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    Russian Economy General News: #2

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    kvs
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    Re: Russian Economy General News: #2

    Post  kvs on Mon Oct 06, 2014 1:07 am

    http://orientalreview.org/2014/09/29/massive-new-debt-hides-years-of-negative-gdp-growth-in-eu-and-usa/



    Says it all, really.

    zg18
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    Re: Russian Economy General News: #2

    Post  zg18 on Mon Oct 06, 2014 10:32 am

    Austin wrote:Falling Oil Price is a concern for lot of country not just Russia, Read the new below

    World on the brink of oil war as Opec bickers over price

    Oil price/strong dollar is dangerous to those countries that have fixed exchange rate and rely on that for their welfare, which means for every dollar less there is less exchange money in "native" currency for the budget. Russia will not have that problem because unlike the USSR it can actually devalue currency.

    Moscow is largely dependent on crude sales for foreign currency earnings and oil trading at around $80 per barrel for a period of months could bring the country to its knees.

    This , shows how much West started to believe it`s own propaganda or simply this particular journo is uneducated , Soviet Union was hit by low oil prices because it couldn`t devalue it`s currency without triggering massive inflation that was accumulated in the economy (ordinary Russians felt that when Yegor Gaidar released that inflation from the system to consumer).

    sepheronx
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    Re: Russian Economy General News: #2

    Post  sepheronx on Mon Oct 06, 2014 3:06 pm

    http://www.zerohedge.com/news/2014-10-06/why-stocks-just-wont-drop-companies-spend-almost-all-profits-buybacks

    Well well well. Isnt that dirty?

    sepheronx
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    Re: Russian Economy General News: #2

    Post  sepheronx on Mon Oct 06, 2014 4:29 pm

    Apparently there is a trade surplus (again) in Russia, which I suppose is helping increase the cobsolidated revenue. $3B to be exact. Now some are saying it is due to devaluation of currency, or that it isnt good to get such saved money due to help hurting currency, as well, they think it is due to lack of purchases from abroad.

    But what they dont seem to factor in, is import substitution is in full swing in Russia, agrculture has seen major improvement, and ultimately, businesses are fairing better due to lower value currency due to higher export and lower import.

    Austin
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    Re: Russian Economy General News: #2

    Post  Austin on Mon Oct 06, 2014 4:39 pm

    Along with devaluation they have also seen rise in inflation so devaluating your currency has its own plus and minus


    http://www.economicshelp.org/blog/1299/economics/advantages-and-disadvantages-of-devaluation/

    sepheronx
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    Re: Russian Economy General News: #2

    Post  sepheronx on Mon Oct 06, 2014 5:27 pm

    Well, technically both aspects can be controlled. For big business, lower value of currency is great because:
    - cheaper to operate
    - goods have better chance of selling more outside of the country
    - investment can go further
    - additional resource extraction in respective country can be cheaper
    - infrastructure costs can lower (depending if materials are domestic or foreign.

    Bad:
    - higher prices for average person
    - imports cost more
    - people trying to use higher valued currency rather than domestic

    The good thing is, Russia is pushing more and more into creating the products at home. As well, China sees this as a good opportunity to invest in manufacturing in Russia due to it being cheaper (same in India where currency value is even less).  Bad aspect is thay iphones will cost more. This should be prime opportunity to start making such tech goods in Russia as it will be cheaper.

    Hence why China can get away with having a currency float below.

    Inflation can hurt mainly at imports. Importing industries in Russia are getting hit hard and the oligarches behind it are pissed at Putin. But who cares about those guys, as they make.money out of nothing pretty much and are hurting local industry.

    China and Russia can also determin what the values are of their respective currency if they are not willing to trade with each other in USD. Hence why India is also interested in BRICS.

    Was read on rbth, that many industries in Russia are using their USD and other currencies to buy back stock and improving their efficiency, and thus, improved production and increased profit. So for those already in the market/field/business its great. Those starting out? Will maybe cost more unless gov steps in to prevent inflation on costs of construction and production.

    sepheronx
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    Re: Russian Economy General News: #2

    Post  sepheronx on Mon Oct 06, 2014 8:27 pm

    http://www.zerohedge.com/news/2014-10-06/obama-threatens-more-sanctions-against-zimbabwe-over-russian-platinum-deal

    As much as I am not a fan of Mugabe, what Obama is trying to do sickens me. He is threatening Zimbabwe with more sanctions unless he cancels the $3B platinum mine Russia is investing in.

    Mugabe at least told him to hang.

    GarryB
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    Re: Russian Economy General News: #2

    Post  GarryB on Tue Oct 07, 2014 2:22 am

    Free market economics... Obama style... stand and deliver...


    _________________
    “The West won the world not by the superiority of its ideas or values or religion […] but rather by its superiority in applying organized violence. Westerners often forget this fact; non-Westerners never do.”

    ― Samuel P. Huntington, The Clash of Civilizations and the Remaking of World Order

    Mike E
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    Re: Russian Economy General News: #2

    Post  Mike E on Tue Oct 07, 2014 2:36 am

    GarryB wrote:Free market economics... Obama style... stand and deliver...
    "Obama" and free market should never be used in a sentence together... - Fed would be even worse!

    higurashihougi
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    Re: Russian Economy General News: #2

    Post  higurashihougi on Tue Oct 07, 2014 6:14 am

    Mike E wrote:
    GarryB wrote:Free market economics... Obama style... stand and deliver...
    "Obama" and free market should never be used in a sentence together... - Fed would be even worse!

    Off topic but what is happening in the U.S. is not free market, but oligopoly.

    An ideal free market must have nearly perfect competition with very weak market barrier... which do not exist in the U.S.

    If only the Tea Baggers and the Republicans realized this fact.

    Mike E
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    Re: Russian Economy General News: #2

    Post  Mike E on Tue Oct 07, 2014 6:33 am

    higurashihougi wrote:
    Mike E wrote:
    GarryB wrote:Free market economics... Obama style... stand and deliver...
    "Obama" and free market should never be used in a sentence together... - Fed would be even worse!

    Off topic but what is happening in the U.S. is not free market, but oligopoly.

    An ideal free market must have nearly perfect competition with very weak market barrier... which do not exist in the U.S.

    If only the Tea Baggers and the Republicans realized this fact.
    That is what I meant... 

    Not even close, unfortunately!

    sepheronx
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    Re: Russian Economy General News: #2

    Post  sepheronx on Tue Oct 07, 2014 2:53 pm

    Russian PM urges stimulus for domestic business for import substitution

    I agree with medvedev on this. Make it easier to do business as well as easier access to resources needed for these companies to flourish is what is important right now.

    magnumcromagnon
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    Re: Russian Economy General News: #2

    Post  magnumcromagnon on Tue Oct 07, 2014 3:03 pm

    sepheronx wrote:Russian PM urges stimulus for domestic business for import substitution

    I agree with medvedev on this. Make it easier to do business as well as easier access to resources needed for these companies to flourish is what is important right now.

    I think their should be a healthy 10-25% tax credit to stimulate domestic substitution. We know from Rostec that domestic computer chip/semiconductor industry will grow 9 fold by 2020 because of this.

    sepheronx
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    Re: Russian Economy General News: #2

    Post  sepheronx on Tue Oct 07, 2014 3:17 pm

    Europe's Triple-Dip Recession Arrives: German Industrial Production Crashes Most Since February 2009

    Well, looks like the boomerang effect is really hurting EU. Seems while russian industrial production increased, EU's fell, especially Germany.

    Kerch Strait Bridge to be built despite Western pressure — Crimean leader
    Good, this bridge will help crimea badly and will reduce overall cost of travel and price of goods.

    Funny though, italy fm soon to be eu fm, claims that it needs to be stopped and the sanctions are working agaonst Russia.... wait FM, who is currently in a triple dip recession and who is having gdp growth (albeit low)? Yeah, it isnt EU.

    sepheronx
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    Re: Russian Economy General News: #2

    Post  sepheronx on Tue Oct 07, 2014 3:29 pm

    magnumcromagnon wrote:
    sepheronx wrote:Russian PM urges stimulus for domestic business for import substitution

    I agree with medvedev on this. Make it easier to do business as well as easier access to resources needed for these companies to flourish is what is important right now.

    I think their should be a healthy 10-25% tax credit to stimulate domestic substitution. We know from Rostec that domestic computer chip/semiconductor industry will grow 9 fold by 2020 because of this.

    Rostec was Russias best idea imo, much better than Rusnano, which shoild be stripped and handed over to either private sector for one part and other to Rostec.

    Rostec is helping funding major tech projects in Russia, amd linking them to businesses. They are responsible for the new companies who deal with automation and toolings in skolkovo and other regions. Pretty much, Rostec is a far better entity than most to all government intiatives.

    At this time, Russia needs to mass privatize their industries, and maybe keep some here and there jistin case. There is an economic model that focuses on internal development and privatization during times of sanctions and isolation. Thankfully, 66.6% of the rest of the world is willing to work with Russia, so this is Russias opportunity to build up other nations like US has done. Start with Vietnam and South Africa and Venezuela. More specificallu venezuela as they are having a tough time and Russia should help out economically their allies. Rich and strong ally means lots of $$$ for russian buisinesses.

    sepheronx
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    Re: Russian Economy General News: #2

    Post  sepheronx on Tue Oct 07, 2014 4:42 pm

    Russia Needs to Create Domestic Credit System to Survive Sanctions: Presidential Aide

    Pretty much translates to: why give lots of loans for foreign entities but not domestic? Give credit to domestic.

    This guy should be in charge of the CB. He seems to know what is going on.

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    Re: Russian Economy General News: #2

    Post  Mike E on Wed Oct 08, 2014 2:24 am

    Just like I predicted, Russia is reeling the German economy down... 



    I wonder how bad this will get, any more downward trends and the sanctions might be remove...

    magnumcromagnon
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    Re: Russian Economy General News: #2

    Post  magnumcromagnon on Wed Oct 08, 2014 3:11 am

    Argentina and Russia are studying options for cooperation in the gas industry

    higurashihougi
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    Re: Russian Economy General News: #2

    Post  higurashihougi on Wed Oct 08, 2014 8:06 am

    It is clear that an interrupted economical trade is NOT beneficial for any countries in this XXI century. Especially when we know that EU and Russia have been selling and buying a lot of things from each others.

    I know that every country has its own will for independence but the problem is that EU gains no independence from cutting its ties with Russia. Stabbing your own blood vessels have nothing to do with independence.

    sepheronx
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    Re: Russian Economy General News: #2

    Post  sepheronx on Wed Oct 08, 2014 2:43 pm

    It would be good if Russia can actually invest in argentina/venezuela/cuba in other fields, not just oil and gas.

    For instance: toiletry, automotive, agricultural equipment, construction equipment/materials are major in latin america and many of these nations cannot even afford the cost anymore due to US policy on them (especialy cuba and venezuela). So why not open up a pharmacuitical plant, avtovaz plant (avtovaz is the only Russian major autoplant that has done well this year, due to good quality and cheap lada Kalina and Granta), and spare parts and maintenance plant for agricultural equipment? I bet doing these will bring in lots of money to both respective countries. As well, Pharmacuiticals is one thing Russia majorly purchased from the west, even if they are active in its development in Russia. Being closer to the rainforests may be beneficial to obtaining the ingrediants needed for the medicine.

    Heck, maybe build nuclear power plant in Venezuela and they can provide cheap energy to themselves and neighbors.

    Plenty of options. Russia seems to be interested only in one field, and that is dangerous.

    kvs
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    Re: Russian Economy General News: #2

    Post  kvs on Wed Oct 08, 2014 2:48 pm

    higurashihougi wrote:It is clear that an interrupted economical trade is NOT beneficial for any countries in this XXI century. Especially when we know that EU and Russia have been selling and buying a lot of things from each others.

    I know that every country has its own will for independence but the problem is that EU gains no independence from cutting its ties with Russia. Stabbing your own blood vessels have nothing to do with independence.


    This is prima facie evidence that the EU is not free. The very meaning of free would be free to act in your interests. Anyone with a brain
    knows that it was Washington that engineered the bloody coup in Ukraine and it is the Washington backed regime that is waging war on
    Donetsk and Lugansk (and certainly not vice versa). The whole idea of sanctions against Russia over Ukraine is ludicrous. If
    there was an actual invasion of Ukraine by Russia then it would perhaps justify them (not really, since it would be quite legitimate for
    Russia to stage regime change to get Ukraine of the current scum leadership and their goons).

    I hope that the Europeans wake up and shake of the Washington yoke, but I am afraid that they are too pacified with their self-affirming
    propaganda (i.e. they are the most free and most developed in the world, blah, blah, blah). The EU and the rest of the west is some sort
    of Aldous Huxley variant dystopia. It only has a think shell of fake freedom.

    magnumcromagnon
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    Re: Russian Economy General News: #2

    Post  magnumcromagnon on Wed Oct 08, 2014 9:01 pm



    ...It seems like Southern Europeans/Balkans are predisposed to be more friendly towards Russia. If I have to make the wager on why that's the case, it probably has to do with all those historical textbooks pointing out how Russia sacrificed the most to prevent the Islamification of secular Europe, the Russian Empire did a wonderful job in flattening the Ottoman Empire, otherwise Europe would of been large steaming pile of Sharia Law, being hovered over by ISIS fly's! I think the way to weaken the Pro-Baltics faction in the EU, is to replace it with a a Pro-Balkan/Southern European faction, which should include Hungary, Italy, Bulgaria, Croatia, Slovenia, Greece, and Cyprus.

    Viktor
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    Re: Russian Economy General News: #2

    Post  Viktor on Wed Oct 08, 2014 9:30 pm

    Finally thumbsup

    Federal Law "On industrial policy" has passed the first reading in the State Duma

    AlfaT8
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    Re: Russian Economy General News: #2

    Post  AlfaT8 on Thu Oct 09, 2014 12:00 am

    Viktor wrote:Finally  thumbsup

    Federal Law "On industrial policy" has passed the first reading in the State Duma
    For a second there i though it read "federalization of CB passed the first reading in the State Duma" Wink

    sepheronx
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    Re: Russian Economy General News: #2

    Post  sepheronx on Thu Oct 09, 2014 2:33 am

    http://en.itar-tass.com/economy/753401

    So.... do nothing?

    This economic minister should be fired.

    Time and time again he proves he knows little.

    How would barring flights over Russia from EU and import tax of 2500% will hurt Russia as well? It would EU.

    This guy clearly is 5th coloumnist. Wanting to drop military cost and saying no to countersanctions? Doesnt sound like he wants to help Russia.

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