Ruble Currency Crash

[BLANKBLANK 4,414]

 

It's on like Donkey Kong.

 

Western sanctions and Saudi oil price cuts are working out exactly as planned. This will not end until there is a revolution in Russia with a Western approved government or the complete collapse of Russia... again. Up next Russian default and blowback in today's ridiculously connected banking world.

 

http://www.zerohedge.com/news/2014-12-16/russian-ruble-hereby-halted-until-further-notice

[A Nonny Moose 8,261]

This is the second major crash in Russia in my lifetime (the first one was the end of the cold war).  They don't get it?  The rules are  "play nice, or we'll fix your economy".  Criminal behaviour and greed are their own reward.

[hym 358]

Out of curiosity, where is the evidence that Saudi Arabia is engaged in a coordinated effort to hurt Russia? Thus far, Saudi Arabia's behavior can be explained by normal business decisions.

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Hym: The Saudi's motives are simply common knowledge and posted on the MSM.

 

http://nypost.com/2014/12/14/saudi-arabias-oil-war-against-iran-and-russia-2/

 

The Saudi's flooded the market with oil in 1986 to squeeze Russia and this time they're maintaining oil barrel extraction to create a supply glut so as to lower prices and squeeze Russia once more. Saudi's decisions are both political and business.

 

 

A Nonny Moose: Both sides have played dirty with Ukraine, oddly enough the US and NATO have given Russia a verbal slap on the wrist for Chechnya and the Georgian war of 2008 which were far more serious and deadly than what has transpired in Ukraine. But Russia has committed the deadly sin of trying to abandon the dollar thanks to the efforts of the BRICS to create a system of trade and financial transactions devoid of the dollar.

 

Saddam and Gaddafi had similar plans and both were swiftly toppled. These were the first skirmishes of what I like to call the Petrodollar War. As I said it is on like Donkey Kong. Once Russia is crushed then China will be next and Western hegemony will be complete- whether that's a good thing or a bad thing is up to ones perspective. Forget all about morality, diplomacy and a righteous cause- it's all BS, A mere cover for preserving the dollar's global reserve currency status. Long live the dollar!

[A Nonny Moose 8,261]

Poor dollar.  It is such a poor fiction for real value.

[Sabretooth78 808]

 

Western sanctions and Saudi oil price cuts are working out exactly as planned. This will not end until there is a revolution in Russia with a Western approved government or the complete collapse of Russia... again. Up next Russian default and blowback in today's ridiculously connected banking world.

 

http://www.zerohedge.com/news/2014-12-16/russian-ruble-hereby-halted-until-further-notice

 

If that ends up being the case, let's hope it doesn't turn out like the...well, just about every other time the US has had a hand in a country's revolution.

 

Has one ever actually turned out in "our" favor?  (And by "our", I mean the citizenry, not the M-I-C.)

 

Then again, it would seem we're due for one to genuinely go right.

 

As for the dollar, it will eventually go supernova.  By this point it's probably a foregone conclusion; the only question remaining being:  When?  The "reserve currency hegemony" will only buy some time during which we can continue along the current path so as to ensure the ultimate crash will only be that much more hurtful.

[KonstantinII 1,106]

Once Russia is crushed then China will be next and Western hegemony will be complet

 

Yeah right. And the odds of your "Western hegemony" happening are practically 0. You said Russia will be crushed...what makes you so certain? It is after all, the land where all empires come to die. And you said China will be next. I highly doubt that. Is very unlikely, considering that China has the world's biggest army, navy, economy, population etc. etc. In fact, it looks as if China is poised to take over the world by the end of this century. No matter what, China will win. It certainly seems that way.

 

This is the second major crash in Russia in my lifetime (the first one was the end of the cold war).  They don't get it?  The rules are  "play nice, or we'll fix your economy".  Criminal behaviour and greed are their own reward.

 

You're talking like any economical crash in Russia is a good thing. I've heard much such gloatful talk from you lately.

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Once Russia is crushed then China will be next and Western hegemony will be complet

 

Yeah right. And the odds of your "Western hegemony" happening are practically 0. You said Russia will be crushed...what makes you so certain? It is after all, the land where all empires come to die. And you said China will be next. I highly doubt that. Is very unlikely, considering that China has the world's biggest army, navy, economy, population etc. etc. In fact, it looks as if China is poised to take over the world by the end of this century. No matter what, China will win. It certainly seems that way.

 

That was a bit of sarcasm on my part, but that is what NATO is trying to do. IMO there's going to be massive blowback thanks to derivatives blowing up in oil commodities, Russian GBs and oil companies. That will trigger a chain reaction and yet another trillion dollar bailout (make that dozens of trillions) of the Western banking system. I just pray to God this does not descend into a hot war, I fear MAD is being forgotten due to extreme complacency.

[KonstantinII 1,106]

 

 I just pray to God this does not descend into a hot war

 

 

All the governments of the world have more than enough nuclear weapons to totally eradicate human civilization on Earth. That is why this is such a dangerous time of us, is when our technology becomes more advanced than our social structure. But I think that we have already passed the age when a full-scale global war would have been possible. We have the internet.

[hym 358]

Hym: The Saudi's motives are simply common knowledge and posted on the MSM.

 

http://nypost.com/2014/12/14/saudi-arabias-oil-war-against-iran-and-russia-2/

 

The Saudi's flooded the market with oil in 1986 to squeeze Russia and this time they're maintaining oil barrel extraction to create a supply glut so as to lower prices and squeeze Russia once more. Saudi's decisions are both political and business.

 

US tabloids should not be considered reliable sources of anything.  Some have freely admitted that they purposefully distort or even fabricate stories to drive readership.  The New York Post is basically another tabloid.  No serious journalist with any degree of self-respect would refer to Putin as "Bad Vlad."  All the opinions expressed by the author need to be taken with a heavy dose of skepticism concerning his authority to offer such an analysis.

 

It may be of value to read this Reuters article from October.  It nicely explains the connection between current events and events of the 1980s.  Additionally, an analysis of Saudi Arabia's actions in the 1980s, along with a nice composition on petrodollars and their effects on oil pricing, might also help explain what was happening in the 1980s.  Slate also has a nice entry talking about why the whole "Saudi Arabia is trying to hurt Russia" theory doesn't make a lot of sense.

 

I would like to ask a question.  If Saudi Arabia is doing this to stick it to the Russians, why is it charging Europe and Asia higher prices for its oil, while offering the United States discounts?  Europe depends heavily on Russian oil imports, while the US does not.  If you want to hurt the Russians, why do give their most important customers an even bigger incentive to buy Russian oil?

[Duke87 1,070]

I'm not sure why there has to be one reason. The Saudis are obviously targeting the US but I'm sure they don't mind if they hurt some other opponents in the process. The IS folks who depend a lot on oil for $$$ are hurt by this as well. As is Iran who cannot balance their budget without relatively expensive oil. Russia is probably more collateral damage than anything else to the Saudis, although it does help the western nations attempting to put them back in a cage.

[ROFLyoshi 1,760]

I honestly do not believe Russia will crash and fall. It has too many resources and can become independent on the rest of the world. The fall of the Soviet Union did not damage Russia in the way some of the central Asian SSRs crumbled.

[A Nonny Moose 8,261]

<snip>

This is the second major crash in Russia in my lifetime (the first one was the end of the cold war).  They don't get it?  The rules are  "play nice, or we'll fix your economy".  Criminal behaviour and greed are their own reward.

 

You're talking like any economical crash in Russia is a good thing. I've heard much such gloatful talk from you lately.

 

I never gloat.  It is unmanly.  However, the current hegemony in Russia is acting like the old Imperium, and everyone knows the Boyars cannot be trusted.  Putin has surrounded himself with a "nobility" that no one in his right mind would turn their backs on.  Individual sanctions against some of them have not resulted in his distancing himself from them.  One wonders who is pulling his strings.

 

The Americans can out-money anyone, and this is their great strength, not their military.  All the muscle is just window dressing and they pay rather a lot for it.  The real power comes from manipulating the world markets.  They are very good at raising people on high before the final cut that casts them down.