Friday, August 22, 2014

Russia Is Pushing Back | New Eastern Outlook

The concept of “supply and demand” is a basic in economics. The rarer a commodity or resource is, the more it costs. The more abundant a resource or commodity is, the less it costs. Scarcity increases an items market value.

Oil and Natural Gas, despite government subsidies and other efforts to the contrary, are still subject to basic economic laws. The more oil and natural gas on the market, the less the cost. If the price of oil or natural gas falls, this means less profit for those who sell it.

The United States and Russia top the global oil and natural gas market. The US has just recently surpassed Russia as the top oil and natural gas producer.

The price of natural gas is in great decline due to a new innovation. The practice of hydraulic fracking, recently introduced in the US as a means for extracting shale gas resources, has created a huge abundance of natural gas. The price of natural gas is going down, threatening global markets.

In addition, oil is in over abundance. New African oil markets are also opening up. Oil and natural gas are non-renewable resources, yet the problem for the Wall Street bankers with names like Morgan and Rockfeller, is that there is too much of it. To keep the prices high, scarcity is a necessity.

The Rise of Russia and China

Russia, with its state owned natural gas company, is the top rival of the US in the natural gas market. The removal, or weakening of Russia within the world natural gas market is an economic necessity for the owners of US natural gas companies.

The Soviet Union was once the primary rival of the United States. It led a block of countries, some led by Communists, others led by Independent Nationalists, who developed independently, and broke the economic chains of Wall Street and London.

The events of 1991 devastated the USSR and Eastern Europe, causing a surge of poverty, chaos, and suffering. However, emerging from this chaos and suffering has been the nationalist government of Vladimir Putin. Russia has re-emerged from the crisis of the 90s, as an economic power. It is exporting oil and natural gas, and building an alliance with China, Venezuela, Cuba, and Iran.

Complete story at - Russia Is Pushing Back | New Eastern Outlook

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