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    Russian Economy General News: #3

    sepheronx
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    Post  sepheronx Wed Dec 31, 2014 3:10 pm

    http://itar-tass.com/en/economy/770159

    This is big, that has gone unnoticed. If they do this, than either forex will be a very diversed set of currencies and or other nations will have to have Rubles as reserve currency.
    magnumcromagnon
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    Post  magnumcromagnon Wed Dec 31, 2014 3:15 pm

    sepheronx wrote:

    The biggest money loss is beurocracy and social welfare. Cutting overall jobs will kill the economy (this is what US wants), so procurement has to stay the same.

    Cutting social spending is a terrible idea (and is far from a waste of money), austerity never works on it's own terms, it didn't work for the Weimar Republic, it didn't work for Yeltsin in the 90's, and it's not working for Greece now. The biggest weight bearing entity on the economy is not money being wasted but revenue not being collected. The Moscow Derivatives Exchange (where the head of it is a friend of John McCain, and a supporter of Maidan in Ukraine) is full of untaxed wealth of the 5-th column monetarists, if you slap a 2% 'Wallstreet Sales Tax' it could easily rake in tens of billions of Dollars of tax revenue while simultaneously weakening the monetarists, killing two birds with one stone.
    sepheronx
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    Post  sepheronx Wed Dec 31, 2014 3:21 pm

    http://itar-tass.com/en/economy/770141

    Didnt know a petrol shortage in Russia. Good business to open up more petrol plants for domestic and foreign consumption.
    sepheronx
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    Post  sepheronx Wed Dec 31, 2014 3:45 pm

    magnumcromagnon wrote:
    sepheronx wrote:

    The biggest money loss is beurocracy and social welfare. Cutting overall jobs will kill the economy (this is what US wants), so procurement has to stay the same.

    Cutting social spending is a terrible idea (and is far from a waste of money), austerity never works on it's own terms, it didn't work for the Weimar Republic, it didn't work for Yeltsin in the 90's, and it's not working for Greece now. The biggest weight bearing entity on the economy is not money being wasted but revenue not being collected. The Moscow Derivatives Exchange (where the head of it is a friend of John McCain, and a supporter of Maidan in Ukraine) is full of untaxed wealth of the 5-th column monetarists, if you slap a 2% 'Wallstreet Sales Tax' it could easily rake in tens of billions of Dollars of tax revenue while simultaneously weakening the monetarists, killing two birds with one stone.

    Actually, what I find funny is how taxation in Russia is so low compared to a lot of countries, but they have a ridiculous amount of people that do not pay taxes as they are paid under the table. After some adjustments to taxation, Russia raked in ridiculous amounts of money earlier this year, while taxes are still very low.

    I didnt say cut social spending but privatize some aspects of it and or change how its done. For instances, if people make a large sum per year, then maybe they can get their own health insurance to reduce overall costs on medical care.

    Or go to a floating tax system rather than fixed rate of 14%. This will bring in loads of money. If Russians want to live the western socialist style, then charge them like a western system does. Make equivelant of $60,000 a year? 24% income tax...
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    Austin

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    Post  Austin Wed Dec 31, 2014 3:46 pm

    Russia’s international reserves hit new 5-year low at $388.5 bln as of Dec 26

    http://itar-tass.com/en/economy/770162
    kvs
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    Post  kvs Wed Dec 31, 2014 3:47 pm

    It just points to the fact that the CBR's reserves are almost 3/4 of the M2. This gives the CBR a lot of intervention power on the domestic
    market. For example, to secure the banking system in case of panics.

    This is one of the pluses of not having an inflated "financial industry" economy like the USA. The USA cannot hope to stabilize its financial
    system if a panic develops.

    Austin wrote:kvs any one , Any idea what they are trying to say ?


    CB: Russia's international reserves cover the money supply by 71%


    The ratio of the money supply and international reserves is one way of assessing the adequacy of international reserves


    MOSCOW, December 31. / TASS /. Covering foreign exchange reserves of the money supply (M2, cash and non-cash money in circulation) for 11 months in 2014 increased from 64 to 71%

    This conclusion follows from the published statistics on December 31 CBR.

    As explained earlier the first deputy chairman of Russia Ksenia Yudaeva, the ratio of the money supply and international reserves is one way of assessing reserve adequacy.

    On 1 December 2014 the volume of Russia's international reserves fell to $ 418.88 billion, but because of the devaluation of the ruble reserves now cover a larger volume of money supply than at the beginning of the year (71%). M2 money supply for 11 months decreased by 2.5% to 30.63 trillion rubles.

    At the beginning of 2014 foreign exchange reserves were at $ 509.595 billion, which covers 64% of the money supply M2 on January 1, 2014 - 31.405 trillion rubles.

    During the economic crisis of 1997, the most stable in terms of the coverage ratio of the money supply turned Hong Kong, the volume of international reserves that exceed the money supply by 15 times.

    According Yudayeva, Russian reserves enough for a year of imports, their "much in terms of GDP," but not all of the money supply is covered, celebrated in June the first deputy chairman, stressing that "enough reserves to control the situation on the case of financial instability. "
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    Austin

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    Post  Austin Wed Dec 31, 2014 3:52 pm

    ^^ Thanks kvs

    Can some one tell me how much Forex does Russia Earn Each year to add to its kitty.

    The forex today stands at $388 billion and  December 2013 it was $512 something.

    So between Jan 2014 and Dec 2014 how much forex was added via exports/surplus etc ?

    Seem like Russia is not adding Forex but draining it.
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    Post  Vann7 Wed Dec 31, 2014 3:53 pm

    sepheronx wrote:Cutting defense spending now would be a bad decision unless it does not effect modernization of the armed forces (procurement). As I mentioned before, MIC is 25% of the industrial industry of Russia and possibly more than half of the tech industry. What you are suggesting austin, would effectively help decrease GDP and long term budget overall as companies would lay off their employees (defense is one of the largest, if not largest, in terms of employment in Russia) and the amount of tax revenue will drop significantly as well increase poverty thus the increasing overall costs on social benefits. This his how it is all tied together. So if they cut procurements, then it will utterly destroy a huge portion of Russias industrial and manufacturing base, and leave plenty without a job.

    So this is why they wont cut it. Although, professional soldiers wages should be cut, as they are one of the highest earners in the country. And Shelve some R&D for a while like the new destroyer. Simply concentrate on building newer vessels.

    The biggest money loss is beurocracy and social welfare. Cutting overall jobs will kill the economy (this is what US wants), so procurement has to stay the same.


    Somewhere it was posted ITAR news..where Russia defense minister told they will not cut defense budget.. regardless of the weaker ruble and western sanctions. That they defense spending will actually increase in 2015 by 20% and by 40% in 2017. Even Ukraine is increasing its defense spending.. as broken as they are.. Russia have many ways to handle western sanctions and low oil prices. In my opinions cuts cannot be done neither in Defense because they create technological jobs and move thousands of companies in Russia. Neither in Space exploration for same reason. The best place for a nation to do cuts when they are under high security risk of a war is social programs..

    If i was Putin ,i will cut the sports spending budget by 90%. if not 95%. and make That every player be responsible for their own training and thats it... Winning is not really important in any sport competition other than bragging rights. The building of infrastructure and roads however is very positive.. It promotes Business internal ones and external when you enter a city that is new with modern infrastructure and new roads. So Russia should continue to welcome any international event ,like Sochi and FIFA 2018 stadiums.. but cut most of the budget for training.

    Social Wellfare is important.. but in the short time in moment like this..that Russia is under major attack ,it should be the last priority of Russia. It have to be done right however.. or you will end with social unrest and protesters everywhere.
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    Post  kvs Wed Dec 31, 2014 3:56 pm

    magnumcromagnon wrote:
    sepheronx wrote:

    The biggest money loss is beurocracy and social welfare. Cutting overall jobs will kill the economy (this is what US wants), so procurement has to stay the same.

    Cutting social spending is a terrible idea (and is far from a waste of money), austerity never works on it's own terms, it didn't work for the Weimar Republic, it didn't work for Yeltsin in the 90's, and it's not working for Greece now. The biggest weight bearing entity on the economy is not money being wasted but revenue not being collected. The Moscow Derivatives Exchange (where the head of it is a friend of John McCain, and a supporter of Maidan in Ukraine) is full of untaxed wealth of the 5-th column monetarists, if you slap a 2% 'Wallstreet Sales Tax' it could easily rake in tens of billions of Dollars of tax revenue while simultaneously weakening the monetarists, killing two birds with one stone.

    This is an excellent point. These vacuous financial transactions need at least a 1% tax. Here in Canada I am sick and tired of the f*cking social engineering.
    The gubbermint actually taxes the interest people get on money that has been taxed before. The problem is that they pretend that the inflation rate is
    zero when they calculate this interest. GICs only yield 2.x% which is basically at official inflation level and actually much less. There should be
    no tax on interest at or below inflation level. Instead of tax raping the people, the parasites in Ottawa should tax the speculators and also stop giving
    the oil industry massive tax breaks.

    Putin's government should stop emulating the vermin in NATO. Keep the taxes on the people low and tax all the wheeling and dealing by business.
    They will screech like fight taxation tooth and nail, but they are the ones that should be paying. If they threaten to move abroad, then they should
    lose access to the Russian market. This way they can decide the cost-benefit ratio of their racket.
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    Post  Austin Wed Dec 31, 2014 3:59 pm

    I was hoping they would add like $100 to Forex but it seems to me that due to low Oil Price and subsequently Gas Price which is linked to oil , They would be fortunate to add even 40-50 billion in 2015 in forex kitty if average Oil price is at $50-60 in 2015
    sepheronx
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    Post  sepheronx Wed Dec 31, 2014 4:18 pm

    Austin wrote:I was hoping they would add like $100 to Forex but it seems to me that due to low Oil Price and subsequently Gas Price which is linked to oil , They would be fortunate to add even 40-50 billion in 2015 in forex kitty if average Oil price is at $50-60 in 2015

    They are currency repo usd to banks (which will end up back at CBR) but gold is mined in Russia, and they are ever increasing it. Petrol is the next thing to look at for sales outside of Russia, and building more petrol plants.
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    Post  par far Wed Dec 31, 2014 4:39 pm

    flamming_python wrote:
    TR1 wrote:
    sepheronx wrote:It all depends. Have they lost income and savings? They spent their own money on junk.

    Uh yes. Income is not keeping up with inflation by a long shot. How about old people and their pensions? Once again, they get put out to the pasture like in the 90s.

    Old people and their pensions got raised a lot in recent years.
    All social benefits did.
    It's a case of 1 step back, but a few steps forward were taken earlier on so no biggie.

    Compare that to Europe and the austerity measures; most of South and Eastern Europe got hit hard; some of Northern Europe too. Pension ages went up, social benefits got cut-down. Family tax benefits nullified. Additional taxes levied. Regional subsidy cuts. Healthcare cuts. Lowering of minimum wages. Public sector employees laid off in their thousands.
    That hasn't happened in Russia. Nothing like it. Not in 2008 either, during the GDP plunge. Actually more social support to vulnerable parts of the population has been introduced since then, raises in military pay, more pro-birth government support and some government programs for SMEs, innovative companies, etc... too

    For sure Putin didn't create an economic miracle. But then what would you call Europe's situation over the last 5 years in comparison? Do you know what their unemployment levels are like? In Russia it's among the lowest of any major country in the world, growth or no growth.

    Savings got kicked in the balls with devaulation and currency scrambles.

    Unfortunately yes, but still it's not 1998. It's not even 2008. Actually, everyone's savings are more or less alright, considering that for now all that this affects is spending power on foreign imported goods, and holidays abroad. Of course there will be a correction, but its magnitude will rather depend on whether the Central Bank and Russian government can get the rouble under control. If they can, and stabilize it in the 50s to a dollar, perhaps the high 40s, then the impact won't be too great.

    At the end of the day - savings are mostly about one thing - saving for property. Property prices haven't gone up, at least not any more than they've been growing in all the years before. If property prices actually end up falling, just perhaps, well then actually people's savings will end up being worth more than they were before. It's perfectly possible. Just goes to show that a little devaluation against foreign currencies is not the end of the world, nor the end of the economy.

    As for spending on junk, most people care about that much more than Armata MBTs or supposed foreign policy independence. It is the same in any nations populations.

    I care about Armata MBTs cheers

    Anyway, yes most people are apolitical, they don't hold any grudges against Europe or anything. But at the same time, there is a sort of understanding here, that the crisis is artificial and due to political tensions.

    TR1 wrote:And who do you think will contract more next year, the big EU states or Russia?
    Which population has lost more in real income? Savings?
    Seriously, should we sit here and go "Well thank fuck Germany is barely growing this year, that really makes things better for us in comparison". Come on.

    Think about it for a second. Their purchases from us are assured. They've put no sanctions on our exporters. And most of what they buy are raw materials that they need one way or the other. The value-added products we produce - may actually get more popular there as now they're cheaper due to the deevaluation.

    When it comes to the other way 'round however, we find that in terms of them exporting to us; they've mostly either sanctioned themselves, been sanctioned, or been priced out of our own market.
    All those multi-billion dollar deals Western oil/gas conglomerates secured in some of Russia's (and the world's) largest oil and gas fields - now they're all on hiatus due to the prohibition on selling oil-drilling tech to Russia. Stupid isn't it? What do you think is easier - for them to find other mega-gas & oil fields and win contracts in them, or for Russia to purchase tech/bring in partners from Asia and/or develop the neccessery technology by itself? In fact this is a synonym for most of the 'economic damage' that Europe has inflicted on Russia. Most of it has actually hurt itself more. Russia helped out with the agricultural bans of course. And as for the rest of the stuff, and Europe does export a lot of stuff to Russia; it's become a whole lot more expensive in Russia and people/companies will prefer Russian domestic alternatives instead more and more.
    Russian companies win, European companies lose.
    Russia is one of Europe's largest trading partners - they export over $100 billion in goods, and nearly $20 billion in services to Russia each year. Yet under US pressure and their own misguided policies; they're losing the Russian market.
    Yet is Russia losing the EU market? No, not at all, in fact it might even strengthen its positions there.

    The key factor is that Europe needs what Russia produces. But by and large, Russia doesn't need what the EU produces - given that there are alternative suppliers in Asia, and among its own companies in some cases. A lot of important stuff, Russia has encouraged to be set-up production for in Russia; wood processing plants, automotive plants, consumer goods production, etc... a lot of European companies have set up production in Russia, and now they will be even more encouraged to do so; given that the country is less keen on imports now and more keen on domestic production.

    Or take the South Stream cancellation. So fine, Europe and the US pressured Bulgaria into creating problems for South Stream. The US wanted it to be cancelled, Europe wanted Russia to go along with the 3rd energy package. Result? Russia cancelled it, made a new pipeline deal with Turkey.
    US got what it wanted. Did Europe? Hell no. Here they had a chance for their poorest members, to gain hundreds of millions of dollars yearly in transit fees from Russia. For Bulgaria, Hungary, Greece, Italy - to receive gas cheaper than via any other means. For thousands of jobs to be created in construction, local engineering enterprises to be involved, hundreds of European specialists to be trained and employed by Gazprom and other involved partners. And they blew it.
    Now Turkey takes home the prize; they'll be controlling everything, and Europe will get more expensive gas. Gazprom's involvement will end at the Greek-Turkish border and they don't care what happens to the gas after it crosses into Europe. Russia loses a little, as it strengthens Turkey's hand (who is a competitor), and gives Turkey a discount - but Europe loses a whole lot more.

    The main way that Europe hit Russia, is with the withdrawal of investment, bank loans, some high-tech joint-ventures, military-tech joint-ventures, etc... I mean these things hit the European partners as well, but it hit Russia too.
    Otherwise - the bulk of the damage has been done by the US, and its oil price manipulation, speculation on the ruble and other financial instruments; rating downgrades of Russian assets and banks, controls on liquidity, anti-Russian economic propaganda for the investors by the US media machine, etc...
    And the US is virtually not suffering at all. Its allies are. But not the US.

    So yeah, between the US and Russia - the US is not going to feel it one bit. The EU though - has been doing nothing but shooting itself in the foot. And with their own mass-protests, lack of confidence in politicians, spying scandal with the US, and other internal problems; not to mention the economic issues; unemployment, continuing austerity, sliding back into recession - they're the ones who really can't afford a confrontation with Russia. Russia itself can hold out for years. Europe - nope.

    Do I really need to go on?

    No change can fundamentally happen while the country is ruled by a kleptrocratic elite, a brainwashed bought off population and an upper class of theieves.

    You can say that about any country. Media is government-controlled, population is shaped by its own consumerist desire and what Putin says, the oligarchical elite are hopelessly corrupt and nepotism reigns supreme, etc... sure. My point is that you'll hardly find many countries to take examples from.

    It is fundamentally incompatible with entrepreneurship and honest business. Please, don't post some token product as proof that Russia is moving up in the world.  

    Russia did actually move up in the business rankings in recent years. There have been some measures to support SMEs.
    Illegal practices and all sorts of law-breaking did start getting cracked down starting from 2008-2009 or so; across all of Russia's legal landscape - slowly, Russia's courts have begun to be taken seriously.

    Maybe the tighter wallets of 2015 will make those have-nots rethink their feelings regarding who they support politically.

    Certainly not Navalny & co. though. People know who secures their interests - and who doesn't.

    Actually I am glad oil has plumetted. Time to wake up and see Putin's economic "miracle" for what it really is.

    I'm glad too. It's a hell of a drug, but now's the perfect opportunity for Russia to diversify.

    As for miracle - Putin actually did promise a miracle back in 2012. 6% economic growth. Like we're China or summit. Well I wanted to believe it. But of course it turned out to BS. And I do actually blame him - he hasn't done enough. He hasn't made the government do enough. He hasn't made the Central Bank be more flexible. He hasn't driven more reforms, or done more to improve foreign perception of Russia's investment climate. The man's not a reformer, he's a stabilizer. He has stabilized Russia, but it's time for Russia to enter a new era.

    TR1 wrote:2015 is gonna be great. The government is being obstinate on any idea of cutting the military budget. They don't want to eat away at the entire reserve fund to cover the budget shortfall.

    The military budget shouldn't be cut. One of the deputy ministers made the case against it earlier on. She basically made the point that to cut the program half-way through - would actually make the whole thing much more expensive later on, when the process of re-equipment and modernization has to be resumed from scratch or from hiatus. Because of course it will have to be resumed anyway - 60% of the Russian military's equipment is out of date, a far more critical situation than in any NATO country - and it isn't getting any newer. In that she's completely correct - continuing with the program in full is the most cost-effective option; rather than pausing and starting and pausing and starting and incuring huge costs.
    Of course, when it comes to things like Aircraft Carriers, those can be put on the back-burner, but then there were never any real plans for them drawn up anyway; most of the big spending is down to modernization programs to equipment in dire need of it (MiG-31BM, T-72B3, Su-30SM, Kirov cruisers, Su-25SM, Kuznetsov carrier), while others are focused on next-generations of equipment that in many cases are replacing tech from the 70s completely (PAK-FA, Su-34, Kurganets/Bumerang, Armata MBT, Tornado MLRS, Gremyashyj corvettes, Gorshkov frigates, Mi-28N, new power generation/electronics/communications equipment, Tigr vehicles, Typhoon trucks). In some cases the old stuff was produced outside the USSR or otherwise can't be produced again at all and bringing in new generations is thus even more of a priority (PAK-DA, Sarmat, Ivan Gren, Iskander-M, Il-112, Voronezh EW radars, Yak-130, Military satellites & GLONASS).
    Only a minority of programs really attempt to improve on newish tech or replace things that are already modern and capable (Pantsir-S1, Koalitsiya artillery, Volk vehicle, S-400, BMD-4Ms, Yars, Ratnik infantry set, Lada sub, Buk-M3).

    The other point is that military spending is a driver of the economy, essentially its a way for the government to reinvest tax money back into the economy without incurring inflation. Just about all that money goes back into Russia, into Russian enterprises, many of which are securing export orders with the help of R&D and new developments that their cash flows from Russian MoD orders partially fund. Some of these enterprises are moving into dual-use technologies too, and making new products for the consumer markets. Of course government support forever is hardly a good outcome, but in this case the stimulus is temporary, until the winding down of the rearmament program in 2020 or so - and until then for the next 5 years, the military spending will help strengthen Russia's next breed of high-tech industrial companies.

    One last thing. Whether we like it or not, agree with the politics, decisions or not - we all have to accept that the likelihood of conventional conflict, at least on some limited scale, between NATO and Russia - has gone up considerably. Already we have military tensions at the border - or rather in the airspace. That could extend to naval tensions as it did in Sweden. Then land border tensions. There has been a sharp increase in rhetoric - and mainly from the NATO side. Some NATO members are even openly calling Russia a terrorist state. Others are now getting as involved in the Ukrainian conflict, as Russia is; moving the whole thing closer to a proxy-war - right in the middle of Europe.
    It's not excluded that the Baltic retard leaderships and their hordes of loyal nationalists won't start provoking ethnic Russians in their respective republics. Who knows what this could lead to.
    But I am pretty sure that fully-equipped, very modern conventional forces, and enough of them to cover all of Russia's borders with Europe - are more important now than at any point since the collapse of the Berlin wall.

    They need to spend money subsidizing Crimea now as well

    Well I didn't see you or anyone else complaining - when they took it over.

    which given old oil prices wouldn't have even been an issue, but now will eat away at pension fund.

    Over 70% of the Russian population supported the Crimea reunification/annexation/etc... at least it was a decision of the people. I think they'll be honest enough, to at least blame themselves if they end up paying for it - a big part of the reason the Crimea was annexed is because Russian domestic opinion would have it no other way. And Russian domestic opinion, while mallable and faultable and only human, is genuine - and is actually a potent force in Russia, unlike in many countries in Europe and North America where it's simply either ignored, or manipulated to whatever the political elite decrees.

    I wonder how long it will take for people to start getting angry when their government welfare and subsidies fall, or at best don't adjust for the inflation at all.

    I don't think people will be angry at the government. Like I said, it's a fight we picked ourselves. I didn't support the annexation of the Crimea. But I did support helping the Donbass, and I standby that decision and am ready to answer for the consequences. Most of the Russian population supported the Crimea annexation. About half supported involving Russia further in the Ukraine; specifically the Donbass rebellion; perhaps more.
    I doubt any opposition movement will ever rise to prominence - on the slogan of 'Putin led us into messing into Ukrainian internal affairs!'. The Russian opposition politicians who publicly voiced similar views have pretty much been disowned - not that Russian society is so nationalistic; it's just that their duplicity is astounding, and it's impossible to feel any sympathy with the Ukrainian side regardless; they're a bunch of retards and criminals.

    If there's any anger against the government - it's the one coming from the other side - that Putin didn't do more to help the Novorussians. But they're not really a potent force for the moment either.



    Very well said and very well explained flamming python, Russia is getting hit but so is Europe. One more thing to add is that Russia can turn to the BRICS countries(and they have already done), if they need help. The sanctions on Russia don't have to do anything with the situation in Ukraine, it has more to do with oil and Russia helping Assad, thus derailing the greater Irsarel project. The Zionists are the one doing this, cutting defence budget is ludicrous and dangerous, the modernization plan can be pushed back a few years but for the love of god don't cut the defence budget.
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    Post  Austin Wed Dec 31, 2014 4:52 pm

    Yes the sanctions has nothing to do with Russia nor would sanctioning help in solving the problem , much like the Gay propoganda that MSM carried during Sochi was little to do with Olympics.

    Its a good opportunity for Russia to reorient its Economy and Financial system.

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    Post  sepheronx Wed Dec 31, 2014 5:04 pm

    Austin wrote:Yes the sanctions has nothing to do with Russia nor would sanctioning help in solving the problem , much like the Gay propoganda that MSM carried during Sochi was little to do with Olympics.

    Its a good opportunity for Russia to reorient its Economy and Financial system.

    +1

    Agreed.
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    Post  kvs Wed Dec 31, 2014 10:53 pm

    http://oilprice.com/Energy/Oil-Prices/Saudi-Facing-Largest-Deficit-In-Its-History.html

    The nearly 50 percent plunge in the price of oil during the past six months is expected to leave oil-rich Saudi Arabia with its first budget deficit since 2011 and the largest in its history.

    The budget, announced on Dec. 25, will include spending during fiscal 2015 of $229.3 billion, higher than in 2014, despite revenues estimated at only $190.7 billion, lower than in the current fiscal year. That would leave a deficit of $38.6 billion.

    All the yammering about Russia failing and how the Saudis will destroy Russia like they did the USSR. Hilarious BS.
    Kyo
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    Post  Kyo Wed Dec 31, 2014 11:21 pm

    Some interesting economic data here:

    http://sputniknews.com/columnists/20141231/1016436434.html
    kvs
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    Post  kvs Wed Dec 31, 2014 11:59 pm

    Kyo wrote:Some interesting economic data here:

    http://sputniknews.com/columnists/20141231/1016436434.html

    From the article:

    Now let’s take a look at Russian fundamentals. Russia’s government debt totals only 13.4% of its GDP. Its budget deficit in relation to GDP is only 0.5%. If we assume a US GDP of $16.8 trillion (the figure for 2013), the US budget deficit totals 4% of GDP, versus 0.5% for Russia. The Fed is essentially a private corporation owned by regional US private banks, although it passes itself off as a state institution. US publicly held debt is equal to a whopping 74% of GDP in fiscal year 2014. Russia’s is only 13.4%.

    And Russia is the country that is supposedly messed up. attack
    magnumcromagnon
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    Post  magnumcromagnon Thu Jan 01, 2015 2:11 am

    kvs wrote:
    Kyo wrote:Some interesting economic data here:

    http://sputniknews.com/columnists/20141231/1016436434.html

    From the article:

    Now let’s take a look at Russian fundamentals. Russia’s government debt totals only 13.4% of its GDP. Its budget deficit in relation to GDP is only 0.5%.  If we assume a US GDP of $16.8 trillion (the figure for 2013), the US budget deficit totals 4% of GDP, versus 0.5% for Russia. The Fed is essentially a private corporation owned by regional US private banks, although it passes itself off as a state institution. US publicly held debt is equal to a whopping 74% of GDP in fiscal year 2014. Russia’s is only 13.4%.

    And Russia is the country that is supposedly messed up.  attack

    It's crazy how some of the most notorious character's on this forum (you know who you are) scream bloody murder, and impersonates Chicken Little and claim the sky is falling. In reality Russia and the other BRICS countries have remarkably low debt to GDP levels, if you take North America and the Eurozone, if you got rid of the immense deficits over night they would start looking less and less like 1st world countries and will start to devolve in to 2nd world countries within a 10 to 20 years span. Were already starting see this happening in places like Greece, Italy, and Spain.

    I'm tired of hearing our resident 'anglophile' claim the sky is falling, when Russia came back from far worse...such as depopulation of 20-30 million people post-WW2. So long as the Russian govt. doesn't engage in a massive austerity campaign, then over time the economy should recover.
    magnumcromagnon
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    Post  magnumcromagnon Thu Jan 01, 2015 3:07 am

    If there was any question whether Lithuanian politics were dominated by delusional half-wits, question no more:

    avatar
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    Post  Austin Thu Jan 01, 2015 3:17 am

    Any reason why Rouble is falling now its 60 ?
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    Post  kvs Thu Jan 01, 2015 3:22 am

    Austin wrote:Any reason why Rouble is falling now its 60 ?

    Because the forex market is not an optimal free market. There are some big players (Soros and friends) including
    state actors like the USA and UK (recall "Call me Dave" Cameron claiming credit for bringing down the ruble) that steer
    it. We will see anti-market pricing for the ruble for possibly years to come.

    Given the above sad facts, Russia needs to tax the hell out of forex transactions and exports which divert food
    to the west. It needs Draconian methods to crush speculators. Without this 5th column the scum that are
    attacking the ruble from abroad will have nothing to gain. They are hoping to undermine Russia from within
    by creating panic.
    Hannibal Barca
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    Post  Hannibal Barca Thu Jan 01, 2015 4:59 am

    magnumcromagnon wrote:If there was any question whether Lithuanian politics were dominated by delusional half-wits, question no more:



    25 years passed since the end of the socialist joke and yet not a single major victory against USA have happened. This is the result of it.
    Like it or not Russia's size is to battle with USA, China and the likes and have an easy pass against midgets like Germany, UK and the likes.
    Either you confront and beat USA either you go down in history and get shredded into peaces.
    That's the price of a country with 17*10^6 km^2
    The sooner Russians realize this the better.
    A second Punic war is inevitable and better win this time...
    GarryB
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    Post  GarryB Thu Jan 01, 2015 5:25 am

    A very low value rouble just makes Russian products rather more attractive... this should be an opportunity for Russian producers to look to export their goods more aggressively.
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    Post  AlfaT8 Thu Jan 01, 2015 5:54 am

    Still waiting for Russia's Amazon. Twisted Evil
    Regular
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    Post  Regular Thu Jan 01, 2015 6:34 am

    magnumcromagnon wrote:If there was any question whether Lithuanian politics were dominated by delusional half-wits, question no more:

    Haha funny to see ex commies now holding Euros with smiles in their face.
    In my time I've seen 3 currencies change. Meh, as Lithuanian I don't see anything positive about accepting Euro.
    The propaganda about it was sickening. Not long ago Eurokomissar from Germoney said that we are joining thriving economical family. scratch
    Personally I don't think anything will change at all. Not when our main economical partner is Russia and we are not really western orientated when it comes to export so if we are not gonna re-orientate. It was said EURO will give 1.5 percent boost to GDP next year.
    We make Europe laugh by comparing our wages to theirs. Even Greece has bigger wages and pensions.

    http://en.wikipedia.org/wiki/List_of_European_countries_by_average_wage

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