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    Russian Economy General News: #12

    franco
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    Post  franco Thu Jan 28, 2021 1:57 pm

    Saw this and thought of kvs...

    Our most central central bank in the world

    Ploy number 22

    Charles de Montesquieu also warned Louis XV that

    "Financiers support the state in the same way that a rope supports a hanged man."

    It did not help - forty years later, the collapse of royal finances became one of the main reasons for the French Revolution.

    The Russian Central Bank also hardly heeds the warnings of one of the founders of liberalism - this is plusquamperfekt (difficult times long past). In vain ...

    But what else can you demand from the office, for which for many years all the laws have been rewritten, which allowed (no, not to control its work) at least to keep an eye on the pulse.

    For some time now, there are so many oddities in the legal acts that govern the work of the Bank of Russia that one can simply marvel at it. AND

    "Branch of the American Fed"

    - this is by no means said by us about the Russian Central Bank.

    In our opinion, the most important of these oddities is

    "The Bank of Russia is not entitled to provide loans to the Government of the Russian Federation to finance the federal budget deficit."

    This is from Article 22 of the Federal Law "On the Central Bank of the Russian Federation", which dictates actions according to the principle: save yourself, who can. The pandemic only showed, like a litmus test, this dubious, to put it mildly, legal postulate.

    After all, it was he who either forced or allowed to rotate combinations, such as buying Sberbank "from ourselves." Well, basically, to sit like a dog in the manger, on the multi-billion dollar reserves earned over the "fat" years.

    However, why sit? Everything acquired, judging by all the reports of the Central Bank of the Russian Federation, works and is very good. By being invested in securities denominated in dollars and euros, or simply - in dollars and euros.

    The Fed and the European Central Bank can print them to pay off the dire consequences of the coronavirus, as they please. Moscow doesn't mind. Yes, Beijing is slightly resisting, but where will it go without the American and European markets.

    Buy not sell

    The same Article 22 prohibits the Central Bank from buying government securities at their initial offering. An exception is made only for those cases when it is provided for by the Federal Law "On the Federal Budget". That is, during the privatization of something, or, conversely, during the nationalization.

    The latter is practically not noted in the modern history of Russia, although something similar happened quite recently, when the development institutions were shaken up ( Nanoachievements of the empire of Anatoly Chubais. Failure at the expense of the state ).

    And it suddenly became possible even in a fairly central press, as well as on the pages of "Military Review" to write about the features of Russian nanotechnology ( Optimization of optimizers).

    But then there is more.

    The Bank of Russia, this absolutely independent (it is not entirely clear from whom - from the executive or still from the legislative branch) institution cannot lend to the budgets of the constituent entities of the Russian Federation, local budgets, and even (oh, horror!) Off-budget funds.

    To finance the coverage of budget deficits at any level - too. But it was only before the pandemic that it was possible to make ends meet both at the federal level and at the local level?

    Now times are different - pandemic, quarantine, lockdown. All who can and who cannot are pouring empty trillions into crisis industries, but most of all - into people. Bubbles of euros and dollars have swollen due to the fact that there is simply nothing to provide them and no one.

    But for most countries, whose economies are listed as more developed than Russia, living on credit and with deficit budgets is the norm. For Russia, this was the norm only in the era of reforms. Then we put all our efforts into making the budget surplus.

    Even under the pension reform, almost for the sake of this, they drove themselves. And what - again, everything that is ours by definition, will we give to the enemy? Like dinner. Although, it seems, they did not even have time to have breakfast properly.

    America is not a decree for us?

    Our most central central bank in the world

    Liberal economists who gave a free Central Bank insist that the American analogue of the Central Bank of the Russian Federation, the Federal Reserve System, also has no right to purchase US Treasury bonds. But this, if directly, but no one forbids investing in those securities that have already gone to the market.

    For a long time the Federal Reserve System has been sucking “extra” treasury and mortgage securities from this market. And such clever people as in the Russian (and, incidentally, in the Chinese, and in the Indian, and practically in all) Central Banks, they were all bought out for themselves.

    Keeping the Americans afloat. Since without the United States, it turns out, oh, how scary. At one point, the portfolio of Treasuries and mortgage bonds made up 95% of all the Fed's assets - in fact, a private shop hired by the US government many years ago in order to steer dollars.

    In this sense, the Russian Central Bank is not formally so "independent". But it is invested exactly where it was written by our "independent" colleagues - in assets directly or indirectly controlled by a private company, the Federal Reserve System.

    For the second decade now, the Bank of Russia's investments in assets that are de facto or de jure outside Russia have exceeded 60% of all its assets. And only a third of them account for loans and deposits within the country, as well as for precious metals. In other words, it can work domestically as well.

    Time will tell nothing

    The beginning of the year is the time for all sorts of reports. And we will find out how things are going with the reserves of the Central Bank of the Russian Federation, with the budget deficit, with the spending of the Reserve Fund and the National Welfare Fund. And also, let's hope, with the pension fund - that is, with the funds of the Pension Fund.

    Experts know that with the unfolding of the war of sanctions, the Bank of Russia has become more active in the stock and foreign exchange markets. It is risky, but everything is better than just investing in foreign assets (“passive”).

    However, at the same time, the Central Bank of the Russian Federation did not bother with extended lending to its main wards - commercial banks. Although, due to the pandemic, it would be very logical. There are a number of industries, and very high-tech ones, which are growing by leaps and bounds due to pandemic, quarantine and lockdowns.

    And there is no doubt that banks also lend them. But basically they are not those whom our most central Bank of Russia in the world has long and stubbornly deduced among the most "chosen" ones.

    Author: Alexey Podymov, Anatoly Ivanov, Doctor of Economics
    miketheterrible
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    Post  miketheterrible Thu Jan 28, 2021 2:06 pm

    Most nations national banks are like this as it was written by the IMF and World Bank.

    I wonder when Russia will take back full control of its central bank?

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    par far

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    Post  par far Thu Jan 28, 2021 6:47 pm

    miketheterrible wrote:Most nations national banks are like this as it was written by the IMF and World Bank.

    I wonder when Russia will take back full control of its central bank?


    I read an article back in 2016, which talked about the Russian banking system. It talked about how Russia should take control of the Russian central bank and author said said the pushback would be more than sanctions and war(this was when the Donbass was very active and sanctions were being introduced.)
    Kiko
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    Post  Kiko Thu Jan 28, 2021 8:12 pm

    Russia creates a new product for export
    January 28, 2021

    The Central Bank of the Russian Federation in February for the first time in history will start minting gold coins weighing an ounce. This is a global standard for weight, which means that such coins will be in demand abroad. Now Russia will be able to earn not only from the export of gold bars, but also gold coins. How successful will be the Russian response to the sharply increased demand for investment in gold?

    The Bank of Russia has put into circulation the first batch of 2021 investment gold coin "George the Victorious" with a face value of 50 rubles. On the reverse side there is a relief image of St. George the Victorious on a horse, striking a serpent with a spear. The mintage of the coin is half a million pieces. However, this gold coin is not in demand abroad, unlike Russian gold bullion. Because the mass of the precious metal of the coin is 7.79 grams - that's a quarter of an ounce (31.1 g).

    “All coins in the world are traded in ounces. This is the main measure of weight for coins. Other mints can also mint quarter-ounce coins, etc., but the main coin is the one-ounce coin. All mints have it - American, Australian, whoever you take. This is the flagship of sales, ”says Aleksey Vyazovsky, vice president of the Golden Mint House.

    However, Russia has never had such a gold coin weighing a troy ounce. The Russian Central Bank has been minting one single gold bullion coin since 2006. This is "George the Victorious" in 7.79 grams.

    “All these 15 years our Central Bank has been asked when there will be an ounce coin, how is it in the whole world? To which the regulator replied that there is not and will not be an ounce coin in Russia because the average Russian cannot afford to buy a gold coin for 150 thousand rubles from his salary (now the average salary in the country is 47 thousand rubles). This is the official answer, ”says Vyazovsky.

    However, at the end of 2020, the Russian Central Bank, quite unexpectedly for the market, announces that in 2021 it will nevertheless begin to mint the ruble-denominated ounce "George the Victorious".

    “According to my information, minting will begin in early February. And in March we will be able to hold this coin in our hands. This is great news for the market ", says Alexey Vyazovsky.

    What does the appearance of a new investment coin weighing per ounce give Russia? This means that Russian gold will appear on the world market not only in bars, but also in the form of coins. “Our gold in the form of ounce coins will be in demand in the West, because an ounce is a global measure of weight,” says Vyazovsky.

    Now Russia will be able to earn not only on the export of gold bars, but also on the export of gold coins. And this is a new source of income for the Russian economy. Last year, Russia set a record for gold exports. In the second quarter, even more Russian gold was sold worldwide than Russian gas. Thus, Russia earned $ 3.55 billion from the sale of 65.4 tons of gold, and only $ 2.4 billion from the sale of gas (in April and May)

    On the one hand, due to the pandemic, gas sales have decreased, and on the other, Russia has more gold bullion for sale abroad. Last year, the regulator suspended the purchase of gold for reserves, which has been actively done in recent years. This was done, among other things, in order not to accelerate inflation: the purchase of gold in the country's reserves creates additional emissions into the Russian economy.

    By the end of 2020, Russia earned $ 18.5 billion from gold exports. This is four and a half times more than a year earlier. In quantitative terms, gold exports increased 2.5 times compared to 2019, to 320 tons (data from the Russian Export Center).

    Now Russia will be able to sell about half a million ounce gold coins "St. George the Victorious" a year, Vyazovsky expects. With an ounce price of 140 thousand rubles, for 500 thousand gold coins it will be possible to gain 70 billion rubles, or almost about one billion dollars.

    Russian gold bullion was bought only by institutional investors - stock exchanges (London or New York), banks and others. And investment coins, which, unlike bullion, are not subject to VAT, can be bought by private foreign entities.

    In addition to replenishing the budget, the expert believes, this coin will also provide additional PR to Russia in the international arena. Many admire the design of the symbols of other people's coins - the Australian "Kangaroo", "American Eagle", now foreigners will be able to appreciate the Russian "George the Victorious".

    “It seems that this is the response of the Russian Central Bank to the sharply increased demand for investments in gold as a means of preserving capital. This interest is spurred both by the Central Bank's policy (lowering deposit rates) and by a very stable tendency for the ruble to fall in the long term, which is why the population is looking for an alternative to traditional instruments, "said Alexander Kuptsikevich, leading analyst at FxPro.

    Interest in gold continues to grow. Firstly, it is insurance against the depreciation of currencies subject to the emission of the Central Bank. Secondly, the demand for risky assets is growing.

    “The worst-case scenario for gold is uncertain economic growth, when inflation remains low, governments are already moving from spending hikes to prudent fiscal balances, and central banks are preparing to raise rates. But it is too early to say that the world economy is at this point, ”Kuptsikevich said.

    The price of gold has slightly moved away from historical highs, but the trend for its growth has not yet been broken. “It is possible that the pullback in gold will end soon, opening the way to new highs. Already this year, the price is able to rise to 2300 dollars from the current 1845 dollars, ”the source said. “Our forecast range for gold prices for this year remains at $ 2,200-2400 per troy ounce, which suggests attractive growth potential,” says Vitaly Gromadin, senior analyst at BCS Investment World.

    https://m.vz.ru/economy/2021/1/28/1082278.html

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    Arrow

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    Post  Arrow Mon Feb 01, 2021 11:23 am

    Why do many people now say that the Russian economy is stagnating? Is it a slight increase in GDP? After all, GDP is just one of many measures. In Russia, there is now a lot of all kinds of investments, etc. Is it difficult to talk about economic stagnation in such a case?
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    Post  Vann7 Mon Feb 01, 2021 11:55 am

    Arrow wrote:Why do many people now say that the Russian economy is stagnating? Is it a slight increase in GDP? After all, GDP is just one of many measures. In Russia, there is now a lot of all kinds of investments, etc. Is it difficult to talk about economic stagnation in such a case?



    Because it is stagnating.

    Even RT is sounding the alarm of russia major decrease in the population ,even after absorving
    a 2 millions of ukrainians refugees and absorvign another 2 millions of crimeans , russia population decreased in 2020.

    Even RT report of the failure of Putin in promoting more birth rates in Russia. and this is largely connected with economy stagnation and jobs.


    The importance given to the subject can be seen by the fact that in both 2019 and 2020, Russian President Vladimir Putin devoted significant sections of his annual speech to the Federal Assembly to policies designed to encourage Russians to have children. However, the fact that Putin felt obliged to return to the topic in 2020 was evidence that the steps outlined in 2019 had proven ineffective.

    To date, his pro-natalist policies are not having any obvious impact – in fact, since they were introduced, fertility in Russia has actually declined.

    In part, this is due to economic reasons, most notably the fact that Russian incomes have stagnated, or even fallen, in recent years. A few additional financial incentives from the state cannot compensate for the lack of money in people’s pockets in the first place.


    https://www.rt.com/russia/514186-demographic-situation-worrying-moscow/

    Russia today in early 2021 have half a million less people than in 2019  ,even with all the migration Russia received from secular and christians in syria war ,from armenia ,from ukraine ,from georgia ,from abkhazia . the cold reality is that russia young population if leaving Russia in mass ,specially women.  I see all the time their videos on youtube , with titles finally moved russia and i can't blame them , reason they leaving
    is because bad economy ,decaying quality of life in russia , and because is much better in the west its weather and love more western culture ,than outdated russia culture. latin america and latin parts of europe are their top places to move.

    While orthodox people are decreasing at a very accelerated rate in russia ,the muslim population is significantly increased.  While i will do if i was president of russia ,will seek to build in a couple of decades plan , a new kind of "soviet union" but this time democratic and free and joined by nations from south america . With Russian military bases there.  russia needs to expand otherwise will die if stay there in the asian continent.

    Make no mistake losing half a million people in just 1 year ,this is the most accurate poll ,possible of how putin is losing popularity. when any family choose to move of its motherland and choose another country something that is a very huge risk .. is because that family don't feel their quality of life is going to improve anything soon with the current government ,which is putin who controls it. So this is very bad news and there is no way putin can reverse this.. it will get worse the more sanctions russia will get and no ammount of olympics medals will fix this. only a modern economy post industrial revolution /space business revolution could bring jobs back and society to return to russia .

    PhSt
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    Post  PhSt Mon Feb 01, 2021 1:57 pm

    @Vann, so since Putin performed poorly in trying to maintain economic growth and increasing the population, would you agree that it is time for Putin to get kicked out and get REPLACED by someone like Navalny? Laughing
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    Post  calripson Mon Feb 01, 2021 4:34 pm

    No, Russia's birthrate is experiencing the effects of the disastrous 1990s under Yeltsin - that missing generation is now the women of child bearing age and there just aren't enough of them. Has nothing to do with Putin and his economics. It is the donut hole effect. Russia must institute an immigration policy allowing talented young immigrants from Western Europe, Canada, Australia, and the USA. They can be selected to make sure only suitable people get admitted. You would be surprised how much demand there would be given Russia's low tax rates and land. It is easier to boost a country's economy by allowing grown educated young adults to contribute immediately rather than wait 20 years for a new generation.

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    Post  flamming_python Mon Feb 01, 2021 4:36 pm

    PhSt wrote:@Vann, so since Putin performed poorly in trying to maintain economic growth and increasing the population, would you agree that it is time for Putin to get kicked out and get REPLACED by someone like Navalny? Laughing

    Replace diarrhea with the plague?

    No, simply criticism is warranted where it's due

    In the same manner I have no problem giving credit to the government where it's due as well.
    Population growth stimulus measures had some effect. But what really needs to happen is a reduction of housing prices, mortgage rates and more availability of 3-4 bedroom flats in the city. You'll see more of an increase in birthrates from that from all the maternity capitals, prohibitions on gay parades, etc... put together.

    calripson wrote:No, Russia's birthrate is experiencing the effects of the disastrous 1990s under Yeltsin - that missing generation is now the women of child bearing age and there just aren't enough of them. Has nothing to do with Putin and his economics. It is the donut hole effect. Russia must institute an immigration policy allowing talented young immigrants from Western Europe, Canada, Australia, and the USA. They can be selected to make sure only suitable people get admitted. You would be surprised how much demand there would be given Russia's low tax rates and land. It is easier to boost a country's economy by allowing grown educated young adults to contribute immediately rather than wait 20 years for a new generation.

    That as well but the fertility rate is independent of the absolute numbers of babies born, or the number of immigrants.

    The fertility rate has dropped a couple notches again in recent years.

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    Post  calripson Mon Feb 01, 2021 7:03 pm

    Fertility rates are given for a range of woman's ages but the propensity to have a child is not uniform across the age range. Fertility rates are also inversely related to economic prosperity in advanced economies - the more education and wealth women have the less children they want. Fertility rates in America among white women are falling rather quickly. The most determinant factor for number of children is religion - the more religious the woman the more kids she tends to have.
    Kiko
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    Post  Kiko Mon Feb 01, 2021 9:10 pm

    Capital inflows. Foreigners Appreciated the Success of Government State Capitalism
    https://sdelanounas.ru/blogs/139163/#cut

    Foreign investors are increasing their investments in the Russian stock market. Non-residents are buying up Russian bonds at a record pace over the past two years. Thus, since the beginning of the year, foreigners have invested $ 320 million in Russia.

    All this suggests that non-residents see great prospects for the Russian economy and, before it's too late, are in a hurry to enter our stock market. Of course, this became possible thanks to the success of the government's policy of state capitalism.

    But first things first

    Most recently, we did a review on the stock market on our YouTube channel " Dvinsky Club ". They talked about the state-owned company Mosbirzh, which in the coming years may become an important subject of the Russian economy.

    However, back to the stock market. The inflow of non-resident capital to our country began in the third quarter of last year. It was then that the first successes of the policy of state capitalism became visible. Namely, it became known that by the end of 2020, the Russian economy will fall much less than the economy of a number of other states. Although in the spring various experts, including domestic ones, predicted a complete disaster.

    The effective use of the instruments of state capitalism (the mechanism of limited emission, reduction of the key rate, support of key sectors of the economy ) made it possible, on the one hand, to preserve a sufficient amount of resources for subsequent state investments, on the other hand, to suppress the most sensitive consequences of the crisis.

    As a result, by the end of the year we have minus 3.5-4%, while in Europe this figure is minus 7-8%.

    Of course, foreign investors appreciated this and rushed en masse to buy Russian bonds. Of course, they can be called speculators seeking to get good income while eliminating all kinds of risks, but the stock market is already a reality today. You can't do without it. But it is important to establish state control over stock market instruments (in particular, exchanges), which we talked about in our video material.

    The geography of foreign investors was distributed as follows:

    32% - Europe (excluding Britain)
    23% - USA
    19% - Asia
    4% - Britain

    On average, $ 150-200 million in capital flows to Russia from non-residents per week. Mainly, OFZs are being bought. And here it has an excellent opportunity to use foreign money to develop the real sector of the economy.

    With proper planning, the stock market is an investment attraction tool. Russia has a huge number of promising projects that require colossal investments. There is money inside the country, of course, but it would be more efficient to use foreign funds, as happened in the case of the Amur gas chemical cluster.

    Andrey Belousov at the start of his career worked at the State Planning Commission. Therefore, I am sure that the First Deputy Prime Minister's planning is all right. If Anton Siluanov does not slow down with his accounting calculations, then foreign investment can become an important driver of economic development.

    In conclusion, I will note the following important point. The inflow of foreign capital through bonds does not make non-residents shareholders of certain Russian projects. They simply lend, but do not claim permanent ownership of companies and industrial facilities. Therefore, there is no risk that foreign capital will buy up important sectors of the domestic economy.

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    Post  Kiko Tue Feb 02, 2021 8:52 pm

    Russian academics have proposed radical economic reforms
    February 1, 2021

    Russian academicians Abel Aganbegyan, Boris Porfiriev and Corresponding Member of the Russian Academy of Sciences Alexander Shirov have proposed doubling the funding of anti-crisis measures and raising the minimum wages in the country to 20 thousand rubles. These initiatives are contained in a report prepared by academics.

    Economists said the anti-crisis measures already taken don't really take into account the impact of the coronavirus. Therefore, additional measures should be taken.

    According to the academicians, it is necessary to double the financing of anti-crisis measures. This money should be spent on raising the minimum wages to 20 thousand rubles. Unemployment benefits should rise to 20-25 thousand rubles, pensions - up to 22 thousand rubles, writes  Vedomosti.

    Experts also advise recalculating all loans issued by residents of the country at a rate of 8% per annum. It is also proposed to abolish the income tax on small salaries and introduce a progressive tax on earnings of more than 100 thousand rubles per month. In addition, economists propose to return to the planned regulation of socio-economic development.

    https://yandex.ru/turbo/if24.ru/s/rossijskie-akademiki-predlozhili-radikalnye-ekonomicheskie-reformy/?publisher_logo_url=https%3A%2F%2Favatars.mds.yandex.net%2Fget-turbo%2F1376139%2F2a00000164d1c9dab0688876018ce3e7bee6%2Forig&promo=navbar&utm_referrer=https%3A%2F%2Fzen.yandex.com
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    par far

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    Post  par far Thu Feb 04, 2021 8:16 pm

    Not directly related to Russia but still economic activity that may have a effect on Russia.





    https://news.cgtn.com/news/2021-02-04/West-s-central-bank-balance-sheets-jump-by-250-China-s-forex-reserves-XBmXCNlsPe/index.html




    https://www.globalresearch.ca/consequences-moving-from-industrial-financial-capitalism/5734665

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    Post  Big_Gazza Fri Feb 05, 2021 6:14 am

    par far wrote:Not directly related to Russia but still economic activity that may have a effect on Russia.

    https://news.cgtn.com/news/2021-02-04/West-s-central-bank-balance-sheets-jump-by-250-China-s-forex-reserves-XBmXCNlsPe/index.html

    Western central banks are just printing money again... seriously, its not like they have USD 8T just lying around doing nothing and readily available for "asset acquisition".

    The differences in balance sheet expansion among major central banks reflect their different monetary policies. The Fed went all in, while China's policymakers stocked ammunition for a potential recession in the future.

    The Fed took unlimited QE, while the PBOC cut reserve requirement ratio (RRR). The different policies also meant that China's broad money M2 grew significantly slower than that of the United States.

    Well duh...  US money supply rose cuz they are running the printing presses until they glow red hot and start to smoke... and the Chinks don't.  Fucking geniuses, these financial journalists....

    par far wrote:
    https://www.globalresearch.ca/consequences-moving-from-industrial-financial-capitalism/5734665

    Yep, right on the money in terms of the content discussing the de-industrialisation of the US economy and the reality behind the OBOR program in Eurasia.

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    Post  Vann7 Sat Feb 06, 2021 10:30 am

    PhSt wrote:@Vann, so since Putin performed poorly in trying to maintain economic growth and increasing the population, would you agree that it is time for Putin to get kicked out and get REPLACED by someone like Navalny? Laughing


    -Putin is a heavily incompetent patriot . patriotic yes , want to do the right thing but don't know
    how to do it ,because he don't understand how to fight the west ,seeking to destroy russia. so he is a bad president for being a massive ignorant.

    -Nalvany is a heavily incompetent traitor , he knows what he is doing ,he is simply an opportunistic
    waste of human  , and unfortunately hanging him in public ,will only make him more popular and help create more opposition. so they should arrest him for lifetime and zero visits of anyone , he could offer him in change of wikileaks julian assange however. That will expose the hypocrisy of the west.  russia

    So both incompetent in their own ways ,still none less they are both dangerous for Russia.
    People might argue that nalvany is more dangerous ,but i disagree , i don't think navalny have
    ever a chance to take power. While putin is in power and his actions or inactions allows the west
    to attack russia and get away with it ,without any consequences.

    Putin is dangerous for being a massive ignorant of what he have been doing on his 20 years ,
    while he did actually "saved Russia" by removing the traitors and enemies from power ,and
    nationalizing those super important business ,for the nation security , like its energy industry
    and full control of its defense industry and shutting down banks money laundering money. At the same time he developed the most laziest kind of economic model any amateur could have ever done.
    Overwhelming majority of Russian economy , the russian budget each year is dominated by commodities style economy , that is energy ,mining  and food exports just like venezuela and african nations third world nations.

    The problem with those economic models is...
    1) That completely ignores how easy is for the west ,for nations seeking to destroy Russia , to sabotage that economy of russia ,when he rely in those things.  Putin in 2014 in economic forums told every billionaire the most laziest thing , go and invest in agriculture ,because the goverment will be buying most of the food domestically (after europe sanctions began over ukraine)
    2)completely ignore that russia is facing war , so what putin is doing will be similar to get a job in construction building project , in the middle of a war zone , when enemy snipers are positioned in the building near it , firing not only at every door and window you build ,but also at you too.
    If you see war going on , regardless of the country in the planet you are ,you need to stop the aggressor first ,you can't just ignore your enemies ,turn your back on those firing at you , that are openly calling for a reward for your head. on real practice life ,most civilians will call police first and seek safety first before going to that job. But in Russia case ,the police is a corrupt one ,that is the one firing at you at, the orders of a corrupt government/tyranny/system in place.

    Means ,that Russia have no options left other than a) to dialogue with them ,influence them so they don't stop doing what they doing ,trying to destroy your business but also kill you.
    or  b) to fight back. The problem is that putin in 20 years , he have failed to influence their enemies
    to stop  (not surprisingly) because the west will not give up their system/empire ,that took them many decades to build. No neither putin have influenced the west so they stop with dialogue ,neither putin is fighting them .  So because dialogue is not possible , Russia needs to fight back , can't ignore the bullets aimed at them ,can't ignore US military nuking exercises on russian borders ,can't ignore US alliance with international terrorism ,arming terrorist to kill their military ,which they have done many times in syria and other places. Can't ignore US embassies ,NATO embassies being used as center of recruit of opposition , to destabilize Russia.  So if dialogue is impossible with imperial anglo west ,what's the point of those embassies in Russia in the first place?  to promote tourism? Laughing

    So once people realize that Russia have no options left other than war. if Russia enemies declare war on Russia , russia need to defend itself and fight back ? don't you think? ignoring your enemies as putin is doing and being a broken record ,asking them for "good relations" only show extreme weakness , show that putin is afraid of a fight and will be allowing their enemies to bully russia every week ,dodging bullets ,allowing their enemies to firing missiles ,allowing enemies to freely organize near its borders with missiles aiming at russia.  The last time the west did that on russia ,was during the soviet union , that deployed missiles on turkey and naturally the soviets had a strong leadership responded with missiles in cuba. which they did not allowed ,what created the missile crisis .  see the difference?

    Putin allows its enemies to continue attacking Russia ,allow them to slap his face and then later turn the other cheek for more slapping. this is retarded foreign policy and a very dangerous thing to do, because  by showing so much weakness ,what putin is telling its enemies ,is that they can continue
    attacking russia non stop and get away with it ,so the west will increase step by step the level of their
    agression to see how far they can go with weak president putin. and if we are to believe what the former russian intel officers are saying in youtube, that russia is facing a biowar, so called covid19..
    then this is an agression as serious as serious can be..

    imagine for a moment that is discovered ,that iran secretly smuggle biological bombs in US in the west ,to paralize and destroy the US economy and cause hundred of thousands of deaths.. how you think US and NATO will respond?  iran will be nuked to death and its government demanded incondictional surrender.. well guess what ? US attacked russia with bio weapons and putin offered air conditoners and face mask. Rolling Eyes No

    What putin is doing is a very dangerous game , its weakness encourage the west to increase every year ,more and more the level of agresion on russia. Putin thinks he can handle those games ,but this  
    is non sense. .this is not an strategy that can be sustained ,but pure cowardice what he is doing.

    So Russia needs to fight back.. because have no other choice. the west unfortunately declared war
    on russia and all its allies and russia can't stay iddle ,inviting the american embassy to christmas parties as putin did ,when the west fired hundred of russian diplomats and invaded their embassies and stole that property. The west don't follow any international law and russia is supposed to play by the western created rules. No

    So Russia needs to fight back ,is as simple as that. now when people can accept that reality .
    then we can move forward to the next question ,how russia will fight back?  i don't think starting
    a nuclear war is a good idea , but there is actually something Russia can do and the most amazing thing of all ,is that can even avoid a war.. and what that is ?

    That Russia fight back the western system with innovative and modern business.

    If Putin had any brains to understand what he really did in those 20 years in power , he will have reversed the things he did very bad. that is the economic model of russia and instead of gas stations and olympics epenis contest ,and fighting in surpassing the west in bananas production and wheat records.. where putin needs to fight is in those business ,that influence more the anglo western world and their allies , those things that most society enjoy. This problem Russia face ,created by putin incompetence , needs to be seen as .. do this or die.  fight the western system with business or fight them in a nuclear war, because those are the only options possible ,that will happen if Putin's continue using weakness and politeness as away to try to influence the west ,to not punish Russia to much . No   but he don't understand that the west is encouraged to be more hostile ,when they see weakness of putin . Putin also appears to be delaying this war as much as possible ,so for them to be "ready for that war ", but this is silly ,it will be like allowing hitler to capture all main europe ,capture britain ,capture america ,allow them to become incredibly strong and powerful ,and let enemies choose everything ,when and where and how the war will start , and allowing them to throw the first massive strike first.

    Like i said , it doesn't serve anything putin to "Rescue" russia economy from the early 2000's economic crisis ,to let it later sink again ,as the west already did with russia ,versus russian empire ,versus soviet union and now attempting to do versus russia federation.  The west is using their embassies and their social media as center of recruitment of opposition and also of islamic terrorism.
    And putin just allow this ,because he is so lame ,that did not developed an independence from the western business world  yet.  The only nation in the world ,that is fighting back the western world is china , with an alternative system , alternative banking world , alternative high tech industry ,alternative internet too , alternative semiconductor industry , and so and so.. china is aiming at total
    independence from the west and becoming an alternative to the western anglo world , and they are doing that wihout firing a bullet ,just building a very modern and advance economy ,that directly fight
    and competes with the western one. This is very important ,because no empire can exist today in the world without business influence.

    So is the so called "soft power" ,what putin have completely forgotten , he completely misunderstand the west , he don't understand his own young generations , while putin try to promote the great old past , in russia  with a backward looking culture ,and business model , the west is all the time innovating with modern business that becomes global and win the hearts of the world.

    putin need to stop ignoring the west and use china as an example ,the things they doing right in business ,to also join them ,and challenge the western system ,not with politeness and with discourses of right or wrong but with leadership in advance business ,that counters the most popular business the west have.  this will create a new system and new culture with short time , and modernize russia  and develop a major influence on its own society , this is what kills oppositions ,and unite population ,when they see their country and its business are much better than western ones and a lot of jobs for them are created.  Also putin needs to stop trusting in jews  and muslims for high positions , they have been 5th column of russia since russia exist. even during the rurik dynasty ,they were a 5th opposition..all the revolutions that russia ever faced were done either by jews or muslims,  Interesting facts that you will not read in any russian school book or media for fear of promoting ethnic divisons, catherine the great even warned about them ,and not allowed ethnic minorities ,specially jews ,to live in moscow for fear of organizing to overthrow the government. they neither were allowed to get high level education at school   Shocked  something that will be not good today to do ,neither necessary to go that far ,even more interesting fact. it was jews who killed not one but two russian tzars, and the anglo powers recruited them in both times ,their embassies in Russia were used as centers of organizing civil unrest in russia and today is not different ,they now recruited nalvany and its minions . Today the 5th column in russia are called "liberals" but they are jews. and this topic is banned from russia ,for fear of creating an open religious war , which is happening anyways but in secret. and the atheist west ,is fully aware of this divisions in russia and take advantage of it , seek to exploit them even more.
    Kiko
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    Post  Kiko Sat Feb 06, 2021 2:22 pm

    Russia's main achievement may lose its gold
    February 4, 2021

    In 2020, Russia set several economic records at once. The main one is an increase in the share of non-resource non-energy exports to 48%. This includes unprecedented gold sales - it was sold abroad for $ 18.5 billion. However, precious metals can be excluded from the list of non-commodity goods. Does gold deserve such an attitude towards itself and can it be considered a raw material?

    The Russian economy in 2020 contracted much less than economists, including foreign ones, expected. Bloomberg analysts expected a larger fall in Russia's GDP than it turned out to be in reality - only 3.1%. Compared to most of the world's largest economies, Russia has experienced less recession, the US has to admit. They see the reason for Russia's success in the decision not to introduce a lockdown in the second half of the year. This, of course, played an important role for the economy.

    However, the Russian miracle has other reasons as well. And one of them is the growth of non-resource non-energy exports against the background of falling oil and gas sales due to the epidemiological situation. The share of such exports was 48% of the total. For ten years, Russia has been able to increase it by almost three and a half times. In 2000, our country sold non-commodity goods abroad only for $ 46 billion, and by the end of 2020 - for $ 160 billion. Compared to last year, its volume increased by 3.5% (data from the Russian Export Center).

    The main drivers of growth were precious metals, as well as agricultural and food industry products. Moreover, record sales of gold abroad are of particular interest. REC estimates the export of Russian gold in 2020 at 320 tons. This is two and a half times more than in 2019. Moreover, in monetary terms, this is an increase of four and a half times, to $ 18.5 billion. This is logical: in conditions of uncertainty and crisis, gold, as a protective asset, is in high demand and is growing in price, showing peak values.

    Gold has indeed become one of the important growth drivers for non-resource exports from Russia. However, in Russia there was a discussion about whether gold should be included in non-resource exports.

    “At the moment, there is a discussion whether there is a need to exclude some export items from the calculation of non-resource and non-energy exports, including gold. There are different international practices for gold, some consider it not quite a marketable commodity, ”REC General Director Veronika Nikishina recently noted.

    “Gold sales have become a factor that has seriously changed the dynamics of exports - for a more complete picture, gold should be excluded from the list. Improving the methodology for calculating export positions is a correct and necessary decision, which will make it possible to obtain more objective data, "says Pavel Sigal, First Vice President of Opora Rossii.

    Gold is indeed a controversial subject. What is generally referred to as non-resource exports? In fact, it is not only products of high value added (deep processing of raw materials) in the form of clothing, furniture, cheeses, canned food, engineering and pharmaceutical products, etc. The inclusion of these goods as non-raw materials lies on the surface. However, there are also products of low and medium processing, which are also referred to as non-raw materials.

    Intermediate products are referred to non-primary products of middle processing. For example, meat. Canned meat is a highly processed product, and raw or frozen meat is of medium value. To create this product, you need to go through a rather difficult path from the production of feed that feed livestock to the production of meat. The same situation is with cellulose, which is a product of deep processing of wood, although this is not a notebook or furniture yet. Rolled steel belongs to the same category, since first pig iron is produced from ore, then steel, and only then rolled steel. This also includes flour, cereals, vegetable oils, sugar, construction wood products, facing tiles, building blocks, pipes, etc.

    Most of the questions can be raised by low-value-added products, because they have a low degree of processing. It includes, in particular, crop products (grain, oilseeds, industrial crops, vegetables, fruits, etc.), chemicals (ammonia, sulfuric acid, soda, alcohols, ethers), fertilizers, lumber, processed stone, cast iron, etc. steel. This also includes unprocessed non-ferrous and precious metals, in particular gold.

    If gold is removed from the list of non-commodity exports, then, of course, the overall indicators will decline. And the share of oil and gas exports will grow again. The new calculation methodology will make the goals of the national project more difficult to achieve, but REC considers this approach to be fair.

    However, the entire export success of Russia cannot be attributed solely to the growth in gold sales. This was far from the only driver of growth in non-resource exports, and not the most significant.

    In addition, even if gold exports are excluded from the calculations, over the decade Russia still showed a serious breakthrough in non-resource exports - from $ 46 to $ 141.5 billion (excluding the $ 18.5 billion earned on gold in 2020).

    Meanwhile, the export of the agro-industrial complex has become a more significant driver for non-resource growth. Last year, it increased by 18% and exceeded $ 30 billion. In particular, Russia sold 2.6 times more beef abroad and twice more pork than a year earlier. Wheat exports increased by 20% and vegetable oils by 16%.

    “The difficult situation in the world has left its mark. The share of agro-industrial complex products increased significantly, and in monetary terms. Affected by the fact that for certain items - wheat, sunflower, oil - prices on the world market increased by 20-30% compared to last year, ”says Pavel Sigal.

    Moreover, agricultural exports showed a sharp leap in the first half of 2020. “According to the results of the most difficult year in terms of coronavirus restrictions in the first half of 2020, the share of non-primary exports reached 43% in the total volume of exports. Over the same period in 2019, this indicator was 10 pp less. The greatest growth was shown by: sugar - five times, meat and soybeans - two times, corn - 39%, sunflower oil - 38%, wheat - 14% ", - notes the associate professor of industrial economics of the PRUE. Plekhanov Oleg Kalenov.

    “In many countries, due to the pandemic, the planting of crops was disrupted, and food shortages were avoided, including due to Russian products, therefore, its export grew in 2020 by 20% on an annualized basis, ”notes Artem Tuzov, executive director of the capital market department of IC“ Univer Capital ”.

    The growth of agricultural exports was also facilitated by the opening of new sales markets. The most popular export destinations for agricultural products are Turkey, Egypt and China, REC notes.

    The results of January 2021 allow us to hope that this year the export of the agro-industrial complex will show new heights. So, in January of this year, it grew by another third - to almost 2 billion dollars, largely due to the export of grain, meat and dairy products.

    The pandemic has also led to an expansion in the list and volume of exports of medical products, from masks and gloves to medical equipment and medicines. According to the PRUE, the export of medicines and medical equipment for 11 months increased by 41% and 45%, respectively. In addition, the export of polymers increased by almost 40%.

    Also, the turnover of e-commerce has increased significantly, which was facilitated by the massive transition to the online population against the backdrop of quarantine measures.

    “The Russian export of digital technologies is also gradually developing. For example, the ITPS group of companies in 15 years was able to go from a small Perm IT service provider to a large international player. The share of exports in the total revenue of the company is over 60%, ”notes Oleg Kalenov. The company operates in Uzbekistan, Kazakhstan, Iraq, Africa and South America.

    Text: Olga Samofalova

    https://m.vz.ru/economy/2021/2/4/1083544.html

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    calripson

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    Russian Economy General News: #12 Empty Gold

    Post  calripson Sat Feb 06, 2021 4:20 pm

    Gold is a commodity like any other. No need to exclude it.
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    Post  GarryB Sun Feb 07, 2021 6:11 am

    The Russian economy is outstanding considering the situation it is in.

    The Russian economy is not even the worst in Europe except that Europe is not under sanctions and economic and political isolation from the western world like Russia currently is.

    Look at other countries currently being treated like Russia by the west... Cuba, North Korea, Iran... these are countries that are actually suffering and their only fault is not capitulating to US domination, and they are being economically crushed by the US and the west for that.

    Russia is able to weather this pressure from the west because it is a big country with its own resources and technology and a smart well educated population.

    For other countries around the world the US and the west has them afraid of becoming the next Cuba or North Korea or Iran... Iran has oil and should be a wealthy country, but like the other two countries they object to being owned and controlled by the US 1% who asset strip third countries of their oil or mineral wealth and then leave those countries when they are drained... with the local people earning very little in return.

    Russia is not world cop, but offers an alternative to the west that can provide all the things the west can provide but without all the strings and demands for reform to become more western like.

    China is the same but they are too tied to the west right now because that is their primary market... they don't understand that even poor countries buy things and often don't demand discounts and end up paying much less than you might think like western countries do.

    The US and the west dominate the international world and the international economy, but their use of their power and position has turned Russia away and is turning China away too and that alone would be enough for the rest of the world to start thinking about looking to Russia and China for future development and growth.

    Putin does not need to destroy the US... he doesn't even need to fight it... he can simply stop trying to get the west to ask him to the dance or the party and start looking at all the other options Russia has with the rest of the world which look vastly more promising for Russia and for the rest of the world.

    The west defined the world as being split into three pieces... the first world... them, the second world was the commies... similar technology but just not quite us... and the third world under developed and needing a hand... well after a few hundred years how many countries they called third world have moved up... how many have developed and grown as countries... and those that have... how has the first world helped and supported such development?

    Just look at the west now and how they treat Russia and China... no room in the first world for anyone from the second world... the thing is that Russia likely wont benefit from being in the first world anyway... and should focus on helping third world countries get to the second world... not with communist ideology... just free and open trade and cooperation to encourage development and growth for both sides of the trade partnership...

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    franco
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    Post  franco Mon Feb 08, 2021 10:45 pm

    A Russian think tank view

    World Economy: Results of 2020 and Prospects for 2021
    The share of real production is of key importance, both in the internal economic structure of the state and in the international division of labor.

    https://qn7veek3vy676ftip3x3nsvd5y--russtrat-ru.translate.goog/analytics/8-fevralya-2021-0010-2931
    kvs
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    Post  kvs Mon Feb 08, 2021 10:56 pm

    So American tourists spent about $155 billion US per year abroad while Russian tourists spent $35 billion US per year abroad. Not too
    shabby for a country with a faked low forex rate. Without the BS devaluation by a factor of two following 2014, we would have
    seen much more spending abroad, likely by a factor two. (Using the logic that the same amount of rubles is spent in either
    case). If foreign tourism spending is a rough measure of the GDP, then the real size of the Russian GDP is about 50% that of the
    USA. This is based on the idea that Russian tourism is not pathologically high relative to the USA.

    franco
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    Post  franco Tue Feb 09, 2021 10:39 pm

    Andrey Kruglov will leave the post of Deputy Minister of Finance

    Another deputy minister will leave the Ministry of Finance - Andrei Kruglov will leave his post, two sources close to the Cabinet of Ministers told Izvestia. According to them, his resignation is required in order to accept a new deputy head of the department, who could be responsible for preparing the budget.

    Previously, this issue was supervised by the first deputy head of the ministry, Tatyana Nesterenko, Izvestia reported on her departure in January. In addition to her, another deputy minister, Anton Drozdov, who headed the FIU before the Ministry of Finance, is also leaving the department. This resignation has already taken place officially - on February 3, Prime Minister Mikhail Mishustin signed the corresponding document.

    Finance Minister Anton Siluanov now has 10 deputies (not counting Tatyana Nesterenko, who is still formally listed in the department) - this is the maximum number of deputies in the ministry that is allowed after the reform of public administration. It will not be possible to hire a new leader without dismissing one of the current ones.

    One of Izvestia's interlocutors clarified that, most likely, a person not from the ministry will come to this position. Another source said that several candidates are being considered, in particular, one of the high-ranking government officials.

    Kiko
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    Post  Kiko Tue Feb 09, 2021 10:55 pm

    How to teach Russians to work more efficiently
    9 February 2021

    Despite the pandemic, Russia is purposefully raising a difficult indicator for itself - labor productivity. And this is the main reserve for the growth of the Russian economy. How have various Russian factories, from dairy to defense, been able to increase their output - and why are productivity growth rates unable to reach zero-year levels?

    Russia in 2020 continued to increase labor productivity. It is vital to increase one of the main reserves for the growth of the Russian economy. Ireland was the most productive country in 2019, according to OECD data. There is $ 112.7 of added value per person per hour. The secret is simple - the best conditions have been created for investors from all over the world. There are even special visa programs for them.

    In second place with a productivity of 110.3 dollars per person per hour is Luxembourg, where there are practically no valuable natural resources, but one of the largest financial centers in the world and the best conditions for high-tech production have been created here. Even the United States is lagging behind the leaders, with American labor productivity estimated at $ 77 per person per hour.

    However, Russia is still far from even the US level. In 2019, our country created $ 31 in value added per person per hour.

    After the failure of the 90s, labor productivity in the 2000s grew at a good pace - an average of almost 6% per year. However, the 2008-2009 crisis interrupted this trend. Since 2010, the positive trend in labor productivity growth has been restored. However, the growth rates are no longer that high. So, in 2010–2017 this indicator grew by 1.4%, and in recent years already by 2% per year. The trend is clearly positive. And national projects also played their role in this.

    In 2019, the government approved the national project "Labor productivity and employment support", calculated until 2024. The costs are estimated at 52.1 billion rubles. If the growth rate of labor productivity by 2% per year continues, then in five years this figure will grow by 10%, which is quite decent.

    "Our companies have a great growth potential, the disclosure of which is directed complex of state measures in the framework of the national project" Productivity "- by creating a favorable legal environment to address the work with consultants on building production processes and training for managers", - says the portal natsionalnyeproekty.rf Director Center for Increasing Productivity of the All-Russian Academy of Foreign Trade of the Ministry of Economic Development of the Russian Federation Ekaterina Grishina.

    According to the Ministry of Economic Development and Trade, all key tasks of the Labor Productivity national project have been completed. In particular, in 2020, more than 2,000 enterprises were involved in it, more than 4,400 people were retrained, 331 companies received assistance in exporting, as a result of which 163 first export contracts for them were concluded for 7.2 billion rubles. More than 18 thousand people have been trained in lean manufacturing tools, and additional support has been provided to enterprises in creating production systems. Regional centers of competence have been established in 45 regions of Russia.

    “Participation in the project has certainly helped to increase productivity. This made it possible to take a detached view of our production processes, ”says Elena Tsvetkova, head of the marketing department at Respiratory Complex (Leningrad Region). The company has been a member of the Labor Productivity national project since January 2020. Objective: to increase labor productivity in the production of the company's most demanded product - respirators with the Alina-210 valve. And the company has further optimized the production of two more respirators.

    “Specialists of the FCC (operator of the national project), together with our working group, analyzed the entire process of work and identified bottlenecks. Together we worked out solutions to eliminate them, ”Tsvetkova says. As a result, labor productivity really increased. The production of respirators of the three brands almost doubled - from 2.4 to 4.6 million units per month. This reduced the production process time.

    “For example, one of the bottlenecks was the process of setting up equipment. When there were problems with the equipment, we had to wait a long time for the foreman to repair it ", - says Tsvetkova. The introduction of the Andon early warning system made it possible to reduce the response time of the chief mechanic's service by ten times (from ten to one minute).

    “We plan to broadcast this successful experience to other production sites,” says a representative of the Respiratory Complex. In a pandemic, the company purchases additional equipment, including to produce six million respirators per month.

    One of the participants in the national project to increase labor productivity is the oldest producer of wheat and rye flour in Saratov, the Saratov Combine of Bread Products. In just six months of participation in the national project, labor productivity for the selected product - a pack of flour weighing five kilograms - increased by 6%. The plant has implemented a 5C system at workplaces to optimize the workflow.

    Analyzing the entire production process from the receipt of grain to the shipment of flour from the warehouse, two main problems were identified. It turned out that the flour packing often stopped due to flour entering the dispenser, and a new shift of employees was prepared for an hour due to unnecessary bag movements and the like. And literally small changes to the process helped to dramatically increase productivity. To prevent flour from getting into the dispenser, a special part was installed - an auger. As a result, production increased by almost one and a half times - from 3.8 to 5.5 thousand tons per day (or from 1.9 to 2.75 tons per day per person), and the preparation of the shift was reduced to 15 minutes (instead of an hour) ...

    Also, the time for processing 240 tons of grain by mills and transferring flour to a client was reduced by more than half. Instead of two weeks, it now only takes six days.

    Thanks to participation in the national project, the Mikhailovskoye milk producer from the Belgorod region (part of the Tommoloko group) was able to increase the productivity of raw milk from 24 to 27 liters per cow per day. For this, the herds were positioned so that the milking equipment would not be idle. As a result, 152 cows are now milked per hour instead of 122.

    It was possible to reduce feed residues from 8% to 4% per day, which is very important because feed residues are net losses of the plant: the next day the animal feed is no longer used.

    The work of employees who had never done anything before was properly regulated. As a result, they began to wash the milking parlor faster (instead of one and a half hours - only 45 minutes) and pour 20 tons of milk into the milk tanker (instead of two hours - only 50 minutes).

    Another participant in the national project is the city-forming Sarapul Power Generation Plant (Udmurtia). Here they set a goal - to reduce the production cost of AIML electric motors. They are installed in installations where there is a risk of explosive situations. These are the chemical, oil refining and gas industries.

    Labor productivity per worker has almost quadrupled. Now each shift can produce not six such electric motors, but as many as 23.

    This was achieved by reducing the assembly time of the engines. And this led to a decrease in the time for the execution of contracts - now the customer is not waiting for two months, but one. And then at the plant they want to fulfill orders in 21 days.

    Of course, growing up in the 2000s after the lost 90s was much easier than it is now. “Labor productivity is a very complex category. It depends on many factors: on the accumulation of human capital (including health and education), physical capital, the frequency of shocks that lead to rapid changes in prices, exchange rates, rates and incentives. In the late 90s - early 2000s, the low base effect also worked in Russia - adaptation to a market economy and new foreign trade relations was nearing completion. After its exhaustion, productivity growth is supported by inertial processes - human and physical capital does not accumulate quickly, ”explains Dmitry Kulikov, Deputy Director of the ACRA Sovereign Ratings and Macroeconomic Analysis Group.

    According to most forecasts, Russia's population will not grow in the coming decades. “This means that the migration inflow will at best compensate for the negative natural population growth. Labor productivity is, in fact, the only potential source of economic growth in the foreseeable horizon, ”concludes Kulikov.

    “In the context of a shrinking population and low investments (old equipment, technologies), it is possible to develop the economy only through an increase in output per employee, that is, through an increase in labor productivity,” agrees Vladimir Tikhomirov, chief economist at BCS Global Markets.

    Therefore, it is necessary to increase the volume of investments by improving the investment climate and protecting investors, as well as by providing companies with more freedom in personnel policy, Tikhomirov said. He points out that the condition for receiving state aid for the company is often not to reduce the workforce. “The declining role of the state in the economy, demonopolization and increased competition will also contribute to productivity growth, as well as positive shifts in the field of demography,” the expert adds.

    “It is impossible to form the skills that are in demand and release competitive products on the old technological basis with outdated equipment, worn-out fixed assets. An urgent equipment upgrade is required, automation of production, the introduction of advanced technologies, the use of new types of raw materials ", - calls on the associate professor of the base department of the Chamber of Commerce and Industry of the Russian Federation" Development of human capital "of the PRUE. Plekhanov Farida Mirzabalaeva. At the same time, it is necessary to adapt education for high-tech and highly productive jobs. But to increase labor productivity by reducing the number of employees, which many companies strive for, is unacceptable, the expert believes.

    However, labor productivity cannot be considered the only unconditional benchmark either. “Productivity is measured in US dollars per hour of work. Obviously, the indicator depends on the dynamics of the national currency rate. If the ruble falls, then the nominal productivity also falls. The growth of 5.9% on average in the 2000s is due, among other things, to a multiple increase in oil prices in the period from 2000 to 2008, which strengthened the national currency, "notes the analyst at Freedom Finance, Evgeny Mironyuk. More important is the relationship between labor productivity in accordance with changes in purchasing power parity, the expert adds, but such statistics are not kept.

    “The implementation of the national project“ Labor productivity ”is an important link in the growth of the indicator, in particular, by stimulating exports and increasing the involvement of enterprises in the national project. Therefore, it is important to continue to stimulate the growth of non-resource exports, while reducing customs and fiscal barriers, ”concludes Mironyuk.

    Text: Olga Samofalova

    https://m.vz.ru/economy/2021/2/9/1084069.html



    Backman
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    Post  Backman Tue Feb 09, 2021 11:29 pm

    calripson wrote:No, Russia's birthrate is experiencing the effects of the disastrous 1990s under Yeltsin - that missing generation is now the women of child bearing age and there just aren't enough of them. Has nothing to do with Putin and his economics. It is the donut hole effect. Russia must institute an immigration policy allowing talented young immigrants from Western Europe, Canada, Australia, and the USA. They can be selected to make sure only suitable people get admitted. You would be surprised how much demand there would be given Russia's low tax rates and land. It is easier to boost a country's economy by allowing grown educated young adults to contribute immediately rather than wait 20 years for a new generation.

    Russia's baby bust is over. Its numbers are around the EU average. Demographics are a red herring anyway.

    Properly functioning economies have business and credit cycles. Just because Russia's GDP or employment is going nominally up or down, doesn't mean there is something wrong.

    The opposite means there is something wrong. Like in the US where the economy is living on the same monetary cocaine high it got in 2008. Instead of having a proper credit cycle so that the system can purge some bad debts and restructure, they keep throwing monetary cocaine at it. It works for awhile. But the social and political costs are huge and they are undermining the US dollar. Shit is bad in the US and the USD hasn't even started falling yet. It will
    AlfaT8
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    Russian Economy General News: #12 Empty Re: Russian Economy General News: #12

    Post  AlfaT8 Wed Feb 10, 2021 3:02 am

    calripson wrote:No, Russia's birthrate is experiencing the effects of the disastrous 1990s under Yeltsin - that missing generation is now the women of child bearing age and there just aren't enough of them.

    What?! Suspect

    Dude, it's not because there are not enough of them, it's because they aren't having enough kids.
    Russia's Fertility rate is around 1.5~1.7, in order to have a stable population, you need a rate of 2.1 minimal.
    This means that women in Russia still aren't having kids at the needed levels, because they are wasting their fertile years in Careers and other nonsense.
    Unless Russia brings down the Hammer and put Women back in the kitchen, they are eventually F'ed.

    Has nothing to do with Putin and his economics.

    Actually it has a lot to do with economics, particularly welfare, so long as women can replace the Man with the State, they will not make babies, until it's too late and that's if they realize it's getting too late.

    It is the donut hole effect. Russia must institute an immigration policy allowing talented young immigrants from Western Europe, Canada, Australia, and the USA. They can be selected to make sure only suitable people get admitted. You would be surprised how much demand there would be given Russia's low tax rates and land. It is easier to boost a country's economy by allowing grown educated young adults to contribute immediately rather than wait 20 years for a new generation.

    Uhm Neutral .... all of those countries are going through the same thing, they have no surplus of talent to give to anyone, in fact they are trying to import immigrants too, and i don't think i need tell you how well that's going. pwnd

    The only people with surplus are Patriarchal places like the Middle-east or poor places like Africa, where they are too poor to give Welfare to Women.

    The West and Russia giving equality to Women may seem Morally right, but Moral righteousness and actual Effective methods, are more often then not mutually exclusive from one another.
    And in this case, diametrically opposed to each other.

    elconquistador likes this post

    GarryB
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    Russian Economy General News: #12 Empty Re: Russian Economy General News: #12

    Post  GarryB Wed Feb 10, 2021 10:17 am

    Actually it has a lot to do with economics, particularly welfare, so long as women can replace the Man with the State, they will not make babies, until it's too late and that's if they realize it's getting too late.

    Actually I would say the opposite... we have something called the DPB or domestic purposes benefit... basically you get paid for every child you have under 15 years old to help make ends meet.

    I know of women with 5 or more kids who keep having more kids because once your kids are all over 15 you have to find work yourself and they just want to stay at home and be mothers.

    Usually there are several different fathers, but she wont identify them often because they don't know but mostly because if the father was known they would be paying child support instead of the government... and they probably can't afford what the government pays.

    The obvious problem is that you end up with citizens who expect to get everything handed to them by the government and don't know what a working family looks like.

    It is only a matter of time before they start saying population reduction is the solution... in terms of rewarding people for not having children...

    Big populations are more problems than solutions.... the key is to make sure your population is healthy and educated and a good contributor to society.

    Those who are not should be helped to solve their problems and make them as productive and useful as possible to the community and society.

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