It appears that the US and Saudi Arabia, that is, the country that supports torture of prisoners and the country that beheads people for not obeying the strictest form of Muslim beliefs and stones women to death for infractions like say, driving a car, are attacking Russia which is a liberal, modern country that has rights for women and no religious persecution. The scheme is to flood the world markets with oil and then cause Putin to be unpopular and then see the Russian flounder and fail and fall apart like when they were led by the very unpopular communist party.
If this scheme is true, there are several facets to it which shows me that it is a failure and will bite the Texans, Canadians, Dakota states and of course the Saudis, in the ass, big time. That is, PUTIIN IS POPULAR. The Russians are no fools.
They won’t blame Putin for all this, they will blame the EU and US. NATO has been extremely provocative in all this, menacing Russia. When a people are menaced militarily and are being butchered like the Russian speakers of Ukraine, the end result is, they pull together and fight back and I believe the consensus in Russia will be to make Putin stronger, not weaker since Russia is now under attack at every level especially the banking levels.
Ah, banks! The US and EU just saw a near total banking collapse recently which was literally papered over by using ZIRP loans from central banks which means ‘print money like mad’. The only thing keeping this wretched banking mess rolling is world trade.
Since China has an interest in keeping both the euro and dollar strong, the bank bail out ‘worked’ in that China bought a tremendous amount of US and EU debts and used this to keep pouring in exports as China madly builds up its domestic economy which is now the biggest on earth. Lest Americans forget: we are no longer the biggest economy on earth!
We ARE the biggest destination for imports and this is destroying our home base rapidly and driving our entire nation very deeply into debt. This absolute flood of red ink is a disaster for the US which is papered over by the fact that China buys our debts to keep this ball rolling.
The gambit the US is using with Saudi Arabia is making China STRONGER, not weaker, and China is in a very friendly relationship with Russia and is talking quietly with Putin and has no desire for the US to destroy Russia.
…there must be another cause for the oil price fall, and suggested significantly reduced buying from China.
CL: No. China’s oil demand has been increasing, and there’s no way the Chinese government can hide it. China is the second-largest oil importer after the U.S. In fact, China’s oil imports have increased by as much as 50% recently because of the price reduction. China is filling up its strategic reserve.
And if the US and Saudi Arabia keeps prices very low for very long, China will suck down a huge amount of this bounty while key US states go into a deep depression, states that are top GOP states and who will not blame Putin for all their future misery but will definitely blame the Democrats.
North American oil production has increased, so if demand stays constant, the Organization of the Petroleum Exporting Countries (OPEC) would have to reduce production to keep the price stable…
I can understand Saudi Arabia getting sick of Canada and the U.S. taking its market share and acting accordingly. Partly because of the American military presence in the Gulf region, those countries cannot squeeze U.S. shale production without American permission…
Another possibility is the U.S. acting to squeeze Vladimir Putin and Russia. The U.S. and the Saudis, acting together in the 1980s, brought the price of oil so low it was a big factor in the collapse of the Soviet Union. I can see the Saudis and the U.S. doing that again. You have Goldman Sachs calling for an oil price crash, and the Saudis are selling aggressively—and selling to the U.S. at much lower price than to Asia and Europe.
Here is some news from Russian media: Russia may ‘automatically’ cut oil output – energy minister
The minister believes individual countries can no longer affect the global oil market.
“In my opinion, such measures, when individual countries agree among themselves, are becoming a thing of the past, as today’s market is completely different. The market is largely influenced by the countries that have large volumes of output and at the same time are importers of oil themselves,” said the minister, specifying that the US is among these countries.
But according to the Russian news media, Russia, Saudi Arabia, Mexico, Venezuela decide not to cut oil production. Then there is poor Norway: they need high price oil markets to keep themselves happy and comfortable. They will be shot down long before Russia.
Oil producers to lose $1tn if price below $60 – Goldman Sachs: The Russian news site examines this issue.
With Brent crude losing 45 percent of its price and trading at $59.9 at 12PM MSK Tuesday, a number of once ambitious projects could become unprofitable. Thus, plans on deep exploration in such challenging regions as the Gulf of Mexico or Arctic may be put at risk, says the Financial Times.
The research based on a $70 oil price was carried out looking at 400 oil and gas fields around the world, many of which are still waiting for a final investment decisions. The analysis, which excludes US shale, shows the fields with the equivalent of 2.3 million barrels a day output by 2020 have now become uneconomic. That figure rises to 7.5 million barrels a day by 2025.
Russian Central Bank hikes key interest rate to 17% to halt ruble roil Slumping ruble should push Russia to ‘live in new reality’ – Bank chief. Hidden from view is the US Federal Reserve, the Bilderberg money printing machine. They are discussing raising interest rates. According to them all, there is inflation (incredible, of course!).
But then, oil is no longer part of the inflation index, is it? By removing food and fuel, this has fueled commodity bubbles that caused a huge amount of inflation as bankers happily flooded the economy with loans that were backed by nearly no savings.
US, European markets tumble following ruble, oil is another problem. Europe’s economy isn’t flourishing. Now time to talk about the EU demands that oil no longer be used at all: global warming! Oops! The EU is committed, but only at the top of society, that consumption of oil and gas must decline by at least 30% to fix the climate and bring on another Ice Age.
So far, there is no open revolt over this little scheme. But as it gets colder and colder as the elites claim falsely that it is really getting hotter and hotter, there will be an open revolt.
Putin, Poroshenko, Merkel, Hollande affirm urgent need for dialogue, ceasefine in Ukraine shows that the crisis there caused by the US CIA operatives, is going to wind down somewhat. Except Poroshenko announced he is going to up military spending using US dollars.
We are bankrolling all this including the Ukraine defaulting on the $17 billion loans the EU and US gave to him.
Pentagon confirms military buildup along Russian borders for ‘peace and stability’ which is a lie, of course. The US has to take down Russia as the major energy exporter to Europe and has succeeded but only to drive Russia into China’s arms.
The effects of this don’t show yet due to the fact, the deals were made this last several months. China will not let Russia’s economy collapse and see the US and EU take over and resume looting Russia. No way in hell especially with these future contracts at risk.
The belief that Russia will collapse and no one will buy Russia’s debts is a false hope since China will do exactly that. Then we must examine the future: CHINA WILL CAUSE OUR CURRENCY TO COLLAPSE!
Yes, China can do this to us. They don’t want to do this…yet. But it lies in the future and there is a 100% chance of this happening if the US continues to encourage Japanese military fascism. The tiny island disputes are an opening shot in all this and the US economy can be easily annihilated the way the US is attempting to wreck Russia.
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