Russian Economy General News: #4

TR1 wrote:

Kimppis wrote:

sepheronx wrote:

kvs wrote:To me this looks like the speculator attack on the ruble has fizzled away.   It's previous decline was way too tightly coupled to the
oil price compared to other oil dependent economies (that would actually be Canada even if it is claimed otherwise).    The numbskulls
realized that the ruble collapse was equivalent to import barriers and export subsidy: a recipe for Russian economic growth and
development.  So now we are going to see over-valuing of the ruble.   The ruble should be about 55 to the dollar.

I think Ruble is headed to its natural position. But the sweet spot is probably 55 rub/usd.

Which means shitty nominal GDP and financial power? I know that nominal GDP is just a number and low value has its positives, but it still doesn't seem... right. Russia is not a fucking Spain (no offence to Spain).

True, Spain has a more diverse economy than Russia.

TR1 wrote:

Kimppis wrote:

sepheronx wrote:

kvs wrote:To me this looks like the speculator attack on the ruble has fizzled away.   It's previous decline was way too tightly coupled to the
oil price compared to other oil dependent economies (that would actually be Canada even if it is claimed otherwise).    The numbskulls
realized that the ruble collapse was equivalent to import barriers and export subsidy: a recipe for Russian economic growth and
development.  So now we are going to see over-valuing of the ruble.   The ruble should be about 55 to the dollar.

I think Ruble is headed to its natural position. But the sweet spot is probably 55 rub/usd.

Which means shitty nominal GDP and financial power? I know that nominal GDP is just a number and low value has its positives, but it still doesn't seem... right. Russia is not a fucking Spain (no offence to Spain).

True, Spain has a more diverse economy than Russia.

Kimppis wrote:

TR1 wrote:

Kimppis wrote:

sepheronx wrote:

kvs wrote:To me this looks like the speculator attack on the ruble has fizzled away.   It's previous decline was way too tightly coupled to the
oil price compared to other oil dependent economies (that would actually be Canada even if it is claimed otherwise).    The numbskulls
realized that the ruble collapse was equivalent to import barriers and export subsidy: a recipe for Russian economic growth and
development.  So now we are going to see over-valuing of the ruble.   The ruble should be about 55 to the dollar.

I think Ruble is headed to its natural position. But the sweet spot is probably 55 rub/usd.

Which means shitty nominal GDP and financial power? I know that nominal GDP is just a number and low value has its positives, but it still doesn't seem... right. Russia is not a fucking Spain (no offence to Spain).

True, Spain has a more diverse economy than Russia.

Well, it's certainly true that Spain's economy is fully developed by global standards (although some people seem to think Spain is a "poor" country due to recent problems, in the end its GDP per capita is so close to that of France, UK and Germany, etc., that it doesn't make much of a difference), but its total "economic power" is not as big as Russia's. It just doesn't feel right and it doesn't add up.  

TR1 wrote:

Kimppis wrote:

TR1 wrote:

Kimppis wrote:

sepheronx wrote:

kvs wrote:To me this looks like the speculator attack on the ruble has fizzled away.   It's previous decline was way too tightly coupled to the
oil price compared to other oil dependent economies (that would actually be Canada even if it is claimed otherwise).    The numbskulls
realized that the ruble collapse was equivalent to import barriers and export subsidy: a recipe for Russian economic growth and
development.  So now we are going to see over-valuing of the ruble.   The ruble should be about 55 to the dollar.

I think Ruble is headed to its natural position. But the sweet spot is probably 55 rub/usd.

Which means shitty nominal GDP and financial power? I know that nominal GDP is just a number and low value has its positives, but it still doesn't seem... right. Russia is not a fucking Spain (no offence to Spain).

True, Spain has a more diverse economy than Russia.

Well, it's certainly true that Spain's economy is fully developed by global standards (although some people seem to think Spain is a "poor" country due to recent problems, in the end its GDP per capita is so close to that of France, UK and Germany, etc., that it doesn't make much of a difference), but its total "economic power" is not as big as Russia's. It just doesn't feel right and it doesn't add up.  

Who cares about total economic power?

Belgium is a tiny economy compared to Russia, yet their level of development is far higher.
China's economy dwarfs Russia's, and so what? I am sure that makes all those peasants and factory workers feel better about their wonderful lives....

higurashihougi wrote:

TR1 wrote:Do I really need to keep repeating myself?

It is a huge part of the gov BUDGET.
That is why with the price of oil dropping the budget had huge holes that needed to be filled. The revenue from natural resource export is what the gov used to fund many of its lavish programs.

Thank you, I am well aware Russia has industry.

It is a huge part of the budget but make small part of the GDP. That is what I am saying.

The price of oil is dropping in USD, but if we change to rub, the number in rub is the same. So the number of rub for funding Kremlin's lavish program does not decrease.

The ratio of rub:USD is changing but the value of rub is not changing in Russian domestic market.

Vann7 wrote:Now western media is trying to portray the strenghtening of the RUble as a
bad thing..  

if the RUble is weak is bad.. if the RUble is strong is bad too..
The west simply is trying to create distrust in Russian Business and its economy..
as Kudrin the rat does.. and painting the entire thing in a negative unrealistic way.


Putin’s Surprising New Ruble Problem Threatens Russian Coffers

http://www.bloomberg.com/news/articles/2015-04-09/putin-s-surprising-new-ruble-problem-threatens-russian-coffers

I don't see the war in Yemen ending any time soon.. and will not be surprised if the Pro IRAN Rebels capture all Yemen and take the fight to Saudi Arabia..  

What could happen if The Houthis goes take the fight to Saudis and shut down their oil fields? and no longer oil is traded in dollars  
Im sure it will be a big party for Russian Energy industry and a lot of profits.. If i were Russia will arm the houthis to overthrow the Saudi King.

Russia could even very easily launch undercovertly a cruise missile from a Submarine in Yemen coast and shut down saudi arabia fields.. and paralizing its entire energy industry.

kvs wrote:
Western media (aka propaganda chorus) coverage of Russia is one big pile of lies and projection.   There is no objectivity but
inane wishful thinking in this NATO spew.   Recall all the retarded articles since last summer predicting doom and gloom for
Russia's economy and now they act like they never wrote any of those articles.  Instead they proceed to fully change the
criteria and carry on with the doom and gloom projection.   At the heart of this projection is a pathological hate for Russia.
Russians are untermenschen and cannot possibly do anything right.  

kvs wrote:

The Russia hating twit is so blind with his hate he can't even process basic information that contradicts his precious narratives.
As you point out, and has been pointed out numerous times before in this thread, a 50% drop in oil prices and a 50% devaluation
of the currency cancel out in terms of oil revenues in the national currency.  

flamming_python wrote:

TR1 wrote:Do I really need to keep repeating myself?

It is a huge part of the gov BUDGET.
That is why with the price of oil dropping the budget had huge holes that needed to be filled. The revenue from natural resource export is what the gov used to fund many of its lavish programs.

Thank you, I am well aware Russia has industry.

Now now TR1, you may well be aware that Russia has industry - but you are being dishonest.

Putin's government (and Medvedev's) has done much for the diversification of the Russian economy.

- The huge expansion of the automotive industry, including the cash for clunkers program, all the government efforts to encourage foreign automakers to increase the levels of localized parts and the establishment of incentives for doing so.
- The wood-processing industry and the government efforts in that regard, including slapping duties on exported raw timber; as a result many Finnish and Chinese wood-processing companies have invested in production facilities in Russia
- The constant high-level efforts at a government level to sell arms abroad; the defense industry feeds how many companies in Russia? Similarly, the government's modernization of the Russian military and the stricter standards towards Russian defense companies; this has contributed to the development of this economical sector too. Lately, defense enterprises have started to be merged into larger corprations by the state; time will tell how that will turn out but there are grounds for optimism.
- Ditto with nuclear power plant construction, and to a lesser extent hydroelectric power-plants; both of them are pushed at a state-to-state level by the Russian government, and many successes in securing contracts have been noted in recent years. Domestic investment into new power plants of all types is also tied in with government programs; many NPPs are being built around the country; thermal, hydro-electric, even solar power plants too.
- Government-led investment into Russian infastructure. New railroads, new ports, renovations and expansion of airports, construction and reconstruction of highways, bridges and ring-roads around the country and many of its major cities. The new space-port at Vostochny. Railroad construction is also being pushed being pushed as an export at the state level by the Russian government; several contracts have been secured.
- Government efforts at encouraging tourism, reforming Rosturizm, publiscing the country at exhibitions, the massive investments into Sochi and the focus on investment into sport infastructure for international events, the new F1 track, the large amount of visa-free regimes signed with countries world-wide and further government interest in this issue. All of this has been done through government money and programs.
- Investment into high-tech, the widespread campaign at encouraging investment into nano-technology; the setting up of the Rosnano investment conglomerate, the Skolkovo institute and other government and regional technoparks and business incubators for tech start-ups.
- The state investment into the Northern Sea Route, renewal of ports along its route and supporting infastructure, construction of a fleet of new icebreakers to keep the route open, investment into new miltiary garrisons along the Arctic, state-support at the highest levels, directed at encouraging other countries to start making use of it.
- Government reform of the higher-education system, the unification of various existing and newly built instututes and facilities into a series of federal universities, one for each district of the country. Setting up of the Skolkovo Management school too. Focus on establishing partnerships with foreign institutes.
- Government investment into farmers and agriculture, many supporting programs for purchasing farm equipment and land. The recent counter-sanctions have eliminated much of the competition for Russian farmers. The government has also established direct contacts with many of the large multinationals involved in investing in Russia food & beverage production; Coca Cola and so on; giving them support and whatever they need.
- Attempts to improve business conditions, Russia has been steadily climbing up the rankings in recent years. Loads of initiatives and support programs in regards to small and medium-sized businesses. Various beaurocratic reforms.

It's all I can think of now but there's plenty more than that.

flamming_python wrote:

TR1 wrote:Do I really need to keep repeating myself?

It is a huge part of the gov BUDGET.
That is why with the price of oil dropping the budget had huge holes that needed to be filled. The revenue from natural resource export is what the gov used to fund many of its lavish programs.

Thank you, I am well aware Russia has industry.

Now now TR1, you may well be aware that Russia has industry - but you are being dishonest.

Putin's government (and Medvedev's) has done much for the diversification of the Russian economy.

- The huge expansion of the automotive industry, including the cash for clunkers program, all the government efforts to encourage foreign automakers to increase the levels of localized parts and the establishment of incentives for doing so.
- The wood-processing industry and the government efforts in that regard, including slapping duties on exported raw timber; as a result many Finnish and Chinese wood-processing companies have invested in production facilities in Russia
- The constant high-level efforts at a government level to sell arms abroad; the defense industry feeds how many companies in Russia? Similarly, the government's modernization of the Russian military and the stricter standards towards Russian defense companies; this has contributed to the development of this economical sector too. Lately, defense enterprises have started to be merged into larger corprations by the state; time will tell how that will turn out but there are grounds for optimism.
- Ditto with nuclear power plant construction, and to a lesser extent hydroelectric power-plants; both of them are pushed at a state-to-state level by the Russian government, and many successes in securing contracts have been noted in recent years. Domestic investment into new power plants of all types is also tied in with government programs; many NPPs are being built around the country; thermal, hydro-electric, even solar power plants too.
- Government-led investment into Russian infastructure. New railroads, new ports, renovations and expansion of airports, construction and reconstruction of highways, bridges and ring-roads around the country and many of its major cities. The new space-port at Vostochny. Railroad construction is also being pushed being pushed as an export at the state level by the Russian government; several contracts have been secured.
- Government efforts at encouraging tourism, reforming Rosturizm, publiscing the country at exhibitions, the massive investments into Sochi and the focus on investment into sport infastructure for international events, the new F1 track, the large amount of visa-free regimes signed with countries world-wide and further government interest in this issue. All of this has been done through government money and programs.
- Investment into high-tech, the widespread campaign at encouraging investment into nano-technology; the setting up of the Rosnano investment conglomerate, the Skolkovo institute and other government and regional technoparks and business incubators for tech start-ups.
- The state investment into the Northern Sea Route, renewal of ports along its route and supporting infastructure, construction of a fleet of new icebreakers to keep the route open, investment into new miltiary garrisons along the Arctic, state-support at the highest levels, directed at encouraging other countries to start making use of it.
- Government reform of the higher-education system, the unification of various existing and newly built instututes and facilities into a series of federal universities, one for each district of the country. Setting up of the Skolkovo Management school too. Focus on establishing partnerships with foreign institutes.
- Government investment into farmers and agriculture, many supporting programs for purchasing farm equipment and land. The recent counter-sanctions have eliminated much of the competition for Russian farmers. The government has also established direct contacts with many of the large multinationals involved in investing in Russia food & beverage production; Coca Cola and so on; giving them support and whatever they need.
- Attempts to improve business conditions, Russia has been steadily climbing up the rankings in recent years. Loads of initiatives and support programs in regards to small and medium-sized businesses. Various beaurocratic reforms.

It's all I can think of now but there's plenty more than that.

max steel wrote:lol your spat filled my account with 91 notifications  .





BRICS $100bn reserve currency pool to soothe global shocks  

http://rt.com/business/248249-brics-bank-currency-pool/


Sorry, this is capitulation of BRICS, total media populism. There are no funds. And what there is is tied to IMF policies. This is a total failure of BRICS . It's a pity they have opted to prop up the currency of the US Empire.