Winners and losers of oil price plunge – FT.com

This article, which is top of the FT’s most-read list, is well worth a read. Check it out!

Winners and losers of oil price plunge – FT.com.

Clearly, in geo-political terms the collapse in oil prices has most impact in Russia. In response, Russia has raised domestic interest rates to 17%.

Let’s be clear, Russian consumers will feel the pain and this will create a domestic challenge for President Putin. Western leaders should think very carefully about inflicting further economic pain on Russia when she is already suffering. A wounded bear is especially dangerous. Russian people have very long memories. I remember a Russian friend telling me how much Russians admired Winston Churchill for running the German blockade to bring supplies to Russia by sea in WWII.

Because of collapsing oil prices, it’s an opportunity for the West to gain political traction by reducing economic sanctions on Russia?

Thoughts?

One response

  1. I tend to agree with Dr Alf but this policy of applying sanctions on Russia is part of a new “Great Game” whereby we and the Americans want to control Eurasia and all the wealth within it.
    Eurasia in these terms means Russia and China.

    The original plan for this was developed in Victorian times,was updated in 1997 by Brzyzinski with his book “New Geostrategic Imperatives—” and is being carried forward by the PNAC.

    How is this to be brought about?

    Firstly by stirring up trouble amongst the Chechens and the Muslims on Russia,s southern flank.
    Then through the application of sanctions and credit downgrades which will make the rouble worth less and make it harder for Russia to modernise her armed forces.

    Finally through starting “colour revolutions” in places like the Ukraine using clearly identifiable Neo Nazis to draw Vladimir Putin in whilst providing the rationale for yet more sanctions.

    China of course confounded these deliberations because they were able to modernise and catch up technologically in 4 years as opposed to the 20 years predicted by UK officialdom.

    To reduce China,s competitiveness and slow down Hong Kong,s rise to the world,s premier financial centre by 2016 we have the so called “umbrella revolution” all about choosing the new Hong Kong CEO.
    Then we have the policy of stirring up Uighers and Tibetans in an attempt to get the country to split up.

    The new BRICS bank is a first step around this encirclement and buying shareholdings in Western companies and buying land and companies outright is another.

    As we speak work has already begun on a wholly Chinese owned Nicaraguan canal which will rival the soon to be widened Panama canal.

    In the end the Russian people will be made to bite the bullet but the sanctions will hurt countries in the West as well and are counterproductive.

    From where I sit Russia is vulnerable but will not be forever and China is in a much stronger position.
    The people engaged in this new Great Game go on making mistakes and go on imagining that no-one else can work out what they are doing.

    In anyone,s book that is tantamount to underestimating your opponent(“I don’t worry about Russia ,they don’t make anything”–Barack Obama).

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