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Last time oil dropped so abruptly the Soviet Union fell apart. I wonder what will happen this time.
by melted 11y ago
Last time oil dropped so abruptly the Soviet Union fell apart. I wonder what will happen this time.
- danieltillett 11y agoVenezuela is the canary this time.
- chvid 11y agoMaybe the Middle East falls apart.
- simonh 11y agoRussia is still looking very vulnerable in that respect. Rosneft's heavy debt burden combined with high inflation in Russia (probably 15% for 2015) is hammering their ability to invest in expanding capacity. Reduced investment also means costs of production are on an upward trend. Then add in the Saudi's moves to increase market share in Northern Europe and it's not looking too good.
- danieltillett 11y agoDo you think Russia is going to break before Venezuela? I would not ever want to bet against how stoic the Russians can be.
- _Codemonkeyism 11y agoThe socialst government of Venezuela already 'broke' and was voted out in favor of conservatives, due to various reasons, one of them that the socialists could no longer pay for everything with petro dollars. What more would you assume "break" means for Venezuela? Russia's government is still in place.
- danieltillett 11y agoWe will see what all the voting amounts too in practice in Venezuela. Even if it does mean a change in government and policy there is not much they can do given their financial situation.
- simonh 11y agoI don't know what Russia 'Breaking' looks like. Is it Putin getting replaced? Is it a Russian Maidan? A Russian default? Things are going to get worse, that's for sure, but talk about economies 'collapsing' or being 'destroyed' are always superlative.