China, Russia Sign CNY150 Billion Local-Currency Swap As Plunging Oil Prices Sting Putin

Zero Hedge ^ | 10/13/14 | Tyler Durden

[Enlightened1]

While it is beyond a doubt that the primary catalyst for Europe's triple-dip recession has been the nearly two quarters and counting of escalating Russian sanctions that were supposed to solely harm Putin (because who could have possibly foreseen that plunging German exports to Russia would have a far greater impact on the export-driven German economy), the truth is that the Kremlin itself is starting to hurt, if not so much as a result of the European trade embargo but mostly due to crashing oil prices, which have been driven lower almost exclusively by Saudi Arabia as part of its most recent secret bargain with the US, a bargain which as we read today is likely to tear OPEC apart.

[RC one]

To be sure, some such as Bloomberg, are skeptical that the unprecedented pivot by Russia toward China as it shuns the west, will merely harm the Kremlin. Others, however, wonder: who will be left standing: Europe, with its chronic deficit of energy and reliance on Russia, a country overflowing with natural resources, or Russia, whose economy is currently underoing a dramatic and painful shift, as it scrambles to dissolve all linkages to the Petrodollar and face the Gas-O-Yuan? Perhaps it is worth refreshing this subject in a few months, after Europe's economic situation is made far more clear after what is sure to be a long, cold winter.

Wow...who could have predicted this?

[Para-Ord.45]

USA and Suafi Arabia agreed to let oil prices continue to drop without lowering production in an attempt to harm Russia.

It will fail

[wetphoenix]

Of course it is China to benefit the most from Sino-Russian rapproachement but I don’t think it is a good news anyway.
On the other hand it seems like reestablishing of Communist rule in Russia is one of the major objectives of Obama’s foreign policy, so among other means, breaking ground for Russia to ally itself with Communist country makes perfect sense on that terms.

[RC one]

I think this developing Russo-Sino alliance is a clear and present danger to the US.

[wetphoenix]

The only problem is that Obama administration is that enabling it. Russia and China were in a state of Cold War for about 50 years.
They had some token military exercises together, backed each other in UN for PR reason but it was meaningless until now.

[SunkenCiv]

And twenty or thirty one-crapnik bills make one effective and inexpensive tampon.

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