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    Russian Economy General News: #7

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    whir

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    Post  whir on Thu Dec 08, 2016 2:37 pm

    Austin wrote:Will a Modi-style clampdown on black money work in Russia?
    Forcing people to put their saving into banks is only going to foster poverty in the next economic downturn.
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    Post  miketheterrible on Thu Dec 08, 2016 3:30 pm

    Austin wrote:Will a Modi-style clampdown on black money work in Russia?

    http://in.rbth.com/blogs/tatar_straits/2016/11/11/will-a-modi-style-clampdown-on-black-money-work-in-russia_646575

    didn't work for India: http://www.zerohedge.com/news/2016-12-07/indian-economy-crashes-modis-black-money-theory-collapses
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    Post  kvs on Thu Dec 08, 2016 11:51 pm

    whir wrote:
    Austin wrote:Will a Modi-style clampdown on black money work in Russia?
    Forcing people to put their saving into banks is only going to foster poverty in the next economic downturn.

    +1000

    These "black" money crackdowns are retarded. That money will circulate in the economy regardless. So there
    is zero justification for making it "clean". Of course, I am ignoring the obvious pretext: tax collection. Putin will
    be sorely disappointed that such crackdowns will not bring more money in the long and medium run. But I am
    sure he is aware of this since it was on his watch that taxes were reduced substantially which resulted
    in more tax revenue and not less.
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    Post  Singular_Transform on Fri Dec 09, 2016 7:55 pm

    kvs wrote:
    whir wrote:
    Austin wrote:Will a Modi-style clampdown on black money work in Russia?
    Forcing people to put their saving into banks is only going to foster poverty in the next economic downturn.

    +1000

    These "black" money crackdowns are retarded. That money will circulate in the economy regardless. So there
    is zero justification for making it "clean". Of course, I am ignoring the obvious pretext: tax collection. Putin will
    be sorely disappointed that such crackdowns will not bring more money in the long and medium run. But I am
    sure he is aware of this since it was on his watch that taxes were reduced substantially which resulted
    in more tax revenue and not less.


    Black money = untaxed money = higher inflation = low level of living for the masses
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    Post  kvs on Fri Dec 09, 2016 11:11 pm

    Singular_Transform wrote:
    kvs wrote:
    whir wrote:
    Austin wrote:Will a Modi-style clampdown on black money work in Russia?
    Forcing people to put their saving into banks is only going to foster poverty in the next economic downturn.

    +1000

    These "black" money crackdowns are retarded.  That money will circulate in the economy regardless.   So there
    is zero justification for making it "clean".   Of course, I am ignoring the obvious pretext: tax collection.   Putin will
    be sorely disappointed that such crackdowns will not bring more money in the long and medium run.   But I am
    sure he is aware of this since it was on his watch that taxes were reduced substantially which resulted
    in more tax revenue and not less.


    Black money = untaxed money = higher inflation = low level of living for the masses

    Where did you pull the "untaxed money = higher inflation" equality from? Perhaps you could provide some references
    for this profound equation.

    You do know that the government spends tax money, do you? So obviously it contributes to inflation.

    As an aside, black money =/= counterfeit money. It is money that hides from taxes. So there is obviously
    nothing wrong with it. And this discussion, trolled by Austin, is brain dead since Russia's black economy has
    been shrinking since 2000:

    https://www.rt.com/business/siluanov-shadow-economy-gdp-055/

    http://www.imf.org/external/pubs/ft/issues/issues30/

    It was under 20% in 2013. In 1999 it was over 44% of the economy.
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    Post  Austin on Sat Dec 10, 2016 5:49 pm

    15-20% of GDP in blackmoney is still huge , for Russia it might be more difficult to track as they have full capital account convertibility which means people would happily bribe in USD or Euro as much in Rouble making tracking it difficult.

    India black money as % of GDP is put at 20% which itself is huge most of black money is paid in rupee unlike Russia we don't have capital account convertibility or free flow of capital.

    That 20% is before demonitisation , the aim was not just to curb black money as much as possible but also to increase tax base , reduce counterfeit currency in circulation printed by Pakistan isi and used to support terrorism in Kashmir and other parts of India , push for digital transaction , increase tax on those with huge black money.

    I don't know how much black money they might get in the end they are aiming for around USD 30 billion but the final figure will be known by end of December or perhaps in March when this scheme ends and RBI has more accurate figure.

    I think even if they manage to reduce black many in circulation by 5-8% it would be a significant achievement for modi government.

    Only large currency was demonitisation which made 86% of cash in circulation
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    Post  kvs on Sat Dec 10, 2016 7:27 pm

    Austin wrote:15-20% of GDP in blackmoney is still huge , for Russia it might be more difficult to track as they have full capital account convertibility which means people would happily bribe in USD or Euro as much in Rouble making tracking it difficult.

    The issue is wasting resources terrorizing the country trying to destroy the black economy when it is naturally receding. The gradual
    approach is vastly superior to the ham-fisted brute force approach. The war on drugs in the west and elsewhere has been an epic
    failure because it is impossible to force everyone to behave in any given country without a sci-fi totalitarian regime. The state cannot
    make people act good it can only give them incentives to act good, which includes punishing crimes. As you should know punishing
    crimes is a long and tedious process and not something that happens at the snap of the fingers.


    India black money as % of GDP is put at 20% which itself is huge most of black money is paid in rupee unlike Russia we don't have capital account convertibility or free flow of capital.

    That 20% is before demonitisation , the aim was not just to curb black money as much as possible but also to increase tax base , reduce counterfeit currency in circulation printed by Pakistan isi and used to support terrorism in Kashmir and other parts of India , push for digital transaction , increase tax on those with huge black money.

    I don't know how much black money they might get in the end they are aiming for around USD 30 billion but the final figure will be known by end of December or perhaps in March when this scheme ends and RBI has more accurate figure.

    I think even if they manage to reduce black many in circulation by 5-8% it would be a significant achievement for modi government.

    Only large currency was demonitisation which made 86% of cash in circulation

    India has little similarity to Russia in this. Counterfeiting is much more rampant in India than in Russia. There is no need for the
    Indian program in Russia. Around the year 2000 the US dollar was a major mode of transactions in Russia's economy. This mode
    has basically disappeared.

    Dollar transactions were 40% of total in 1997:

    https://www.imolin.org/pdf/imolin/rc84066e.pdf

    http://eercnetwork.com/default/download/creater/working_papers/file/de085a00a42755f172288baffcfd9895da86b71e.pdf

    Dollars are no longer used by Russians to shop for goods and services. Russian banks have under 30% US dollar reserves/deposits but that
    is fully legitimate. It is likely that most of the shadow economy uses rubles as well since it is all about not paying taxes.

    BTW, the shadow economy is rampant in Canada as well. Only a sucker would believe that restaurants report all of their receipts
    to the taxman.
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    Post  miketheterrible on Sat Dec 10, 2016 9:07 pm

    Its rampant in Vancouver cause of all the slanty eyed gangs and mafia that operates there.

    Russia's black money isn't a problem. Its the grey money, which is money paid under the table to avoid taxation and give inventive to workers as it would be 100% their money. So it was determined that a lot of money people make isn't everything they get, and they get also a bit more under the table.

    Of course this isn't everyone. But a lot of the unofficial job titles.
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    Post  Singular_Transform on Sun Dec 11, 2016 1:57 pm

    kvs wrote:

    Where did you pull the "untaxed money = higher inflation" equality from? Perhaps you could provide some references
    for this profound equation.

    You do know that the government spends tax money, do you? So obviously it contributes to inflation.

    As an aside, black money =/= counterfeit money. It is money that hides from taxes. So there is obviously
    nothing wrong with it. And this discussion, trolled by Austin, is brain dead since Russia's black economy has
    been shrinking since 2000:

    https://www.rt.com/business/siluanov-shadow-economy-gdp-055/

    http://www.imf.org/external/pubs/ft/issues/issues30/

    It was under 20% in 2013. In 1999 it was over 44% of the economy.
    https://en.wikipedia.org/wiki/Tally_stick#Split_tally

    Money is created by the government, and the inflation of it is regulated by the taxation .

    There is a secondary source from the central bank, and that can constrain it with the interest rate, but the central bank is nothing else just an executive function of the government.

    If the government doesn't has control above the money supply and the taxation then there could be high inflation, like in Russia.
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    Post  Austin on Sun Dec 11, 2016 2:12 pm

    kvs wrote:The issue is wasting resources terrorizing the country trying to destroy the black economy when it is naturally receding.   The gradual approach is vastly superior to the ham-fisted brute force approach.    The war on drugs in the west and elsewhere has been an epic failure because it is impossible to force everyone to behave in any given country without a sci-fi totalitarian regime.   The state cannot make people act good it can only give them incentives to act good, which includes punishing crimes.   As you should know punishing crimes is a long and tedious process and not something that happens at the snap of the fingers.

    It was not terrorizing the country Laughing

    They tried the gradual approach by introducing newer 500 and 100 rs notes in past decade without demonitising but it did not help much black money simply went to newer currency.

    They had to try the 1 or 0 approach either demonitise bigger denomination currency at one go making 85 % of total cash in circulation invalid over night and replace it with new ones or dont go at all , the gradual approach didnt work they tried it in past decade.

    Before demonitisation for a year they had a Voluntary Disclosure scheme where disclosure of black income could be made legal by paying 45 % tax , till october it could disclose around $10 billion http://www.business-standard.com/article/economy-policy/income-declaration-scheme-rs-65-000-cr-and-counting-116093001207_1.html

    Post that they went for the kill switch , like like said demonitisation was not just limited to target black currency but also widen tax based ( we have the lowest tax reach in India ) , promote digital transaction , remove Fake Currency printed by Pakistan which has direct effect on terrorism.



    India has little similarity to Russia in this.   Counterfeiting is much more rampant in India than in Russia.   There is no need for the
    Indian program in Russia.   Around the year 2000 the US dollar was a major mode of transactions in Russia's economy.   This mode
    has basically disappeared.

    Dollar transactions were 40% of total in 1997:

    https://www.imolin.org/pdf/imolin/rc84066e.pdf

    http://eercnetwork.com/default/download/creater/working_papers/file/de085a00a42755f172288baffcfd9895da86b71e.pdf

    Dollars are no longer used by Russians to shop for goods and services.   Russian banks have under 30% US dollar reserves/deposits but that
    is fully legitimate.   It is likely that most of the shadow economy uses rubles as well since it is all about not paying taxes.

    BTW, the shadow economy is rampant in Canada as well.   Only a sucker would believe that restaurants report all of their receipts
    to the taxman.

    Russia does not need Full Capital Account Convertibility or Free Flow of Currency it just makes it easier to pay the bribe in USD without keeping a track and its easier to stash ones money in London without having to pay tax in Russia.

    These things are good for Anglo Saxon Countries that have USD and Euro as their currency or puppets like Japan UK , free flow of currency and capital account convertibility is fine for them.
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    Post  Austin on Sun Dec 11, 2016 2:13 pm

    BTW what happened to Putins scheme of getting Russian money stashed abroad back to Russia , I recollect he started that in 2015 any figures how much money did he manage to bring it back ?
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    Post  KoTeMoRe on Sun Dec 11, 2016 2:14 pm

    Austin wrote:BTW what happened to Putins scheme of getting Russian money stashed abroad back to Russia , I recollect he started that in 2015 any figures how much money did he manage to bring it back ?

    It's hush hush for now, there's too much to recover.
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    Post  miketheterrible on Sun Dec 11, 2016 2:47 pm

    Austin wrote:BTW what happened to Putins scheme of getting Russian money stashed abroad back to Russia , I recollect he started that in 2015 any figures how much money did he manage to bring it back ?

    was in the billions but that was 2015. Nothing has been heard since. But I do notice a much larger amount of arrests and court trials over oligarchs and certain groups of business people in forms of tax evasion and theft of money. Latest is one in a businessman for Roscosmos.
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    Post  Austin on Sun Dec 11, 2016 6:59 pm

    James Rickards vs Ann Pettitfor: IS GOLD MONEY? The Future of the International Monetary System
    London Debate, Nov. 30, 2016: Ann Pettitfor and Jim Rickards



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    Post  kvs on Sun Dec 11, 2016 7:47 pm

    Austin wrote:BTW what happened to Putins scheme of getting Russian money stashed abroad back to Russia , I recollect he started that in 2015 any figures how much money did he manage to bring it back ?

    And your evidence that nothing has happened is what? That $200 billion in "capital flight" occurred in the last 2 years?

    The pattern in this discussion is clear. Since there is nothing to bash Russia over in regards to new business formation,
    diversification and re-gearing of the financial markets, the hate has to coalesce around "corruption". So if there is
    not a hysterical program to force every transaction into the open, then Russia must be a total failure.

    F*CK OFF.
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    Post  kvs on Sun Dec 11, 2016 7:56 pm

    Austin wrote:
    kvs wrote:The issue is wasting resources terrorizing the country trying to destroy the black economy when it is naturally receding.   The gradual approach is vastly superior to the ham-fisted brute force approach.    The war on drugs in the west and elsewhere has been an epic failure because it is impossible to force everyone to behave in any given country without a sci-fi totalitarian regime.   The state cannot make people act good it can only give them incentives to act good, which includes punishing crimes.   As you should know punishing crimes is a long and tedious process and not something that happens at the snap of the fingers.

    It was not terrorizing the country Laughing


    Says you. Prosecution by the authorities is a type of terror that has been seen throughout history.


    They tried the gradual approach by introducing newer 500 and 100 rs notes in past decade without demonitising but it did not help much black money simply went to newer currency.

    They had to try the 1 or 0 approach either demonitise bigger denomination currency at one go making 85 % of total cash in circulation invalid over night and replace it with new ones or dont go at all , the gradual approach didnt work they tried it in past decade.

    Before demonitisation for a year they had a Voluntary Disclosure scheme  where disclosure of black income could be made legal by paying 45 % tax , till october it could disclose around $10 billion  http://www.business-standard.com/article/economy-policy/income-declaration-scheme-rs-65-000-cr-and-counting-116093001207_1.html

    Post that they went for the kill switch , like like said demonitisation was not just limited to target black currency but also widen tax based ( we have the lowest tax reach in India ) , promote digital transaction , remove Fake Currency printed by Pakistan which has direct effect on terrorism.

    You clearly confuse Russian currency problems with those in India. Read my reply properly instead of blowing your propaganda bullhorn.
    Russians use genuine ruble cash and electronic ruble transactions. There is zero need for any re-denomination and you are clearly dancing
    around the fact that in India the problem is counterfeiting, hence the introduction of new denominations.



    India has little similarity to Russia in this.   Counterfeiting is much more rampant in India than in Russia.   There is no need for the
    Indian program in Russia.   Around the year 2000 the US dollar was a major mode of transactions in Russia's economy.   This mode
    has basically disappeared.

    Dollar transactions were 40% of total in 1997:

    https://www.imolin.org/pdf/imolin/rc84066e.pdf

    http://eercnetwork.com/default/download/creater/working_papers/file/de085a00a42755f172288baffcfd9895da86b71e.pdf

    Dollars are no longer used by Russians to shop for goods and services.   Russian banks have under 30% US dollar reserves/deposits but that
    is fully legitimate.   It is likely that most of the shadow economy uses rubles as well since it is all about not paying taxes.

    BTW, the shadow economy is rampant in Canada as well.   Only a sucker would believe that restaurants report all of their receipts
    to the taxman.

    Russia does not need Full Capital Account Convertibility or Free Flow of Currency it just makes it easier to pay the bribe in USD without keeping a track and its easier to stash ones money in London without having to pay tax in Russia.

    These things are good for Anglo Saxon Countries that have USD and Euro as their currency or puppets like Japan UK , free flow of currency and capital account convertibility is fine for them.

    What the hell are you smoking. What relevance has "Full Capital Account Convertibility" got to do with the discussion. Your are just pulling
    terms out of the air to distract from the fact that you have no point. Russia does not need India's program to remove cash from transactions
    to force tax collection and control counterfeiting. Russia had a crisis in tax collection in 1998. Thanks to Putin and Gref this problem went
    away when Yeltsin's ridiculous tax system was removed and a proper, low tax rate system imposed. There was a massive surge in tax
    receipts and there was never any need for re-denomination and removal of cash from circulation. This crap you are harping on about is a
    total non-issue for Russia. Thank God Putin does not eat such drivel advice from fairweather "friends" and outright enemies, who only
    have the "best interests" of Russia at heart.
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    Post  Austin on Sun Dec 11, 2016 7:57 pm

    kvs wrote:
    Austin wrote:BTW what happened to Putins scheme of getting Russian money stashed abroad back to Russia , I recollect he started that in 2015 any figures how much money did he manage to bring it back ?

    And your evidence that nothing has happened is what?   That $200 billion in "capital flight" occurred in the last 2 years?

    The pattern in this discussion is clear.   Since there is nothing to bash Russia over in regards to new business formation,
    diversification and re-gearing of the financial markets, the hate has to coalesce around "corruption".   So if there is
    not a hysterical program to force every transaction into the open, then Russia must be a total failure.

    F*CK OFF.

    You are a perfect moron , so self righteous retard I must admit .

    Did I ever say any thing about $200 billion Dollar thats like bringing a straw man into the argument.

    All I asked was how much did Russian get since Putin announced that program , we have no news how much the program managed to get back ...how else would one judge the success of the program ?

    Atleast in India they are open with Numbers and RBI keeps releasing how much black money came in via Demonitisation or VDS scheme that makes it easy to judge how successful the program is or if this is a failure.

    Denying Russia has no corruption is living in la la land ..... What fucking good did full capital account convertiblity and free flow of capital did any good to Russia , then let those Corrupt easily stash those money in London or New York and put pressure on central bank to let more USD available. Its free funding of USD at the cost of Russian economy.
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    Post  Austin on Sun Dec 11, 2016 8:05 pm

    kvs wrote:

    Says you. Prosecution by the authorities is a type of terror that has been seen throughout history.


    So they should let those who hold black money run away with it and they should not be prosecuted , Nice .....That happens in London Laughing



    What the hell are you smoking.  What relevance has "Full Capital Account Convertibility" got to do with the discussion.  Your are just pulling
    terms out of the air to distract from the fact that you have no point.   Russia does not need India's program to remove cash from transactions
    to force tax collection and control counterfeiting.   Russia had a crisis in tax collection in 1998.   Thanks to Putin and Gref this problem went
    away when Yeltsin's ridiculous tax system was removed and a proper, low tax rate system imposed.    There was a massive surge in tax
    receipts and there was never any need for re-denomination and removal of cash from circulation.   This crap you are harping on about is a
    total non-issue for Russia.   Thank God Putin does not eat such drivel advice from fairweather "friends" and outright enemies, who only
    have the "best interests" of Russia at heart.


    Well India needs that and that was my point .......I am not saying what Russia must do but what India did to root out black money and other benefits of demonitisation.

    Full Capital Account Convertibility means Russian can keep Euro and USD in the amount they want and it makes bribing so much easier , Compared to India where getting forex is very tough so bribing and black money is in Indian Currency
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    Post  GarryB on Mon Dec 12, 2016 6:53 am

    First of all let me say economics makes no sense to me and I have never bothered to even try to understand it.

    However the behaviour on this thread has got my attention.

    KVS... Austin has posted some questions and some opinions. you are free to reply or to ignore.

    Message to everyone... you are not free to verbally abuse other members.

    Normally I would have a private word to KVS for this and consider a short term ban, but as Austin has replied in kind that would not make sense to try to deal with it privately.

    So I will say to everyone, do not abuse other members... do not reply when drunk or angry.

    We have an ignore system that is there for a reason... please use it.

    I must admit that recently I have been more annoyed by some members than I should and have used more bad language than I normally would, for which I apologise.

    My job is to keep things here within the rules, I have a few options, but I prefer to talk before I ban or delete.

    If someone is really annoying you or being irritating then I suggest a private message to the person concerned first and if that does not solve the problem at least both parties will know what the score is... the next step should be to contact a mod who will likely then talk to both parties. Do not try to discuss on the open forum... as it will almost always be OT.

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    Post  kvs on Mon Dec 12, 2016 11:33 pm

    OK. I hear you loud and clear on the swearing. But Austin is not some innocent source of useful information.
    His posts are tendentious. If he was interested in some sort of discussion on the Indian cash removal program then why did he
    not post the relevant information? For example,

    http://thediplomat.com/2016/11/indias-fight-against-fake-currency/

    Clearly, the situation in India has no relevance for Russia.
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    Post  GarryB on Tue Dec 13, 2016 7:18 am

    If he was interested in some sort of discussion on the Indian cash removal program then why did he
    not post the relevant information? For example,

    You could have had a chat to him about this and sorted it out between the two of you.

    As I said... I don't understand and am not really interested in understanding... it seems like BS to me... I mean clearly in a world where you can make more money investing money than actually working for it sound like it is broken... it does not make sense to me that having money is a better way to make money than to work for it...
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    Post  Austin on Tue Dec 13, 2016 8:19 am

    Hard budget deprives the economy of 2.8% growth

    Читайте далее: http://izvestia.ru/news/651204#ixzz4ShSyuT5j


    Stolypin club Boris Titov suggested a way to increase GDP and balance the budget


    Russia's GDP will shrink by 2.4 trillion rubles, or 2.8%, to 2019 because of the decision to freeze the budget of the Ministry of Finance expenses for the next three years in nominal terms. That is the conclusion reached by experts Stolypin club,
    who heads the business ombudsman Boris Titov (presentation available to the "News"). The alternative is extremely tight budget could be saved in real terms of expenditure, which can be directed to stimulate growth, according to the Stolypin club. And in the organization believe that such a measure does not unbalance the budget.

    The State Duma on Friday approved in the final, third reading of the budget for the 2017-2019 years. During the discussion in the lower house of parliament, the main parameters of the document (including the freezing of expenditures) have not changed, only the deputies distributed 87.5 billion rubles from the Reserve Fund of the Government on priority projects. Parliamentarians traditionally have increased spending to support the regions - from 100 billion to 200 billion rubles. However, the overall rate of the Ministry of Finance on the budget consolidation has been left unchanged.

    Such a tight fiscal policy was not supported in Stolypin club, which, along with the Center for Strategic Development (CSD) is now one of the centers of development of economic reforms. Boris Titov has been dubbed the document the Ministry of Finance of stagnation budget and promised to come up with alternative proposals. They are contained in the materials with which the familiar "Izvestia".

    In particular, the club proposes to increase funding for the development of human capital, the demand (0.5 trillion, aimed at subsidizing mortgages and car loans) and development institutions (0.8 trillion rubles) to stimulate GDP growth. The total volume of additional costs (1.3 trillion rubles) will be lower gain to GDP (2.2 trillion rubles). The club also offers to freeze tariffs of natural monopolies and reduce the key rate to 8% (currently - 10%). According to the organization of economists, only the last step can give boost to GDP growth by 1.3 percentage points To finance the growing deficit in the Stolypin club offer by increasing the national debt.

    In itself, decrease the key rate does not necessarily lead to an increase in GDP, according to the chief economist for Russia and CIS at ING Dmitry Polevoy. According to him, one should also bear in mind that cheaper borrowing gives rise in consumption, but it can lead to an increase in imports. Thus, the effect will be compensated.

    - Reduced rates can give an increase in consumption and investment, but at the same time, it could trigger the growth of demand for imports. In the end, the net GDP growth will be less - he explained.

    According to Dmitry Polevoy, experts now expect to reduce the key rate to 8-8.5% by the end of next year, while GDP growth of 1.5%. Now at the rate of 10% recession is expected to reach 0.7%.

    As stated in the documents of the club in the next three years, budget spending decrease in constant prices will exceed 12%. "Given the importance of budget expenditures for certain sectors such reduction of the economy will lead to a substantial loss of the level of demand and income, as well as convert government consumption (percentage of GDP of about 19%) in one of the main factors hindering economic development", - stated in the materials.

    As calculated in the Stolypin club, complete loss of GDP from reduced expenditures for investment purposes amounted to 0.9 trillion rubles, on the other personal, social and communal services - 0,7 trillion rubles, on public administration and defense - 0.4 trillion rubles, healthcare - 0,2 trillion rubles, agriculture - 0,1 trillion rubles. This proposed redeployment of business income and in favor of the fiscal system (tax maneuver in the energy sector, the increase of excise taxes, the change in the rules of transfer of income tax, an additional exemption of dividends from state-owned companies), due to lower macroeconomic efficiency, expenditure leads to potential GDP losses 170 billion rubles.

    As a result of conservative economic and fiscal policy may be a situation in which Russia's GDP in 2019 will be almost at the level of 1990, will begin to increase the gap with the level of developed countries in per capita GDP, there will be risks to maintain defense spending, fear in the Stolypin club.

    The Ministry of Finance considers its main task to enter the non-deficit budget in the medium term. According to the ministry, Russia must live within its means and not spend more than it earns. The adopted budget assumes reduce the budget deficit by 1 percentage point per year: from 3.2% of GDP in 2017 to 2.2% in 2018 and 1.2% in 2019. Consolidation is achieved by freezing nominal expenditures.

    Stolypin club counted impact on the GDP of the two scenarios: Scenario proposed the Ministry of Finance and save costs in real terms (that is, their indexation to inflation annually). As a result, according to the organization, in the first scenario, GDP is reduced by 660 billion rubles in 2017, while the second - is growing at 490 billion rubles.

    Offers Stolypin club can give GDP growth, but on a smaller scale because of the complexity of forecasting the effectiveness of such measures, says the head of the Laboratory of analysis of financial markets and institutions RANHiGS Alexander Abramov.

    - To obtain the GDP growth still need to be prerequisites. Development institutions funding partially makes sense when the business is ready to create new projects, and to this he is not ready due to numerous risks, - he said.

    According to the expert, you must first create a solid foundation for economic growth, which would consist of a total liberalization of the economy, judicial reform, easing pressure on the security forces and the predictability of the business tax system.

    The Ministry of Finance has not responded to the request of "Izvestia".
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    Austin

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    Post  Austin on Tue Dec 13, 2016 8:22 am

    Stolypin club is the only one asking for QE while one lead by Kudrin is asking for tightening

    http://rbth.com/business/2016/05/27/3-ways-out-of-russias-crisis-the-plans-on-putins-table_597961

    The Stolypinsky Club suggests that Russia launch a "quantitative easing" policy, for example, print special obligations for 1.5 trillion rubles ($22.5 billion). In order for this not to affect inflation, the club proposes the country return to the currency corridor and end the floating exchange rate, which was introduced at the end of 2014.
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    Austin

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    Post  Austin on Sat Dec 17, 2016 9:28 am

    Obama called weak country Russia, trading in oil, gas and arms Wink

    https://ria.ru/world/20161217/1483864966.html

    WASHINGTON, Dec. 16 - RIA Novosti. US President Barack Obama called Russia a weak country that does not produce anything but gas, oil and weapons.

    "They are smaller, they are weaker (than the US - Ed.). Their economy does not produce anything that would like to buy (other countries), other than oil, gas and arms," ​​- Obama said during a press conference in Washington on Friday.
    miketheterrible
    miketheterrible

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    Post  miketheterrible on Sat Dec 17, 2016 9:34 am

    And food, and technology, and space stuff.

    Obama needs to work on his propaganda a bit more to be believable.

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