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    Russian Economy General News: #8

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    Rmf
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    Russian Economy General News: #8

    Post  Rmf on Fri Nov 25, 2016 11:50 pm

    kvs wrote:
    GunshipDemocracy wrote:

    Well Ruble is not a reserve currency, please bear it in mind. In general do not live beyond your means i smart idea. What bugs me is why Russia is so dependent on people with view a la Kudrin (western mythical  investors, technologies they will not sell us technologies and we depend on them!!! - like you cannot develop on your own? ) - who are either interested in colonial status quo because of money they make. Or even worse -  they´re  mentally colonized...

    SMERSH in short Smile

    Russia does not need for the ruble to be a reserve currency to handle deficits in the 5% and even higher range.   Deficits are not
    money printing so the inflation risk is not there.   The only problem is debt accumulation.   But Russia is clearly not using deficits
    to fake GDP growth like most of the OECD.   But propagandists bleat as if Russia is in imminent danger of collapse when Russia runs
    very tame deficits for a couple of years while keeping quiet about decades long deficit stimulus of OECD GDP numbers.  

    one of oldest banks in the world survived everything but not this time. lost 99% of value.
    i think theyll try to make dolar strong bonds strong and gold as low as possible to buy it out,before hyperinflation and prices skyrocket, western system is more and more showing cracks and fragility is increasing.
    westerners would never let china reminbi be reserve currency under normal circumstances but it is and it show how desperate they are. now even mmf can print currency - SDRs.
    http://business.financialpost.com/news/how-italys-oldest-bank-lost-99-of-its-value-and-why-the-rest-of-the-italian-banks-are-also-a-basket-case

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    Re: Russian Economy General News: #8

    Post  Austin on Sat Nov 26, 2016 6:43 am

    Jim Rickards


    George1
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    Re: Russian Economy General News: #8

    Post  George1 on Sat Nov 26, 2016 12:27 pm

    Moscow confirms deal on energy ring linking Russia, Belarus and Baltic states underway

    MOSCOW, November 25. /TASS/. Russia’s Energy Minister Alexander Novak and Vice-President of the European Commission in charge of Energy Union Maros Sefcovic have agreed on developing an intergovernmental agreement on the BRELL energy ring linking Belarus, Russia, Estonia, Latvia and Lithuania, Novak told reporters.

    "We also agreed to continue working on proposals for signing an intergovernmental agreement on cooperation within the BRELL energy ring," he said.

    Novak also said that they discussed issues related to cooperation on nuclear energy and a possibility of establishing a working group in this area.


    More:
    http://tass.com/economy/914636


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    Re: Russian Economy General News: #8

    Post  George1 on Mon Nov 28, 2016 4:36 am

    PM Medvedev to hold meeting on support for several industries in 2017

    More:
    http://tass.com/economy/914961


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    Re: Russian Economy General News: #8

    Post  PapaDragon on Wed Nov 30, 2016 7:23 pm

    Norway and Finland thaw relations with Russia

    Economic and trade contact re-established for first time since annexation of Crimea


    https://www.ft.com/content/269a73e4-b70b-11e6-ba85-95d1533d9a62#comments

    Norway and Finland have revived economic and trade contacts with Russian ministers for the first time since the annexation of Crimea in a sign of a thawing in relations.

    Three Norwegian ministers met their Russian counterpart for natural resources this week in the first such bilateral meeting in more than two years and agreed to share seismic data in the search for Arctic oil and gas near their common border.

    The Finnish-Russian trade commission — co-chaired by the Russian deputy prime minister and the Finnish trade minister — also came together for the first time since 2013 last week. Both Norway and Finland put the contacts on ice following Russia’s annexation of Crimea in the spring of 2014.

    The governments of Norway and Finland insisted the re-establishment of contacts did not affect European unity over sanctions on Russia — particularly in energy matters — but some experts disagreed.

    “We have a 1,300km common border with Russia so we have many issues that have to be dealt with from time to time. But it’s in our interests that the west stays united over breaches of international law. These two things are not in contradiction,” Kai Mykkänen, Finland’s trade minister, told the Financial Times.

    Monica Maeland, Norway’s trade minister, said: “We want good neighbourly relations with Russia, especially in the north, where we have a common border and common interests.”

    Both ministries said EU sanctions on Russia were not discussed in the meetings. But Indra Overland, Russian expert at the Norwegian Institute of International Affairs, said the “mini-thaw” in relations signals a change in relations with Russia as the memory of what happened in Ukraine fades.

    “It is the clear beginning of a slippage on sanctions. It’s quite a big beginning. It doesn’t affect the sanctions yet but the will to continue is slipping,” added Mr Overland.

    Finland, which unlike Norway is not a member of the Nato military alliance, has long been among the EU countries to have kept some of the closest relations with Russia. The two states’ presidents meet annually and foreign ministers also meet regularly.

    Juha Sipila, the Finnish prime minister, is due to meet his Russian counterpart Dmitry Medvedev next week.

    Russia is still Finland’s fifth-biggest export destination despite sanctions and Mr Mykkänen said it was “important to support the work of Finnish companies in Russia”. But he added that Russia’s bombardment of Aleppo in Syria had made both the EU and Finland “more negative” towards Moscow.

    He also warned against over-interpreting the revival of the trade commission. “It’s nothing so special and I wouldn’t overstate the meaning of this,” Mr Mykkänen said.

    Both the Finnish and Norwegian ministers agreed to further meetings, with Ms Maeland due to visit Moscow in April 2017 while the Finnish-Russian commission is set to reconvene next year.

    As part of the visit by Sergei Donskoi, Russia’s natural resources minister, to Oslo this week, the two countries agreed to hold future talks on how to allocate potential oil or gas discoveries that could straddle the border, as well as share seismic data in the Barents Sea.

    “Companies have been pushing us to have a political dialogue with Moscow for some time,” a Norwegian government official added.

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    Re: Russian Economy General News: #8

    Post  kvs on Wed Nov 30, 2016 11:58 pm

    Meh. Finland can go and f*ck itself. The way it treats the Russian parent in custody cases is a crime. Russia needs to make sure
    that all the economic contacts are to Russia's advantage.

    And as for the word "annexation", FT and the rest of the NATO propaganda chorus can go and eat shit. At the very least Ukraine
    annexed Sevastopol City in 1991. The city was never transferred to Ukrainian SSR jurisdiction by Khruschev or any of the clowns
    that followed him. During the breakup of the USSR it should have retained its status as a Russian territory like Kaliningrad. Since
    Yeltsin did not officially transfer it to Ukraine, it was an annexation in every sense of the word. Russia cannot "annex" Sevastopol
    City since it legally owned it between 1991 and 2014.

    As for the rest of Crimea, that comes down to its vote to restore its autonomy status (https://en.wikipedia.org/wiki/Crimean_sovereignty_referendum,_1991).
    So Ukraine lost its Soviet claim on Crimea in 1991. And the chronology is just fine regardless of the "official" breakup of the USSR in 1990.
    All such territorial issues automatically entered a pending state, including the ones regarding South Ossetia, as there is no automatic
    resolution upon dissolution of the supra-state entity (USSR). If the EU breaks up, there will not be any automatic resolution of various
    territorial issues (e.g. Basques, Catalonians, etc.) in and between its member constituents either. So Ukraine annexed Crimea in 1991.

    Project Canada
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    Re: Russian Economy General News: #8

    Post  Project Canada on Thu Dec 01, 2016 3:32 am



    Putin appoints new economy minister


    Russian President Vladimir Putin signed a decree appointing Maxim Oreshkin to the office of the Minister of Economic Development. The relevant document was posted on Nov. 30 on the Kremlin’s website.

    "To appoint Maxim Oreshkin as the Minister of Economic Development of the Russian Federation," the document says.

    The decree comes into force from the date of its signing.

    Maxim Oreshkin was born in 1982 in Moscow and graduated from the High School of Economics with the master degree in 2004. He held executive positions with Rosbank, Credit Agricole Corporate and Investment Bank, and VTB Capital from 2006 to 2013. Oreshkin started working in the Ministry of Finance in 2013 as the department head and was appointed to the office of the Deputy Finance Minister in March 2015.


    Does anybody know if this guy is a supporter of Glazyev's economic plan? I just hope he is not another Liberal stooge


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    Re: Russian Economy General News: #8

    Post  kvs on Thu Dec 01, 2016 5:50 am

    Project Canada wrote:

    Putin appoints new economy minister


    Russian President Vladimir Putin signed a decree appointing Maxim Oreshkin to the office of the Minister of Economic Development. The relevant document was posted on Nov. 30 on the Kremlin’s website.

    "To appoint Maxim Oreshkin as the Minister of Economic Development of the Russian Federation," the document says.

    The decree comes into force from the date of its signing.

    Maxim Oreshkin was born in 1982 in Moscow and graduated from the High School of Economics with the master degree in 2004. He held executive positions with Rosbank, Credit Agricole Corporate and Investment Bank, and VTB Capital from 2006 to 2013. Oreshkin started working in the Ministry of Finance in 2013 as the department head and was appointed to the office of the Deputy Finance Minister in March 2015.


    Does anybody know if this guy is a supporter  of Glazyev's economic plan? I just hope he is not another Liberal stooge


    The Higher School of Economics is a monetarist hive. We will have to wait and see whether he has any integrity.

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    Re: Russian Economy General News: #8

    Post  Project Canada on Thu Dec 01, 2016 12:26 pm


    Russian factory activity moves from strength to strength

    Activity in Russia's manufacturing sector in November expanded at the fastest pace in more than five-and-a-half years boosted by sharper growth in production and new orders, according to a Markit Economics survey.

    The seasonally adjusted Purchasing Managers' Index (PMI) climbed to 53.6 in November from 52.4 in October. Experts expected the index to fall to 51.5.

    A reading above 50 means expansion in the sector on a monthly basis, anything below indicates contraction.

    “Russia’s manufacturing sector is moving from strength to strength as we approach the end of 2016,” said Samuel Agass, an economist at HIS Markit, commenting on the data.

    “The latest figure continued a four-month sequence of growth and indicated a solid overall improvement in the health of Russia’s manufacturing industry,” the report read.
    The analysts link the increase to stronger demand for Russian goods that is potentially showing up in solid production increases.

    “Firms are also experiencing sufficiently low-cost pressures to allow them to solidly raise their buying activity in an effort to sustain this expansion,” Mr. Agass commented.

    The upturn in new orders marked the strongest level since January 2013. However, new export orders dropped again albeit at the slowest pace for three months.

    At the same time, Russian manufacturers recorded a further decline in their inventories of finished goods.

    “Faced with a greater number of incoming new projects, Russia’s manufacturing sector recorded a further accumulation of outstanding business in November,” according to the report.

    Besides, the growth rate of incomplete work was the sharpest since August 2006.

    “On the price front, rates of inflation in both input and output prices remained muted in comparison to their long-run averages during November,” Markit Economics reports.

    At the same time, Russia’s manufacturers cut their workforce numbers for the fifth straight month.

    READ MORE: Washing machines making clean work of Russian exports

    Purchasing of raw materials and semi-finished goods by the country’s producers continued to increase in November. But pre-production inventories are still declining at a substantial pace.

    “November’s solid upturn makes for a stark contrast from the beginning of the year, when firms were struggling to contend with waning demand and steeper cost inflation. Now, moving into December, the sector is on course to enjoy its strongest quarter for almost six years,” Mr. Agass said.

    https://www.rt.com/business/368843-russia-pmi-factory-business-growth/

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    Re: Russian Economy General News: #8

    Post  Austin on Fri Dec 02, 2016 5:59 am

    Putin orders share of non-defense export in defense industry to be increased to 50%

    More:
    http://tass.com/defense/915962


    MOSCOW, December 1. /TASS/. Russian President Vladimir Putin called in the state-of-the-nation address to the Federal Assembly on Thursday to increase the share of non-defense export in the defense industry to 50% by 2030.

    "Its share should be at least a third of the total production output in the defense sector in the coming decade," Putin said.



    "I want to share these plans with you: the defense segment will produce approximately 16.1% of non-defense products, minor growth is planned in 2020, 30% by 2025 and at least 50% of non-defense products should be by 2030," Putin said. 


    Russian president has also marked progress in the national defense industry sector, which shows a significant productivity growth - 9.8%.

    "We conducted a thorough modernization of the military-industrial enterprises of the defense sector. This has led to an increase in production volumes, and which is most important - to a significant increase in productivity. The defense sector shows is very good performance and gives a good example. In 2016, the expected rate of production growth in the defense industry will be 10.1%, and the expected productivity growth rate is 9.8%," President Vladimir Putin said in his state-of-the-nation address

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    Re: Russian Economy General News: #8

    Post  Austin on Fri Dec 02, 2016 6:01 am

    What kind of Non Defence Growth is Putin talking about said to be 30 % by 2025.

    So the same organisation that has been making tanks and aircraft will be making railway engine , fridge , TV , Civil Aircraft etc and exporting it ?

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    Re: Russian Economy General News: #8

    Post  franco on Fri Dec 02, 2016 8:07 am

    Austin wrote:What kind of Non Defence Growth is Putin talking about said to be 30 % by 2025.

    So the same organisation that has been making tanks and aircraft will be making railway engine , fridge , TV , Civil Aircraft etc and exporting it ?

    Remember these companies are government owned and they have already been on a production diversification program. So presently 1/6 of the production value of these companies is of non military products and to raise to 50% by 2030. Keeps workers working, technology and manufacturing upgrades financed.

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    Re: Russian Economy General News: #8

    Post  Rmf on Fri Dec 02, 2016 10:06 pm

    why no, those tank diesel engines are used in heavy trucks ,tractors and electric agregates.

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    Re: Russian Economy General News: #8

    Post  franco on Fri Dec 02, 2016 11:15 pm

    Russia looking for a 3% cut in oil production to equal a 10% increase in oil prices.

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    Re: Russian Economy General News: #8

    Post  Viktor on Sat Dec 03, 2016 10:33 am

    Austin wrote:What kind of Non Defence Growth is Putin talking about said to be 30 % by 2025.

    So the same organisation that has been making tanks and aircraft will be making railway engine , fridge , TV , Civil Aircraft etc and exporting it ?

    This has been a plan all along. At least from 2010 as I remember. The idea is that defense companies produce civil equipment too thus easing for them growth once military

    rearmament finishes and to more easily transfer military science into civil production something SSSR was slow on.

    Now it will also increase GDP of the country.

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    Re: Russian Economy General News: #8

    Post  Austin on Mon Dec 05, 2016 6:20 pm

    Russia’s By-the-Book Central Banker Sees QE Fading for Good

    The unprecedented tools used by central banks to fight deflation and fire up growth didn’t serve the global economy well, according to Bank of Russia Governor Elvira Nabiullina. And once they’re gone, she says they aren’t coming back.

    Besides spillovers that are inflating “asset bubbles in different segments” of global markets, another consequence of ultra-easy settings is that investment has poured into projects that are hurting productivity, Nabiullina said in a Bloomberg Television interview in Moscow. The outcome is a further drag on economic growth and trade that’s reverberating worldwide, she said.

    “Quantitative easing was initially conceived as a temporary policy, to win time for structural changes,” Nabiullina said. “We see that it’s being carried out for quite an extended period and negative consequences of the policy are accumulating.”

    Looser policy by major central banks has propelled stocks since the global financial crisis, and government bond yields have fallen to record lows. While Russia’s central bank has been so by-the-book that Morgan Stanley deemed it to be the “most orthodox” in developing Europe, policy makers in Moscow are more than innocent bystanders in a global debate over the pitfalls of monetary stimulus.

    Little Stimulus

    The challenge for Russia may be how to vanquish -- not rouse -- inflation, but a chorus of officials and business leaders is keeping up pressure on the central bank to abandon a stance so tight that it’s kept real interest rates near the world’s highest even as the economy struggles to pull out of its longest contraction under President Vladimir Putin.

    Long a critic of the U.S. Federal Reserve as the world’s dollar printing press, Putin has stood by his central bank and declined to pump the economy with cash even as a recession drags on. Unlike the crisis in 2009-2010, when Putin deployed a stimulus package estimated as the largest among Group of 20 nations, this time he’s letting the economy adjust through a flexible exchange rate even as millions plunge into poverty.

    After helping touch off inflation by allowing the ruble to trade freely in late 2014, policy makers are targeting price growth of 4 percent by end-2017 after overshooting their forecasts for a fourth consecutive year in 2015. The central bank’s “moderately tight” stance has allowed for only two rate reductions in 2016 before policy makers all but shut the door on more monetary easing through the rest of the year.

    ‘Opposite Goals’

    “For Russia, we don’t yet see grounds to use such non-traditional measures,” Nabiullina said. “We have absolutely opposite goals. Our inflation is high and we need to lower it.”

    Where global central banks went awry is by trying to administer a monetary cure to “imbalances” for which the best solution may lie elsewhere and that ultimately account for the sluggish economic growth and low inflation, according to Nabiullina.

    “Monetary policy alone can’t cope with these imbalances,” she said. “For the effort to be effective, what’s needed is a good mix, a good combination of fiscal and monetary-policy and structural changes.”

    Policy Mix

    It’s a sentiment increasingly heard from the likes of Federal Reserve Vice Chairman Stanley Fischer, who said this month that monetary and fiscal policy steps may be needed to fend off a protracted period of sub-par economic growth.

    The European Central Bank last month also repeated its “strong call” for governments to flank loose monetary policy with “adequate fiscal policies and structural reforms” to make growth stronger and more sustainable. President Mario Draghi in October told euro-area governments that the ECB policies give time for economic reforms to be undertaken.

    “If you have cheap money, it doesn’t necessarily go into projects with increasing efficiency, increasing productivity,” Nabiullina said. “Therefore, a consequence of low productivity of projects and the lack of meaningful growth in labor productivity is the low pace of economic growth, which harms everyone, all the countries, as we live in a globalized world.”

    ‘Difficult Task’

    The timing of policy normalization will depend on the specific situation in each country, according to Nabiullina. The governor praised the Fed for its “rather careful” approach to preparing the markets for possible tightening in the U.S.

    “Central banks of these countries face a very difficult task, of course, considering the deflation in these countries and the so-far limited impact of soft monetary policy,” Nabiullina said. “They are having to resort to artistry to achieve their goals.”

    While higher rates in the U.S. won’t have any “significant, immediate impact” on the Russian economy, the Fed’s policy turn can reach the world’s biggest energy exporter by affecting the price of oil and stoking market volatility, she said.

    Although central banks world over have bumped up against the limits of what they can accomplish, Nabiullina sees more than the failure of monetary stimulus.

    “The job of central bankers is now difficult in all countries,” she said. “The tasks are different, and indeed they are hard to solve, leading to the use of non-traditional instruments. But I think it speaks to the flexibility of central banks, their readiness to deploy even non-traditional instruments, expand their arsenal of measures to act on the economy in order to reach their goals.”



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    Re: Russian Economy General News: #8

    Post  kvs on Mon Dec 05, 2016 11:25 pm

    Nabiullina must be feeling the heat. The above screed is an apologia for her criminal interest rate policy. This cunt should be lined
    up against a wall and shot from a firing squad.

    1) Easy money in the OECD means zero or negligible central bank rates. It also means literal money printing as in the case of the US
    Fed's quantitative easing (QE).

    2) The above has zero relevance for Russia since there is no discussion about QE and the nobody is demanding the CBR set a zero
    interest rate. Nabiullina is engaged in sophistry to deflect blame.

    3) There is an actual and serious problem imposed on Russia's economy by the CBR and this cunt. Her 10.5% interest rate is
    grossly excessive. People need to understand that there is a nonlinear transition regime with interest rates from those that
    stimulate GDP growth to those that shrink the GDP. A rate of 10.5% is nowhere similar to a 5.25% rate. Compare the
    rates to zero and not to 100% or 1000%. The high limit is lethal for the economy. There is a natural level for the CBR's
    interest rates and that is about equal to the CPI. Currently the Russian CPI is 7% and falling. But the CBR should actually
    set the rate to CPI - 2% since it needs to be in the GDP growth regime and not the GDP contraction regime. The formula
    CPI - 2% is what OECD banks use to set rates and has a justification from historical experience. (Today this formula
    should not be applied since the CPI is about 2%).

    4) http://www.economist.com/blogs/freeexchange/2010/03/volcker_recession
    An 11% interest rate indicates an inflationary crisis. There is no inflationary crisis in Russia. The inflation surge in the wake
    of the late 2014 ruble forex drop and financial sanctions died by the end of March 2015 (gks.ru). It is now December 2016 and approaching
    two years. There has not been a single inflationary surge since March 2015 that would indicate an inflationary sensitivity that needs
    active CBR rate adjustment to control.

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    Re: Russian Economy General News: #8

    Post  Rmf on Mon Dec 05, 2016 11:33 pm

    not true eveybody is printing paper money every currency is tied to dollar so they have to follow to keep parity and not get too strong, russia basic money supply grew 3,5 times in 10 yrs, and expanded with bank loans reserves longterm credit grew 6 times, m2 is used for measuring inflation.... inflation in russia is normal and healthy and this "combat" is just b.s. , recession is normal and healthy thing in capitalism , its a must, and after that you return to growth.

    this too high interest rates means its cheaper to borrow abroad where is cheap printed money is availale then in russia so thats main reason debt increased. they should stop printing and stop hiding it.

    http://www.tradingeconomics.com/russia/money-supply-m0
    http://www.tradingeconomics.com/russia/money-supply-m2

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    Re: Russian Economy General News: #8

    Post  Austin on Tue Dec 06, 2016 7:32 am

    How Russia Outsmarted OPEC

    http://oilprice.com/Energy/Energy-General/How-Russia-Outsmarted-OPEC.html

    Russia’s 2017 draft budget had US$40 per barrel as a base scenario for oil prices, according to economist Natalia Orlova from Alfa banking group. Every US$1 above this level translates into around US$2 billion in budget revenues. The budget is currently being discussed.

    The country’s budget deficit for 2016 was estimated at over 3 percent by PM Dmitry Medvedev earlier this year, in case oil fell below US$50 again and stayed there long enough. It didn’t, so the budget for the year could be 3 percent or less.

    Saudi Arabia, on the other hand, has a deficit that is 20 percent of its GDP for this year despite massive spending cuts. So does Iraq. Kuwait’s deficit is 12 percent and UAE’s is 9 percent. And yet, these four countries will shoulder the bulk of the OPEC cut.

    Russia, along with Iran, could turn into the big winner of the agreement, enjoying high output and higher prices, which would allow it to further expand its global market share. Unless, of course, OPEC lies, as former Saudi Oil Minister Ali al-Naimi plainly said at a media event for the promotion of his memoir. “Unfortunately,” he said, “we tend to cheat,” commenting on how OPEC handles its only tool of market rebalancing: production cuts.

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    Re: Russian Economy General News: #8

    Post  Austin on Tue Dec 06, 2016 7:37 am

    CBR Chief seems to be extremely opposed to QE and Morgan Stanley calls her the most Orthodox Economist of developing Europe

    I think what CBR can do is try to implement QE on experimental basis , Print 5 trillion Roubles and lend it directly to Russian Government at say 3 % interest rate and let Government only invest in Infrastructure Projects in Russia .....Any project that can give good returns to Government , be it railways roads airports bridges etc.

    5 trillion roughly translates to ~ $80 billion not a small amount and not big either.

    Fed QE failed because 98 % of the money just went into market into inflating stock prices but into into infra project , Thats why DT is coming with 1 Trillion USD QE for funding infra projects

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    Re: Russian Economy General News: #8

    Post  Austin on Tue Dec 06, 2016 9:09 am

    The volume of the Russian defense orders will be reduced by 5% in 2017 - MIC
    06/12/2016 8:38:01

    http://militarynews.ru/story.asp?rid=1&nid=434537

    Seversk. December 6. Interfax-Siberia - The volume of state defense orders in 2017 will be reduced, according to deputy chairman of the board of the Military-Industrial Commission (MIC) of the Russian Federation Oleg Bochkarev.

    "The volume of public procurement in 2017 will be 5% less money than in 2016. Yes, probably, it will generally not as noticeable, although the 5% overlap inflation, but, nevertheless, reduction trend is already underway. And after 2020, it will only increase, "- said O.Bochkarev during the Council meeting on the development of defense industry enterprises in Seversk.

    According to him, businesses operating in the state defense order, in recent years engaged in the modernization of production, increasing the number of civilian products.

    In turn, the presidential envoy to the Siberian Federal District Sergei Menyailo expressed concern that the state defense order reduction can lead to various problems.

    "In still a large number of companies, where the share of the state defense order of 90 percent or more is clear that with a decrease in the order will have problems not only economic, but also social." - He said.

    Earlier, with reference to the Deputy Minister of the Russian Federation Yuri Borisov Harrows reported that the state defense order in Russia will be reduced by 5-7 years. "Just 5-7 years, the volume of public procurement will decrease We will achieve the necessary level of equipment.", - Stated in the Yu.Borisov XV scientific and technical conference on electronics issues in Saratov in September.
    CH Yu AB

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    Re: Russian Economy General News: #8

    Post  Rmf on Tue Dec 06, 2016 7:02 pm

    Austin wrote:CBR Chief seems to be extremely opposed to QE  and Morgan Stanley calls her the most Orthodox Economist of developing Europe

    I think what CBR can do is try to implement QE on experimental basis , Print 5 trillion Roubles and lend it directly to Russian Government at say 3 % interest rate and let Government only invest in Infrastructure Projects in Russia .....Any project that can give good returns to Government , be it railways roads airports bridges etc.

    5 trillion roughly translates  to ~ $80 billion not a small amount and not big either.

    Fed QE failed because 98 % of the money just went into market into inflating stock prices but into into infra project , Thats why DT is coming with 1 Trillion USD QE for funding infra projects
    russia has been and stil continues to print money!
    inflation si normal consequence!
    unlike in the west , the prices in russia are rising because they want to reach parity with the west in prices (housing ,moscow apartments ,etc.).
    ukraine and syria, is russias iraq and afganistan. war is inflationary, totally.
    how they can lend to the government???? then they are separate legal entity!!! then who owns CBR???

    KiloGolf
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    Re: Russian Economy General News: #8

    Post  KiloGolf on Tue Dec 06, 2016 7:27 pm

    Austin wrote: $80 billion not a small amount and not big either.

    It's as much as Russia spent on defense in 2015.
    So that particular amount is very high for Russia, be it it's in rubles or USD.

    miketheterrible
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    Re: Russian Economy General News: #8

    Post  miketheterrible on Tue Dec 06, 2016 8:56 pm

    No. It isn't a lot would increase debt but not by too much. Good thing is, Russian anything doesn't cost a fortune so investment doesn't need a lot. Plus their people aren't a bunch of lazy leeches like a specific group of people who post here are.

    QE is a method to obtain loans when you got nothing left and your society is basically living off of borrowed time and money. Russia doesn't have that problem. Cash flow has been fine and supply exists. It is CBR and its horrible policy that prevents that cash from actually being used properly.

    Infrastructure projects are being funded in two ways: private or foreign investment and government loans. Hyperloop as an example.

    KiloGolf
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    Re: Russian Economy General News: #8

    Post  KiloGolf on Tue Dec 06, 2016 9:19 pm

    Any amount of money that equals Russia's 2015 defense spending is high. It is what it is, no pocket money.

    miketheterrible wrote:Plus their people aren't a bunch of lazy leeches like a specific group of people who post here are.

    Gotta love the casual uninformed racism lol1

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    Re: Russian Economy General News: #8

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