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The First Oil-Exporting Casualty Of The Crude Carnage: Venezuela
In the aftermath of OPEC's failure to cut oil production, Russia has been acting surprisingly sanguine, perhaps as a result of less leverage in its system as compared to America's own high yield-funded shale complex - now that it is a race to who will default first and be forced to take production offline - with Putin today saying "Russia will cope with the rout in crude oil", and adding that “we are satisfied overall with the situation and do not see anything so extraordinary in what is happening. Winter is coming and I am sure that the market will come into balance again in the first quarter or toward the middle of next year." Maybe it will, or maybe not, if indeed as those with a working frontal cortex suggest the plunge in crude prices is merely a function of a collapse in global demand now that the worldwide slowdown which has gripped Japan, Europe and China. In that case, the race to the bottom between Russia with its higher cash costs, and the US shale sector, loaded to the gills with billions in junk bonds, will be an epic one to watch.
But one country whose fate is now virtually assured - with a happy ending now sadly out of the picture - is the same one that stormed out furious at yesterday's failure by OPEC's cartel members to carve out a consensus leading to higher oil prices: Venezuela.
Here pretty much everything is about to go unhinged, with what now looks like an almost inevitable sovereign default as the endgame, coupled with the removal of a few million barrels of oil from the global supply chain, something which all the other OPEC members will be delighted by.
For confirmation one can merely look at the Venezuela bolivar, which earlier today feel to a record low of 150.76 VEF/USD on the black market according to dolartoday.com, which tracks rate at Colombian border, and as reported by Bloomberg moments ago. Indicatively, the official rate is 6.3 VEF/USD; the first unofficial rate that based on Sicad I, is 12 VEF/USD, while the second unofficial rate, per Sicad II is 50 VEF/USD.
But what best shows that for Venezuela it is essentially game over, is that as the chart below shows, Venezuela’s international reserves declined $1.3 billion in the week after President Nicolas Maduro transfered $4 billion of Chinese loans to the central bank. In other words, the scrambling oil exporter was forced to burn one third of its Chinese bail-out loan to keep itself solvent. The country’s reserves dropped to $22.2 billion today, according to central bank data.
As Bloomberg also notes, Maduro on Nov. 18 ordered the Chinese loan proceeds to be moved from an off-budget fund, so that they would show up in reserves and help boost investor confidence in an economy beset by the world’s highest inflation and widest budget deficit. The following day, Venezuelan bonds rose the most in six years in intraday trading.
“If the plan was to calm the bondholders, then burning through a third of that money in five working days doesn’t do it in any way,” Henkel Garcia, director of Caracas-based consultancy Econometrica, said in a telephone interview. But while Venezuela's bondholders will be livid, Venezuela's "friends" from the OPEC cartel will be delighted: after all its default means one less producer on line, and a natural increase in the price of oil.
Trading in Venezuela’s dollar bonds was closed today for a U.S. holiday. It will reopen on Monday at which point we expect the market to be as close to "offer-only" as possible, because burning through over $1 billion in reserves in 1 week with crude plunging to under $70 means that Venezuela now may have about 6 months of liquidity left at best, since one thing is certain: China will not throw more good money, as in Venezuela bailout loans, after bad.
The only thing that is uncertain is how long until some army general figures out what is going on and decides to go "Kiev" on that paragon of best efforts socialism, Venezuela's soon to be ex-president Nicolas Maduro.
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Chinese naval base in 5, 4, 3, 2...
back in the day a tyrant would have to mobilize an army for a few years in order to subjugate a country. now a couple of key strokes gets the job done.
.
Amazing how the writer is clueless about the subject. Media is just so malinformed that the reader must beware of anything he reads. Trading in Venezuela bonds is NOT closed for the US holiday today!! What nonsense! These bonds are OTC and exchange traded in Europe! The prices moves we have seen already today, down about 3% on average.
I think it's really important for everyone to understand that what is really happening is the onset of a crushing deflationary wave, owing to the stoppage of QE and the resultant global downturn. It is being told as an oil story, but...you don't need gasoline to drive to work if you don't have a job.
Keep on buying stocks and see how that turns out.
i love price discovery. competetion, business fundementals, good old fashished price war, etc. shows at least one market cannot be manipulated by tne american central bank for at least one day. get used to it as i see this as a start to price discovery and the demise of the fed put on domestic equities, real estate and credit.
finally, a crack in the status quo.
rccalhoun
No, a movement in some fake "price" is not a crack in the status quo. There is no movement in "prices" that will de-throne the bad guys and leave the good guys (you and me) in a state of freedom and peace.
There is a way to tell you are free: you don't have to give your income to someone, you don't have to pay rent on land you "own," and you can choose what currency to settle your accounts.
We are going to see all kinds of price movements in the near future. None of them are good news.
As far as I can tell, no one is manipulating grain markets. Maybe no one cares;)
It does seem that the QE thing has gotten away from them. The Fed essentially admitted, they don't have a handle on how to influence interest rates or money supply anymore. Ooops. BenYellen are in deep weeds.
Yeah, you know, ADM and Monsanto are chumps, right?
There isn't just one united group that are in lock step with each other. If there were we would have been finished off years ago. While most of them benefit from the same things, some benefit from some things while others don't.
The whole shale boom and now the saudis dropping price to fight it benefits someone in those elite clubs.
Also the end game of inflating assets is to deflate them, bankrupt the imprudent and get all their stuff for pennies on the dollar.
US debt to GDP >100%
http://www.tradingeconomics.com/charts/venezuela-government-debt-to-gdp....
http://www.reuters.com/article/2014/09/16/venezuela-ratings-sp-idUSL3N0R...
Crow all you like but imagine the US if it got nailed with a more appropriate B, would be armageddon.
"Economic recession, high inflation, and growing external liquidity pressures will continue to erode the government's capacity to pay external obligations over the next two years," S&Psaid on Tuesday.
Like Rome the USA gets to say what it wants, go to war where it wants, and do what it wants including Global Systemic Fraud in Derivatives... due to Patronage & Loyalty from both the Petro Dollar, Central Bank Leadership, Treaties, Financial & Political Super Power Status, and from Military Super Power Status that allows us to keep Sea Routes open.
I'm thinking this is the Meaning of "New World Order".
But I haven't read all of the above...
You are also malinformed! Next time you post something and make a comment like that why dont you try and do some intelligent analysis of what you are saying. This Debt to GDP ratio is at the official rate of 6.3 VEF/USD !!! Why dont you try recalculating all that USD debt and Venezuela GDP converted at a much devalued exxhange rate like 50 VEF/USD or 150!!
I see your point, but why does Venezuelas debt/gdp ratio depend on a relative valuation? Is the US debt/gdp ratio dependent on the exchange rate to...something else? Gold maybe?
WHen you fund yourself in another currency, like most emerging markets do, your debt/GDP ratio is highly dependent on the value of the local ccy/USD rate. As an example when calculating the Debt/GDP ratio in USD, the external debt of Venezuela is USD and very signiciant. So that doesnt change, but the value of its GDP does as its converted from Bolivars to USD. In the case sited above it shows at 50% Debt/GDP but using an exchange rate of 6.3 VEF/USD. But as 80 VEF/USD its already at 100% debt/GDP in USD. As you can see this gets worse as the country devalues more.
US Debt/GDP is not dependent in any significant percentage to any foreign currency or gold since it issues the great majority of its Debt in USD. Thats why it can print money and not technically default for awhile.
It was a rhetorical question. I was trying to make the same point that JC posted below, but thank you for the response none the less.
One would think that a country such as Venezuela would be funded in oil (your 'another currency') - which at this moment is basically a $ figure but in practical terms (say to China) its anything but - making the $ price somewhat irrelevant. I know, fantasy land.
Coal prices have collapsed in China. Why would they need oil?
Sm(au)og?
:)
Why dont you try recalculating all that USD debt and Venezuela GDP converted at a much devalued exxhange rate like 50 VEF/USD or 150!!
Yeah and what if USD had a similar crisis?? You're talking a dollar shortage since maduro. My point was on the Debt/ GDP growth. If US got slapped with a B, try calculating that debt without petrodollar status..
Americans are so arrogant about this because they got the reserve currency, would be the same situation (or worse) if that changed.
Your point is invalid because it is not a simple Debt/GDP ratio you can compare between a country that finances mainly in a foreign currency and one that finances almost exclusively in its own currency. It is also the reason that the US wont get slapped with a B credit rating! If you fund yourself in the currency you control and that is internationally accepted (big importance!) then you can sustain much higher levels of debt/gdp ratios with much higher credit ratings compared to those who dont. Im not supporting US policeis but I am drawing a MAJOR disctinction between putting the US on par with Venezuela!
You seem to have reading comprehension skills, I'm saying outside of reserve dollar status for all the mockery at them pound for pound Venezuela has run better budgets. If they bowed down to the US their money troubles would disappear overnight.
Which country to bet on? King dollar OF COURSE.
That said if Maduro could run as epic a bond Ponzi scheme as the U.S. I'm sure they'd go spending crazy too.
Venezuela will not be sending all their oil to China for refining such that it can then come back to Venezuela.
And gasoline in the USA will be under a buck a gallon very soon. The price of electricity on the other hand...
under $1 a gallon !?
Want to bet the million i didn,t lose in SDRL yet ?
Sorry James, you simply are misinformed or wilfully ignorant. Venezuela is currently running abudget deficit of -11.5%, last year -8.5%. Venezuela is running a ponzi scheme and its in the process of blowing up. But please if you are so inclined, you can happily own venezuelan 10 year USD bonds at 20%!! Great deal right? Let me know when you put your money where your mouth is so I can laugh.
"pound for pound Venezuela has run better budgets"
What are you basing that on, that debt/gdp chart? While I'm not actually doubting you (how could it not be better run, really) I have to assume that their corruption is just as bad, no?
If they sold out to the US their money troubles would disappear overnight.
With what combination of magical beans does a default take oil production off line?
Oil is always good collateral going forward, at some price.
Maybe the Communist regime should raise domestic gas prices..., from a nickel a gallon!
Ain't Soviet Central Planning grand?
Venezualan oil is expensive to recover, and requires ongoing investment simply to maintain stable production. Venezualan output is already down significantly from its peak, due to underinvestment. Without access to capital, production will continue to decline.
It is ALSO high sulfer and not a simple refining process.
the US had/has several refineries capable of handling it. dunno about these days though.
It would be funny if one of the unintended consequences of the US cold war on Russian oil prices was to drive Venezuela even deeper into the arms of the Chinese and the Russians. But then again, they are playing chess while the Administration is playing checkers.
the pen is mightier than the sword
So what ticker symbol would one use to short the worst of the worst of the Vene bonds? No sarc.
I don't trade bonds or off shore, but as a rule, there is no practical way for individuals to do that.
At best, you might be able to short a Vene bond fund. Good luck. Let us know if you find something useful.
Quite possibly...great observation. Otherise couldn't happen to a more deserving bunch of Cuban-inspired socialist assholes.
Time for a MADuro patriotic speech followed by unleashing the dipshits to loot the few remaining stores of the productive class.
That always bought a few mths...
Lights out meatballs...
Those tinpot tyrants are so stupid. The Western tyrants know how to keep the ponzi going for over 100 years. The tinpot tyrants need to watch Wall Street to learn.
Yet, morons are lining up to loan them money. The belief in sovereign gaurantees runs deep, (See Argentina, USA, Greece)
Long used silicona.
Just wait until G-20 countries start getting smashed. Norway, Sweden, Finland, Australia, Brazil, England, Ireland, Spain, Italy, France ect... Countries that export CL or are tied to commodities and energy.
Russia will do just fine, and China has it's tenticles in Africa and South America, along with Russia.
I don't think cheap oil is to save Japan. Japan was a lost cause back in the late 80's when they refused to write off bad debt from the real estate crash.
Cheap oil destroys far more than it potentially saves when you factor in all the hedges and derivitaves contracts globally. This is the petrodollar in it's death throws.
Correct.
Where does Mexico get a shitload of tax revenue? Pemex. Cheap oil will toss a lot of pieces of shit at the fan.
I forgot Mexico. You're absolutely correct. Philo Beddoe
Additionally it is a "National Security" concern if starving people are pouring accross our borders.
Doesn't Cuba still get greatly discounted oil from Venezuela?
Caramba!
I don't know?
The Castro brothers are still alive, so my guess is yes.
Maybe the Cubans are trading boatloads of toilet paper for oil?
mi culo es que pica!
Lo siento;)
Está bien tengo rollo de repuesto ;-)
Good planning;)
Gracias a mi amigo.
puede usted tener unas maravillosas fiestas
WTF?
Horrible Spanish , what are you trying to say and i'll translate?
yes they do.
gasoline 17 cents per gallon in VZ.
Bottle of pine sol, can't be found/bought.
http://www.wsws.org/en/articles/2014/09/15/peme-s15.html
Who knew? Interesting read...if one needs more proof that the family jewels are always for sale at the right price...high or low.
Well if it's your bestest buddies that are making bids for those energy assets, why not do them a favor and cut the asking price? I'm sure they'd offer their "thanks" at a more appropriate and legal time...
Mexico is amost as sanguine as Vlad- http://www.bloomberg.com/news/2014-11-26/iran-says-close-to-saudi-view-o...
Don't the US and Canada also get a shitload of tax revenue from oil production?
(in the US perhaps more sales, royalty, and personal income taxes than the corps actually paying)
You're right. The biggest oll industry profiteer isn't the oil companies, it's the government.
I suspect it's a similar story for cigarettes and maybe even alcohol.
Something stinks here, but I can't put my finger on it...
If this stratagem was anti-Russia (and the MSM was any near correct) both Iran and Venezuela (who are BFF with Moscow) would object and schisms would form within OPEC (much of which has no beef with Russia, and would love higher oil prices).
So what if the group-think was 100% backwards? Instead of the US (in conjunction with KSA) re-playing the oil card to destabilize the USSR in an economic war, the Russians (in conjunction with KSA) are playing that same oil card to destabilize the USSA in an economic war.
I keep coming back to how one builds "A Coalition of the Willing." It wasn't WMD. It was strategic bribery. In at least one case it was actual monetary bribery (11-digits of USD), but the Poles were offered some wiz bang Star Wars missile defense, the Saudis got to buy advanced MIC toys from Uncle Sam's Club, the "EU membership card" was dangled before Ukraine and Georgia, the "NATO membership card" was officially offered to Latvia, Lithuania and Estonia, and whatever the US was offering to the Turks wasn't enough (I am not sure if the Copenhagen Council declaration helped or hurt since I was in DC and not the EU, but it was too late for the US military units that were going to attack Iraq's northern front, and whose ships were literally setting sale at the time of the conference). So while the sheeple and EUrocrats grazed on yellow cake, everyone else was getting IOUs from Foggy Bottom, or getting their existing IOUs to Uncle Sam cancelled for the low-low price of a couple platoons of fobbits or even worse public realtions officers with no armed backup and the all importand extra flag flying at coalition headquarters.
So Venezuela throws a temper tantrum, but nothing more serious, and OPEC seems to be putting up a surprisingly united front, given that every Minister walked into that meeting knowing if they didn't cut, their revenues would be cut. Throw in the pow-wow with Russia and Mexico earlier in the week (when the eventual outcome was telegraphed).... something stinks. Perhaps Barry really is playing checkers...
For now only US projects (or can project) enough power in the middle east to keep the human abomination that is the Saudi royal family in power. Russia or China can't do it (Russia will never ever be able to, China very well might, and soon).
So true ... and I'd also like to add Mexico to the G-20 list of vulnerables.
Of course, the dollar is on its last legs. For the last 6 years, right? Lets watch the dollar shorts get smashed as the USD goes up 30% shall we?
King Dollar going nowhere for quite a while
Like the Mafia, who takes a piece of the business like a tax... causing prices to go up.
We debase everyone more than ourselves, but we debase ourselves too by sharing with a lot of overhead bosses who are out of town.
So, yeah, we fu** everyone more than ourselves, but we think this arrangement works.
When the USD gets abandoned as producers prefer to settle in anything BUT US Dollars, the short or long paper anything hedge in USD won't buy a pound of butter.
Maybe this is the real deal. I'm hoping it is. The world finally saying "Good Bye USD", it was nice while it lastet.
There goes SS, there goes Pharmacare, Medicaid and Obamacare. There goes EBT and of course a military budget which eats up a big chunk of US Dollar tax revenue.
Gotta scale back alot.
US dollar = US military power. You people should pay attention to ekm1.
Hedge funds and derivative contracts going busto is a bad thing? So the financial industry that does nothing but suck money away from producers takes a hit? Sounds quite good to me actually.
So what Spanish Banks this time are holding the Venezualan Bond bag?
Given what has unfolded over the past couple of weeks, anyone who thinks that the balls will stay in the air significantly longer will be in for a rude awakening.
You would think so..
If one of those goat molesting princes just utters the words "we will cut production" its back to normal in 24hrs...
OR a mysterious explosion on a key pipeline, and, you guessed it, back to normal in 24hrs...
i know i'm on an island here ... but i think US on doorstep of next recession
and when that realization hits the masses ... and not a damn thing federal reserve has done or can do about it ... the markets will come tumbling down ... HARD
Tinky you're one of the Z/H contributors I pay close attention to. I agree, the Walrus/ Sea Lion can only balance the ball for so long.
We're beginning to see QE cannibalize itself. Japan could be saved at the cost of 1/2 the G-20?
Thanks Yen. The respect is mutual.
I am not smart enough to be able to make specific predictions with confidence. What I am comfortable doing is viewing the broader picture, and gaining a feel for the relative instability of the system.
When the big, status quo names (Greenspan, a number of major hedge fund managers, the IMF and BIS, etc.) began sounding loud, public warning bells recently, my antennae began to quiver, and having seen, in quick succession, the Japanese CB go all in, oil prices in freefall, Dutch repatriation, GOFO, and several other signs of great stress, I can't help but believe that we are witnessing the beginning of the end of any pretense that TPTB are actually in control.
Interesting times, as they say.
Thanks for taking the time to offer some advice Tinky. I really enjoy hearing ideas and thoughts from people that understand the "larger" picture. The MSM and Politicians try to complicate issues for their own inflated egos and ideas.
Things aren't really that complicated when you take the time to step back and observe situations, from an outside perspective.
I guess that's why we gain wisdom with age.
things will get worse before better
things will get worse before worser...
things will get worser before worsest...
it's always darkest before it goes pitch black
If the ppt hadn't stepped in about a month ago, to thwart the US equity correction that was rapidly gaining momentum, the movement in crude, treasuries etc etc would all make a lot more sense...ppt protecting equities, while most other asset classes are telling the true story---and it isn't pretty.
A little anecdote.
A friend of the family sells home and auto insurance. She told us that she has never seen so many of her clients move from annual premium to monthly premium. That, and she has never been asked to shop around as much as she has this year. Nice girl...shitty business.
Fwiw, I switched to monthly and asked her to shop around.
..that goddam baboon ate all my Oreo Cookies!
He's an ape Ma...
...what's the difference!
Finally some meaningful de-leveraging.
https://www.youtube.com/watch?v=AlQ8BpuydEI
Thank u sir, from a former Jackson Hole resident... rotfflmao
...12 ribs my ass!
She may be nice but insurance companies are parasites..
the half life of bullard (or others of his ilk) utterances will get shorter and shorter ... until the markets say "screw you" and just ... SELL
You mean Central Planning doesn't work?
"You mean Central Planning doesn't work?"
In an economy, no.
Centrally planned killing works just fine, as evidenced by the comparison of the "failure" of Obamacare with the "success" of drone warfare.
An American, not US subject.
Democide.
They have some gold to sell.
160 tons should buy 1 more day
When the gold came back, they had about 315 tonnes of gold in Caracas and about 50 tonnes aboard (at Bank of England?).
After that, Goldman and Bank of America were pitching swaps and loan deals at the Venezuelans using the gold as collateral.
That gold will not stay put given the current situation
"with Putin today saying "Russia will cope with the rout in crude oil", and adding that “we are satisfied overall with the situation and do not see anything so extraordinary in what is happening."
Of course Russia can charge what price it likes, not what the fixed Zionist markets of the west would say the price is, for gas. Western Europe could not get supplies from others in a timely or even cheap manner. So that would be that.
We'll see.
An American, not US subject.
How about double the price for a start, or index the price to the temperature in Europe.
How about index it to the number of times the Zionist stooges in the west blame Putin for the situation in the Ukraine.
That would be funny. "You're paying 10 cents more per BTU because Cameron wouldn't shut his deceit-hole."
An American, not US subject.
Word of the day: carnage.
Sick
This activity has nothing to do with the ghost of Christmas present.
I continue to think European central banks should simply give out free Euros from their officesAnd bring the new american experiment on the old continent down.
The Chinese should have used that money to bribe Washington D.C. What are they stupid.
They are buying up the oilfields. They don't care about a dying America.
What will the long-term effects of $60 per barrel of oil be?
I'm assuming/guessing global production will be cut, driving prices much higher (?)...
Thanks for junking me, downvoter, but the question was sincere. An answer would have been more enlightening and educational.
Note to self: Must... find... a more... helpful... site.
at the moment, it's hard to say about production cuts
for producers desparately needing that oil money(and as long as their production cost is profitable, just at lower margin), they might have to increase production just to make up for the revenue
for producers with high production costs that just become unprofitable, then sure they might go under water and their production might fall off (but of course they will attempt to tough it out as long as possible first)
production cuts won't automatically drive prices higher, you need demand to do that.
real question is: on net, are there be more producers whose productions costs are lower so they will continue to pump or even increase volume just to make up for lost profits? or are there more producers whose productions costs are high who'll be forced to shut down?
I don't know the physical realities of where every oil producer's production cost is, someone else will have to answer that, but if more producers are low cost and desparate for profits than not, then oil production is just as likely to maintain or even increase in volume.
My sincere thanks for your thoughtful and intelligent reply - it's quite helpful and very gratefully appreciated!
Colombia will be next. This is spreading like ebola.
The next S.A. country to collapse will be Ecuador. It's also a workers' paradise.
Oil accounts for almost half of Ecuador's exports.
I agree with the original commenter, they'll likely get a Chinese military base, or, the Chinese will be talked out of it by some unrest with the Uyghurs in western China. Also the article is right - Maduro is about to get "unelected" by some Venezuelan general.
Mexico is very similar. There are a lot of union jobs with Pemex that will go up in smoke and there will be quite the rush across the border.
I just wish everything would wait a litle bit before falling apart. I'm almost ready.
You got 6 months to a year to get ready
Really, so soccer moms will not drive more and increase velocity - of money that is.. By the way that is about the fifteenth time I have read that and this time is different why?
I sense by the time Maduro is done with his first full term as President, his old bus route will be looking good.
The only true supply/demand curve:
http://www.bing.com/images/search?q=curvaceous+women%5c&qpvt=curvaesous+womn%5c&FORM=IGRE
Curvas peligrosas.
Good thing all their gold is in NY so their central bank can sell it all to shore up The People's confidence.
First god took Chavez from the people, then he took the oil price that let perfect American utopia rise to heights not seen in ages
.
no wonder communists hold no weight in his word
The decision by OPEC members Thursday to keep their production ceiling unchanged has sent crude prices into a tailspin. Dropping oil prices add a new surprising new dimension to the stability of the world financial system.
While often heralded as a godsend to the economy and the end consumer we must remember lower prices hurt both producers and those in the business of oil exploration, drilling, and sales. The shale boom has been one of the bright spots in the economy in recent years and acted as a tailwind that accounted for much of America's growth. Expect this to come to an abrupt halt and with it thousands of jobs. The article below delves deeper into the dark side of falling oil prices.
http://brucewilds.blogspot.com/2014/11/dropping-oil-prices-increase-risk-to.html
There may be a cutback in oil production, but it will not soon come from Venezuela, which will have no choice but to produce and export every drop they can, to cover their budget and current account balance problems. Their production will taper off, as it has been doing for years from lack of oil-field investment. They have already cut back on deliveries of cheap/free oil to allies in SA.
The "Chavez revolution" stands as one of the most ridiculous exercises in economic buffoonery in recent years, alongside QE and bankster bailouts, and austerity for the PIIGS, IMHO. As some wag once said "Unemployment is not working".
So the FSA in Venezuela is learning their asset-seizing, industry-nationalizing socialist heroes have left them to grinding poverty and unrest? How could state-sanctioned destruction of access to international capital markets and alienation of suppliers of oil industry maintenance equipment and expertise come to this? Some folks got fucked.
Look like the bushfire spreading to Sovereign Debts. A bonfire of paper assets in the coming days ?
the only difference of course is that in the US oil industry is just another economy sector, which will restructure once again faced by challenges (and all the other consumers will benefit a lot - and don't forget USA is still net energy importer), while in Russia it is the single most important cash mashine that subsidizes all the military expansion, social welfare, and is really the only thing backing the ruble. The only thing left got for liliputian is to claim how they do not care about oil price, cause ruble is now 2 times weaker, so "negative effect on budget is offset", and the common Russians.. well, who really cares about them, not even themselves! They would still rather finance the wars than have something more than just potatoes on the table..
As the Oil world trembles and the US fracking Industry puts its tight-oil chariots in a circle, awaiting those nasty Saudi Injuns who attack their wagon train, the sons of Cortes and Pizarro also feel the pain.
What a global game this is !
"The Injuns are coming and Cochise and Geronimo, Sitting Bull and Crazy Horse, all wear Arab headdresses."
Jumpin' Jackassing Jehoshaphat!
So, in the conspiratorial world of Uber circles of the Great Game of EuroAsia, the question gets asked :
Is Saud in collusion with the US, like the Seminoles with the Feds during the Civil War, to GIT Iran and Putin, OR, are they REALLY after us, like the Apache and Comanche, the Sioux and Cheyenne?
Some conundrum that doesn't concern Maduro as he sees his Orinoco house burn n burn !
Meanwhile the smart guys of NSA have invented the Regin to complete the Stuxnet.
Now DAT is cyberwar of awesome dimensions and its very Anglican as expression of malware.
When Oil and Cyber wars spoil the hopes of a better world.