"A Paradigm Shift Western Media Hasn't Grasped Yet" - Russian Ruble Linked To Gold & Commodities

What people 'prefer' in authoritarian nations is rarely important

 

The Sauds will never go bankrupt. They just sell more oll at the lowerprice.

They may start doing that soon just for themselves . Lower prices are leading to breakthroughs in oil alternatives which may cause ever lower prices for them. In the past this is the main thing causing the Sauds to increase production

 

That's true, but I don't think the Saudis want to lower the price too much. They do know that they have a finite supply of oil, and they are trying to plan economically for their distant future.

(Once all the easy oil in Saudi Arabia runs out, then no one is going to want to buy from Saudi Arabia anymore when they can buy more expensive harder to obtain oil from plenty of other countries elsewhere. But that will not be until at least 120 years from now)

 

lol, the USA is just fine. The only division is the illusion spread by politicians and the media. You can go anywhere in the US and no one gives a damn whether you are left or right, except for the very vocal minority who spread there divisive bs propaganda. Looking at the arguing on this website might make you think the USA is about to snap, but it is not. We are all aware now of the politicians and elites agenda attempting to divide us, and it won’t work.

 

It is easier to run an authoritarian regime when people are fine with living under authoritarian regimes. Plenty of examples since forever of authoritarian regimes falling over when people get sick of them.

 

The Sauds have a lot of bills to pay, starting with keeping their own people in the manner to which they have become accustomed. They would need a pretty good reason to mess wiht the model. Crushing Russia may yet become that reason, but it isn't now.

 

Of course it can. It just needs different leadership.

 

America is doing fine. It just needs to control its government better. Other than government I would say all is well.

 

Quite, and one way that is done is by keeping your people fat and happy. The opinions of our own beautiful and charming Russophile, Jeanette, notwithstanding I have to wonder if that describes the Russian people today.

 

After these sanctions...we'll see.

 

The main thing that caused El -Saud. Russia. OPEC to increase production since around 2014 was to try to kill the Shale Oil Ponzi Scheme - which was the reason for the oversupply imbalance in the markets.

Saudi and the UAE have remained neutral with respect to Russia - not part of the Sanctions club and a notable hold-out.

El Saud wants as high a price as possible - without going to high to maintain price stability. It is not possible to " just sell more oil at a lower price" increasing production decreases your total revenue past a certain point.

Saudi Arabia no longer sells much oil to the US .. most is going to the new silk road - energy hungry markets in China-India - Asia

 

Actually, it clearly has had a real world effect:

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The Ruble priced in dollars has fully recovered.

 

Their base interest rate is 20%.
They are screened no matter how you look at it.

 

You means it's worth 2 full cents now?

Let me know when it reaches 2.5 cents.....

 

Certainly they are in a difficult position, but, from their view they are in an existential struggle with the West for survival, and in such a mindset they will be able to endure this level of suffering if not a great deal more.

The world is not prepared to replace energy and/or fertilizer from Russia, those are simply the facts. Have you seen what is occuring in French Electricity markets?

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Look for big big moves, all the wrong direction in oil, gasoline, diesel. electricity, coal and even jet fuel. Each on it's own a difficult problem, and all at once, that much more difficult.

Europe might pretend a bit longer to have some way to promptly end reliance on Russian energy supplies, but they don't and part of what has reinforced the Ruble, in addition to capital controls, is that they are getting energy payments in Rubles just as they demanded.

France is trying to ration electricity but their power just spiked to a 13-year high.

Paris power deliveries between "8 a.m. and 9 a.m. Paris time surged to as much as 2,987.89 euros ($3,286) per megawatt-hour, while the average price for the entire day settled at 551.43 euros on the Epex Spot SE’s day-ahead auction, the most since a record set in October 2009. It was also high enough to trigger an increase of the maximum upper price limit on power exchanges across Europe."

https://www.zerohedge.com/commoditi...hits-record-high-french-power-prices-go-limit

Biden's gotten US oil down to $100/barrel, but only by dumping a third of our strategic reserve between now and the election, and US coal just hit $100/ton for the first time since Dubya was president.

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The West, instead of steadily building out reliable energy supplies and distribution has instead been investing in unreliable "Green Energy". As soon as it hits the fan, everyone dives for something real, like coal.

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Now is a time for very sober clear minded sensible decision makers and decisions. Generally the times produce the leaders, because the clowns we have in place at the moment are worse than useless.

 

If you want to know something look it up yourself. It's where it was before the invasion. That was made perfectly clear. Did you notice the pretty colored lines so obvious that a five year old could follow the point that somehow evaded you?

 

Maybe not bankrupt, but odds are they'll be poor.

Curse of Oil..

 

Dead cat bounce.

 

Uhhh...no...the ruble still remains toilet paper....and new sanctions to be applied tomorrow that targets the dollars Mafialand has stored in US banks.....look it up on CNN....Mafialand won't be able to pay any debts in dollars....it will default...sending it further into a deeper recession....that 20% interest will look like chump change....it'll be fun watching Mafialand crash and burn.....ordinary Russkis will be perfecting dumpster diving. I'll break out beer and popcorn.

 

Then short it and get rich.

 

Wow....another zerohedge article....how much is platform Putinka paying you.

 

Nuclear power can solve a lot of these issues. I know it’s not something that can be solved tomorrow, but reliable alternatives exist.

 

Jenny wouldn't live in Russia if you paid her.

Sadly I suspect people living in Russia (and we have a few here) have very similar opinions.

 

Agreed. If Nuclear power is safe enough to power submarines, clearly it's a risk that can be managed.

I think that currently close to half of France's nukes are shut down for scheduled or emergency maintenance. Normally an advantage of Nuclear is that it seldom needs to be shut down compared to other energy systems. I do not know why so many are off line at the same time.

 

And that is funny. She loves to love Putin and his regime, but she would never go live under it.