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8/22/08 Daily News Update - Russia, Georgia, and Gas Prices

Russia, Georgia, and Gas Prices
Gas prices have been dropping because oil prices are based on speculation:
  • Bush lifted the Presidential ban on offshore domestic drilling.
  • Republicans in the House were fighting for lifting the parallel congressional ban, despite a Democrat-ordered media blackout.
  • Iraq is opening up their oil fields for the first time in decades, which should increase daily oil supply.
  • American gas consumption is down.
However, Russia makes lots of money by selling oil. When oil prices drop, Russia makes less money. So Russia invades Georgia (a country that was formerly part of the USSR), and now controls an oil pipeline that runs through Georgia. They're not pulling out. They're threatening the oil supply to make prices rise.

Given Russia is apparently planning a war against Western Europe. After the invasion of Georgia, Poland accepted the US Missile Defense Shield, which contains missiles without warheads that just intercept attacking missiles. Russia's response was to declare that by doing this Poland is now a target of Russian nuclear bombs by aligning with the West.
Read More 7 comments | Posted by Jon the legal immigrant | edit post

7 comments

  1. Jen on 8/22/08, 9:15 AM

    When did Russia get so angry? Has the been building for awhile?

     
  2. Jon the legal immigrant on 8/22/08, 9:42 AM

    My understanding is that Russia is angry that the former soviet states are choosing to associate more and more with Western Europe. With Ukraine trying to become part of the EU, and Poland accepting the US missile defense, they're losing their influence. Instead, the West with the US as the 'super power' is holding more influence.

    If you used to be a world super power and had lost not only lots of your territory but now also your influence, you'd probably be upset too.

     
  3. Jen on 8/22/08, 9:53 AM

    Yeah. It just seems like it's coming out of nowhere. Russia laid low for awhile after the fall and now they're up and invading Georgia.

    It'll be interesting to see how this turns out.

     
  4. Alice Robbins on 8/23/08, 3:23 PM

    Seeing that I live in the country that Russia is now mad at, I can say that Russia thinks that the whole falling of the wall was temporary. There is a new Czar and his name is Putin. I hope that the US will do what it promised when Rice signed the agreement. We have a part of Russia on our north east boarder.

    :)

    Russia has been mad for a very long time and the US is who caused it while freeing MILLIONS of people who do not what to live the way Georgia is now living. If Georgia falls, it will grow. No country in East Europe is strong enough to stand against the BEAR.

     
  5. Jen on 8/23/08, 4:37 PM

    The BEAR? Is that what it was called when it was still the Soviet Union?

    It's strange to think of a country as big as Russian still going with the whole "conquer and subdue" thing. Call me naive, but I don't get that.

     
  6. Jon the legal immigrant on 8/23/08, 4:45 PM

    I suppose Russia still sees them as separatist states, like China still is obsessively bent on taking over Taiwan.

     
  7. Jen on 8/23/08, 4:55 PM

    Yeah ... I guess. It'd be like if Texas left the union ... even though they have a completely different culture, we'd still think of them as part of our country. ;)

     


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8/22/08 Daily News Update - Russia, Georgia, and Gas Prices

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