Russia and the Saudis are driving up oil and diesel prices. But these moves are likely to undermine the rouble more than they undermine the dollar, euro, and other major currencies. Therefore, higher energy prices will rebound on the Russians this winter: if they shiver in Germany, they will freeze in Russia. If the dollar is king of the fiats, the rouble is just a lowly serf. There is little doubt that Putin and his advisers are aware of this problem. Plan A was to introduce a new gold-backed BRICKS currency which might be expected to weaken the dollar and euro relative to the rouble. Plan B was more drastic: to ... (full story)