For me the solution a way out and to get that 6%, is an industrial revolution in Russia. and stop overspending on nuclear missiles and building so many warships ,that yes they are cool and nice.. but Russia don't need them to defend their nation. For example decommisioning half of their soviet warships will save a LOT of money in budget.. and invest ,invest and invest a lot more in their space program. their semiconductor industry ,their automobile industry , and home entertainment industry.. of course also food..and creating modern cities. Russia also need to build their technology with aims not only to sell it to China but to the west too.. in case sanction lifted. All this technology will find a market in ASIA and BRICS nations but also in the west. as Yotaphone2 for example. Russia invest $80 billions every year on its defense industry.. they could cut that number in half by just getting rid of their obsolete navy and keeping a small but modern navy.. like france have. at the moment Russia have 12 destroyers. and about 10,000 sailors in them that Russia needs to pay their salaries too. Just keep only the Kirov class and decomission all others and reduce in half its corvette fleet.. from 71 to 35. and then you will see a LOT of money that RUssia will save and could re-use on its space industry or semiconductor or any other..
Here is the kicker, and prepare yourself....
Military production accounts for industrial production. Actually, mic accounts for 25% of Russias industrial production.
So in other words, if they cut back on buying new boats, or tanks or whatever, they will have even further industrial prodiction output drop, which will result in a negative GDP growth.
What REALLY needs to be done is line up the CBR, execute them for treason, and get interest rates down for business loans. Place incentives for manufacturing modernisation, increase average wage to meet inflation, and start enticing buyers to start buying again, and that will REALLY bring GDP growth back.
Military production accoints for industrial production.
So in other words, if they cut back on buying mew boats, or tanks or whatever, they will have even further industrial prodiction output drop, which will result in a negative GDP growth.
What REALLY needs to be done is line up the CBR, execute them for treason, and get interest rates down for business loans. Place incentives for manufacturing modernisation, increase average wage to meet inflation, and start enticing buyers to start buying again, and that will REALLY bring GDP growth back.
Calm down Stalin. Execute who and what for exactly? AFAIK it was the CBR that saved the Russian economy from graver doom. High interest rate for businesses is in place in order not to (completely) deplete the reserve funds in foreign currency. This makes alot of sense because the current sanctions make it very difficult to lend money internationally. The government opening credit lines with Chinese banks and investment firms were a good hint. This is my impression anyway.
The government is using the reserve funds to patch the crucial holes in the economy. The current interest rates that are in place don't make it impossible to lend. It could have been better ofcourse but right now people who are smarter than you and me have a much better outlook on the economic climate.
sepheronx wrote: so called "greatest CBR" - http://ria.ru/economy/20150917/1256593045.html
Buys $10B more US T-Bonds in July.
Expecting an interest rate hike they might have bought it , a tactical move.
CBR has been buying gold for past 1 years and rarely invested in T Bonds
No, they simply played into US hands. Why the rates didnt go up because the amount of peoppe investing in us T-Bonds helped the market. So it played into the US favor anyway and CBR is following the shenanagins to continue. They did what so many else did. Buy T-Bonds expecting the fed rate hike. Didnt happen and they had more retards buying their debt.
Instead, they can get real growth by investing in Russian market bonds. Like the US Fed res does with US market bonds.
Military production accoints for industrial production.
So in other words, if they cut back on buying mew boats, or tanks or whatever, they will have even further industrial prodiction output drop, which will result in a negative GDP growth.
What REALLY needs to be done is line up the CBR, execute them for treason, and get interest rates down for business loans. Place incentives for manufacturing modernisation, increase average wage to meet inflation, and start enticing buyers to start buying again, and that will REALLY bring GDP growth back.
Calm down Stalin. Execute who and what for exactly? AFAIK it was the CBR that saved the Russian economy from graver doom. High interest rate for businesses is in place in order not to (completely) deplete the reserve funds in foreign currency. This makes alot of sense because the current sanctions make it very difficult to lend money internationally. The government opening credit lines with Chinese banks and investment firms were a good hint. This is my impression anyway.
The government is using the reserve funds to patch the crucial holes in the economy. The current interest rates that are in place don't make it impossible to lend. It could have been better ofcourse but right now people who are smarter than you and me have a much better outlook on the economic climate.
Did you know Russia lends trillion, or over, to other markets, but they cant to themselves? As well, majority of the reserves sit outside of the country. In NATO countries no less. As well, if they invested in their own, tbey could greatly increase their liquidity. I think that is essentially what Glazyev is stating regarding QE in what gunshipDemocracy has stated in the other thread.
Why has CBR decided to make Russia reliant on foreign loans?
Btw, those "Smarter than us with a better outlook" keep revising their outlooks to more negative cause of their incompetence. Every fricken month they revise their forcasts to lower because the performance is worst than before.
Already service sector dropped in August from July, when it was one of the main sectors they were relying on. Manufacturing dropped as well. Mainly thanks to automotive and the loan market.
CBR said growth wont happen now until 2017. And then when 2017 happen, growth wont happen till 2019, and then on and on till the country is bankrupt. And this old ugly b**** of cbr minister will be awarded the best piece of shit on earth for helping destroy the country. At least Iran invested in their own development, rather than gambling on T-Bonds monopoly money.
Military production accounts for industrial production. Actually, mic accounts for 25% of Russias industrial production.
So in other words, if they cut back on buying new boats, or tanks or whatever, they will have even further industrial prodiction output drop, which will result in a negative GDP growth.
What REALLY needs to be done is line up the CBR, execute them for treason, and get interest rates down for business loans. Place incentives for manufacturing modernisation, increase average wage to meet inflation, and start enticing buyers to start buying again, and that will REALLY bring GDP growth back.
They can get those jobs in more lucrative industry.. You have right now about 10,000 Russian sailors in old soviet obsolete warships..producing NOTHING.. just doing at times training for a war that will never happen for their units .. and the other time doing nothing.. It will be far better if Russia takes half of their navy ..lets say 10,000 sailors in 12 destroyers that Russia have ,that indirectly or directly maintain the warships.. and use them for example in construction ,building roads. Building trains ,things that promotes jobs and investment and business.. But rusty warships does not promote anything is a total waste of money.
Building modern quality highways,roads ,trains ,schools ,hospitals ,stadiums ,all those things attract investors.. entertainment parks.. attract tourism.. a warship attract nothing. Is just a blackhole there draining Russian Budget. Russia could do very well with half of their surface fleet and without the blackhole destroyers ,that cost a fortune to keep them in service. Because of the weakness in RUble now is the time for Russia to invest in Tourism.. But also very important is Russia to create an industrial revolution /import technology substitution and no longer depend in the west. Right now the smart phones market is opening for Russia with Yotaphone 2.. this is an example that Russia needs to keep pushing.. But Russian government is not investing on it.. The automobile industry too.. and the home entertainment industry.. this are the things that the majority of people spend their money in end year hollydays.
Also Space Industry ,what is Russia waiting to capitalize and take advantage on its space industry. And accelerate their moon and mars project.. not in the year 3,000. .but start now. with the aim in 5 years to do it.. or create a Space Tourism industry. What is russia waiting to capitalize on the semiconductor industry and compete with Intel and microsoft? Russian computers advertised as 100% safe of viruses and free of NSA spying will sell like hotcakes. This are markets US have a total monopoly and Russia could take a huge part of the cake.. Apple alone makes more dollars than Russia entire economy.. this means that technology sells.
Russians have the talent but the government is missing Big times opportunities.. Instead of Increase the budget on the things that really can push Russia economy to the next level.. that is space industry ,and technology.. they keep wasting their money in building more nukes and creating a larger navy..
What Putin is doing is trying to Influence Americans through military force..and not through technology and innovation. This is Putin greatest mistakes imo. His lack of vision to understand that if he really wants Europe to take Russia seriously and security and create an alliance (to avoid a war with them) . Then Putin needs to turn Russia into a real alternative to United States. that is with a full industrial revolution , in technology ,space ,entertainment and modernization of cities.
pay close attention to this video Seph.. this is what Russia needs to break the siege on the west on them..
This are the things that unites people in a nation..that motivates people to stand behind the leader and can influence the world. Russia needs to become a nation that leads and not one that follows the west.. and been seen as a real alternative to US. Russia needs to influence the west with major world achievements ,not with stupid Nukes. ..everyone wants to be closer to the winners. a country like Germany or Japan that have zero nukes.. have more influence than Russia in the world. and is not surprise. they produce things that everyone wants to have.
pay close attention to this video ..is not an ISIS invasion, neither a civil war.. .. is people running to have a chance and buy something that japan makes..
now imagine if Russia beats Americans in a manned landing to mars.. it will be no different than Gagarin celebrations , even the queen of england wanted to meet gagarin. or at least landing in the moon and creating a lunar base? how much praise they will receive.
This is the way Russia can defeat americans attempts to Isolate Russia,and lift the economic sanctions, by becoming a more attractive nation. But building more nukes and having a very large navy ,russia is not going to convince any nation to replace american business for theirs. Putin simply don't see it.. is so clear for me.. he is indeed disconnected with the world..
Will you trade your internet and american computer and American entertainment .movies ,music,games for a cheaper gas? of course not. This is why Greece says they have no choice but to remain slaves of Europe. Why? Because they don't see in RUssia or Brics as an Alternative of the western business. Putins/Lavrov wants Europe to take them more seriously but But they do Nothing or not enough ,to convince Europe to leave American Business and make alliance with them.
US government says to Europe.. you need to choose between RUssia or US.. and naturally they stay with US. because Russia offers NO alternative to the american business. Why the Euromaidans wanted to be closer to Europe/US world, and not the Russian world? simply because the west is seen largely as the modern world with modern technology with modern economies and all this innovations and technology helps their economy .. Everyone likes german cars.. all womens like french fashion. is called influence and US did a really good job.. in creating an alliance with the nations with more influence but that was possible only because they had the biggest influence ... and left the nations that no one wanted to join .
CBR is not working for Russia, it's a private bank and they couldn't care less about Russia. They are working for the globalist project and are taking their orders from IMF, FED or who the hell knows but certainly not from Putin. Putin didn't mind being part of this project but wanted Russia to be respected as a great power but was rejected. He was rejected for simple reason: Russia is simply too big, too rich, too influential and potentially to powerful to be part of the club. If they give Putin what he wants at any point Russia could become so strong to destroy all the globalist plans, because those plans are not accepted in Russian society even if Putin accepted them at one point. So what we have now is that Putin knows that the globalists want to destroy Russia and kill him, but he has surrounded himself by those same globalist by his own will because he was one of them for much of his rule. So it's a tricky situation for him: he will need to act but is fearful of the moment because when that moment arrives it will really have to be a major purge and not an arrest or two. First thing he will have to do is take control of CBR so to have the bank work in the interest of Russia. Nabiullina is praised allright, but by who? West praises her just like they praised Kudrin the so called "best finance minister of the world" or Yeltsin "the greatest democrat of the world" and Gorbachev "the great moron of the world". Funny how they always praise those who are destroying Russia. So praise by the west always mean "you are doing a great job destroying Russia, keep up the good work!"
Nikander wrote:CBR is not working for Russia, it's a private bank and they couldn't care less about Russia. They are working for the globalist project and are taking their orders from IMF, FED or who the hell knows but certainly not from Putin. Putin didn't mind being part of this project but wanted Russia to be respected as a great power but was rejected. He was rejected for simple reason: Russia is simply too big, too rich, too influential and potentially to powerful to be part of the club. If they give Putin what he wants at any point Russia could become so strong to destroy all the globalist plans, because those plans are not accepted in Russian society even if Putin accepted them at one point. So what we have now is that Putin knows that the globalists want to destroy Russia and kill him, but he has surrounded himself by those same globalist by his own will because he was one of them for much of his rule. So it's a tricky situation for him: he will need to act but is fearful of the moment because when that moment arrives it will really have to be a major purge and not an arrest or two. First thing he will have to do is take control of CBR so to have the bank work in the interest of Russia. Nabiullina is praised allright, but by who? West praises her just like they praised Kudrin the so called "best finance minister of the world" or Yeltsin "the greatest democrat of the world" and Gorbachev "the great moron of the world". Funny how they always praise those who are destroying Russia. So praise by the west always mean "you are doing a great job destroying Russia, keep up the good work!"
Been saying that for years here, do not wonder if you are ignored and have seen here many who praise the CBR liquidity plans right and left while ignoring and overseeing russian constitution that seperates CBR from russia as a private bank, the actions of CBR against russian interests and accounts of surplus.
You two are definately right. CBR are a bunch of morons causing Russias decline. But it appears that it will never change because if it was, we would have seen change start to happen. But so far, Russian media praises her for her corruption and Putin has done f all about it. The economics minister seems to act the way he looks.... a moron.
Here we have proof of economic minister being the same ilk as Kudrin. During tough times, instead of investing in the country, they are slowing down investments.... I think someone needs to knock sense into them. Lowering your own investments will cause nothing but trouble.
Low energy prices and economic sanctions are taking their toll on the Russian economy, so much so that the Kremlin is putting sanctions relief at the forefront of next year's policy agenda. The Western sanctions are in large part designed to affect the Russian economy down the road — for example, energy sanctions target long-term development projects like Arctic oil and gas deposits. But Russia is getting to the point where delays in key projects, along with financing constraints on Russian companies and Western firms doing business in Russia, could cause irreparable harm to the economy in the not-too-distant future. In addition, there are increasing signs that the global economy is about to enter a downturn and that oil prices, which have dropped by more than half since the Ukraine crisis began, will remain low for the foreseeable future and possibly go lower.
Simply put, Russia is starting to realize it cannot weather the sanctions much longer, particularly because the next five years will already be a difficult time for the Russian economy.
What is a Geopolitical Diary? The sanctions have delayed long- and medium-term projects. On Sept. 15, an Energy Ministry official noted that the ministry does not expect drilling to return to the Arctic Sea until 2020 at the earliest. ExxonMobil and Rosneft began drilling in the Kara Sea last August, but the United States ratcheted up sanctions the following month, forcing ExxonMobil to pull out of the project entirely. Pushing back the development timetable by six years likely means that the first oil from the project will not come online until the second half of the 2020s, if not later, instead of during the crucial 2020-2025 period. Moreover, sanctions somewhat inhibit access to technology for shale oil and gas development. As many of Western Siberia's Soviet-era fields decline, Russia needs reinvestment, redevelopment and the discovery of new resources just to maintain its current production levels.
Limits on financing have also affected several key medium-term projects. Novatek's Yamal liquefied natural gas facility has been barred from using long-term dollar-denominated loans. Thus, the project stakeholders — Novatek (60 percent), Total (20 percent) and China National Petroleum Corp., or CNPC (20 percent) — have had to turn to more Chinese financing than they had originally intended. Novatek finally agreed to sell a 9.9 percent stake to the China Silk Road Fund on Sept. 3 during Russian President Vladimir Putin's visit to China. But as China's own economy has slowed, Beijing has been more stringent in its overseas investment strategy, thus limiting Russia's ability to turn away from the West and toward China to offset sanctions blowback. Gazprom's 2014 deal with CNPC on natural gas supplies through the Power of Siberia pipeline has also been difficult to move forward because of China's hesitance to prepay for gas; Gazprom needed the prepayment funds to help finance the construction of the project.
Sanctions are also affecting the Russian financial system. By no means were sanctions the only cause of the Russian ruble's decline and the Russian banking sector's difficulties, but they add enormous weight to what was already a major burden from low energy prices. Because oil prices are largely out of Russia's — or anyone's — control, Moscow must do what it can. In theory, a country with ample financial reserves could use them to offset the decline in government revenue stemming from lower oil prices, as Saudi Arabia and other major oil producers have. But the uncertainty about the duration of sanctions on the Russian financial system has made the Kremlin a miser, holding on to its reserves in case Russia's economic situation grows even bleaker in the future. Therefore, Moscow will likely scale back some of its long-term development plans, such as its military modernization or massive energy projects such as Turkish Stream, Nord Stream II and the Power of Siberia pipeline.
Russia has limited ability to respond to Western sanctions in kind. Russia's counter-sanction options are either very drastic, such as energy cuts to Europe, or very small, such as embargoes on European fruit. They offer no sense of proportionality in response and thus have been ineffectual. Now Russia is trying to create circumstances in which sanctions could be removed, relaxed or suspended, even if that turns out to be a slow process.
In Ukraine, a cease-fire between Ukrainian forces and Russian-backed separatists has held relatively well for the past two weeks, and last week's meetings between the foreign ministers of Russia, Ukraine, Germany and France indicate that officials will soon reach a deal to withdraw heavy weapons from Ukraine. The next important date in the negotiations on Ukraine is Oct. 2, when Normandy format talks between Putin, Ukrainian President Petro Poroshenko, German Chancellor Angela Merkel and French President Francois Hollande will be held (though the leaders instead may meet early, during the U.N. General Assembly next week). France — and to a certain extent, Germany — has begun considering the eventual easing of sanctions on Russia, though nothing is imminent. Russia is laying the groundwork to appease the two most important EU heads of state in hopes that if the Europeans ease sanctions the United States may do likewise.
At the same time, Russia is becoming even more involved in Syria. Although propping up Bashar al Assad and prolonging his government's resistance to rebel movements seems counter to Western interests, it actually supports U.S. and EU positions to a degree, because Russia's support gives Syrian government forces more resources to fight the Islamic State. But Moscow is also trying to bolster its position in the Syrian crisis to potentially gain leverage with the United States. Moscow has few bargaining chips with Washington, but Syria may be enough to bring the United States to the table.
Although discussions between Russia and the United States — whether about Ukraine, Syria or sanctions — have largely broken down, U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov are still communicating. Over the past two weeks, Russian officials have said daily that Putin is interested in a meeting with U.S. President Barack Obama but that the Americans are sending mixed messages. This week the White House said Obama would speak with Putin only "when it would advance our (the United States') interests."
However, Moscow is thinking of its own interest, namely, negotiating with the United States for an eventual easing of the sanctions. Next week's U.N. General Assembly in New York could indicate how open the United States is to moving quickly on a dialogue with Russia. Kerry and Lavrov are set to meet, but the big question is whether the Russians can convince Obama to sit down with Putin.
Moscow's key objective for 2016 and 2017 is getting relief from the sanctions, and it will use whatever it can — Ukraine and Syria included — to present itself as a willing partner. Theoretically, the European Union could remove some restrictions as early as January, when EU sanctions are set to expire. Russia now aims for the removal of U.S. sanctions sometime in the next two years.
Even with Moscow intent on sanctions removal, it will not completely bend to Washington's demands. Russia must maintain its influence in Ukraine's eastern region and rebuff NATO's attempts to contain Russia. The sanctions are finally starting to bite Russia, and Moscow is trying to use its limited tools to find some relief where it can, but there are still some concessions Russia will not make.
russians can tell better about Russia's Economy . An italian muscovite said : "Declining living standards, weaker economic growth, persistent ruble exchange rate volatility, and higher inflation are not treated by the authorities as serious problems. Any criticism is rejected out of hand; negative forecasts are viewed as tantamount to acts of sabotage. Further deterioration of economic indicators will presumably be presented as part of the new norm as well—this way, the authorities can both convince themselves and deceive the public. In turn, the public is adapting and getting used to making do with less and less.." Russian economy in 2015 is in big recession with a contraction of -4 in GDP.
Dunno where you got thag shit article from but Russias position hasnt changed. And low oil prices and exchange rates are not their problem. Their problem is complete gross incompetence of their central bank and their economists. Pure and simple. 3.9% drop is nothing as Russia faced worst in 2009, but majority of this could have been averted.
Funny how the articles statement changes 180 in same article. First they are buckling, then they state how Russias positions keep going against US interests.
Holy hell, I can write better articles than that. Slow down development of power of siberia pipekine? Umm, under this whole thing, they are more likely to speed it up to obtain more money. Same eith turk stream. Rest are usually their own investments.
Fuck me, that article was written by retards.
Last edited by sepheronx on Thu Sep 17, 2015 2:13 pm; edited 1 time in total
sepheronx wrote:Dunno where you got thag shit article from but Russias position hasnt changed. And low oil prices and exchange rates are not their problem. Their problem is complete gross incompetence of their central bank and their economists. Pure and simple. 3.9% drop is nothing as Russia faced worst in 2009, but majority of this could have been averted.
Funny how the articles statement changes 180 in same article. First they are buckling, then they state how Russias positions keep going against US interests.
Holy hell, I can write better articles than that.
ZOMG the Russians are buckling from low oil prices....
sepheronx wrote:Dunno where you got thag shit article from but Russias position hasnt changed. And low oil prices and exchange rates are not their problem. Their problem is complete gross incompetence of their central bank and their economists. Pure and simple. 3.9% drop is nothing as Russia faced worst in 2009, but majority of this could have been averted.
Funny how the articles statement changes 180 in same article. First they are buckling, then they state how Russias positions keep going against US interests.
Holy hell, I can write better articles than that.
ZOMG the Russians are buckling from low oil prices....
....Meanwhile Gazprom is making record profits...
So has Rosneft.
I wonder what their theoretically reasoning is for slowing production of power of siberia pipeline during these tougher times? Agreement was made and signed, they have to build it as both sides have already started.
sepheronx wrote:Dunno where you got thag shit article from but Russias position hasnt changed. And low oil prices and exchange rates are not their problem. Their problem is complete gross incompetence of their central bank and their economists. Pure and simple. 3.9% drop is nothing as Russia faced worst in 2009, but majority of this could have been averted.
Funny how the articles statement changes 180 in same article. First they are buckling, then they state how Russias positions keep going against US interests.
Holy hell, I can write better articles than that. Slow down development of power of siberia pipekine? Umm, under this whole thing, they are more likely to speed it up to obtain more money. Same eith turk stream. Rest are usually their own investments.
Fuck me, that article was written by retards.
Yeah I simply assumed that it's Startfor, a company with reputation, so they'd write something worthwhile. There's another article on Russian statelets and Syria's situation. They do mention some interesting thoughts about Moscow trying to establish a de-facto Alawite state within Syria, hence the military build up.
Nikander wrote:CBR is not working for Russia, it's a private bank and they couldn't care less about Russia. They are working for the globalist project and are taking their orders from IMF, FED or who the hell knows but certainly not from Putin. Putin didn't mind being part of this project but wanted Russia to be respected as a great power but was rejected. He was rejected for simple reason: Russia is simply too big, too rich, too influential and potentially to powerful to be part of the club. If they give Putin what he wants at any point Russia could become so strong to destroy all the globalist plans, because those plans are not accepted in Russian society even if Putin accepted them at one point. So what we have now is that Putin knows that the globalists want to destroy Russia and kill him, but he has surrounded himself by those same globalist by his own will because he was one of them for much of his rule. So it's a tricky situation for him: he will need to act but is fearful of the moment because when that moment arrives it will really have to be a major purge and not an arrest or two. First thing he will have to do is take control of CBR so to have the bank work in the interest of Russia. Nabiullina is praised allright, but by who? West praises her just like they praised Kudrin the so called "best finance minister of the world" or Yeltsin "the greatest democrat of the world" and Gorbachev "the great moron of the world". Funny how they always praise those who are destroying Russia. So praise by the west always mean "you are doing a great job destroying Russia, keep up the good work!"
This is a very good post and that is why Russia should kill those 5th column CBR scum off quietly and take over its banks. I don' trust this Nabiullina bitch.
Russia central bank is not private , that is a myth.. is a semi private ,semi goverment bank. The Central bank needs to give Half of its profits to the Russian Government.. no Bank can be called private if needs to give its profits ,half of them to Russia.. There is much more information people needs to know to judge the central bank of Russia... ie.. Russia government decisions can be influenced by a war they projecting could start..or by US federal reserve interest rate increase.
All the so called Russian "experts"asking for the shot of nabiullina or kicking of her ,or nationalization of central bank.,for not starting heavy controls in the RUble and defending the Ruble value were terrible wrong. Why Russia needs the ruble to be very strong? that doesn't promote investments.. Notice how CHina lowered the value of their currency ,to become more competitive and attract more investors.
The RUssian agriculture industry is a major success. and their import substitution of western technology ,i can't see how it will not be implemented. A strong ruble is only good to have Russian Billionaires taking away their money to the west and to encourage buying foreign products and not domestic ones. a weaker ruble will encourage a lot of investments in Russia Tourism and the creation of production plants in Russia because will be very cheap . I read somewhere that India was buying Russia steel and not buying their own because was more cheap the RUssian one. in just 20 years.. the estimates of China and Europe is that the demand for oil with duplicate or more.. So i dont see how Russia can fail in the long run..if they have real products to sell ,that every industry needs. central bank decisions we do not have all the facts to know if what they doing is right or wrong. Only the Russia economic Minister understand their strategy and counter strategy for what they believe will happen in US banks..
For example.. it could be possible.. that American elites.. are trying to commit a controlled demolition of their economy , like they did in 9/11 with the WTC ,that it collapsed but in a controlled way.. To bring down the entire world economy.. with the believe that they will be able to quickly recover their economy in 2-3 years .. (as they did in 2008) and Russia and China not.. So this could one possible reason for Russian central bank buying Dollars.
It is my believe Russia strategy is to bring down US dominance in the world economy.. but slowly.. not too fast.. Remember that China economy depends in US economy ,and what kind of Asian pivot Russia can do ,if China collapse?
Its quite possible US is evaluating to committing to inflict damage on themselves ,auto attack as they did in 9/11.. with the believe that they will recover more faster than anyone else. This could potentially explain why Russia is now interesting in virtual currency and announced the creation of one controlled by Russia goverment. Perhaps they trying to have already setup a currency system working if the entire world economy collapse.
Last edited by Vann7 on Thu Sep 17, 2015 3:39 pm; edited 1 time in total
We are not asking for rouble to be strong. We are saying the interest rates are way off, causing bankruptcies and lack of modernization. Add to it, now econonic minister is cutting back on fixed asset investments.
Central banks idea of the interest rates, investing in us T-Bonds and alike have cause great concern amongst many. She hasnt helped the economy at all. Inflation being lowered has way more to do with ramp up of local goods increased sales, and new suppliers from other countries other than EU. Inflation is barely increasing yet they didnt lower the interest rates.
She has tied the rouble. She didnt free float it. She is adjusting interest rates by value of oil. She stated that they can lower the rates eventually cause oil is at $50bbl. So she is helpibg the dependency on oil for the country. She doesnt seem to realise she is one of the main reasons why Russia is going to find it hard to diversify the economy. All is being relied upon government now doing that spending. But even the idiot economics minister whom I always hated ad mich as Kudrin announced he will cut back in fixed asset investments by 10%. Fixed asset investments are things like tools, infrastructure, etc. This is going to really, really really hurt Russia in the long term. As Russia will eventually have to spend way more in the future to fix these mistakes.
Did you know during most crisis, the government would create more jobs by investing in fixed assets, more money? Yes. They would end up ramping up local production to reduce inflation in the country, they would order for new infrastructure and alike. Rhese methods saved economies. Instead, now, it is all about penny pinching, whcich actually causes a ripple effect (bad) than solves anything. Evidence is Greece.
But because these idiots all come from the same higher school of economics, there is no stopping it. They are all taught the same stupid shit.
Yeah I simply assumed that it's Startfor, a company with reputation, so they'd write something worthwhile. There's another article on Russian statelets and Syria's situation. They do mention some interesting thoughts about Moscow trying to establish a de-facto Alawite state within Syria, hence the military build up.
Buddy, I will be upvoting you as soon as I am able to. EDIT: Done +1
People like to take a dump on CBR and Nabulina but they keep forgetting who was it that saved Russia's collective ass during largest financial warfare assault in recent (or even recorded?) history.
Is situation perfect? Of course not, but nothing ever is. I see a lot of armchair generals, backseat drivers and Monday morning quarterbacks being high and mighty here and mostly it is same folk who were seeing fifth column everywhere during various stages of Ukropistan crisis and advising assault on Lvov, finances be damned...
And then it turned out that there weren't any traitors, just a complicated plan on behalf of Moscow and we were simply not allowed to see all the moving parts of that plan.
I believe same applies here. These people have waaaaaay more information on this topic than anyone here.
If you ask any government or individual out there if they want Russia to bite the bullet and try to create "brave new world" majority will say: YES!!!
But if you ask them if they want to take a risk with Russia on that "brave new world" project they will reply: FVCK NO!!!! We will stick with dollar and good ole' US of A!!!
I find it funny that any of you think that CBR does anything else but follow orders from the government. And do not forget who was it that gave Nabulina that job...
Vann7 wrote:Russia central bank is not private , that is a myth.. is a semi private ,semi goverment bank. The Central bank needs to give Half of its profits to the Russian Government.. no Bank can be called private if needs to give its profits ,half of them to Russia.. There is much more information people needs to know to judge the central bank of Russia... ie.. Russia government decisions can be influenced by a war they projecting could start..or by US federal reserve interest rate increase.
All the so called Russian "experts"asking for the shot of nabiullina or kicking of her ,or nationalization of central bank.,for not starting heavy controls in the RUble and defending the Ruble value were terrible wrong. Why Russia needs the ruble to be very strong? that doesn't promote investments.. Notice how CHina lowered the value of their currency ,to become more competitive and attract more investors.
The RUssian agriculture industry is a major success. and their import substitution of western technology ,i can't see how it will not be implemented. A strong ruble is only good to have Russian Billionaires taking away their money to the west and to encourage buying foreign products and not domestic ones. a weaker ruble will encourage a lot of investments in Russia Tourism and the creation of production plants in Russia because will be very cheap . I read somewhere that India was buying Russia steel and not buying their own because was more cheap the RUssian one. in just 20 years.. the estimates of China and Europe is that the demand for oil with duplicate or more.. So i dont see how Russia can fail in the long run..if they have real products to sell ,that every industry needs. central bank decisions we do not have all the facts to know if what they doing is right or wrong. Only the Russia economic Minister understand their strategy and counter strategy for what they believe will happen in US banks..
For example.. it could be possible.. that American elites.. are trying to commit a controlled demolition of their economy , like they did in 9/11 with the WTC ,that it collapsed but in a controlled way.. To bring down the entire world economy.. with the believe that they will be able to quickly recover their economy in 2-3 years .. (as they did in 2008) and Russia and China not.. So this could one possible reason for Russian central bank buying Dollars.
It is my believe Russia strategy is to bring down US dominance in the world economy.. but slowly.. not too fast.. Remember that China economy depends in US economy ,and what kind of Asian pivot Russia can do ,if China collapse?
Its quite possible US is evaluating to committing to inflict damage on themselves ,auto attack as they did in 9/11.. with the believe that they will recover more faster than anyone else. This could potentially explain why Russia is now interesting in virtual currency and announced the creation of one controlled by Russia goverment. Perhaps they trying to have already setup a currency system working if the entire world economy collapse.
That is not a myth it is written in russian constitution after fall of Soviet Union. The CBR is not liable for Russian Federation and Russian Federation is not liable for CBR, that makes them entirely private central bank. Since Russian rubel is made for RF it is only obligated to print it, their policy of FOREX and policy in how strong or weak they make the rubel is in their hands not in RF government hands, which makes it a private bank controlling the currency. You should just remember what Amschel Bauer Rothschild said.
Amchel Rothschild quote, "Give me control of a nation's money supply, and I care not who makes its laws."
Central Banks must be seized by the government, do the employees of those private central banks and all private banks do not follow the state and countries needs, then they should be considered for what they are, foreign agents and face life sentence in jail for high treason against their own countries and especially against the population for the benefit of true and evil enemies like the US of A.
We will see.. but i feel the same way ..when people were saying Putin sold Novorosiya.. because he did not allowed the Rebels to take mariupol. and he refused to annex them ,and allowed kiev to kill too much people with their shelling.. that putin betrayed Novorosiya for removing strelkov from the war zone..and for demanding Donetk and lugansk to accept an autonomomy only and give up their independence plans..
Almost everyone was calling putin a traitor.. but i knew he wasn't.. he have a too short vision when it comes to Russia future..but i knew a traitor he wasn't . and saw since the start that Minsk-2 was a brilliant treaty ,that could really end the conflict.. and now all the people that were calling Putin a traitor ,are in total silence.. you no longer hear about them.. In short they now know they were wrong.
So is the same now with the bank.. People forget that Putin hired Elvira Nabiullina to lead the Russian central bank in a completely different environment of Kudrin.. ie.. that Russia had much more power and independence from the west and the economy was much stronger. So i really think he knew what he was doing.. it will be foolish for Putin to hire an enemy in such important critical position and later threaten the west with a currency war and alternative banking industry like BRICS.. if he didn't knew ,Russia government had any control over its own bank.
It will be like Cuba army invasion on USA.. a totally stupid decision. You never go to a war that you know you can't win. and im 100% sure Putin knew what he was doing when elected Nabiullina to that position. And that Putin will have never challenged American Financial system with BRICS and by not using dollars in Asia ,if he knew their Central bank was under total control of the west. The major crisis ,the test of fire for Russia economy and for the loyalty of the Russian Central bank was in December 2014.. when the ruble was at 90 under attack.. what happened later? the Ruble strengtened and without burning a fortune in Russian reserves .
I really don't think there is a conspiracy with the Russian Central bank.. is a semi private bank,with semi Government control ,and this is the way it should be since it can attract investors from the west. Look for example at the Bank of IRAN. it is completely national bank. Government owned..and they are not exactly a major world economy.. but actually a poor nation. I think is clear for me that Putin policy is one of Not self isolation ,and openess with the western financial system. To keep doors open with the west.. because that will allow the possibility to keep the doors open of diplomacy with them.
A former economic advisor to Russian President Vladimir Putin, Elvira Nabiullina became the first woman to run the Central Bank of Russia in 2013. She was Russia's Minister of Economic Development and Trade in 2007-2012.
It was working for Putin since 2007.. so i think by this time Putin should know whether she is trustable or not. I dont think he will have elected her again in 2013.. if he knew there was a risk. I think the actions of the central bank are part of an strategy they working. Keeping the interest rate high for example makes it more difficult for speculators to play Casino with Russian RUble value. So there can be reasons for that.. last i heard Nabiullina was suggesting might lower the interest rate end of year.. or early next. Im not economist again.. but it looks to me that right now will be dangerous to lower interest rate.. very.. when Americans central Bank are going to change theirs..and the RUble already a too weak.. trading at ~65.. The last time for example the interest rate was lowered was when the ruble was a bit to high of where they wanted it.. Russia wants the Ruble at 55 per dollar.. and it was at 49.. when it was lowered the interest rate. So another reason for not touching interest rate is the weak ruble.. if they lower it for 2 points for example the interest rate from 11 to 9 ,it could go to 75 per dollar.. this is dangerous low.
Last edited by Vann7 on Thu Sep 17, 2015 4:33 pm; edited 2 times in total
Kudrin, Serdyukow and Abrahamovic worked all in putins career either as president or as advicer, he had enough time to know them and still this 5th columnists were in power or have made their deal with the west, so what is your excuse for that?
Fact is 5th columnists of the upper families still dictate alot of who gets were in the kremlin and putin has not enough power to purge them all at once. He pardoned the subhuman Khordokovsky, he does not benefit from him, he is not in power, either he was maneuvered in position to release this subhuman out of jail due whatever measures and power the 5th columnists hold or he is kind of useful as a 5th columnist, organizing "protests" and other shady coup de etat work for the west.
If i had any kind of power i already would have started a massive purge, no jail times, just executions block for CBR every single oligarch, everyone that speculates on resources especially food, all people like kudrins, navalny, nemzovs and all the rest of the liberal subhumans who openly recieve instructions from US ambessadors, every russian official or any russian duma member who ever set a food into the US embassy without knowledge, approval and good reason with no other option but to tell Fuck off the US filth ambassador, no other reason to get in their, not to mention close that shit and jail the ambassador for violation of russian constitution and sabotage acts by giving instructions to traitors.
The west is very harsh on such subversive actions by any foreign government, while russia allows humane treatment of subhuman traitor scum that is working openly for the enemy, recieving and directing unrests by USAID funded NGO's against russians and entire russia and all slavic population.
The Russian 5th column is a joke and Putin knows it. He is toying with them like a cat with some small animal it has cornered. Having them sent to the martyr afterlife is not a good choice for Russia. Having these retards alive and spouting off about "bydlo" Russians is the perfect self-snookering.
The CBR should be squeezed tighter, I agree. It is still pursuing monetarist voodoo but it also serves to maintain the psychological stability of Russian markets inside the global markets. Having Stalin-esque Draconian management of the economy would do a lot of damage. Russia was saddled with a market economy, so it needs to follow at least the critical rules. But I think it is doing an excellent job of steering domestic markets to serve state interests and not to act like a banana republic. Obama's yapping tells me that NATO was expecting Russia to respond to the sanctions like a banana republic, but the opposite happened.
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so called "greatest CBR" - http://ria.ru/economy/20150917/1256593045.html
In short they now know they were wrong.