Posted on 05/30/2022 3:24:20 PM PDT by JonPreston
Recommended reading — how did the Soviet Union end.
US centric thinking was the heroic Ronald Reagan’s commitment to the Strategic Defense Initiative forced Russian spending to counter it and they could not manage that.
Better thinking looks at the price of oil in that timeframe. Reasonably high early 80s, cut by more than 1/2 in late 80s. Alaska oil arrived followed by the North Sea. Gutted Soviet revenue
But best thinking of all is the Soviets made what proved to be a horrible mistake in having monetary policy actually make sense. Their Central Bank was not empowered to QE beyond the economics ministry’s planning. The CB was not independent and capable of whimsical creation of meaningless pieces of paper that counterparties assigned value to.
THAT is why the Soviet Union fell. Go do some reading about the limits of their banking.
Those limits no longer exist. They can flood Russia with meaningless money, just like we do with the Fed’s QE.
“”This immediately covers more than 2/3 of oil imports from Russia, cutting a huge source of financing for its war machine,” Charles Michel, president of the European Council, said in a tweet on Monday.”
“”This will effectively cut around 90% of oil imports from Russia to the EU by the end of the year,” European Commission President Ursula von der Leyen said in a tweet on Monday.”
“On Friday, Bank of America analysts said European crude oil imports from Russia had already fallen by some 700,000 barrels per day”
https://www.businessinsider.com/european-union-leaders-russian-oil-2022-5
In 2050, when the earth is completely underwater.
A triple amen to hat one.
and now the helicopter money from FED is causing natives to become restless. Inflation is eating up their raise plus much more. Housing is suddenly losing sales by double digits due to doubling of mortgage interest rates in just over a year. November elections should be interesting. I will stay up all night watching results, but I do that on every presidential election nights anyways.
That is o.k. They got rid of President Trump and replaced him with Lying Joe Biden. That was what they wanted to do. The Republican and Democrat Parties united to accomplish that. With any luck gas will go to least least fifteen dollars a gallon. Hamburger meat to twenty five dollars a pound. And electricity will be a thousand dollars a kilowatt hour. Heating oil will be twenty five dollars a gallon. It is what the Biden voters voted for.
Lying Joe has a high tolerance for your pain. No matter how bad you hurt, it does not faze him. In fact, it would not bother him at all if you had to pay seventy-five dollars a gallon. And Hunter gets a credit card from one of Lying Joe’s Lobbyists to pay for his gas, crack. and hookers so again it is no skin off Joe’s ass if you hurt.
If they are banning 2/3 of Russian oil but the price is increasing significantly and have to be paid in Rubles....
Hypothetically using round numbers to make the math easy...if Russia sold oil at $50 and it is now sold at $200/barrel, then that means they can sell less oil and still make money and save their oil reserves.
The only way to cripple Russia is to destroy the pipelines into the EU. That should just about do it.
Then all the electric vehicles and solar vehicles can make Europe clean and an example for the entire world. They can even use solar to heat their houses in the winter and maybe even fly their jets with solar power...hahahahahaha
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.