No doubt by now, you've heard of the problems in Russia with its currency. You have to say to yourself, "a 17% return on my money sounds pretty good," but when the ruble sinks more than that in one day, you say, "WHOA, will I get my money back?" And that my friends is Russia’s Achilles' heel right now, as investors ponder whether they going to get their money back before capital controls are put in place.
If you didn't think commodity markets are important, think again. The correlation between the collapse of the Russian ruble (CME:6R.Z14.E) and the collapsing oil market is extraordinary and I will illustrate it for you in today's video.
Who knew that Saudi Arabia alone could, in essence, break the Russian economy almost in half, not with tanks and bombs, but with a commodity called crude Oil (NYMEX:CL.F15.E).
Saudi Arabia has continued to push production from its vast oil fields in order to lower the price of oil and make it difficult for competitors to stay in business. One of the amazing side effects to all this is the fact that Saudi Arabia has basically ripped the guts out of the Russian economy and its cash cow, crude oil. [Read more...]