alstry (35.68)

Social Unrest Spreading????

December 19, 2008 – Comments (2)

We all know about Southeast Asia/Pacific Rim countries, and Haiti and African countries.....but Greece, Argentina, and Iceland???????

And now Russia(from the WSJ)...........

BARNAUL, Russia -- Russia's oil-fired economic miracle is unraveling as industry shrinks and job losses mount. Now the first stirrings of social unrest have the Kremlin groping for a response.

Gloom deepened over the outlook for oil-export revenue, Russia's main earner, as prices plunged Thursday despite OPEC's move this week to deeply cut production. Oil hit a 4½ year low on anxiety about falling global demand, with crude closing at $36.22 a barrel in New York, down $3.84. This could spell trouble for Russia, which has pegged its 2009 budget on much higher oil prices, meaning it will have to trim spending. (Please see related article on Page C1.)

The drop in oil prices is eroding the Kremlin's ability to replenish its gold and foreign-currency reserves just when it needs them most. Although the country's reserves are the world's third-largest behind China and Japan, it has been spending tens of billions of dollars in an attempt to prop up its falling ruble and stave off public panic. 

I know its the holiday season so time to go spend some time in my son's classroom.

Simply this, we are all confused..........but if you ignore the facts........the facts often come back to bite you right where it counts.  Alstry never ignores the facts.