Saudi Arabia, the most influential member of OPEC, and the United States are working together to destroy the Russian economy and destabilize the country.
Russia Struggles to Contain Damage as Oil Prices Slide
Despite the best efforts of the Russian central bank, the ruble is experiencing a dramatic fall. “We are seeing an economic crisis,” Natalia V. Akindinova, a professor at the Higher School of Economics, told the New York Times on Tuesday. “We are seeing a sharp devaluation of the ruble at a time when the central bank doesn’t have the reserves to influence the market, as it did in the past crises.”
“Russia’s economy is terribly dependent on oil: if the oil price falls so low, severe economic recession is inevitable and default becomes a real possibility,” writes Frances Coppola for Forbes.
The Russian Central bank figured it could ride out the storm created by falling oil prices, but its efforts have proven insufficient.
“Responding to recent oil price falls, it floated the ruble and allowed it to fall in line with the oil price, intervening only to smooth out sharp price fluctuations. It hiked interest rates to counter domestic inflation despite the weakness of the Russian economy, due (in part) to Western sanctions,” Coppola explains.
The ruble crisis prompted currency brokers to dump the ruble, further escalating the situation.
“Earlier, we reported that various currency brokers such as FXCM and FxPro, would – as a result of the soaring liquidity in the USDRUB pair – suspend trading in the Russian Ruble (while other merely hiked margins to ridiculous levels). It appears things have escalated again, and as FXCM just reported, instead of just politely advising clients not to open new USDRUB position tomorrow, it has advised anyone long, or short, the USDRUB that their positions will be forcibly shut in moments,” Zero Hedge reports.
“Scenes that Russians hoped had receded into the past reappeared on the streets,” the Time reports today. “Currency exchange signs blinked ever-changing digits. Russians rushed to appliance stores to buy washing machines or televisions to unload rubles. Unsure of prices, car dealerships like Volvo in Russia halted business, while Apple stopped online sales in the country.”
Financial Class Using Oil Weapon to Tame Russia
The economic war waged against Russia by the financial elite and their partners is having a concrete and catastrophic effect.
“In recent developments, it became clear that economic warfare is the main weapon used by the Transnational Elite, (TE- i.e. the network of the elites based mainly in the G7 countries which run the New World Order of neoliberal globalization), to subordinate Russia and integrate every other country still resisting the process, e.g. Iran and Venezuela,” writes Takis Fotopoulos.
It is not happenstance that Ali bin Ibrahim al-Naimi, Saudi Arabia’s Minister of Petroleum & Natural Resources, and the most influential voice within OPEC, decided to set in motion the price free fall now battering the Russian economy.
The establishment media declares the effort is a bid to win back market share, but this is little more than a cover story.
In fact, the manipulation of oil prices is an effort to destroy the Russian economy and set the stage for yet another Soros-esque velvet revolution.
It is worth quoting Fotopoulos at length:
It is therefore clear that Saudi Arabia’s action in precipitating the dramatic fall in the price of oil was far from accidental. Furthermore, it was hardly motivated by a Saudi attempt to keep its dominant share in the oil market, supposedly threatened by the US shale oil production. This explanation, given by the ‘globalist’ faction within the Russian elite and the liberal “Left” in the West, was in fact an alibi used by the TE itself and the Saudis in order to disguise the real aim of this action. That is, the use of the price of oil as a highly effective weapon of economic warfare in order to force Russia and associate resisting regimes (like Iran and Venezuela) either to submit to the TE rule, or face a possibly severe economic recession (depending on how long the price of oil will be kept at very low levels) which could well lead to ‘velvet revolutions’ in all these countries and, possibly, to regime changes.
The financial media admits as much:
“Among vulnerable producers are regimes that one would dearly like to see weakened, Vladimir Putin’s Russia foremost among them,” writes Martin Wolf for the Financial Times.
Wolf notes that oil played an instrumental role in taking out the Soviet Union. “The story this time is not so different,” he writes. He applauds the possibility oil may once again undermine Russia and make it subservient to the whims of Wall Street and the banksters.
Russia: the Military Option
There is, however, a caveat that will undoubtedly complicate the effort — Russia’s determination to upgrade its military in the wake of the crisis in Ukraine and moves by NATO and the West to aggressively militarize Eastern Europe.
In November, Michael Snyder wrote about the Russian military and its recent technological developments and how it is preparing for a showdown with the West, including the possibility of nuclear war.
Russia is a vastly different country than it was under a fossilized and atrophied Soviet Union. The question is: will it take engineered economic warfare and the possibility of its destruction in stride, or will it respond militarily?