http://www.nytimes.com/2016/01/23/w...column-region®ion=top-news&WT.nav=top-news "The global collapse in oil prices is reordering economic relations around the world, but the change is particularly daunting for Russia, which relies on energy exports for 50 percent of its federal budget. In December, President Vladimir V. Putin told the nation that the worst of the recession the economy shrank 3.9 percent and inflation hit 12.9 percent in 2015 was over and that modest growth would return in 2016. He has been pushing the oil collapse as an opportunity that will wean Russia off energy imports and diversity the economy. Then in January oil fell through the psychologically important floor of $30 per barrel, with no bottom in sight, and the ruble hit a record low of nearly 85 to the dollar before recovering slightly. The last time oil prices dropped so low and stayed there, in the 1980s, the Soviet Union disintegrated. Steadily rising prices since 2000 have lifted Russia out of poverty and economic chaos, buoying the prosperity of many Russians with it. Mr. Putin was lucky enough to be president for much of that period, but he now faces an extended decline, with real incomes shrinking." ================================== So the paradise of putin isn't working out so well? Maybe vlad can spare some coins from his stolen, illicit, Cyprus-hidden hoard of billions for the masses of poor rising up. We all knew it was just a matter of time before the even the usually clueless russians said: "enough!" and started the process of removing this murderous, wretched dictator. At least once he's gone, we won't have to tolerate videos of him riding shirtless on a horse or scoring 18 goals in a hockey scrimmage. If we are really lucky, the diseased, fake iranian regime will soon follow...
Saudi Arabia initiated a massive increase of oil production and lowering of oil prices to put shale extraction in the US and tar sands extraction in Canada out of business and they have succeeded as both processes are too expensive at the moment to justify extracting gas. Both countries oil industries have been hard hit and here in Canada thousands are out of work and the economy overly dependent on oil has seen its oil rich provinces, Saskatchewan, Alberta, Newfoundland and to a lesser extent Manitoba get smack gobbed. Canada has tried to lower the dollar to encourage exporting of manufactured goods from Ontario to try offset the collapse from the oil industry cooling off. Its had some minor impact on increasing some manufacturing exports but the increase in price of food has negated any savings to consumers from lower oil prices and the low dollar means Canadians won't be travelling and we are expected to have a bad year. Russia unlike Canada or the US is keeping oil production at record levels in 2016 to compete directly with Saudi Arabia and preserve its market share. Since it has no cost intensive extraction processes like the US and Canada for now its holding its own. In 2015 Russia oil supplies reached 534 million tons - the largest amount since the fall of the Soviet Union and it says it has no intention of decreasing its supplies. Supposedly oil prices decreased by more than 70% since June 2014 or down from $90 per barrel to $30 and even lower. As I understand it the cost to produce oil is anywhere from $5 to $10 (obviously shale extraction and tar sands extraction is much more costly I believe at around $60 although I stand open to challenge on that one) So the question is will Putin cont. to go toe to toe with Saudi Arabia. The so called big shots in the know like Forbes magazine say oil should be back up to $60-$70 per barrel by US election time. Now interestingly the Russian finance ministry predicted a 156.4 billion roubles ($4.5 billion) decline in 2016 oil export revenue from the earlier figure stipulated in the federal budget law for 2014 and the planned period 2015 and 2016, according to itsdraft federal budget for 2015-2017....see: http://en.itar-tass.com/economy/739324 Also take note that the oil-pipeline monopoly Transneft has predicted a cut to crude shipments by 6.4pc over the course of 2016, based on applications submitted so far by Lukoil, Rosneft, Gazprom and its other producers which according to the math is a drop of 460,000 barrels a day, which they feel is sufficient to eliminate 1/3rd of the excess supply flooding the world. I also did not know but it is a fact Russia is the worlds biggest producer of oil, and has been exporting 7.3m b/d over recent months. The above info I get from several sources including: http://www.telegraph.co.uk/finance/...for-oil-as-Russia-poised-to-slash-output.html Russia's budget deficit is said to be running near 5pc of GDP at current oil prices. The lifting of sanctions against Iran are going to provide more oil as well as Saudi Arabia and Russia but Iran is said to have 30m to 40m barrels sitting in tankers offshore, of ultra-light or condensate oil which apparently is harder to sell quickly and so experts say will not have much effect on the crude price. The so called experts think Iran won't want to flood the markets and prices will go back up to around $60 as the markets re-correct. If you believe that Russia can survive. If it can't get back up to $60 in this next year then yes Russia could feel the impact. Some experts though believe because Iran and Saudi Arabia are at war now, Iran will do something. With the sanctions lifted, Iran will have access to some $100 billion in frozen funds and and no sanction preventing it from increasing its oil exports notwithstanding low prices. Iran says it will increase its output by 500,000 barrels a day by the end of 2016. The math on that is that this increase would allow Iran to take in more than five times as much cash from oil sales by year-end as the lifting of economic sanctions frees the OPEC member to boost crude exports and attract foreign investment needed to rebuild its energy industry according to Bloomberg reports which also says that the lifting of sanctions means Iran could immediately boost oil revenue to about $2.35 billion a month, based on the countrys estimated current output of 2.7 million barrels a day and oil at $29 a barrel. (all the above comes from: http://www.zerohedge.com/news/2016-01-17/iran-unleashes-oil-flood-will-quintuple-crude-revenue-2016) So we are in for a strange year and not just Russia is experiencing a strain on its economy. So that means even if oil hovers between $30 and $35 a barrel, Iran would still earn $3 billion a month by summer and nearly $4 billion a month by December. other sources for my info comes from: http://crudeoilpeak.info/russia-peak http://www.dw.com/en/russia-refuses-to-rein-in-oil-production-in-2016/a-18982706
if the Saudis are trying to tell Putin to stay out of Syria, it ain't working. in fact, its having the opposite effect
think of the other 50% - not bad if compared to 90% Russia oil dependence a decade ago, is it? maybe it isn't, as it never was, but it still is a paradise when compared to the West's. there ain't no trolls on this forum. .
Crash of 2016? Is the House of Saud unloading at least $1 trillion in securities and crashing the price of oil as part of a plan to demolish Russian sovereignty and inflict a perverse form of sanctions on Iran? "Those were the days when the House of Saud would as much as flirt with such an idea to have all their assets frozen. "Yet now they are acting under orders. "And more is to come; according to crack Persian Gulf traders Saudi Western security investments may amount to as much as $8 trillion, and Abu Dhabi's as $4 trillion. "In Abu Dhabi everything was broken into compartments, so no one could figure it out, except brokers and traders who would know each supervisor of a compartment of investments. "And for the House of Saud, predictably, denial is an iron rule. "This massive securities dump has been occasionally reported on corporate media, but the figures are grossly underestimated. "The full information simply won't filter because the Masters of the Universe have vetoed it. There has been a huge increase in the Saudi and Abu Dhabi dump since the start of 2016. A Persian Gulf source says the Saudi strategy 'will demolish the markets.' "Another referred to a case of 'maggots eating the carcass in the dark'; one just had to look at the rout in Wall Street, across Europe and in Hong Kong and Tokyo on Wednesday. "So it's already happening. "And a crucial subplot may be, in the short to medium term, no less than the collapse of the eurozone. "The Crash of 2016? "So a case could be made of a panicked House of Saud being instrumentalized to crash a great deal of the global economy. Cui bono? "Moscow and Tehran are very much on it. "The logic behind crashing markets, creating a recession and a depression - from the point of view of the Masters of the Universe above the lame duck President of the United States — is to engineer a major slow down, cripple buying patterns, decrease oil and natural gas consumption, and point Russia on a road to ruin. "Besides, the ultra low oil price also translates into a sort of ersatz sanction on Iran." http://www.sott.net/article/310699-Pepe-Escobar-Wall-Street-psychos-and-Mid-East-minions-crashing-global-economy-to-strangle-Russia
You have a very primitive look at the situation with the ruble exchange rate and oil prices. You need to raise the level of education. I'll show you what is silent Western propaganda. So. The most popular currency in the world - it is, undoubtedly, the US dollar. The most popular product in the world - is, of course, oil. The cause of the global crisis is well known: it is an overabundance of unsecured dollars. The reason for the crisis seems to be too clear: it was the fall in oil prices. However, until now no one Western analyst can not explain to the general public - like too many American currency could drop the price of energy? We are all the time slip some versions, whose influence on the current unprecedented situation negligibly or not at all. It is not too large a quantity of oil in the market. OPEC countries and Russia on several occasions refused to cut production, although it would have been the expected response to the fall in the value of black gold. The question is not as oil and its production methods. The assumption that Saudi Arabia could hurt its own economy in order to wipe the slate industry of America and the Russian shelf development ridiculous. In this case, it should not have to lead to a fall in prices of such small prices. It was enough to stay at around $ 38-40. But oil has reached $ 27. And absolutely do not understand then Iran - day out-of-sanctions and immediately give Europe a discount on the black gold. What for? To cut the branch on which he had just sat down? It turns out that by and large, it's not at all in the oil. At issue is a look from the other side - what was the result of falling oil prices? 1. The fall of national currencies in the Petroleum Exporting Countries and ... in China, which is not an exporter, but consumer. 2. Deflation in developed countries-importers of oil - in Germany, Spain, etc. How it affects one of the world's variables - on the dollar? Devaluation leads to an increase in the mass of the local currency and a reduction in the amount of dollars in circulation. Deflation leads to a decrease in the quantity of money in the state. Because at the moment it does not happen just like that, but because of a significant reduction in commodity prices, which is denominated in dollars only, therefore, decreases primarily again the dollar mass. Now a bit of arithmetic. For example, in 2012, it was handled almost 90 million. Barrels of oil per day. With a price of $ 100 per barrel in the back turns 9 billion dollars a day. At a price of, say, $ 20 a barrel from them remains just 1.8 billion dollars. Thus, excluded from the daily turnover of 7.2 billion dollars. Multiply that by 365 days. It turns out $ 2.6 trillion of losses for only one year. Of course, suffer from this will be the country that prints dollars. For comparison: in 2013, the US GDP was 16.8 trillion dollars. Subtract these amounts from 2.6 trillion. A lot of? Lots of. Conclusion: at current oil prices, the dollar weight in the world has decreased dramatically. The main items bought and sold in dollars, has ceased to be the equivalent of a world currency. In fact, right now, deflation does not occur in one country as in Japan in the 90s, or in the group of countries, as in the Great Depression, but in the world, but only with respect to dollar transactions. The mysterious paradox: the dollar seems to be strengthened, but the amount in circulation is reduced and it becomes less and less attractive. The outcome of any planetary crisis is always the same. The financial system is restarted on a new basis, because the old can not ensure its functioning. After World War II gold, which was not enough It was replace on dollar. Now replace the one world currency should come several equal monetary units. All US attempts to escalate the war in the Middle East made in order to raise the price of oil,- their further decline or stop at the current level disastrous for the dollar. And further. Russian gold and currency reserves of more than twice the amount of rubles in circulation. Russian can easily increase Ruble's exchange value.
This is stupid.. The Saudis did not increase production.. They did however cut production by 350,000 bpd.. Zerohedge is usually a poor source for information.
Russia proved that its economy is unsinkable The Russian economy shows surprising firmness, and the country has no reasons for concern in spite of the fact that economic instability around the world reigns, and prices of oil remain low, the analyst of Barins bank Matthias Ziller in interview of Finanz und Wirtschaft noted. According to Ziller, the tranquillity of Russia is quite reasonable. First, there is no threat of insolvency of the state. At all political disagreements with the West and the measures undertaken against Russia the country proved that its economy is unsinkable. Secondly, in Russia, despite devaluation of ruble, it isn't observed inflation flashes. Besides the country, in effect, benefits from the low prices of oil as self-sufficiency level here significantly grew. As the analyst noted, the important role in maintenance of stability of the Russian economy was played by the decision accepted in 2014 by the Central Bank (CB) not to interfere with a situation in the currency market any more and to release ruble exchange rate. At the same time the Central Bank takes measures for ensuring liquidity and consolidation of banks, and the financial system remains flexible. In the private sector essential changes are observed: there were enough examples of the Russian IT companies which can quite compete with the international. It means that in Russia there are highly skilled human resources to which the state gives support, Ziller considers. Besides, according to Ziller, Russia at the moment has no sharp need for foreign investments as fixed capital of the country reached rather high level. The emphasis is successfully placed on import substitution — besides that production of cars "is already "considerably Russified", there is also high potential for production of food. It is remarkable that Russia still manages to have positive balance of trade balance, even at so low price of oil, the analyst emphasized.http://ria.ru/economy/20160123/1363769399.html
Yes, you're so right - we are seeing a massive migration from the mideast, mexico, S america, africa and SE asia into the wondrous success story that is putin's russia. All those people aren't really going to Sweden, Germany and the West, that's just an illusion the news media is faking... In fact, I even saw all the people in Paris and London stand up last week and line up in front of the Russian embassy, seeking passports to moscow... Of course not, not at all, no such thing, they never existed.
"Pigs"? As opposed to the liars comprising the russian internet troll army? http://money.cnn.com/2015/07/22/news/economy/russia-crisis-poverty-three-million/ "That's three million more than last year, when the combination of Western sanctions and tumbling oil prices triggered a sharp recession. Deputy Prime Minister Olga Golodets told Russian TV last week that the situation was becoming "critical." A collapse in the value of the ruble sent inflation soaring -- prices rose by an annual rate of 16% in the first quarter of 2015. That in turn means Russian pay checks buy a lot less than they did a year ago. The annual fall in real wages was 14% in May and 7% in June. The shock comes after years of growth fueled by Russia's booming oil industry. During 15 years of Vladimir Putin's leadership, Russia saw its official poverty rate drop steadily to 11% in 2014. That trend has been reversed -- 16% of Russians are now officially poor. And with no end in sight to the crisis in Ukraine, the misery is unlikely to ease soon." http://russia-insider.com/en/business/poverty-rate-russia-jumps-16/ri7961 http://www.themoscowtimes.com/busin...s-more-russians-slip-into-poverty/523422.html
I agree. Putin is a clear and present danger to his people, to the USA and to Israel. Putin's support of Assad and Iran must be punished. I am enjoying seeing Russia implode.
Litvinenko would certainly agree, so would Galina Starovoitova, Igor Domnikov, Sergey Novikov, Iskandar Khatloni, Sergey Ivanov, Adam Tepsurgayev, Sergei Yushenkov, Yuri Shchekochikhin, Mikhail Trepashkin, Paul Klebnikov, Viktor Yushchenko, Andrei Kozlov, Anna Politkovskaya, Daniel McGrory, Stanslav Markelov, Anastasia Barburova, Natalia Estemirova, etc. They would all say how "great" the dog putin is to the russian people, except he murdered all of them, and most of the rest are barely able to afford to put food on their tables. No idea how much the russian internet troll army is being paid to spout garbage on web forums like this, but once you sell your soul and conscience, you can never get them back. Just think about all of the russian children and people you are f--king over lying to people all day on the internet.
This Your appeal to Russian because you want in the US make revolt against your criminal government and will build socialism? Possibly you have a chance that Russians joined you
Russia will probably start a war with someone soon, have to give something to unite their people against
