Russia Defence Forum

Would you like to react to this message? Create an account in a few clicks or log in to continue.

Military Forum for Russian and Global Defence Issues


+35
Daniel_Admassu
higurashihougi
Tsavo Lion
SeigSoloyvov
nero
thedrunkengeneral
PapaDragon
lyle6
Azi
lancelot
Nomad5891
owais.usmani
Hole
troperker
mnztr
magnumcromagnon
slasher
Scorpius
franco
par far
LMFS
Big_Gazza
kvs
miketheterrible
AlfaT8
elconquistador
George1
Backman
GarryB
flamming_python
calripson
PhSt
Vann7
Arrow
Kiko
39 posters

    Russian Economy General News: #12

    AlfaT8
    AlfaT8

    Posts : 2069
    Points : 2062
    Join date : 2013-02-02

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  AlfaT8 Thu Feb 25, 2021 4:26 am

    miketheterrible wrote:You are way out of your hole here buddy.

    I'll start with calling out your bullshit - how much USD does average Russian own?

    We already know how much the banks have in deposits (rubles).

    Also, your understanding how speculators work prove you need education on the subject of currency valuation.  I suggest you go do some learning on the subject.  Google it.

    I'll give you a hint - people dumping currency to buy assets that have little intrinsic value like gold and silver, or USD or Euros in Russian market, will allow speculators to attack the currency as they too would dump their money, causing inflation.

    Taxing it, like everyone else does, give Russian state more money back per gold/silver/USD than initially, as well also prevent people dumping it's currency forcing inflation due to speculators.  This has happened already in short period of time.

    You live in fantasy thinking people will exchange silver and gold for food and bullets if fiat drops.  That won't happen because the government will step in one way or the other and that has happened during Weimer Republic days too or Iran with its inflation where they introduced a new currency to supplement Rial.

    Dude, whatever, keep taxing and going with your Fiat dependency.
    When SHTF the Russian people are gonna be in trouble again.

    Keep going after those silver Kopeks, as they say.
    Scorpius
    Scorpius

    Posts : 303
    Points : 305
    Join date : 2020-11-06
    Age : 33

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  Scorpius Thu Feb 25, 2021 6:03 pm

    AlfaT8 wrote:

    Dude, whatever, keep taxing and going with your Fiat dependency.
    When SHTF the Russian people are gonna be in trouble again.

    Keep going after those silver Kopeks, as they say.
    No one I know uses the dollar or the euro as a tool for storing savings. The main use of both the dollar and the euro in Russia among individuals is to exchange rubles for these currencies before going on vacation abroad. As a tool for investment, it is much more often used to buy a home for rent or subsequent resale.

    Big_Gazza and miketheterrible like this post

    miketheterrible
    miketheterrible

    Posts : 6027
    Points : 6005
    Join date : 2016-11-06

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  miketheterrible Thu Feb 25, 2021 7:07 pm

    AlfaT8 wrote:
    miketheterrible wrote:You are way out of your hole here buddy.

    I'll start with calling out your bullshit - how much USD does average Russian own?

    We already know how much the banks have in deposits (rubles).

    Also, your understanding how speculators work prove you need education on the subject of currency valuation.  I suggest you go do some learning on the subject.  Google it.

    I'll give you a hint - people dumping currency to buy assets that have little intrinsic value like gold and silver, or USD or Euros in Russian market, will allow speculators to attack the currency as they too would dump their money, causing inflation.

    Taxing it, like everyone else does, give Russian state more money back per gold/silver/USD than initially, as well also prevent people dumping it's currency forcing inflation due to speculators.  This has happened already in short period of time.

    You live in fantasy thinking people will exchange silver and gold for food and bullets if fiat drops.  That won't happen because the government will step in one way or the other and that has happened during Weimer Republic days too or Iran with its inflation where they introduced a new currency to supplement Rial.

    Dude, whatever, keep taxing and going with your Fiat dependency.
    When SHTF the Russian people are gonna be in trouble again.

    Keep going after those silver Kopeks, as they say.

    And good luck with them when it comes time to use them.

    Regardless what happens, the state will always rely on their currency. Buying gold and silver is fine and the Russian government isn't preventing people from buying it. They just limit and also tax people who buy it.

    Like any sane government does.
    Scorpius
    Scorpius

    Posts : 303
    Points : 305
    Join date : 2020-11-06
    Age : 33

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  Scorpius Sun Feb 28, 2021 1:01 am

    franco wrote:Russia’s public debt up to 17.8% of GDP in 2020

    The public debt of the Russian Federation in 2020 increased by $73 bln, according to the Accounts Chamber © Artyom Geodakyan/TASS

    MOSCOW, February 24. /TASS/. Russia's public debt increased by 39.9% in 2020 to 18.99 trillion rubles ($257 bln), which is 17.8% of GDP, according to the documents published by the the Accounts Chamber.

    "The public debt of the Russian Federation in 2020 increased by 5 trillion 418.2 billion rubles ($73 bln), or 39.9%, and amounted to 18 trillion 985.6 billion rubles, or 17.8% of GDP," the Accounts Chamber said.

    According to the Accounts Chamber, in 2019 the public debt grew by 7.8% or 976 billion rubles ($13 bln), and its volume reached 13 trillion 567.4 billion rubles ($183 bln) or 12.3% of GDP. At the same time, domestic debt increased by 4 trillion 618.5 billion rubles ($62.4 bln), or 45.4%, amounting to 14 trillion 790.5 billion rubles ($200 bln). Foreign debt in foreign currency increased by $1.9 billion, or 3.5%, to $56.8 billion.

    (Total state debt of Eurozone to be above 100% of GDP in 2020)
    At the same time, Russia's international reserves increased from $556 billion to $596 billion in 2020 (for some reason, the government does not increase its size above the level of $600 billion, so now this number ranges from $580 billion to $ 600 billion).
    Also, the National Welfare Fund of Russia on the first of February 2020 was 7.84 trillion rubles: https://www.vesti.ru/finance/article/1268492
    As of February 1, 2021, it amounts to 13.649 trillion rubles: https://minfin.gov.ru/ru/press-center/?id_4=37368-o_rezultatakh_razmeshcheniya_sredstv_fonda_natsionalnogo_blagosostoyaniya
    The growth for the year amounted to 5.8 trillion rubles - or $78 billion at the current exchange rate.

    The volume of deposits of individuals in Russian banks at the beginning of 2020 was 30.55 trillion rubles: https://www.vedomosti.ru/personal_finance/articles/2020/01/29/821756-vkladi-naseleniya-30

    The volume of deposits of individuals in Russian banks at the beginning of February 2021 is 32.171 trillion rubles, after a decrease in January 2021 by 2.7%: https://www.interfax.ru/business/751641


    Just for comparison: The nominal volume of Russia's GDP in 2020 was 106.606 trillion rubles: https://rosstat.gov.ru/folder/313/document/113015

    dino00, Big_Gazza, PapaDragon, miketheterrible, LMFS and Hole like this post

    George1
    George1

    Posts : 16353
    Points : 16854
    Join date : 2011-12-22
    Location : Greece

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  George1 Tue Mar 02, 2021 2:03 pm

    Russia tests transactions with Mir payment cards in UAE

    https://tass.com/economy/1261729

    Big_Gazza and LMFS like this post

    avatar
    slasher

    Posts : 189
    Points : 189
    Join date : 2015-09-28

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  slasher Wed Mar 03, 2021 12:08 am

    https://tass.com/pressreview/1261255

    As for Russia, its debt rose by nearly 40% last year, reaching 18.99 trillion rubles ($255.5 bln). However, Russia's debt-to-GDP ratio is still one of the lowest in the world (17.8%), which points to the soundness of the country’s financial system.

    "The structure of Russia’s public debt is not quite typical. It’s made up mostly of corporate debt, while the debt of the government and the population account for less than a quarter of the total debt. This picture is similar to Scandinavia, Switzerland and Hong Kong. In any case, Russia’s total debt burden amounts to less than one-third of its GDP. The country’s debt load is lower than in Germany, which has one of the lowest debt levels among developed countries," Yemelyanov explained.

    @kvs. So Russia’s total debt burden is ≈18% of GDP? Just wondering why it's quoted as less than as high a benchmark as one-third of GDP.
    kvs
    kvs

    Posts : 10322
    Points : 10469
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  kvs Wed Mar 03, 2021 1:20 am

    slasher wrote:https://tass.com/pressreview/1261255

    As for Russia, its debt rose by nearly 40% last year, reaching 18.99 trillion rubles ($255.5 bln). However, Russia's debt-to-GDP ratio is still one of the lowest in the world (17.8%), which points to the soundness of the country’s financial system.

    "The structure of Russia’s public debt is not quite typical. It’s made up mostly of corporate debt, while the debt of the government and the population account for less than a quarter of the total debt. This picture is similar to Scandinavia, Switzerland and Hong Kong. In any case, Russia’s total debt burden amounts to less than one-third of its GDP. The country’s debt load is lower than in Germany, which has one of the lowest debt levels among developed countries," Yemelyanov explained.

    @kvs. So Russia’s total debt burden is ≈18% of GDP? Just wondering why it's quoted as less than as high a benchmark as one-third of GDP.

    The Russian and foreign media love to quote the total private and public debt inside and outside Russia and compare it to government debt in the west.
    In other words, twisting of the facts.

    255.5/1.4 = 182.4 and the 2020 GDP in US dollars was 1.7 trillion. So it went from 10.7% (relative to 2020 GDP) to 15.0%. I don't know where
    these clowns are getting the 17.8% from. I would not call 15% GDP government debt as even newsworthy. Russia's economy is being affected
    by Covid-19 but is not imploding. By contrast, the USA printed 40% of its all time dollars in 2020 alone. It will keep printing a few trillion in the next
    couple of years. Some 40% increase of the government debt in Russia looks like nothing by comparison (even if PPP adjusted).

    dino00, magnumcromagnon, Big_Gazza, slasher and Hole like this post

    magnumcromagnon
    magnumcromagnon

    Posts : 7326
    Points : 7475
    Join date : 2013-12-05
    Location : Pindos ave., Pindosville, Pindosylvania, Pindostan

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  magnumcromagnon Wed Mar 03, 2021 7:37 pm

    kvs
    kvs

    Posts : 10322
    Points : 10469
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  kvs Wed Mar 03, 2021 9:00 pm

    What drives me nuts is the tone of coverage of all things Russia by even the "Russian" media. Here is some context to the above
    "massive" "national" debt increase in Russia:

    https://www.zerohedge.com/economics/key-takeaways-uks-expansionary-budget

    Russian Economy General News: #12 - Page 3 Public%20sector%20debt%20UK

    A jump from 75% to 110% or 35% of GDP in actual national debt. The Russian increase by 5% in a country
    supposedly cut off from foreign finances and with a bigger role of government in the economy really is a joke.

    magnumcromagnon, Big_Gazza, slasher, miketheterrible, LMFS and Backman like this post

    avatar
    mnztr

    Posts : 1195
    Points : 1229
    Join date : 2018-01-21

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  mnztr Tue Mar 09, 2021 3:54 am

    miketheterrible wrote:
    AlfaT8 wrote:
    miketheterrible wrote:You are way out of your hole here buddy.

    I'll start with calling out your bullshit - how much USD does average Russian own?

    We already know how much the banks have in deposits (rubles).

    Also, your understanding how speculators work prove you need education on the subject of currency valuation.  I suggest you go do some learning on the subject.  Google it.

    I'll give you a hint - people dumping currency to buy assets that have little intrinsic value like gold and silver, or USD or Euros in Russian market, will allow speculators to attack the currency as they too would dump their money, causing inflation.

    Taxing it, like everyone else does, give Russian state more money back per gold/silver/USD than initially, as well also prevent people dumping it's currency forcing inflation due to speculators.  This has happened already in short period of time.

    You live in fantasy thinking people will exchange silver and gold for food and bullets if fiat drops.  That won't happen because the government will step in one way or the other and that has happened during Weimer Republic days too or Iran with its inflation where they introduced a new currency to supplement Rial.

    Dude, whatever, keep taxing and going with your Fiat dependency.
    When SHTF the Russian people are gonna be in trouble again.

    Keep going after those silver Kopeks, as they say.

    And good luck with them when it comes time to use them.

    Regardless what happens, the state will always rely on their currency.  Buying gold and silver is fine and the Russian government isn't preventing people from buying it.  They just limit and also tax people who buy it.

    Like any sane government does.

    There is no tax or limit on precious metals for investment in Canada (and many western nations) of course jewelry is a different deal.
    franco
    franco

    Posts : 4307
    Points : 4339
    Join date : 2010-08-18

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  franco Tue Mar 09, 2021 8:50 pm

    OECD worsens Russian 2021 GDP growth outlook, improves 2022

    PARIS. March 9 (Interfax) - The Organisation for Economic Co-operation and Development has worsened its outlook for GDP growth in Russia in 2021 but improved its 2022 forecast.

    The OECD said in a statement that it now expected the Russian economy to grow 2.7% in 2021, compared with the 2.8% it was predicting in December.

    Growth of 2.6% instead of 2.2% is expected in 2022.

    https://interfax.com/newsroom/top-stories/71281/
    kvs
    kvs

    Posts : 10322
    Points : 10469
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  kvs Tue Mar 09, 2021 9:58 pm

    franco wrote:OECD worsens Russian 2021 GDP growth outlook, improves 2022

    PARIS. March 9 (Interfax) - The Organisation for Economic Co-operation and Development has worsened its outlook for GDP growth in Russia in 2021 but improved its 2022 forecast.

    The OECD said in a statement that it now expected the Russian economy to grow 2.7% in 2021, compared with the 2.8% it was predicting in December.

    Growth of 2.6% instead of 2.2% is expected in 2022.

    https://interfax.com/newsroom/top-stories/71281/

    These numbers are meaningless. Even the ones GKS releases are some sort of nonsense. When retirement of foreign debt is counted
    as negative GDP growth, you know that this accounting is voodoo. So western GDP growth can be rendered into existence through
    debt creation, but Russia's growth is "anemic" because a real growth rate over 6% is discounted by debt retirement. Another howler
    is how this debt retirement is counted as "capital flight". Yeah, because debt never comes with interest. Aha.

    Instead of looking at the GDP forecasts I would look at actual growth in the manufacturing sector and personal incomes. Indicators
    that actually mean something.

    https://www.ceicdata.com/en/indicator/russia/industrial-production-index-growth

    The Covid-19 slump has dissipated with no evidence of any return even though Russia had more cases this winter than the previous peak.

    https://www.ceicdata.com/en/indicator/russia/external-debt

    In spite of Covid-19 there is no pressure to accumulate foreign debt in Russia. I expect there to be downward pressure on the foreign
    debt load in 2021 combined with a manufacturing sector growth.



    Big_Gazza, slasher and LMFS like this post

    Kiko
    Kiko

    Posts : 712
    Points : 728
    Join date : 2020-11-11
    Age : 72
    Location : Brasilia

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  Kiko Wed Mar 10, 2021 12:52 am

    In 2020, Russian exports of polymers in primary forms increased by 74% and amounted to 2.61 million tons.This was a new all-time high, the previous peak was just over 1.5 million tons in 2018 and 2019. This growth was made possible thanks to the gradual reaching full capacity of the Zapsibneftekhim complex in Tobolsk, Tyumen Region, the largest polymer production in the post-Soviet space. In value terms, exports amounted to $ 2.3 billion (+ 37%).

    https://sdelanounas.ru/blogs/139935/

    magnumcromagnon and LMFS like this post

    avatar
    mnztr

    Posts : 1195
    Points : 1229
    Join date : 2018-01-21

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  mnztr Wed Mar 10, 2021 4:19 am

    Russia should really start to reduce its crude exports and export more value add products. Selling crude is only for non-sophisticated economies like Saudis. Canada has the same issue. Just sell the cheap oil to the highest bidder with ZERO effort in extracting more value.
    avatar
    troperker

    Posts : 2
    Points : 2
    Join date : 2014-10-10

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  troperker Wed Mar 10, 2021 9:02 am

    Russia should develop more import substitution still depends on many electronic inputs and western machinery included in the agricultural sector import seeds from the west
    Kiko
    Kiko

    Posts : 712
    Points : 728
    Join date : 2020-11-11
    Age : 72
    Location : Brasilia

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  Kiko Wed Mar 10, 2021 2:55 pm

    Russia has come up with a new way to deal with rising prices
    10 March 2021

    The Russian government is introducing a new method of price control. Now, each department must constantly monitor and quickly detect a sharp rise in prices for certain goods. How will this price control system work, how does it differ from the existing one, and most importantly - will it help to keep the price rise? Experts fear that excesses here are fraught with deficits.

    Russia introduces constant monitoring of prices for consumer goods and services. Moreover, the responsibility for tracking specific goods is assigned to certain departments.

    Thus, the Ministry of Agriculture will track the prices of food and tobacco products. Rosalkogolregulirovanie has been appointed responsible for alcohol prices. Non-food products are assigned to the Ministry of Industry and Trade: clothing, furniture, household appliances, etc. The Ministry of Health is assigned to medical products and medicines. The Ministry of Energy will be responsible for the prices for gasoline (grades AI-92 and AI-95) and diesel fuel (winter and summer).

    The ministry of digital will monitor the tariffs for communication services, the ministry of construction - for the tariffs for housing and communal services. The Ministry of Transport has been appointed responsible for passenger transportation (except for taxis). Rostourism will be responsible for hotel prices, etc.

    If prices start to rise sharply, departments will have to offer the government economic measures to combat this.

    This is not to say that no one in Russia monitored prices. “Price monitoring has always existed in the country. Rosstat has traditionally dealt with it. In recent years, the FAS has actively joined the "topic". Both services have in common a ramified structure of territorial bodies. The former give the government the dynamics of prices, and not only retail ones, with a lag of a month or more and have proven technologies. The latter are rather engaged in selective observation in the course of proceedings and the search for "victims" among market participants. They are not able to track the array of prices online, and they were created for other purposes, ”says Professor of the Department of Trade Policy of the PRUE. Plekhanov Vyacheslav Cheglov.

    However, in what mode the prices will now be monitored is not specified. “We used to monitor prices from the reporting period to the reporting period. And the current situation requires more rapid tracking of price changes. I think that now they will be monitored on a daily basis in order to have time to react promptly, ”says Alexey Korenev, an analyst at the Finam Group of Companies.

    Why are the authorities so worried about prices right now, because formally inflation in the country is far from double-digit values? The problem is that unexpected surges in food began last year, and the situation is not improving.

    “When at first only vegetable oil and sugar rose in price, we decided that we had a poor sugar harvest. We usually produce 6.4 million tons of sugar, and last year, due to a poor harvest and a decrease in areas, we produced only 5 million tons of sugar. Although there were carryover stocks of 1.3 million tons, that is, we covered our needs. But when the prices of other foodstuffs began to rise, the government caught on. It became clear that this is not a one-time phenomenon, but already a system, ”says Korenev.

    For example, grain, flour and bakery products have become more expensive. Although a unique grain harvest was collected - the second record harvest in the entire history of Russia (the first was in 2017). By the end of winter, vegetables began to rise in price, because they ran out of their vegetables of the previous season and had to carry imported ones, the expert notes.

    Food inflation in Russia in the first two months of the year has already shown significant growth.

    “If in January the rise in prices amounted to 1.02%, then in February it was already 1.22%. In annual terms, these will be exactly double-digit indicators. And as a result - social tension".
    - notes the head of the analytical department of AMarkets Artem Deev.

    How effective the new mechanism for combating price increases will be depends largely not so much on monitoring (this is just not difficult to do), but on what measures will be taken when price surges are promptly detected. But this is just not clear to the end.
    Apparently, the departments will report information to the Ministry of Economic Development, the ministry - to the government, and the same FAS, which has legal instruments, will act as the "investigator" and "punisher", explains Cheglov. Then efficiency, in his opinion, will be small due to the loss of a heap of time, which is not. At first, time will be spent on preparing and perfecting the observing mechanism. And then time will flow away into processing information, discussing it and making decisions. “As a result, price monitoring will allow making decisions after the fact, but proactive actions are needed,” Cheglov said.

    On the other hand, he adds, by this very order the authorities sent a message to the business: “We see everything. Do not raise prices sharply, that is, above inflation. The government is ready to act".

    There is, of course, no one-size-fits-all recipe for dealing with rising prices. But experts believe that these will be administrative measures: from manual freezing of prices to the introduction of export duties, quotas, etc.

    “As I understand it, the government will choose its measures of influence on a case-by-case basis.

    I would like these solutions to be more marketable and not destroy the business. Because the mechanical freezing of prices will lead to a shortage of goods.

    When restrictions on sugar prices were introduced, in some regions, albeit for a short time, there was still a shortage of sugar. Secondly, it can ruin the business. For example, when duties were increased on grain of the fourth category, it became equal in price to grain of the third category, and it became unprofitable to sell it. A significant part of the business is already operating on the brink of profitability. If the price turns out to be lower than the cost of production, then it will be more profitable to close production than to produce at a loss. And these are jobs, ”says Aleksey Korenev.

    This can be avoided by taking stimulating measures for business at the same time as freezing prices, the expert said. We are talking about reimbursing at least part of the increased costs of manufacturers in the form of preferences, subsidies, preferential loans, etc.

    Korenev believes that the jumps in food prices are nevertheless caused not by the desire of business to grab an extra piece of the pie, but by objective inflation of costs. “Costs are growing along the entire chain from the field to the counter, both for farmers, and for the food industry, and for logistics, and for retail. The costs increased for all, mainly due to the depreciation of the ruble last year by 20%. And the equipment is mostly imported. In the food industry - 70% of imported equipment, in the meat industry - almost 100%, and in the oil and gas production - 100% of imported equipment. Medicines are produced in Russia, but imported substances are used for them. Therefore, when freezing prices, it is necessary to help reduce costs for producers, ”Korenev said.

    From abroad, farmers bring not only equipment, but also components without which agriculture is impossible. “In the agro-industrial complex, we use imported seeds (40% of the total seed fund), in livestock breeding we use breeding stock from abroad, in poultry farming - hatching eggs. Imported preservatives and packaging, veterinary drugs, premixes (feed additives), equipment and spare parts, pesticides and growth stimulants, etc. ", - points out Artem Deev.

    The rise in prices for wheat, which is used as feed for animals and poultry, leads to an increase in the costs of meat producers. And the rise in the cost of mineral fertilizers due to the increase in the mineral extraction tax affects the costs of growing vegetables. The devaluation of the ruble as a reason for the growth in costs of Russian producers is added to the global rise in prices for food and goods.

    Text: Olga Samofalova

    https://m.vz.ru/economy/2021/3/10/1088608.html



    LMFS likes this post

    avatar
    mnztr

    Posts : 1195
    Points : 1229
    Join date : 2018-01-21

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  mnztr Wed Mar 10, 2021 5:27 pm

    the most efficient form of economic intervention is direct subsidies. If they are gonna try to reduce the prices of sugar the govt should introduce a subsidy for each ton supplied over the previous year, this will increase supplies. and lower prices. There is a lot of food inflation in the world. I feel so fortunate that food is a tiny amount of my personal budget. I cannot imagine how hard it is to struggle to feed your kids.
    kvs
    kvs

    Posts : 10322
    Points : 10469
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  kvs Wed Mar 10, 2021 5:38 pm

    Russia needs to keep the middle-men on a leash. They are parasites that use trivial logistics "camping" to leech money from both
    the consumer and the producer of both goods and services. Controlling these parasites should involve making sure that they
    don't con the producers into thinking that resellers are vital.

    par far likes this post

    avatar
    troperker

    Posts : 2
    Points : 2
    Join date : 2014-10-10

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  troperker Wed Mar 10, 2021 5:41 pm

    Korenev believes that the jumps in food prices are nevertheless caused not by the desire of business to grab an extra piece of the pie, but by objective inflation of costs. “Costs are growing along the entire chain from the field to the counter, both for farmers, and for the food industry, and for logistics, and for retail. The costs increased for all, mainly due to the depreciation of the ruble last year by 20%. And the equipment is mostly imported. In the food industry - 70% of imported equipment, in the meat industry - almost 100%, and in the oil and gas production - 100% of imported equipment. Medicines are produced in Russia, but imported substances are used for them. Therefore, when freezing prices, it is necessary to help reduce costs for producers, ”Korenev said.

    From abroad, farmers bring not only equipment, but also components without which agriculture is impossible. “In the agro-industrial complex, we use imported seeds (40% of the total seed fund), in livestock breeding we use breeding stock from abroad, in poultry farming - hatching eggs. Imported preservatives and packaging, veterinary drugs, premixes (feed additives), equipment and spare parts, pesticides and growth stimulants, etc. ", - points out Artem Deev.


    that would be the most important of your information

    Russia still depends for its industry including military on many western components and machinery

    Russia should develop a real import substitution plan in relation to main inputs and western machinery

    If it does not carry out such substitution of essential imports, Russia will continue to stagnate and sanctions will continue to affect them.
    kvs
    kvs

    Posts : 10322
    Points : 10469
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  kvs Wed Mar 10, 2021 5:48 pm

    These price rises have precisely zero to do with foreign import costs. If that "theory" was valid, these price jumps would have
    been through the stratosphere in late 2014 and early 2015 thanks to the ruble forex falls. There have been no ruble forex
    changes that can explain this BS. The consumer (not just the man on the street but supermarket chains, etc.) sees prices
    not set by any farmer. They see prices set by speculators and resellers. The notion that Russian farmers are driving price
    jumps is ludicrous. That is not the case anywhere on the planet for centuries. The loaf of bread you buy is not baked from
    wheat flour costing a few cents per kilogram.

    Nope, farm machinery does not drive price spikes. Farm machinery is amortized over years and does not affect daily farm
    commodity prices and the behaviour of both resellers and futures traders.

    miketheterrible and LMFS like this post

    Backman
    Backman

    Posts : 852
    Points : 862
    Join date : 2020-11-11

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  Backman Wed Mar 10, 2021 8:20 pm

    About the public debt. The new prime minister chose to take out some debt rather than draw on the Natl funds. It was a strategic choice. If you can sell debt with a low interest rate then it makes sense just to borrow. The new PM didn't get to the top because he's stupid. So if he thinks it's better to take some debt than draw down funds , it's probably right.

    But on paper  , it looks like Russia increased it's debt 39% OMFG. There was an article about how someone in the finance ministry disagreed with this idea but the PM had the last word. I'll see if I can find it

    kvs and miketheterrible like this post

    GarryB
    GarryB

    Posts : 29920
    Points : 30446
    Join date : 2010-03-30
    Location : New Zealand

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  GarryB Thu Mar 11, 2021 6:43 am

    But that is the point..... when the debt is low than any borrowing is going to be a big increase in terms of percentage.

    In comparison the US could borrow 10 trillion dollars and it would be about a 40 percent increase in debt too... because their debt is so big.

    Russia still depends for its industry including military on many western components and machinery

    Not really. Russian production of machinery has massively increased and exports of Russian machinery has increased too... western components are being eliminated from military and civilian goods because of the risk of sanctions so that is becoming less and less of a problem going forward.

    miketheterrible likes this post

    Kiko
    Kiko

    Posts : 712
    Points : 728
    Join date : 2020-11-11
    Age : 72
    Location : Brasilia

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  Kiko Thu Mar 11, 2021 1:25 pm

    Volodin announced the consistent withdrawal of Russia from dollar dependence
    07:02 11.03.2021

    MOSCOW, 11 Mar - RIA Novosti. Russia is gradually overcoming its dependence on the dollar, State Duma Speaker Vyacheslav Volodin told reporters.

    "For example, within the framework of the EAEU, settlements in national currencies have grown to 74%. We are systematically increasing trade in national currencies with China and Turkey," he said.

    The speaker of the lower house also recalled that at the end of February, Russia changed the currency structure of the National Wealth Fund, including the Japanese yen and the Chinese yuan. At the same time, Volodin stressed, the share of US dollars and euros decreased from 45% to 35%, while the share of the pound sterling remained at the level of ten percent.

    Earlier, the chairman of the Federation Council, Valentina Matvienko, said in an interview with RIA Novosti that the US dollar will remain in circulation in Russia, but the economy's dependence on it must be reduced.

    The Federation Council speaker also recalled that Russian gold and foreign exchange reserves are already much less dependent on the dollar, but there are other tangible results: over the past ten years, Moscow's investments in government obligations of the United States have decreased 30 times.

    Deputy Foreign Minister Sergei Ryabkov in an interview with Bloomberg noted that Russia needs to reduce the role of the dollar in any operations, eliminating "dependence on this poisonous source of constant hostile actions."

    https://ria.ru/20210311/dollar-1600702832.html

    GarryB, par far and LMFS like this post

    miketheterrible
    miketheterrible

    Posts : 6027
    Points : 6005
    Join date : 2016-11-06

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  miketheterrible Thu Mar 11, 2021 2:04 pm

    kvs wrote:Russia needs to keep the middle-men on a leash.   They are parasites that use trivial logistics "camping" to leech money from both
    the consumer and the producer of both goods and services.    Controlling these parasites should involve making sure that they
    don't con the producers into thinking that resellers are vital.  

    The farm protestors in India are tied to exact same middle men. Nothing to do with farmers. Most farmers ended up taking advantage of the system and earn a bit more while the average person pays less for food.

    kvs likes this post

    kvs
    kvs

    Posts : 10322
    Points : 10469
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  kvs Thu Mar 11, 2021 6:20 pm

    miketheterrible wrote:
    kvs wrote:Russia needs to keep the middle-men on a leash.   They are parasites that use trivial logistics "camping" to leech money from both
    the consumer and the producer of both goods and services.    Controlling these parasites should involve making sure that they
    don't con the producers into thinking that resellers are vital.  

    The farm protestors in India are tied to exact same middle men. Nothing to do with farmers.  Most farmers ended up taking advantage of the system and earn a bit more while the average person pays less for food.

    I know you meant the middlemen took advantage, not the farmers. This pattern has been there for a very long time. A lot of discontent and
    ethnic strife around the world are tied to it. Resellers need to be controlled. They add very little value but can control enormous amounts of
    money since they essentially hijack the price negotiation between consumers and producers. Resellers are one of the worst features of capitalism.
    If Russia wants long term stability, it needs to change the culture and control this feature.

    Resellers always amplify any prices when there is economic instability. They drive inflation.

    slasher likes this post


    Sponsored content

    Russian Economy General News: #12 - Page 3 Empty Re: Russian Economy General News: #12

    Post  Sponsored content


      Current date/time is Mon Aug 02, 2021 1:02 am