Posted on 09/16/2008 4:01:23 PM PDT by Fred
Ah, what a shame.
Looks like the Russians will have no choice but to sell their oil to Europe, they are going to need the money.
Huh. Wonder how they’re going to pay for their next invasion.
Starting when Clinton sent Richerson to OPEC to ask them to raise oil prices so russia could charge more and pay off the loans clinton gave them. The economy of russia and the price of the dollar and oil were pretty much tied together. It became an oil based economy screwing the western european countries.
Oil has dropped below 100, their economy is screwed also, their recent activity in Georgia makes trade a problem for them.
At least the market there understands the situation.
This is what happens when you base your entire economy on energy exportation, but due to mismanagement and nationalization policies, your output is rapidly decreasing, rather than increasing. After what Putin and his crew of Kremlin thugs did to BP and Yukos, foreign companies have slowly been pulling all their resources and money out of Russia.
Dear Hugo,
We have decided to donate to Venezuela that part of our navy currently in your waters. Enjoy!
Sincerely,
Vladimir
Foreign investors have been pulling out of Russia since the invasion. Putin wrote a check he can't cover.
the Georgian chickens coming home to roooost...
Unnnnh....Democrat Congress working on a bailout maybe?
Come on Pooty Pute! Say something nice and make it all better. Everyone knows totalitarian governments are so much better than the democratic ones.
The point is it reveals an intimate connection between their shaky stock finances and openness to the west and the west's deep pools of liquid capital. Without that access their markets are disfunctional.
I wonder if this will touch Putin at all ...or his mini-me.
When you’re Putin, you simply raid what’s left of your country’s economy. For all we know, that might entail locking up one or two of Russia’s many billionaires, confiscating all their wealth in the process.
Its hitting him and his KGB billionaire inner circle right in the nads like a judo kick. These are capital destruction type events.
After what Putin and his crew of Kremlin thugs did to BP and Yukos, foreign companies have slowly been pulling all their resources and money out of Russia.===
You are also forgetting about Shell and their Sakhalin disaster, plus all small things that never got much publicity, like scewing SecGe and bunch of other foreign banks on ISDA arrangements back during the days of default, mishaps with Conoco, Mechel, overnight 100% increase of gas prices to end users (Georgia stands to be a good example of that), etc
I’m no economist, BUT...
Wouldn’t this just lead to Russia quickly taking over all of its failed businesses and nationalizing everything and going back to their evil government controlled and sanctioned ways?
Don't they already have that? besides, for them to do this still would require a huge cash call on foreign and pension fund reserves. If they do that and the oil prices continue with the current tendency, they will have no money to pay salaries next year.
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