..but mostly due to crashing oil prices, which have been driven lower almost exclusively by Saudi Arabia as part of its most recent secret bargain with the US, a bargain which as we read today is likely to tear OPEC apart. Needless to say, Saudi Arabia is hardly getting a Christmas card from Putin this year, although one wonders, just what channels will the former KGB spy use to retaliate against the Saudi princes. Because retaliate he will. To be sure, some such as Bloomberg, are skeptical that the unprecedented pivot by Russia toward China as it shuns the west, will merely harm the Kremlin. Others, however, wonder: who will be left standing: Europe, with its chronic deficit of energy and reliance on Russia, a country overflowing with natural resources, or Russia, whose economy is currently underoing a dramatic and painful shift, as it scrambles to dissolve all linkages to the Petrodollar and face the Gas-O-Yuan? Perhaps it is worth refreshing this subject in a few months, after Europes economic situation is made far more clear after what is sure to be a long, cold winter. zerohedge/news/2014-10-13/china-russia-sign-cny150-billion-local-currency-swap-plunging-oil-prices-sting-putin
Posted on: Mon, 17 Nov 2014 02:39:42 +0000