The Duopoly Just Put Taxpayers on the Hook for Trillions in Oil Derivatives

bankers-what-now-249By Ellen Brown. The sudden dramatic collapse in the price of oil appears to be an act of geopolitical warfare against Russia. The result could be trillions of dollars in oil derivatives losses; and the FDIC could be liable, following repeal of key portions of the Dodd-Frank Act last weekend. . .

[T]he shocking $50 drop in the price of oil was not due merely to the forces of supply and demand, which are predictable and can be hedged against. According to an article by Larry Elliott in the UK Guardian titled “Stakes Are High as US Plays the Oil Card Against Iran and Russia,” the unanticipated drop was an act of geopolitical warfare administered by the Saudis. . .

If the plan was to break the ruble, it worked. The ruble has dropped by more than 60 percent against the dollar since January. But it came at a cost: not only are U.S. oil producers hurt, but the derivatives banks will get killed if oil prices don’t go back up soon.

At least they would have been killed before the bailout ban was lifted. Now, it seems, that burden could fall on depositors and taxpayers [since the FDIC will now cover derivative losses due to the repeal of parts of Dodd-Frank last weekend]. Did the Obama administration make a deal with the big derivatives banks to save them from Kerry’s clandestine economic warfare at taxpayer expense?

Whatever happened behind closed doors, we the people could again be stuck with the tab. We will continue to be at the mercy of the biggest banks until depository banking is separated from speculative investment banking. Reinstating the Glass-Steagall Act is supported not only by Elizabeth Warren and others on the left but by prominent voices such as David Stockman’s on the right. (Read more from this story HERE)

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Vladimir PutinRussian Economy Shrinking

By Nataliya Vasilyeva. MOSCOW (AP) — The Russian currency extended its losses on Monday after a report showed the economy has started shrinking in annual terms for the first time since 2009 as the country is buffeted by falling oil prices and Western sanctions.

Meanwhile, the government, which has been scrambling to support the ruble and the economy, announced fresh steps to keep the banks afloat.

The ruble has been one of the world’s worst performing currencies this year and was down another 5 percent on Monday, trading at 56 rubles per dollar in early afternoon in Moscow, wiping off some of the gains it made last week.

The fall came as the Economic Development Ministry issued a report showing the economy shrank by 0.5 percent in November compared with a year earlier. The ministry attributed the year-on-year decline in the economy, Russia’s first in five years, to a sharp drop in manufacturing and investment. (Read more from this story HERE)

  • Mark

    Amazing. If someone screws with your savings it’s just as bad as screwing your wife, children and dog. I’m not a big fan of the French but the guillotine did work. Just saying……

  • georgev

    This is the reason the Russians hate the US. We continue to screw around with countries economies and take them down. All the while our politicians publicize that we are saving the worlds economy. Truth be told they are robbing us and controlling countries economically that won’t play their game.

    • Kent2012

      too bad that you have the truth turned around backwards….do you work for g soretoes ??

  • J. Jones

    It’s about time the dollar became worth something.

  • DRILL BABY DRILL. GET THAT GAS DOWN TO ONE DOLLAR A GAL. AND KEEP IT THERE. MORE WELLS, EXPORT THAT MADE IN USA CRUDE. FUNNY HOW THE COMMUNISTS WANT HIGH OIL PRICES.

    • speedle24

      The problem is we can’t drill and sell oil at $1.00 a gallon (or anything close to that). I can’t say I understand the basis of this piece and the global economic implications. This is very complicated. If the price of oil is not at a minimum level, we are going to have problems in this country as well.

  • GAS IN KUWAIT USED TO BE ELEVEN CENTS A GAL. IN NOV OF 1998 OIL WAS TEN DOLLARS A BBL.WE CAN SEE GAS IN THE USA AT A DOLLAR A GALLON PUMPED BY AN ATTENDANT. THIS IS NOT EUROPE. THIS IS THE GREAT USA. THE HOME OF CREATIVE ENGINEERING AND INVENTION. WE CAN ACCOMPLISH ANY GOAL WE PUT OUR MINDS AND BACKS TO. JUST KEEP THE GOVERNMENT TAX LEECHES OUT OF THE WAY AND THE COMMUNIST EPA.

    ALREADY THE OBAMUNISTS ARE PLANNING TO TAX THE PRICE OF GAS BACK UP. YOU DID NOT EARN A LIVING THE GOVERNMENT EARNED THAT LIVING. THE TIME FOR PARTISAN POLITICS IS OVER. NO MORE ASS KISSING. COMMUNISTS LOVE COALITIONS. AMERICANS WANT THEIR FREEDOM BACK. STARTING WITH LOW OIL PRICES. DRILL BABY DRILL.

    BLOG TALK RADIO.COM SPIRIT OF AMERICA PARTY