The head of the Russyan national bank said this week that the slide of the rouble was being watched, but is not a cause for concern. Ya, sure. Now, it seems, things are a bit different. The rouble ripped through 80 to the $, then settled back down to 78. The Kremlin was all shudders and shakes, given that the national budget was based on 50 roubles to the $. Tsk, tsk.
Main point for the international community to remember when dealing with Putin, the Kremlin, and Russyans in general: Do Not Under Any Circumstances Take Tea With Them.
After the publication of British Judge Robert Wren's report on the Litvinenko murder with Polonium 210-laced tea, enough said. There was so much polonium left in his corpse after he died 3 weeks after tea with the Kremlin-directed murderers, he had to be buried in a lead-lined casket. Thanks to his widow's persistence and the late efforts of David Cameron, the truth of the murder-for-hire in a foreign nation has finally received the worldwide press exposure necessary to alert international groups to the reality of Mr. Putin's geopolitical ambitions that rest upon his consolidation of power at home.
The price of oil, beyond control of even the largest producer, Saudi Arabia, has caused a major headache for the largest country in the world. Without the foreign exchange funds generated by energy sales abroad, the national economy in Russya will continue to stagnate. Little can be done at home because businesses refuse to go along with the Kremlin's role as partners-in-chief of your business. In other words, if you have a successful business, the kremlin will step in and take at least half, if not all. In other words, serfdom.
Concurrently, Iranian oil is returning to the market. The first tanker load of Iranian oil is scheduled to arrive in Europe this week, and others are being positioned for loading and transport. Look for the price to find $20/barrel this week. A week uptick Friday in stock prices didn't do much to restore anything resembling confidence in markets. The ECB announced a new stimulus. The FED is expected to remain cautious about inflation/deflation. The dollar continues its ride to the top as China lets the yuan find its level.
Tahomans: go skiing this weekend-lots of powder, small crowds. Wheeeeeeeeeeee.
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