It's funny because this applies to every country's idiot leaders
Idiots. They should listen to Paul Krugman. He says inflation is good because it gives greater time preference on current spending instead of future spending. Basically that means inflation leads to doomsday preppers who buy year supply of beans and toilet paper and.... oh
It doesn't just collapse Russia. It also collapses USA and Canada. Processing Canadian tar sand is unbelievably expensive. Oil needs to be something like $80 for it to work. Right now we're down to $55 per barrel. Shale in North Dakota is even worse. Lots of those shale drillers couldn't turn a profit at $100 per barrel. What happens at $55? Layoffs, high yield bond market crash, doooooooom.
) if they were to get caught.
Oil plunged by 90% in 1930. I heard it did wonders for the economy back then.
You don't understand. If you try trashing a US politician, you might get an IRS audit. If you trash a Russian politician, your body will never be found.Not to mention the political fallout (
Yep. It's a real economic boon.
Yep. The only deep pockets buyers for nukes are radical Islamics, and a significant part of radical Islam is at war with Russia. A nuke sold to ISIS might well end up passing back to Moscow through Chechnya.Keep in mind that Russia has a very big reason not to sell off its weapons right now. If they sell off those weapons, there is a good chance one could get used against them. Russia has been dealing with terrorism for a while now, and there are many terrorist that would love to nuke Russia. Not to mention the political fallout (
On the first, oil prices plunged in '30 based on the economic collapse. Here oil prices are plunging mostly due to improved supply via new technology, not reduced demand.
It's funny because this applies to every country's idiot leaders
We need to get back to the good old days when coloreds ...... and real rape ..... god damn Mexicans ........ and those Jewish .......
Idiots. They should listen to Paul Krugman. He says inflation is good because it gives greater time preference on current spending instead of future spending. Basically that means inflation leads to doomsday preppers who buy year supply of beans and toilet paper and.... oh
It doesn't just collapse Russia. It also collapses USA and Canada. Processing Canadian tar sand is unbelievably expensive. Oil needs to be something like $80 for it to work. Right now we're down to $55 per barrel. Shale in North Dakota is even worse. Lots of those shale drillers couldn't turn a profit at $100 per barrel. What happens at $55? Layoffs, high yield bond market crash, doooooooom.
You can track the US effects of the oil collapse by looking at our junk bond market. A lot of junk bonds are issued to shale oil companies, so the bonds drop in value when there is a perceived risk, either real or imagined, of the bonds not being paid back.
https://www.google.com/finance?q=NYSEARCA:JNK&ei=n1qQVMH2F4fysQfR2IDYBw
What's interesting is that this is theoretically what gives value to currencies. Those pieces of paper in your wallet are actually debt instruments. Rather than being issued by an oil company, they are issued by a bank, so it's important for people to believe the bank issuing those notes is good for the money. This is why Argentina's money is worthless. Nobody has any faith in Argentina's central bank, so the notes issued by that bank are worthless. As crashing oil prices plunge Russia into a depression, people lose faith in the Russian central bank, and this contributes to the currency crisis. The only way to stop the inflation is to raise interest rates. We did the same thing in 1980. It caused one hell of a recession, but it had to be done.
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