Oil at $40 Possible as Market Redraws Politics From Caracas to Tehran | WHAT REALLY HAPPENED

Oil at $40 Possible as Market Redraws Politics From Caracas to Tehran

Oil’s decline is proving to be the worst since the collapse of the financial system in 2008 and threatening to have the same global impact of falling prices three decades ago that led to the Mexican debt crisis and the end of the Soviet Union.

Russia, the world’s largest producer, can no longer rely on the same oil revenues to rescue an economy suffering from European and U.S. sanctions. Iran, also reeling from similar sanctions, will need to reduce subsidies that have partly insulated its growing population. Nigeria, fighting an Islamic insurgency, and Venezuela, crippled by failing political and economic policies, also rank among the biggest losers from the decision by the Organization of Petroleum Exporting Countries last week to let the force of the market determine what some experts say will be the first free-fall in decades.

Webmaster's Commentary: 

This is precisely the outcome the US government wanted to see happen, particularly concerning Russia, and coupled with US sanctions.

I would, however, strongly caution this government to be very careful about what it wishes for here: global destabilization could well have an industrial-strength blowback for this administration, and for which it may be singularly unprepared.

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