Russian Economy General News: #6

This is why Putin is the Ebil mastermind. He suffered most of the backdrop while under "sanctions" (although sanctions didn't actually caused that much harm) and now he's going to accelerate the streamlining policies (at the expense of the Russian tax base). And when the oil goes back, the first beneficiary will be the Russian state, then the tax base.

Meanwhile, Russia needs less and less oil revenues as an economy.

sepheronx wrote:

Vann7 wrote:Interesting video about the tricks used by Russian Billionaires traitors to avoid paying taxes
in Russia.  


Great interview: Are foreign consultants engaged in industrial espionage and subversion in Russia?

Hey, great find vann.  Is it OK I post this on the website and give credit to you?

As well, to add to this, if you were on MP.net, there was a certain Russian member whom was from Vladivostok.  He wasn't a bad guy per se, but he did admit to doing grey book keeping or something along those lines.  Essentially, his accountant would fudge numbers in order to prevent paying certain taxes.  This guy would complain how bad it is in Vladivostok, yet owned 3 cars, had a fairly large home and all for having a designer company.....

Anyway, we have people in Canada whom do the exact same type of auditing methods.  So I do not think it is a way to aim to destabilize Russia unless whomever these groups are, are aiming to destabilize most countries:
http://www.rollingstone.com/politics/news/the-biggest-tax-scam-ever-20140827

Essentially, these are the same people.

But, the guy in the video is doing the right thing.  Pointing these issues out, and being part of an organization in dealing with other groups whom try to cause harm to Russia, especially economically.

This is very true, I am from Canada and my relatives do this.

Russian CB does not want to ease the plight of those who took USD mortgage loans before the crisis. Now the ruble value of the loan has increased 200% but the liberast CB blame the mortgage takers. - What a hypocrisy! I am for (fairly) free markets, but in a free market with central banks, it is the role of the central bank to protect the market, and the people, against external shocks. It is clearly and unequivocally the fault of the CB and the liberasts - that they allowed banks to issue loans in USD.

http://www.rbc.ru/society/27/01/2016/56a906029a79470b78285675

So I decided to do my little Oped:
http://rusnews.net63.net/2016/01/27/oped-russias-economy-and-the-transition/

Tell me what you think.

JohninMK wrote:

sepheronx wrote:So I decided to do my little Oped:
http://rusnews.net63.net/2016/01/27/oped-russias-economy-and-the-transition/

Tell me what you think.

Like your site. Good luck.

Small suggestion, in the copywrite section, why not ask for a link back to your site?

Good Idea.

Russian NGOs in action.. creating problems.

Russia: Mortgage holders protest loan conditions on Moscow's streets

This is fantastic. If I had to go somewhere and some idiot protesters stood in my way, I would have punched a few of them. Great thing about this, it is a couple dozen at best? LOL. Pathetic really. But funny none the less.

Vann7 wrote:Russian NGOs in action.. creating problems.

Russia: Mortgage holders protest loan conditions on Moscow's streets

UVaFp228zvU

Shows you how detached from reality these people are. They expect the sort of pampering that nobody
would ever get in the west. But to them it is what "normal" western countries do for their citizens.

kvs wrote:

Vann7 wrote:Russian NGOs in action.. creating problems.

Russia: Mortgage holders protest loan conditions on Moscow's streets

UVaFp228zvU

Shows you how detached from reality these people are.  They expect the sort of pampering that nobody
would ever get in the west.   But to them it is what "normal" western countries do for their citizens.  

Someone needs to learn on how to communicate with these people. I wish I could go over there right now, with a copy of my mortgage bill and then counter protest these people. I imagine they would feel foolish and stupid afterwards when they realize their mortgage is probably nowhere near as high as mine and that my government will not pay it off for me.

kvs what do you make out of this statement of debt in local currency does not matter as country can always debase their currency ?
Please check the link from a member called Suraj

http://forums.bharat-rakshak.com/viewtopic.php?f=2&t=6655&p=1972374#p1972201

sepheronx wrote:

kvs wrote:

Vann7 wrote:Russian NGOs in action.. creating problems.

Russia: Mortgage holders protest loan conditions on Moscow's streets

UVaFp228zvU

Shows you how detached from reality these people are.  They expect the sort of pampering that nobody
would ever get in the west.   But to them it is what "normal" western countries do for their citizens.  

Someone needs to learn on how to communicate with these people.  I wish I could go over there right now, with a copy of my mortgage bill and then counter protest these people.  I imagine they would feel foolish and stupid afterwards when they realize their mortgage is probably nowhere near as high as mine and that my government will not pay it off for me.

What is disturbing is not the numbers in the protest.. but what they intended to do.. they wanted to blockade the city main road. This is not protest but sabotage and usually people do
things like this when have really bad intentions ,to create problems. and not interested
at all in dialogue or to meet with any authority. It seems as if it was a planned provocation
financed and not a genuine protest.  It seems Russia will need to create more extreme measures to keep in check the people bank accounts in Russia who are problematic ,this is to monitor their finances.  Something like an Id card/passport that contains encrypted information
that only Federal Police can access to see ..

1)Where they live .. the protesters.
2)To monitor the travel acticities of them and which places they go and meetings
they do.. who sponsor or organize them.
3) to monitor its finances ,for who they work if they are NGO or receive any
benefit/money from western organizations.. and if found to do it.. then receive
a major fine for minor crime or jail. It should be a criminal offense in Russia to receive
foreign money or material economical favors  for protesting about anything.
4)Then their ID cards should be marked with a Big Negative title Foreign sponsored agent.
and that every major restaurant ,gas station should should have computers to report where they go and how they spent their money and their last position .So every time they need to show their idcards be ashamed.. but at the same time the Government easily keep track of the movements of them.

yes this is invasion of privacy ,but is well deserved when is proven they are funded by foreign
powers either directly or indirectly through Russian oligarchs.

Again this protest is the most disturbing one ,i have seen in a long time..since Putin came as president. they were aiming to created problems and paralize the city..and were using force
to resist police do its work. have seen protest of thousands people that nevers do that.
and peacefully use the designated areas for protest.

Putin could also introduce a special TAX for people labeled /found to receive money
from foreign powers either directly or indirectly . For example a 30% tax on everything for a year or two or more,depending on people behaviour, people who receive money from abroad and create problems in highly questionable organizations . Putin can argue that the Tax is implemented to force a penalty fine on the nations who sponsored the protest and pays them.

Last but not least.. any Protester that blocks a street and create problems for another citizen.
ie.. that arrive late at work or emergency to hospital.. or accident because of the protest.. should be encouraged by the kremlin to start a lawsuit against the protesters ,to take them to court and pay for the problems they caused on them. So thousands of people will have the chance to pushing the protesters economically and demand compensation. Everything that makes more miserable the life of anyone who try to block people from driving and cause problem in their activities that day. 
.

http://russia-insider.com/en/business/upbeat-mood-putin-reviews-economy-his-team/ri12505

Nice article by Alexander Mercouris. The CBR needs to be smacked down with its retarded interest rate policy.

Austin wrote:kvs what do you make out of this statement of debt in local currency does not matter as country can always debase their currency ?
Please check the link from a member called Suraj

http://forums.bharat-rakshak.com/viewtopic.php?f=2&t=6655&p=1972374#p1972201

It depends on what the debt service costs are.  Even if the debt is in domestic currency a big enough debt will mean that the government
will spend most of its revenues paying interest instead of spending them on what they are supposed to be spent on.   The trick in the
west has been the near zero interest rates set by the central banks (private or not).   Dialing down the interest rate dials down the
interest costs.   But there is no guarantee that the interest rates will stay low forever and a huge debt could lead to a debt servicing
shock.

The only way that domestic debt (regardless if it is private or public) can be reduced without actually paying it down or defaulting is
through inflation.   Foreign debt is not typically given in local currency since most foreign lenders have some content between their ears.  
So the claim that the debt burden can be reduced merely by debasing the currency is patent nonsense.    Forex rates have nothing to
do with domestic debt.  But a forex rate drop aka "debasement" can induce inflation.    A high inflation policy is rather stupid since it
undermines economic growth and government revenues.  

There ain't no free lunch.  Suraj's post is a string of words with no meaning.   You will note the QE in the USA has not resulted in US
debt levels shrinking.   I have not seen governments print money to pay down debt in recent history.   But if they did, then it would be
a variation on the inflation theme.   Also, the government could print money and give it to private debt holders to pay down their debts
so I don't see why private debt is special and government debt is of no concern.    Governments don't borrow money from their minting
agencies but instead borrow from banks or issue bonds (aka treasurys in the USA).  Otherwise why not just print money instead of borrowing.  
And here we come back to the fact that inflation is a bad thing and governments not composed of total lunatics try to avoid it.

History of Russia`s trade surplus (merchandise):

1994 - $16.9 bln

2000- $57.1 bln

2015 - est. $189.7 bln

kvs wrote:

Austin wrote:kvs what do you make out of this statement of debt in local currency does not matter as country can always debase their currency ?
Please check the link from a member called Suraj

http://forums.bharat-rakshak.com/viewtopic.php?f=2&t=6655&p=1972374#p1972201

It depends on what the debt service costs are.  Even if the debt is in domestic currency a big enough debt will mean that the government
will spend most of its revenues paying interest instead of spending them on what they are supposed to be spent on.   The trick in the
west has been the near zero interest rates set by the central banks (private or not).   Dialing down the interest rate dials down the
interest costs.   But there is no guarantee that the interest rates will stay low forever and a huge debt could lead to a debt servicing
shock.

The only way that domestic debt (regardless if it is private or public) can be reduced without actually paying it down or defaulting is
through inflation.   Foreign debt is not typically given in local currency since most foreign lenders have some content between their ears.  
So the claim that the debt burden can be reduced merely by debasing the currency is patent nonsense.    Forex rates have nothing to
do with domestic debt.  But a forex rate drop aka "debasement" can induce inflation.    A high inflation policy is rather stupid since it
undermines economic growth and government revenues.  

There ain't no free lunch.  Suraj's post is a string of words with no meaning.   You will note the QE in the USA has not resulted in US
debt levels shrinking.   I have not seen governments print money to pay down debt in recent history.   But if they did, then it would be
a variation on the inflation theme.   Also, the government could print money and give it to private debt holders to pay down their debts
so I don't see why private debt is special and government debt is of no concern.    Governments don't borrow money from their minting
agencies but instead borrow from banks or issue bonds (aka treasurys in the USA).  Otherwise why not just print money instead of borrowing.  
And here we come back to the fact that inflation is a bad thing and governments not composed of total lunatics try to avoid it.

Thanks Agree

Kremlin Transcript quotes trade surplus at 145 billion Roubles and not $145 billion as quoted by news site

http://en.kremlin.ru/events/president/news/51211

Vladimir Putin: We have a positive trade balance. Taking into account the drop in prices for our main export goods, including raw materials, what caused this positive trade balance?

Alexei Ulyukayev: We have a positive trade balance and balance for current operations.This is what is most important. In 2015, we had a trade surplus of about 145 billion rubles. This is slightly less than we had before. First and foremost, this is due to the drop in our export prices. Physical volumes have not declined, and the fourfold oil market drop, as well as the drop in the markets for gas and ferrous and non-ferrous metals, have led to a serious decrease in the price of exported goods. But the cost of imports has also declined.

http://www.tradingeconomics.com/russia/balance-of-trade

Russia posted a USD 9.1 billion trade surplus in November of 2015, down from a USD 13.7 billion surplus a year earlier, as exports shrank 30.5 percent and imports 28.9 percent. It is the lowest trade surplus since August.

Year-on-year, exports shrank 30.5 percent to USD 25.5 billion while imports decreased 28.9 percent to USD 16.4 billion, central bank data showed.

Austin wrote:Kremlin Transcript quotes trade surplus at 145 billion Roubles and not $145 billion as quoted by news site

http://en.kremlin.ru/events/president/news/51211

Vladimir Putin: We have a positive trade balance. Taking into account the drop in prices for our main export goods, including raw materials, what caused this positive trade balance?

Alexei Ulyukayev: We have a positive trade balance and balance for current operations.This is what is most important. In 2015, we had a trade surplus of about 145 billion rubles. This is slightly less than we had before. First and foremost, this is due to the drop in our export prices. Physical volumes have not declined, and the fourfold oil market drop, as well as the drop in the markets for gas and ferrous and non-ferrous metals, have led to a serious decrease in the price of exported goods. But the cost of imports has also declined.

http://www.tradingeconomics.com/russia/balance-of-trade

Russia posted a USD 9.1 billion trade surplus in November of 2015, down from a USD 13.7 billion surplus a year earlier, as exports shrank 30.5 percent and imports 28.9 percent. It is the lowest trade surplus since August.

Year-on-year, exports shrank 30.5 percent to USD 25.5 billion while imports decreased 28.9 percent to USD 16.4 billion, central bank data showed.

That would mean that trade surplus for Russia was $19.1B overall in 2015.  I think there is a major translation issue going on here.

also:


http://www.theglobaleconomy.com/Russia/trade_balance_dollars/


If you read the trading economics link, it also states that balance of trade in million USD would amount to $129B with those numbers.

'Profit is Banksters' God': 70K Russians with dollar & euro mortgages can't afford to live

Too bad for them.  I bank in CAD since I live in Canada.  I never bothered to grab loans in USD or Euro.  So the CAD dropped in value heavily and I still owe same amount on my house.

But it seems Russian gov is gonna bail them out anyway.  I guess they have a softer heart than most in the west.  Hope people do not try to take advantage of this.

Edit:

Just some recent economic data

sepheronx wrote:

Austin wrote:Kremlin Transcript quotes trade surplus at 145 billion Roubles and not $145 billion as quoted by news site

http://en.kremlin.ru/events/president/news/51211

Vladimir Putin: We have a positive trade balance. Taking into account the drop in prices for our main export goods, including raw materials, what caused this positive trade balance?

Alexei Ulyukayev: We have a positive trade balance and balance for current operations.This is what is most important. In 2015, we had a trade surplus of about 145 billion rubles. This is slightly less than we had before. First and foremost, this is due to the drop in our export prices. Physical volumes have not declined, and the fourfold oil market drop, as well as the drop in the markets for gas and ferrous and non-ferrous metals, have led to a serious decrease in the price of exported goods. But the cost of imports has also declined.

http://www.tradingeconomics.com/russia/balance-of-trade

Russia posted a USD 9.1 billion trade surplus in November of 2015, down from a USD 13.7 billion surplus a year earlier, as exports shrank 30.5 percent and imports 28.9 percent. It is the lowest trade surplus since August.

Year-on-year, exports shrank 30.5 percent to USD 25.5 billion while imports decreased 28.9 percent to USD 16.4 billion, central bank data showed.

That would mean that trade surplus for Russia was $19.1B overall in 2015.  I think there is a major translation issue going on here.

also:


http://www.theglobaleconomy.com/Russia/trade_balance_dollars/


If you read the trading economics link, it also states that balance of trade in million USD would amount to $129B with those numbers.

Are we talking about Exports or Current Account Surplus which is total export - total imports ?

Thanks , BTW I checked your Blog and its wonderful , Thank You for your effort.

Makes a good read of various opinions on current crisis


http://www.theguardian.com/commentisfree/2016/jan/29/heading-for-a-crash-global-economic-meltdown-panel-repeat-2008-china-slowdown