Rouble declines: Well played USA

[Kalifati Arab shqiptar]

The ruble is rubble.

Rouble. Don't try to correct something that already is correct.

[Blakullar]

I for one am genuinely alarmed.

If the Russian economy collapses, there will be massive hate generated towards the West. And we all know what happened the LAST time a demagogue able to exploit popular fury got to power.

[Inyourfaceistan]

I for one am genuinely alarmed.

If the Russian economy collapses, there will be massive hate generated towards the West. And we all know what happened the LAST time a demagogue able to exploit popular fury got to power.

Because we all know a Russian strongman leader is automatically Hitler...

[Napkiraly]

I for one am genuinely alarmed.

If the Russian economy collapses, there will be massive hate generated towards the West. And we all know what happened the LAST time a demagogue able to exploit popular fury got to power.

*Conveniently forgets to mention all the dictators post-Hitler who didn't put on the Reich in a failed attempt to scare monger Western audiences into placating an already demagogue, corrupt leader's actions*

Try again.

[Estado Nacional]

The ruble is rubble.

Rouble. Don't try to correct something that already is correct.

[Kalifati Arab shqiptar]

Rouble. Don't try to correct something that already is correct.

Oh, yeah I got it now, sorry mate, little slow there.

[Skinia]

Thanks Obama!

[Buse]

I for one am genuinely alarmed.

If the Russian economy collapses, there will be massive hate generated towards the West. And we all know what happened the LAST time a demagogue able to exploit popular fury got to power.

You are admitting that Russians are fascists, good.

[Rio Cana]

They say oil prices could stay low for a few years. Which means Russia, Venezuela and Nigeria (which is a so called US ally) will be going through a tough time. Unlike Arabia, these nations have not saved for a rainy day. Which means these nations will have to cut there budgets. Now you know why Arabia ad those small oil gulf nations have been investing in other nations. That is why its important for nations to diversity. They say US oil interests can still make a profit up to $62 dollars a barrel. Having said all that, at least small nations without any oil will get much economic relief for a few years. But watch out. Here on our island they need money. So they are about to raise the oil tax. Which means almost at least .20 US cents a liter. Which means that gasoline prices could go up almost one dollar a US gallon. The island government says that the people will not feel the pinch since prices of gasoline and oil have gone down. But they surely must know this will not last. So what about when it goes back up. So watch out for politicians trying to tax oil products at this time.

Has for Russia they have gold. Russia is full of the stuff. There production keeps increasing.

Read this -
http://rbth.com/business/2014/09/30/gol ... 40191.html

[Othelos]

Well played USA. They hit two birds with one stone. Canada exploring their oil-fields and USA producing oil again, Nigeria producing more oil and now the reduce of oil price, it will destroy Russia's economy, since Russia depends only on oil now. China has suffered a decline on industrial sector, which would make The Premier, reconsiderate their alliance with Russia.
Now starts the real effect of the sanctions

I'm confused as to why you would blame the US for OPEC's decision not to cut production.

[Ripoll]

Russia's economic decline began way before the Ukrainian crisis and the sanctions, and has little to do with the US.

They didn't reduce the share of oil wealth in their economy quickly enough because their government is still afraid to stimulate a stronger domestic market, where most of the large state-owned companies would've become uncompetitive. This model was doomed to fail, the current drop in prices merely sped up its death.

They've been through this before several times, but this time they have sufficient gold reserves and more space to maneuver. I think it will actually hit the US more in the long-term, because shale oil will not become the cheap alternative to traditional crude and the "shale revolution" will fail.

The shale revolution won't fail, this is just more reason to start becoming the worlds largest oil and natural gas exporter rather than just the largest producer. Companies will constrain their spending until the whole things falls over and then the shale revolution will kick in once more. This is simply a delay to the inevitable rise of US oil and natural gas dominance as well as unprecedented economic growth combined with heavy amounts of loose capital, heavy infrastructure spending, and healthcare reforms.

[Occupied Deutschland]

Russia's economic decline began way before the Ukrainian crisis and the sanctions, and has little to do with the US.

They didn't reduce the share of oil wealth in their economy quickly enough because their government is still afraid to stimulate a stronger domestic market, where most of the large state-owned companies would've become uncompetitive. This model was doomed to fail, the current drop in prices merely sped up its death.

They've been through this before several times, but this time they have sufficient gold reserves and more space to maneuver. I think it will actually hit the US more in the long-term, because shale oil will not become the cheap alternative to traditional crude and the "shale revolution" will fail.

The shale revolution won't fail, this is just more reason to start becoming the worlds largest oil and natural gas exporter rather than just the largest producer. Companies will constrain their spending until the whole things falls over and then the shale revolution will kick in once more. This is simply a delay to the inevitable rise of US oil and natural gas dominance as well as unprecedented economic growth combined with heavy amounts of loose capital, heavy infrastructure spending, and healthcare reforms.

In point of fact, that analysis he links is rather limited. North Dakota and the Bakken oil-field (perhaps the biggest shale and natural gas producing region via fracking in the US) have been producing regularly at extremely economical terms for the past few years. Some estimates I've heard estimating the well's remaining profitable at as low as $28 to $40 dollars a barrel just because of the low-capital process involved in extraction there.

In any case, this doesn't have too much to do directly with Russia. OPEC's trying to throttle American oil industry before it can become a threat. Whether they'll be successful though is largely up in the air if not unlikely. Russia's just an unfortunate bystander due to their reliance on oil revenues.

[Olerand]

The economic sanctions were very much America's doing, but the fall of oil prices is not. It is mostly the Saudis trying to maintain their market share and preventing its deterioration to rising American oil exports. So, indirectly I guess, one can consider this as America's doing as well, but only indirectly, as in not planned.

[Sailsia]

I know Obama's administration has been heavily criticized on the foreign policy front, and more often than not I'm one of the people doing the criticizing, but I think this was a well executed move. It's heartening to see competency not only on the American government's part, but from nations across the world. Also, obligatory "eat a dick Putin" remark.

[Sebastianbourg]

First off, it is the ruble.

The Oxford English Dictionary prefers 'rouble'.

[Shofercia]

http://www.bbc.com/news/business-30276353

The rouble suffered its biggest one-day decline since 1998 as oil prices continued to fall on Monday, escalating fears about the Russian economy.

The currency slid almost 9% against the dollar before rallying after suspected central bank intervention.

Russia is heavily dependent on revenues from oil exports, making its currency vulnerable to falling prices.

Brent crude hit $67.53 a barrel, the lowest it has been since October 2009, before regaining some ground.

It was just above $70 in late trading on Monday, while US crude was at $66.34 a barrel, having hit an intraday low of $63.72 - the lowest since July 2009.

Russia is the world's second-largest oil exporter, with oil and gas accounting for 70% of its exports and half of government revenues.

Oil prices have fallen by more than a third since the summer, while the rouble is down nearly 40% against the dollar since January.

The economy has also been hit by western sanctions imposed on Russia in retaliation for its annexation of parts of eastern Ukraine.

The currency regained some ground to be at 52 roubles against the dollar and 65 against the euro, still down some 4% for the day at the end of the main trading session in Moscow.

Traders said the afternoon rally pointed to intervention by Russia's central bank, which declined to comment. The central bank has not intervened in the foreign exchange market since 10 November, saying it would do so only if it considered the rouble's fall a threat to financial stability.

Ksenia Yudayeva, deputy chairman of the central bank, tried to reassure traders by saying there was sufficient liquidity in currency markets and that the bank had prepared new economic forecasts based on a price of $60 a barrel.

Laura Lambie, senior investment director at Investec Wealth & Investment, said the Kremlin may privately welcome a weaker rouble because it helped to counter lower oil prices.

Globex Bank senior trader Igor Zelentsov said in a note: "Support for the rouble at present can only come from stabilisation of the oil price. Other factors now look secondary and of little significance."

Well played USA. They hit two birds with one stone. Canada exploring their oil-fields and USA producing oil again, Nigeria producing more oil and now the reduce of oil price, it will destroy Russia's economy, since Russia depends only on oil now. China has suffered a decline on industrial sector, which would make The Premier, reconsiderate their alliance with Russia.
Now starts the real effect of the sanctions

Source that oil = 100% of Russian GDP, or that Russia depends entirely on oil.
Source that Canada's exploring oil fields due to a price drop.
Source that a drop to $60/barrel will destroy Russia's economy.
Source that China suffered a decline in the industrial sector due to oil price.

You just pulled a bunch of unsourced crap, but because it's "hurr durr Russia", I'm sure it'll be hailed by someone here.

My opinion on this is simple: Saudi Arabia no longer wants Russian support on Palestine. Fair enough, they won't get it.

I dont think it was planned, more like the inevitable risk of having an economy reliant on an inherently unstable market like oil. Coughscotlandcough.

Now to solidify Russias fall from power and begin the decline of the middle east the west needs to triple its funding into fusion and other alternative energies.

What services shall you cut to get said funding?

If anything, Russian military in Latin America is the only thing that concerns me as an American. But then again we are kind of meddling in Russia's back yard so...

And ISIS/Al-Nusra and the FSA aren't killing civilians everyday?

Not as much as Assad.
Please stay in topic now.

Can I also get a source for Assad killing more than ISIS & FSA combined? And even if that's the case, have you seen what ISIS did to the Yazidis and planned to do to Kurds if Kobane fell? Or do you think that all of NSG cheering the valiant defenders of Kobane was just a time when we all went, "eh, it's been a while since we all agreed on something, why not agree on this?"

If anything, Russian military in Latin America is the only thing that concerns me as an American. But then again we are kind of meddling in Russia's back yard so...

If you're referring to the expansion of NATO and the EU into Central and Eastern Europe that isn't the US's undertaking but rather the result of a complex mix of narrative setting and discourse used by both NATO/EU members and the CEE countries. Short, ridiculously simplified version is at the end of the Cold War they really super duper wanted to join the West and its institutions and we didn't really have any justifiable reason to say they couldn't so we let them join. Oh and Russia's recent actions actually have helped cement NATO's role in Central and Eastern Europe. Go figure.

Georgia under Saakashvili also wanted to join. By that crazy logic, Georgia should've been accepted. That would've been fun, wouldn't it? Countries wanting something doesn't mean that they should get it. It's not a justification.

The sanctions aren't causing oil prices to fall. What is, I have no idea.

The Glorious Peninsula of violating women's rights.

I dont think it was planned, more like the inevitable risk of having an economy reliant on an inherently unstable market like oil. Coughscotlandcough.

Now to solidify Russias fall from power and begin the decline of the middle east the west needs to triple its funding into fusion and other alternative energies.

Scptland has many products and brands (whiskey) unlike Russia. Besides Kalashnikovs there is nothing what Russia exports.

Russia spended about 40 million dollars to keep the Rubble stabile. It will have reserves for 4 years and than Russia will go back in the age of Yeltsin.

I personally can hardly wait when gasoline prices start to shrink.

Oh, so Russia doesn't export Natural Gas?

From Wikidoria: Export goods: petroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, and a wide variety of civilian and military manufactures

And Russia won't go back to the Age of Drunkard for a very long time.

Of course you don't need another USSR or Cold War. All I am saying is that a strong Russia is a necessary evil. But not this type of Russia. A sensible and fair Russia. One that can keep others in check. A strong voice on the security council

for sure! it would be so helpful if putin would exert his influence for peace in places like Syria where WE have no friends.

The US is targeting the Russian economy. Why would Russia help the US anywhere?

Well played USA. They hit two birds with one stone. Canada exploring their oil-fields and USA producing oil again, Nigeria producing more oil and now the reduce of oil price, it will destroy Russia's economy, since Russia depends only on oil now. China has suffered a decline on industrial sector, which would make The Premier, reconsiderate their alliance with Russia.
Now starts the real effect of the sanctions

I'm confused as to why you would blame the US for OPEC's decision not to cut production.

B/C OPEC can do no wrong, obviously.

[Anglo-California]

The ruble is rubble.

+1

[Janshah]

Well.. if the US had not been chasing after shale oil so fanatically, then OPEC would not have felt they needed to defend their position by competing on price, which is the real issue here.

But the whole shale oil rush started well before the relations between the US and Russia turned so sour.. so unless you read into this that the US _planned_ to sour relations with the Russians at this particular time well before the Ukraine started to get restless, and that they were somehow able to predict exactly when OPEC would get uneasy despite the US' poor track record of timely predicting anything else in the middle east..

And these low prices are actually rather harmful to the US itself too, since the recent oil industry boom in the US had its whole raison d'etre in the high price per barrel.. which now isn't there, so this is going to invalidate a lot of people's business model.

Sure, America's policy had something to do with the direction this took.

But I'm hesitant to attribute it so readily to an actual intent and competence.

[Chestaan]

Well played USA. They hit two birds with one stone. Canada exploring their oil-fields and USA producing oil again, Nigeria producing more oil and now the reduce of oil price, it will destroy Russia's economy, since Russia depends only on oil now. China has suffered a decline on industrial sector, which would make The Premier, reconsiderate their alliance with Russia.
Now starts the real effect of the sanctions

I'm confused as to why you would blame the US for OPEC's decision not to cut production.

Because Saudi Arabia, America's staunch ally, was one of the main voices against cutting production. This leads some to believe, correctly or not, that the USA influenced them to come out against cutting production.

[Myrensis]

Georgia under Saakashvili also wanted to join. By that crazy logic, Georgia should've been accepted. That would've been fun, wouldn't it? Countries wanting something doesn't mean that they should get it. It's not a justification.

Somebody should explain that to Russia. Sorry bubby, but it's not the wests fault that all those countries that previously enjoyed the warm embrace of Russian friendship want to make sure they never have to experience it again. Or that Russia decided that the best way to allay their fears was to...do the exact thing they were afraid of, and thus cement their commitment to the west.

[Myrensis]

I'm confused as to why you would blame the US for OPEC's decision not to cut production.

Because Saudi Arabia, America's staunch ally, was one of the main voices against cutting production. This leads some to believe, correctly or not, that the USA influenced them to come out against cutting production.

Saudi Arabia isn't doing this out of loyalty to their 'staunch ally'. They're doing it because they're terrified that shale oil taking off means their economy, and their usefulness to us, are going to go into freefall. 90% of Saudi Arabia's exports and 80% of their total revenues come from oil.

[Putin the Bear King]

And then cue the EndWar scenario.

[Buse]

Oh, so Russia doesn't export Natural Gas?  From Wikidoria: Export goods: petroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, and a wide variety of civilian and military manufacturesAnd Russia won't go back to the Age of Drunkard for a very long time. 

Well that was my point. Besides natural resorces Russia has nothing to offer. There is no product that comes from Russia besides that. Russia has no its own brand on which it can base its economy.

Here is a hillarious animation onnthe Ruble and oil.

[Kalifati Arab shqiptar]

For the kid who wanted the source.

http://m.bbc.com/news/business-30276353

Read it all

[Bojikami]

Meh, that's what happens when you base your economy on oil. I'm sure that if Oil declines further, Russia will just find something else for its economy to be based on.