Posted on 12/16/2014 3:14:47 PM PST by Star Traveler
WASHINGTON (AP) -- Russia's suddenly escalating financial crisis risks spilling beyond its borders and endangering parts of the global economy.
With economies in Europe, Japan, China and Latin America already ailing, fresh threats have emerged from Russia's shriveled currency, its move to dramatically boost interest rates, the damage from plummeting oil prices and Western sanctions over Russia's action in Ukraine.
The alarming 10 percent drop in the ruble over the past two days has amplified the economic turmoil in Russia. Investors fear that Russia may default on its foreign debt obligations - a move that would inflict hundreds of billions in losses on lenders abroad.
(Excerpt) Read more at hosted.ap.org ...
I like the low prices too.
Although don’t ever tell me again that the oil prices are not manipulated. We can clearly see it cab be driven any time they want.
What I find most interesting is the following.
The Admin station is using the same tactic the Reagan Admin to defeat the Soviet Union. Every time we bought a tank the Soviet Union bought 10, and it eventually bankrupted them.
However, Russia economically are Capitalist and not Communist. They have a 13% flat tax and nothing else.
http://en.wikipedia.org/wiki/Flat_tax
The lower gas prices is going to be a boom for businesses around the world. This is because it will not cost so much to fuel the trucks, planes, etc... The cost of doing business will go down which means more people will be hired, and that translates into more tax payers.
I don’t know who fooled the Admin to think this would hurt Russia. It’s going to do the exact opposite. Now if the Russians were communist economically, then yes it would work. However, again they have a 13% flat tax. This is going to help Russia and not hurt them.
my spidey senses are tingling. Consider SHTF on a nation scale. You need food, can't afford to buy it, your neighbor has plenty.
Whachu gonna do, starve ?
Not much room in the market for more fiat money; China and India grabbed all the gold.
What's left ? Land. Other People's land.
That’s less than two years from that date, so ... we’ll just see ... :-) ...
A Putin embargo of petroleum products would not work out as you have described. The Saudi oil minister has already said that they don't care if the price of crude drops another $20/bbl, therefore the Saudis would pick up the slack for Europe. Likely the Qataris, who are super flush with NG, would pick up the slack in natty.
Altruism from the Ay-rabs? Hardly. Look at the advantages they garner from stepping into Russia's shoes as supplier. Probably gain long-term customers AND have these new customers spend a bundle on infrastructure? Check. Probably negotiate all sorts of social advantages/programmes for the otherwise-soon-to-be-despised Muzzies in Europe? Oh, yeah. Sticking a fork in a competing supplier's eye? Absolutely...that's half of what this price drop is all about. (The other half, btw, is a combination of attempting to damage fracking/alternative production worldwide AND regaining the absolute whip hand over several recalcitrant OPEC nations).
And never mind my thoughts on this situation, ok? The mkt is ALREADY coming round to my view. Didja see the 650 bp one-day rise in Russian short rates? They didn't do it for practice, laddie; they bumped the rates (and they will again, have no doubt) to forestall an absolutely horrendous currency crash. Anyone who thinks otherwise simply doesn't remember recent history.
Specifically, July/August 1998. VSO's (Russian short-rate instruments, not unlike Short Sterling or Eurodollar) hit **85%** just before the Russian default and currency debacle. Here's a hint: their short rates are not anywhere near 85%...yet.
Russia isn't going to replace anybody at anything in this economic/crude price cycle.
FReegards to you, but you really should find a different horse on which to bet.
In all politeness, you are delusional. This impending collapse will solidify the socialists grip on our country. Most of our country gets a check from the government including many Social Security dependees on this forum. These will people will elect the party the protects their well earned and long promised benefits.
Beck this morning in agreement with this headline. Hannity this afternoon suggesting the opposite. Hannity doesn’t get it, underestimates Putin.
Beck is sensationalistic, Hannity is rational ... :-) ...
Obama has racked up more debt than all the previous presidents combined .
http://www.gramsgold.com/news/obama-racked-up-more-debt-than-all-presidents-combined
the media hides all this and instead talks about a football player hitting his wife in an elevator, ebola(where is that now after the election) etc.
I’ve had a gut feeling for time that the GOP and conservatives are being set up. The left will crash the system, just like late 2008 when McCain was polling ahead of 0bama.
If the economy crashes in early 2016, the media will howl that the cause was GOP policy. The LIV will eat it up and vote in some slime even worse that 0bama.
Gerald Flurry preacher has been all over the Germany-Russia thing for years...he’s the Philadelphia Trumpet magazine editor...some may call his church a cult...that said he’s spot on...Beck was all over this today, too...we should not ignore these guys...God also used a donkey and a weirdo named Rasputin.
“by election time in 2016 the USA and world will be in a full depression (mark my words you heard it here first). This will allow Republicans to finally capture a super majority in Congress which will allow something to finally be done about this huge government and tyranny”
More likely under Boehner and McConnell’s leadership, over the next two years the Republicans will give Obama everything he wants (amnesty, preservation of Obamacare, tax increases under the pretense of tax simplification, lower defense spending, etc. while sending plenty of port to their Chamber of Commerce supporters (just like Hastert and Frist did in the 2000’s). Obama and the Democrat candidate in 2016 will blame the depression on Republican obstruction and giveaways to the wealthy. The conservative base will stay at home in disgust and the Democrats will the White House and take back the Senate.
“Putin could embargo Russia’s ~~ 8 million barrels per day of oil, and embargo Russia’s exports of 1/3 of Europe’s natural gas.”
As far as natural gas to Europe is concerned he doesn’t have to embargo. He can just raise the price. There is no place the Europeans can go to replace Russian gas in the short to medium term. Pay up or freeze.
The purpose of our economic warfare against the Russian rogue state is not to make them fold, it’s to hurt them, and it’s working.
“Russia is feeling very threatened. Countries have gone to war over lesser provocations.”
More accurately, the people who rule Russia are feeling very threatened. Making war to keep power is the danger.
“Russia’s suddenly escalating financial crisis risks spilling beyond its borders and endangering parts of the global economy.”
It’s the friggin’ AP. Who besides leftist commies, fascists and Nazis believes the liars at AP?
Preppers’ PING!!
I agree with you onona, things may go south very quickly. As you said it wouldn’t be the first time a war was started because a country when bankrupt.
This will allow Republicans to finally capture a super majority in Congress which will allow something to finally be done about this huge government and tyranny
***
Unless Obamugabe has already declared martial law and suspended elections....
I believe we could be seeing the global chess board positioning for WWIII. It’s all falling into place for it.
I hope something will happen that will stop it.
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