Quote:
Originally Posted by kazbalah
So i take it you have not heard about the deals they are currently doing, to sell oil and gas to China in YUAN.
Russia is one of the worlds biggest energy exporters. The reason the ruble collapsed was because the US manipulated the oil prices.
They made everyone sell oil really cheap, and this made it so Russia had to export oil and gas at very cheap prices. Because that's a large part of the Russian economy the value of the ruble dropped suddenly.
And to counter this move, putin is going deals with China.
Pretty basic stuff, easily verifiable.
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Ok I'll bite.. Russia's gas deal with China is $400 billion.. I know, I know that's a lot of money for Russia but it's pretty much nickles and dimes when it comes to the business the US does with China. That's also not 400 billion over a year but rather 30 years..
ie $13 billion a year for 30 years.. Also in order to get this deal, Russia had to sell majority stakes in some of their oil and gas fields. ie China now owns majority share in some of the oil fields which they are buying this oil/gas from.. So how much of that $400 billion is really going back to Russia.. (yes Putin sold off your oil fields to the Chinese to fatten his own pockets)
Russia's entire trade value with China last year was $89 billion
Meanwhile last year Russia's trade with the EU was $263 billion.
Yet Putin the logical person he is, decides to piss off the EU & the 28 customers with in it, in order to put all his eggs in a much smaller trade partner's basket.
Most people understand that is very very stupid.. But not the Putler. Basic logic defies Communism it seems..
Also as far as that $400 billion being nickles & dimes I'll tell you why.. Last year the US did $466 billion in trade with China. Yes that's a single year. Now added to that.. Much of the money doesn't really fall into the hands of China.
Most of the stuff the US gets from China is products for American owned companies. This means the profits are held onto by US companies not so much China as it's not China really producing & selling but rather supplying factories & labor. Even still with this deal.. the Chinese make shit loads more from the US than they ever will from Russia.