Russian Economy General News: #8

miketheterrible wrote:Maybe Putin is allowing this to be a "in your face" kind of thing for libtards then. The $100B, while useful, is still worth losing if it helps put another nail in the liberal coffins.

But nothing done just yet.

Austin wrote:Finance Minister Reveals Plan B If Western Investors Quit Russian Bonds

https://sputniknews.com/business/201803301063066750-russian-investors-uk-stock-market/

ZoA wrote:

Austin wrote:Finance Minister Reveals Plan B If Western Investors Quit Russian Bonds

https://sputniknews.com/business/201803301063066750-russian-investors-uk-stock-market/

Well that's a weak sauce response mostly composed of "we'll manage without you", instead of executing proper retaliation by seizing UK public and private property in Russia, excluding UK businesses from Russian markets and so on. As I said, key institutions of Russian government are controlled by treasonous spineless appeasers.

This is also reason US and UK are so aggressive against Russia, they know Russian government is full of pushovers that are unlikely to retaliate even when it would be easy to do so.

Austin wrote:

miketheterrible wrote:Maybe Putin is allowing this to be a "in your face" kind of thing for libtards then. The $100B, while useful, is still worth losing if it helps put another nail in the liberal coffins.

But nothing done just yet.

That is not Putins father in law money to gamble it away , Thats Russian peoples money and $100 billion would be better spend for dozens of thing rather than get confiscated.

IF US does that then He should be Kicked out of power for negligence

miketheterrible wrote:
Barring foreigners from doing business in Russia because their government are retards, is not a good response. Especially for Russia's investment portfolio. While Russian bonds are desireable in Asia, Europe is still largest buyer of it.  If they all of a sudden bar UK of it as response to UK barring sale of Russian bonds in UK, then other investors would be turned off.

You are aware that not everyone is hostile to Russia?  Burning bridges isn't a good strategy, something you seems to not understand.

Plus on top of that, it's UK money going to Russia. So let them invest. It may be hard for them to collect the money and it would be the UK governments fault, not Russia. It's not like UK bonds are a big collector in Moscow.

Responses would be if London decided to not allow Russian civil jets use British airspace or airports, and Russia responded in kind.  Not UK bans sale of Russian bonds in London, Russia responds by not letting all Brits invest in Russia. That's just fucking stupid.

Putin needs to assert his electoral authority and appoint a new and hard line Prime Minister. Medvedev can go and join CATO or some other think tank.

It looks like Putin's adviser Sergei Glazyev leaves no plans to enter the new government. In any case, his attacks on Elvira Nabiullina and the Central Bank are getting more bitter every day. A new statement appeared, in which the Central Bank is actually accused of serving American interests:

"The Central Bank voluntarily and blindly follows the recommendations of the IMF, which are being developed in the interests of the global financial oligarchy." In fact, the Central Bank's policy for many years serves the interests of the external American-centric financial system to the detriment of Russia's interests. "[b]

[b]According to Glazyev, the policy of the Bank of Russia after 2010 has catastrophic consequences for the economy:

- Underproduction of products due to contraction of working capital lending due to the increase in interest rates in excess of the level of profitability of most industries is at least 15 trillion. rub.

- The destabilization of the ruble exchange rate and its extreme volatility, which put the ruble in the category of the most unreliable currencies and triggered capital flight of more than $ 250 billion.

- The fall in investment due to the destabilization of the ruble and an increase in interest rates is estimated at no less than 5 trillion. rub. of capital investments.

- 15% increase in the number of bankrupt enterprises to 37,000 due to deteriorating credit conditions.

- The losses of enterprises, the budget and individuals (over 7 million investors) due to the bankruptcy of commercial banks after the withdrawal of 317 licenses account for more than 3 trillion. rub.

- Undermining confidence in Russia as a locomotive of the Eurasian integration due to the instability of the ruble, which led to the dollarization of mutual trade in the EAES and buried our long-term work on giving it the status of a regional reserve currency ...

The opinion is important - given the fact that Glazyev is considered one of the main centers of influence of Putin's closest circle and it is between him and the well-known liberal economists that a choice will be made in determining the vector of future economic reforms.

Glazyev, a supporter of the socio-oriented economic model, consistently opposes Kudrin and his entourage, who are preparing a new version of shock therapy for the country. The future of the state depends on the one who wins in the hardware struggle: will the economy be put at the service of the people or become a hostage to the struggle between oligarchic and clerical clans.

Hole wrote:Since mid-2015 the ruble is the best currency out there. Very stable. The correction was necessary, before the ruble was to expensive.

There are two ways to achieve economic growth rates above 4%. The first - "add to it" 4.6 million employed and 40 trillion rubles. additional investments in fixed assets (beyond what is expected). The second option is to increase aggregate factor productivity (an indicator that takes into account the efficiency of labor, capital and technological progress, and the infrastructure and quality of market and regulatory institutions). This was reported by experts of the Center for Strategic Research (CSR) Alexei Kudrin in his report "The New Technological Revolution: Challenges and Opportunities for Russia" (available to RBC).

The preparation of proposals to be published in the next issue of the journal Voprosy ekonomiki was dealt with by the director of the Institute of Industrial Markets and Infrastructure of the Russian Academy of Sciences, Kudrin's adviser Georgy Idrisov, the vice president of the Center for Strategic Studies, Vladimir Knyaginin, Kudrin himself, Elena Rozhkova.

Stagnation contrary to rhetoric

Russia needs to increase labor productivity in order to eliminate the backlog from other countries, but so far "there is a low level of innovation potential, insufficiently high results of scientific and technological activity, modest results in the field of digitalization and platformization of the economy," the paper says. In the technological revolution, Russia is included with "delay", and its positions are still weak, despite the popularity of the modernization agenda. The contribution of aggregate factor productivity to GDP growth is "not large," the CSR believes.

The proposals of the CSR, which prepared the economic program for President Vladimir Putin, are divided into several blocks. First, modernization of traditional sectors - fuel and energy complex, agro-industrial complex, metallurgy, mining industry and others is necessary. To this end, the government could institutionalize new principles for assessing the development of technologies that will improve the quality of technological management. Since the state's share in the economy is high (46%, according to the calculations of the CSR), it is necessary to ensure in state-owned companies "the transition to advanced production technologies, digital and platform solutions, the release of new generations of products", and improve technological regulation.

More Risk

The second block is the expansion of the share of high-tech sectors from the current less than 1% of GDP to 10% in six years. The CSR proposes to "scale" the measures of the National Technological Initiative (state program to support promising industries). It is necessary to create "consortiums in the format of investment and technology partnerships" following the example of other countries - they "will fill the shortage of the cooperative culture" and expand the planning horizon, the CSR consider. The third block concerns digitization, which "is expressed not only in the replacement of analogue digital control systems, but also in the intellectualization of technological objects and systems." Digitalization should include, among other things, critical infrastructure sectors: health care, science, banks, fuel and energy complex (including the defense industry and nuclear energy), state administration.

The CSD also proposes to reorient development institutions from financing low-risk projects (mainly these are late stages of the investment cycle) to projects of the early stages, "which can become the basis for future technological breakthroughs." In addition, it is necessary to create new development institutions and finance, in particular, medium-sized businesses. The fifth block in the work of the CSR is the formation and preservation of a scientific base for which reform of the management of science is needed. Thus, experts consider it necessary to create a new federal body of executive power, which will deal with regulatory and legal regulation in higher education and science.

On the task to increase GDP per capita by 1.5 times Putin said in his message . While the growth rate in Russia is much lower than the world average - in 2017 GDP grew by 1.5%. World economic growth,according to the World Bank, was 3% (2.3% in developed countries and 4.3% in developing countries). In 2018, the World Bank expects world GDP growth of 3.1%, and the Russian - by 1.7% (Ministry of Economic Development is more positive, its forecast is 2.1%).