Russia, Energy and the Conventional Markets
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The rouble has gone high to low from 0.3043 to 0.01295 to the US dollar since 2008.
that is pretty bad. The rate was about 0.035 in the 2004-2007 timeframe so it is down 70% from the peak and down 58% since 2005. Not a total disaster but it makes you wonder how the Russian currency has gone down like this over the last decade in a so called supercycle commodities bull market.
OK if the commodities bull market has ended, the rouble should be coming off a high not plumbing the depths of alltime lows, don’t you think.
It has been said that the rouble is under ‘speculative attack’ which may be true a and highly convenient for the West.
If Russia was a ‘tight ship’ in its economy, would this have happened? Something doesn’t add up. If its debt is so low as Gary suggests, why would its currency be under speculative attack unless it is because of politically motivated sanctions?
Sorry, the high to low move was from 0.043 to 0.01295 to give the -70% move.
Lot of question on this situation Silverbug Dave.
Your comments of a “speculative attack” is something, as you know, I agree with.
Fear is the domain of the west and Russia does not often express fear. Their history is one of harsh governments and the ability to overcome. My money is on Russia.
And mine too, LGC
Matthew, good chance oil bottoming. Good for gold.
I agree.
Dow:GLD fills 7-year-old gap at 50% retracement level:
http://stockcharts.com/h-sc/ui?s=$INDU:GLD&p=M&yr=15&mn=10&dy=0&id=p73265885032&a=366834118&listNum=1
Do you guys recall Russia and China are going to build a high speed train from Bejing to Moscow?
That’s actually a lot of employment.
How about Russia working with other nations to drop the American dollar? Almost like they saw this coming. Kinda spooky.
Or maybe the BRICS.
hmm, hasn’t Rusia been negotiating nuclear power plants?
There is actually a great deal that could be mentioned that Russia is doing and has prepared for.
Russia is not selling gold, no need, they are buying gold in preparation of a gold backed currency, we just wait to find out if its sdrs or yuan or something we havnt herd of.
The economic growth is Eurasia, (ask Turkey) they now flip the bird at euroland.
Will Russia come out of this? Obviously they will, its the U.S. that cant afford to fix their roads, drive thru LA or Detroit etc etc
Ron Paul has repeatedly told the American people, the U.S. government is VERY foolish to get into a peeing contest with Russia, of course the whole goal could be ww 3, that we don’t know yet I guess.
Man (bb), I can’t believe that any sane individual would be involved in starting a third world war!
The people running the U.S. government are not sane Al, they are psychopaths.
They just killed 500 thousand children without losing sleep, sane people cant do that.
When the pundits in the mainstream media capr on anything over and over again, one has to wonder if the average guy on the street would come to the opposite conclusion absent the propaganda .
Very good points re Russia Gary…thanks
Will the Fyodorov announced purges be forthcoming soon? (If at all??)
I think this is VERY early days yet folks to be saying that Russia will come through this – the squeeze has only just begun.
Of course Russia will survive as a country and a people but Russia is so dependent on oil that a sustained low oil price – and I believe that they will push oil lower for the geopolitical issue of hurting Putin – will cripple it.
This is economic warfare ladies and gentlemen – you don’t declare war and then call it off two weeks later.
Today’s bounce in the likes of USO was just a short squeeze IMPO. But hey, what do I know? Nothing.
I do agree with you comment about the duration of economic warfare, Bob UK
One solution for Russia is ask any currency but dollars for energy in payment. And, if Russia will sell their gold, it will be paper gold. I dont think they are SO stupid.