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    Russian Economy General News: #6

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    Austin
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    Re: Russian Economy General News: #6

    Post  Austin on Mon Jan 18, 2016 7:35 am

    Russian Deputy Finance Minister Sergei Storchak says no question of going to western market with Bonds unless sanction are lifted , also he says going to China market also runs the risk of buyer of Russian Bond Ending with Russian Sanction

    Storchak: Russia will not borrow in foreign markets, while the sanctioned

    http://ria.ru/economy/20160118/1361254081.html

    Storchak did not rule out a return to the external debt market Russia can realize through the Asian markets. "It could be China," - he said. But even in this case, have to wait for removing existing restrictions, because otherwise the sanctions can get Russian buyers of bonds, said the deputy minister.

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    Re: Russian Economy General News: #6

    Post  Austin on Mon Jan 18, 2016 7:36 am

    Storchak: Russia can not yet afford to lend to new countries

    http://ria.ru/economy/20160118/1361254138.html

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    Re: Russian Economy General News: #6

    Post  Austin on Mon Jan 18, 2016 9:57 am

    Read it in full

    Russia’s Finance Ministry doesn’t enter global debt market due to sanctions — official

    http://tass.ru/en/economy/850244

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    Re: Russian Economy General News: #6

    Post  Austin on Mon Jan 18, 2016 11:00 am

    IF getting money via bond is not feseable why cant they just loan money from Central Bank which has $360 billion , A loan of $30 billion for 3 years or $ 10 billion per year can be used for budget purpose investment etc ?

    Is that feseable kvs ?

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    Re: Russian Economy General News: #6

    Post  Austin on Mon Jan 18, 2016 6:00 pm

    Russia’s current account surplus rose by 12.7% to $65.8 bln in 2015 — Central Bank

    http://tass.ru/en/economy/850397

    Yamal LNG Project received $15 bln of investments — Novatek CEO

    http://tass.ru/en/economy/850457

    Neutrality
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    Re: Russian Economy General News: #6

    Post  Neutrality on Mon Jan 18, 2016 6:36 pm

    JohninMK wrote:- interest rate hike only came after the oil price had dropped from over $100 to well under $50, also although the notional rate is higher it does not seem to have had much actual effect.

    No, that's exactly why oil went from $100 to $60. The stock markets knew well in advance that the Fed would hike interest rates. Traders always know things well in advance thanks to financial analysts.

    there does not seem to be much evidence of 'shorting' having a major effect on the oil price drop.

    There is: http://www.bloomberg.com/news/articles/2015-12-22/extreme-oil-bears-bet-on-25-20-and-even-15-a-barrel-in-2016

    Investors buy put options not only to bet that prices will drop, but they also take them as insurance. For example, long-only equity investors, which buy the stock of companies such as Exxon Mobil Corp. and Royal Dutch Shell Plc, often hedge their portfolios by buying put options that will profit if prices drop.

    overproduction, definitely. US production has increased dramatically over the past few years and was starting to affect all kinds of players. Both Saudi and Russia have, regardless of price, stepped up production to get as much revenue as they can.

    The shale boom in the US is dead. Businesses are folding left and right. People are being massively laid off. Just pay attention to the statistics that the EIA reports on every Wednesday. Last week saw the highest drop in rig count since March 2015. Read this: http://www.forbes.com/sites/arthurberman/2016/01/11/big-drop-in-rig-count-points-to-capitulation-by-u-s-shale-drillers/#2715e4857a0b25794fb962da

    Then there is
    - the rumoured Saudi/US price drop attack on Russia that kind of started it off. It now looks more likely that the covert Saudi target for initiating this move was not Russia but the US shale operation that it wanted to kill as a competitor. This looks as if it is working with shale prospecting and start ups stopped and many producers heading for default as they can't repay loans. This is forcing the Dallas Fed to start easing conditions on banks to protect the banks.
    - the world's strategic storage for bulk crude and downstream products is just about full, reducing demand
    - warm weather in some markets has reduced the winter demand in some markets
    - the world has entered recession, sea cargo traffic is very low with almost nothing moving in the Atlantic for example also reducing demand.

    The Saudis have royaly screwed themselves with their strategy. Yes, their strategy to put shale companies out of business in the US is working but they miscalculated Russian output. They expect Russian production to go down as prices went down. Only thing they forgot is that the biggest fields in Siberia were developed back in the Soviet days and thus the cost/barrel is extremely low (some fields break even at $5/barrel) today. Sure, the Saudis are sitting on large amounts of dollar reserves but it's going to vanish very fast at this pace.

    All in all, predatory pricing by the biggest producer, increased production and reduced demand have done in the oil price, probably for years. As you say more crude released by Iran will have an effect, but probably not too much as their infrastructure needs huge investment to get back to the 'old days. Watch out for investment for oil deals, as opposed to pure oil sales, over the next few months.

    Call me crazy but I really think that lifting the Iranian sanctions was a way to hurt back the Saudis. That also might explain their expanded war against Shias in the Middle East. Hurt Iran where it's possible and force them to bleed resources on Shia groups.

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    Re: Russian Economy General News: #6

    Post  zg18 on Mon Jan 18, 2016 7:50 pm

    http://uk.reuters.com/article/russia-economy-capital-idUKL8N1522RH?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews

    Capital outflow down 2.7 times to $56.9bn vs $153bn in 2014

    Current account surplus $65.8bn, up 12% y/y - CBR


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    Re: Russian Economy General News: #6

    Post  sepheronx on Mon Jan 18, 2016 8:36 pm

    Austin wrote:IF getting money via bond is not feseable why cant they just loan money from Central Bank which has $360 billion , A loan of $30 billion for 3 years or $ 10 billion per year can be used for budget purpose investment etc ?

    Is that feseable kvs ?
    Well, your link above essentially points to that direction, but 11% interest rates (if that is what the rates they get,  may be lower like 8%) is a lot of interest.

    Then again, credit cards here are like 19% interest.  But borrowing trillions of rubles will make the interests a real pain.

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    Re: Russian Economy General News: #6

    Post  medo on Mon Jan 18, 2016 9:26 pm

    I really don't get it, why all this panic about Russian economy. Their foreign exchange surplus is growing, Russia export of finished products is growing and imports are falling. Russian economy inside Russia is payed by Rubles and domestic production is payed by Rubles. Russia still get more foreign currencies from export, than what they have to pay outside. Russian state budget is in Rubles, so no need to take foreign credits. With growing industrial production and tourism, they will collect needed money with taxes even if prices for oil and gas go down. Russia would be in big crisis only if Russia is fully dependent on imports of food, energy and raw materials. But Russia is not dependent on imports, but is an exporter of all those materials, so nothing to worry about.

    Not taking new credits and paying off existing debt is the best for any state and Russia is one of the rare states, which could do that. Paying off debt also lower the prices on products and make them more concurent. Western states could not survive without taking new credits and paying off their existing debts. This make their products even more expensive. Don't forget, that lowering of the debt also mean less to pay off per year. In 2016 Russia have to pay around 60 billions $ of debt comparing to around 100 billion $ in 2015 and around 120 billion $ in 2014.

    kvs
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    Re: Russian Economy General News: #6

    Post  kvs on Mon Jan 18, 2016 11:23 pm

    zg18 wrote:http://uk.reuters.com/article/russia-economy-capital-idUKL8N1522RH?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews

    Capital outflow down 2.7 times to $56.9bn vs $153bn in 2014

    Current account surplus $65.8bn, up 12% y/y - CBR


    Don't you just love the game with definitions. Designed to throw sand in your eyes. The $153 billion figure for
    2014 includes $130 billion in foreign debt repayment/retirement. The volume of this pay down is smaller in 2015.
    The actual direct investment into and out of Russia has been posted before. It is much smaller volumes.

    I do not think it is valid to call debt principal repayment "capital flight". It is liability reduction.

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    Re: Russian Economy General News: #6

    Post  kvs on Mon Jan 18, 2016 11:35 pm

    Austin wrote:IF getting money via bond is not feseable why cant they just loan money from Central Bank which has $360 billion , A loan of $30 billion for 3 years or $ 10 billion per year can be used for budget purpose investment etc ?

    Is that feseable kvs ?

    It is feasible. The Central Bank can do what every other such fiat institution does and lend 10 dollars for every 1 dollar of actual deposits it
    has. So the CBR can loan out $3.6 trillion. The problem, as pointed out by seph, is that the interest rate is too bloody high. So the debt
    servicing costs are too much.

    Considering how the USA printed money out of thin air, Pancho Villa style, during its multiple QE rounds, the Russian government can pass
    a law allowing itself to take zero interest loans from the CBR. But this will prompt a windstorm of anti-Russian financial propaganda that
    will try to paint Putin as Pancho Villa. Various 5th column merchants will jack up their prices in a coordinated attempt to ignite inflation.
    America does not have 5th column businessmen or politicians.

    Also, the Russian economy is not saturated with rubles. So "printing" them should not drive inflation until the economy becomes
    saturated and their availability is excessive. I posted before that most of the "inflation" in Russia is structural transaction and pricing
    adjustment in sectors such as the military industry. The economy has not fully monetized even after 25 years. If the inflation was driven
    by consumer products such as food, then Russia would have had food prices several times higher than the EU by now. Recall, that food
    prices in Russia reached western levels back in the 1990s.

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    Re: Russian Economy General News: #6

    Post  Big_Gazza on Tue Jan 19, 2016 4:31 am

    kvs wrote:I do not think it is valid to call debt principal repayment "capital flight".   It is liability reduction.

    100% correct, but the presstitutes in the Western ponzi-financial-scam-hiding-in-a-capitalist-shell are complicit in the attempt to disguise the facts and prevent the Western sheeple from realising the truth.

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    Re: Russian Economy General News: #6

    Post  kvs on Tue Jan 19, 2016 4:42 am

    Big_Gazza wrote:
    kvs wrote:I do not think it is valid to call debt principal repayment "capital flight".   It is liability reduction.

    100% correct, but the presstitutes in the Western ponzi-financial-scam-hiding-in-a-capitalist-shell are complicit in the attempt to disguise the facts and prevent the Western sheeple from realising the truth.

    Unfortunately it is the CBR that is peddling this definition, as it is the standard accepted one, and not just the media.
    The CBR already puts out the data on investment flows. It should stick to that. Including debt repayment in the
    "capital flight" category is contradictory, it makes it seem like the loans were investments. People do not think of
    bank loans when they think of investments. They think, correctly, that it is some sort of risk taking capital activity.

    The lack of effort to sum up the long term costs (e.g. from foreign borrowing) in these categories is rather absurd.
    The GDP may be stimulated in the short term from a loan, but there is a negative long term contribution that, depending
    on circumstances, may more than cancel any positive effect. This is the case with many 3rd world countries who end
    up being debt colonies and see little benefit from the loan money (thanks to corruption and whatnot).

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    Re: Russian Economy General News: #6

    Post  PapaDragon on Tue Jan 19, 2016 3:36 pm


    Great article by Alexander Mercouris, I marked two bits I find most interesting:


    Russia's Economy in 2015 Rolled With the Punches


    Contrary to the doomsayers the country has coped with the oil price and other blows well

    http://russia-insider.com/en/business/russian-economy-2015/ri12274

    By good chance, Jon Hellevig’s recent discussion of the state of the Russian economy has coincided with publication of a slew of information about how it performed in 2015.

    This information bears out what Jon Hellevig has said.

    The overall GDP decline is put at between 3.8% and 3.9% (the final figure has not yet been published).  

    Industrial production fell by 3.5%, which is not surprising given the fall in demand and the high interest rates. It appears to have stabilised in the second half of the year.  

    Agricultural output is responding dynamically to the opportunities offered by the rouble’s devaluation and the food sanctions, and is increasing rapidly.

    At 104 million tonnes the grain harvest was very slightly below the previous year’s record harvest of 105 million tonnes - a fact entirely down to weather factors.  

    Individual farm sectors such as pork, poultry and vegetables are however expanding rapidly and in some cases are showing double digit growth.  

    Since the food import ban on EU produce was imposed in the summer of 2014 production of beef and potatoes has increased by 25%, of pork by 18%, of cheese and cottage cheese by 15%, of poultry meat by 11%, and of butter by 6%.

    Last year’s vegetable harvest was also a record, with output overall growing by 3%

    The picture is not uniformly good. Milk production apparently is still lagging. However overall at this rate of expansion it is likely that Russia’s objective of achieving food self-sufficiency by 2020 will be achieved.

    Inflation was 12.9% over the whole year - lower than most of the forecasts that circulated towards the end of the year - and appears to be falling fast as the economy rebalances after the effect of the devaluation.  

    It was apparently running at an annualised rate of just 12.3% in the first two weeks of January, causing Economics Minister Ulyukaev to revise his previous pessimistic forecast that inflation would only fall to single figures in the second half of 2016.  He now says it could fall to that level as early as the end of February.

    The rapid fall in inflation in the last months of 2015, and its continued fall in the first weeks of 2016 despite the further fall in the rouble, shows the impact on inflation of the collapse in imports (down by around a third from the total of the previous year).  

    As Jon Hellevig says, it is the constant rise in import prices that accounts for a large part of Russia’s inflation - a consequence of the degree of penetration that imports - especially food imports which are especially subject to price fluctuation - have achieved in the Russian economy.  

    With imports collapsing this factor is rapidly diminishing - exactly as would be expected in an economy that is rapidly rebalancing.

    This is nowhere more clear than in food prices. Food price inflation in 2015 at around 20.2% was much higher than overall inflation, which was 12.9%.  

    The steep increases in food prices was directly linked to the one-off surge in the cost of food imports caused by the devaluation and the effect of the food import ban.  

    As this factor diminishes, with food imports either banned or priced out of the market (food imports fell by around 30% in 2015 and are likely to fall further in 2016) and with imported food increasingly replaced on the Russian market by domestic products as Russia moves towards food self-sufficiency, the rate of food price inflation will fall, and will continue doing so in future, irrespective of what happens to the rouble. Indeed judging by the decline in inflation this effect is already underway.

    Unemployment in Russia in 2015 remained low at 5.8% in November. Liquidations have been surprisingly few, home foreclosures are hardly in evidence and the level of non-performing loans has remained low. So far this has been purely an output recession.

    The explanation for the low rate of unemployment despite the recession is almost certainly the cut in real incomes, which means that workers are not pricing themselves out of the labour market.

    In some countries the combination of a high rate of inflation and a low level of unemployment would threaten a wage-price spiral - often accompanied by a wave of strikes - as workers fight to defend their living standards. I can remember precisely that happening in Britain in the 1970s.

    There is no sign of anything like that happening in Russia - a sign of a disciplined and financially solvent workforce - rather like the one in Germany - and of a flexible labour market.

    Russia’s dollar denominated trade surplus narrowed by 23% to $145.6 billion - a direct consequence of the oil price fall.  However the surplus on the current account actually increased to $65.8 billion.

    The explanation for the improvement in the current account despite the fall in the dollar denominated trade surplus is the steep fall in capital outflow to $56.9 billion - down from a record $151.5 billion in 2014.

    The fact that in most years Russia has capital outflow is an endlessly rehashed trope of the Russian economy’s critics despite the fact that as a matter of simple arithmetic an economy that runs a large trade surplus would normally expect to see a capital outflow.

    I notice that as Russia’s capital outflow has fallen the subject has stopped being talked about.

    The very large figure for capital outflow in 2014 is connected to the heavy foreign debt repayments that fell that year, which Russian banks and companies were unable to roll over despite the oil price fall because of the sanctions.

    It was the very heavy debt payments in 2014 - and the resulting capital outflow - that caused the rouble in 2014 to fall at a faster rate than oil prices - despite the efforts of the Central Bank to stem the fall - leading to the collapse in December of that year.

    The steep fall in capital outflow since then suggests the major period of foreign debt repayment is now over.  

    The result is a marked fall in pressure on the rouble. Whereas on 17th December 2014 it fell to a low of 80 roubles to the dollar on a price for Brent crude of $58.70 a barrel, today (18th January 2016) as of the time of writing it is trading at just below this price despite a Brent crude price of under $28 a barrel.

    It is this fall in pressure on the rouble, which explains why - in contrast to 2014 - the Central Bank has not so far felt the need to support the rouble with foreign currency interventions or further interest rate rises.  

    It also explains why - contrary to some predictions - the Central Bank’s foreign currency reserves have remained steady at roughly $360-370 billion since they hit that floor at the end of the first quarter of 2015.

    Last but not least, the fall in the level of foreign debt payments undoubtedly explains the relaxed attitude of the Russian authorities to the rouble’s renewed fall since the summer. With fewer debts to pay and the effect of the rouble's fall on inflation subsidising, the authorities can afford for the moment to remain calm.  

    Unfortunately if the events of December 2014 show anything it is that there is no room for complacency where oil and the rouble are concerned.  

    As oil falls towards $25 a barrel and possibly even lower, the Central Bank has acted to steady nerves by saying it stands ready to raise interest rates if the rouble crashes again  
    It is to be devoutly hoped this does not prove necessary, but saying it should make it less likely.

    The Russian budget deficit, about which so much ink is being spilled, turned out in 2015 to be just 2.6% of GDP - below the government’s final predictions.

    This compares with a budget deficit of 2.5% of GDP in the US  - during a “recovery” and after 6 years of improvements - and a budget deficit in the UK believed to be roughly 4.9% of GDP (final figures not yet available) - also during a period of “recovery” and following 6 years of “austerity”.

    The fall in the oil price is expected to result in a higher deficit this year, though it is impossible as of the time of writing to say by how much.  

    Putin has insisted that the budget deficit must not grow above 3% of GDP and already the government is looking at spending cuts to bridge the gap.  

    Most people think the budget deficit will in the end turn out bigger than Putin’s target of 3% of GDP if oil prices remain below $50 a barrel - which is likely but not certain - but any prediction at this point of the total size of the deficit can only be a guess since so much depends on the overall performance of the rest of the economy - with a return to growth leading to a lower deficit because of higher tax receipts.

    Assuming a - very improbable - worse case scenario of a budget deficit of 5-6% of GDP, is it really true as many seem to think that Russia will struggle to finance it?

    The US and the UK have financed much larger deficits despite having no financial reserves and having a government debt to GDP ratio of - in the US’s case in excess of 100% of GDP - and in the UK’s case in excess of 80% of GDP.  

    Russia not only has substantial reserves in its Reserve Fund - almost certainly enough to fund the deficit fully this year - but has a government debt to GDP ratio of just 18%.

    Russia also runs large trade surpluses and large surpluses on its current account. By contrast the US and UK run large deficits on both.

    In light of all this it is difficult to understand all the alarm.

    It is no doubt true that the US and UK can raise funds to cover their deficits far more easily than Russia can though the common claim used to explain this - that neither country has ever defaulted on its debt - is simply untrue.

    However this misses the point that Russia - with minimal existing interest payments, a far smaller budget and a small deficit - has no need to raise funds on anything like the scale the US and UK do.

    Let me repeat again, since the point does not seem to have been grasped (see for example this article by Ben Aris) that the sanctions do not prevent Russia from borrowing in the international money markets and it is debatable whether - short of a declaration of war or the imposition of UN Chapter VII sanctions - it is legally or technically possible to prevent Russia from doing so.

    Jacob Dreizin may be more correct when he says the sanctions may deter some people from buying Russian government debt, but - given that there is no legal reason why they should not buy it - that is very debatable and is in my opinion almost certainly wrong.

    My view on the contrary is that given the exceptionally strong underlying position - the government’s early repayment of its 1990s debt, its very low level of current debt, its minimal current interest payments, Russian companies’ success in repaying their existing debt despite low oil prices and sanctions, and the Russian government’s well-known determination to keep its deficit under control - many potential buyers will see Russian government debt - despite its absurdly low rating - as a safe and (because of the high interest rates) attractive investment.

    Certainly that seems to be the opinion of the Central Bank, which has made it clear that it prefers the government to borrow the money to pay the deficit rather than try to finance the deficit out of the National Welfare Fund, which is intended to finance the payment of pensions.

    Personally, as I have said previously, I don’t think it will come to that. Putin is determined to avoid borrowing if he possibly can and - unlike Ben Aris - I am sure he will make the necessary economies and even cut defence spending if he has to in order to avoid having to do so - though I should quickly add in the case of cuts to defence spending I doubt it will come to that either.

    Which brings me to the key point.

    One of the best things about Jon Hellevig’s discussion is that it completely ignores the sideshow of the Russian budget, and concentrates on the thing that really matters - which is interest rates.

    It is the sky-high interest rates that pulled the economy into recession in 2015, and it is the still very high interest rates which are prolonging the recession now.

    With inflation falling rapidly, bank balance sheets largely - though not completely - repaired, and foreign debt substantially paid off, the one thing that is preventing further cuts in interest rates are worries about the rouble.

    Whether those concerns are justified or are sufficient to justify keeping rates as high as they are at present is another matter. Jon Hellevig - who is far better informed about the Russian economy than me - thinks not.

    The key point is that sooner or later - and now almost certainly sooner rather than later given that there simply isn’t much room left for further falls - both oil prices and the rouble will find their floor.  

    When that happens interest rates will fall as inflation - the other reason for keeping interest rates high - is already in the process of a fall.

    At that point - with the two factors - inflation and interest rates - that chiefly caused the recession out of the way, the economy will move from its present position of rough stabilisation back towards growth.

    When that happens, for the further reasons Jon Hellevig says, growth is likely to be both rapid, and sustained for a long time.

    max steel
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    Re: Russian Economy General News: #6

    Post  max steel on Tue Jan 19, 2016 9:48 pm

    Russia is such a 'gas station of a country' that it's #12 in Bloomberg's Innovation Index just behind the US, but ahead of the UK.


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    Re: Russian Economy General News: #6

    Post  Werewolf on Tue Jan 19, 2016 10:01 pm

    How this shit index is so biased towards israel, such a pathetic small country and ranks so high with absolutley nothing and stays above countries like Russia...sure jewish source.

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    Re: Russian Economy General News: #6

    Post  Walther von Oldenburg on Tue Jan 19, 2016 10:20 pm

    South Korea ranks 1st. Does it mean the index is controlled by Koreans? Rolling Eyes

    And two places ahead of Israel there is a country called Denmark which is smaller in population. Does it mean hat the Danes control Blomberg?

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    Re: Russian Economy General News: #6

    Post  Werewolf on Tue Jan 19, 2016 10:23 pm

    Walther von Oldenburg wrote:South Korea ranks 1st. Does it mean the index is controlled by Koreans? Rolling Eyes

    And two places ahead of Israel there is a country called Denmark which is smaller in population. Does it mean hat the Danes control Blomberg?

    Retarded comments from a jew what will we get more?

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    Re: Russian Economy General News: #6

    Post  Walther von Oldenburg on Tue Jan 19, 2016 10:27 pm

    So you don't see the 10 countries that are ahead of Israel including tiny(ish) Switzerland, Finland etc. ?

    All 11 places are occupied by Israel?

    BTW Israel has 2nd largest spending on R&D as % of GDP in the whole world (after, quite unsurprisingly, South Korea) so all that money is going to give some good results.

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    Re: Russian Economy General News: #6

    Post  kvs on Tue Jan 19, 2016 10:56 pm

    max steel wrote:Russia is such a 'gas station of a country' that it's #12 in Bloomberg's Innovation Index just behind the US, but ahead of the UK.


    What a retarded index. So it actually has "productivity" as part of this ad hoc contrivance. Gee, I wonder how they measure
    that and how it is relevant for innovation. For real, people, this is epic BS. If I invent a better rail gun, how can I crank up the
    productivity? At best, rail guns are boutique items with poor economies of scale in their production. They may not even be produced
    in any quantity until a war is looming on the horizon. They are not mass market consumer items.

    People always fall for such ludicrous metrics. It is the same shit as the "Corruptions Perception Index" by "Transparency International".
    WTF do I give a care about what is perceived by western MSM and its consumer drones about Russian corruption. You can see all
    the unfinished, endlessly ongoing highway construction in India which is a hallmark of corruption. And the $14 billion in food
    aid stolen by corrupt local politicians and their mafias. Yet somehow India is vastly less corrupt than Russia where no such instances
    can be found. And in fact, you have Sochi Olympics venue plus infrastructure and the Vostochny Cosmodrome. Being completed
    within tolerances for time and budget no worse than any large project in precious NATO utopias. I am not picking on India, this
    BS index makes Mexico look like some uncorrupt paradise as well in spite of the fact that the northern part is run by the narco mafias.
    The key point is that using media reports on corruption to evaluate corruption is a circular circle jerk that actually measures media
    bias.

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    Re: Russian Economy General News: #6

    Post  higurashihougi on Wed Jan 20, 2016 8:25 am

    Good works, Rossiya.

    https://www.rt.com/business/329516-russia-capital-illegal-outflow/

    The Central Bank of Russia estimates an almost 90 percent drop in illicit cross-border transactions last year. The regulator says $900 million left the country illegally in 2015, compared to $8.1 billion the previous year.

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    Re: Russian Economy General News: #6

    Post  Austin on Wed Jan 20, 2016 9:23 am

    Russia's Economy in 2015 Rolled With the Punches

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    Re: Russian Economy General News: #6

    Post  Austin on Wed Jan 20, 2016 9:25 am

    Not sure why Russia is cutting Space Funding by 500 billion roubles it would be like $7-8 billion considering they are leaders in Space.

    Its one of the worst decision to cut funding ,For a country that claims to have resourse base of $30 Trillion , Cutting funding for short term that too for 10 year period is not a wise decision.

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    Re: Russian Economy General News: #6

    Post  higurashihougi on Wed Jan 20, 2016 9:58 am

    Russia's investent in US debt bond has just risen from 82 bil. USD to 88 bil. Russia just bought an additional 6 bil. USD debt bond on November.

    Russia is currently the 15th largest debt holder of the U.S. The biggest one, undoubtedly, is China (1264 bil.). The second one is Japan (1145 bil.).

    https://eadaily.com/news/2016/01/20/rossiya-vlozhila-v-dolgovye-obligacii-ssha-eshche-6-mlrd

    Объем вложений России в долговые облигации США вырос до $ 88 млрд за счет того, что Москва в ноябре прошлого года вложила еще $ 6 млрд. Об этом свидетельствуют данные казначейства США.

    Пока Россия сохраняет за собой 15-е место в списке основных держателей долговых обязательств США. В лидерах по-прежнему Китай ($ 1,264 трлн), на втором месте Япония ($ 1,145 трлн).

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    Re: Russian Economy General News: #6

    Post  Austin on Wed Jan 20, 2016 10:26 am

    They are better of buying Gold with money then US Tressuries , I am not sure the obsession of Central Bank to buy US tressuries.


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