On Friday, Russia's central bank announced that its foreign currency reserves--a key part of its economic stability and an indicator of foreign investor support--had plunged $16.4 billion in the most recent week, to $581.1 billion (see chart).
Until Russia's move into Georgia, there seemingly had been only massive capital inflows, thanks mainly to the rising price of oil, which makes up 20% of Russia's gross domestic product.
Now, it seems, investors are fed up with the rampant militaristic nationalism, red tape, corruption and anti-investor sentiment in Vladimir Putin's Russia. Some have decided to head for the door and take their money with them.
Last week's decline was the largest since Russia's 1998 currency crisis, which led to a collapse of the ruble and rampant triple-digit inflation. So far this time, there's no major visible impact on Russia's economy. But if the flow of money leaving Russia turns into a flood, it could send Russia's markets into a tailspin, creating massive problems for Prime Minister Putin and his handpicked president, Dmitri Medvedev.
I find a perverse pleasure in knowing that someone/someones have tweaked the Bear's tail.
6:44:09 PM 
