Russian Economy General News: #8

Austin wrote:Glazyev estimated the loss of the Russian economy from the system of currency regulation at $ 100 billion a year

https://rns.online/economy/Glazev-otsenil-poteri-ekonomiki-Rossii-ot-sistemi-valyutnogo-regulirovaniya-v-100-mlrd-v-god-2017-11-01/

Adviser to the President of the Russian Federation Sergey Glazyev estimated the losses of the Russian economy from the existing system of currency regulation at $ 100 billion

According to Glazyev, the Russian system of currency regulation needs substantial changes, under which the inflow of money to Russia will be less limited, while the outflow is only within certain areas.

"Look how it works in China. A similar system should be adopted in Russia. We need to avoid the dollarization of our money supply, work in the same way as our Chinese partners and most other countries work, that is, it is allowed to import money without restrictions with control, of course, certain, but it is limited to export only by those directions that are necessary for economic development, investment in export infrastructure, "he said.

"We have created a unique practice in the world when it is much more difficult to import money to Russia than to take it out. We actually do not have any restrictions for transfer abroad, if it is properly designed. But to import money into Russia is extremely difficult. At us the most part of the private capital necessary for reproduction of economy, is in off-shores. The policy of monetary authorities has already led to the fact that more than half of the non-state capital circulating in Russia has offshore jurisdiction, "Glazyev summed up.

The Ministry of Economic Development named the conditions for accelerating the growth rates of the Russian economy

MOSCOW, September 25 (Itar-Tass) - RIA Novosti . The economy of the Russian Federation should find 5 trillion rubles of additional investments a year to grow faster than the world average, said the head of the Ministry of Economic Development Maxim Oreshkin, speaking at a conference at the corporate university of the Savings Bank.

Russia's economy outperforms sovereign rating, authorities and business consider
"The investment activity, which was seriously declining at the end of 2014, in 2015, has emerged from the middle of last year to a positive dynamic, there is a recovery, it is very important to move forward, investment growth should become stronger, the number of projects to be implemented in the Russian economy should become more ", - said the head of the Ministry of Economic Development.
"According to our estimates, in order for the Russian economy to reach the growth rates above the world average by 2016, we need to add about 5 trillion rubles of additional investment each year," Oreshkin said.
"In general, by 2017, we expect growth (GDP - Ed.) Slightly above 2% (official forecast - 2.1% - Ed.)," The minister also recalled.

РИА Новости https://ria.ru/economy/20170925/1505465132.html



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5 trillions is about 90bln USD right?

The economic clowns are losing their positions soon I think, especially after elections as hinted by speaker were she says they are losing their credibility. I think some are trying to save their positions by siding with Putin. All Russia's growth now, even at 2.3%, is entirely due to military sector, scientific sector and businesses involved heavily in import substitution. Barely anything from CB and Economic ministry. Only growth from their efforts are in banking sector.

So what are you guys suggesting?....That the Russian Gov is purposely sabotaging the economy?

They've signed up to the Eurasian integration project, they're buying large amounts of gold, they've even embraced a crypto-currency...we can argue about strategies or the pace of reforms and yes I agree that they have a lot of "dead liberal wood" that needs to be dropped but overall they look like they're going in the right direction

Cyberspec wrote:So what are you guys suggesting?....That the Russian Gov is purposely sabotaging the economy?

They've signed up to the Eurasian integration project, they're buying large amounts of gold, they've even embraced a crypto-currency...we can argue about strategies or the pace of reforms and yes I agree that they have a lot of "dead liberal wood" that needs to be dropped but overall they look like they're going in the right direction

You fail to understand Russian reality. Various 5th column elements exert vastly more influence on Russia than they do the
USA and NATO countries. The CBR, the Finance Ministry and other government parts are infiltrated with monetarists.
After all monetarists were in complete control during Yeltsin's regime and even had sway during Putin's first term in office.

It has been discussed numerous times in this part of the board that the CBR's high interest rate policy is

1) Not justified. The CBR acts as if Russia has inflationary instability when in fact Russia has none. Russia had 15% inflation
when it was growing at 8% per year and the money supply was increasing at 50% per year. The late 2014 ruble forex
induced inflation shock dissipated 100% by the end of March of 2015. If Russia had a problem with inflation, this shock would
have induced oscillations and the CPI would not have settled down just because the CBR jacked up the prime lending rate to
17%. Take a look at countries around the world which had problems fighting inflation. The central bank has never had total
control over inflation. The CPI is a multivariate dynamical problem and can't be tuned with the central bank rate. In
Canada, during the late 1970s, the federal government had to institute wage increase limits to fight inflation.

Also, the CBR pretends that all price increases after 1991 are purely inflationary. This is just retarded. How can some
token Soviet price transitioning to market prices be called inflation. Inflation is something that afflicts evolved capitalist
economies and not transition states. Many goods and services in Russia were not even priced at all. According the
stellar intellects at the CBR these goods and services must have experienced infinite inflation.

2) Damages the economy. Small business have said that 30% of the prices are due CBR's high rate policy. So the CBR
is suppressing the competitiveness of small business in Russia and stalling Russia's development. Businesses of all sizes
require routine borrowing for operations. This is not consumer splurging. This sound business practice. You can't collect
cash and wait to retool. By the time you get enough money the market will have moved on and you are going bankrupt.
A 10% prime rate, which becomes more like 14% for business borrowing, forces companies to look for loans outside of Russia.
This has two effects, first, to expose Russia to forex fluctuations and sanctions, and second, to suppress development of
banking in Russia since bank assets are loans and no loans means not assets.

I understand what you're saying...

Russia was (and still is to a large degree) part of the global monetarist system...and yes there is a class of people who benefit personally from that set up. All I'm saying is that they seem to moving in another direction...can it be done quicker?...maybe....but I don't think you can do it overnight without causing a shock!

Surely it's obvious that the strategic moves Russia is making are aimed at undermining the current global system

I think Putin is part of the problem along with CBR and other clown , Keeping free flow of capital and exchange rate just make the Thugs Steal Money from Russian Citizen and transfer it to Western Banks.

Putin knows this too well but is unwilling or unable to control this so he is part of the problem.

Why does Russia needs Free Floating Currency and Full Capital Account Convertibility , No control on either money coming in or going out beats me all the more when it is under full Western Sanctions , Plus CBR keeps buying US T bills and every month it keeps increasing the purchase.

This is Sabotage by them nothing short of that.

What do you make of Michael Pento Analysis

EIA: Russia Oil Market Overview

http://www.hellenicshippingnews.com/eia-russia-oil-market-overview/

I doubt CBR is willfully doing this. Intentionally causing trouble. Because if they were, they would be trying to improve relations with the west, not pushing and moving to alternative markets like Asia. Instead, its pure ignorance on their part from what they learned at the higher school of economics. The problem most people even here fail to get, its same thing in Russia, is that most are narrow minded. Most of Russia's economists have no idea of the economic factors outside of what they were taught. To make matters worst, they really lack any kind of alternative teachings to economics outside of what is available now, and especially, back during the 90's. So what they know, is all there is to them. If one recalls, back in the 80's, Canada was in same boat. US too. Were interest rates were as high as 18%. These same methods are practiced everywhere because everyone's economic system is tied back to the globalist economic structure. Even Iran, who has been in economic sanctions since 79, is having interest rates by their CB at 18% now. Only difference is, Islamic banking system that exists in Iran compliments the system by offering interest free loans. Something that doesn't exist in Russia yet, but German Gref from sberbank and CB was promoting for Russia, especially back in 2014. Even orthodox bank were pushing for same thing, and bringing their own as well. But of course, things went quiet.

Medvedev has been pushing for the increase in kickstarter like platforms for investments and borrowing for businesses. As KVS said, the interest rates has been bad for small business. But the CB doesn't give a crap about small business as to them, SB brings very little to revenue. So the interest rates is what they used as an example for lowering inflation. Although, its highly debateable if that even helps inflation and as per KVS reasoning, it isn't. But what it has done, and something that became obvious after some news clippings, was that the profits of banks have been massive this year. And now, savings are probably highest in recent Russian history. So what it has done, was rescue banks. And this is something that they were trying to do without getting mass protests. But the people are starting to become aware.

Already they are lowering interests. But it isn't enough. Like KVS said, it should be around 4% and that's it. But the CB is trying to flood the banking system with disposable cash and I think that's wrong. All the while Russian businesses are either getting Chinese loans, or outright relying on big business investment and development. There is of course a lot of favoritism in Russian loan industry, where major large companies in Russia get much lower interest rate loans from Russian banks, than small or medium businesses do, cause banks end up getting a decent cut out of it too.

So my conclusion is they aren't 5th columnist scums working for someone outside. But they are ending up doing the western favor because that is all they do know. As for buying t bonds, they are trying to push the Chinese method, and it isn't working in their favor.

Whether it is malice or ignorance, at the end of the day Russia is being f*cked over:



The video does not get into a lot of detail, but the main arguments are valid. The CBR is acting like a banana
republic colonial bank serving foreign interests. BTW, the Russian government does not run the CBR. Yeltsin
set the CBR to be like the US Fed.

However, I do not believe Russia needs to imitate the 0% policies of NATO countries. Russia does not need to
fake-up its GDP growth via a credit bubbles. This does not mean that Russia needs the criminal 10% rates of
the CBR. Right now the CPI in Russia is 3.6% but the prime interest rate set by the CBR is almost 3 times higher.

Well, in retrospect he is right in the sense its a foreign bank, since the head of the CB studied at higher school of economics, which is an IMF school, and the bank is more or less IMF controlled in aspect. People of it may be not, but bank itself is IMF. So is Chinese as well. Hence why IMF was so good at accepting Yuans as a reserve currency.

IMF is its own entity and they do what isn't in favor of US or UK, but in their own favor, which usually works in tandem with US and UK interests. At this point, IMF needs to be classified as foreign agent imo.

kvs wrote:Whether it is malice or ignorance, at the end of the day Russia is being f*cked over:



The video does not get into a lot of detail, but the main arguments are valid.   The CBR is acting like a banana
republic colonial bank serving foreign interests.   BTW, the Russian government does not run the CBR.   Yeltsin
set the CBR to be like the US Fed.  

However, I do not believe Russia needs to imitate the 0% policies of NATO countries.   Russia does not need to
fake-up its GDP growth via a credit bubbles.   This does not mean that Russia needs the criminal 10% rates of
the CBR.    Right now the CPI in Russia is 3.6% but the prime interest rate set by the CBR is almost 3 times higher.

The CBR rate is being cut at almost every CB meeting over the last few months.
Currently the interest rate stands at 8.25%. Of course, the average loan seeker will have to pay a little but more than that.
It is expected that with the low inflation prevailing in Russia, the rate will be cut further down.

Maybe the rate is not being cut fast enough for your or my liking. But doing it too quickly can create adverse effects.

The Russian GDP is currently (autumn 2017) growing probably by around 3%. I expect that with further gradual cuts of the rate, the GDP will grow by at least 4% in 2018.
The government and CBR people are being very conservative in their predictions.

The next CBR meeting is in mid December. Let's see what they will do this time.

TheArmenian wrote:

kvs wrote:Whether it is malice or ignorance, at the end of the day Russia is being f*cked over:



The video does not get into a lot of detail, but the main arguments are valid.   The CBR is acting like a banana
republic colonial bank serving foreign interests.   BTW, the Russian government does not run the CBR.   Yeltsin
set the CBR to be like the US Fed.  

However, I do not believe Russia needs to imitate the 0% policies of NATO countries.   Russia does not need to
fake-up its GDP growth via a credit bubbles.   This does not mean that Russia needs the criminal 10% rates of
the CBR.    Right now the CPI in Russia is 3.6% but the prime interest rate set by the CBR is almost 3 times higher.

The CBR rate is being cut at almost every CB meeting over the last few months.
Currently the interest rate stands at 8.25%. Of course, the average loan seeker will have to pay a little but more than that.
It is expected that with the low inflation prevailing in Russia, the rate will be cut further down.

Maybe the rate is not being cut fast enough for your or my liking. But doing it too quickly can create adverse effects.

The Russian GDP is currently (autumn 2017) growing probably by around 3%. I expect that with further gradual cuts of the rate, the GDP will grow by at least 4% in 2018.
The government and CBR people are being very conservative in their predictions.

The next CBR meeting is in mid December. Let's see what they will do this time.

I guess you were not paying attention over the last 17 years. The CBR prime rate was 8.5% when the CPI was 13%. After
Nabiullina and her Higher School of Economics compardors took over they inverted the CBR rate policy. You are going to have to do
a vast amount better than fobbing me off as merely "not liking" the CBR policy. Go on, justify why 8.25% is justified now when
inflation is 3.6%. Why is the rate not less than 3.6% as it was before. During the previous CBR policy of the 2000s and early
2010s, Russia saw GDP growth rates over 7%.

BTW, only clowns would credit the current CPI in Russia to Nabiullina. The CPI downward trend has been evident over the last
10 years at least and predates Nabiullina.

Just gotta love internet politicians who ignore 100% what people write in their posts and spew some drivel agenda. To repeat,
there is no inflationary instability in Russia because the massive inflation spike triggered by the late 2014 forex drop (thanks
to Nabiullina, BTW) completely dissipated in 5 months. A forced dissipate response pattern is not the same thing
as an oscillatory or trending pattern. Only the latter two patterns speak to inflationary instability.

So, cranking down the current prime rate (BTW, consumers and businesses do not pay 8.25%, they pay closer to 11%)
to 4% is mandatory and Nabiullina's 5 year plan or whatever BS she is following is criminal.

Cyberspec wrote:I understand what you're saying...

Russia was (and still is to a large degree) part of the global monetarist system...and yes there is a class of people who benefit personally from that set up. All I'm saying is that they seem to moving in another direction...can it be done quicker?...maybe....but I don't think you can do it overnight without causing a shock!

Surely it's obvious that the strategic moves Russia is making are aimed at undermining the current global system

+

TheArmenian wrote:

The CBR rate is being cut at almost every CB meeting over the last few months.
Currently the interest rate stands at 8.25%. Of course, the average loan seeker will have to pay a little but more than that.
It is expected that with the low inflation prevailing in Russia, the rate will be cut further down.

Maybe the rate is not being cut fast enough for your or my liking. But doing it too quickly can create adverse effects.

The Russian GDP is currently (autumn 2017) growing probably by around 3%. I expect that with further gradual cuts of the rate, the GDP will grow by at least 4% in 2018.
The government and CBR people are being very conservative in their predictions.

The next CBR meeting is in mid December. Let's see what they will do this time.

I agree with you. Otherwise we got to a strange confusion that Uncle Vova wants to destroy Russian economy...Vova took course for stability first. So people overnight dfo not wake up with all savings gone or currency reserves of CBR run down to 0. Then enough to ask kindly Russian companies to give back immediately loans back and you have default.


TYes Glaziyev is correct that this can be improved but look like it was with bribery in govt agencies...slowly but surely.  Then replacing governors. Then sealing banking system. Look that many times less capital outflows than 3 years ago...


Nabiulina wants to lower interest rate to about 6% what is close to Chinese one when China was growing 11% pa. Am I correct?


BTW Glazyiev is still there this means that for some reason Putin keeps him as an adviser. Seems that time didn't come  yet.

kvs wrote:

TheArmenian wrote:

The CBR rate is being cut at almost every CB meeting over the last few months.
Currently the interest rate stands at 8.25%. Of course, the average loan seeker will have to pay a little but more than that.
It is expected that with the low inflation prevailing in Russia, the rate will be cut further down.

Maybe the rate is not being cut fast enough for your or my liking. But doing it too quickly can create adverse effects.

The Russian GDP is currently (autumn 2017) growing probably by around 3%. I expect that with further gradual cuts of the rate, the GDP will grow by at least 4% in 2018.
The government and CBR people are being very conservative in their predictions.

The next CBR meeting is in mid December. Let's see what they will do this time.

I guess you were not paying attention over the last 17 years.    The CBR prime rate was 8.5% when the CPI was 13%.   After
Nabiullina and her Higher School of Economics compardors took over they inverted the CBR rate policy.    You are going to have to do
a vast amount better than fobbing me off as merely "not liking" the CBR policy.   Go on, justify why 8.25% is justified now when
inflation is 3.6%.   Why is the rate not less than 3.6% as it was before.   During the previous CBR policy of the 2000s and early
2010s, Russia saw GDP growth rates over 7%.

 

+

Austin wrote:I think Putin is part of the problem along with CBR and other clown , Keeping free flow of capital and exchange rate just make the Thugs Steal Money from Russian Citizen and transfer it to Western Banks.

Putin knows this too well but is unwilling or unable to control this  so he is part of the problem.

Why does Russia needs Free Floating Currency and Full Capital Account Convertibility , No control on either money coming in or going out beats me all the more when it is under full Western Sanctions , Plus CBR keeps buying US T bills and every month it keeps increasing the purchase.

This is Sabotage by them nothing short of that.

No Sir, current international relations you cannot compare with hat was 2004-2008 vand 2008-2014.  First of all - then Russia had to stabilize social sphere and rebuild military. Weak military = Libya orc in European case Yugoslavia. Economy is never in space.

BTW growth of GDP depends of many factor including base. Adding 1 to 2 gives you 50% growth, Adding 2 to 10 you get 20% only...The way fo growth in 000s cannot be repeated with current infrastructure,governance and leaking financial system. All fo that is gradually addressed. am I happy with pace? nope but also I do not have responsibility and data as Putin has.



in 2014 when Russian economy started to develop US hit t destroy it and force Vova to surrender. Or go mad and attack Ukraine. Russia was NOT ready for cutting of the world. Was slowly building own payment system, now will be connected with Chinese one. Russia is continuously buying gold....


Now there is happening all import substitution, investments in high tech, sealing banking systems and changing of governance both in economy and in politics. I eblieve that thsi sealing system is to allos THEN to pour more money to economy.


As for debt/inflation/CPI - then Russia was subsiding with oil revenue social and military spheres. Now there is no such conditions. You cannot live above your means not having or forcing other counties to support you. Russian CBR is very conservative for some reason. Maybe risk of shocks (taking into account geopolitics + intelligence reports) that this way was chosen by Putin. Do you really think Putin would let Nabiulina to go against him in long term?

Peter Schiff // The bubble now is housing, stock market & bond bubble combined

Well if CBR is not sabotaging buying more US T Bills every month then what it is.

The Gold they buy is half of value then the T bills they hold.

Why would any one buy T Bills from a country who is expelicity hostile and has sanctioned is beyond any ones bet.

Why cant they buy more IMF SDR or even Euro Bonds or Chinese Bonds beats me , If this is not sabotage then what it is , Today T-Bills Value in Russian Forex is $105 and it has been steadily rising , why subsidise those Idiots with hard earned Russian Money when so many options are available to CBR ?

Austin wrote:Well if CBR is not sabotaging buying more US T Bills every month then what it is.

The Gold they buy is half of value then the T bills they hold.

Why would any one buy T Bills from a country who is expelicity hostile and has sanctioned is beyond any ones bet.

Why cant they buy more IMF SDR or even Euro Bonds or Chinese Bonds beats me , If this is not sabotage then what it is , Today T-Bills Value in Russian Forex is $105 and it has been steadily rising , why subsidise those Idiots with hard earned Russian Money when so many options are available to CBR ?

US currency we want or not is reserve currency t the whole world. In order provide banks with currency liquidity CBR has to pile up USD. Russia's US denominated debt is decreasing but still high. I think CBR can protect economy form sudden blows of speculators. IMF is based and directed by whom? US, Euro has its part in reserves but is not main reserve currency yet. Neither Yuan. We like this or not.

BTW Yunan was sill recently pegged to USD too.

GunshipDemocracy wrote:

Austin wrote:Well if CBR is not sabotaging buying more US T Bills every month then what it is.

The Gold they buy is half of value then the T bills they hold.

Why would any one buy T Bills from a country who is expelicity hostile and has sanctioned is beyond any ones bet.

Why cant they buy more IMF SDR or even Euro Bonds or Chinese Bonds beats me , If this is not sabotage then what it is , Today T-Bills Value in Russian Forex is $105 and it has been steadily rising , why subsidise those Idiots with hard earned Russian Money when so many options are available to CBR ?

US currency we want or not is reserve currency t the whole world. In order provide banks with currency liquidity CBR has to pile up USD. Russia's US denominated debt is decreasing but still high. I think CBR can protect economy form sudden blows of speculators. IMF is based and directed by whom? US, Euro has its part in reserves but is not main reserve currency yet. Neither Yuan. We like this or not.

BTW Yunan was sill recently pegged to USD too.

If you invest in IMF SDR you still have some flexibility as IMF is based on Basket of Currency and not just USD.

If they invest directly in USD then you are dependent on Whimps and Fancies of US Congress or White House both are hostile and can freeze it over night.

If Russian Companies needs US Currency they can keep bare minimum for transactional purpose and not keep buying US T bills and keep risking more and more.

You can still transact in Euro and Russian has leverage against Euro in terms of energy what is leverage Russia has against US pretty much nothing short of war.

China and US has a MAD on Economy , So investing in Yuan is a much safer bet even if its pegged against USD , Yuan has got Reserve Status now and with China you can still trade and devleverage the risk more so with PEtro Yuan Coming.

Bottom Line is CBR is Screwing Russia by investing in more T Bills when other options are available. It should have minimum exposure to T Bills in worst case.

A longish article by A Kudrin

"Budget maneuver and restructuring of the Russian economy"

https://akudrin.ru/news/statya-v-zhurnale-voprosy-ekonomiki-byudzhetnyy-manevr-i-strukturnaya-perestroyka-rossiyskoy-ekonomiki

Austin wrote:

If you invest in IMF SDR you still have some flexibility as IMF is based on Basket of Currency and not just USD.

If they invest directly in USD then you are dependent on Whimps and Fancies of US Congress or White House both are hostile and can freeze it over night.

If Russian Companies needs US Currency they can keep bare minimum for transactional purpose and not keep buying US T bills and keep risking more and more.

You can still transact in Euro and Russian has leverage against Euro in terms of energy what is leverage Russia has against US pretty much nothing short of war.

China and US has a MAD on Economy , So investing in Yuan is a much safer bet even if its pegged against USD , Yuan has got Reserve Status now and with China you can still trade and devleverage the risk more so with  PEtro Yuan Coming.

Bottom Line is CBR is Screwing Russia by investing in more T Bills when other options are available. It should have minimum exposure to T Bills in worst case.

Then can reach the only one conclusion  Uncle Vova is harming economy.  Although I am no fan of  liberals  I see it this way.


1) Putin has chosen low risk approach. Although all theoretically possible options you have proposed work nobody tested this before and in current  geopolitical situation this might mean suicide of Russian economy and people's faith in rebuilding of country.

Please note he has news from analytical centers behind closed doors,  intelligence, industrialists.  On level we never can reach or even know.


2) what liberals do?
Sealing/healing  banking system
replacing external borrowing with internal one
building new financial  instruments (to invest in economy in Russia not outside) - you need to attract money after you release funds from banks right? after interest rate goes down.
extending pension age

All this is needed although unpopular thus always after elections then new president (accidentally Putin)  can be replaced.


3) China
Bank of China has invested ~ 30 times more in US papers then Russia where  PPP economy ratio is 5,5:1
Chinese GDP grew  7-9% pa when interest rate was like 6,5%

Do ypu think that Chinese CB is working for US?

It is obvious that China has a special relationship with the US and its vassals. That is why China does not get
the 24/7 hate propaganda campaign that Russia gets. China has received vast amounts of direct investment
from Uncle Scumbag and his minions so the $1 trillion in treasury bills owned by China are a kind of quid pro quo
and at such magnitudes give China some leverage.

In other words, comparing China and Russia on the treasury bill issue does not absolve the CBR from its guilt.

kvs wrote:It is obvious that China has a special relationship with the US and its vassals.   That is why China does not get
the 24/7 hate propaganda campaign that Russia gets.    China has received vast amounts of direct investment
from Uncle Scumbag and his minions so the $1 trillion in treasury bills owned by China are a kind of quid pro quo
and at such magnitudes give China some leverage.

In other words, comparing China and Russia on the treasury bill issue does not absolve the CBR from its guilt.

China isn't exactly loved in the MSM...but yeah due to it's economic importance to the empire the media attacks are limited in comparison to Russia. Also China hasn't yet directly clashed with any of the US vassals militarily...and they probably won't until they feel strong enough

Russia Buying Gold at Record Pace, Unlikely to Lose Momentum

https://sputniknews.com/business/201711101058993652-russia-gold-reserves-sanctions-risks/

Cyberspec wrote:

kvs wrote:It is obvious that China has a special relationship with the US and its vassals.   That is why China does not get
the 24/7 hate propaganda campaign that Russia gets.    China has received vast amounts of direct investment
from Uncle Scumbag and his minions so the $1 trillion in treasury bills owned by China are a kind of quid pro quo
and at such magnitudes give China some leverage.

In other words, comparing China and Russia on the treasury bill issue does not absolve the CBR from its guilt.

China isn't exactly loved in the MSM...but yeah due to it's economic importance to the empire the media attacks are limited in comparison to Russia. Also China hasn't yet directly clashed with any of the US vassals militarily...and they probably won't until they feel strong enough

@kvs: so what would you suggest for  CBR to do? not to rise % then poor people would loose their savings and rich would transfer all their funds abroad via leaky banking system?

@Cyberspec: Somebody here called US-China relations as economical MAD.


As for  China - Russia - US. There is no way you can stop Us form a dominate position in economy in current world order. Simple because US is setting rules China's and Russia's most important task now is to build a parallel economical order. I believe this one will be yuan or yuan /gold based. Thai is one of reasons China so much wants to biuld internal demand based economy.  The gradual move form dollar can start. Earlier is like shooting to own foot or knee.



Kostin: The Bank of Russia will reduce the key stake by the end of the year


"I think that they (the Central Bank of the Russian Federation - TASS comment) should reduce until the new year, it's hard to say how much." The potential is big. "If inflation is less than 3%, the rate may well be reduced to 6% .But the Central Bank also has its reasons, when it so the decline will go on a quarter or a maximum of half, "- said Costin.

Подробнее на ТАСС:
http://tass.ru/ekonomika/4719206