Russian government officials have failed to stem the fall of the ruble in the worst economic crisis to hit the country since the Russian default of 1998.

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The Russian ruble hit historic lows relative to the dollar and the euro early this week. In what analysts and government representatives are describing as the worst crisis since either 2008-2009 or the Russian default of 1998, the national currency was trading for as little as 80 rubles to the dollar and 100 to the euro on Tuesday, having undergone a 10 percent decline in just a single day.
Efforts by the Central Bank yesterday to stem the collapse failed. After it hiked interest rates from 10.5 to 17 percent, the ruble briefly recovered some of its value, but then resumed its downward spiral. Some experts say the central bank's dramatic moves only worsened the situation by spreading a sense of panic.
On Tuesday, the US moved to deepen the ruble crisis with the announcement from the White House that President Obama would sign a bill by the end of the week authorizing him to impose harsher economic sanctions on Moscow and send lethal military aid to Ukraine.

I will admit that I have a difficult time grasping what the reality is in all this. Is the situation as dire as the Trots make out?