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Russia Appears Unprepared For Market Chaos (Again)

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Russia Appears Unprepared For Market Chaos (Again)

Click to see full-size image

On March 9th, 1 US dollar reached a price of 75 rubles, and the oil prices reached a nearly 30-year-low, with Russia showing that it is, yet again, woefully unprepared for a crisis, similar to those in 2008, and in 2014 when the ruble fell rapidly.

Below is a timeline of what exactly happened:

On March 9th, the price of North Sea Brent oil fell by more than 27%, dropping below $32 per barrel, the price of WTI fell below $ 30 per barrel. During the bidding price for Brent fell by a maximum of 31%, to $31.27 per barrel.

The cost of Brent crude oil began to decline as early as March 6th, amid reports of OPEC + countries’ inability to agree on a new reduction in production.

Against the background of collapse in oil prices, the rates of American and European currencies soared on the international currency market. At the moment, the dollar exchange rate on Forex reached 75 rubles., Euro – 85, but in the afternoon of March 9th, the Russian currency recovered a bit. Currency trading on the Moscow Exchange on March 9th is not held because of the weekend.

Russia Appears Unprepared For Market Chaos (Again)

Change of the ruble against the dollar on March 9th, 2020. Click to see full-size image

Russia Appears Unprepared For Market Chaos (Again)

Change in the ruble against the dollar in the 30 days before March 9th, and from March 4th to March 9th, specifically. Click to see full-size image

The Bank of Russia has announced that it will not buy currency in the market under the budget rule for at least 30 days.

Falling oil prices and the strengthening of the dollar and the euro have affected Asian indices. The Hong Kong Stock Exchange Index Hang Seng fell 1064 points (4.07%) to a value of 25071, according to data at 04:54 Moscow time.

The Nikkei 225 index of the Tokyo Stock Exchange also declined at the opening of trading. It fell by 1196 (5.77%) points to the level of 19553 points as of 05:10 Moscow time.

According to data at 05:17 Moscow time, on the Shanghai Stock Exchange, the SSEC index fell 2.11% to 2970.75 points.

European exchanges on March 9th opened at a low. The London FTSE 100 index at the opening dipped 8.54%, German DAX – 8.09%, French CAC 40 – 6.31%.

Russian stocks collapsed sharply at the opening of trading in London.

  • Shares of Gazprom fell 24.82% to $ 4.12 as of 11:22 Moscow time;
  • Rosneft – 23.54% to $ 4.41;
  • Novatek – 33.6% to $ 92.5;
  • Gazprom Neft – by 11.62% to $ 24.35.
  • Norilsk Nickel shares lost 10.57% and amounted to $28.96;
  • NLMK fell 13.6% to $ 15.09;
  • Severstal – 18.9% to $ 9.63.

The price of shares of the Saudi oil company Saudi Aramco against the backdrop of the breakdown of the OPEC + agreement following the results of trading on March 8th fell by 9.09%, to 30 riyals (about $8), dropping for the first time below the IPO. Amid the outbreak of a new coronavirus threatening the global economy, a meeting of OPEC oil ministers and countries outside the organization, including Russia, Kazakhstan and Azerbaijan (OPEC +), was held in Vienna on March 6th.

For the first time since 2016, the participants in the meeting could not agree on the terms of the deal to reduce oil production, and it will cease to be effective from April 1st. At the last meeting, Russia and Saudi Arabia took opposite positions.

Moscow refused an additional reduction in production and proposed to extend the deal under current conditions (a decrease in oil production by 1.7 million barrels per day) for the second quarter of 2020, and Riyadh advocated a reduction of another 1.5 million barrels per day, until the end of 2020.

Rosneft, in turn, said that for Russia, the deal with OPEC + was “meaningless”: yielding its own markets, the country only “cleared the way” for American shale oil.

Amid a breakdown in the agreement with OPEC, Saudi Arabia announced its readiness to increase production to more than 10 million barrels per day, and, if necessary, to a record 12 million. In addition, Saudi Aramco also decided to lower crude oil prices.

Analysts at US investment bank Goldman Sachs admitted that the price of Brent crude could fall to $20 per barrel. In addition, they lowered their forecasts for the second and third quarters, suggesting that the cost of a barrel of Brent will not exceed $30.

According to Russian Minister of Energy Alexander Novak, now the increase in oil production in the country depends on the plans of domestic companies. Exiting the deal may allow Russia to increase production by 0.3 million barrels per day, he noted.

Furthermore, according to the forecast of LUKOIL co-owner Leonid Fedun, due to the collapse of the deal, Russia will lose between $100 million to $150 million daily.

According to him, although Russian companies have expressed their desire to increase production, a growth of 2-3% will not be able to compensate for future losses. Currently, there is a rare combination of a massive negative oil demand shock, positive supply shock and no swing producer, that causes the crude oil price implosion, the founder of the consulting company Rapidan Energy Bob McNally, said on Twitter.

The last time such a “terrible combination” was in the early 1930s, against the backdrop of the Great Depression, and then the price of oil fell to “cents per barrel,” he said.

The most optimistic scenario, considered by experts, suggests that China will quickly take control of the situation with the coronavirus, and the disease will not continue to spread and will not have a serious impact on most countries in Europe and North America. In this case, the authorities will not need to take harsh measures to contain the epidemic; in addition, the disease will practically not affect transport, experts said. In this case, world oil demand, according to their forecast, will increase by 480 thousand barrels per day. Whether this will actually happen remains unclear.

The situation in Russia, specifically is the result of intentional actions from the economic bloc in the Moscow government. Specifically, Elvira Nabiullina and Anton Siluanov, as well as other “members of the team” of Alexei Kudrin. All of these individuals have known ideological and administrative ties to the Higher School of Economics, and through it to their Western Curators, to which they’re directly associated.

This group (the liberal part of the Russian elites) intentionally led the Russian economy to a devaluation of the ruble. In order to do so, they exploited the situation in the world economy, which currently combines the onset of a recession, the coronavirus panic, the decline in demand for resources. This was technically done through the employment of the market instruments.

Several years in the past, the Russian Central Bank entirely and transparently published the instruments and actions in response to all possible financial scenarios. As a result, it could be deemed that the actions of the regulator are public and fully consistent with the published instructions. This has been repeatedly used by international speculators. For example, in 2014, when the ruble fell previously.

A significant part of the liberal economic bloc supports the devaluation of the ruble, as it believes that it will allow to preserve the budget amid the falling energy export revenue. The same liberal bloc has little interest in solving the actual problems of the population: the reduction of purchasing power, the climbing prices in the domestic market. This can be easily seen in the rising fuel prices, as well as the subsequent increase in prices for all sectors of the national economy. The current situation will also lead to an increase in inflation, which the Russian Central Bank declaratively fights against. Thus, the regulator is forced to undermine its own policy from the previous period.

The formal motivation for this is the following: the liberal bloc claims that it expects a further decline in the global economy, and it says it is needed to keep financial reserves in order to use it in the event of further deterioration of the situation. However, if the Russian economy falls into a peak crisis as a result of these actions, the collected resources will not be enough to stop the impending further collapse.

A metaphor can be made here, with coronavirus panic and the possible infection – if an individual begins undergoing an intensive traditional therapy at the first symptom, then it is highly likely that the disease will pass in a mild form. If treatment begins only when the situation has, more or less, gone out of control, then the chance of death is quite significant.

In many respects this situation coincides with the political changes in the country and the on-going constitutional amendments. Despite the fact that some of them were partially blocked (for example, the inability to own foreign property for officials and members of parliament), they provoke a hysteria of the liberal portion of the political elites. The economic decline will undermine Putin’s approval rating. As a result, the liberal elite is attempting to exploit the current situation to achieve its political interest and fight against the so-called ‘patriotic part’ of the Russian elites.

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  • johnny rotten

    The shale will be destroyed, the princeps clown will loose his head, letterally.

    • Jake321

      Maybe. But that is a small fraction of the US economy. Putz Putin’s RF floats on oil and the plug has been pulled. Bye bye 👋 👋 👋

      • Lone Ranger

        Oil and gas gives only 9% of the Russian GDP.
        Better luck next time ;)

        • elpocho

          exactly. Russia is an industrial power house. just look at the annual energy consumption. stock markets do not rapresent the real economy

          • Lone Ranger

            Stock markets are smoke and mirrors.
            In reality the U.S. exports less than Germany.
            Without the debt bubble and virtual profit/derivatives, the U.S. economy has about the same output as the UK or France.

          • elpocho

            yeah they fake it through velocity of circulation of dollars, but that only works in a everexpanding economic growth, which is by definition nonsensical

          • Lone Ranger

            And the bubble will eventually burst sometime…
            Problem is the debt bubble today especially the derivatives and the housing market is 30times bigger than jt was in 2008.
            No ammount of bail outs will solve it this time…

  • par4

    Russia says F*ck the dollar

    • Jake321

      LOL…as the Ruble falls off a cliff followed by the Russian economy and then Putz Putin’s RF right into the dustbin of history to keep it’s thankfully dead Russian Soviet Empire company.

      • MikeH

        Hardly. Exports will rise, imports will fall.

        • Jake321

          LOL…the only significant export Russia has is oil and gas that is mostly tied to the price of oil. Sure Russia will have to increase oil and gas exports to keep from going bankrupt immediately. But at prices so low that it’s revenues will still go down. And it will sell in to a falling market in such quantities to make the price go lower still. You are in really deep economic doo doo, Igor. Better stock up on your Vodka ration while you still can. You’ll need every last drop to drown your sorrows.

          • opereta

            And Grains, Planes, Trucks, Cotton, Fabrics, Chemicals, Fertilizers, Coal ??? It looks like Old Jake321 lives in an Altern Universe where Russia doesn’t export these items…

          • Lone Ranger

            You are delusional. :)
            Meanwhile Russia runs a massive trade surplus contrary to the U.S. trade deficit of $640billion per year.

      • Jesus

        What is Dow Jones doing? Down almost 6%?
        Russians are going to use the same amount of rubles to buy the things they bought a month ago.
        Americans saw their portfolios evaporate 15%.

        • Jake321

          LOL…as the bulk of the Russian economy represented by oil and gas evaporates. Bye bye Putz Putin and RF. Oh, and hopefully, our market slide means bye bye Moron Trump. It may mean a recession but not no bye bye.

          • Lone Ranger

            Oil and gas gives 9% of the Russian economy.
            They are virtually debt free with a Forex reserve of
            $560biion.
            Russia will be fine.
            U.S. not so much.
            First casulty will be shake oil.

          • Adi

            Russia’s economy is roughly a tenth the size of the U.S.’ (the World Bank stated that Russia’s GDP in 2015 was $1.3 trillion.)

          • Lone Ranger

            World bank is a globalist run Organisation…
            Aside from that its the GDP ppp that counts and that is $4.6trill with only 12 % debt to GDP ratio.
            U.S. economy without the BS debt bubble and derivatives is about the same as that if France…
            Even Germany exports mire than the U.S.
            Russia ru s a trade surplus of $200billion a year, the U.S. runs a trade deficit of $640billion.per year…
            Better luck next time Slomo…;)

          • Adi

            The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. HAHAHAHAHAHAHA

          • elpocho

            the US has a privatized economy. everything is lumped in stocks and controlled from the stocks market. Germany Holland or Sweden are much more healthier societies by any possible metrics and criteria

          • Jake321

            Maybe in some areas. But note we were comparing the US to Putz Putin’s failing Russia. Try to keep up.

          • Lone Ranger

            U.S. is the one failing not Russia tho…

          • Lone Ranger

            On paper.
            Not in reality tho…

          • JIMI JAMES

            No USA has the worlds largest GDP debt per capita frgn well like it,flogged!

          • AM Hants

            With $22 trillion plus, national debt.

            It has just defaulted on 16th February bills.

            Plus, it is heavily reliant on imports.

            Russia is self dependent. An export nation, in control of her vast wealth of natural resources, which cannot only feed herself with Russian, non-GM, agricultural products, but, also a nation with healthy currency and gold reserves.

          • elpocho

            That is utterly meaningless. for two reasons: 1) the russian market is closed for US/UK companies. completely sealed off. they can not get in. Unlike finnish, german, french, chinese companies, they need to stay out. So any monetary advantage is useless. 2) Russia doesn’t need to import jack ”s” from the US. So basically you are describing which is better between the red and blue magnet: they never meet anyway!

          • Adi

            Exactly,good old Soviet economy coming back! Hahahaha

          • elpocho

            For the US, when the Fed will start buying the STOCK MARKET for the first time in history, and when trumpo will start subsudizing shale producers. the tables have turned. healthy capitalism is now in Russia/China while you are left with socialism for the rich and corporatism for the poor. and only because you are so damn lazy…XD

          • JIMI JAMES

            Rather soviet economy than the present us 24 trillio never pay back cowards!See the real difference will show in the end,usa failed (period)
            all the money,all the headstarts,all the opportunity,all the world for what?
            same sex marriage and a packa hegemon lies?Youll se ha’ha,youll see!
            Have a productive day mr hi’hi.

          • Jake321

            LOL…yoy’ll show them! As you take the oil slide down into the dustbin of history just like your thankfully dead Russian Soviet Empire did claiming the same. Well, go for it. And bye bye.

          • Lone Ranger

            Sounds more like the U.S. shale industry at the moment ;)
            Dont cry…;)

          • JIMI JAMES

            No future in socialism,nor lgbtq,nor same sex marriage,nor fake economys,nor lies,nor deadbeats without soul,nor kweers,not incest,nor soros,nor biden,nor crack nor cia,nor nazis,nor eu-epp nor us shale and stocks recoverys,it over!
            You don’t get it do you? When CCCP severed,it was planned that way by cia ok!
            Do you think Putin not know treasons,do you honestly think he is gorbachev?

          • JIMI JAMES

            World bank only accounts for a fraction,there’s more to real world economies than just shifting one anothers money with no factual frameworks,conversely usa is in 24 trillion debt,do what fkdassed bank assume usas to be ten times more?
            Truth time,let the real economic commence,then lets see the world bank try to bail usa outta this one,without squealing like little piggy bankie up its cakewholes!

          • AM Hants

            You have left out GDP debt. Russia is around 20%, with healthy currency and gold reserves. Not forgetting Russia is a creditor nation.

            The US has over 110% GDP Debt, just defaulted on her $22 trillion plus, national debt.

            Not forgetting Product Parity Power and isn’t it running about 8.5% in Russia.

          • Jake321

            Oil and gas revenues represent almost half the Russian budget and over two-thirds its foreign trade. Try to keep up.

          • Lone Ranger

            Only gives 9% of the Russian GDP…
            Try to handle it…

          • Pavel Pavlovich

            Russia is doomed and the rest of humanity will suffer horribly too if her people do not vote for the constitutional reforms in sufficient number.

          • Lone Ranger

            You spelled the U.S. wrong tho…

          • AM Hants

            Think you mean Ukraine.

          • Pavel Pavlovich

            ALL of the Russian world, including Ukraine (I was born in Ukraine).

            As a matter of fact, and as I mentioned, ALL of the world will suffer.
            We already are and have for decades because of that.

          • Jesus

            You like to dwell on old info, Russia can balance its budget with oil at 40, with forex reserves of 550 billion. It is self sufficient with very little debt bursting the frackers debt bubble of close to a trillion, pushing the US debt driven economy into a deep recession…..or maybe off the cliff.

          • Jake321

            LOL…oil has already fallen to 30, dodo, and is still going down. Try to keep up.

          • Lone Ranger

            Bxe bye Shale oil…

          • Jesus

            Yea dodo, that is where forex reserves or deficit spending come to play.

      • Lone Ranger

        Keep dreaming Shlomo.
        You tried the same in 2016 and failed miserably…;)

      • geopolitica

        russia have gold usa and europa gets debt

        • Jake321

          LOL…the US has more than 4 times the gold of Russia. Try to keep up, junior.

          • Lone Ranger

            On paper only…
            In reality nobody knows how many is left.
            They are putting tungsten rods in it to avoid getting caught…lolz.
            Most the U.S. gold reserves are in China ;)

          • JIMI JAMES

            Usa has nothing to show for other than rely from other g7 nations gold,get it?

      • JIMI JAMES

        All you got is nothing,no facts,no strategy,no conclusions because none of such exist!You are broken,do you realise how much you contributed to your demise,flogged?

    • Pavel Pavlovich

      Not yet they have not.

      • AM Hants

        You just never got the message.

  • AM Hants

    Stopped reading after the headline.

    Which nation came out of the 2008 tumble in a far better position, than most of the other nations affected, at the time?

    Which nation only got stronger, when the US threw 2014 santions at her?

    Which nation turned to OPEC and said, F*?

    Which nation can afford to educate their people, to university level, provide free healthcare to all, is a creditor nation with healthy currency and gold reserves, whilst being in control of her vast wealth of natural resources and has minimal debt to boot?

    Which nation, is using the Covonovirus to default on their 16th February payments and happens to be a debtor nation, with over $22 trillion worth of natuional debt? A nation that cannot feed it’s people, or clean up the human faeces, lining the streets. A nation that cannot afford to educate their people, to University Level and cannot provide free healthcare to their people. A nation who had no idea that NO was in the Russian vocabulary?

    So remind me, who is prepared for weathering the storm and who is waiting for one heck of a financial tsunami to come their way?

    • John

      Exactly AM, not buying the article at all.

    • Lone Ranger

      Spon on.

    • Jake321

      Putz Putin’s RF lives or dies on the price of oil. Do note, that the economy contracted in Russia about a third since the Sanctions. And that was before this big hit they are about to take in an oil war with the Saudis and a new arms race with the US. You have an ignorant opinion. The smart money in the world is betting against the Putz and your ignorance.

      • Robert Ferrin

        Lol and your and idiot a low paid troll working the sites under many handles.What arms race Russia is so far ahead of the U.S. that they don’t even bother looking back and oil and by products no longer control the Russian market, as more and more manufactured products come on line and that even fails to show the huge amount of Russian raised grain and products hit the market.!!!.!!!

        • Jake321

          LOL…you’re battling a thousand at being wrong, junior. Over two-thirds of Russia’s foreign trade is from oil and gas. Almost half of the Russian budget is from oil and gas. Without trade with the West, Russia dies economically. Try to keep up. And for some ten years I have always used the same tag and have never used another. Oh, I do this for the fun of it and getting to know my enemies better.

          • Lone Ranger

            Oil and gives only 9% of the Russian GDP…
            They have $560billion in reserves, they could go on for years even at zero a barrel…
            U.S. on the other hand is already going belly up…

          • Pavel Pavlovich

            10% of the GDP but 50% of the budget. And an economy 100% based on the dollar.
            What do you think is the constitutional reform for? We are heading into the abyss and there is little time to turn.

          • Lone Ranger

            Russian economy isnt based on the USD, sorry to dissapoint you.
            Budget will be fine even with $25 a barrel.
            Aside from that Russia has $560biion in Reserves.

          • Jake321

            LOL…yesterday you said it would be fine with $30 a barrel as it had already headed for $20 a barrel. Try to keep up with the falling oil price, Igor. Get more if your Vodka ration while you can. You’ll surly need lots for your solace.

          • Lone Ranger

            I would rather worry about the stock market and the shale industry going belly up, Schlomo…
            I said $25 by the way not that $5 a difference would matter…

          • Jake321

            You lie as always. You said $30. But you conveniently hide your past posts to try to hide all your past lies.

          • Lone Ranger

            You are the one lying as usual…

          • Lone Ranger

            Cool story…
            But we all know you are a paid troll.
            With 47000 posted comments…

          • Lone Ranger

            And you stock up on Xanax and SSRIs.
            We don’t want to trigger a PTSD episode, want we…

          • wayinbgi

            Article is BS. Russia can ride it out. The ruble floats to absorb price shocks in dollars. A majority of their oil is now sold in non-dollar currencies to lessen their exposure to capital outflows. Then there’s their low extraction costs, on par with SA but without their budget needs. The market will soon settle but America and Europe, not SA, will come with offers of sanction relief.

          • AM Hants

            2014, Obama and Saudi made the mistake, to assume Russian GDP was 50%. They had no idea Russian GDP Budget, used energy for 16%, it has now gone down to under 10% (Russian GDP Budget).

            Do you have any idea what the constitutional reform is all about?

            It is courtesy of President Putin, tweaking the Constitution, following the resignation of the Government and safe guarding the reforms of the Putin era. Remember, you cannot be an MP if you have dual citizenship or a residence outside Russia.

            You were in the abyss in the 90s or are you talking about the situation in Ukraine?

          • Jake321

            LOL…Now it’s zero. Yesterday it was $30. Earlier today it was $25, Then it was $20. But the actual price kept dropping faster than you could make up numbers. So to be safe, it’s now zero. You truly are funny. But anyway, bye bye for now.

          • Lone Ranger

            You keep repeating yourself while your savings are going puff ;)

          • JIMI JAMES

            Know this us shale is in tatters,russia can sustain $20per barrel over ten years,
            I know which ten years i’d hedge my bet,it certainly ain’t the disneys economy,no!

          • Jake321

            LOL…Damn, you guys’ Kremlin handlers just can’t keep up with the falling price of oil. Yesterday you guys said $30 was fine as the price dropped below $30. Earlier today it was $25 while the price dropped below $25. And now it’s $20 from you as the price has fallen to $20 with no indication it has stopped falling. You guys are truly entertaining.

          • Lone Ranger

            You keep telling the same BS to everyone…
            Is that a new script Shlomo…?
            Not very creative I have to say…

      • Concrete Mike

        Yup and im sure.if younwerent in diapers then, you would have baught.GM stock in 2007.

        Smart money my ass.

        • JIMI JAMES

          Gm -11%?

        • Jake321

          Nahhhhhh…I bought Apple stock back then, plus gold. Sorry for your congenital ignorance and bad luck, kid.

      • JIMI JAMES

        Give it up scam,The smart money is in stimulus,not up ye cakehole flogged!

    • Red Pilled ThoughtCrimes

      is that the nation that has bought stacks of gold? (which is at a 7 yr high)

      • AM Hants

        Yep. Remember Gordon Brown, selling UK gold, to his mates, at the lowest possible price.

        Well, he also raided the private pensions and also snuck out, in the middle of the night to sign the Lisbon Treaty. Think he was also a member of Common Purpose, like Blair, Major, Cameron and May.

      • Pavel Pavlovich

        10% of the gold in reserve, 90% is in the dollar. So much for that.

        • Lone Ranger

          That only means 90% will suffer.

          • Jake321

            Hey did, the US Dollar is going up while you’re near worthless Ruble has fallen off a cliff. Try to keep up. Anyway, the US has more than 4 times the gold reserves of Russia.

          • Daily Beatings
          • Lone Ranger

            Did you wake up from your nap sunshine ?:)
            On paper only.
            In reality all the gold was transferred to China.
            U.S. probably has only tungsten and lead bars…
            Fort Knox wasn’t checked since the 70s….

          • Jake321

            Sure, Igor. Now tell us again how the US never landed on the Moon. And chocolate milk comes from brown cows. You losers are really entertaining.

          • Lone Ranger

            That’s a lot of salty tears…
            I would be angry too if all my savings would go belly up in 30mins ;)

          • Lone Ranger

            Better luck tomorrow…;)

          • thomas malthaus

            I raise brown cows.

      • Jake321

        Maybe. But after all that buying it has less than a quarter of the gold the US has had for a long time. Thanks for letting us know that not only is the US Dollar getting stronger, it has made about 5 times the gain on its gold reserves compared to Russia whose near worthless Ruble is falling off a cliff.

        • Lone Ranger

          Ruble is fine, meanwhile U.S. economy is in a free fall.

        • John Vishnevskaya

          The US has no gold Jakey with hands on snakey. You cannot believe what has never been seen nor sudited unless you believe in the fairy god mother. Do you ?

    • Pavel Pavlovich

      Russian economy is based upon exporting raw recources like “fossil fuel” (I do not believe in its being of fossil origin) and metals. In exchange roubles are generated. Furthermore, the Central Bank of Russia is obviously a servant of the IMF.

      What did you expect? This is why there is a constitutional reform in the making – 2 million people demanded it with their signatures. Could be 2.5 million now. Things are coming to a head now. If the Russian peopl have wisened up, they will vote “yes” and in great numbers (50% minimum, 80% or more would be optimal). Although the issues are not as of yet final, i.e. what will be voted upon.

      These are the deciding months – will the monopolar world reign for another period of years, or will a multipolar world finally arise? Once again the Russians will have to decide not only their fate but that of 95% of humanity.

      • Lone Ranger

        Disney called they want you back…

        • Jake321

          What do you know from Disney. A dreg like you couldn’t even afford to visit anyplace with a Disney Park.

          • Lone Ranger

            I could afford it but why would I want to go to a distasteful place like that…
            It’s like Las Vegas for kids.
            I pass…

          • Jake321

            LOL…sour grapes. Hey, a dreg like you couldn’t afford to go to an adult Disneyland like Tivoli Gardens either.

          • Lone Ranger

            If that makes you sleep better…
            You are a sad and bitter person probably living alone…

          • Jake321

            LOL…wrong as usual.

          • Lone Ranger

            Sure, that’s why you have enough time to post 50,000 comments Instead of being with your family….

          • Jake321

            Over a dozen years. And you have over 4,000 in one year. So our rate is about the same. And I can multitask and don’t need much sleep. Spend lots of time also with my family, friends and
            professional associates. And you?

          • Lone Ranger

            Cool Disney story…
            Actually that 4000 wasn’t posted in a year more like 3.
            I’m ok thanks for asking…

          • Lone Ranger

            P.S. Disney was CIA asset…

          • Jake321

            So what? That diversion doesn’t change the fact that you are a dreg who can’t afford to even visit Disneyland.

          • Lone Ranger

            According to whom?
            Sorry Shlomo your magic wand still ain’t working in me…
            Time for you to pop another Xanax…
            Watch out for your blood pressure…

          • Jake321

            My blood pressure is fine. And Xanax isn’t for blood pressure. I know you just keep to your healthy Vodka ration binging.

          • Lone Ranger

            I doubt it’s fine with that much stress you out yourself through ;)
            Well if it’s caused by stress or PTSD it’s good for it…

          • Jake321

            It’s just fine, even with the stress. But your Vodka ration binging will send you to an early grave like most Russian men.

          • Lone Ranger

            I rarely drink and when I do it’s Martinis or sweet dessert wines.
            I have a girly taste…

          • itibi ra

            Try not to feed the yid troll. Just downvote him and then move on.

      • AM Hants

        Have no idea what you are on about. Russia is a nation which exports, unlike the US, which is dependent on imports.

        How much does Russia export, besides energy, which makes up less than 10% of her GDP Budget?

        What are the 2.5 million people voting for/against?

        Are they not used to the games that the West throws their way?

        Do they not remember the days of Yeltsin? When the oligarchs stripped Russia bare? When the US wrote laws and taxes on 3rd World Partnership Agreements, where the US took 80 cents of every $US energy sold, letting Russia keep 20 cents, but, only after they paid contract fees on their own resources?

        1 January 2004 that all stopped. The bad oligarchs, who refused to pay the 13% flat rate tax and stay out of politics, went to live in exile. Russia, back in control of her resources repaid the $45 billion Soviet Union debt. Including when the Bolsheviks overthrew the Russian Empire. Paid off the $16.5 billion, Russian Federation debt. Saved currency and gold reserves and the minimal debt they have, is easily offset by their healthy currency and gold reserves. The 11 time zone nation can feed their people, with home produced, GM free agricultural products. Whilst providing free health are and free education, including University level to the people of Russia.

        So what exactly were you on about and who is complaining about what, precisely?

        • The very same liberals he claims is the problem.

          He just parrots whatever he thinks are facts by whichever group says what he thinks.

        • Pavel Pavlovich

          2.5 million people have signed a signature to demand a constitutional reform to return souvereignity to the Russian nation and, by extrapolation if you will, the return of all territories from 1945.

      • AM Hants

        Ps, the constitutional reform, if the people of Russia go for it, then they are just securing the country and all the good President Putin and his team have achieved, in order to stay self dependent?

        So how does it link in with the article I refused to look further than the headline?

        Bearing in mind the headline states Russia is unprepared for the coming Saudi/US hissy fit?

        • Pavel Pavlovich

          The constitutional reform, if successful from the POV of Russian patriots (whose leader is Putin himself), will change THE GEOPOLITICAL situation. By securing the country they (or we, as I am part of the Russia world) will secure the territories of 1945 also, and a multipolar world. Bcs without the nuclear capabilities of todays RUSSIAN FEDERATION there is no way THEY (the US as ruled by olligarchs) will surrender their grip on the world.

          • AM Hants

            Why when reading your comment do I find myself thinking about a scene from an Ian Fleming movie?

            How have you explained Constitution Reform?

            The same Constitutional Reform that President Putin proposed, when he wished to change the Government of the day in Russia? No dual citizenship, no MPs with residential homes outside Russia. Plus, a change in Presidential Terms, where fortunately, he can start all over again and run for another 8 years.

            The territories of 1945, when the WWII ended? Surely, Russia would be more interested in returning to the territories of around 1654 than 1945?

            ‘Without the nuclear capabilities of today’s Russian Federation, there is no way they (US as ruled by the oligarchs) will surrender their grip on the world?????’

            Sorry, lost in translation. Remember the cold war, and the deterrent was the fact both NATO members, led by the US and also the UK, nuclear deterrent systems, together with the Warsaw Pact nations, provided mutually assured destruction, which kept the peace in Europe, till the Warsaw Pact was dismantled. Now Russia is in the lead, with weapons and systems, including the hypersonics, in full active service. The US is generations behind Russia and possibly China and don’t even try bringing in the other NATO members into the equation, unless you take the Luxembourg Forces seriously.

            The oligarchs that controlled Russia in the 90s, those that could not behave themselves, are now operating over in Ukraine or controlling events in Ukraine. Remember, it was President Putin who slung them out of Russia, and without changing the constitution.

      • jm74

        Russia’s foreign debt is the lowest in the Western world, they are self sufficient and the Ruble has very good local purchasing power. Russia is largely immune to the financial and commodities collapse.

        • Jake321

          Time to awake from your delusional wet dream, Igor. And stop your Vodka binging that has pickled your brain.

          • Lone Ranger

            Calling everyone Igor is a bit two dimensional…isn’t it Shlomo !)

          • Jake321

            Maybe. But indicative of reality, Ivan.

          • Lone Ranger

            At least you are getting creative Ytzak…

          • Jake321

            I have no one in my family with that name or the other you use. But I bet you have an Igor or Ivan in yours. Damn, even I have an Igor in mine. Or is the guy Gregor?

          • Lone Ranger

            Oh fur fuck sake.
            I’m Hungarian.
            Nobody in the family is Igor or Ivan…

          • Jake321

            Well, if you missed it, Hungary is no longer a satellite of the Kremlin. So why do you keep posting as if your are still under the thump of the Kremlin, Gregor?

          • Lone Ranger

            Because I’m a free Human being and can decide whom the good guys are…
            Welcome to 2020…

          • Lone Ranger

            Why do you hate Russia.
            What did they do to you?

          • opereta

            A Russian Komissar Processed Him in Debaltseve, Donetsk Oblast, Ukraine….But he was safe since now they use profilactics (prevents HIV)… The thing is that He doesn’t know that !

          • Jake321

            I have no idea what you’re ranting about. Nor do I think you do. As an aside, never been to Eastern Europe. Unless Czechoslovakia and Yugoslavia count as Eastern Europe.

          • Lone Ranger

            Depends which CIA map you look at…
            During the cold ear it was eastern Europe.
            The Czech republic and Slovakia are now Central-Europe,
            Serbia is Southern Europe.

          • Jake321

            I don’t hate Russia or Russians in general. Lots of great people and great culture. I hated Stalinist Russia our mortal enemy during the Cold War. I especially hated hitting my head during Duck and Cover. I hate Putz Putin’s Russia because of its attack on our most basic institutions and social stability. Oh, and I’m so glad all my grandparents had the smarts to get the hell out of your shithole Russian Czarist Empire over a century ago and come to the US. Too bad yours didn’t have the brains to do the same.

          • Lone Ranger

            If Russia had been your mortal enemy during the cold war you wouldn’t be here today…
            More like an adversary.
            Putin didn’t attack the U.S. in any form that’s a CIA/Soros propaganda lie.
            The deep state on the other hand did attack it.
            Patriot Act, NDAA, TSA, foreign trained police force, electronic voting machines run by non state and foreign entities….that’s an attack on your democracy.
            Putin’s only crime is that he wont bend over to your deep state and they can’t plunder Russia like they did in the 90s.

          • Lone Ranger

            Hungary was and is a civilised country.
            No reason to leave, not back than, not now.
            Aside from that I don’t trust people who leave their country.
            If you aren’t loyal to your country you were born in why would you be loyal to another one you pick later?
            These kind of people are only loyal as long they are comfy….
            There is a word for it I think….turncoats…

          • John Vishnevskaya

            you never really do add any value with you comments do you Jakey. I would love to read something intelligent from you one day just so we can all change our minds about you.

        • Pavel Pavlovich

          Bullcrap, the Central Bank does the bidding of the IMF, no amount of wishful thinking will change that.

      • Jake321

        Looks like monopolar will be here for awhile. And if it goes multipolar, that sure as hell will not include Russia.

        • Lone Ranger

          It’s already multipolar with Russia, China, India EU.
          U.S. is broke busted and disgusted…
          Time to wake up and smell the coffee ;)

          • Jake321

            LMFAO…you mean that mouse of Russia in the room with Elephants? You are hilarious, Ivan.

          • Lone Ranger

            That little mouse just blocked you on every front ;)

          • Pavel Pavlovich

            No… it is only emerging. It could change rather rapidly, but as of now, it is NOT multipolar. And this Coronavirus shit has just demonstrated that. Bcs only the world hegemon profitted from it while everyone else suffered. If aliens with an anti-human agenda arrived on earth tomorrow, the US would benefit most of all. Any crisis, really. Bcs they have the say.

          • Lone Ranger

            I disagree.
            U.S. Empire has been blocked on all fronts.

          • Pavel Pavlovich

            That danger was present until recently when this Corona bio weapon shit happened. Or even before that. China surrendered in the trade war, Iran was muted with the killing of Soleimani… no, my friend, there is a reason why Putin started this (irrevocable) process about reforming the constitution in a plebiscite (and not just by way of parliament/regional parliaments). This is a revolution of the people (who have not yet awoken), a counter revolution from 1991/93, where three referenda were needed to destruct the Soviet Union. We may see three such referenda to undo it – the SU was, after all, disbanded without legitimacy. Gorbi had not right to do so, so it can be undone. But for that to happen…

    • This article is nonsense anyway. Above it states domestic prices would go up and that inflation would also increase. It’s the same darn thing they just repeated twice but trying to make it sound like it’s two seperate things. A clear sign whoever wrote this is far from reality.

      Let’s also take a look at last time currency dropped. When it dropped in half at around 2015, inflation was 16%. Not 50%. And the countries revolves around rubles hence why prices are in rubles, contrary to wild claims by people like Pavlov on here who doesn’t know squat on economics but feels he needs to chime in with his amateurish “facts”.

      Russia’s reserves mixed in national welfare fund job is to help the budget and investments in tough times and that is what will happen.

      • AM Hants

        I am English and ignorant of Russia, till Ukraine kicked off. Then happily went to find out more.

        As well as being disgusted with how my Government was demonising Russia, it was also interesting to see Russia stand tall. No matter what was thrown at it.

        It only see. S like yesterday, the hysteria of the ruble against the $US. How cheaply Russia could produce oil, compared to US. Plus, how Russia was self dependent and GM free.

        Seriously envious, in a happy way. Wish Russia all the best.

        • Jake321

          Maybe. But you sure as hell pass the Putz Putin Troll Duck Test, Igor. Either that or you like to use RT and Sputnik as your only info source.

          • itibi ra

            hey jakey, jakey, jakey! I just downvote you all the time. I don’t even bother reading what you’ve written. Have a great day.

          • Trauma2000

            hey jakey, jakey, jakey! I just downvote you all the time. I don’t even bother reading what you’ve written. Have a great day.

            Best post of the day. Love it.

          • Trauma2000

            I’m a Putin Troll. Been a Putin Troll for several years now… decided to become a Putin Troll when I woke up and saw what The West was really like: War OF Terror, Recession & GFC, locking up and murdering journalists for doing their job, supporting IsraHell in their genocide of the Palestinians. So glad I woke up and became a Putin Troll. It’s like breathing fresh air and having shit up your nose from ‘brown nosing’ the establishment deep state.

    • Peter Jennings

      Don’t look now but here comes the FED with another overnight bag for desperate bankers of 100billion dollars.
      I wonder who’s game will end first?

      • AM Hants

        Do you remember Brown, back in 2008, bailing them out ‘as they were too big to fail?

        He raided the UK private pensions, sold the gold to the lowest bidders and then snuck out in the middle of the night, to sign the Lisbon. Treaty.

        I doubt they will stop at $100 billion, just expect the same from each and every nation.

        • Jake321

          However, the US can afford it. Putz Putin’s failing RF can’t.

      • Jake321

        Actually it’s more than that. But note the US can print money like that and still have near no inflation and interest rates near zero. Not true for Putz Putin’s failing RF.

        • Peter Jennings

          The US has an inflation rate of around 10% easy. Perhaps you haven’t noticed your shopping items getting smaller or made with lower quality ingredients.
          The US has changed the way that inflation was calculated some time ago. Their new calculations had to dispense with some critical criteria because it just wouldn’t fit the result they wanted.
          Let’s hope things don’t dawn on you all at once eh?

  • Jesus

    Putin knew of the consequences when he refuses a Saudi proposal for cutbacks, he instigated this move going for the US frackers jugular to put them out of business and neutralize their production.

    • Jake321

      LOL…yep, Russians can be great at self-destructive behavior like their Vodka binging to show what he-men they are and drown their real worldly problems.

      • Mike

        Whatever you say Yankee meth head.

        • Jake321

          Nahhhhhhhh…I’m not a Traitor Trump type guy.

          • Lone Ranger

            Trump is less of a traitor than Bush or Osama err I mean Obama was…

      • Habib

        Please you never gone to university to study economics Im laughing at you, therefore you got no idea about financial strategy.

        • Jake321

          Hey, kid, you may have gone to school but never took Economics or Finance. All I did was take post graduate classes in finance at a top university.

          • Lone Ranger

            Shows only it wasn’t much worth…
            You are the type of guys playing violin on the sinking Titanic telling everyone it’s only a minor hick up don’t worry…lol

      • Concrete Mike

        Dont you understand? This move is not against russia, its against domestic oil producers in the USA.
        You dumb sack of shit, this is extremely bad for US companies, guys like John Deere and Caterpillar are not very pleased right now.

        • Pavel Pavlovich

          As if Trump would do anything against the interests of the US and their elite.

          • AM Hants

            Really. More like he would do nought to upset Israel.

        • AM Hants

          Old Trump has not figured it out yet. Tweeting good for the public, but, bad for the markets.

          If only they had not targeted Nord Stream II.

          • BMWA1

            With the low fuel price generally (NG also depressed, not to same extent but depressed), EU has really shot itself in foot, it could surely use NS2 now more than ever.

        • Daily Beatings

          Trump and company should have left Nord Stream 2 alone. Payback is a bitch.

        • Jake321

          Maybe. But in that case you are major collateral damage that will hurt you way more than the US. Try to keep up.

      • JIMI JAMES

        Free care;s over flogged,that will tech ye cia cowards to be more civilised in the future!

      • Daily Beatings
  • Jake321

    Big bad Russia rules the universe. It has the biggest baddest economy. It is way greater than that failing midget of the US. It has the most stable economy and is for sure to have its Ruble as the new world reserve currency, replacing the puny US Dollar. It just laughs at those bankrupt weaklings. It will take back control of all those Russian places around and recreate the Russian Soviet and Czarist Empires since it has the most advanced weapons in the world and is so far ahead of the US in the new arms race that there is no competition…oh, never mind…

    • shylockracy

      You’re a very stupid kind of Ziowahhabi terrorist troll, you piece of JIDF dancing monkey shit. Even Putin with his pro-Western soft spots won’t ever want the “world reserve currency” status. You’ll always have to run a huge trade deficit so that everyone else uses your currency for petrodollars and international commerce.

    • elpocho

      The thing is Jake, no one rules the universe. Though, some are more dependant from markets than others. US currency encompasses 70 % of global trade, so that makes it much more vulnerable to shocks. its quite logical really. Russia is a net exporter, as Germany and China. They can simply keep their stuff for themselves

    • Lone Ranger

      Thats a lot of crying…;)
      I would cry too, if my Empire would go belly up like the U.S. is doing at a
      the moment…it seems the U.S. global Empire and the Greater Israel Project are indefinately postponed.

      • Jake321

        LOL…crying with laughter, Igor, as Putz Putin’s RF accelerates down the oil slide to the dustbin of history to play footsie with the thankfully dead Russian Soviet Empire. Bye bye.

        • Lone Ranger

          More like histerical tears ;)
          Like usual you are mixing up the U.S. with Russia.
          It would be time to lay down the Kool-Aid…;)

          • Jake321

            Sure Igor. Now go binge some more on your Vodka ration, right into an early grave like must Russian men.

          • Lone Ranger

            More salty tears Shlomo…;)
            I thought you were leaving by the way…👻

    • Adi

      And then he woke up smelling like cheap vodka and wondering why his electricity has been cut off and what the hell he is gonna eat today…

  • shylockracy

    Russia let the ruble take the hit for the Ziojew terrorist’s Nazi mess in Ukraine. If rubles taking a hit can make Putin break from Ziowestern terrorist partners, and crush Ziodi Arabia, that’s all the more reason to do it. Russians can manage to run a economy like that. Zioterrorist bloodsuckers will have to start QEing ad infinitum to try to stay afloat.

    • Jake321

      LOL…they can do that right down the drain. Their thankfully dead Russian and Czarist Empires await Putz Putin and his residual RF in the dust been of history.

      • Lone Ranger

        Time to insert your Tampax…;)
        U.S. economy is finally going belly up.
        Bye bye U.S. Empire…

      • JIMI JAMES

        fekn galah!

    • elpocho

      what hit? the ruble is already very very low. But thats not a problem. That only encourages self sufficiency. Russia is a large country, has everything it needs, Has large, close allies whom can trade with, The ruble is a non issue. If ruble goes even lower it will simply hit more central, western and eastern europe

      • shylockracy

        The hit is the RUB to USD value. For every day Russia, it means even cheaper cost of living and greater profits from exports.

        • Jake321

          LOL…hey dodo, it actually means the opposite. It means accelerated inflation. Evaporated savings. And lower net revenues on increased oil and gas sales which in turn will decrease the price and profits on oil and gas. Putz Putin and his RF are in some deed doo doo.

          • shylockracy

            Idiot. Most Russians have their money in state-owned banks that guarantee their savings, and gas prices haven’t fallen like oil. In the US, the private Zioterrorist banksters and Wall Street gambling Zionist filth will be bailed out by the taxpayer.

          • Jake321

            LOL…hey, dodo, the Russian Government guarantees those savings in RUBLES! Got that? In near worthless RUBLES that are falling off a cliff. There is a lag in gas prices but they are falling also. And that brilliant businessman, Putz Putin, has been contracting to sell gas to China and others pegged to the price of oil. So what about the rest? Our economy will dip and Russia’s will go to hell. YEH!

          • Concrete Mike

            Dont you get it idiot, the cheaper the ruble is the better it is to export goods. Your production costs in cheap.rubles, but you sell.in euros.

            And you end up with more rubles.
            We do the same in canada, its not reinventing the wheel here.

            Quit being a drama queen benchpress, russia will survive, it always does.

            We should worry about our.home instead of shitting on other peoples.

      • Jake321

        LOL…if you like living like the North Koreans, Igor.

        • elpocho

          I prefer living like San Francisco homeless veterans, tbh

          • Jake321

            I prefer living like the bulk of the folk in California. Damn, I do and then some as I view the Bay Area from my top floor condo. Don’t wish you were here. Dregs like you couldn’t afford it here anyway except in those tents on the street with your fellow dregs.

          • elpocho

            l have no intention to come again anyway. l was there once in 09. saw it and that’s it. l have other plans

          • Robert Ferrin

            Damn you mean you like living on shit filled streets left there by the homeless but then again by your stupid posts I can see you would fit right in on those shit filled streets>>>>

          • Jake321

            No shit filled streets where I live, sport. Don’t know about you. But the only place a dreg like you could live out here in usually Sunny California would be with the other dregs who are unsanitary. But you would fit right in.

          • JIMI JAMES

            Your california is riddled with typhus + leppar disease,see too many kweers not enough justice over there run by your pathedic liberal clowns (ignorusupyeanus)
            California was nice 30 odd years ago,not anymore oh no siree,fk no,get out!

          • JIMI JAMES

            Who with your leppar neighbours,no thanks kweer you are finished (period)
            you will be one of them losers necking yourself once satans done with you too!

        • Lone Ranger

          Tent cities in the U.S. are worse than North Korea…
          Also major U.S. cities like Cleveland, Chicago, Baltimore, L.A., New Orleans, Detroit are falling apart…

          • Jake321

            Yep, 0.01% of folk live in tents, while most North Koreans are on the edge of starvation. Our poor have a much high living standard than most North Koreans. Even before this new gigantic hit to the Russian economy, almost 90% of Russians would qualify for Food Stamps here. They are going into some very deep economic doo doo.

          • Lone Ranger

            Russian dont live in tent cities…
            Americans do…
            Millions are homless in the U.S..
            I would say thats a bit more than 0.01%.
            If NK is starving and that weak why are you so afraid of them?
            Starving people arent much of a threat are day…

          • Jake321

            There are no tent cities in the US. There are people in tents here and there in many US cities. Too many. But we do have Putz Putin’s butt buddy Trump as Prez. There are several hundred thousand homeless, not millions. And two-thirds are in shelters. In a population of 325 million, that’s about 0.01%. Hey, dodo, if you missed it, the NK leadership starves it’s people to support themselves and pay for a grandiose military. But if you want to live that way, be my guest.

          • Lone Ranger
          • Lone Ranger

            It seems the U.S. and NK militaried have a lot in common…
            You still believe that BS about Trump being Putins man? Lol
            Not according to the Mueller report and he tried it real hard…

          • Jake321

            Oh stop your diversion, loser. I’ve read that report. You have not. It clearly said the Russians interfered in our election to help Traitor Trump get elected. And the only reason it did not develop a case to indict the Traitor is that there was a policy against indicting a sitting Prez. It also found that there was evidence of Trump Campaign cooperation with Russia but not provable beyond a reasonable doubt. But implied that there was enough to support impeachment. And Trump was Impeached.

          • Lone Ranger

            You are the loser because it clearly stated there was no collusion, no hack, no bribes…
            Facebook and Google confirmed this by the way.
            Impichment failed because it was a farce…
            Democrats failed, it was their last ditch effort to take out Trump before the election.
            But only thing they achieved is that Trump will win now with a landslide.
            Bernie has a slight chance beating him but he isnt as corrupt as good ol boy Biden, so the DNC wont support him, supporting Biden is a sure way to ensure Trumps win…

          • Jake321

            LOL…you better buy some Windex, sport, since do you ever need to clean your glasses and crystal ball.

          • Lone Ranger

            Sorry, Im immune to gaslighting…

          • Jake321

            As you are to reality.

          • Lone Ranger

            Only to the disney version…

          • Concrete Mike

            Hah fucken liar there are for sure tent cities in the usa.

            There are some in my little rural.canadian town, there are some in usa as well. Have you been to florida lately?

  • Dick Von Dast’Ard

    For Russia to cut, I’d imagine an awful lot of deal concessions are going to have to be made by the Saudi’s Wall St financiers.
    Number one probably being Nord Stream 2 and Syrian relief.

    • Jake321

      LOL…Russia isn’t exactly in the driver’s seat. The issue is how far the Saudis will undercut the Russian economy before Putz Putin cries “UNCLE!”

      • Lone Ranger

        Saudis are a joke.
        But its a good move to kill off Shake oil

        • Jake321

          If you missed it, kid, Putz Putin’s RF lives or dies on that snake oil.

          • Lone Ranger

            Oil and gas gives 9% of the Russian GDP.
            They survived 2008 and 2016 just fine.
            U.S. shale industry will have to pay back $40billion worth of loans meanwhile their profits won’t even cover their operation costs.
            And they won’t get anymore loans either…
            Like I said, they will go belly up.
            Nothing new to be honest I saw this coming since 2016.

  • Lone Ranger

    USD is overinflated.
    Ruble isnt.
    Cheaper Ruble equals more profit…
    They did the same in 2016 and it worked.

    • elpocho

      exactly

    • Jake321

      LOL…and the Russian economy is DOWN almost a third since then. Some “it worked.” But yep, it is about to work the same yet again. And yet, a Putz Putin Ruble on the way to zero is sure cheap. I still have a lot of those Czarist Rubles from an old relative who stupidly thought the same as you back in the day about them…and bought a lot. But damn, even those “worthless” big pretty Czarist notes are worth today some 5 times more than the Putz’s Rubles per Ruble. Go figure. Then maybe take Econ 101 so you might not make such ignorant claims.

      • Lone Ranger

        Russian economy is doing fine, only thing I hear is your cries ;)
        They are virtually debt free, with 5 times the Forex reserves compared to the U.S.
        Economy is growing 2% per year contrary to sanctions, and thats real growth not some virtual derivatives BS.
        U.S. is on lifesupport since 2008 with QEs, FED poured 8trillion in the black hole and its still not enough.
        It was designed that way, its mathematically unpayable.
        Once the U.S. will default on its debt it can restart a production based economy with gold backed USD, but by that time the USD will have already lost its reserve currency status.
        Bye bye Bretton Woods bye bye U.S. Empire;)
        All hail the multipolar World order.

        • Jake321

          And down the oil slide your Russia goes. Bye bye.

          • Lone Ranger

            U.S.*
            Indeed.
            Will you take a lil nap now?
            Est something too…

    • Pavel Pavlovich

      What parallel reality are you living in? The dollar is the most important and impactful currency still bcs Washington dictates your fate.

      • Lone Ranger

        Not for too long now…

        • Pavel Pavlovich

          I can only hope that this constitutional reform, which is a plebiscite, which is (POTENTIALLY) really an upheaval (of the good kind) of the people of the Russian Federation (which in turn represents all of the Soviet Union, which legally still exists, but not de facto) goes ahead and picks up a ton load of potential.

  • BlueHeadLizard

    There is a three way oil market dominance fight between Saudi Arabia (SA), Russia and USA. Let us ignore the smaller producers for simplicity anyway they are largely market followers rather than makers. On Friday Russia did not agree to supply cuts meaning the only 2 parties in this fight acting together; SA + Russia fell apart.

    After this OPEC+ fall out, SA had a tantrum and opened the supply floodgates and offered discounts to all clients in a a market context of one of the largest oil demand falls ever, perhaps since the 1930’s depression as the article says.

    So what did SA achieve?
    1. Piss of USA and Russia.
    2. Offer more oil to to clients who do not want it.

    The second point is of little consequence; the oil consuming clients can buy cheap oil from many producers. But point 1., to anger USA as its shale industry they are so proud of is now bankrupt at these oil prices, and Russia getting less money for its Oil, does not bode well for SA. USA and/or Russia will be scheming to cut SA’s supply and restore the oil price. USA with all its bases in the Gulf, is well positioned to provoke another Gulf region ‘incident’; e.g. lay some mines in the Hormuz Straits and blame it on Iran, finally a revenge strike on Iran oil facilities, ‘control’ ships going through the Hormuz, another ‘dummy’ drone+missile strike on SA oil facilities. This will eliminate SA’s oil supply and restore prices for USA and Russia. SA really chose its enemies well.

    As for the impact on the PetroDollar, that’s a whole other discussion.

    • shylockracy

      The Ziowahhabi US and Saudi terrorists are not enemies. Both were right there supporting the Chechen Jihadis against Russia. US and Saudi will deal with their issues internally, as a mafia family matter.

      Russia just said they can deal with $25 oil for 10 yrs. Maybe $12.5 for 5 yrs if ISIS/al-Qaeda patrons can go bankrupt faster.

      • Jake321

        LOL…sound’s just like the things your thankfully dead Russian Soviet Kremlin said just before it’s fall. And damn, it’s the same Kremlin with an old Soviet operative saying these bull crap things yet again. Too funny.

  • Douglas Houck

    The headline is nonsense. Russia is well positioned and does well when the ruble drops against the dollar as it sells it’s commodities in US dollars and then when they convert them back to rubles gain even more.

    The other nonsensical part of this article is the hope that the CORVID-19 will be quickly contained in NA and Europe. As there is no treatment there is nothing to contain the virus other than quarantining which is killing the world’s economies.

    Whomever wrote this is living in another reality world than the real one.

  • Gregory Purcell

    Most of my meager life savings is in Gazprom stock, and it’s going to be just fine, sure they will have a lower profit margin but they will still be profitable, meanwhile much of their competition is going to go bankrupt.

    • Jake321

      I have a feeling you aren’t a Warren Buffet nor have you taken Econ or Finance 101.

    • Boxman

      Seriously? It seems like a risky long term proposition to invest in ANY oil company.

  • Boxman

    Fear mongering, but it is true that Russia is too much dependent on oil exports. Surely a country with as much educated talent as Russia can diversify its economy?

    • Jake321

      They do by exporting their educated and talented but for some reason that doesn’t help Russia much. Damn, surveys found that some half of Russian millennials want to get out of Dodge and move to another country. About the same number don’t like Putz Putin much and would like an alternative. With the economic collapse that Russia faces, that is likely to increase a wee bit.

  • Rhodium 10

    And meanwhile foreign Industrial producers will move to Russia to avoid Coronavirus in China and Europe….because Virus cannot live in extreme low temperatures of Russia..low Ruble also enable the investment!

    • Jake321

      LOL…nor can many people live or want to live in your extreme low temperatures. But nice delusional thought nonetheless.

    • occupybacon

      Actually the best temperature for coronavirus is between 0 and 4 Celsius

    • Kananda

      :DDDDDDDD

      good joke

  • Habib

    Russia,china and Japan been buying gold like no tomorrow The USA is hostage to Chinese and Japanese debt. Russian Ruble is floating currency therefore it can ride currency fluctuations, Chinese currency is pegged to US dollar China needs mass foreign reserves. Russian ruble drop means Russian wheat, Russian petrol, Russian Weapons!!!!! Become cheaper and more attractive. Gold, the US dollar, Jap yen are safe havens and bankers quickly use the bankrupt US dollar as liquidity. Gold is the real currency can’t be printed or faked. Russia has 3rd largest holding therefore Russian government very wealthy in times of crisis’s. So dont worry about buying iphone or big tv or a BMW. A low currency means more exports more jobs for Russian people more. USA would be fuming cause now all products in US dollars are to expensive so the US economy is entering stag flation (google this term). So if Saudi is bankrupt we all should be partying.

    • Jake321

      LOL…the US has more than 4 times the gold as Russia, sport. And yep, the Ruble is a floating currency which is sinking in this storm. Bye bye.

      • Habib

        So you telling me Australia which has 4 cities in the top 10 to live in the world, with less gold than the USA and a currency that has fallen is bye bye??

      • Habib

        All the gold in the USA can’t pay their debts off. Russian foreign debt is one of the lowest in the world.

        • occupybacon

          You don’t understand the USA debt, most of it is owed to themselves.

  • Habib

    Russia’s debt to GDP ratio is under 20% and the USA bankrupt debt to DGP ratio of about 107%. Brothers Russia is a very well run economy.

    • Jake321

      LOL…sure, that is why the Ruble is falling off a cliff and the US Dollar is getting stronger. That is why the Russian economy is down almost a third over the past several years. That is why living standards on average for typical Russians has been falling for several years.

      • Habib

        Uneducated,read my comments about the importance of a weak currency.

        • Habib

          Russian ruble drop means Russian wheat, Russian petrol, Russian Weapons!!!!! Become cheaper and more attractive.

          • occupybacon

            It also mean the food will be more expensive and the difference between the poor and the wealthy will grow. Russia is one of the countries with the biggest difference between the social classes.

          • JIMI JAMES

            Russian poor nowadays lead overall healthier lives than most mid class wests.
            This is not gorbachev era mr californicator,you are still living in disneyland fool!
            The fact Usa is rotted to the core in debts,the world has to leave usa behind ok!

          • occupybacon

            Russian life expectancy is 8 years below US

          • Kananda

            alltogether far not enough

        • Kananda

          weak currency = good for capitalists, bad for people.

      • JIMI JAMES
      • Lone Ranger

        USD is getting artificially boosted.
        Ruble is adjusting itself.

        • Jake321

          LOL…Let me see. Robert Mugabe said the same. As did some in the Weimar Republic and even your Russian Soviet Empire before their economic collapse. Bye bye, Igor.

          • Lone Ranger

            Now it’s your turn tho…
            Biggest single day loss in the U.S. stock market history…whoopsy.
            I wonder if we can top that tomorrow…;)

    • Kananda

      debt is only one parameter out of plenty. and not the most important. russia is gas station, that is the problem.

  • JIMI JAMES

    Another western flogged ranting on like it’s stocks will save the kingdom of god,well it shant nor ever.
    Russia rules energy,get over it,can’t rape mother nature,underprepared?no you are whatever the flog!

    • occupybacon

      By Russia you mean Deripaska and the other 90 jewish billionaires in Moscow I guess

      • JIMI JAMES

        Orthodoxy!

        • occupybacon

          I thought Moscow wants to be Third Rome

  • Basic Guy

    Yeah
    maybe you shouldnt spend billions of dollars into a useless war for assad

  • thomas malthaus

    Because most Southfront articles are published without a writer’s attribution, I’ll assume US propaganda at work.

    • Jake321

      Who would believe the claims of anyone like you who proudly uses the name of a gadfly who has been proven by reality to be wrong time and again?

      • thomas malthaus

        I’m neither Jew nor a Zionist, nor am I or will be, employed by either. The truth matters.

        I think that’s a good start.

        Your move, Zionist.

      • thomas malthaus

        My surname is spelled differently, Ace.

  • Pavel Pavlovich

    I shall be saying this anew:

    Russian economy is based upon exporting raw recources like “fossil
    fuel” (I do not believe in its being of fossil origin) and metals. In
    exchange roubles are generated. Furthermore, the Central Bank of Russia
    is obviously a servant of the IMF.

    What did you
    expect? This is why there is a constitutional reform in the making – 2
    million people demanded it with their signatures. Could be 2.5 million
    now. Things are coming to a head now. If the Russian peopl have wisened
    up, they will vote “yes” and in great numbers (50% minimum, 80% or more
    would be optimal). Although the issues are not as of yet final, i.e.
    what will be voted upon.

    These are the deciding months –
    will the monopolar world reign for another period of years, or will a
    multipolar world finally arise? Once again the Russians will have to
    decide not only their fate but that of 95% of humanity.

    • Lone Ranger

      Time to lay down the brake fluid…

  • Tudor Miron

    Who’s writing this kind of articles? C’mon you can’t be that uninformed. If that was mere ignorance than I would be OK with it – some people know little. But this looks more like an attempt of deliberate disinformation.
    What is really happening in short: With old ruzionic government (Putin had no possibility to remove them unitl recently – so much for fairytales about his unlimited power in Russia) Russia was lured into signing that deal with Opec some time ago. Russia and SA reduced production and price was high enough to make US shale oil production sustainable. And while Russia and SA constrained their production guess who increased their production? US. They were able to carve out of Russian oil market share substantially.
    Now the internal situation changed. While there are still some traitors in our government but balance of power shifted. Russia said to OPEC to go f$ck themselves and we’re totally ready for reduction of prices. Reserves will allow to easily finance budget for 5-6 years with 25-30$ per barrel. We can withstand it. Can SA withstand it? I don’t know. What I know for sure is that US shale oil will die (good for their soil in the long run btw) and we will return our oil market share.
    Increase of dollar price 12% is not something to panic about – in 2014 it surged 100% and nothing major happened. Yes, imports will rise in price but this is not game changing in any way.
    In the long run we’ll get back our pil market share. Koronavirus soap opera will cease to exist fairly soon (it is not easy to keep something insignificant on such a high level of public attention for long time. People soon will start realising that death tall from this “deadly” virus is actually lower than well known illnesses). Oil price will get back to normal. Will US shale oil production still exist by than? We’ll see. Will SA be able to keep their war games in Yemen? We’ll see.
    Russia will still be here – that’s for sure. Surely ruzionic media (80% of Russian media) will be all over it, screaming about disastrous, catastrophic economical crisis but that would not help their desire to stage a coup and remplace Putin with some US puppet.
    Remember – last 17 years show that Russia calculates its moves very well. Actually much better than “civilized” western governments. Putin started major operation of regaining sovereignty with his latest message to federal assembly. It was started at precise moment when country is ready to do it despite comprador elites trying hard to fight against Russia for their foreign masters. Their time is out.

    • Kananda

      ruskie propagandist, tovarishch comissar, your lies are stupid :)

      the article is maximally correct. you, russians never learns ….

  • Per

    this is bullshit, written by a murcan that still believe Russia is a “gas station disguised as a country”.

    • Jake321

      It pretty much still is. Almost half its budget comes from oil and gas (which is largely tied to the oil price thanks to Putz Putin’s stupidity). And over two-thirds of its exports are oil and gas.

      • Lone Ranger

        Oil and gas gives only 9% of their GDP.
        Why not use it?
        U.S. is trying to do the same with shake oil only problem is need need $80 a barrel to get even.
        Russia doesn’t.
        Russia has a flat income tax rate of 12% one if the lowest in the world, which curbs the economy.
        Thanks to cheaply produced oil.

        • Jake321

          No, thanks to profits that will now be near eliminated. Russia is in deep doo doo unless the price goes up. Or they find a way to sell way more oil without further tanking oil prices. Or they drastically increase taxes on a population that has had its disposable income dropping for the past several years. Or Putz Putin totally gives up on his Greater Russia Follies and new arms race.

          • Lone Ranger

            There is no arms race.
            Russia already won it ;)
            Russia will do fine with low taxes and massive reserves.
            Shale oil needs $60 to cover operation costs, and $80 a barrel to be somewhat profitable.
            Since 2016 50% of the shale industry has been eliminated, now comes the other half.
            Russia has no such problems ;)

      • Per

        but they are not import reliant and produce ALL their stuff @ home, unlike certain terror regimes in the nato sphere😉
        + no debt and A HUUUUGE reserve in gold and other valuable metals and diamonds, they actually can prove they have unlike a certain banana republic that invade and terrorize nations that wont submit to the petro$.
        http://smoothiex12.blogspot.com/2020/03/in-continuation-of-crash.html

  • Kananda

    the 4th oil price article within 24h. I see, this is veeeeeeeeeeeeeery painful situation for kremlin.

    Huh, the big chessmasters checkmated theselves. :)) you had to decrease the oil production.

    • Jake321

      Damn, I have to agree with you.

  • Rhodium 10

    it not a problem for Russia..thats why they dont cut the oil production!…low Ruble means foreign investment and the rise of local producers…..it means GDP Growth!….for other side USA/EU will face problems to produce in its own countries due the devaluation of the word currencies that will make unfeasible export prices!

    • Jake321

      LOL…it sure would help if you took Econ 101.

  • Pampi Ta

    Whar are you on ?
    It’s Russia who started this oil war in order to crush US shale.

    • Jake321

      And all it will do is crush the Rusdian economy. Smart move.

      • Lone Ranger

        U.S. economy is already crashed…
        You trolls keep telling the same since 2014 and yet Russia gained while the U.S. debt doubled and now the stock bubble is bursting…

        • Jake321

          The Russian economy dropped near a third since then while the US economy went up. Try to get the basics correct.

          • Lone Ranger

            U.S. economy just lost $1trillion yesterday.
            Russia is doing fine.
            Sorry to dissapoint you..
            Also with low debt and massive reserves Russia is much less exposed than the U.S.
            Shale oil is also going belly up…

          • Jake321

            LOL…you don’t know the difference between stock market unrealized gains and the economy. There was no loss to the US economy because of the market drop. In fact, the drop in oil price will help our economy because of way cheaper gasoline, lower interest rates and lower inflation. You could use classes in Econ and Finance 101.

          • Lone Ranger

            Production is almost dead in the U.S.
            Millions of people losing their Jobs will negate any gains from cheap fuel.
            These unrealized gains and the FED pouring money into the black hole is what keeping the economy afloat.
            Major companies are buying up their own stock via cheap loans, inflating the stockprice at the same time doubling down creating derivative bubbles.
            Its socialism for the Elite…
            And it will come to an end since you cannot inflate a bubble forever…
            Only problem is the debt bubble today is about 30times bigger than it was in 2008.
            No ammount of QEs will be enough this time.
            The fact you have to come here trolling proves my point…

          • Jake321

            LOL…I’ve been coming here and to similar sites for way longer then the current crisis. We may be heading into a recession. Russia is heading into a depression if this oil war continues and the Coronavirus continues. The silver lining is that this hopefully will bring and end to both Trump and Putin.

          • Lone Ranger

            Wishful thinking…
            But it has a good chance putting an end to the U.S. Empire ;)

          • Lone Ranger

            The silver lining is that there will be a multipolar world.
            And the U.S. will have a chance to start over again, same as Russia did after the fall of the Soviet empire.

          • Lone Ranger

            That record drop in 30mins is already a depression.
            Combined with shale oil going belly up U.S. has only two options left.
            Let go of the petro dollar and the unipolar world order and make peace…
            Or start WWIII.

          • Jake321

            Enough of your silly ignorance. Bye bye.

          • Lone Ranger

            Truth hurts, try to handle it.
            Have a nice day.

          • Lone Ranger

            You are the type of people that said everything is fine on the sinking Titanic, or on the crashing Hindenburg.
            I do t take experts too serious since 2008.
            My predictions were pretty much spot on in the last 12 years.;)

          • Jake321

            Who knows? You hide your past predictions. You can see mine for the past decade. Some correct and some not. Those having to do with numbers and finance are generally correct. Political wishful thinking not so good. For example, my numbers showed trump could easily win. But my political prediction was that he would win and when he won would be removed within under two years. My numbers show Russia is in for harder economic times than the US.

          • Lone Ranger

            Trump wasnt removed tho..
            I predict he will win again by a landslide.
            Given nothing fishy happens…
            Russia has low debt and 4times the reserves compared to the U.S.
            U.S. shake oil is also vulnerable…
            U.S. will be hit hardest followed by the EU and Japan.
            Russia will tackle it same as in 2008 or 2016.
            No worries ;)

          • Jake321

            That was my point. My political calls are not always correct. But those I make based on the numbers generally are. The numbers say that an oil price war will hit Russia way way harder than the US even if it hurts the shale producers a lot. What Russia and the Saudis hope is they can weather the storm while killing the shale producers. That is a very big gamble that I’m not yet willing to bet on. But the numbers say at least Russia will likely lose that gamble unless the Russian people want to live like the North Koreans. Really not sure about the Saudis. But don’t much like them anyway. Oh, Islamist Iran is really really in deep doo doo by the numbers…oil price war, Coronavirus, sanctions and cost to try to counter a possible attack to end their nuke program. Not to mention the attack itself if it happens.

          • Lone Ranger

            Russia has $560billion in reserves.
            They will be fine for at least 8-10years even at super low oil prices.
            Also their dependency is decreasing by the year.
            10 years ago it gave 14% if the Russian GDP, no only 9%.
            Their aim is 6%.
            Lets not forget they keep a flat income tax rate of 12%.
            They can produce cheap.
            Shale oil cant.
            50% of the shake companies went belly up since 2016.
            This year alone they have to repay $40billion worth of loans, at the same time they cant cover operation costs.
            Getting new loans will be hard if not impossible.
            Russia has the best cards.
            Saudis are spoiled brats aside from that they have to bribe their own population to avoid a jihadi insurgency…
            They are a sad joke.

          • Lone Ranger

            Iran will be hit hard.
            But no major attack on them is possible because of Syria ;)
            Thats one if the major reasons U.S. and Israel wants to take them out.
            But they failed…

          • Jake321

            If Israel wanted Assad & Company gone, they would be long dead. And there is nothing about Syria that will hinder an Israeli or US attack on Iran if it comes to that. Try to get the basics correct.

          • Lone Ranger

            Wrong.
            Taking out Assad directly would put the U.S. and Israel with direct confrontation with Russia and Iran.
            Thats why they use proxy terrorists.
            Israel and the U.S. would only attack Iran to destroy it, take out their leadership the whole nine yards.
            But to do that you need troops on the ground.
            And you cant do that without having Syria.
            Its nothing but a further expansion of the Greater Israel Project.
            Put in hold now indefinately…

          • Jake321

            LOL…if you missed it, Russia and Islamist Iran were near nowhere to be seen in Syria for years. Even today, Israel takeout Islamist Iranian and Assad troops with impunity. Hardly a word from Russia and zero action. Oh, when your goal is only to destroy Islamist Iran’s Nuke program and incapacitate it militarily and economically, you don’t need lots of troops on the ground to eliminate its total leadership. Collapse and chaos is just fine. They will be bankrupt and way to busy killing each other internally to be much of a problem elsewhere.

          • Lone Ranger

            U.S. economy didn’t go up by the way, only the debt bubble got bigger.
            There is no production or gold behind it, only numbers on a screen, and now the bubble is bursting.
            When you have a trade deficit if $640billion and export less than Germany eventho you have 4 times the population you know you are in deep s…

          • Jake321

            As usual you show you ignorance. Over the past 5 years, the real GDP of the US went from about $18 trillion to about $22 trillion. That’s over a 20% INCREASE while Russia’s dropped. Try to get the basics correct.

          • Lone Ranger

            Only the virtual debt bubble got bigger and the profit gains from that.
            There is nothing behind it only faith..
            No production, no gold, no exports to back it up…
            Its virtual profit and now the payback is coming since there is no free lunch ;)
            At least not forever…
            Russian GDP is growing contrary to sanctions, and thats real production, real gold, hard assets, not fake BS.
            Russia also decreased its debt to only 12%.

          • Jake321

            Real GDP measures actual production of goods and services. Not all that other crap. The US has more than 4 times the gold of Russia. You are as usual, full of crap. You just keep showing your ignorance. And this oil price war will hit Russia’s budget, export revenues and economy hard. It will help the US economy. It is the Coronavirus that will hurt the US for awhile. But since it may help get Trump out, might be worth it. Hope the Russians are lucky enough to have their problems get rid of Putin.

          • Lone Ranger

            You really believe facebook is worth a $100billion with no real production behind it?
            Lol, thats the same ammount if money biggest car companies are worth in total like VW or Toyota.
            Thats why its a virtual GDP.
            Companies are buying up their own stocks via cheap loans from the FED and selling them back and forth inflating the price creating an illusion of massive worth and profit.
            But there is nothing behind ut. Nothing physical to back it up.
            Its a bubble.
            Only problem is this bubble is 30times bigger than it was in 2008.
            Derivative debt bubble is around $750trillion and thats a conservative estimate…
            Total worth of the U.S. with all assets is around a $130billion.
            Its unpayable…
            It doesnt matter when it will burst, eventually it will, and that will be the final one.
            Most the U.S. gold reserves havent been audited since the 70s.
            Most of it was transferred to China, as a way to pay the debt and pay for the Chinese goods.
            Thats why Germany and the UK found tungsten rods in their gold bars when they got back their gold from the U.S.
            Everybody is getting its gold back.
            Russia and China are hoarding it.
            Rumor say China already has 30,000tons.
            They know whats coming.
            IMF is also gearing up for a post USD era, they will probably try to merge the yuan with the Euro, possible Ruble, all gold backed.

          • Jake321

            Damn, you’re not only ignorant but a tinfoil hat looney toon. I thought you were only ignorant. Anyway, you yet again show your total ignorance since the market value of a company like FaceBook is NOT counted in real GDP. But it is not my job to help educate you. You just keep embarrassing yourself with these ignorant and conspiratorial fantasies.

          • Lone Ranger

            Their profits are counted tho..
            The higher you inflate the stockprice the more profit you can claim…
            Like I said its socialism for the elite…
            Its no conspiracy.
            Its an open secret.
            FED does it basically out in the open hand in hand with wall street.

          • Jake321

            Hey dodo, you said they didn’t have any profits. And an increased stock price does NOT get counted in real GDP. And an increased stock price can’t be used to claim increased profits. Damn, you are ignorant but keep doubling down on that ignorance. Too funny.

          • Lone Ranger

            I never said they didnt have profit.
            I said its virtual profit backed by nothing but faith.
            No real production behind it…
            Thats why the bubble is bursting.
            You cant inflate a debt bubble till eternety, eventually it will pop.

          • Lone Ranger

            If you sell the stocks back and forth and collect the inflate price you have profit, no real value behind it but ad long as the USD wont collapse its a profit.
            And you can inflate the price while pouring more stocks on the markets because cheap loans provided by the FED ;)
            You know Im right, you trying to discredit it its futile…
            Nothing funny about it since that will be the final blow to the U.S. economy.
            If stockmarkets and stock wouldnt generate massive profits there wouldnt be stockmarkets at all ;)
            Cine you can do better than that…

  • Rhodium 10

    USA producers will stay away as low prices and high dollar will make unfeasible to export Gas/Petrol to EU.. Operating expenses are higher than the value of the product!

    • Squeeth

      Good news for Nordstream.

  • Gary Sellars

    Who writes this festering bullshit, and why does SF repeat it?

    I can only assume its all part of the education process, where the red-pilled thinking community is regularly exposed to the virus of Western establishment groupthink and its propaganda so that they can maintain their immunity to the corruption.

  • Lazy Gamer

    Doesnt Russia have lock in prices with its contracts?

    • Jake321

      Well, brilliant Putz Putin did lock in a price for massive natural gas sales to China tried to the price of oil. So the drop in oil prices will have a double hit on the faltering Russian economy.

    • cechas vodobenikov

      precisely…Russian enterprises produce high quality oil at less than 20 USD per barrel….US shale trash costs far more to produce

      • Jake321

        Yes, shale cost more then conventional oil to produce. But the US conventional oil costs only a bit more than it costs in Russia. However, there is the fiscal cost of oil which adds in the amount of revenue the government requires for its budget. Russia’s fiscal cost for oil is $40 to $50 per barrel while the US is under $25 per barrel for conventional oil and some $60 for shale oil. So while this price war will hurt the shale industry, it will have near no effect on the US government budget or its economy. However, it will have a devastating effect on the Russian government budget and economy. Any negative effect on the US economy will be way more than offset by a significant savings in gasoline cost. That is not the case in Russia. So however you cut it, this price war puts Russia in deep doo doo.

  • Daily Beatings

    Tom Luongo at Gold Goats ‘N Guns is spot on with his analysis:

    https://tomluongo.me/2020/03/06/russia-just-told-the-world-no/

    • Jake321

      LOL…written just before another 25% drop in the price of oil. If this was Russia’s intent, they sure are a self-destructive lot. Kind of like they just love binging themselves on their Vodka rations into an early grave.

      • Daily Beatings

        You have no idea how fungible commodities work. You’re a fu*king idiot.

        • Jake321

          Sure. Tell me again how a gigantic drop in oil and gas revenues will help Russia. A country that relies on oil and gas revenues for almost half its budget and over two-thirds of its exports. I’m sure you have great unicorn stories and will swear chocolate milk comes from brown cows.

        • cechas vodobenikov

          this is obvious—jacki is an insecure girl—possibly an illiterate CIA troll; the Russian energy sector accounts for only 12% of the entire economy and today Russia exports more wheat than any other nation and produces more high tech than any nation except china….US infrastructure is so pathetic that the US association of engineers grades it at D+

      • Daily Beatings

        לאכול חרא ולמות

        • Jake321

          You know Hebrew? I don’t.

      • Kananda

        russians calculated, that the price will not drop under 40 usd/barrel. their budget is calculated at this oil price level. so, the saudis after russian nyet pushed on machine sewer.

    • cechas vodobenikov

      Luongo comprehends reality—-immature girls such as Jacki do not.

      • Jake321

        But still way below the over $40 a barrel Russia needs for it budget. That budget assumes almost half from oil and gas. And it’s export revenues are over two-thirds from oil and gas so they will also fall drastically. Both will be a major hit to the Russian economy. The big fall in gasoline prices will be helping the US economy. But yes, it will hurt the shale guys. But no big deal in terms of the Federal budget, exports or the economy.

  • RichardD

    There have been less than 4,000 Coronavirus deaths in China total to date.

    “An analysis led by Chinese scientists published in The Lancet Public Health in September 2019 found that there were 84,200 to 92,000 flu-related deaths in China each year, accounting for 8.2 percent of all deaths from respiratory diseases.”

    – Data methods show gap between US, Chinese flu-related deaths –

    • cechas vodobenikov

      and the USA w a population 1/4 the size of China enjoys 90,000 flu deaths per year; since covid 19 appeared 18,000 amerikans have died of the flu…in china the incidence of covid is rapidly declining

      • Jake321

        Isn’t it great they took drastic action to slow down the deaths? Why don’t you get back to your cure all, Vodka binging, he-man, so you can solve all your troubles and drown all your sorrows and go to an early grave like most Russian he-men? Hey, that’s what your ignorant Iranian friends have been doing. Unfortunately, alcohol is not a Muslim thing and they didn’t know the difference between Vodka and wood alcohol. So they’ve been going to their graves even sooner than you and yours.

        • cechas vodobenikov

          the feminized insecure stupefied murikan again humiliates herself—whatever u wrote, which I no longer read–it is self flagellation
          “amerikans r troubled by a basic insecurity…only in the USA is the father vestigial: the amerikan mind and conscience is feminine”. Geoffrey Gorer
          quite obvious for anyone that has lived in your ugly nation
          “the people of amerika tolerate a level of ugliness in their daily lives nearly without precedent in the history of western civilization”. Yuri Bezmenov
          jackie=the self uglified murikan

    • Jake321

      So? China shouldn’t have taken drastic action to keep the new virus from becoming as bad as the flue? You truly are a dodo, a dreg of a loser who is sure he knows better than anyone. Pathetic.

      • RichardD

        How many do they abort every day and how many will die from the damage to their economy?