captain kirk wrote:murchr wrote:captain kirk wrote:The Russian currency is at an all time low against the USD. Why??? It is not about whether sanctions will be initiated against Russia but what extent. US foreing affairs minister and finance ministers have stated categorically. Let us see who will come out on top.
Its down coz of the un-certainity, foreign investors are scared but that aint enough to shake Putin. Russians dont import oil or natural gas. They rarely need the USD. They own Europe.
The is a risk Russia is exposing itself to here.
Russian economy depends a lot on its oil exports.
EU is the main buyer of oil and Russians need them too or they suffer losses in the short term.
In the long term, EU countries will have to buy from other producers to avoid blackmail.
Its not that simple. If you dont buy oil from Russia then supply will go down and the prices will skyrocket. No one wants such a situation. Oil prices are enough to cause a revolution in any state in the west. Thats why those who play games with it have to go down - read Sadam and Gadaffi.
The banks in Europe are surviving on Russian money, if they pull the plug wait to see countries in the EU go down. Its not that simple as you assume, that's why the wise lady of Germany is calling for caution.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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