The Russyan Orthodox Church celebrates Christmas today across the largest country in the world. How nice that they cling to these traditional holy days despite the lingering memories of atheism, Marxism, Stalinism, and, of course, Putinism. January 7 on the old Julian calendar is recognized as the day of the birth of Jesus. While the Julian calendar was dropped by mainstream Christians, the Eastern Orthodox branch kept it as their daily record keeper.
Unfortunately, today will not be a great day of celebrations across the landscapes of the largest country in the world. The price of a barrel of oil slid to new lows on world markets and futures prices look lower still. The price of gasoline has dropped dramatically because of weak demand. This seems to be contrary to the effect of huge auto sales in the US, which were up 15% in 2015, mostly with larger SUV's, crossovers, and pickup trucks which are not considered economy vehicles. Many economists attribute the price slide because of China's weakening economy and weak growth prospects. Adding this to the conflicts in the Middle East, Ukraine, Libya, and other spots, the outlook is not good.
Will Russya begin to feel like Venezuela? With so much of the economy dependent on oil prices, the coming recession could slip into a full depression. Maybe the kremlinistas will rethink Crimea and Ukraine; maybe not. Maybe eastern Russya will look to the Pacific rim for economic solutions, ie. Japan. Already, the prospects of increased Chinese influence in the east has abated. The Amur River basin, the site of many Chinese workers, appears to have become less attractive to cross-border workers.
What will be the case in the spring when prices hit $20/barrel in the markets? Look into the crystal ball........
No comments:
Post a Comment