Russian Interest rates 17%

[Disgustipated]

That would be "Ruble," ya little Grammar Nazi.

12/16/2014 @ 8:43AM 7,147 views
How OPEC Destroyed The Russian Ruble


http://www.forbes.com/sites/francescoppola/2014/12/16/how-opec-destroyed-the-russian-ruble/

That's spelling, not grammar, dipshit.

 

[oggbashan]

OPEC might destroy the US's shale oil production too.

The decrease in the world's Oil demand is about 1%. The reaction in the price is overdone. If Oil continues at such a low level shale production will be uneconomic, as will most places where enhanced methods are needed for extraction.

If Russia goes bust? Banks' exposure to Russian debt could trigger another financial crisis.

 

[unregistered]

 

[Libsam]

Russia is making a move to get off the central banking reservation.

Now, somebody tell me where the hell can I buy a 17% CD!?!

 

[RobDownSouth]

Russia is making a move to get off the central banking reservation.

Now, somebody tell me where the hell can I buy a 17% CD!?!

Russia's fast going down the shitter but some folks cannot resist the lure of 17% interest.

Deck chairs on the Titanic anyone?

 

[Libsam]

Russia's fast going down the shitter but some folks cannot resist the lure of 17% interest.

Deck chairs on the Titanic anyone?

Keep on believing the article you posted in that other thread penned by a Weissmann.

 

[RobDownSouth]

Keep on believing the article you posted in that other thread penned by a Weissmann.

Time will tell, and one of us will look pretty foolish a few months from now.

Odds are pretty prohibitive it won't be me.

 

[unregistered]

 

[Que]

OPEC might destroy the US's shale oil production too.

The decrease in the world's Oil demand is about 1%. The reaction in the price is overdone. If Oil continues at such a low level shale production will be uneconomic, as will most places where enhanced methods are needed for extraction.

If Russia goes bust? Banks' exposure to Russian debt could trigger another financial crisis.

Sure, but that just means you dont bother to extract you leave it in the bank. When I started mining copper the price was about $4 a pound. in a race to get the copper out of the ground we were very wasteful We had 135 trucks running. (3.5 million dollars each) We were on top of each other. A fender bender is about $100,000 on average. We had to park trucks because even at $60,000 vs normal $35,000 per tire there were no tires available. We blew up $750,000 engines because we ran them non-stop, not even shutting them off to fuel.

The bottom fell out, went to I think $1.65 a lb. Or cost of production on relatively low grade ore (compared to the congo) was running $2.10.

We went down to 50 trucks. I got to stay, barely because of attendance, overtime and production. Those of us running the 50 trucks moved mountains out of the way for the next time prices came back, if we had to move through a pocket of really good ore, since the mill was shut down we trucked it to a designated spot and built a small mountain about 200 feet high by a mile square of pure copper ore.

When the price of copper came back, we walked a shovel up to our little pile of gold and loaded it back into trucks and scooted it down the hill and into production.

The fact that that shale CAN come back online quickly backstops rising oil prices to an extent. Copper came back but not as much as it would have if analysts didn't know we could flip a switch and have copper plates headed out in 30 days.

At the lower copper price the company still made 8 billion dollars after expenses and taxes when production was back.

 

[Libsam]

All Putin has to do is buy 50 billion in Ruples with some of the 450 billion in Us Dollars he's hording to bolster the Ruple, or he can start a dollar based economy.

Ooo, that's an interesting thought.

What if he teams up with China? Thinking of it that way, the central bankers don't sound so bad. But that's probably what they want you to think, they are always several moves ahead!

 

[RobDownSouth]

All Putin has to do is buy 50 billion in Ruples with some of the 450 billion in Us Dollars he's hording to bolster the Ruple, or he can start a dollar based economy.

Band-aid solution for a brain tumor.

• Russia owes 700 billion in dollar-denominated loans to foreign entities.
• The interest payments alone on them amounts to 125 billion a year.
• They had 490 billion in dollar reserves earlier this year, they're now down to 416 billion dollars and hemorraghing dollars on a daily basis
• 45% of the Russian economy is tied to an oil-based economy, they've essentially lost half of their income since last month.

LINK

The scariest thing is that prudent Russians have essentially voted with their wallets against the ruble already, they're buying big-ticket items such as cars and washing machines, tangible items that will hold value over the next 3 or 4 years during the coming currency meltdown.

Your beloved bare-chested horse warrior Putin is absolutely fucked unless he capitulates to Western sanctions, which would be a political death sentence to him due to his Ukraine policy.

 

[RobDownSouth]

They've shut down a few rigs, but new technology coming online could help that problem. At any rate the lower price of oil is a shot in the arm to the economy, and a hint at what could be if the administration wasn't doing all in it's power to hamper our energy sector.

a "few" rigs? Here in Texas they're shutting down the most rigs last week in over two years.

Texas shale oil is considered "moderately" expensive to produce (compared to North Dakota) and they're already shutting them down. I personally know of two companies laying off petroleum engineers here, though they haven't formally announced layoffs yet.

Shuttering 25 rigs a week does not bode well for the Texas economy.

 

[unregistered]

 

[Sean Renaud]

But not as much as you hate Obama. You made that quite clear.

 

[unregistered]

 

[RobDownSouth]

Hindsight is 20/20

This is true, but the benefits of lower oil prices benefit all consumers and many more producers of all other goods and services.

On this we can agree.

By the way, I went back to find evidence of your fanboy crush on Putin. You are correct, and I was mistaken, all of your bros were crushing on Putin last March but not you. I forgot that you never go on record with your opinion until long after current events have receded. I'm not a Vietnam-era marine so I can be a man and own up to my errors.

It was rather enlightening to see what your fellow America haters had to say about Putin a few months back...

Yes, Putin can put Europe in a time-out. And yes, all the rational thinkers of the Left believe that he will not do it, because it will hurt him. Even Conrad Black (NRO) on the Right believes something similar to this. They forget that the Russian Leadership was willing to sacrifice 70 million to defeat Germany.

Yup, Russia is puttin' the hurt on Europe all right, Chief. Great prediction.

The Ukraine is not a problem for Putin.

Oops!

And Russia cannot afford to stop selling it. They have no other economy.

Not true, it is the largest sector of their exports, but not the only. Further the scenario presented is really a standoff. WRT natural gas and petroleum the importers are as dependent as the exporters. Economic sanctions on those sectors would only result in a dramatic rise in prices which would penalize every citizen of every nation and generally slow down, or worse, all economies. Which would beg the question as to who really got the shaft? I see no good purpose to be served in promoting even more chaos and bloodshed.
Ishmael

Western sanctions = Higher gas prices? Oh NOE!

Hit Us With Sanctions? We'll Seize West's Assets, Russia Warns.

Koalabear: Not only dead, but dead wrong.

Kerry is rapidly walking back the rhetoric. Today he comes out with "diplomacy being the only option" with no mention of sanctions or other real actions. It appears that the administration has finally realized that they are indeed toothless junkyard dogs on this issue and have decided to quit barking.

Ishmael

Yup, sanctions have no effect whatsoever Ish!

Putin has what he wanted.

Actions have consequences.

Whine, Putin still got what he wanted from sissy obama.

....and is now paying for it.

Big deal asset freeze, they've had two weeks to pull their assets out. Obama comes out sucking hind leg.

Ruble is hemorraghing, and those frozen foreign assets are causing major havoc in the Russian economy right now.....but Obama looks bad, right? RIGHT?

 

[phrodeau]

Hey, koalabear made it onto the Politics Board, albeit posthumously.

 

[unregistered]

 

[RobDownSouth]

None of the above indicates any love for Putin by those conservatives, Rob.

Yes Obama looks good to those who are naive enough to assume he brought all of that about. He didn't. He did place sanctions on Putin, which was good but much less than he could have. The price of oil is what is bringing Putin down, and that has very little to do with Obama.

Even you have to admit the fainting couch histrionics by AJ, Ishmael and Koalabear look amusing in retrospect.

 

[RobDownSouth]

I was referring to an attempt to shore up the Ruble in his own country, before he is overthrown. Revolution could be in the wind. He does have 35 million ounces of Gold and 450 billion in US Dollars. He could start a war as well, the Ukraine has a little over 26 metric tons of Gold.

BTW, I hate the little son of a bitch, so take your assumptions and shove them.

So much for your cunning plan: Russia only has 7 billion US$ in liquid reserves, the rest is tied up in long term contracts.

Putin cannot unilaterally abrogate those contracts without going "Full USMC" (i.e. shooting himself in the foot and then declaring victory).

 

[unregistered]

 

[RobDownSouth]

Please do not try and embellish the truth with false constructions. None of those men have worshiped Putin, you know this, but continue in your attempts to injure their reputations with these lies. Why do you do this?

All I'm gonna say, is that you should thank your lucky stars that your innate marine corps cowardice overcame your need to make predictions, as there is serious competition for the Lit Nostradumbass Prediction award this year based on the quotes above.

 

[unregistered]

 

[Disgustipated]

This is true, but the benefits of lower oil prices benefit all consumers and many more producers of all other goods and services.

So are you going to give Obama even a little credit for making this happen or are you just going to stick to your "I don't know how this happened! Maybe it was magic, that seems more logical than Obama making it happen!"

 

[KingOrfeo]

We have less international respect.

Compared to the W years? Bullshit.

Never confuse respect with fear.

DiFi was not honest about at all in her CIA report.

What on Earth are you talking about?