Ukraine crisis oddities: Tycoon George Soros wants US to crash oil market

The US government already sold 5 million barrels as a subtle hint a little over a week ago.

Selling oil from the strategic oil reserve would hurt the USA more than anything else in the long-run. After that’s gone, what else would America have to fall back on during a crisis? At a time when Russia could trade oil in any other currency but Dollars in retaliation, sending the US economy back into the stone age, would such an action with limited effect be worth it? If the Dollar is dead and there is no strategic reserve, then what? Soros, who nearly killed the British economy overnight, and is a convicted felon in France, does not have the best interests of the country in mind. People like Soros are smarter than this and know the likely outcome(s) for their actions, and given his past record, could most likely sparking an intentional attack on the U.S. from within via provocation with Russia.

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The infamous speculator, oligarch and political activist George Soros published a plan designed to “punish” Russia for its actions in Crimea and Ukraine. According to Soros’ plan, Washington has to crash the oil market in order to hurt the Russian economy.

While the “Soros plan” looks good on paper it is nothing more than wishful thinking. According to the latest official data, the US Strategic Petroleum Reserve currently holds 695.9 million barrels of crude oil. At the same time, according to International Energy Agency the world’s global oil production was equal to 84.82 million barrels of oil per day in 2012. It is easy to see that the whole Strategic Reserve is equal to just 8,42 days of global production. Russia produces around 10.9 million barrels of oil per day so, the US, even if it dumps all of it reserves in the market, will be able to replace around 64 days of Russian production. Therefore, simple math shows that any price change induced by such radical action will be very short-lived and will last several months, at most. Given Russia’s currency reserves such a move will not cripple the country’s economy and will not have a dramatic impact on its budget. However, the obvious retaliation from Moscow is likely to affect the US in a serious manner. Both Sergei Glazyev, presidential advisor and Alexei Ulyukaev, Russia’s minister of economy, hinted that Moscow will liquidate its dollar-denominated currency reserves and switch the country’s oil and natural gas trading to other currencies, therefore severely reducing the demand for American currency outside the US. The ‘nuclear option’ for retaliation would be switching the Russian oil and gas trade to gold in order to unravel the long-going manipulation of the gold prices orchestrated by the US Federal Reserve and banks like Goldman Sachs.

The idea to hurt Russia’s oil revenues for a three or four month period may be tempting for Washington but it is unlikely that the US leadership will be ready to bear the risk of wrecking the dollar-based financial system just to create a minor inconvenience for Russia.

Full article: Ukraine crisis oddities: Tycoon George Soros wants US to crash oil market (The Voice of Russia)

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