Russian Economy General News: #9

Glazyev was kicked according to sll knowing bloggers and such a bummer now. Putin doesnt read blogs or what?

Glazyev retained the post of presidential adviser

MOSCOW, June 13 (RIA Novosti). Russian President Vladimir Putin through his decree reassigned Sergei Glazyev to the post of presidential adviser.

"To appoint Sergei Yuryevich Glazyev as an adviser to the president of the Russian Federation," the presidential decree posted on the Kremlin website says .
The decree comes into force from the date of its signing.

https://ria.ru/politics/20180613/1522650163.html

MOSCOW, June 14. /TASS/. The Russian government approved on Thursday a bill on gradual increase of the retirement age to 65 years for men and 63 years for women, Presidential aide Andrey Belousov said on Thursday after the government meeting.

More:
http://tass.com/economy/1009504

http://xn--h1akeme.ru-an.info/новости/центральный-банк-рф-отказался-от-доллара-и-это-не-шутки-путин-нанёс-очередной-удар-по-сша/

The Central Bank of Russia refused the dollar and it's not a joke: Putin struck another blow to the United States

The head of the Central Bank Elvira Nabiullina made a resonant statement: the boycotting of the dollar not only for the Russian economy, but also for the whole world.

"The Russian currency should replace the dollar in the assets and liabilities of Russian banks. The goal is to quickly and without losses escape from the dollar system in the calculations, to minimize the impact of the US currency on the domestic economy. "

It was supported by the head of VTB Andrey Kostin , who also called for conducting all calculations in national currencies: in any, except the American ruble.

"The main task - to get away from the dollar in the calculations between countries. This struggle must reach the international level. "

There was also a warning to bankers and large businessmen that it is very risky to store and conduct settlements in foreign currency.

Thus, the way out of the dollar system, identified by Vladimir Putin , is implemented not only in promises, but also in concrete actions. Russia calls on countries to switch to other currencies.

High confidence: President Putin appointed Glazyev as his advisor

http://www.politicsglobal.ru/archives/34516?utm_source=push-notification&utm_medium=push-world&utm_campaign=push

GunshipDemocracy wrote:
no Hungary nor  Poland. You missed the point both countries have more less successful economic situation (Polish GDP is like +4,5%; 1,6% inflation this year, GDP PPP per capita 26000 $).
Venezuela: inflation 25000 %, GDP -10% (or -15% IMF) , GDP PPP 3,500$ (from 15,500$ in 2014)

now you see the difference?

Oh my naive sweet girl perhaps you should take a gander at Venezuelan growth before 2013 crisis. They too thought increasing living standard rendered them immune form US subversion. Then uncle Sam came calling with full arsenal of Sorosh, CIA et al. and now they know better. Also sweet how you think 4,5% growth is something special, or that Soros, that in the 80s took shit on British pound, and Asian tigers in the 90s, would have any problem wrecking Polan's economy any time he wished to do so    .

BTW perhaps you shuld drop your eyes at Poladn's interest rates:
https://tradingeconomics.com/poland/interest-rate

Imagen that 1,5%! Wonder how you are not dropping in to apoplectic hysteric how Poland is about to hit hyperinflation with such low interest rates! You certainly expect it in case of Russia. But then again you are same girl that does not know what supply and demand is, and how they affect price, that thinks labour demand can grow under conditions of stagnant aggregate demand, does not know difference between male life expectancy and life expectancy, confuses targeted life expectancy with actual life expectancy, and has fallen for "Kudrin anti corruption hero and saviour of Russia" liberal propaganda in less the an month sense it starred.

ZoA wrote: Oh my naive sweet girl perhaps you should take a gander at Venezuelan growth before 2013 crisis.

so you are same naive girl as Manduro? how he can be such an idiot on president position?! the while economy is oil based and geopolitical he is a foe of USA. Printing empty money and buying arms is quickest down road to civil unrest. With Such policy Soros can have easy job. I respected Chavez very much. Same as commandante Fidel. Unfortunately Manduro was no goodto listen to economic advisers.

Also sweet how you think 4,5% growth is something special, or that Soros, that in the 80s took shit on British pound, and Asian tigers in the 90s, would have any problem wrecking Polan's economy any time he wished to do so    .

But Soros tries all the time since 2015 just police suppressed any "maidanlike" movements.

BTW perhaps you shuld drop your eyes at Poladn's interest rates: Imagen that 1,5%! Wonder how you are not dropping in to apoplectic hysteric how Poland is about to hit hyperinflation with such low interest
rates!

rates dropped as inflation was -1,6% but you know i\this? and now it is 1,5% after being stable . Polish economy is not under any sanctions, there is no mass flight "businessmen" to UK, banking system is much more sealed than in Russia andall in all - PLN was not devaluated against Euro x 2. Ah and deposit rates in Poland are like 0,5%

So yes in case of russia letting stream of money to economy when as in Russia there is noncompetitive economy with virtual lack of consumer products, under immense external pressure, leaking banking system and "sticky hands' " civil servants you get inflation and 10% goes to industry. Rest is stolen, transferred to off-shores or wasted.


Turkey
GDP Growth : 7,4 %5%
Base rate: key interest was 8% since 2014 and since 2018 17,75

India
GDP Growth: 7,7 %
Interest rate: 6,25%


so US ha their agents there right? oh I forgot Zimbabwe and Venezuela is printing empty money and not increasing retirement ages! you right girl only interest rat counts. nothing else matters ah and in USA rate hiked form 1,75 till 2% must be Us agents there.

The Central Bank retained the key rate at the level of 7.25% per annum

High inflation expectations fueled by fuel prices, real wage growth, the acceleration of individual lending, and a number of global factors, they expected, could persuade the Central Bank to keep it the same.

РИА Новости https://ria.ru/economy/20180615/1522784864.html

Austin wrote:

"The Russian currency should replace the dollar in the assets and liabilities of Russian banks. The goal is to quickly and without losses escape from the dollar system in the calculations, to minimize the impact of the US currency on the domestic economy. "

It was supported by the head of VTB Andrey Kostin , who also called for conducting all calculations in national currencies: in any, except the American ruble.

and

DAT is news  

BTW about Glazyev I was first one to report so  you dont check my posts thanks I love you too    

George1 wrote:

MOSCOW, June 14. /TASS/. The Russian government approved on Thursday a bill on gradual increase of the retirement age to 65 years for men and 63 years for women, .

again good news. First of all people cannot live half of life at expense of ever narrowing young population. Second who wants to retire at 55 or 60?! There is yet another issue here to address: retraining and helping with employment 50+ people.      [/quote]

Pushkov: Russia reduces financial dependence on the US

Russia's elimination of half of the US government debt securities is a logical step to reduce Moscow's financial dependence on Washington. This opinion was expressed in Twitter by a member of the Federation Council Alexei Pushkov

"Russia reduces financial dependence on the US: in April,

it reduced contributions to US government securities by 47.5 billion

, almost 50 percent, a logical solution," Pushkov wrote.

.

Алексей Пушков

@Alexey_Pushkov
Россия снижает финансовую зависимость от США: в апреле сократила вклады в госбумаги США на 47,5 млрд. - почти на 50 проц. Логичное решение.

23:10 - 15 июн. 2018 г.

https://rg.ru/2018/06/16/pushkov-rossiia-snizhaet-finansovuiu-zavisimost-ot-ssha.html

I was the one proposing from past 2 years that CBR should all the US T bills and just keep 20-25 bare amount needed for financial transaction.

Glad they have reduced the T bills but they need to half it further.

I wonder what did CBR buy instead selling T Bills ?

Austin wrote:I was the one proposing from past 2 years that CBR should all the US T bills and just keep 20-25 bare amount needed for financial transaction.

and then you'd hurt Russian economy much worse then do any harm to US one? you know everything wait for the right moment.

I wonder what did CBR buy instead selling T Bills ?

Would prefer to hear gold and Yuan papers (perhaps Korean or Indian to)

GunshipDemocracy wrote:

ZoA wrote: Oh my naive sweet girl perhaps you should take a gander at Venezuelan growth before 2013 crisis.

so you are same naive girl as Manduro? how he can be such an idiot on president position?! the while economy is oil based and geopolitical he is a foe of USA. Printing empty money and buying arms is quickest down road to civil unrest. With Such policy Soros can have easy job. I respected Chavez very much. Same as commandante Fidel. Unfortunately Manduro was no goodto listen to economic advisers.

Ah my ignorant girl you are still think inflation is function only of money supply and hyperinflation is triggered by printing money, not by derivative based financial attacks and speculation? I wonder how you would explain 2009 in Russia that had M2 money supply drop abut 20% while inflation was over 10%, or last 5 years in Russia where M2 has grown constantly while inflation was randomly oscillating between 2% and 16%. I guess we can add that to list of basic concepts you cant grasp like supply and demand, price, life expectancy et al.

Also funny you think importing arms is road to civil unrest as Poland is actually spending relatively large amounts of money mostly on buying US weapons. In fact Poland , as a share of GDP, spends nearly double of Venezuela on it's army. I guess according to your reasoning civil unrest in Poland is imminent. Or is it just another manifestation of your poor judgement? I guess we can add it to manifest of your ignorance: does not know what supply and demand is, does not know what aggregate demand is, do not now what generates employment demand, does not know what life expectancy is, does not know what generates inflation and hyperinflation, and thinks military imports trigger civil unrest.

But Soros tries all the time since 2015 Very Happy Very Happy Very Happy just police suppressed any "maidanlike" movements.

Police is easily bribed to stand aside when the time comes.

Turkey
GDP Growth : 7,4 %5%
Base rate: key interest was 8% since 2014 and since 2018 17,75

Turkey is  from early this year  target of ongoing financial attack exactly of the type i'm talking abut, but you are to ingnorat to even know abut that. They jacked up interest rates as ineffective way of defending ageist such attack because they lack proper capital control mechanisms.  

https://www.reuters.com/article/uk-turkey-lira/as-lira-hits-record-lows-turkeys-erdogan-cites-attack-on-economy-idUSKBN1HI159

Could happen to Poland any time US oligarchs decide they want to do it.

football effect

Russia and Saudi Arabia will support the extension of the OPEC agreement + perpetually

https://ria.ru/economy/20180616/1522860930.html

ZoA wrote:

Ah my ignorant girl you are still think inflation is function only of money supply and hyperinflation is triggered by printing money, not by derivative based financial attacks and speculation?

so now dear expert girl there will be no attacks? right?

I wonder how you would explain 2009 in Russia that had M2 money supply drop abut 20% while inflation was over 10%, or last 5 years in Russia where M2 has grown constantly while inflation was randomly oscillating between 2% and 16%. I guess we can add that to list of basic concepts you cant grasp like supply and demand, price, life expectancy et al.

and what was fueling that growth? consumer goodies? hi tech? productivity growth? right? cool. Or you again have some blogger theories not proven in practice?

I guess according to your reasoning civil unrest in Poland is imminent. Or is it just another manifestation of your poor judgement?

you hav cognitive problems or what? Poland is not enemy of USA. Poland's economy is not based on oil export. Cars, engines, electronics. household goodies, engines, processed and raw food. What precisely exports Venezuela beside oil? How many billions $ s spent on R&D ?

https://financialobserver.eu/poland/the-best-polish-exports-goods/
in 2016 not it only grew +

Oil -91 % of all exports. Right but you still domnt see anything abnormal here?
http://www.worldstopexports.com/venezuelas-top-10-exports/

But Soros tries all the time since 2015 Very Happy Very Happy Very Happy just police suppressed any "maidanlike" movements.

Police is easily bribed to stand aside when the time comes.
[/quote]

history shows NEVER in strong states. Hungary anybody stand on Soros side? huh?

Turkey
GDP Growth : 7,4 %5%
Base rate: key interest was 8% since 2014 and since 2018 17,75

Turkey is  from early this year  target of ongoing financial attack exactly of the type i'm talking abut, but you are to ingnorat to even know abut that. They jacked up interest rates as ineffective way of defending ageist such attack because they lack proper capital control mechanisms.  

again you cannot read with understanding? they HAD many years 8% so higher than Russia and growth 7,5%. What you cannot explain with you never applier in practice theories      

Could happen to Poland any time US oligarchs decide they want to do it.

Poland is neither  Ukraine nor Yugoslavia. State is much stronger, both economically and internally.. And US cannot do much because main market is EU. Us is not even in 10 top trading partners AFAIK.  Not Venezuela  mate.

Poland is a German colony. Russia pulled itself up by the bootstraps without such investment. And Poland was lucky during the
1990s that it made the proper financial decisions, such as not getting into an IMF debt toilet. Russia is still overcoming the
"golden years" (according to liberast Navalny) of Yeltsin.

I rather like the direction Russia is going economically.

High manufacturing base but growing internal demand.

miketheterrible wrote:I rather like the direction Russia is going economically.

High manufacturing base but growing internal demand.

Given historical reality, Russia is on a roll. The degree of achievement can be gauged by the intensity of the
screeching from the west. From both the left and the right.

Russians actually see substantial improvements in their lives. I know this from contact with my relatives
living "in the provinces". All the western bitching about growing inequality is utter BS. It is irrelevant if
the top 1% are getting rich faster as long as the bottom 99% have increasing standard of living. Unlike
in the west, Russia is not offshoring its good jobs and is actually consolidating a strong manufacturing
base to ensure its security. This creates conditions for growing internal demand which drives more
economic development.

It was the same in Amiland between 1880 and 1960. The 1% accumulated unbelievable wealth but the rest of the people was getting richer, too. And the 1% paid their fair share of taxes (90% under Eisenhower). In the 80´s they decided to pay no more taxes and the rich people in Russia in the 90´s followed their example, but the normal people in Russia got poorer and poorer. VVP changed that. Now the 1% pais taxes (maybe not enough) and the wealth is distributed better. Far from optimal but better than in the west.

Hole wrote:It was the same in Amiland between 1880 and 1960. The 1% accumulated unbelievable wealth but the rest of the people was getting richer, too. And the 1% paid their fair share of taxes (90% under Eisenhower). In the 80´s they decided to pay no more taxes and the rich people in Russia in the 90´s followed their example, but the normal people in Russia got poorer and poorer. VVP changed that. Now the 1% pais taxes (maybe not enough) and the wealth is distributed better. Far from optimal but better than in the west.

This transition in behaviour of the top 1% resembles the collapse of the communism in the USSR. It was initiated within the
Communist Party since the elite got too rotten and wanted to live it up like the 1% in the west. I suppose at some stage
the Russian 1% will try to pull such a coup, but I suspect that it will not be anytime soon. One of the reasons Putin is
demonized so much is that he imposed the will of the government on the 1%. In the west, it is the 1% that impose its
will on the "elected" governments.

Some things I learned is that the Rich in Russia are attempting to create a wealth structure in Russia to continue to be rich without the west. That is stuff like private schools, investing in private Banks, etc etc.

Even under heavy sanctions, rich can obtain whatever they want in the current capitalistic society.

https://tomluongo.me/2018/06/16/trump-attacks-aluminum-russia-debt/

Mr. Trump Attacks Aluminum, Russia Attacks the Debt

Putin is not the soft poodle of the west as some make him out to be.

Golikova: the government is preparing measures to "whitewash" the economy

MAGADAN, June 17th. / TASS /. The government is preparing measures to evade salaries "in an envelope," plans to submit them by mid-2019. This was in an interview with the program "Week Results" on NTV on Sunday, said Deputy Prime Minister Tatyana Golikova.

"I think that in the segment of 2018 - the first half of 2019 we will offer a mechanism for" whitewashing "salaries for those who are currently in the gray economy," Golikova said.

MAGADAN, June 17th. / TASS /. The government is preparing measures to evade salaries "in an envelope," plans to submit them by mid-2019. This was in an interview with the program "Week Results" on NTV on Sunday, said Deputy Prime Minister Tatyana Golikova.

"I think that in the segment of 2018 - the first half of 2019 we will offer a mechanism for" whitewashing "salaries for those who are currently in the gray economy," Golikova said.

The Vice Prime Minister also recalled that the government decided to abandon the program "22/22" (an increase in VAT from 18% to 22%, while reducing insurance premiums from 36% to 22%, - TASS comment), which was proposed by the Ministry of Finance in the measures to take business out of the shadows.

"We gave up 22% of VAT precisely because it has a fairly serious impact on inflation," she explained.

In late 2017, Finance Minister Anton Siluanov noted that "from quarter to one-third of wages" employers in Russia are paid on "gray" schemes.

Earlier, the Ministry of Finance estimated the "gray" payroll in Russia, from which taxes are not paid or are not paid in full, to 10 trillion rubles a year.

Подробнее на ТАСС:
http://tass.ru/ekonomika/5298757

kvs wrote:Poland is a German colony.

you just envy us, we got "bezviz and Europe "

Russia is still overcoming the"golden years" (according to liberast Navalny) of Yeltsin.

Khazin says that during Gorbi term there was agreed - Russia is not going to have interests outside CIS and NATO wont get closer and US leave Russia than alone to rule own sphere of influence. Of course none of promises were kept by cough cough partners.

Russia in Yeltsin times was on verge of disintegration. Chechen war, Tatarstan got president (?!!!) , "Siberian Republic ". Russian nuclear forces were ceased to effectively exist around 2005.

Suddenly error in matrix. Agent Putin.

The timeline gets more interesting. It is highly nonlinear too. First military stability (Chechnya and Dagestan first).
Then accumulating fo petrodollars and building strong resource base.
Then gradual rearmament. Firsts things first - strategic nuclear forces. After 2008 there was started reform of army.
Then in 2011 rearmament programme SAP . By looking at what is on intl arena today, his intel data was really good.

IMHO had Putin changed economic policy like now? Crimea would have happened in 2004 not 2014 with much worse result for Russia.


Once army and social stability is secured it cmes time for the next step. Development of technology and building stable democratic mechanisms.
Yes those are most important Putin's tasks now: Currently there is nobody in public space to replace him right away. He might be till 6 or 12 years and then what?

He needs to create mechanism for continuity of power that kind of GOrbi never ever takes his place. Most challenging taks IMHO.

kvs wrote:
 I suppose at some stage the Russian 1% will try to pull such a coup, but I suspect that it will not be anytime soon.    One of the reasons Putin is
demonized so much is that he imposed the will of the government on the 1%.   In the west, it is the 1% that impose its
will on the "elected" governments.

Lest say not govt but gosudarstvenniki overpowered oligarchs. Putin in clever way build first loyal forces to support him (otherwise he'd be second Allende) then build strong military to protect form democtarization. Then started to clean inside

IMHO Gosudarstvennik can be also an oligarch. Although he is Russia oriented and not internationalist.




@Hole - paraphrasing Brecht: Since Germans disapproved immigration policy but could not elect a new govt, old govt decided to elect new Germans

kvs wrote:https://tomluongo.me/2018/06/16/trump-attacks-aluminum-russia-debt/

Mr. Trump Attacks Aluminum, Russia Attacks the Debt

Putin is not the soft poodle of the west as some make him out to be.

Same article, pretty good thread on the subject.

https://www.zerohedge.com/news/2018-06-16/mr-trump-attacks-aluminum-russia-attacks-debt

JohninMK wrote:

Same article, pretty good thread on the subject.

https://www.zerohedge.com/news/2018-06-16/mr-trump-attacks-aluminum-russia-attacks-debt

I like that especially

Russia just sold Treasuries into the market, raised dollars and swapped out Rusal’s bonds, holding them as collateral for a Repo.

+

But, don’t think this isn’t working to Putin’s advantage as Deripaska is not one of his supposed favored oligarchs. This report from Bloomberg spelled out the situation well back in April.

As for Deripaska, he will get help from the Russian government again. {which he did, see above} Rusal has warned that the sanctions might mean a default on a portion of its debt. That’s most likely to happen to its more than $1 billion in dollar-denominated debt. But, as ever, the company’s biggest creditors are Russian state banks, and the Kremlin will keep Rusal solvent one way or another as it reorients toward Asian markets. It won’t be a huge headache for Putin: He’s seen worse, including with Rusal during the financial crisis.

And that’s the most important part.

Once the current positions are wound down and the aluminum market adjusts to the new reality of U.S. hyper-aggression to restart an industry we really don’t need (smelting aluminum? really?) just to satisfy Trump’s outdated views on trade (which they are MAGA-pedes) Rusal’s business will not be so U.S.-centric.

And therefore the world will become less exposed, over time, to the depredations of U.S. financial attack. I told you before that China has responded to this by issuing new yuan-denominated futures contracts for industrial metals.

THE STRENGTH AND WEAKNESS OF THE STRATEGY OF GLAZYEV

Behind all the concepts of the economy are the conflicts of key social groups that can make it impossible to implement the best concept . And it's good if the state does not collapse.

Suppose we started the implementation of one of the points of the Glazyev program: the unbundling of money issue from foreign exchange reserves. What conflicts will Russia have in this case with counterparty banks in settling for oil and gas? For the export of weapons and grain and the import of medicines and chicken eggs, which, as we know, we do not have to produce a new number of birds? What are the threats and risks? How do these risks multiply and manifest themselves in related spheres of life? What will pull from the sleeping conflicts? What are the resources to extinguish these conflicts? How much time will it take? What is the probability of a good, medium and bad scenario? What is the weight of external factors? How do they affect the internal? How will they break up each other? How will they extinguish each other and where? And due to what?

http://www.iarex.ru/articles/58348.html?utm_source=finobzor.ru

Very good red about Glazyev proposals. To all drama queens :
1) Article says reforms have logic but just time is not yet there
2) for some reason Glazyev kept hi post of presidential adviser on economy
3) text is translated by IAR and translation sucks sometimes :D:D