russian ruble collapsed

[alcoholbob]

All those poor Russians, subjected to the whims of those invisible white males on Wall Street and their silly asian wives. Why do we actively hate the one nation that we are closer to in terms of race, power and values, while we cosy up to all these despotic regimes who we have nothing in common with culturally and who are intrinsically racist towards us behind our backs.

Whites are only 62% of the population in the US if you remove Hispanics, in Russia its more like 95%. If you want to find a country closer to the US in ethnic ratios you could try Brazil :-D

 

[brycejones]

This is because the Illuminati can't stand a free Russia and Putin's opposition to their trans-humanism agenda. Same reasons that Syria and North Korea are being punished. Remember Russia is a free country.

 

[stlc8tr]

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.

Sure, some folks in the oil industry gets hurt by the drop but why wouldn't the net effect be positive? Lower gas and heating oil prices means increased spending in other sectors of the economy.

 

[Spungo]

Sure, some folks in the oil industry gets hurt by the drop but why wouldn't the net effect be positive? Lower gas and heating oil prices means increased spending in other sectors of the economy.

But oil was the only sector of the economy that had any capital investment. It was the only sector creating good paying jobs. Money drained out of the oil industry ends up where? Retail spending? We lose the good $30/hr plus overtime oil jobs in exchange for a bunch of $10/h part time retail jobs. We don't need more retail workers. We already have too many retail workers.

 

[StinkyPinky]

Russia is a tired old 3rd world country full of its self-importance, when in reality they're not hugely influential globally. I'd say the collapse of the likes of Spain would have a larger impact on the world (simply because Spain is a reasonably large economy within the EU, which in itself is over 5x larger than Russia)

 

[Jaskalas]

Russia’s currency lost as much as 19 percent today

Ouch!

 

[Spungo]

Russia’s currency lost as much as 19 percent today

Ouch!

Thank god they didn't buy any shiny rocks to hedge against this.

Russia is a tired old 3rd world country

2nd world. 3rd world are the countries that are neither aligned with the western or eastern blocs.

 

[kage69]

Something else is going on. I think the Saudi's and OPEC have been purposely selling oil for less in an attempt to collapse the Russian Oil Industry, and anyone else who is their competition, including the USA and the rest of the Western World. It is estimated that when the price of oil drops below $107 barrel, Russia may not be able to make money.

So the real question is, "Does Russia and the western world in Europe and the USA fix the price of oil higher just so they can make more money? i.e. Manipulate the Oil Market."

I think Oil Price Fixing is going on.

I also think this is a form of War. It is just as deadly as dropping bombs.

...provided you stay in that "the pen is mightier than the sword" mindset. Personally, I've yet to come across a single trade law or policy that gives me the willies the way thermobaric ordinance does.

Seriously though, I hear what you're saying and I largely agree. Of course the West is doing everything it can to make life miserable for Russia, and it couldn't happen to a nicer midget. Cause and effect ol Vlad. Maybe this latest kick to Russia's financial nads will get more of it's people to remember all that oppression, poverty and defeat that accompanied the Soviet prestige they so miss. Not that it would make much difference to Putin, I guess I'd just like to see more Russians wake up. These surges in nationalism never end well.

 

[dmcowen674]

russian ruble collapsed

This is depression era stuff

No need to worry, once oil skyrockets again as it always does the Ruskies will come roaring back too.

 

[DrDoug]

But oil was the only sector of the economy that had any capital investment. It was the only sector creating good paying jobs. Money drained out of the oil industry ends up where? Retail spending? We lose the good $30/hr plus overtime oil jobs in exchange for a bunch of $10/h part time retail jobs. We don't need more retail workers. We already have too many retail workers.

Everyone who is saving money on fuel costs and spending it elsewhere may be benefiting from it but it's at the cost of better paying full time jobs. The same can be said for moving manufacturing to China (or elsewhere); we are doing it to reduce costs to the consumer (not really, but that's another argument). Of course it cost us some good paying jobs but everyone gets cheap shit now so who cares? Well, everyone's getting cheap oil now so who cares?

This is America, we worship cheap shit and huge profits. Who gives a shit about anything else? Good paying jobs pale against the need for cheap shit and huge profits!

 

[maddogchen]

Meanwhile Putin is voted Russia's man of the year for the 15th straight year...

 

[feralkid]

Meanwhile Putin is voted Russia's man of the year for the 15th straight year...

Well how could they not?


Seriously...

 

[Genx87]

I just want to point out he took that picture on a 98 degree day and didnt sweat one drop. A true iron warrior.

 

[ivwshane]

Man if only obama could be more like Putin!



Check mate

 

[werepossum]

Thank god they didn't buy any shiny rocks to hedge against this.

2nd world. 3rd world are the countries that are neither aligned with the western or eastern blocs.

I've also read "third world" as meaning neither Old World (Europe) nor New World.

Well how could they not?


Seriously...

I don't always drink tea while murdering dissidents, but when I do, I always drink Rabid Bear brand . . .

Man if only obama could be more like Putin!



Check mate

He's getting more like Putin all the time, tapping reporters' phones without warrants if they say things he doesn't like and deciding that immigration policy can be 180 degrees from the actual law.

 

[schmuckley]

RUSSIA INTEREST RATE HIKE SHOCK: 17%!

Well... it would appear that they are taking drastic measures to stave off a collapse in progress.

I've seen 17% interest before.
Actually..savings accounts were worth something then.

 

[shira]

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.

I wouldn't take the "threshold" figures you're referencing too seriously. I have a feeling that when you read that shale oil costs more than $60 a barrel to produce, that's the fully amortized cost, which includes the cost of exploration from scratch. I'll bet the marginal cost of extracting oil in already-explored shale areas is MUCH lower, as any new wells are highly likely to be productive compared with new wells is relatively unexplored shale areas.

All of these figures flying around is just oil analysts talking, and anyone who has spent any time reading the pronouncements of financial analysts knows that almost everything they say is BS.

 

[Subyman]

Everyone who is saving money on fuel costs and spending it elsewhere may be benefiting from it but it's at the cost of better paying full time jobs. The same can be said for moving manufacturing to China (or elsewhere); we are doing it to reduce costs to the consumer (not really, but that's another argument). Of course it cost us some good paying jobs but everyone gets cheap shit now so who cares? Well, everyone's getting cheap oil now so who cares?

This is America, we worship cheap shit and huge profits. Who gives a shit about anything else? Good paying jobs pale against the need for cheap shit and huge profits!

Better paying oil pumping jobs? What jobs are being affected by the gas prices? I'd think the extra $100 or so people have at the end of the month to go see a movie, buy more groceries, or whatever helps the economy more than a mostly automated oil pumping industry.

 

[DrDoug]

Better paying oil pumping jobs? What jobs are being affected by the gas prices? I'd think the extra $100 or so people have at the end of the month to go see a movie, buy more groceries, or whatever helps the economy more than a mostly automated oil pumping industry.

Actually I agree with you, I too would rather have more money to spend elsewhere than to throw it at the oil barons. I just think that it's funny that some people say that we are giving up good paying jobs in the oil industry. Good jobs, if you think about it, that were essentially subsidized with our dollars.

In the end though, my 'point' is; we want cheap shit and in most cases, jobs be damned. But at least we will be able to buy more cheap shit!

 

[ivwshane]

Actually I agree with you, I too would rather have more money to spend elsewhere than to throw it at the oil barons. I just think that it's funny that some people say that we are giving up good paying jobs in the oil industry. Good jobs, if you think about it, that were essentially subsidized with our dollars.

In the end though, my 'point' is; we want cheap shit and in most cases, jobs be damned. But at least we will be able to buy more cheap shit!

You didn't answer his question.

What jobs are being affected by the gas prices?

 

[lozina]

Any bets on how much longer Putin lasts?

Coup
Imprisonment
Mystery Illness

Edit: Stunning revelation from Putin in a English announcement to the West!

http://www.liveleak.com/view?i=965_1418500022

 

[theeedude]

 

[DrDoug]

You didn't answer his question.

And if you look at my first post here you can see that I was playing off of what Spungo said. My point was along the line that it's funny that people are happy getting cheap shit at the cost of good paying jobs and someone is talking about how we should be paying more for something to ensure good paying jobs.

If he's looking for an answer to what jobs are being affected, ask Spungo. My guess would be high paying oilfield jobs...lol!

 

[Spungo]

I wouldn't take the "threshold" figures you're referencing too seriously. I have a feeling that when you read that shale oil costs more than $60 a barrel to produce, that's the fully amortized cost, which includes the cost of exploration from scratch. I'll bet the marginal cost of extracting oil in already-explored shale areas is MUCH lower, as any new wells are highly likely to be productive compared with new wells is relatively unexplored shale areas.

Checking for oil is one of the cheapest parts of the process. It's the actual drilling that costs money. These shale wells decline about 70% in the first year, so they're very high cost every year even when you know where they are. One needs to constantly drill.
Canada's tar sand has a similar problem. You can see the tar sand with the naked eye, but you still need to process it.

I plan to invest quite a bit in shale and tar sand once I think the market has hit a bottom. Companies will face hard times and some of them will go bankrupt, but not all of them.
I keep posting the link to JNK because I want people to keep an eye on that. Watch high yield credit. That will tell you where the bottom is.

 

[werepossum]

I wouldn't take the "threshold" figures you're referencing too seriously. I have a feeling that when you read that shale oil costs more than $60 a barrel to produce, that's the fully amortized cost, which includes the cost of exploration from scratch. I'll bet the marginal cost of extracting oil in already-explored shale areas is MUCH lower, as any new wells are highly likely to be productive compared with new wells is relatively unexplored shale areas.

All of these figures flying around is just oil analysts talking, and anyone who has spent any time reading the pronouncements of financial analysts knows that almost everything they say is BS.

Excellent point and undoubtedly correct. At the very least it includes establishing the well and shutting it down at end of life. And if you sell half your oil at $90 and half at $30 you've made your nut at $60 even if you'd prefer selling it all for $90.

There are also costs associated with stopping production on a functioning rig, as well as costs associated with starting back up.