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To: yorkiemom; 9thLife

No, it doesn’t. Russia has a market cost of producing oil that doesn’t change when their phony-baloney currency changes in value, because oil is sold on a world market, and they must buy plant and equipment to produce and transport oil on the same market. Devaluing their currency doesn’t do anything but screw the Russian people — not just their oil workers — but everyone across the board. It amounts to an enormous tax on the Russian people to keep their Chinese contracts satisfied, and it doesn’t change the fact that in gold, or dollars, or other commodities that Russia must buy they cannot pump oil out of the ground for the $2/barrel that the Saudis can. Russia cannot win a gas war with OPEC via devaluation.


62 posted on 12/15/2014 11:07:55 PM PST by FredZarguna (I'm gonna take this counter top, and I'm gonna whop you on that side of your face with it.)
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To: FredZarguna

Devaluing their currency makes their oil the cheapest on the planet.


64 posted on 12/16/2014 5:02:16 AM PST by 9thLife
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