Liam Halligan: Volatile Russia could be bad news for everyone

By Liam Halligan
The Telegraph, London
Saturday, December 20, 2014

"Be careful what you wish for, because you just might get it."

Some say this aphorism has Spanish origins. Others attribute it to Oscar Wilde. Wherever it comes from, as sayings go, this one contains much truth. Getting what you want can indeed have unseen and unpleasant consequences. That's worth remembering, as we celebrate cheaper oil while watching the Russian rouble plunge.

Since midsummer the rouble has largely tracked the decline in global oil prices. Last week everything changed. Crude remained stable but the Russian currency collapsed, losing a third of its dollar value in a day. Responding to "Black Monday," Russia's central bank hiked interest rates from 10.5 to 17 percent. ...

We Westerners can cheer on Russia's economic problems. We can hope for a full-on currency collapse and rub our hands with glee. If that happens, though, Russia's next leader could make Putin seem like a softie. We could also provoke a repeat of the systemic global meltdown of 2008 -- in which the big Western economies would suffer more than most.

... For the full commentary:

http://www.telegraph.co.uk/finance/comment/11305686/Volatile-Russia-coul...