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Ruble Sinks 2nd Day as Russia Faces $20 Billion Debt Repayments

(Bloomberg) — The ruble fell for a second day as Russia braced for the biggest month for external-debt repayments until at least the third quarter amid mounting political turmoil and declining oil prices. The currency depreciated 0.8 percent to 62.09 versus the dollar as of 12:03 p.m. in Moscow. Russian government bonds declined, pushing the yield on the five-year note up five basis points to 14.47 percent, the highest in a month on closing basis. Tens of thousands marched through Moscow to honor slain political activist Boris Nemtsov in the biggest show of support for Russia’s opposition in three years. About $19.7 billion of external debt for local borrowers is coming due in March, making it the most intense month for repayments since December and until at least October, according to Bank of Russia data. The amount due comes amid rising economic pressures in the nation grappling with the […]

Posted On : Published By : Tom Whipple
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The European Commission Unveils Its Energy Union Plan

The European Commission Unveils Its Energy Union Plan thumbnail Summary Europe may be on its way to finding long-term relief from dependence on Russian energy. The European Commission on Feb. 25 released its Energy Union Package of proposals designed to continue developing the bloc’s energy market and energy security. The proposals, meant to establish a European Energy Union, are more a continuation of EU energy policies than a radical departure from them. The proposals will not substantially decrease the energy supplies flowing from Russia to Europe, but they will continue to erode Moscow’s ability to dictate prices in European markets — a tool Russia often uses to achieve political ends. Some of the broader initiatives, such as the greater harmonization of energy markets, will conflict with some member states’ core national interests, weaking progress on these fronts.  Analysis The Energy Union Package can be thought of as a successor […]

Posted On : Published By : Tom Whipple
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Why Peak Oil Predictions Haven’t Come True

I’ve written about the myth of “peak oil” for at least eight years — every year brings new evidence against the prophecies of the doomsayers and yet every year their faulty premises require debunking. As I said in 2006 (“ Oil is Well: The Shortage is a Myth, and Not a New One “): “The left consistently underestimates the power of human ingenuity — given sufficient price incentives — to devise new technologies which expand supply.” The principal resource underestimated in every single dire prediction is  people — their intellect, creativity, and resilience. But of course, that other resource underestimated by so many of our friends on the left is the market : the legitimate desire of people to get ahead by solving other people’s problems. That desire incentivizes a level of creativity not often witnessed at, say, the Post Office. So here we are in 2015. What’s happening today? Just read Russell Gold’s […]

Posted On : Published By : Tom Whipple