More Bad News for Russia

[sleepycat]

Stiil if I had a choice I would go for the Russian stock market.

For your children's sake I hope you used a professional to manage your retirement funds...

[Shadow]

For your children's sake I hope you used a professional to manage your retirement funds...

Which retirement funds?

[AkMike]

Which retirement funds?

 Exactly! 


 Probably the same one that Putin is looting to prop up his oligarch buddies. 

[AkMike]

Another 50 or so terrorists will return to Russia soon.


Birukov: «Cyborgs» destroyed Russian Special Forces group, militants and wounded two warlords



http://en.inforesist.org/birukov-cyborgs-destroyed-russian-special-forces-group-militants-and-wounded-two-warlords/

[Shadow]

Another 50 or so terrorists will return to Russia soon.


Birukov: «Cyborgs» destroyed Russian Special Forces group, militants and wounded two warlords



http://en.inforesist.org/birukov-cyborgs-destroyed-russian-special-forces-group-militants-and-wounded-two-warlords/

You must feel sooooooo happy.

[sleepycat]

Still clinging to the forlorn hope of oil going back up to $80 soon Doll?

http://news.yahoo.com/oil-prices-hits-fresh-five-half-lows-brent-032529368.html

 

[Shadow]

Still clinging to the forlorn hope of oil going back up to $80 soon Doll?

http://news.yahoo.com/oil-prices-hits-fresh-five-half-lows-brent-032529368.html

 

There are two possibilites.
1. The current low prices will eventually cause a new oil crisis where the price will go far above the recent high.
2. Oil will be replaced by other energy systems, making the price tumble to production cost

Either way, you can laugh now but will pay later.

[sleepycat]

What's wrong with cheering for low oil prices?
Don't you drive a car?

[AkMike]

Public sector employees and state-owned enterprises was forced to resign on unpaid leave of absence until January 12, and for the first month of the year they will receive a salary that is 30% less than the usual salary. It is reported "Krym.Realii."

 "Employees of the various budget areas of the Crimea forced to go on a 11-day January vacation at his own expense," - said in a statement.

 In private conversations with the publication of a number of Republican structures workers admitted that they have to be on vacation from 1 to 11 January 2015, because in Russia these days officially declared the weekend.

 "Before the New Year at work we were warned that in January we will get paid 30% less than the sum of the put," - said an employee of one of the educational institutions of the Crimea.

 On the other SOEs wage cuts, according to the interlocutors, explain the alleged lack of money in the budget, respectively subordinates released in a long time off at their own expense: "Caution: if we go to work earlier than January 12, it will not pay."

 "Previously, when Ukraine has never happened. Despite the holidays, wages were paid in full, and now trim" - state employees complain

http://ukranews.com/news/152466.Krimskih-byudzhetnikov-otpvravlyayut-v-neotplachivaemiy-otpusk-i-urezayut-zarplatu-na-30.ru

[Shadow]

What's wrong with cheering for low oil prices?
Don't you drive a car?

It is great today, problem is that tomorrow we may have to pay double.

[cc3]

Buffet is an Obama guy.

Talking about his company share selections, not his politics.

[Gator]

There are two possibilites.
1. The current low prices will eventually cause a new oil crisis where the price will go far above the recent high.

"Far above" as above $100/bbl+ is incorrect.   If the low prices curtail new production worldwide, demand will eventually outpace supply, and prices will rise.  Keep in mind this would trigger new production (more supply) and  prices will lower again.   Meanwhile the world is enjoying 1-2 years of a 50% sale on gasoline.   It is good, real good, unless you live in North Dakota or Russia or own stock in leveraged drillers. 

2. Oil will be replaced by other energy systems....

The great pie in the sky dream.  The alternative sources of energy are economically viable only when prices are high.  In fact, even research is curtailed when prices are low.  Why do you think the Saudis are over supplying the world?  It inhibits the R&D of alternative sources. 

    ....making the price tumble to production cost.       

Oil is now priced below new production costs.  Why do you think the Saudis are over supplying the world?  It stops new production projects, and the current price is well below the cost of fracking.   

Again, please read the first week's lecture of Natural Resource Economics 101. 

[AC]

Speaking of oil, I just saw that it is now down to under $50 per barrel.  I just saw a price quoted of $49.77.  Doll, you claim that oil will get to $80 per barrel this year.  Good luck with that prediction coming true.   

[AC]

Oil is projected to go as low as $33 per barrel this year.  If that doesn't cause a lot of financial pain in Russia, I don't know what will.  A total financial collapse like 1998 might be coming for Russia.  Too bad.   


excerpt
Brent futures, in free fall Monday, have already sunk below $55 per barrel, losing nearly 6 percent to just above $53 per barrel.

From a technical perspective, the next target in WTI is north of $48 per barrel, but there is a case to be made for the low $30s per barrel.

"The ultimate target is now $33. That's how it sets up on the charts and that's a pronounced double bottom," said John Kilduff of Again Capital. He said the market consolidated in December but is now set on forging new lows. WTI closed at $33.98 on Feb. 12, 2009, and it is now trading at levels last seen in April 2009.

http://www.msn.com/en-us/money/markets/as-oil-breaks-dollar50-wall-street-getting-more-bearish/ar-BBhy1yG?ocid=mailsignout

[Gator]

It is great today, problem is that tomorrow we may have to pay double.

"Double" is what we were paying.  So today we are enjoying a 50% price reduction in gasoline (perhaps less of a reduction in Europe if the steep taxes you pay are independent of oil price).  Paying less is great even if the market returns to the old prices in a year or two or more. 

If the electric company reduced its rate for electricity to half of what it is today, you would be happy, yes?

R-E-L-A-X. 

[Gator]

Oil is projected to go as low as $33 per barrel this year.  If that doesn't cause a lot of financial pain in Russia, I don't know what will.  A total financial collapse like 1998 might be coming for Russia.  Too bad.   

Financial pain, yes; collapse, no.   There may even be some talk of sovereign default,  meaning interest rates would skyrocket and access to capital markets curtailed.  This would cause a recession, perhaps even a depression. 

Countries still survive, particularly as there would still be oil and gas revenue.   However, without access to capital, investments needed to maintain oil field production levels would not be made (producing oil in the northern climes is expensive and needs capital for infrastructure construction).  So the O&G revenues would decline even if the international price remained stable. 

Countries survive in such conditions by printing more money, lowering the value of their currency.  The world knows this and that is why the ruble is now rubble.  Yet pensioners and ordinary workers are still paid the same amount.

The above combination  would bring inflation and reduced employment.  The poor would become poorer.  Junked Ladas would be refurbished.  Imports would be limited to used cars from an untethered Cuba.   Maybe one day Russia will have to ask Ukraine for a loan.  All because of the lack of vision by a man named Vladimir and his inner circle of enriched friends.

[fathertime]

The above combination  would bring inflation and reduced employment.  The poor would become poorer.  Junked Ladas would be refurbished.  Imports would be limited to used cars from an untethered Cuba.   Maybe one day Russia will have to ask Ukraine for a loan.  All because of the lack of vision by a man named Vladimir and his inner circle of enriched friends.

CUCKOOOO CUCKOOOO CUCKOOOO!   


Fathertime!   

[Gator]

CUCKOOOO CUCKOOOO CUCKOOOO!   

Not the first two sentences.  The facetious examples show that Russia's economy relative to other nations would decline.  This year Russia's GDP declined by 50% based in dollars. 

[lordtiberius]

CUCKOOOO CUCKOOOO CUCKOOOO!   


Fathertime!   

Lol

[JayH]

The never ending story of the rubble slide!! After a little respite as the west was busy celebrating goodwill-- the rubble recommences it's downward path !!
Along with oil at USD$48 minus and dropping .
Russia is not heading to a recession--but a depression!!


1.00 USD   =   62.4741 RUB
US Dollar   ↔   Russian Ruble
1 USD = 62.4741 RUB   1 RUB = 0.0160066 USD
Convert again
RUB/USD thumbnailView Chart
Mid-market rates: 2015-01-06 09:13 UTC

[AkMike]

Russia's Ruble Tumbles as Oil Prices Keep Falling 

Russia's ruble fell more than 6 percent against the U.S. dollar on Monday, dragged down by weaker oil prices in volatile holiday trade.

At 5:36 p.m. in Moscow, the ruble was 6.4 percent weaker at 59.59 rubles to the dollar and 3 percent weaker against the euro at 70.74.

Oil prices, which have declined more than 50 percent from peaks in June last year, hit a five-and-a-half year low as doubts about global growth fanned fears of a supply glut.

The Russian currency fell around 40 percent against the dollar last year, hurt by the falling oil price and by Western sanctions over Ukraine, which made it harder for Russian companies to borrow abroad and spurred demand for dollars.

The dollar also firmed against other currencies, with the euro falling to a nine-year low against the U.S. currency as investors bet the European Central Bank would soon begin a program of buying bonds, so-called quantitative easing.

Russian shares were mixed on Monday, largely reflecting moves in the ruble.

The dollar-denominated RTS index was down 4.9 percent at 752 points. The ruble-based MICEX traded 1.8 percent higher at 1,422 points.
http://www.themoscowtimes.com/article/514042.html

[jone]

The ruble ended over 60 to the dollar yesterday and is slated to go higher.

[JayH]

Amazing stat
Fourth Russian General Commits Suicide in Less Than a Year

Police in the Russian capital said that they had found Kudryavtsev’s body in his flat in southwestern Moscow. It’s reported that he had hung himself and left a suicide note explaining that he had suffered "excruciating pain" as a result of his stomach cancer and that he did not “blame anyone” for his death.

http://www.newsweek.com/fourth-russian-general-commits-suicide-less-year-297055

[lordtiberius]

Amazing stat
Fourth Russian General Commits Suicide in Less Than a Year

Police in the Russian capital said that they had found Kudryavtsev’s body in his flat in southwestern Moscow. It’s reported that he had hung himself and left a suicide note explaining that he had suffered "excruciating pain" as a result of his stomach cancer and that he did not “blame anyone” for his death.

http://www.newsweek.com/fourth-russian-general-commits-suicide-less-year-297055

The death certificates have been known to lie . . .

[LAman]

The ruble ended over 60 to the dollar yesterday and is slated to go higher.

Jone , you have to stay on cue with the topic......only 'bad' news is reported here.