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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 437.23+3.8%Jan 20 4:00 PM EST

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To: Riskmgmt who wrote (38245)8/10/2008 11:25:20 AM
From: elmatador  Read Replies (1) of 219578
 
The importance to study the Russo-European-Caucasus case flows from the fact the impact on trade and money movement.

Trade:
Ukraine wanted to boost grain production and profit form proximity to the markets, thus undercutting other producers with higher cots shipping. Political instability in the region undermines that goal as investments do not flow in. That benefits traditional grain producers in stable areas of the world.

Money: Investment in developing Caucasus infrastructure, to tap into the energy riches is now further undermined by the instability of that region. Therefore adding to the lifting costs of the gas and oil there.
You need to pay for a task force to be floating in the area to guarantee the oil and gas coming.

In short: the whole region being Iranianized!

That benefits the areas of the world that are stable even if the energy sources are more expensive: pre-salt oil, Oil sands and bio-diesel to name a few.
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