Monday, December 15, 2014

Falling Rubles and Cheap Oil

It is far more likely that Russia has engineered the decline of its ruble in order position itself as the low-cost producer and thereby destabilize the global economy and especially force the high-cost producers (in America) out of business.

It is absurd to think that a country that is among the richest in natural resources would be brought to the point of "economic freefall" by whatever insignificant measures the Obama administration has taken in the name of "economic sanctions" (albeit not without a small measure of fanfare).

Russia is among the most dominant players in oil markets and at times the single most dominant player.  It can exert tremendous influence over the market.

It is also not unusual for countries to devalue their currencies for their own gain, and should it surprise anyone that Russia would do so aggressively, vindictively, almost as an act of war, without regard for the welfare of its common citizens?

We thought readers might appreciate a perspective that didn't originate in a disinformation brainstorming session.


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