The Russian Ruble has taken a turn for the worst as an overnight move by the Russian central bank increased mistrust of the entity and the buying power of the Russian currency. America may feel the pinch before long.
At 1:00am in Moscow, the Russian Central Bank increased interest rates from 10.5% to 17% – a 650 basis point move in moments. That move sent the Ruble into free-fall.
Upon the banking move, the currency went from about $58 dollars per ruble to a low of $79.66 per Ruble.
The Ruble has been steadily declining in value since late summer due to the crude oil glut and ensuing price decreases engineered by OPEC.
Russia is not a heavy manufacturing or intellectual property production nation. It’s gross domestic product comes almost entirely from commodities – oil and precious metals making up a huge part.
As oil declines, so does the ability of the Russian economy to grow. For each $10 drop in the price of crude, Russia loses approximately .8% of GDP. The price of oil has dropped from a high of about $110 to a current value of about $56 which could equate to an almost 5% loss of GDP.
Adding to headwinds, Vladimir Putin’s incursions into Ukraine have brought on international sanctions that make it nearly impossible for Russian businesses to roll-over their Euro and Dollar-denominated debt which could cause a huge number of defaults over the next 12-18 months.
The effects on the American economy may be soon to follow.
Russian oil drillers earn dollars for the oil exports, but spend locally in the Russian currency. That hedges their production budgets against falling crude prices. Unlike America, where producers earn and pay in the same currency.
Because of the currency move, it could be advantageous for Russia to increase production to enhance revenues and tax receipts. This would increase the supply of cheap oil and push crude prices below $45. American shale oil producers will feel the brunt of cheap oil.
They could default on their creditors (other governments like China who loaned money to the US government). But this would spark a global financial and banking crisis.
They could default on the Federal Reserve, which owns trillions of dollars of US debt. But this would create an epic currency crisis for the US dollar.
They could also default on their obligations to their citizens—primarily to future beneficiaries of Social Security (who collectively own trillions of dollars of US debt).
Or they could choose to default on their obligations to every human being alive who holds US dollars… and engineer rampant inflation.
None of these is a good option. And simply put, the US government has reached a point of no return.
Coming Summer 2015
Parents of students at a Northern California high school are fuming over the content and presenters of the sex education class offered.
It is being reported that students at Acalanes High School were treated to messaging on sex presented not by their teachers – or any teachers from the school – but by the staff of a nearby Planned Parenthood – the leader in the abortion industry.
Along with local area groups, some parents are irate that their children’s sex ed class at Acalanes High School in Lafayette is being taught by employees of Planned Parenthood without their prior knowledge. They are also fuming over the methods and materials being used, including a checklist that asks students if they are “ready for sex” and another worksheet that describes how to give and obtain consent, as well as a diagram that uses a “genderbread” person for lessons in gender identity.
The idea that their children are being taught “responsible” sexual practices by an organization that generates significant revenue from performing abortions on promiscuous teens is angrying parents.
Acalanes Union School District officials told the institute the class was not taught by teachers but rather the staff from a local Planned Parenthood in nearby Walnut Creek.
Neighborhood thief tries disposing of packages when being followed by another neighbor confronting him.
Washington, DC – (12/4/14) – This morning, President Obama hosted a “Summit on College Opportunity” with the intention of “encourag[ing] college attendance,” focusing on “supporting colleges to work together to dramatically improve persistence and increase college completion, especially for first generation, low-income, and underrepresented students.” Part of the White House’s “College Opportunity Day of Action,” the event comes on the heels of an election in which young people directly contributed to the Republican sweep of Congress.
At the Summit, President Obama said “higher education increasingly feels out of reach.” That’s true – with a youth unemployment rate of almost 15% and the average student loan debt at $30,000, the President’s higher education policies are an obstacle to our generation’s ability to realize our potential through an affordable higher education.
Generation Opportunity President Evan Feinberg released the following statement:
“A ‘College Opportunity’ Summit hosted by this Administration is a sad irony. Instead of discussing positive solutions that would increase innovation and entrepreneurship in higher education, the event doubled down on the failed status quo.
“It may sound nice to continue to artificially lower student loan interest rates and give out more money to push for more college attendance. But this year was the first in decades in which fewer students attended college than the previous year. Without real reform, we’ll continue to see college costs go up and fewer students realizing their dreams.
“Politicians should stop pandering to our generation and instead work together with us to unleash the ingenuity of our generation. We can bring a high-quality, customized education to each and every young American. Lawmakers should start by supporting accreditation reform while pursuing a broader agenda that supports education innovation.”
What these two Boynton Beach police officers did after responding to a 911-hangup call:
Officers Ward & Paramore went to a local apartment Saturday following a 911 hangup. The little girl told them she was sad because they weren’t going to have a Christmas tree this year.
What the officers did was simply #amazing #bbpdpride #givingback #makingadifference
The New York Daily News is reporting that a black militant group is planning to shoot New York police officers.
An undercover NYPD cop learned of the hit put out on officers Friday evening — three days after a Staten Island grand jury decided not to indict Officer Daniel Pantaleo in Garner’s death. Mullins confirmed late Saturday night that the gang was gunning for officers.
Union leaders ordered all officers, on duty and off, to take extra precautions.
“Please WEAR your VESTS and carry your firearm off-duty along with additional magazines,” Mullins said in an alert. “Your priority is to go home at the end of your tour!”
It is unclear whether the threat is tied directly to the Garner verdict or due to rising hostility in the black community towards police.
During the Ferguson protests, Michael Brown’s step-father ratcheted up tensions when he told the crowd to “burn this bitch down!” Shortly afterward, several local businesses were looted and/or burned down.
The Black Guerrilla Family is a militant prison and street gang also known as Black Family and Black Vanguard. The group is an “ideological African-American Marxist revolutionary organization composed of prisoners.” Which would indicate a propensity towards crime and violence.
Sources: New York Daily News - EXCLUSIVE: NYPD cops warned militant group Black Guerilla Family ‘preparing to shoot on-duty police officers’: http://www.nydailynews.com/new-york/exclusive-nypd-warned-militant-group-plans-shoot-cops-article-1.2036616  Wikipedia - The Black Guerrilla Family: http://en.wikipedia.org/wiki/Black_Guerrilla_Family
NASA’s Orion spacecraft launched successfully atop a United Launch Alliance Delta IV Heavy rocket Dec. 5 at 7:05 a.m. EST from Space Launch Complex 37 at Cape Canaveral Air Force Station in Florida. Orion’s Exploration Flight Test-1 (EFT-1), is the first flight test for NASA’s new deep space capsule and is a critical step on NASA’s journey to Mars. The 4.5 hour flight is scheduled to conclude with the splashdown of Orion in the Pacific Ocean.
Challenger Rep. Bill Cassidy(R) ousted Landrieu by a 56% to 44% vote margin in a run-off election.
Landrieu had trailed Cassidy significantly in recent polls and the Democrat campaigning machine had largely abandoned her despite her 34 year tenure as Senator.
Landrieu had been touting her seniority in the Senate as a benefit to the state of Louisiana. She had managed to get a floor vote on the Keystone XL pipeline but was unable to muster the one additional democrat vote needed to get it passed.
The democrat loss in Louisiana finishes a long string of losses for liberals in the senate during the 2014 mid-term elections.
While Obama and his loyal media tell America that the recovery is in full-swing, the rest of the nation is about to suffer another blow as the president’s energy policy causes catastrophic changes to the electricity generation industry.
According to a Fox News report:
The energy industry and coal-producing states are projecting a wave of power plant closures in the final two years of the Obama administration as Environmental Protection Agency regulations take hold.
The goal of the agency’s campaign is to cut down on carbon pollution. However, industry groups and agencies say the EPA’s demands are simply too difficult to meet and will lead to powering down many facilities — eliminating hundreds of jobs and hurting cash-strapped state economies.
In a continuing effort to pander to the whining left and live up to a pre-election promise, Obama is making sure that energy costs “necessarily skyrocket” as a way to magically make his failing green-energy investments pay off.
Solyndra was just a canary in the coal mine (how ironic that phrase is now.) The entire green energy play is too expensive for the typically American family to afford and company-after-company simply folds up after sucking in millions, or billions of taxpayer dollars.
Many Americans are living paycheck-to-paycheck as energy prices affect grocery bills, transportation costs, heating bills and just about everything else.
The President wants to make energy more expensive – at whose cost?
Possibly the one approach to getting Hillary elected no one expected… wanted .. or appreciates.
TERRORISTS are plotting to blow up five passenger jets in a Christmas “spectacular”, security experts say.
U.S. intelligence is reported to have discovered a terrorist plot to blow up at least five European commercial air liners over the Christmas holiday.
The threat is considered so seriously that U.K. officials are considering outright bans on carry on luggage or electronics in carry-on bags or on passengers.
Whitehall officials now admit that a terrorist attack is “almost inevitable” considering the number of British Jihadis returning from the Islamic State conflict.
Reports state that at least five planes have been targeted for a high-profile attack during the winter holidays.
It is suspected that Jihadists will board planes in other countries bound for Europe as many EU nations have not stepped up security as tightly as the U.S. or Israel.