Relax Durak....I am merely pointing out the obvious. Nothing wrong with what you speak. It is big apple and small apple. Last year( before turmoil) hryvnia was close to 9 to $1usd.....that is close to double from 2006.
Well Durak, when was last time you were in Ukraine?? What have you done personally for the people there??? Go onto a forum and talk???? To me talk is cheap. Please tell me your efforts.
I have been in Ukraine twice this year and have seen and experienced what is going on there. Spent some time with Red Cross on last trip into small towns northwest of Lugansk( villages)to help the civilians, some injured, that are caught in crossfire, it is so, so sad.
So Durak, when will you start, not focus, attempts to prosecute him (Russia)?? By writing your thoughts on a public forum, one that people only bicker and fight??? Is there some important and high ranking officials reading here?? Tell me exactly your strategy to help Ukraine out of this crisis? Does it start with If....
The only one here I read doing some good is Rick!!!
“Russia changes currency
The Russian State Duma came up with the idea how to stop inflation and devaluation of the Russian currency – it should be replaced with another one. According to the deputies, it will solve the economic problems of the Russian Federation.”
“The Russian State Duma decided to stop the fall of the ruble. During this year the ruble has lost more than 40% of its value against the dollar and more than 34% against the euro. In order to stop the fall of the ruble Anatoly Vyborsky, a member of the Duma Committee for Security and Anti-Corruption proposed to introduce an alternative currency.
According to Viborsky, there is no name for it yet. However, the MP is sure that the new "ruble" is able to raise the national currency to a new level. For example, the Russians will no longer need to use the euro and the dollar for calculation.
The Kremlin believes that in addition to the EU sanctions, the fall of the ruble and the decline in oil prices are connected with speculation in the domestic market. Thus, Putin demanded from the Central Bank to take tough measures against currency profiteers.
It is still unknown whether such measures will include the introduction of a new currency. But Anatoly Vyborsky claims that the MPs have already begun to work on a draft of the alternative currency after the presidentýs appeal to the Federal Assembly. Thus Vyborsky said that the Eurasian Economic Union and the Shanghai Cooperation Organization could be involved in the creation of a new currency.”
If the ruble is replaced and not honored in exchange then Russia is doomed as a world power. Currency is only a means of trading labor and goods. Loosing a percentage in inflation is bad for those holding rubles, but invaliding a nations currency completely in attempt to gain political power would be seizure of all assets and national suicide.
Kiev (AFP) - Ukraine welcomed a US bill that would allow Washington to provide lethal military assistance to the embattled country, but Russia expressed outrage at the "openly confrontational" legislation.
The bill -- passed late on Thursday and due to get final approval in Congress on Friday before being sent to US President Barack Obama -- opens the way for up to $350 million (280 million euros') worth of US military hardware to be sent to Ukraine, which has been fighting an eight-month war against Kremlin-backed separatists in its east.
It also threatens fresh sanctions against Russia, whose economy is crumbling under previous rounds of Western sanctions and a collapse in oil prices.
Washington (AFP) - The US Congress unanimously approved fresh economic sanctions against Russia and lethal weapons for Kiev, defying President Barack Obama and hardening American lawmakers' response to a Kremlin-backed insurgency in Ukraine.
The rift between United States and Russia continues as the Pentagon threatens Russia with releasing nuclear missiles in lieu of the Moscow's violation. According to the US, the country is prepared to redeploy nuclear weapons as a means to keep Russia at bay following its breach of two arms control treaties. Meanwhile, the US Congress has been working on new sanctions for Vladimir Putin following decisions over Ukraine tension.
1. Since the end of the Soviet Union, there is not and never has been a competition between the economies of the Russian Federation and Ukraine. Russia's economy has always been much bigger, more resilient, and had consistently greater growth. Therefore, comparing their economic woes as though it were some kind of "contest" or disturbance of some "balance" makes no sense whatsoever.
2. Reporting on Ukraine's economic calamity is of course important, and belongs on this thread. If you want to post about it here, then please do, it will be a valuable addition. I haven't been covering it, because as I explained previously, Ukraine's bankruptcy won't change the war -- Russia's bankruptcy just might.
3. I respect and value your efforts to help. Please post something on this forum, to share what you've learned about possibilities for volunteering to help Ukraine.
Based on Durak's Estimate* (TM), Urals Crude is probably trading right now near USD 60.5 / USD. It is likely to continue to fall in the coming days.
As I keep reminding my faithful readers, these low prices are hard tidings for Russia (Putin's federal budget is oil-fueled, and based on USD 100 / bbl).
I usually get my currency exchange info from xe.com (rates can vary somewhat, depending on who is measuring, because they are based on the sifting of quite a lot of data, and differing time delays). The xe.com ruble rate "freezes" on weekends, presumably due to the closing of some exchange market.
The ruble now stands at 58.18 / USD, having peaked at 58.51 on Friday.
Based on the pattern of recent weeks, the continuing decline in oil prices, and the action of the US congress (I know it's bizarre, but they agreed on something) ... the punishment of the ruble will resume with full vigor on Monday. I think it likely that the ruble will cross 59 / USD before Tuesday, and I wouldn't be surprised to see 60+ before week's end.
* I make these estimates by placing an occult magic stone in my cap, holding said cap in front of my face, and muttering things whose origin nobody else can understand or verify.
A few days ago, I was on Skype with a Russian friend, and noted that the ruble had fallen to 55 / USD (I'm sure that many Russians today wish it were that good!).
Her response: "I love it!" Her income is from trading business, in USD :)
It seems to me that somebody posted a few days ago, asking whether Saudi Arabia is deliberately making economic warfare against Russia. I didn't reply, because I don't know the inner thoughts of the Saudi oil minister, or what secret deals might have taken place.
But as far as I can tell, the journalists who cover petroleum markets are not discussing any such theory.
The present collapse is conventionally explained by four factors:
1. European governance is dominated by the false idea that when the economy tanks, governments should balance their budgets (despite overwhelming evidence that this is wrong), so Europe's "recovery" from 2008 is dangerously stalled and may fall into recession again. At the same time, China's necessarily unstable always-high growth rate has slowed significantly. So, oil demand is "softening", as they say.
2. US oil production, always large, has ramped up dramatically in recent years. Supply has grown much faster than demand.
3. Even taking into account the huge dip when the crisis erupted six years ago, crude has been spending most of its time at or above USD 100 / bbl for about a decade now. Shitty petro-states ruled by tin-pot dictators (Russia, for example) finance their spending by oil, and when the price is high, they get addicted to the high prices.
4. All those oil-producing states with fundamentally weak economies, now that oil is much cheaper, are hurting due to reduced income (remember, they are addicted to expensive oil). Everybody knows, that if EVERYBODY cuts exports, the oil price will shoot up and they'll feel better (but still taking a loss). But if the decision isn't unanimous, the already-hurting countries that cut production will hurt even more, while the guys who keep their spigots open will make a windfall. This is much aggravated by the US and Canada, who AREN'T dependent on oil for their economic growth, and are happy to produce whether prices are high or low.
OPEC is a one-trick pony. It has a single lever: agreement by members to cut production. There's absolutely nothing else OPEC can do. If they can't agree to cut production, then OPEC is dead. Some energy analysts are now writing stories about the death of OPEC.
Durak,,, I asked our fuel supplier whether he thought the low prices were to hurt Russia, or to hurt the US oil boom,,, the frackers, shale oil, Canadian tar sands, and all of the new technologies? He said:,, the US,,, many of the companies using these new technologies are still in debt, and they are hoping to put them out of business.
I also asked him, if he was filling up his storage with the cheaper fuel? He said: I’m buying just enough to fill the orders,,, one day at a time. He doesn’t want to fill everything at 2.40 if the price drops to 2.00! So,,, when the suppliers start getting nervous,,, and everyone orders large amounts at the same time,,,, the price will rebound quickly.