Thursday, April 3, 2014

Commodities Traders - Food for Thought

Ukraine buys almost all its energy (natural gas) from Russia. Revenues from natural gas sales are a primary source of income for Russia.


Because of the recent disagreement between Ukraine and Russia, Russia is raising the price of natural gas it sells to Ukraine.


Ukraine is almost broke and can’t afford the increase in the natural gas price because it would be forced into bankruptcy.


Obama (the USA) just announced the United States is giving Ukraine $1 billion to assist in paying for the higher priced natural gas it buys from Russia.


So, the United States is actually giving Russia $1 billion because the money is just passing through Ukraine.


The first question: Has Putin figured out a way to raise the price of his natural gas sales and make the U.S. pay for the increase?


Next question: Was he really in the KGB or was he a commodities trader?


If this analysis is accurate, Putin just got Obama (the USA) to pay him $1 billion by holding a press conference and trucking some troops across town from the Russian Navy base in Ukraine.


Who is the smartest guy in the room now?




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