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In 1998, the ruble is almost fully depreciated. As a result, many people were forced to cheat and to go to various tricks for the sake of survival. Many lived from hand to mouth, money is not enough even to the necessary minimum. Holders of dollars are really lucky: exchanging currency, they got a "cushion" of safety. Some even managed to capitalize on the fall of the ruble.
As the default hit on a simple population, and is it true that people had to eat vegetable cropping and pig ears? Pectrum gathered basic facts about the hungry nineties.
Not money, but worthless pieces of paper
In the late nineties in Russia was chaotic. The economy is still reeling from a grocery shortage as it is powerful financial hammer hit the currency. The dollar actually knocked the ruble from the world market. For people this meant a complete devaluation of all savings and earnings. Imagine: today, people work for money, increasing their skills, and tomorrow, his work can be called public, that is free. Add to that a wife and two or three children and appreciate what desperation drove people default.
the Ruble has fallen unexpectedly, which led to mass hysteria. Just a day before the economic disaster all the grocery stores filled with people. Bought everything from chocolate to toilet paper. Children happily ran between the shelves — because the basket could put everything! Only here the parents remained gloomy and sad. Adults knew that tomorrow will bring complete devastation of the family budget. The next morning the RUB has turned into worthless pieces of paper. People just threw bills off the balcony.
Pig ears and Apple pruning
came "black Thursday". In fact, Russia has officially recognized their financial incapacity. Internal and external debts could no longer be enforced. The dollar has risen in price almost twice, which led to the rapid growth of the prices in the shops. In early 1999, one dollar was worth 21 rubles (six months ago, the currency gave 6 rubles). "The rapid growth" — this is not the current galloping inflation of 8%. Then the price of food could a few days to grow in two times. Consumer basket, which cost 100 rubles, were now people in 1500 rubles.
To the markets and the stores customers come like in museums. To look and laugh. Often people do not have enough money on goods that are related to the mandatory minimum: vegetable oil, bread, cereals, milk. The government has made weak attempts to save the population from a terrible famine. Periodically among the population was distributed ration cards, on which you can purchase vital goods. But it still lacked. Especially seriously during the crisis, suffer little children, pensioners and pregnant women. For them, the default bordered with survival. Hard to believe, but on the dining table while what could easily be pig ears, Apple or potato peels.
People went "underground". A former businessman, has completely lost income, moved into the village and there was a return to subsistence farming. Chickens, goats, growing vegetables in the garden leave at least some chance of survival. Often families in suburban homes lived with no heating — don't have to buy even firewood. Children and adolescents were sent into the forest to gather mushrooms and berries. Others were hit in illegal activity: grow a poppy at home, were stealing the potatoes in the fields and corn, speculated if possible.
the New rich
Those who had currency at the time of default, were considered kings. Capital, represented by dollars, have multiplied. Before the crisis, the future rich are also buying up products at more normal prices and trying to get rid of rubles. Of course, wages have fallen, as well as throughout the country. But monetary "safety cushion" has helped to survive to a financial thaw. Gradually, the dollars were exchanged for rubles, which went for food.
a Few of the default benefit. The most enterprising owners of the currency invested in shares of foreign companies or foreign firms. A few years later, when the situation in the country stabilized, the capital of depositors had increased. Such options — the exception rather the rule. The 1998 default was very reminiscent of natural selection, because it was not about welfare but about survival.
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