Moscow Crash

The Moscow Crash was a global financial crisis in the Trinity Universe, beginning in 1999.

History

Other weaknesses in the global economy set the stage for the Moscow Crash, and Russia itself had long been struggling with the depredations of organized crime on its economic growth, but the main event occurred on February 18, when President Boris Yeltsin died unexpectedly of a heart attack. His death precipitated the collapse of the Russian government and economy, as other politicians — many backed by organized crime — scrambled for power. Vice President Andrei Srebriansky officially succeeded Yeltsin, but lacked public support; across the Commonwealth of Independent States, secession and abrupt withdrawal from the ruble zone sent shockwaves across the world economy.

Global stock markets plunged within hours of Yeltsin's death, with most posting their worst-ever single-day losses. Immediately, national governments and international organizations took steps to control the damage: stock exchanges were closed, international currency markets frozen and international loan payments suspended. Many nations also pre-emptively issued price controls on consumer goods to prevent price gouging. These measures slowed the crisis but were not enough to stop it, with riots breaking out from the Nikkei stock exchange in Japan to the DeBeers diamond mine in Namibia. By contrast, organized crime flourished, especially in Russia, as desperate people turned to black markets to supply necessity when legitimate businesses collapsed.

On March 1, Project Utopia announced that it was working on a solution to the crisis, and offered the assistance of its novas to any relief efforts. By April 30, unemployment and homelessness in most of the world had quadrupled, and riots broke out over food in London, Karachi, Vladivostock, Hong Kong, Sydney, and Los Angeles. Project Utopia novas helped distribute supplies, construct housing and prevent the disruption of utilities.

By June, the International Monetary Fund admitted there was nothing it could do to resolve the crisis. On the advice of Project Utopia, the United Nations resolved to freeze exchange rates around the world, a move that stabilized the world's industrial economies at the expense of runaway inflation in poorer nations. Japan, the country hardest hit by the Crash after Russia itself, announced the Saisho program in November to promote the participation of novas in the economy.

By July of 2000, economic indicators were improving, allowing the exchange rates to open up again. In August of that year, Srebrianski's Treasury Minister Vladimir Sierka erupted as a nova, and immediately conceived of a way to stabilize the fractured Russian economy. The Russian Confederation was formed in 2001, resolving the last echos of the Crash.