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    Russian Economy General News: #7

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    Austin
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    Re: Russian Economy General News: #7

    Post  Austin on Thu Sep 15, 2016 9:27 am

    Looks like ex Ambassador Michael McFaul has got a full time job of Trolling Russia and its Economy

    Check this twitter account

    https://twitter.com/McFaul


    He posted this link on his twitter feed

    World-Renowned Economist Sergei Guriev on the Russian Economy: Takeaways from his Speech at the Oxford Guild

    http://www.huffingtonpost.com/samuel-ramani/worldrenowned-economist-s_b_9272876.html

    kvs
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    Re: Russian Economy General News: #7

    Post  kvs on Fri Sep 16, 2016 12:27 am

    Austin wrote:Looks like ex Ambassador Michael McFaul has got a full time job of Trolling Russia and its Economy

    Check this twitter account

    https://twitter.com/McFaul


    He posted this link on his twitter feed

    World-Renowned Economist Sergei Guriev on the Russian Economy: Takeaways from his Speech at the Oxford Guild

    http://www.huffingtonpost.com/samuel-ramani/worldrenowned-economist-s_b_9272876.html

    You post this shit and expect others to rebut it? Are you trolling?

    Inflation for 2016 will be 5.7%. Guriev can go and suck his NATO masters off some more. They are all living
    in lala fantasy land.

    I already posted how bad the 2015 "crash" was. A 3.5% GDP decline does not compare to the 8% GDP drop in 2009.
    Why was 2008/9 not a "perfect storm"?

    TheArmenian
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    Re: Russian Economy General News: #7

    Post  TheArmenian on Fri Sep 16, 2016 3:04 pm

    August 2016 results for Automotive sales in Russia (compared to August 2015):

    From various sources, I compiled the following:

    Passenger car sales are down again for the month, this time by 18%: But Lada and UAZ sales increased 4% and 3% respectively, GAZ minivan sales were down 16% though. Overall the Russian brands gained market share.

    Light Commercial Vehicle (LCV) sales are flat: GAZ, UAZ and Lada Largus van sales have increased slightly thus gaining market share.

    Truck sales are up 20% for the month: Kamaz sales are up 35%. Ural and GAZ sales are up 49%. The Russian brands gained share over foreign ones like Mercedes, Isuzu and Iveco.

    Used car sales in Russia for August increased 3.6%.



    In other news:

    Central bank has lowered the key interest rate from 10.5% to 10%

    http://www.1prime.biz/news/_Russian_central_bank_lowers_key_rate_to_10_from_105/0/%7B5B9EC8A2-92A5-4DC1-A39C-09A9345E3398%7D.uif

    Austin
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    Re: Russian Economy General News: #7

    Post  Austin on Sat Sep 17, 2016 9:46 am

    kvs wrote:
    Austin wrote:Looks like ex Ambassador Michael McFaul has got a full time job of Trolling Russia and its Economy

    Check this twitter account

    https://twitter.com/McFaul


    He posted this link on his twitter feed

    World-Renowned Economist Sergei Guriev on the Russian Economy: Takeaways from his Speech at the Oxford Guild

    http://www.huffingtonpost.com/samuel-ramani/worldrenowned-economist-s_b_9272876.html

    You post this shit and expect others to rebut it?   Are you trolling?

    Inflation for 2016 will be 5.7%.  Guriev can go and suck his NATO masters off some more.   They are all living
    in lala fantasy land.

    I already posted how bad the 2015 "crash" was.   A 3.5% GDP decline does not compare to the 8% GDP drop in 2009.
    Why was 2008/9 not a "perfect storm"?
    I was just pointing out that a full time ex Russian Ambassador now got a full time job of Trolling Russia in his Tweets .....he does not even cover other issues ...... IIRC he was humiliated and told to leave

    I agree with rest of your post.

    Some one should show McFoul Mouth this stastics of Obama

    Harvard Crushes The "Obama Recovery" Farce With 9 Simple Charts


    Austin
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    Re: Russian Economy General News: #7

    Post  Austin on Sat Sep 17, 2016 9:48 am

    kvs some stastics to chew on


    Living Within Your Means: US Could Take a Lesson From Russia's Low National Debt

    Read more: https://sputniknews.com/business/20160805/1043984343/us-russian-national-debt-comparison.html

    higurashihougi
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    Re: Russian Economy General News: #7

    Post  higurashihougi on Sat Sep 17, 2016 1:50 pm

    May anybody rebunk Western's propaganda about "Russian reserve fund is running out of cash ?" I know the forum has talked about similar topic before but I still do not fully gaps the essence of the issue.

    http://money.cnn.com/2016/09/16/news/economy/russia-cash-reserves-depleted/

    Viktor
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    Re: Russian Economy General News: #7

    Post  Viktor on Sat Sep 17, 2016 3:17 pm

    higurashihougi wrote:May anybody rebunk Western's propaganda about "Russian reserve fund is running out of cash ?" I know the forum has talked about similar topic before but I still do not fully gaps the essence of the issue.

    http://money.cnn.com/2016/09/16/news/economy/russia-cash-reserves-depleted/

    Russian goods receive priority in public procurement Details

    S & P raised the outlook on the credit rating of Russia

    and the most important - they are rising steadily throughout 2016

    Russia's international reserves reached the level of $ 400 billion

    Austin
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    Re: Russian Economy General News: #7

    Post  Austin on Sat Sep 17, 2016 5:33 pm

    higurashihougi wrote:May anybody rebunk Western's propaganda about "Russian reserve fund is running out of cash ?" I know the forum has talked about similar topic before but I still do not fully gaps the essence of the issue.

    http://money.cnn.com/2016/09/16/news/economy/russia-cash-reserves-depleted/

    There is no point rebutting CNN  they are brain dead but since I posted this else where I will post it here

    CNN needs to get their facts right , The bank did not burn $140 billion defending rouble but the companies purchased Rouble to pay their debt , that is the reason the external debt went down 30 % in past 2 years.



    Central Bank does not defend rouble , its a free floating full capital account convertible currency , its value via a viz USD and Euro is decided by market forces  http://www.bloomberg.com/quote/USDRUB:CUR

    The central bank key role is to defend inflation i.e keep it low as possible and not the currency

    The forex reserves infact has gone up from $350 billion to $390 plus in past two years
    http://www.bloomberg.com/quote/RUREFEG:IND

    Odin of Ossetia
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    Russia Could Run Out of Money in 2017.

    Post  Odin of Ossetia on Sun Sep 18, 2016 4:27 am




    Russia Could Run Out of Money in 2017.


    http://www.msn.com/en-ca/news/world/russia-could-run-out-of-cash-reserves-in-2017/ar-BBwhUe9?li=AAggv0m&ocid=SKY2DHP


    http://www.cnbc.com/2016/09/09/vladimir-putin-is-not-strong-when-it-comes-to-russias-economy.html

    kvs
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    Re: Russian Economy General News: #7

    Post  kvs on Sun Sep 18, 2016 4:38 am

    Odin of Ossetia wrote:


    Russia Could Run Out of Money in 2017.


    http://www.msn.com/en-ca/news/world/russia-could-run-out-of-cash-reserves-in-2017/ar-BBwhUe9?li=AAggv0m&ocid=SKY2DHP


    http://www.cnbc.com/2016/09/09/vladimir-putin-is-not-strong-when-it-comes-to-russias-economy.html

    A day late and a dollar short.

    This hysterical crap was discussed here over half a year ago.   This sort of "news" is designed for people that don't know
    anything about macroeconomics and how the money supply works.   Money does not come from some sort of "bank account"
    which can be run dry.   Central banks, charter banks and other lending institutions generate the money supply through
    loans.   Interest rates serve to damp the flux of new loans (i.e. money) into the economy and thus regulate liquidity and inflationary
    pressure.    The total money supply is not a conserved quantity, it grows together with the GDP.   And not all loaned money
    is recovered due to bankruptcies. So every dollar/ruble is not attached to some spring pulling it back into a bank to be disappeared
    from circulation.

    https://en.wikipedia.org/wiki/Money_creation

    It is ludicrous how there is not a squeak about the USA and Canada even though they have zero reserve funds "to tap"
    and have enormous debts that in the case of the USA approach 100% of GDP.   If the USA can "get enough money" then so
    can Russia and Russia can do it without printing money like Pancho Villa (aka quantitative easing).  

    While the USA and Canada have been running enormous budget deficits nobody was running around crying the "sky is falling".
    Russia runs moderate budget deficits during a recession and this is used to "prove" that it is running out of money: get the f*ck out.
    When Russia's tax revenues actually start to collapse wake me up.

    Austin
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    Re: Russian Economy General News: #7

    Post  Austin on Sun Sep 18, 2016 8:30 am

    Guess The Last Country Which Still Has Positive Real Interest Rates——Russia!

    by Robert Wenzel • September 17, 2016


    http://davidstockmanscontracorner.com/guess-the-last-country-which-still-has-positive-real-interest-rates-russia/

    Russia’s central banker,  Elvira Nabiullina, continues to be the most impressive central banker in the world. It appears she has completely rejected Keynesian money pumping orthodoxy and its strange new view that a little price inflation is good. She holds the heroic view that it is investment and increasing efficiencies that boost growth in an economy.

    Reports Bloomberg: Nabiullina has a message for Russian businesses that may be finding it difficult to adapt to positive real interest rates: get used to it.

    The Bank of Russia will continue its “moderately tight” monetary policy, with the inflation rate now below its benchmark for the past eight months, Nabiullina told a banking conference in the Black Sea resort city of Sochi today. Keeping real interest rates stable in positive territory is an “important condition for healthy economic growth,” she said.

    The main drivers of growth should be “fixed investment, structural changes in the economy and efficiency increases,” Nabiullina said. “It’s necessary to safeguard household deposits against inflationary depreciation to support a high level of savings and to create the conditions to transform them into investment.”

    “We see the stability of rates — their predictable and gradual decrease as far as inflation slows — as an important factor in stabilizing the economy,” she said. It’s also “one of the conditions for a shift to growth, based in particular on higher labor productivity and efficiency.”


    Austin
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    Re: Russian Economy General News: #7

    Post  Austin on Sun Sep 18, 2016 9:09 am

    Excellent Interview with David Stockman , kvs watch it


    kvs
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    Re: Russian Economy General News: #7

    Post  kvs on Sun Sep 18, 2016 4:16 pm

    http://www.zerohedge.com/news/2016-09-18/russia-cuts-interest-rates-whilst-maintaining-toughmonetary-policy

    So the CBR has a policy of keeping the prime lending rate at "inflation + 3%" but does not actually follow the inflation
    when it drops and lets the excessive rate stand for long periods of time.

    On what basis does the CBR come up with this ridiculous formula? Why not "inflation + 1%" or "inflation - 2%" as in
    most of the west?

    I am disappointed that Putin lets these clowns toy with Russia's economy under crisis conditions. They need to face
    a firing squad.

    kvs
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    Re: Russian Economy General News: #7

    Post  kvs on Sun Sep 18, 2016 4:25 pm

    Austin wrote:Guess The Last Country Which Still Has Positive Real Interest Rates——Russia!

    by Robert Wenzel • September 17, 2016



    http://davidstockmanscontracorner.com/guess-the-last-country-which-still-has-positive-real-interest-rates-russia/

    Russia’s central banker,  Elvira Nabiullina, continues to be the most impressive central banker in the world. It appears she has completely rejected Keynesian money pumping orthodoxy and its strange new view that a little price inflation is good. She holds the heroic view that it is investment and increasing efficiencies that boost growth in an economy.

    Reports Bloomberg: Nabiullina has a message for Russian businesses that may be finding it difficult to adapt to positive real interest rates: get used to it.

    The Bank of Russia will continue its “moderately tight” monetary policy, with the inflation rate now below its benchmark for the past eight months, Nabiullina told a banking conference in the Black Sea resort city of Sochi today. Keeping real interest rates stable in positive territory is an “important condition for healthy economic growth,” she said.

    The main drivers of growth should be “fixed investment, structural changes in the economy and efficiency increases,” Nabiullina said. “It’s necessary to safeguard household deposits against inflationary depreciation to support a high level of savings and to create the conditions to transform them into investment.”

    “We see the stability of rates — their predictable and gradual decrease as far as inflation slows — as an important factor in stabilizing the economy,” she said. It’s also “one of the conditions for a shift to growth, based in particular on higher labor productivity and efficiency.”


    BS adulation for the idiots/criminals at the CBR. The purpose of the prime rate is not "to have positive real interest rates" but to "control"
    inflation. Russia does not need the ludicrously high rate (now 10%) set by the CBR. Russia is not in an inflation sensitive economic regime
    as proven by the quick attenuation of inflation in early 2015 following the massive ruble forex devaluation in late 2014. BTW, this cannot
    be attributed to the CBR since the prime rate cannot stop inflationary instability once it develops. If Russia was in an unstable regime even
    a 50% prime rate would not fix it.

    The fact that Russian companies were/are seeking affordable loans outside Russia's borders tells a lot about how messed up is the
    Russian banking system. And this is due to the CBR and its loan-shark prime rate. Russia imports all sorts of fads and nonsense economic
    theories from the precious west but when it comes to important things it is somehow not aware of them. The CBR needs to set the
    prime rate at 2% below the inflation rate as in the west and not 3% above it as it currently does.

    Project Canada
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    Re: Russian Economy General News: #7

    Post  Project Canada on Tue Sep 20, 2016 11:17 pm




    DISCUSSING RUSSIA’S ECONOMY

    The adviser to Russian President Putin proposes an alternative to the current monetary-and-credit policy of the Russian Central Bank.

    The Central Bank (CB) must guarantee a stable exchange rate of the rouble against the dollar; reduce the margin of the banks and the interest rate to the level of the average yield in the real sector of the economy. This proposal is the foundation for a conceptual project for an alternative monetary-and-credit policy of Academic, Sergey Glazev, Adviser to Russian President, Vladimir Putin.

    The monetary-and-credit-policy (MCP) is the founding document of the CB, defining its working policy. Glazev is convinced that this strategy is now vague and pursues goals which contradict the interests of society. It is necessary to create “internal sources for financing economic growth” under the conditions of sanctions and external shocks. These sources must not depend on the price of energy on the foreign markets as they do now.

    Apart from that, in the conditions of economic crisis, the CB should not only focus on measures reducing the inflation rate (to 4% by 2017); it must stimulate economic growth by expanding production. “The regulator must not limit itself to fighting inflation without linking it to equally-important economic and financial indicators of development in the country,” Glazev pointed out in his 34-page project and highlighted that the return of the economy to growth is possible if several conditions are met.

    The rouble is undervalued, just like in 1998.

    The first point in Glazev’s proposal is to guarantee a steady exchange rate of the rouble. At the moment, it is extremely necessary to maintain stability in the currency market. Russia does not need a weak rouble. The weak rouble “increases the resources profile of the economy, increases the mistrust of the national currency, stimulates the leak of capital and accelerates inflation.”

    According to the Constitution of the Russian Federation, “the major function of the CB is to protect and guarantee the stability of the rouble.” Stability can be improved if we learn how to form financial flows on the basis of internal sources “in other words, the monetary base of the rouble must be formed on internal factors and it must not depend on external economic conjuncture and the dynamics of prices of energy.” The rate of the rouble must respond to the level of competitiveness of the Russian economy. To achieve this, it is necessary to get out of the regime of ”a free-flowing rate of exchange of the rouble.”

    Glazev pointed out that out of the 20 countries where the share of petrol export takes more than 70%, apart from Russia, there is only a regime of a free-flowing rate of exchange in Norway. The other countries apply a regime of a fixed or regulated exchange rate. Apart from that, to limit the possibilities of increased speculative deals, the regulator is obliged to use a broad set of tools. Related to the banks, the volume of currency speculation could be limited with tools, such as a lower currency position, lower norms of reserves in rouble operations and the introduction of turnover tax on the currency operations proposed by Tobin mostly in the Moscow Stock Exchange (Nobel laureate James Tobin – (1918-2002) proposed taxation on cash currency exchange.)

    Even at a minimum of 1%, the introduction of such taxation will bring to the budget about a trillion roubles per quarter and could become an alternative for the privatisation of state companies.

    The weak rouble made the Russian economy export-orientated and the export became super-efficient. “This disbalance is in the foundation of the dollarisation of the Russian economy, making the purchase of the rouble and rouble actives by the holders of dollars super-effective. In fact, we have come back to the parameter of undervaluing the rouble to the purchasing power parity (PPP) level, which was observed during the crisis in 1998.”

    Today, Russia is distancing itself not only from developed countries but also from many developing ones because of the collapse of the rouble in 2014-2015, which led to the parameter ”exchange rate-PPP ratio.” This puts Russia in an unequal position of exchange on the world market (including in the purchase of modern technologies). According to estimates of the OECD and the World Bank, the exchange rate of the rouble against the dollar in terms of PPP was 19-23 roubles per dollar in 2014-2015, or even before the collapse at the end of 2014, the exchange rate of the rouble had been undervalued in comparison with the PPP rate. During January/February 2016, the average rate was 77 rubles per dollar, in other words, the rouble weakened 3.3 times compared with the PPP rate.

    The printing machine as a growth factor.

    The second point in the proposal is in the same spirit: “The size of the monetary mass, together with the use of a multi-channel emission target mechanism for refinancing commercial banks and institutes for development, under conditions compulsory for the state.” Money must be directed “to priority sectors at lower rates and in binding control over the appropriate spending of these funds.”

    Target-orientated means to priority sectors must provide growth of activity in similar sectors so that together, they contribute to higher rates of economic growth, diversification, improvement of technical levels and competitiveness and to lower inflation.

    Do not be afraid of a budget deficit.

    In the third point, Sergei Glazev appeals to the CB, the Ministry of Economic Development and the Ministry of Finance to work closely together, to strictly coordinate their activities and not to be afraid of a “moderate amount of budget deficit in order to stimulate economic growth.” Glazev calls the budget deficit “an important tool for economic growth,” especially during times of economic instability. The increase of the budget deficit could finance research and development activities and stimulate innovative activities of business.

    “This will lead to a moderate shift of external debt with internal debt. Such an approach will stimulate economic growth, promote and enhance the role of internal factors of economic growth, by neutralising the effects of adverse economic conditions,” argues Glazev. He considers any arguments against increasing the budget deficit as irrelevant, because the moderate deficit which is controlled in the direction of expenditure, is a lever for securing economic growth. “Any future growth must be based on investment costs, which make such growth possible (today spending and investment, tomorrow their results),” Glazev said.

    To ensure economic growth, it is necessary to activate the mechanism of the state (budget financing) and the available mechanisms of the CB, the sources of financial resources and the emission centre. According to Glazev, the CB can buy government bonds issued by the Ministry of Finance and, at the same time, to realise a targeted emission which the government must use to finance the budget deficit, formed as a result of increased government spending for economic development.

    Thus, the CB will be able to secure long-term credit for the state and enterprises; the economy can receive a considerable investment impulse, which will multiply by including the “long-term” private sector projects. Moreover, the target emissions will allow financial resources to focus on priority objectives (mortgages, small businesses and others), which will saturate these areas with resources and reduce interest rates. On this subject, Glazev concurs with his counterpart from Stalipinski Club, Boris Titov. Currently, Titov is preparing one of the options for the programme to stimulate economic growth for the President. In an interview with Gazeta.ru, he said that the Russian economy will need two trillion roubles in 2017, on the base of returns.

    The fourth proposal

    Stabilising the exchange rate of the rouble also results in “reducing the base rate to the level of the average yield in the real economy.” Lowering the interest rates can be tied to limiting bank margins in the event that the Bank participates in targeted lending to manufacturing companies. For such participation, authorised banks will receive incentives to refinance debts and norms for reserving the means.

    Finally, Glazev blames the CB for a lack of consistent and transparent policy. The market needs a “clear definition” of the rates preferred by the regulator.

    Growth without delusions.

    In summary, Glazev pointed out that the process to internal monetary mechanism for growth, the increased level of the monetisation of the Russian economy, stabilising the currency market, renouncing inflation targeting and the free-floating of the rouble will stimulate the transition to more favourable macroeconomic indicators. In other words, “it will allow for a tangible compensation for the decline in oil prices, and the Russian economy will achieve sufficiently high rates of growth.”

    According to Glazev’s calculations, the use of multi-currency issue, the refusal of the regime to freely-float the rouble and an inflation rate of not higher than 8%, will allow the Russian economy to achieve annual GDP growth of 6.5% to 7%.

    Glazev is a member of the National Financial Council (NFC). This is a collegial body formed on a quota principle by representatives of the President, government and both Houses of Parliament. The NFC is a supervisory body, its powers are enormous – from controlling how the Russian Bank performs an assessment of the costs, to annual reports to determine the unified state monetary and credit policies.

    Glazev systematically gives negative assessments for the course of the politics of the CB, but for the first time, he offers an alternative PAC. Some time ago, he criticised the report for the sources of economic growth, prepared by the Centre for Strategic Studies under the leadership of Alexei Kudrin. In a letter to Kudrin, Glazev characterised the programme as a document “built on widespread misconceptions,” firstly regarding inflation and its impact on economic growth.

    https://southfront.org/discussing-russias-economy/


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    Re: Russian Economy General News: #7

    Post  Austin on Thu Sep 22, 2016 6:31 am

    MOSCOW BLOG: Unveiling the KGB school of economic management

    http://www.intellinews.com/moscow-blog-unveiling-the-kgb-school-of-economic-management-106489/

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    Re: Russian Economy General News: #7

    Post  kvs on Thu Sep 22, 2016 3:18 pm

    Austin wrote:MOSCOW BLOG: Unveiling the KGB school of economic management

    http://www.intellinews.com/moscow-blog-unveiling-the-kgb-school-of-economic-management-106489/



    Ben Aris is another professional fantasy and hate projectionist. The Russian economy has no similarity to Saudi Arabia
    and is not a one-commodity banana republic such that the oil price drop would "break" it. We discussed these BS
    claims already. The change in ruble forex rate alone nullified the oil price drop since Russian oil extraction, refinement
    and value added goods production has its costs in rubles and not dollars.

    As for Putin and the KGB. Big whoop. If some FBI analogue helps clean up corruption better then good going. Putin
    obviously realizes that fragmenting the government effort to fight crime into a bunch of competing and non-coordinated
    agencies is stupid. People doing the same job should have one boss and not ten. Ten bosses always pull in ten different
    directions and engage in petty squabbling instead of cooperation.

    Austin
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    Re: Russian Economy General News: #7

    Post  Austin on Fri Sep 23, 2016 12:09 pm

    Russia to Maintain Course on Economic Openness - Prime Minister Medvedev

    Read more: https://en.ria.ru/business/20160922/1045570157/russia-medvedev-maintain-open-economy.html

    MOSCOW (Sputnik) — Russia will prioritize economic openness and continue creating free-trade zones with foreign countries despite geopolitical difficulties, Russian Prime Minister Dmitry Medvedev said.

    "Despite geopolitical difficulties, Russia will maintain course on economic openness, will continue creating free-trade zones with some countries and blocs as well as signing preferential trade agreements," Dmitry Medvedev wrote in his article for a Russian journal

    "Voprosy Ekonomiki" (Economy Questions) published on Thursday. Medvedev also stressed that Russia will focus on strengthening ties with other members of the Eurasian Economic Union, which also includes Kyrgyzstan, Armenia, Belarus, Kazakhstan. "It is unacceptable in the current situation to propose introduction of rigid economy planning and return to the Soviet planning model. The rigidity of the Soviet model led to its demise in a postindustrial society," Medvedev wrote.


    The prime minister also ruled out a number of potentially dangerous measures, such as nationalization of large companies, economic mobilization, selling government property or "printing money" policy.  Rolling Eyes

    "We will not switch on the 'printing press' or unbalance the economy, as people usually end up paying for this kind of measures," Medvedev wrote. Medvedev stressed that in planning anti-crisis reforms the government should avoid populist tactics, which might lead to the reforms carried out at the expense of people.

    Medvedev also noted that the sustainable economic growth in Russia depends on political stability, which the newly elected parliament must ensure. "Political stability in the country is key to achieving this goal [the growth of Russians' personal wealth]," Russian Prime Minister Dmitry Medvedev wrote in his article for a Russian journal "Voprosy Ekonomiki" (Economy Questions) published on Thursday. Medvedev stressed that the parliament is responsible for providing the proper legal base for economy reforms.



    Read more: https://en.ria.ru/business/20160922/1045570157/russia-medvedev-maintain-open-economy.html

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    Re: Russian Economy General News: #7

    Post  Austin on Fri Sep 23, 2016 12:18 pm

    kvs what do you think ?

    The prime minister also ruled out a number of potentially dangerous measures, such as nationalization of large companies, economic mobilization, selling government property or "printing money" policy.

    Hmmmm if he is not going to do any of these , then how will he generate revenue and growth , jobs .....surely austerity wont do any of these  ?

    He is against printing money aka QE but I see Russian Public Debt is 14 % of GDP (http://www.interfax.ru/business/513734)

    If he prints says 10 % of GDP ( 79 Trillion rouble ) thats roughly 8 Trillion rouble , That would still increase State Debt to 26 % of GDP which is not bad still low compared to BRICS country and certainly low compared to Europe or US.

    They can use the 8 trillion rouble into building/reparing Infrastructure or invest into Economy that generates Growth and Jobs.

    Whats the point of have low debt if that does not help the economy and when foreign borrowing is not possible for companies ?

    I dont see any think wrong with QE as long as they dont end up what US did investing into Stock Market to inflate prices and generate bubble , which defeated purpose of QE

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    Re: Russian Economy General News: #7

    Post  Singular_trafo on Fri Sep 23, 2016 10:39 pm

    Austin wrote:kvs what do you think ?

    The prime minister also ruled out a number of potentially dangerous measures, such as nationalization of large companies, economic mobilization, selling government property or "printing money" policy.

    Hmmmm if he is not going to do any of these , then how will he generate revenue and growth , jobs .....surely austerity wont do any of these  ?

    He is against printing money aka QE but I see Russian Public Debt is 14 % of GDP (http://www.interfax.ru/business/513734)

    If he prints says 10 % of GDP ( 79 Trillion rouble ) thats roughly 8 Trillion rouble , That would still increase State Debt to 26 % of GDP which is not bad still low compared to BRICS country and certainly low compared to Europe or US.

    They can use the 8 trillion rouble into building/reparing Infrastructure or invest into Economy that generates Growth and Jobs.

    Whats the point of have low debt if that does not help the economy and when foreign borrowing is not possible for companies ?

    I dont see any think wrong with QE as long as they dont end up what US did investing into Stock Market to inflate prices and generate bubble , which defeated purpose of QE

    Doesn't work likethat.

    That increase the inflation, and the goverment debt stay the same.

    It makes sense only if the economy has spare resources ( high unemployment or underemployment).

    At the moment it is not the case in russia.

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    Re: Russian Economy General News: #7

    Post  kvs on Sat Sep 24, 2016 12:23 am

    Austin wrote:kvs what do you think ?

    The prime minister also ruled out a number of potentially dangerous measures, such as nationalization of large companies, economic mobilization, selling government property or "printing money" policy.

    Hmmmm if he is not going to do any of these , then how will he generate revenue and growth , jobs .....surely austerity wont do any of these  ?

    He is against printing money aka QE but I see Russian Public Debt is 14 % of GDP (http://www.interfax.ru/business/513734)

    If he prints says 10 % of GDP ( 79 Trillion rouble ) thats roughly 8 Trillion rouble , That would still increase State Debt to 26 % of GDP which is not bad still low compared to BRICS country and certainly low compared to Europe or US.

    They can use the 8 trillion rouble into building/reparing Infrastructure or invest into Economy that generates Growth and Jobs.

    Whats the point of have low debt if that does not help the economy and when foreign borrowing is not possible for companies ?

    I dont see any think wrong with QE as long as they dont end up what US did investing into Stock Market to inflate prices and generate bubble , which defeated purpose of QE

    As the minister said no QE and he is right. The government needs to cover its deficit by borrowing on the domestic market. It needs
    to first shoot the directors of the CBR. These directors are criminals who impose a loan shark prime rate on Russia's economy.

    I am hoping that the government actually tries to borrow money domestically. That will force the use of an enema on the sh*t currently
    plugging the whole Russian financial system.

    Austin
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    Re: Russian Economy General News: #7

    Post  Austin on Sat Sep 24, 2016 9:15 am

    Ron Paul Interview with David Stockman , Most part of Interview deals with US Economy or rather how bad it is.

    David also states when asked of Russian threat that Russian Economy is less then GDP of New York !


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    Re: Russian Economy General News: #7

    Post  Austin on Sat Sep 24, 2016 9:18 am

    Interesting because Kudrin says this Razz 


    European, US Debt Levels Almost Reached Critical Point

    Read more: https://sputniknews.com/europe/20160923/1045626593/europe-us-debt-critical.html


    "Today we have a major debate about the ways the countries would pay their debt. The United States is near the critical point in the issue of debt, Europe is also near the critical point. It is one significant challenge," Kudrin, who is the head of Russia's Center for Strategic Research (CSR), said at the Moscow Financial Forum.

    The United States has the world’s largest national debt which surpassed $19 trillion this year. The cause has been attributed to excessive government spending, mandatory entitlement programs as well as a steep decline in tax revenue following the 2008 financial crisis. The European Union has been significantly affected by growing debts of its member states. The most prominent example of such inability to cope with its financial obligation is Greece, whose debt is estimated by 176.9 percent of country's GDP, according to Eurostat figures.

    Singular_trafo
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    Re: Russian Economy General News: #7

    Post  Singular_trafo on Sat Sep 24, 2016 10:37 am

    kvs wrote:
    Austin wrote:kvs what do you think ?

    The prime minister also ruled out a number of potentially dangerous measures, such as nationalization of large companies, economic mobilization, selling government property or "printing money" policy.

    Hmmmm if he is not going to do any of these , then how will he generate revenue and growth , jobs .....surely austerity wont do any of these  ?

    He is against printing money aka QE but I see Russian Public Debt is 14 % of GDP (http://www.interfax.ru/business/513734)

    If he prints says 10 % of GDP ( 79 Trillion rouble ) thats roughly 8 Trillion rouble , That would still increase State Debt to 26 % of GDP which is not bad still low compared to BRICS country and certainly low compared to Europe or US.

    They can use the 8 trillion rouble into building/reparing Infrastructure or invest into Economy that generates Growth and Jobs.

    Whats the point of have low debt if that does not help the economy and when foreign borrowing is not possible for companies ?

    I dont see any think wrong with QE as long as they dont end up what US did investing into Stock Market to inflate prices and generate bubble , which defeated purpose of QE

    As the minister said no QE and he is right. The government needs to cover its deficit by borrowing on the domestic market. It needs
    to first shoot the directors of the CBR. These directors are criminals who impose a loan shark prime rate on Russia's economy.

    I am hoping that the government actually tries to borrow money domestically. That will force the use of an enema on the sh*t currently
    plugging the whole Russian financial system.

    The CBR does what the Russian goverment wants.

    High intrest rate decrease the consumption.
    The unemployment in this case whould go down, if nothing else change.

    But the unemployment stayed on level, means the decreased consumption has been replaced by goverment spending .

    It is a central policy, the intrest rate is a tool to increase the russian invstment/goverment spending.

    Singular_trafo
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    Re: Russian Economy General News: #7

    Post  Singular_trafo on Sat Sep 24, 2016 10:44 am

    Austin wrote:Interesting because Kudrin says this Razz 


    European, US Debt Levels Almost Reached Critical Point

    Read more: https://sputniknews.com/europe/20160923/1045626593/europe-us-debt-critical.html


    "Today we have a major debate about the ways the countries would pay their debt. The United States is near the critical point in the issue of debt, Europe is also near the critical point. It is one significant challenge," Kudrin, who is the head of Russia's Center for Strategic Research (CSR), said at the Moscow Financial Forum.

    The United States has the world’s largest national debt which surpassed $19 trillion this year. The cause has been attributed to excessive government spending, mandatory entitlement programs as well as a steep decline in tax revenue following the 2008 financial crisis. The European Union has been significantly affected by growing debts of its member states. The most prominent example of such inability to cope with its financial obligation is Greece, whose debt is estimated by 176.9 percent of country's GDP, according to Eurostat figures.

    The debt is a political problem.

    It generated in first place because the goverment doesn't want to tax the part of the economy that generating the profit and accumulating the money.
    And the taxable part fo the economy ( the middle class) getting smaller and smaller .

    Now they can either accelerate the demolition of the middle class by cutting back the goverment spending or icnrease the taxation of them ( VAT and income tax), or they can cut back the size of the billionaire class, by taxing the profit and increase the cost of funding.


    It is the same strugle for power that happens since the humans started to cooperate.

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