Russian Economy General News: #12

Mercouris is making the same point I have been making for a long time. The PPP normalization factor is skewed towards consumer
prices. It does not properly represent the full price structure of the Russian economy. So sectors like the MIC are grossly underestimated
by a factor of 2.5; the factor for the MIC is closer to 6. Also, we still have long term transients from 1990 related to lack of pricing
of certain activity. The Russian economy in physical terms is not mapped in fine granularity to monetary space. By contrast, everything
in the western developed world is saturated with money chasing. Corporations do not volunteer any effort, they contribute to charity
campaigns. In Russia companies still engage in social welfare to some extent as a legacy of the Soviet period.

The real estate sector mentioned by Mercouris is the same issue as the MIC. Prices have no similarity to western ones. The problem
with the PPP is that the methodolgy used to calculate it is deficient and makes it a glorified Big Mac index. The economy cannot be
mapped to a burger.

This is good news for Russia, with the US slowing destroying itself and with putting idiots in charge, energy prices are going skyrocket.

Boeing and VSMPO signed a memorandum of understanding at Dubai. Russia (VSMPO) will remain the largest supplier of titanium alloy products for Boeing's commercial aircraft. They agreed under the terms of the MOU:

*Increase utilization of their Russia-based Ural Boeing Manufacturing (UBM) joint venture;
*Increase R&D investment and continue to develop new titanium alloys and technologies;
*Explore new opportunities to expand VSMPO-AVISMA's role producing titanium parts and components beyond raw material or forging, for current and future Boeing commercial airplanes.

https://www.prnewswire.com/news-releases/boeing-and-vsmpo-avisma-agree-on-titanium-supplies-and-technology-collaboration-for-years-to-come-301423849.html

https://www.flightglobal.com/dubai-2021/boeing-seals-long-term-titanium-supply-pact-with-russias-vsmpo/146410.article

So VMPSO will be undertaking higher value added activities going into the future.

Those sanctions work really well.

Shouldn't Russia demand that Boeing moves some of its production facilities to Russia if it wants to get titanium from Russia?

Why? Russia wants to get rid of western airplanes. If Boeing is producing planes in Russia the government would be forced to support the buying of this planes by russian airlines. Because jobs.

I assumed "Russia-based Ural Boeing Manufacturing (UBM) joint venture" was a Russian based joint venture with Boeing that produces parts in Russia...

GarryB wrote:I assumed "Russia-based Ural Boeing Manufacturing (UBM) joint venture" was a Russian based joint venture with Boeing that produces parts in Russia...

http://hs-nauka.ru/
https://technologiya.ru/en/62
https://www.uec-saturn.ru/

The last time I heard about it, in addition to VSMPO-AVISMA, parts for Boeing were also supplied by these Russian manufacturers (not counting the Boeing Moscow design bureau)

Cheesy hate propaganda. Western colonialists are not happy that their control of the global economy is slipping.
Even though China is nominally the cause of this as the prime non west economy, it is Russia that really makes this
possible since China has options for resources and military support it would not have if Russia was a NATzO colony.
So western parasites are shrieking.

"US has ability to bounce back." Yup, by printing money like mad. Not a good strategy if you are already the most indebted country in the history of mankind.

Even just ignoring the result of Russia in economic collapse... they are no longer the country they were in the 1990s... what happens when a nuclear super power is financially broken and can't print more money to change that?

He seems very flippant about a country able to destroy the world several times being on its knees economically... the glee he seems to show at such a prospect is actually rather disturbing because he presumably seems to assume the result will be Putin gone and Navalny in and the west wins and the windfall will be open access to enormous Russian resources and wealth potential handed to them on a plate.

The actual result might be Putin being overthrown and some real hardliner gaining power, and potentially cutting europe off from gas and energy supplies just for a start... not because it makes sense for Russia (Putin was very sensible and practical but his replacement wont be)... maybe his replacement will think Russia needs to respond with more force to its enemies in the west with actual military attacks in response to sanctions and hostile actions... Belarus taken by force and Georgia and Ukraine the same and then the stans to restore the Soviet Union and then the Baltic states just like they whine about... and like the West it will all be pre-emptive self defence and perfectly justifyable....

I am sure Johnson and Biden and Micron and whoever takes the place of Merkel will be a match for the real Bond villian that replaces Putin... NOT.

The post has nothing to do with economics anyway. Why not have it in the propaganda thread. Good way to categorize all the BS US spreads.

Although economic news is rather lackluster it seems.

Yandex translation

Russia was spending over $100 billion per year subsidizing Ukria before 2014. These were not loans but pure charity.
Maybe this estimate is high, but I think it is not total fluff. The implosion of the Ukrian economy demonstrates that
was not standing on its own feet. Naturally the nazionalist retards organized out of Canada, USA and elsewhere
had no clue.

kvs wrote:Yandex translation

Russia was spending over $100 billion per year subsidizing Ukria before 2014.   These were not loans but pure charity.
Maybe this estimate is high, but I think it is not total fluff.   The implosion of the Ukrian economy demonstrates that
was not standing on its own feet.   Naturally the nazionalist retards organized out of Canada, USA and elsewhere
had no clue.

Well, that is $100B saved for themselves.

As for getting a clue, most Ukrainians still haven't gotten one yet. They never will. Ones who did, fled.

miketheterrible wrote:

Well, that is $100B saved for themselves.

As for getting a clue, most Ukrainians still haven't gotten one yet.  They never will.  Ones who did, fled.

Only those who were able to do it escaped. My relatives are still there, and they do not have the opportunity to change their place of residence.

AlfaT8 wrote:

calripson wrote:No, Russia's birthrate is experiencing the effects of the disastrous 1990s under Yeltsin - that missing generation is now the women of child bearing age and there just aren't enough of them.

What?!

Dude, it's not because there are not enough of them, it's because they aren't having enough kids.
Russia's Fertility rate is around 1.5~1.7, in order to have a stable population, you need a rate of 2.1 minimal.
This means that women in Russia still aren't having kids at the needed levels, because they are wasting their fertile years in Careers and other nonsense.
Unless Russia brings down the Hammer and put Women back in the kitchen, they are eventually F'ed.

Has nothing to do with Putin and his economics.

Actually it has a lot to do with economics, particularly welfare, so long as women can replace the Man with the State, they will not make babies, until it's too late and that's if they realize it's getting too late.

if this is only abut welfare then why Israel has like ~2,5 fertility rates? Israel is not religious state yet ahs better fertility then Islamic republic of Iran or KSA. Even if Russian fertility rate will grot will 2.2 you still need more people to make country and economy stronger. On Russian territory easily would "sank" extra 500mln people.


Russia wants or not must prepare to import human capital. The question is not if but how to ensure newcomers want to contribute, assimilate to feel Russians?

Scorpius wrote:
Only those who were able to do it escaped. My relatives are still there, and they do not have the opportunity to change their place of residence.

I'm sorry to hear that. About size of emigration you can tell visiting Poland. Virtually on every gas station, shop or barbershop you can hear Ukrainian accent... mostly young healthy. friendly, hard working people. For the country loosing them it is tragedy.

Russia's GDP for nine months grew by 4.6% in annual terms

https://ria.ru/20211201/vvp-1761731644.html

MOSCOW, December 1 - RIA Novosti. Russia's GDP in January-September 2021 grew by 4.6% in annual terms, according to a preliminary estimate from Rosstat .
Rosstat data coincided with the estimate of the Ministry of Economic Development, which was announced earlier. In mid-November, Rosstat published an estimate of Russia's GDP growth in the third quarter at 4.3%.
The official forecast of the Ministry of Economic Development assumes that the country's GDP growth in 2021 will be 4.2%. Meanwhile, Russian President Vladimir Putin said last week that by the end of the current year, the growth of the Russian economy could reach 4.7%.

all of that because Garry B is buying Russian ammo

Russia wants or not must prepare to import human capital. The question is not if but how to ensure newcomers want to contribute, assimilate to feel Russians?

Can't say I agree... over populated countries have even more problems... whether Russia has 100 million people or 1 billion people, the people trying to take their territory wont change their minds... Britain had less than 60 million people when its world empire was at its height...

all of that because Garry B is buying Russian ammo

I wish. It is actually hard to get Russian made ammo here these days... we don't get it direct, it mostly comes through Germany and relations with Russia means it is not coming.

GarryB wrote:

Russia wants or not must prepare to import human capital. The question is not if but how to ensure newcomers want to contribute, assimilate to feel Russians?

Can't say I agree... over populated countries have even more problems... whether Russia has 100 million people or 1 billion people, the people trying to take their territory wont change their minds... Britain had less than 60 million people when its world empire was at its height...

I cannot agree with you 100% either. As for countries happy to take your resources (land, people, ore, oil etc) this has always been not only towards Russia. Yet with at best population wobbling around 150mln wont make huge progress. If we take economy (as ability to develop, manufacture) sheer scale makes it happen - look at China, India or USA. OR EU.

More population means more brains, hands and money moves faster and of course more soldiers too.


BTW UK in 1900 was ~40mil, Russia in current territory 88mil, but world's population was estimated on 1,7 bln.

https://en.wikipedia.org/wiki/List_of_countries_by_population_in_1900


Currently worlds population is ~7,9 bln. 4,5 times as much. So Russia should have ~4oo mln, and with empire (136 mln then) 530mln...
UK alone would be 160 mil and Empire ~ 1,800 bil

So you see you need people mass to have your say in world's politics/economy. BTW looks 500 mil for Russia is quite optimal

Arrow wrote:

GunshipDemocracy wrote:

So you see you need people mass to have your say in world's politics/economy. BTW looks 500 mil for Russia is quite optimal

Exactly a larger population means a larger economy and more opportunities.  Russia lacks the population to play in major leagues such as China, USA, and in the future, India. But with 150 million it is the fifth economy in the world and a powerful military force.

I must disagree with you. If Russia lacks population then neither  USA does. In order to compare with India, China or soon Nigeria or Indonesia.  


US has roughly 2x population than Russia and lower fertility rates.  1,7 to 1,82 respectively.  The USA population growth is based exclusively on immigrants. .Russia is about 60 percent of former USSR, nobody said Russian cannot rebuild that.

Arrow wrote:

GunshipDemocracy wrote:
.Russia is about 60 percent of former USSR, nobody said Russian cannot rebuild that.

How? Only they can incorporate Belarus again.

Same as Germany and France incorporated Sweden, the Netherlands or Spain? It is happening now.

Soon IMHO Ukraine (or rather whatever is left of it after USA colonial rule) joins, not sure who from Asiatic former USSR follows tho.