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Ruble scrapes new lows as Russia braces for cheap oil
AFP ^ | November 28, 2014 | Dmitry Zaks

Posted on 11/29/2014 11:35:24 AM PST by Tailgunner Joe

Energy-rich Russia's currency extended Friday its slide into record low territory and the government lowered its crucial oil price forecast in the wake of OPEC's decision to leave its output target unchanged.

The ruble shed another 1.6 percent against the dollar and stood near the 49.35 mark in evening trading on the Moscow Exchange. It gave up the same percentage point and was valued at almost 61.55 against the euro -- also a historic low.

The beleaguered currency has been trying to find its footing ever since the OPEC cartel decided on Thursday evening not to cut back production to support oil prices that have fallen by a third since June.

The value of energy on international markets is critical here because Russia -- eager to limit borrowings at a time of extreme tensions with the West -- will generate a whopping 52 percent of its 2014 revenues from oil and gas sales.

But the global energy glut and corresponding price collapse has contributed to a ruble slide that began during the first turmoil in Ukraine this winter and accelerated in recent weeks.

The currency has now lost about a third of its value since the start of the year -- the same as during the 2008-2009 global financial crisis.

Such falls are especially sensitive to Russians who saw their ruble savings wiped out with the collapse of communism in the 1990s.

The Kremlin's approval rating in that era once dipped below five percent.

But Vladimir Putin has proven to be a teflon president whose increasingly militant talk and overtly anti-American sentiments appeal to Russian nationalists and help keep his own support level near 80 percent.

The veteran Russian leader was dismissive on Friday of the turmoil hitting the world's commodity markets and Moscow's own trading floor.

(Excerpt) Read more at uk.finance.yahoo.com ...


TOPICS: Business/Economy; Foreign Affairs; Russia
KEYWORDS: europeanunion; opec; ruble; russia; saudiarabia; ukraine
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1 posted on 11/29/2014 11:35:24 AM PST by Tailgunner Joe
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To: Tailgunner Joe

Collapsing currencies eventually lead to either:

1. Regime change

2. War

3. Both


2 posted on 11/29/2014 11:41:54 AM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: 2banana

Down with the genocidal Putin regime.


3 posted on 11/29/2014 11:43:58 AM PST by Tailgunner Joe
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Comment #4 Removed by Moderator

To: 2banana

Most likely #2


5 posted on 11/29/2014 11:47:33 AM PST by Cowboy Bob (They are called "Liberals" because the word "parasite" was already taken.)
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To: Cowboy Bob

They will invade Europe.

Europe will surrender.

Then Putin will decide the Europeans are too much trouble, and give Europe back.


6 posted on 11/29/2014 11:49:24 AM PST by proxy_user
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To: proxy_user
Then Putin will decide the Europeans are too much trouble, and give Europe back.

Especially the French...

7 posted on 11/29/2014 11:50:21 AM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: Tailgunner Joe
If you name your currency 'rubble' what did you expect?

PS: We will be known as the American Detritus soon.

8 posted on 11/29/2014 11:50:52 AM PST by Lazamataz (Proudly Deciding Female Criminal Guilt By How Hot They Are Since 1999 !)
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To: vette6387

Exactly. Putin will lash out at the foreign scapegoats who he’ll blame for the destruction of his nation, when really it is his own stupid backwards policies which are to blame. Putin’s invasion of Ukraine is not really about Ukraine, it is about trying to keep himself in power. He’s terrified of ending up like his puppet Yanukovich the Ukrainian President who had to flee his own country in the middle of the night with an angry mob at his heels.


9 posted on 11/29/2014 11:51:15 AM PST by Tailgunner Joe
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To: 2banana

I love war. Especially the corpses decaying in the sun, bloated and teeming with flies. Brings a tear of joy to my eye.


10 posted on 11/29/2014 11:51:43 AM PST by Lazamataz (Proudly Deciding Female Criminal Guilt By How Hot They Are Since 1999 !)
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To: proxy_user

No. I’m thinking the Middle East. Something to disrupt the oil flow. The Saudis were a little smug after their victory at the OPEC meeting. Somebody may try to bring them down a notch.


11 posted on 11/29/2014 11:52:31 AM PST by Cowboy Bob (They are called "Liberals" because the word "parasite" was already taken.)
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To: Tailgunner Joe

When I was there (many years ago), it was about 32 rubles per us dollar.

You haven’t lived until you get up early (in the dark and freezing cold),
Walk alone (in the dark and freezing cold) on seemingly empty streets to a currency exchange store,
Exchange money in front of everyone who can easily look inside at what you are doing,
Then walk down those same dark streets like a mark in freezing cold.

I was only confronted once. I was alone.

It was a shorter military guy who got in my grill and demanded something in Russian, which I don’t speak. I was wearing a large parka and I’m pretty tall. I probably looked heavier than I am. I bent down to him and sternly said, “I have no idea what you just said to me,” followed by a stare. He turned and walked away. I continued on my way.


12 posted on 11/29/2014 12:01:51 PM PST by aMorePerfectUnion ( "I didn't leave the Central Oligarchy Party. It left me." - Ronaldus Maximus)
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13 posted on 11/29/2014 12:13:18 PM PST by RedMDer (I don't listen to Liars but when I do I know it's Barack Obama.)
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To: 2banana
Collapsing currencies eventually lead to either: 1. Regime change 2. War 3. Both

It was war that lead to the collapsing ruble, at least partly.

14 posted on 11/29/2014 12:34:53 PM PST by FreeReign
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To: Tailgunner Joe

We can imagine what it is doing to Vene_uela


15 posted on 11/29/2014 12:35:22 PM PST by GeronL (Vote for Conservatives not for Republicans)
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To: 2banana

He will cozy up to the Germans. Together they will squeeze the rest of Europe into submission. The French will go along, and the rest will have little choice.

I bet it will happen without too many shots being fired.

Russia has learned that too much communism is too much. The Germans are sick of the rest of Europe. Britain Is a shell of what used to be and will simply be considered a Muslim third world hell hole.

China will do the same in the East.

We will be left with no exports, crappy currency, and an uneducated mob of welfare animals willing to sell their liberty for an Xbox, a bag of weed, and a box of Lucky Charms.


16 posted on 11/29/2014 1:04:47 PM PST by Vermont Lt (Ebola: Death is a lagging indicator.)
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To: Cowboy Bob

Iran will smack them down hard. One little nuke tossed into their neck of the woods will put them in line real fast.


17 posted on 11/29/2014 1:06:01 PM PST by Vermont Lt (Ebola: Death is a lagging indicator.)
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Comment #18 Removed by Moderator

To: 2banana; Tailgunner Joe; blam; dennisw

Gee, frackers in ND are not happy either.

For the first time in a long time, it might be in both Russia and America’s interest if “something” blocked the Straits of Hormuz for a while.

Not suggesting anything but an odd alignment of stars, and interests. Of such, wars are built. Think of Japan and oil pre-WW2.


19 posted on 11/29/2014 1:17:29 PM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: Vermont Lt

the Germans already have de facto control of the EU. Why would the Germans be interested in sharing a $17 trillion economy with a basket case like Russia?


20 posted on 11/29/2014 1:18:16 PM PST by Natufian (t)
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