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    Russian Economy General News: #4

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    Austin

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    Post  Austin Sat May 23, 2015 8:22 pm

    sepheronx wrote:
    Austin wrote:Silver Buy Should also be good , Keep a certain percentage of Gold and Silver

    Wish I could buy gold atm but cannot due to debt.  But once I have that settled, I will start a semi savings fund specifically for buying gold.

    Yes please do even if you are in debt , put atleast 10 % of your savings in buying Gold ( 999 purity ) and keep it with you , it would do well in the time of crisis
    sepheronx
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    Post  sepheronx Sat May 23, 2015 9:04 pm

    Austin wrote:
    sepheronx wrote:
    Austin wrote:Silver Buy Should also be good , Keep a certain percentage of Gold and Silver

    Wish I could buy gold atm but cannot due to debt.  But once I have that settled, I will start a semi savings fund specifically for buying gold.

    Yes please do even if you are in debt , put atleast 10 % of your savings in buying Gold ( 999 purity )  and keep it with you , it would do well in the time of crisis

    Yeah, that is what I plan.

    Scotiabank Metals eStore - Gold

    silvergoldbull.com - Gold Bullion

    these are were I look at. I normally order from CIBC banks, but regardless where I get it from, these are prices I am typically seeing.
    sepheronx
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    Post  sepheronx Sat May 23, 2015 9:32 pm

    This is a fantastic idea:
    1/10 g Silver Gold Bull Aurum Gold Thin Wafer
    Russian Economy General News: #4 - Page 24 Tjr2yRo

    I think many countries should start doing this. Start using their gold as a method of making a proper currency out of it. It would give REAL value to currency. Do the same for Silver as well. Or re-introduce coins made with pure silver.
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    Post  Werewolf Sun May 24, 2015 1:02 am

    sepheronx wrote:This is a fantastic idea:
    1/10 g Silver Gold Bull Aurum Gold Thin Wafer
    Russian Economy General News: #4 - Page 24 Tjr2yRo

    I think many countries should start doing this.  Start using their gold as a method of making a proper currency out of it.  It would give REAL value to currency.  Do the same for Silver as well.  Or re-introduce coins made with pure silver.

    The problem with that would be that your actual worth currency will end up being soaked up by IMF puppets to get your gold, it is better to make a currency with gold,silver or any other actual resources of value to back up the paper currency so the gold or silver value can only be handed over to citizens and control zoll with it so it does not end up being sold abroad.
    sepheronx
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    Post  sepheronx Sun May 24, 2015 6:01 am

    Werewolf wrote:
    sepheronx wrote:This is a fantastic idea:
    1/10 g Silver Gold Bull Aurum Gold Thin Wafer
    Russian Economy General News: #4 - Page 24 Tjr2yRo

    I think many countries should start doing this.  Start using their gold as a method of making a proper currency out of it.  It would give REAL value to currency.  Do the same for Silver as well.  Or re-introduce coins made with pure silver.

    The problem with that would be that your actual worth currency will end up being soaked up by IMF puppets to get your gold, it is better to make a currency with gold,silver or any other actual resources of value to back up the paper currency so the gold or silver value can only be handed over to citizens and control zoll with it so it does not end up being sold abroad.

    You make a good point. Certain laws could be instituted that currency made of gold and silver cannot be sent abroad, but exchanged for a "international" currency. All for domestic demand.

    I am still gonna purchase these for my own safe keepings.
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    Post  Viktor Sun May 24, 2015 9:44 am

    Nice thumbsup

    Rosstat: the unemployment rate fell to 5.8%

    CB: Russian Federation will release its national payment card

    International reserves have increased in Russia

    Russia's international reserves as at 15 May totaled $ 362.3 billion, according to the Bank of Russia.

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    Post  Austin Sun May 24, 2015 10:04 am

    Russia's Finance Ministry Proposes Steep Budget Cuts – Report



    Russia's Finance Ministry has proposed steep budget cuts through 2018 as the government battles to keep its growing deficit in check, news agency RBC reported Tuesday.

    The Finance Ministry on Tuesday presented four different state spending proposals to Prime Minister Dmitry Medvedev, RBC reported, citing two unidentified government sources.

    The first plan proposes cutting 864 billion rubles ($17 billion) from the 2016 budget, the report said. A preliminary 2016 budget was set in December at 16.2 trillion rubles ($328 billion). This plan would see progressively smaller budget cuts through 2018 and would avoid draining the Reserve Fund, an oil revenue-funded emergency fund.

    Finance Minister Anton Siluanov warned in late March that if Russia drained the Reserve Fund it would soon have to start printing money to cover its budget shortfall. Printing money would spur inflation, already at a 13-year high, and undermine investors' confidence in the Russian economy.

    The second plan would see the government trim just 58 billion rubles ($1.2 billion) from next year's budget, leaving massive cuts for later years. The measure would, however, empty out the Reserve Fund. A third variant would spread spending cuts more evenly across the three years but would also drain the Reserve Fund, the report said.

    The fourth and most radical proposal would have the government embark on a program of deep structural reforms, including steep cuts in social spending.

    Russia's budget has been hammered over the past year by slowing economic growth and an abrupt drop in the price of oil, the country's top export. Russia is set to see a budget deficit this year of about 2.7 trillion rubles ($54 billion), a figure equivalent to 3.7 percent of the country's gross domestic product.
    sepheronx
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    Post  sepheronx Sun May 24, 2015 4:35 pm

    So they are afraid of printing money - this is exactly what KVS was getting at. Money supply is already short. They just didnt get the memo.

    There is another option - raise taxes. A flat tax rate of 14% but trying to keep a modernized medical and educational structure just doesnt work.

    They are not very good at their job it seems. But I give them credit at looking to the future.

    Why not stimulate the two reserves by using them, like they are intended, and then replenish it like the foreign reserves? Heck, start transfering foreign reserves to these other two, as it was proposed bringing back the foreign reserves to Russia and making use of it. looking at just cutbacks when they are barely using their reserves, and barely helping their own country out, is bad practice. During tough times, ones is to stimulate the economy through government projects like infrastructure development and what not.

    They say they will have growth in 2016, so why make cutbacks for 2016 for 2018? I mean, these morons couldnt even predict how long it will take for their water to boil in a pot, so how do they predict that they will be short in reserves in 2018?

    Let us remind ourselves again that the two reserves, combined, is over $150B dollars. Add in foreign reserves which should definately be used, is over $350B. How do they propose spending that much money? I can see that they dont want deficit, so using reserve funds to pay for everything else outside, is gonna cost $58B. Yes, by 2018 that would indeed flush the reserve funds, but, why are they not adding more into it already? Already they added in to foreign reserves. Transfer from foreign reserves to these domestic reserve funds.

    They are doing what Kudrin was doing, and he was terrible as an economics minister - sitting on money and not actually using it.
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    Post  Neutrality Sun May 24, 2015 7:04 pm

    sepheronx wrote:So they are afraid of printing money - this is exactly what KVS was getting at. Money supply is already short. They just didnt get the memo.

    There is another option - raise taxes. A flat tax rate of 14% but trying to keep a modernized medical and educational structure just doesnt work.

    They are not very good at their job it seems. But I give them credit at looking to the future.

    Why not stimulate the two reserves by using them, like they are intended, and then replenish it like the foreign reserves? Heck, start transfering foreign reserves to these other two, as it was proposed bringing back the foreign reserves to Russia and making use of it. looking at just cutbacks when they are barely using their reserves, and barely helping their own country out, is bad practice. During tough times, ones is to stimulate the economy through government projects like infrastructure development and what not.

    They say they will have growth in 2016, so why make cutbacks for 2016 for 2018? I mean, these morons couldnt even predict how long it will take for their water to boil in a pot, so how do they predict that they will be short in reserves in 2018?

    Let us remind ourselves again that the two reserves, combined, is over $150B dollars. Add in foreign reserves which should definately be used, is over $350B. How do they propose spending that much money? I can see that they dont want deficit, so using reserve funds to pay for everything else outside, is gonna cost $58B. Yes, by 2018 that would indeed flush the reserve funds, but, why are they not adding more into it already? Already they added in to foreign reserves. Transfer from foreign reserves to these domestic reserve funds.

    They are doing what Kudrin was doing, and he was terrible as an economics minister - sitting on money and not actually using it.

    Look, we get very superficial news regarding the policy of the CBR. You always have to assume that the people over there know several things that we don't. Falling back on the basics of economics: printing money devaluates currency and drives inflation. Maybe they are scared to trigger that kind of effect when the economy is still recovering/stabilizing. Gradual lowering of the interest rates like they are doing right now is probably the most neutral policy and doesn't upset the economy.
    sepheronx
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    Post  sepheronx Sun May 24, 2015 9:16 pm

    A fantastic article: http://fortruss.blogspot.ru/2015/05/how-russian-industry-is-coping-with.html?m=1

    It appears there are plenty of financial schemes to help industries in Russia, as well as constant funding and assistance. Apparently they have already, quietly, introduced Ruble credit to ebterprises and aircraft makers. As well, convinced metallurgy companies to sell metals cheaper for for automotive industry. Agriculture manufacturing industries increased production by 1.5 times while US dropped by 26% or more. And, more production facilities for import substitution, biggest is pharmacutical company for production of HIV/AIDS vaccines/medicine.
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    Post  higurashihougi Mon May 25, 2015 4:17 am

    http://www.themoscowtimes.com/business/business/article/russian-cheese-production-surges-30-after-ban-on-western-imports/521891.html

    Russian Cheese Production Surges 30% After Ban on Western Imports

    Production of other banned food items lagged behind cheese but still saw steep increases. Meat production in the first four months of the year was up 13.5 percent to 680,000 tons, chicken rose 12.7 percent to 1.4 million tons and fish gained 6 percent to hit 1.4 million tons.
    Viktor
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    Post  Viktor Tue May 26, 2015 12:09 am

    Nice thumbsup

    For national payment system joined 76 banks
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    Post  max steel Tue May 26, 2015 12:46 am

    Austin wrote:Please make sure you keep 20-30 % of your saving in Physical Gold ( not ETF Paper Gold ) and dont keep Physical Gold In Bank else they will confiscate it.

    In the coming crisis and post it Gold will play a major role.

    LOL . AQUSTIN YOU ARE ADVISING OTHERS TO HAVE SAVINGS IN PRECIOUS METALS . BUT DID YOU HEAR ABOUT THE LATEST GOLD PONZI SCHEME INITIATED BY MODI GOVT ?

    http://www.zerohedge.com/news/2015-05-24/have-you-heard-india%E2%80%99s-newest-gold-ponzi-scheme

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    Post  Kyo Tue May 26, 2015 11:41 pm

    Austin wrote:
    sepheronx wrote:
    Austin wrote:Silver Buy Should also be good , Keep a certain percentage of Gold and Silver

    Wish I could buy gold atm but cannot due to debt.  But once I have that settled, I will start a semi savings fund specifically for buying gold.

    Yes please do even if you are in debt , put atleast 10 % of your savings in buying Gold ( 999 purity )  and keep it with you , it would do well in the time of crisis

    Bullish News For Precious Metals and Gold/Silver Get Paper-Smashed

    The big “buzz” over the weekend in the precious metals community was about the enormous short position in paper gold and silver taken by the bullion banks per the weekly COT report, published by the CFTC. The short position taken on by the big banks blew out by 54,832 contracts, which is the biggest one-week increase in history.  This translates into 159 tonnes of paper gold.

    Ostensibly this was done ahead of today’s June Comex gold futures options expiration, a time when the banks attack the price of gold using paper contracts and use the hedge fund stop-loss selling to cover their shorts and book easy profits.

    Free Financial Markets Are A Hoax

    Dave Kranzler and I have shown on numerous occasions that the bullion banks and the Federal Reserve make profits and protect the dollar by suppressing the prices of gold and silver. They do this by illegally selling huge numbers of uncovered shorts in the futures market. This illegal operation is supported by the so-called “regulatory authorities” who steadfastly refuse to intervene...It has just happened again.
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    Post  Viktor Wed May 27, 2015 5:56 pm

    Nice thumbsup

    Ten first selected import substitution projects

    no more foreign pipes thumbsup

    "Gazprom" will fully switch to the Russian pipe

    Inflation in Russia the fifth week kept at 0.1%

    Collection of taxes in the budget for 4 months increased by 14.7%


    no need for GMO eggs from GMO chickens or GMO poultry

    Rosselkhoznadzor has banned the import of poultry and eggs from the United States
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    Post  kvs Thu May 28, 2015 12:32 am

    Viktor wrote:Nice  thumbsup

    no need for GMO eggs from GMO chickens or GMO poultry

    Rosselkhoznadzor has banned the import of poultry and eggs from the United States

    So Kerry's meeting with Lavrov did not go well. When Obama accused Russia of becoming more aggressive in the Donbas as the Kiev
    regime restarted the shelling of civilians it was clear that this meeting flopped. Now Russia is sending concrete, as opposed to hot air,
    signals to Uncle Sam that it is not pleased.
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    Post  Werewolf Thu May 28, 2015 2:01 am

    Russia should start putting economical Sanctions on USA whenever they claim to have evidence of russia doing this or that, if they can not provide such evidence they claim to have within one month russia should start banning NASA, then Titanium (which will increase the costs for US trying to buy it somewhere else, after that precious metals and gems, then moving further to banning general metals like iron. Russia will not lose a single penny, the US will buy russian resources over other EU countries. If the enslaved IMF world does not want fair trade they can feel the power which russia undeniably has. Resources controll the markets Russia and China till this very date have never abused this leverage but i fully are for such reactions to the enslaving, genocidal and warmongering scum terrorist states.
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    Post  Austin Thu May 28, 2015 3:45 pm

    Looks like Dec event of Rouble crash was planned else where

    December attack on Sberbank was planned provocation – chairman

    The December depositors’ panic that resulted in about $6 billion withdrawal was provoked to destabilize the financial situation in the bank and the whole country, says Herman Gref, chairman and CEO of Russia’s largest bank, Sberbank.

    “Unfortunately, we could not avoid the panic. You saw what happened. But I can only say this: first, the attack was coordinated, thousands of sms-messages were sent in each region, including a large number of mailings done from foreign websites,” Grefsaid in an interview to Vedomosti published Wednesday, commenting on the biggest withdrawal of funds in Russian history.

    “The target was to destabilize the country's largest bank and financial situation in the country,” he added.

    Gref refused to give exact figures, but said that even though 300 billion rubles (about US$6 billion) is not a precise number, it is close to the total sum that citizens withdrew on December 18.

    The outflow was historical, we have never seen anything like that happen, said Gref.

    An investigation into Sberbank’s security service is in progress and has already paid dividends.

    “I would not like to disclose the results. But we do have specific sites and IP-addresses these mailings were sent from, we even know who these addresses belong to. Not all of them are within our reach. But there is no doubt it was a well-planned provocation,” said Gref.


    The biggest bank’s withdrawal in Russian history took place two days after December 16, so-called Black Tuesday, when the ruble hit a record low against hard currencies, trading 99.5 against the euro, and at 79 to the US dollar that day.

    A drop in oil prices and US-led sanctions pushed ruble to a 55 percent fall against dollar in 2014.
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    Post  Austin Thu May 28, 2015 3:50 pm

    Russia's Reserve fund to stand at $38.28 bln by end of 2015 — finance minister

    MOSCOW, May 28. /TASS/. The volume of Russia's Reserve fund at the end of 2015 will amount to 2 trillion rubles ($38.28 bln), the official Twitter account of the Finance Ministry press service said Thursday, citing Finance Minister Anton Siluanov.

    "The volume of the Reserve fund at the end of the year will amount to 2 trillion rubles ($38.28 bln). We will try to minimize spending, saving the reserves for the next years," Siluanov said.
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    Post  sepheronx Thu May 28, 2015 7:58 pm

    http://tass.ru/en/russia/797331

    And yet, this retard cant seem to even grasp the concept shown to him and proven by both media and institutions, that sanctions and this squabble has allowed Russian domestic industries to thrive and grow, especially agriculture. And somehow of course, he is tied to California, USA controlled "Gorbachev Foundation".

    I think he just dug himself a deeper hole with being associated with a guy whom was equally hated in Russia to Yeltsin.

    Actually, since Kudrin was out, there has been far more domestic development then ever. He truly was a lousy economics minister.
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    Post  Karl Haushofer Thu May 28, 2015 10:26 pm

    sepheronx wrote:http://tass.ru/en/russia/797331

    And yet, this retard cant seem to even grasp the concept shown to him and proven by both media and institutions, that sanctions and this squabble has allowed Russian domestic industries to thrive and grow, especially agriculture. And somehow of course, he is tied to California, USA controlled "Gorbachev Foundation".

    I think he just dug himself a deeper hole with being associated with a guy whom was equally hated in Russia to Yeltsin.

    Actually, since Kudrin was out, there has been far more domestic development then ever. He truly was a lousy economics minister.
    If Kudrin was/is a US asset it shows the reach of the Anglo hand. It can reach within the Kremlin walls. Kind of scary. Makes me wonder how many other traitors there are within Putin's inner circle.
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    Post  sepheronx Fri May 29, 2015 8:52 am

    Karl Haushofer wrote:
    sepheronx wrote:http://tass.ru/en/russia/797331

    And yet, this retard cant seem to even grasp the concept shown to him and proven by both media and institutions, that sanctions and this squabble has allowed Russian domestic industries to thrive and grow, especially agriculture. And somehow of course, he is tied to California, USA controlled "Gorbachev Foundation".

    I think he just dug himself a deeper hole with being associated with a guy whom was equally hated in Russia to Yeltsin.

    Actually, since Kudrin was out, there has been far more domestic development then ever. He truly was a lousy economics minister.
    If Kudrin was/is a US asset it shows the reach of the Anglo hand. It can reach within the Kremlin walls. Kind of scary. Makes me wonder how many other traitors there are within Putin's inner circle.

    Kudrin isnt in his inner circle, and hasnt been for a long time. He is an old monaterist and an idiot to boot. He showes his incompetence of taking oil and gas money, and not investing in it. He relied nearly 100% all investments be foreign. Now I may be exaggerating on last part, but under him, they didnt invest in anything. People blamed Putin for riding the oil and gas wave, but it was Kudrins era that was where it really was. After Kudrin, there was a big push for investments, development and getting away from pure energy as main and only contributor to GDP.

    After these people leave office, they end up trying to get any cushy job they can get to make more money. And western NGO's pay good and many peoples loyalty and their souls have a price.
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    Post  Austin Sat May 30, 2015 9:13 am

    The Finance Ministry expects to save 2 trillion reserve fund by the end of the year
    Finmarket


    Russian Finance Minister Anton Siluanov, at a meeting with representatives of the international rating agency Fitch announced that it anticipates a reduction of the reserve fund by the end of 2015 to 2 trillion rubles. He also noted the growth of RUSSIA'S budget in April-May to 4%. "The level of the contingency fund at the end of the year will reach 2 trillion rubles, will try to minimize the spending of reserves, saving them for the following years," the Minister quoted on the official page of the Ministry of Finance on Twitter.

    Commenting on the performance of the National Welfare Fund (NWF) for investment projects, the Minister said that the Government will approach this very conservatively. May 1, 2015 at the level of the contingency fund amounted to 3.950 trillion roubles on 1 January it stood at 4.950 trillion rubles. The Finance Ministry will transfer in October 1, 2015 Fund 402 billion roubles. oil and gas revenue for 2014, the Ministry earlier reported that in 2015, it is planned to use the contingency fund of about 3 trillion roubles, part of these funds-500 billion rubles. -already used to finance budget expenditures this year.
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    Post  Austin Sat May 30, 2015 9:14 am

    So what he is saying is he managed to save 2 trillion in this year budget so he will just use 2 trillion from Reserve fund , Instead of 3.9 trillion earlier ?
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    Post  Austin Sat May 30, 2015 9:23 am

    Finance Ministry came up with a way to limit budget expenditures

    To this end, it offers a new interpretation of the budgetary rules - clean it from the effect of devaluation

    http://www.vedomosti.ru/economics/articles/2015/05/21/minfin-pridumal-sposob-ogranichit-rashodi-byudzheta


    At the beginning of the next battle for the budget Finance Ministry is looking for ways to limit requests lobbyists. Following the request of President cut spending in the 2016-2017 biennium. by 5% in real terms, it will be difficult because of resistance from other ministries, the Ministry of Finance acknowledge. Each mikrodeystvie runs into opposition, said an employee of the ministry. Therefore, the Ministry of Finance chose a different way to automatically lower the expenditure ceiling.

    The Ministry of Finance will offer a new interpretation of the budget rules, said Minister Anton Siluanov: clean it from the effect of devaluation. Correct the rule and not have to change the law, it is only necessary to interpret it correctly, Siluanov said after the meeting with the President on the budget.

    According to the rule the costs should be calculated on the basis of the base price of oil - an average over several years - plus up to 1% of GDP. The purpose of the rules was to limit expenditure growth in the fat years and create a safety cushion the fall of commodity prices. But the right to play against the devaluation amid falling oil prices. According to calculations of the Ministry of Finance (is in "Vedomosti"), the basic price in 2016 is significantly higher than the forecast of Economic Development - $ 87 versus $ 60 (see. Table). A budget expenditures, calculated according to the current rule - nearly 1.5 trillion rubles. Even higher is incorporated in the existing law.

    Russian Economy General News: #4 - Page 24 Default-17zy

    The idea of ​​the Ministry of Finance - the base price of the dollar does not multiply in the Ministry of Economic Development forecasted exchange rate and at the rate that would have been at a base price, explained yesterday Siluanov. For example, in 2016, the base price of the budgetary rule - $ 87 per barrel, while the price of a dollar would be worth about 40 rubles., Not 56.8 rubles., As provided by macro forecasts, estimates Siluanov. The issue of applying the rule under discussion, he said.

    All options can be considered, but the government declined to an adjustment rule explains a senior government official. A new interpretation to avoid the "hump expenses" - strong growth in 2016, and then collapse, said a Finance Ministry official. Their ceiling in 2015 will fall to 15.1 trillion rubles., While current expenditure rule would have been significantly higher.

    There are two ways to cut costs, says a federal official: adjustment of regulations and a reduction of 5%. The second option calls Siluanov tough. A new interpretation of the rules makes it possible to reduce costs in 2016 (even more than in the form of reducing the costs of 5%), but 2017 is not so constrains them, while reducing the base price starts to weaken and the ruble pegged to it. In 2018, with the base price of a barrel of oil at $ 58 dollar will cost 62 rubles., While the Ministry of Economic Development forecast - 53.2 rubles. Therefore, the marginal costs are higher than under the current interpretation of the rules. The goal of the Ministry of Finance - is not automatically possible to cut costs and avoid volatility - surge and then slump, said his spokesman. Adjustment rules according Siluanova allow the Finance Ministry to achieve the goal: the federal budget deficit in 2016 should not be higher than 2.4% of GDP in 2018 is possible deficit budget.

    Among the options to reduce the cost of the least harmful to the economy Siluanov named revision of the indexation of social obligations, which under the current legislation should be indexed either on actual or on forecast inflation. Transfer to Pension Fund due to the indexation of pensions and payments Inflation will need to increase by 1.1 trillion rubles. in 2016, to 1.2 trillion - in 2017 and 1.7 trillion rubles. - In 2018. Social spending will squeeze other costs, says Siluanov. Among the ways to avoid it - linking the indexation of pensions to increased revenues FIU (it already is in the legislation, but can not be lower than inflation), told "Vedomosti" Deputy Finance Minister Maxim Oreshkin. But he did not say exactly how the Finance Ministry proposes to solve the problem legally.

    The current rule has shown to be ineffective, the director of the Centre for the Development of the Higher School of Economics Natalya Akindinova: use rate does not correspond to the macroeconomic situation. Treatment of the Ministry of Finance is adequate to the economic situation, I'm sure Akindinova, but expect the base rate is necessary not only for the price of oil, have to prepare another macroeconomic forecast.

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