Everything You Always Wanted to Know About The Drop in the Price of Oil Story

The unfolding story in Russia and the worldwide low oil prices are something to keep your eye on.

First the oil business. It is Saudi Arabia who essentially controls the world’s oil price due to their huge amount of oil reserves. And it is the Saudi’s who have decided not to intervene while oil prices have been plummeting in recent weeks to less than $60 a barrel. Enter Russia.

Close to 50% of Russia’s economy now relies on revenue from oil exports. Ergo, with the drop in the prices coupled with the sanctions put on them after Putin went into the Ukraine, the ruble is falling like a stone.

The question is why Saudi Arabia decided now was the time to play with the oil prices. The answer is to punish Russia.

The greatest threat to Saudi power in the Middle East is Iran. The prospect of a nuclear Iran is a nightmare to Saudi Arabia. (In case you have not noticed, the West has still not managed to cut a deal with Iran to stop their nuclear program.)

It gets a tad complicated here, but read it carefully. This is one of the keys to the puzzle:

Russia has not been helpful in reigning in Iran and continually aggravates the Saudi’s with their support of the Syrian regime (who is supported by Iran). In other words, Russia is actively undermining Saudi power in the Middle East. The Sheik is not all amused with this and is now punishing Putin.

Russia has basically no infrastructure. Most of their food and other staples are imported. Imagine now the ruble is worth half of what it was last year and they still have to import those staples. Prices are going to rise for basics like milk and bread. If and when the people in Russia decide that Putin is to blame for their hardship, he will be facing street riots, much like Mubarak faced in Egypt. And look where he is.

Now here’s the scary part: If and when Putin decides he’s had enough of the Saudi’s game, what is going to stop him from sending some of his goons to, shall we say, change the minds of the Sheik and his family. We’ll tell you. Nothing is going to stop him. If ya think the world is upside down now, just wait.

Updates to this story: Apple has halted all online sales in Russia.IKEA warned Russian consumers that its prices will rise Thursday, which resulted in weekend-like crowds at a Moscow store on a Wednesday afternoon.

Russia and Saudi Arabia spoke today. Maybe this will deflate the upcoming crash.

What happened in Australia is not an isolated incident in the world. Each of the most current incidents, like the ones here where two soldiers were killed in separate attacks, have their own scenario but share a common link – radical muslim websites.

It appears that people living on the edge of society are drawn to radicalism. It makes them feel like they belong, like they are part of a community and as humans we need that to survive. Unfortunately what they are told to do in those videos is not part of society.

How to put an end to the lone wolf attacker? Perhaps it’s time to call on Israel who, out of the need to survive have mastered the art of security. Unless someone else has a better idea.

Hackers have brought Sony to their knees with chilling messages. They have threatened a 9/11-like attack on movie theaters that preview the North Korean comedy spoof ‘The Interview’, making fun of Kim Jong Un.

“Remember the 11th of September 2001. We recommend you to keep yourself distant from the places at that time. (If your house is nearby, you’d better leave.) Whatever comes in the coming days is called by the greed of Sony Pictures Entertainment.”

The US’s five top cinema chains and some here in Canada have chosen to heed these threats –  “individual cinema operators may decide to delay exhibition of the movie…” The hackers win.

Today Obama brought into place normal diplomatic relations with Cuba, a mere 90 miles from Florida’s shores. They (Cuba) must feel like they just hit the biggest jackpot known to man. Now that the doors have been flung open, you can bet your bippy that Americans will be flocking there in droves.

Aside from the fact that it’s so close to the US, and the prices will be dirt cheap, the mystery of the country has intrigued people for over 50 years. We don’t think Cuba has the infrastructure to deal with what is coming so you may to postpone your trip for a while. At least until they can clean the sheets between hotel guests. Fech.

Could be Obama got caught favoring people who donate money to him. We hope you are not surprised. We’re also pretty sure this is done all the time, but unfortunately for the prez, he got caught. Oops. Someone in the White House is not the smartest chip in the box. So what happened?

The president’s cabinet including then Secretary of State Hillary Clinton, suspended travel bans placed on certain Ecuadorian nationals who committed fraud (and worse) after those nationals’ family members pledged five- and six-figures sums to Democratic organizations. Uh oh.

In a suspicious donation, a $40,000 check was written to the Obama Victory Fund in May 2012, just one day before the Obama administration lifted the ban against some dude by the name of Estefanía Isaías. Politics is not the cleanest business to be in.

Thanks to one of our loyal readers, we are able to give you a better breakdown of the transfer payments made from Canada to Quebec. Ready?

Next year, Québec will receive 9.52 billion dollars in equalization payments. This is an increase of 235 million dollars over the current level of funding. Since our Conservative government took office, equalization payments to Québec have increased by over 98%. The Canada Health Transfer will increase by 432 million dollars, reaching a level of just over 7,85 billion dollars. Since 2006, federal transfers to Québec have increase by 8.4 billion dollars, which is to say by just under 70%.

Could someone please send this memo to Pierre Karl Peladeau who thinks Quebec’s economy is strong enough to go it alone as a country. PKP must be living in a chip box or he has the biggest blinders known to man. Or he wants to be KING, which is the most likely scenario. That’s why he’s marrying Julie Synder. He needs a queen on the throne next to him. Oh thrones – hehehehehe. Maybe his throne will be in the terlit. hehehehehehe.

Happy Chanukah and Good Shabbos, We’ll talk…

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