhelming hyperinflation in 1998-1999, a period of calm began, and the collapse was repeated in the 2000s. The crisis of 2008-2009 was remembered by 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 an effective government plan helped the country quickly cope with difficulties. How long the crisis in Russia will last, this time is hard to imagine.
World Crisis and Russia
It was not in vain that Vladimir Putin openly declared in 2008-2009 that the financial crisis in the country was exclusively due to the fault of the USA. The world collapse of the 2000s really began in America, but a year earlier than it happened in Russia. Experts believe that the economic collapse that began back then is still present in the economies 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 negative dynamics, falling by 0.7%. Analysts also noted a record number of unemployment, because about 199 million people were on the street. It is hard to imagine what was happening during this period in most states. There is a crisis in the country, nowhere to work, products have risen in price, and living standards have slipped to the limit. It is not surprising that 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. During the next economic crisis, the French and Germans simply choose a resort cheaper or cancel another shopping, unlike our citizens, who save almost everything. But Russia successfully coped with the difficulties this time, although many analysts claim that many problems were simply put aside for a long time.
The causes of the crisis of 2014-2015
And indeed, if the state then exerted the maximum amount of effort, then perhaps another collapse could have been avoided today. But the financial crisis overtook Russia again and hit it with renewed vigor. Although, specialists just do not call the reasons for the collapse of 2014-2015. The onset 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 a negative impact on the Russian economy, and anti-sanctions further aggravated the situation in our country. The geopolitical situation has escalated to the limit, the price of oil has fallen sharply, and the financial market has never before shown a negative dynamic. At this moment, the crisis of the Russian economy had just begun, and already almost all analysts said that it 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 last as long as possible. It is not surprising that today less and less citizens of our country are listening to the opinions of political scientists and analysts who are trying to talk about what will happen in Russia in the near future.
Crisis Survival Theory
The country is in crisis. And not just regular financial difficulties, but serious problems that make even the Central Bank follow the government’s lead. The financial market shows a sharp decline, the ruble collapsed, and frightened citizens save themselves by investing their savings in a wide variety of directions. The key rate rises, and the lines at currency exchange points still remain. More and more financiers shrug their shoulders and say that the reason for this chaos is speculators who, taking advantage of the destabilization of the situation, began to work actively in the market. No one knows when the crisis will end in Russia, so everyone is trying to prepare as much as possible for the protracted 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 massively buy the dollar and send their savings to the financial market. In general, a similar situation persists today, so it makes sense to talk about those areas that can bring maximum income to investors this year, because the worst thing that can be done today is to store rubles at home. On how competently a potential investor will manage his savings now, his income will depend on tomorrow, professionals say.
Bank deposits
It is not surprising that the very first financial instrument considered by Russian citizens at the end of 2014 was a bank deposit. The economists' forecast for Russia sounded as negative as possible during this period, and it was important for investors to maintain their savings and earn substantial money. Money must be profitable - this is an unwritten rule that almost everyone today follows. 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 did everything to ensure that interest rates on deposits looked as attractive as possible (for example, 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 even no doubt sending their savings to the bank at high interest rates. Unfortunately, recently the Central Bank began 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 the investor a stable income.
Precious metals market today
Those investors who are actively working with such a financial instrument as the precious metals market know how to survive the crisis and still earn money. At the end of 2014, most experts did not recommend investors investing in this area. Gold not only lost its attractiveness, 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, an ounce of gold has begun to be offered on the market much more, and experts have completely changed their forecasts. In general, among the precious metals today there are applicants who are guaranteed to bring their owners a high income, for example, platinum, which promises to please investors with an increase in value in the near future. 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, problems of a global scale cannot affect such a large state as the Russian Federation. It is for this reason that many investors have chosen to choose FOREX as their main financial instrument, which can bring considerable profit to a player with qualified work. Unfortunately, today quite a few ordinary citizens of Russia are free to start working on FOREX. For this, the potential player needs to learn at least the basics, although many have decided this year to use the help of a qualified manager or the services of a management company that guarantee their customers not only income, but also complete security for investments. For FOREX beginners, such conditions are enough to invest savings in such a volatile financial market.
Stocks and bonds
Well, the last financial instrument that was highly sought after by investors this year and continues to be popular today is stocks and bonds of domestic companies. When Russia will end the crisis, no one can say, but the fact that the securities of Russian organizations today could bring their owners high income is a fact. Just like the FOREX market, this year the domestic exchange turned out to be extremely attractive for investors who are comfortable working with similar financial instruments. Many shareholders transferred their investment portfolios to professional management, some worked independently, but in any case, each investor was able to receive income from Russian companies this spring. The ruble gradually gained strength, and quotes instantly increased, which became 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 higher and more stable results, which means that investors should continue to work with this financial instrument in the future.
