Posted on 12/15/2014 2:41:40 PM PST by Berlin_Freeper
Russia's economy is crashing and its currency appears to be in free fall.
The ruble plunged by about 12% Monday, meaning it's lost nearly 50% against the dollar this year. Early Tuesday in Russia, the central bank hiked its key interest rate for a sixth time this year to 17% from 10.5%.
(Excerpt) Read more at money.cnn.com ...
You are exactly right. It could come any day.
No, it doesn’t. Russia has a market cost of producing oil that doesn’t change when their phony-baloney currency changes in value, because oil is sold on a world market, and they must buy plant and equipment to produce and transport oil on the same market. Devaluing their currency doesn’t do anything but screw the Russian people — not just their oil workers — but everyone across the board. It amounts to an enormous tax on the Russian people to keep their Chinese contracts satisfied, and it doesn’t change the fact that in gold, or dollars, or other commodities that Russia must buy they cannot pump oil out of the ground for the $2/barrel that the Saudis can. Russia cannot win a gas war with OPEC via devaluation.
You are correct.
Devaluing their currency makes their oil the cheapest on the planet.
It might even be compelling to holders of US debt.
I can't see any of this as an accident.
I’m with you on oil but housing bubble??? Gonna have ton convince me on that one given the historically low building rates...
And destroys the Russian economy for decades. Russia cannot win a oil price war it is a lose lose end result.
The one thing Russia does have that is economically important is their natural gas exports, but watch Putin screw that too.
As others have expressed this may result in Putin starting a war in the middle east.
Falling price, but not real fast.
I wouldn’t be a bit surprised if PUTIN wasn’t the one urging ISIS and Iran to start trouble in the Middle East. What’s the old saying? “THE ENEMY OF MY ENEMY IS MY FRIEND”. This is why it makes sense that we continue producing as much oil and gas as we can. We are already producing more oil than Saudi Arabia, and we are still the largest gas producers in the world. If our politicians are smart, and I have real doubts that they are, they would encourage the production of ALL our natural energies. I do believe that Putin will create as much problems for every one in order to get his way.
Which means that their oil revenue will have the lowest return on the planet. You need to learn something about economics.
That MAD TV skit never get old
BTW I hear Vlady messing with my former hood Alaska
Obamma mamba jamma lenin khomeini wants war...no doubt..
Is it not meet ...and utterly predictable....that obama... hatchet-man for advancement of the progressive commie paradigm...should leave the next conservative president ....adherent of Constitutional design.....a friggin’ QUAGMIRE to wrassle with; foment a clusterf**k at which progressive commies may snipe?
Breaking eggs for the evil omelette.
The masses are expendable.
The one thing Russia does have that is economically important is their natural gas exports, but watch Putin screw that too.
For Russia, what’s more important than the gas is who is the customer. IF the EU countries decide Putin is an unreliable business partner and seek their gas elsewhere all he has left is dancing with the chicoms. I saw a report Italy is already looking at Tunisian gas. Lithuania is already off to get off the Russian NG grid.
At some point, babysitting Russia just isn’t worth the trouble. We seem to be reaching that area quickly.
There’s definitely a housing bubble in Houston.
I see. You mean to teach me that when the price of something drops, people buy less of it, is that right?
If you understand it, you'll understand why your arguments make no sense what ever.
The boss calls his #1 salesman, a very personable guy who works well with people but doesn't understand numbers, and says, "Bobby, I thought we agreed that since were were losing $50 per widget, we would suspend sales until after the the board approves a rate hike."
Bobby replies, "Yeah I knew we were in financial trouble. So I offered an additional 50% discount to boost sales even more."
The boss is literally purple. He's about to jump through the phone. "G**dammit Bobby! We were already losing $50 on every unit we sold AND YOU OFFERED A DISCOUNT!?"
Bobby leans back in his chair and says, "Boss, I got to hang up now. I have a guy on the other line who says he's going to buy a million of these things! A million! Can you believe that?"
[Please send me a private email if you don't understand the point of the joke.]
The N00B is strong with this one. BTTT. We are living in interesting and dangerous times. SA is the proverbial snail crawling across the edge of the razor blade.
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