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Sunday, September 17, 2006

Harbinger of Terror: Russian Market Down Over 6% in 10 Days


As RTS data shows above, the Russian stock market has taken yet another nosedive. After having held steady at 1650 for nearly two weeks, the RTS Index plunged 100 points to 1550 over the last ten days, and in fact got a bit below that level before recovering. As the price of oil has fallen and the price of gas at the American pump dropped significantly, the Russian stock market, wholly dependent on oil, has suffered. Without oil, there is no real value in the Russian market at all. In other words, it is directly in the interests of investors in the Russian stock market to see turmoil in the Middle East, jacking up oil prices and protecting their investments. Thus, we should not be surprised to see Russia's corporatist Kremlin fomenting that turmoil by giving diplomatic cover to Iran while supplying them nuclear technology and by supporting the Hezbollah and Hamas terrorist organizations. Could Russia be supporting terrorist activity in Iraq? We can't be sure yet, but Russia not only opposed the Iraq invasion it provided U.S. military secrets to Sadaam while it was in progress, costing American lives. This is the signal hallmark of the New Cold War. We should not be surprised to see new outbreaks of instability and terror in the Middle East as the Russian market continues to plunge.

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