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    Russian Economy General News: #11

    miketheterrible
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    Post  miketheterrible on Wed Mar 11, 2020 4:07 pm

    Flaming, you are wasting your time with the duntz.

    Hell, budget can change at $10/bbl and they could easily balance the current budget as taxes brought in a shit ton to the budget. And there is still massive work on removing further grey economy in Russia which still stands at 30% of GDP. That would be tens of trillions of rubles extra.

    Anyway

    https://tass.ru/ekonomika/7941127

    Experts: actions of the Russian authorities is sufficient to stabilize the financial market
    magnumcromagnon
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    Post  magnumcromagnon on Thu Mar 12, 2020 11:43 am

    "Huawei recently formed a partnership with Russia’s largest bank, & announced plans boost its purchases in Russia from $392 million to $800 million, train 35,000 IT Russian specialists, & build a new R&D center in the country."

    https://asia.nikkei.com/Business/China-tech/Huawei-finds-allies-in-Russia-as-Kremlin-cuts-reliance-on-West2
    miketheterrible
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    Post  miketheterrible on Thu Mar 12, 2020 1:27 pm

    That would make it Russia's third Huawei's r&d center.

    They might as well open up manufacturing too since Russian production is cheaper these days. And may corner Russia's market.

    Russian companies really need to get off their ass and do the same. They tried but decided to move production to China anyway.

    And now Russia also produces flexible LCD displays of their own.
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    Post  GarryB on Fri Mar 13, 2020 3:02 am

    Further reductions in the value of the ruble make it more and more likely, and rather more profitable for Russia... they have high tech capacity, they have skilled labour, they have land and resources, what they need is a larger market that does not hold them under sanction... if they could get China and India as markets for very high tech stuff they wouldn't need to worry about the western market...

    But of course that can cause problems... a high oil price makes you lazy, because you are already making money on oil why bother making your own food when you can pay someone else to make it for you like Venezuela did for decades while oil prices were high.

    It is hard to invest money in food and other essentials when you can import such things cheaper and easier and quicker, but as seen when things change like sudden Russian sanctions on EU food imports can cause some short term pain... ironically if these sanctions were not in response to EU sanctions on Russia then the EU could have taken Russia to the WTO to force them to take cheap EU food which would make domestic investment in food production much harder and less effective/successful.

    Reduced oil prices are an opportunity to expand investments and development and skill sets... when oil prices recover then Russia will benefit from that but also their economy will become stronger and have more depth... further US sanctions on Russia will have less effect if they make their own food and medicine and they can better support other countries in a similar situation like Iran and Iraq and Syria and Cuba and India and China and North Korea... because if you all work together... you don't need to be best buddies... joined at the hip... but being reasonable and sensible you can resist pressure from bullies trying to steal from you by force when you don't want to work with them.  And that is good for everyone who is a sensible actor... it is the west that will become isolated and an international pariah as they threaten their victims of the very same result...


    Last edited by GarryB on Sat Mar 14, 2020 4:47 am; edited 1 time in total
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    Post  GarryB on Thu Mar 19, 2020 12:31 am

    I have split off the corona virus portion with the conspiracy theories... Vann.... would you like to create a separate thread about Chinese conspiracy theories of a US plot to use bio weapons, or shall I just move the posts to the talking bollocks thread?

    Your call... create a new thread and give me the link to it, or tell me you prefer them to go to the TB thread.

    GarryB
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    Post  Vann7 on Thu Mar 19, 2020 4:58 am


    As markets panic, Russian Ruble is  WORLD’S WORST performing currency in 2020


    https://www.rt.com/business/483459-ruble-drop-coronavirus-oil/




    As the Euro reached a mark of 88 rubles, the US dollar struck a new post-February 2016 high, rising above the 80 dollar mark to 81.!!!!!  

    Numbers late on Wednesday show the next worst-performing currencies behind the ruble as Brazilian real, which has lost 28.21 percent, followed by the Mexican peso at 26.91 percent.

    Russia's currency has taken the tumble due to two main events – the coronavirus outbreak and the sharp drop in oil prices, caused by the breakdown of the OPEC+ deal between Moscow and the Saudi Arabia-led bloc.

    Oil price drops to lowest level since 2003 as demand for energy weakens due to slowing global economy
    Speaking to Moskovsky Komsomolets, economist Eugene Gontmacher highlighted that the ruble had actually strengthened against the dollar at the end of 2019, and subsequently,

    “it seemed to our authorities that the economy is no longer so dependent on energy exports.”

     Gontmacher argues that the recent movements of the ruble have proven that this is far from the case and that the Russian economy clearly “did not overcome the dependence” on oil.   Brent crude, which started the year at 66 dollars per barrel, now sits below $30.


    It looks like the 5th column liberals also have infiltrated in RT.com..
    and that economist world wide are also conspirators..  lol1
    because everyone in this forum.. the so called "Experts" claim the Russian economy is not dependent in oil ,
    but every economist  in the world ,including Russia economy minister , and Russia
    central bank.. all also say that what the outside world says.. that  Russia economy is still dependent in oil..
    So whats going on here ? why people insist in this forum to spread lies about Russian economy ,"no longer dependent on oil"  are you listening [kvs] ? [mike] ? and other putin cheerleades of lies ?


    Ruble performance is worse than it was since 2003 ,worse than during Obama oil war price , why Russian ruble is the worlds worse performing currency ? when oil reach the record lows? lol1   the Russian government told
    their economy can survive with oil at $25 per barrel for some years ...., but what about $20 ?  what about $15 ?  No

    Putin's dreams of a gas station , are all in ruins.. If the oil prices continues for long so low , Russia energy industry is going to collapse... don't tell the bullshit that the ruble at $81 versus dollar means nothing.. when
    the russian bank spent hundred of billions dollars from savings and increased interest rate so high ,in order to stabilize the ruble value. No

    Russia will have to sink all the gold they accumulated in 10 years in just 6 months  ,and was bragging about ,just that Putin can continue its gas station project in one peace. Saudi Arabia claims it can survive with oil at $6 per barrel... and will not be surprising if US assist saudi arabia stay afloat with loans.. just like they did to ukraine ,.. to keep the oil $15  or $10 per barrel.. just to break Russia economy extremely dependent in energy business.. ... because is war.. and in war any sacrifice is valid..even damaging your own nation energy
    business ,if it hurts more your enemy.


    it hurts the US shale industry for sure.. this oil war.. but it hurts 10x or even more magnitude  higher at Russian economy.  So Russian ruble will be as worthy as shit and nobody will accept it , Russia will have to buy everything using Gold and the west will be laughing their asses ,to finally break Russia economy ,after that gold
    goes out too.. which will not last long ,if no longer ruble accepted world wide..

    if there is something positive about all this.. the silver line , in that Russia economy completely collapse with all its energy industry bankrupt .. is that for once Putin's fans club in this forum ,will just shut up for once  and stop defending Putin's mediocre and outdated nation economy , and that this will cost Putin's his presidency and finally Russia will get rid of so incompetent moron with his primitive economic system.. and finally the new government that comes after Putin will understand that a gas station economy ,doesn't work anymore ,and that
    Russia needs to modernize its economy for once.. it needs to privatize ,sell to europe most of their oil fields and gas fields ,only stay with enough oil for domestic use ,and that Russia need to do a 180 degrees economy change ,focus in a much more modern economy model . Russia only chance to survive the US economic sabotage ,on their nation. is to fight back.. and challenge US digital economy industry ,challenge US high tech industry and challenge US in space.. the way out of the black hole of Russia gas station economy , is to develop a strong modern business that directly challenge the American high tech and digital economy and that Russia aims also
    at full domination in space.. this is when investors money will start to flow more ,in Russia direction and not in the American one.  but Putin's idea of development without leadership ,without a modern economy ,have no place in this world.. the idiot don't understand ,Russia have no chance to survive if continue depending on the
    US system ,US banks ,US internet ,US high tech industry..and US digital business.. a real revolution is need in
    Russia.. not just in words.. as cuba and venezuela are , revolutions of ideas ,but not in actions.. and this is
    what's holding back Russia and his rejected allies ,that their economic model are primitive . if you challenge
    the American empire ,you need to take away their modern business leadership ,[u] there is no place for Russia in this world as second or third best and not even as 10th best economy.. it doesn't matter.. if Russia don't lead ,
    it breaks.. is as simple as that..this is true because You can't develop a nation economy..when you face a powerful enemy with a leading economy targeting your nation economy. so any economic model in Russia ,that
    ignores , US business modern leadership ,and don't offer any competition is doomed to fail. The only reason
    russia is not again in the 90s ,is because have one place to seek help.. that is China.. but this is still a dependent nation economy . Russia needs Independence ,to stand on its own ,its nation economy ,in a modern world.

    i do agree with Southfront report..that fanboys in this forum condemned.. Rolling Eyes  Putin have learned nothing... from the 2014 oil prices collapse. his incompetence and outdated vision of Russia development ,is a national security threat for Russia existence... if he believe ,that with politeness bullshit ,and sports ,he will continue
    "Stabilizing the economy" then he will see now ,how wrong he was.. there is no stability when a nation is weak
    and only a punching bag of the west. Thanks to putin 6 fucking years wasted.. in "ending the dependence in oil "
    "diversifying the economy".. which it never happened..   No  Russia continues to be a gas station ,as much
    it was in 2014.. nothing have changed.  No  other than now Putin's Russia have gold for a few years ,to compensate for his mediocre economic model .
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    Post  Austin on Thu Mar 19, 2020 6:15 am

    Russian rouble is a floating currency so there is a balance between appreciation and depreciation of Rouble versus Dollar.

    Due to this the CBR does not have to burn reserves to support Ruble as it did earlier during 2014 crisis where there was a hard pegging of Ruble versus Dollar and CBR had to defend the peg.

    The only thing CBR needs to be worried is inflation.

    More ever few weeks of bad performance or good performance will not make any impact , they will have to average out Ruble performance over yearly , half yearly or quarterly basis.
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    Post  Big_Gazza on Thu Mar 19, 2020 9:56 am

    Vann7 wrote:It looks like the 5th column liberals also have infiltrated in RT.com..
    and that economist world wide are also conspirators..  lol1

    Economists working for international capital interests are expected to provide cover for their corrupt paymasters.

    RT wrote:Speaking to Moskovsky Komsomolets, economist Eugene Gontmacher highlighted that the ruble had actually strengthened against the dollar at the end of 2019, and subsequently, “it seemed to our authorities that the economy is no longer so dependent on energy exports.”

    Gontmacher argues that the recent movements of the ruble have proven that this is far from the case and that the Russian economy clearly “did not overcome the dependence” on oil. Brent crude, which started the year at 66 dollars per barrel, now sits below $30.

    What a fucking idiot...  This flaming dickwad calls himself an economist?   Laughing  Laughing  Laughing  Laughing  Laughing  Laughing  Laughing

    Consider the relative movements of oil price (urals blend) vs the ruble price:\

    Date             Urals          Ruble           Ruble/barrel
                       Price          Price


    Mar 10         32.00          71.08           2,297

    Mar 18         24.65          80.96           1,995

    So 23.0% drop in oil price (in USD) only results in a 13.1% drop in ruble revenue for same volume, yet this retard moron doesn't understand the dynamic....

    The fact that RT prints such nonsense should be taken as proof that its not a propaganda mouthpiece of the Kremlin as it is usually claimed (by Russias enemies) but exercises journalistic indepedence to a significant degree. Well, it should be, but we all know it won't cuz the Enemy doesn't care about trivial things like facts and truth...
    miketheterrible
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    Post  miketheterrible on Thu Mar 19, 2020 10:26 am

    Should I mention no one here uses rt as a source cause it's usually shit?
    kvs
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    Post  kvs on Thu Mar 19, 2020 4:45 pm

    Austin wrote:Russian rouble is a floating currency so there is a balance between appreciation and depreciation of Rouble versus Dollar.

    Due to this the CBR does not have to burn reserves to support Ruble as it did earlier during 2014 crisis where there was a hard pegging of Ruble versus Dollar and CBR had to defend the peg.

    The only thing CBR needs to be worried is inflation.

    More ever few weeks of bad performance or good performance will not make any impact , they will have to average out Ruble performance over yearly , half yearly or quarterly basis.

    There was not hard peg in 2013/14. The CBR had a range of exchange rates to which it intervened to keep the dollar. Once the full blown speculative attack
    started in late 2014 it became clear that this policy only served to feed free money to NATzO financial saboteurs. Once the intervention policy was terminated
    the ruble became instantly a fully floating currency. The NATzO juggernaut that launched its attack in late 2014 managed to drop the ruble exchange by over
    a factor of two. Instead of being a success this was epic self-snookering and fail because it totally nullified the oil price drop in ruble terms.

    As for inflation. The CBR is clearly engaged in economic sabotage by pretending there is an inflation problem with the CPI being around 3%. Unlike the
    USA, Russia does not use dirty adjustment tricks to hide inflation (such as negative price adjustments on goods under the name of hedonics adjustment).
    The real US CPI is closer to 6% and you can see this in food prices which are going up about 10% per year. Following the CBR criminal behaviour the
    prime rate in the USA should be somewhere around 14%, instead it is zero.

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    Post  kvs on Thu Mar 19, 2020 4:48 pm

    Big_Gazza wrote:
    Vann7 wrote:It looks like the 5th column liberals also have infiltrated in RT.com..
    and that economist world wide are also conspirators..  lol1

    Economists working for international capital interests are expected to provide cover for their corrupt paymasters.

    RT wrote:Speaking to Moskovsky Komsomolets, economist Eugene Gontmacher highlighted that the ruble had actually strengthened against the dollar at the end of 2019, and subsequently, “it seemed to our authorities that the economy is no longer so dependent on energy exports.”

    Gontmacher argues that the recent movements of the ruble have proven that this is far from the case and that the Russian economy clearly “did not overcome the dependence” on oil. Brent crude, which started the year at 66 dollars per barrel, now sits below $30.

    What a fucking idiot...  This flaming dickwad calls himself an economist?   Laughing  Laughing  Laughing  Laughing  Laughing  Laughing  Laughing

    Consider the relative movements of oil price (urals blend) vs the ruble price:\

    Date             Urals          Ruble           Ruble/barrel
                       Price          Price


    Mar 10         32.00          71.08           2,297

    Mar 18         24.65          80.96           1,995

    So 23.0% drop in oil price (in USD) only results in a 13.1% drop in ruble revenue for same volume, yet this retard moron doesn't understand the dynamic....

    The fact that RT prints such nonsense should be taken as proof that its not a propaganda mouthpiece of the Kremlin as it is usually claimed (by Russias enemies) but exercises journalistic indepedence to a significant degree. Well, it should be, but we all know it won't cuz the Enemy doesn't care about trivial things like facts and truth...

    This "economist" should be charged for a form of libel. He is spreading the lie that Russia's GDP depends on oil when oil and gas account for under 7% of
    Russia's GDP including all the employment and hardware purchasing. That is, the 7% is not nominal oil and gas sales, it is the whole industry.

    And this lying sack of shit would prefer for Russia to import oil and gas, I bet. Russia consumes 50% of the oil it produces.

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    Post  Arrow on Thu Mar 19, 2020 5:05 pm

    Russia with such low oil prices will have problems. That's 50% of their exports. Many industries are associated with the raw material industry, so it is not a total of 7% but much more. At such prices, the cuts will be huge.
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    Post  PapaDragon on Thu Mar 19, 2020 5:19 pm

    Arrow wrote:Russia with such low oil prices will have problems. That's 50% of their exports. Many industries are associated with the raw material industry, so it is not a total of 7% but much more. At such prices, the cuts will be huge.

    Not even the Ukrainans claim that 50% of Russia's exports are oil

    Less than 40% of exports are petroleum (oil, gas and other associated products combined)

    Prices of gas haven't changed a single percentage

    25% of Russian budget comes from oil taxes not direct sales of oil

    They were running 30 billion dollars budget surplus last year

    They have 150 billion allocated for this in National Welfare Fund

    There will be no cuts for at least half a decade, probably longer

    Long story short: learn to read



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    Post  kvs on Thu Mar 19, 2020 6:02 pm

    Arrow wrote:Russia with such low oil prices will have problems. That's 50% of their exports. Many industries are associated with the raw material industry, so it is not a total of 7% but much more. At such prices, the cuts will be huge.

    You assume that Russia's exports account for 100% of its GDP. They don't:

    https://russian-customs.org/fcs-data-on-exports-and-imports-of-russia-for-the-2019/

    Russia exported $424.6 billion US dollars worth in 2019. Russia's nominal forex GDP was $1.638 trillion US in 2019.
    If you do the naive division in nominal terms, then you get a 25.9% dependence. But the GDP actually only cares
    about the trade balance and not exports. Imports cost dollars, so Russia's GDP dependence on trade is exports minus
    imports, or $177.2 billion US. This gives 177.2/1638.0 = 10.8%. If Russia had a trade deficit it would need to net
    borrow money every year to offset it, just as is the case for the USA and Canada.

    But GDP accounting is absurd so this borrowing is considered a positive for the GDP and not a negative.






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    Post  Big_Gazza on Fri Mar 20, 2020 12:09 am

    Arrow wrote:Russia with such low oil prices will have problems. That's 50% of their exports. Many industries are associated with the raw material industry, so it is not a total of 7% but much more. At such prices, the cuts will be huge.

    Buddy, this single-minded BS of yours is why we all call you a troll. My advice to you is to stop emabrassing yourself in a public forum. Razz
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    Post  Vann7 on Fri Mar 20, 2020 2:35 am

    kvs wrote:
    Arrow wrote:Russia with such low oil prices will have problems. That's 50% of their exports. Many industries are associated with the raw material industry, so it is not a total of 7% but much more. At such prices, the cuts will be huge.

    You assume that Russia's exports account for 100% of its GDP.   They don't:





    again wrong..


    https://www.trtworld.com/europe/how-oil-prices-impact-russia-s-economy-22067



    Russia is the second biggest oil exporter in the world, making its economy vastly dependent on the global oil market. Oil and gas exports constitute 40 percent of the total federal budget revenue of Russia.



    GDP does not equals real economy ,real nation economy..= net profits  .

    If for example a businessman only income comes from selling luxury cars.. lets says mercendes benz cars..
    and they buy each one from the factory at $100,000 dollars.. each.. then they later sale at retail those
    cars for $140,000 .. so how much is the businessman real profit?  $140k  or $ 40k ?

    Real economy is net profits.. what remains left after your expenses..

    and Russian economy ,its energy exports  accounts for 40% of Russia budget.. .. What a Face

    for comparisons American economy net profits in energy exports are about 5% of its nation economy.. lol1

    So this is why americans can bring down oil prices to its knees..FOREvER!!!!!
    they don't care ,they can very easily manage the loses with a loan to their energy sector..
    in fact thats what trump is going to do... they do want piece of shit this oil war.. they want to break
    Russia in a milion of pieces the Russian economy..and the easiest way is  driving down oil prices ,that affect
    also natural gas prices..  and the alternative of not fighting an oil war with russia ,is a military war , either
    use biological weapons ,as they did to china ,that is very unpredictable the consequences or bombs and missiles war . so for US is millions times better and easier an oil prices war. hands down.. because US shale industry
    is merely a small profit in their pockets.. only about 5% .

    If we include the domestic energy market profits.. then easily from 50% to 60% of Russian economy is affected
    by oil prices.. Shocked

    it could be even more , because Oil and natural gas industry in Russia are among the top business in generating
    jobs for Russia.. from security services ,to engineers for pipelines ,to scientist in research for new oil fields..
    from miners to dig holes in new zones.. and those pipelines are also expensive.. not free.. Russia needs to pay
    a big debt caused by its energy industry.

    So Putin's bet on energy industry is an incredibly short sight strategy ,specially knowing how easy is for americans every 5-8 years to collapse oil prices.. it was oil prices collapse.. combined with the arms race ,combined with the afghan war .. what sink soviet union economy.. and ended on its civil unrest and failure.

    So americans hits Russia economy big hard.. trump and obama had putin by the balls.. with their oil war.
    And Russia response ? is putin's politeness and its call for restoring relations  Rolling Eyes  

    Russia economic gas station model is not only Outdated for a nation with the capabilities that Russia ,that
    was leading at one point in space exploration.. but is also no longer sustainable ,since US can very easily
    can harm Russia economy ,by flooding oil prices...   it is oil and natural gas , the reason americans are interested in invading iran ,invading Venezuela ,Lybia and Syria. is not because they need oil..for them.. but because Russia needs it.. So imagine all the irony.. that Putin failure economic model , encourage americans to target all those
    nations with a lot of energy ,allied with Russia.

    Putin's development of Russia (or lack of ) . is what determine in which way the country economy will
    be attacked.. and now here is the catch.. Americans can harm 5G technology .. by starting an oil war to
    sink oil prices..  Cool  americans can't harm china economy /huawei by hosting olympics or by selling more
    oranges or rice or bananas .. No  

    If your economy is based on high tech ,the only way to target that business is with superior business..
    and Trump tried to start a war against china huawei and 5G and ban it from the world.. and Failed .
    even UK welcomed China high tech..   lol1

    So why the moron Putin don't get a fucking clue ,that all that the idiot needs to do ,to bypass american
    sanctions ,and influence in the world.. is create superior modern business than the americans ones..
    in things very popular ,that takes the world into the future.. is Leadership in modern business ,the way
    to defeat the American empire.. not rice and potatoes records.. or sports medals. Russia need to privatize
    its energy industry ,sell it to france and germany , and live happy with extraction fees ,per oil or natural gas sent to europe an you will see in no time , russian energy become a real monopoly in all european continent. and will be sanctions proof. because it will be european business the owners of russia oil and gas and not russia   Wink

    Any government in Russia who wants to end the american empire ,and force them to become a normal cooperative nation ,with Russia ,if don't want to be isolated from the world ,needs to move towards a digital modern economy and space exploration economy. space tourism.. how can you sanction that? if the super rich in US
    will be fighting each other for a ticket to fly around the world in a space ship ? how about a space cruise ship
    to orbit the moon and return to earth ? that can be done in just  6 days.. space travel. and even less in 1-2 days with a plasma engine. The Caveman president is what holds Russia back.. his extremely outdated vision of Russia.. and how its economy should be. it is only through modernization and success.. through Leader ship ,
    how Russia can earn the respect it wants and how they can end the western hostilities against Russia.. that will be the day ,they realize ,they no longer the leader in the world and that will benefit enormously in closer relations with Russia.
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    Post  PapaDragon on Fri Mar 20, 2020 4:19 am

    Vann7 wrote:...Any government in Russia who wants to end the american empire...

    And what makes you think that it's Russia's job to end "american empire"?

    Russia is doing fine for itself and is perfectly content to let Americans ride rest of the planet raw as long as they stay away from Russian slice

    If some other nation has issue with that they are free to initiate project 'Ending ​of American Empire' all by themselves

    I am sure Russians will enjoy watching the show on TV

    What you think Russia should do and what Russia wants to do are two vastly different things


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    Post  Austin on Fri Mar 20, 2020 8:07 am

    kvs wrote:
    Austin wrote:Russian rouble is a floating currency so there is a balance between appreciation and depreciation of Rouble versus Dollar.

    Due to this the CBR does not have to burn reserves to support Ruble as it did earlier during 2014 crisis where there was a hard pegging of Ruble versus Dollar and CBR had to defend the peg.

    The only thing CBR needs to be worried is inflation.

    More ever few weeks of bad performance or good performance will not make any impact , they will have to average out Ruble performance over yearly , half yearly or quarterly basis.

    There was not hard peg in 2013/14. The CBR had a range of exchange rates to which it intervened to keep the dollar. Once the full blown speculative attack
    started in late 2014 it became clear that this policy only served to feed free money to NATzO financial saboteurs. Once the intervention policy was terminated
    the ruble became instantly a fully floating currency. The NATzO juggernaut that launched its attack in late 2014 managed to drop the ruble exchange by over
    a factor of two. Instead of being a success this was epic self-snookering and fail because it totally nullified the oil price drop in ruble terms.

    As for inflation. The CBR is clearly engaged in economic sabotage by pretending there is an inflation problem with the CPI being around 3%. Unlike the
    USA, Russia does not use dirty adjustment tricks to hide inflation (such as negative price adjustments on goods under the name of hedonics adjustment).
    The real US CPI is closer to 6% and you can see this in food prices which are going up about 10% per year. Following the CBR criminal behaviour the
    prime rate in the USA should be somewhere around 14%, instead it is zero.


    Yes it was a corrider that CBR was defending.

    What I was trying to say is currently CBR is targetting inflation and not into Currency pegging versus Dollar as Rouble is free floating and market forces decides its rate.

    The only time CBR would defend ruble is there is serious macro economy issue with currency exchange.

    CBR has now determined under want circumstances it would defend ruble if oil price ( Ural Blend ) fall below $25

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    Mindstorm

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    Post  Mindstorm on Fri Mar 20, 2020 2:09 pm

    Vann7 wrote:Real economy is net profits.. what remains left after your expenses..

    and Russian economy ,its energy exports accounts for 40% of Russia budget.. .. What a Face

    for comparisons American economy net profits in energy exports are about 5% of its nation economy.. lol1

    So this is why americans can bring down oil prices to its knees..FOREvER!!!!!
    they don't care ,they can very easily manage the loses with a loan to their energy sector..
    in fact thats what trump is going to do... they do want piece of shit this oil war.. they want to break
    Russia in a milion of pieces the Russian economy..and the easiest way is driving down oil prices ,that affect
    also natural gas prices.. and the alternative of not fighting an oil war with russia ,is a military war , either
    use biological weapons ,as they did to china ,that is very unpredictable the consequences or bombs and missiles war . so for US is millions times better and easier an oil prices war. hands down.. because US shale industry
    is merely a small profit in their pockets.. only about 5% .


    Vann you have few ideas and confused too.

    Some simple points you can surely understand:

    1) USA is insanely indebted -now at over 23,5 trillions dollars in the the most optimistic, as wronged, computation.... - and this debt continue to grow more and more faster than GDP (rather it would be correct to say that the same foundation of US grow today is fully based-on and fueled by debt's grow)

    2) USA federal budget run an huge chronic and growing yearly deficit

    3) US's shale oil industry (and with it the latest USA's "energy independency") is ,since its beginning, entirely debt-depending and its structure is completely subordinated to the willingness of private Wall Street's investors to burn absurd amount of money in well rigs construction and operations, blinded by momentary dividends generated selling future extractions

    4) The Federal Reserve engineered "era of low rate interests" (that obviously worsened furtherly the already critical US debt charge) has been structural to the same possibility of birth of the US shale oil

    5) At today virtually not even a single US shale oil company could generate enough revenues by mere resource's extraction to sustain itself without aiding macro-financial measure and circumstantial factors would weight-in to allow its existence.



    In substance US government created ,accepting immense "hidden losses" in terms of increased debt that will be felt terribly already within end of this same decade, the right environment to LURE private investors toward this sector accepting the risks and the losses that will unavoidably reach them in the middle terrm in order to establish the shale oil industry.

    Only a simpleton could think to the financiary and geo-strategic inpact of shale oil sector in terms of percentage of tax revenue for the US budget, if in facts this deadly grip on the oil price would remain for even only several months what would happen is that not even a single investor would risk anymore a single dollar in the shale sector.

    Without this army of guillible blind investors, maintain into live the "shale oil revolution" and with it the US energy indipendence would cost to US governement several TRILLIONS DOLLARS.


    miketheterrible
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    Post  miketheterrible on Fri Mar 20, 2020 3:07 pm

    https://sdelanounas.ru/blogs/131254/

    Russia's international reserves for the week rose to $581 billion

    According to the Bank, the increase in reserves was the result of "positive market value adjustments and receipts of funds on accounts of the Ministry of Finance of Russia ".

    https://tass.com/economy/1132969

    Bank of Russia keeps key rate at 6%

    MOSCOW, March 20. /TASS/. The Bank of Russia Board of Directors decided to keep the key rate at 6% per annum, the regulator said in a press release following the board’s meeting on Friday.

    I think it should be just down to 2% or lower to spur spending of Russians.
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    Austin

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    Post  Austin on Fri Mar 20, 2020 4:17 pm

    miketheterrible wrote:I think it should be just down to 2% or lower to spur spending of Russians.

    More like 3.5 to 4 % I would prefer
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    Post  Austin on Fri Mar 20, 2020 4:18 pm

    Russian Defense Expenditure And Military Modernization

    https://www.csis.org/events/russian-defense-expenditure-and-military-modernization


    Interesting video
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    calripson

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    Post  calripson on Fri Mar 20, 2020 4:46 pm

    [quote="Mindstorm"]
    Vann7 wrote:Real economy is net profits.. what remains left after your expenses..

    and Russian economy ,its energy exports  accounts for 40% of Russia budget.. .. What a Face

    for comparisons American economy net profits in energy exports are about 5% of its nation economy.. lol1

    So this is why americans can bring down oil prices to its knees..FOREvER!!!!!
    they don't care ,they can  very easily  manage the loses with a loan to their energy sector..
    in fact thats what trump is going to do... they do want piece of shit this oil war.. they want to break
    Russia in a milion of pieces the Russian economy..and the easiest way is  driving down oil prices ,that affect
    also natural gas prices..  and the alternative of not fighting an oil war with russia ,is a military war , either
    use biological weapons ,as they did to china ,that is very unpredictable the consequences or bombs and missiles war . so for US is millions times better and easier an oil prices war. hands down.. because US shale industry
    is merely a small profit in their pockets.. only about 5% .


    Vann you have few ideas and confused too.

    Some simple points you can surely understand:

    1) USA is insanely indebted -now at over 23,5 trillions dollars in the the most optimistic, as wronged, computation.... - and this debt continue to grow more and more faster than GDP (rather it would be correct to say that the same foundation of US grow today is fully based-on and fueled by debt's grow)

    2) USA federal budget run an huge chronic and growing yearly deficit

    3) US's shale oil industry (and with it the latest USA's "energy independency") is ,since its beginning, entirely debt-depending and its structure is completely subordinated to the willingness of private Wall Street's investors to burn absurd amount of money in well rigs construction and operations, blinded by momentary dividends generated selling future extractions

    4) The Federal Reserve engineered "era of low rate interests" (that obviously worsened furtherly the already critical US debt charge) has been structural to the same possibility of birth of the US shale oil

    5) At today virtually not even a single US shale oil company could generate enough revenues by mere resource's extraction to sustain itself without aiding macro-financial measure and circumstantial factors would weight-in to allow its existence.



    In substance US government created ,accepting immense "hidden losses" in terms of increased debt that will be felt terribly already within end of this same decade, the right environment to LURE private investors toward this sector accepting the risks and the losses that will unavoidably reach them in the middle terrm in order to establish the shale oil industry.

    Only a simpleton could think to the financiary and geo-strategic inpact of shale oil sector in terms of percentage of tax revenue for the US budget, if in facts this deadly grip on the oil price would remain for even only several months what would happen is that not even a single investor would risk anymore a single dollar in the shale sector.

    Without this army of guillible blind investors, maintain into live the "shale oil revolution" and with it the US energy indipendence would cost to US governement several TRILLIONS DOLLARS.  

    Don't you know the new economic flavor of the day? Modern Monetary Theory says debt doesn't matter. Simple monetize the debt and keep on going! Now, I don't believe that. Eventually, the debt will result in a debasement of the currency and hyper-inflation. One of the things that is preventing that is a lack of alternative to the dollar.
    kvs
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    Post  kvs on Fri Mar 20, 2020 6:08 pm

    Yeah, the loopy monetarist theory that claims there is such a thing as a free lunch. Economics was always voodoo and not science, but
    the "debt does not matter" "theory" is pure retardation.

    1) Debt servicing costs divert government revenues to paying interest. Zero interest rates are the same as Pancho Villa Peso printing
    operations, so no borrowing has zero cost in a rational system. Even if the interest rates are low, exploding the debt is a big deal:

    https://www.truthinaccounting.org/about/our_national_debt?gclid=EAIaIQobChMIht-ntsGp6AIVhZ-zCh1XTw1uEAAYASAAEgLbi_D_BwE

    https://www.thebalance.com/interest-on-the-national-debt-4119024

    In 2019 the US paid, officially, $393 billion in interest. You can laugh and say it is out of a federal budget of $4.407 trillion. But
    US government revenues were $3.422 trillion, i.e. almost $1 trillion deficit. So the debt is accumulating fast.

    2) Private debt is the same as government debt and is not considered a good thing for some reason. That reason being that
    it diverts liquidity from consumer (or corporate) expenditure.

    According to monetarists, the government can literally create GDP out of nothing by borrowing. So why bother having an economy
    at all and just borrow and spread the borrowed money to the masses. Monetarists have never even demonstrated this ludicrous
    theory to be plausible. All I see is endless brainless quotation (i.e. appeal to authority) and no substance.

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    Mindstorm

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    Post  Mindstorm on Fri Mar 20, 2020 6:36 pm

    carlipson wrote:Don't you know the new economic flavor of the day? Modern Monetary Theory says debt doesn't matter. Simple monetize the debt and keep on going! Now, I don't believe that. Eventually, the debt will result in a debasement of the currency and hyper-inflation. One of the things that is preventing that is a lack of alternative to the dollar.


    The status of dollar as world's reserve currency in this instance play a very marginal role ,if any : the problem here instead is that traditional INVESTORS in the shale oil industry, both US and foreign ones, after the serious LOSSES and ,even more, the realization that the main factor influencing the relaibility and profotability of theirs investment in the sector are HIGHLY DEPENDED on the political choices of foreign entities usually object of direct attacks by part of US government, will very likely shrink notably at a level not allowing the sector, already indebted up to the neck before this crisis, to maintain itself.

    If US Governemnt -and therefore all the american taxpayers - choose to carry on itself the burden of this rescue (and it will be an IMMENSE burden) the shale sector will become enslaved to state subsidy because ,after a similar event, not a single private entity will invest in it anymore.

    In mine opinion, in order to obtain the greater benefits from them,, those type of counter-attacks (extremely evoluted and well timed ,to the contrary of what said by our vann) to the USA's illiberal and unlawful actions on the international arena , should proceed at tears and breaks : let the prices recover so to cause some investors to return to the sector and after a while depress suddenly, at the best conjucture ,again the oil price.

    The reiterated bankrupcy of a growing number of private investors will quickly force the US government to put this heavy sector capable to generate only losses on its shoulders.

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