Russia and economic war by the west

GarryB wrote:

hopefully there will be some kind of reward and sponsor system to allow people to earn from it.

There are likely a lot of young pretty Russians that made money online on those sorts of sites by monetising their various forms of entertainment and clearly they are upset the golden goose is being taken away from them so they might have to get real jobs instead.

But western media giants have wilfully ignored and even laughed at and made fun of Russian requests, and costing them a large market and potentially creating rivals to their business is the best penalty for their ignorance.

The rest of the world is billions of extra people and a much bigger market for potentially more money if they get it right.

These influencer assets have more clout than you think. Best to allow them get their money in same method to compete with west.

A poster on ZH

So to "punish" the Russian people and Putin.

We took away the power and wealth of the oligarchs, the only people who marginally had some counter power to Putin and the communist power (Putin win).

Provide a loan moratorium for Russian companies (Putin win).

Closed McDonald's, Starbucks, Coke and Pepsi allowing Russians to ignore Western media manipulations and reduce diabetes and related killers (Putin win).

End all contracts with Russian firms allowing for renegotiation without any consideration (Putin win).

Arm zealots in Ukraine who after getting their ass kicked by Russia will train their new found weapons on Poland, Germany, NATO nations (Putin win).

Finally, completely cripple the Western world economy leaving the US and western countries susceptible to radical programming and resets (Putin win).

Sanctions will impact Russian GDP and boost inflation – central bank, 18.03.2022.

It will take the country’s economy until 2024 to adapt to the new conditions, according to the regulator.

The Russian economy is entering a phase of large-scale restructuring, which will be accompanied by a temporary rise in inflation, the Bank of Russia said in a statement on Friday.

In its forecast for the next few months, the regulator said businesses and the economy in general need to adapt to changing external conditions, and to focus on restructuring production and logistics chains amid the sanctions levied on the nation. This will be the major factor in tackling the potential rise in prices, the central bank said.
“Operational indicators, including the results of the monitoring of enterprises conducted by the Bank of Russia, show a deterioration in the Russian economy. Enterprises in many industries report difficulties in production and logistics against the backdrop of the trade and financial restrictions imposed on Russia,” the regulator noted, adding that economic uncertainty has an impact on the mood and expectations of both people and commerce.

“We expect a decline in GDP in the coming quarters. It will mainly be associated with supply issues [but] the support measures introduced by the government and the Bank of Russia will limit the scale of the economic downturn. The further trajectory of the recovery of the Russian economy will largely depend on the degree and speed of its adjustment to new conditions,” the regulator said.

The central bank said it expected the situation to have normalized by 2024.

“The monetary policy pursued by the Bank of Russia will create conditions for the gradual adaptation of the economy to new conditions and prevent uncontrolled price increases. With this in mind, annual inflation will return to 4% in 2024,” it stated.

On Thursday, the central bank decided to keep the key interest rate at 20% per annum after its sharp unscheduled increase on February 28 from the previous level of 9.5%. The decision to keep the rate unchanged was expected, as analysts say Russia still needs time to assess the impact of recent developments on its economy, and any change could have a negative impact on the already highly volatile situation.
According to the regulator, the recent measures taken to stabilize the situation in the financial markets have so far been successful in keeping the country’s economy afloat.

“Against the backdrop of radically changed external conditions, the sharp increase in the key rate by the Bank of Russia on February 28 supported financial stability and prevented an uncontrolled rise in prices,” it concluded.

https://www.rt.com/business/552237-sanctions-impact-russian-economy/

The Ministry of Finance assessed the execution of the budget of the Russian Federation for January-February 2022

The federal budget for January-February 2022 was executed with a surplus of 412.6 billion rubles. Such a preliminary assessment is given on March 17 by the Ministry of Finance of Russia

Подробности: https://regnum.ru/news/economy/3536682.html
Любое использование материалов допускается только при наличии гиперссылки на ИА REGNUM.

The CBR better dial down the 20% rate before the end of March. This rate by itself will cause a GDP drop of several points.
It is now obvious that there is simply not the level of inflationary pressure in Russia that these monetarist twerps claim.

Not all price rises require clenching of the anal sphincter at the CBR. Shortage driven price increases are real price increases
and are necessary to regulate the demand. You see here that monetarists are commies at their core. They want to micromanage
the macro-economy. They are central planner zealots.

JohninMK wrote:A poster on ZH

So to "punish" the Russian people and Putin.  

We took away the power and wealth of the oligarchs, the only people who marginally had some counter power to Putin and the communist power (Putin win).  

Provide a loan moratorium for Russian companies (Putin win).  

Closed McDonald's, Starbucks, Coke and Pepsi allowing Russians to ignore Western media manipulations and reduce diabetes and related killers (Putin win).  

End all contracts with Russian firms allowing for renegotiation without any consideration (Putin win).  

Arm zealots in Ukraine who after getting their ass kicked by Russia will train their new found weapons on Poland, Germany, NATO nations (Putin win).  

Finally, completely cripple the Western world economy leaving the US and western countries susceptible to radical programming and resets (Putin win).    

Putin the Judo-ka. The harder you go against the master, the harder he plants your ass to the ground.

It will take the country’s economy until 2024 to adapt to the new conditions, according to the regulator.

Of course, a lot of Russian businesses relied on western customers and western suppliers and now they need to look to the rest of the world for both, so the transition is not going to be quick or easy, but it is necessary and it will be done and Russia will be much the better off for that.

What is interesting is that a lot of western luxury goods makers are leaving the Russian market, which creates a huge profit margin business opportunity for a lot of Russian companies to fill that niche market... high quality was always a difficult market to get in to because the competition are generally long established names like Rolls Royce etc etc.

This is a chance for Russian companies to step up... remember Lamborghini started out making tractors...

A poster on ZH

Add to that John that the west is denying Russia the latest in fashion and trends and social media access, while the Russia controls the heat and light in the west, and with fertiliser and food exports being restricted a serious worldwide food shortage too... so Russians will have last years shoes and clothes but will be warm and well fed, while the west will look super cool and super up to date in the dark with their heaters off to save power eating their pets and then the left over pet food... Win for Putin again.

The west might end up having to buy from the rest of the world and pay extra middle man fees the way the west would sell Russian stuff to the rest of the world taking middle man fees.

http://government.ru/news/44854/
Russia has agreed with the EAEU countries to start settlements in the national currency.

Kiko wrote:Sanctions will impact Russian GDP and boost inflation – central bank,

At the moment, the price increase is 25-30%. Many will also lose their jobs in the coming months. Hard times are waiting for us, this is quite understandable. The measures taken by the Government are not yet enough to avoid this. My salary is also being reduced by 20% due to sanctions. I'm already thinking about looking for a new job. So the situation is actually quite complicated.

If it comes to this, TPTB really are attempting to drive a fundamental break between the West and Russia.

Tom Fowdy
@Tom_Fowdy
·
1h
A long dead person who made one of the greatest feats in history is being cancelled for a war that happened 61 years later, unaffiliated to him.

In Context
@incontextmedia
· 11h
Russian cosmonaut Yuri Gagarin, the first person in space, has been stripped of his honours by the Space Foundation “in light of current world events".

Scorpius wrote:

Kiko wrote:Sanctions will impact Russian GDP and boost inflation – central bank,

At the moment, the price increase is 25-30%. Many will also lose their jobs in the coming months. Hard times are waiting for us, this is quite understandable. The measures taken by the Government are not yet enough to avoid this. My salary is also being reduced by 20% due to sanctions. I'm already thinking about looking for a new job. So the situation is actually quite complicated.

We still have to see the full impact of this sanctions in the months ahead. I'm particulary worried about support systems, like Oracle and SAP. Also Microsoft Office etc, stop being commercialized. To replace those would requiere a huge amount of investment, that is now being diverted to Ukraine.

I wonder how much is the daily cost of the War. Maybe a few 100 Million per day? I mean only the military operation. Maybe could be more.

At the end of this month Europe will stop buying Gas. Lets see how it all goes until than.

Not a single high-profile political enemy of Russia in Ukraine has been taken out and that is quite a list.

Me thinks the expected solution many people here want will not turn out to be the settlement.

JohninMK wrote:If it comes to this, TPTB really are attempting to drive a fundamental break between the West and Russia.

Tom Fowdy
@Tom_Fowdy
·
1h
A long dead person who made one of the greatest feats in history is being cancelled for a war that happened 61 years later, unaffiliated to him.

In Context
@incontextmedia
· 11h
Russian cosmonaut Yuri Gagarin, the first person in space, has been stripped of his honours by the Space Foundation “in light of current world events".

Attempting? It's already well underway.

Pacense wrote:We still have to see the full impact of this sanctions in the months ahead. I'm particulary worried about support systems, like Oracle and SAP. Also Microsoft Office etc, stop being commercialized. To replace those would requiere a huge amount of investment, that is now being diverted to Ukraine.

I wonder how much is the daily cost of the War. Maybe a few 100 Million per day? I mean only the military operation. Maybe could be more.

At the end of this month Europe will stop buying Gas. Lets see how it all goes until than.

How does MyOffice cost, do you have any idea?

This is from a poster on MoA, pretty good idea.

While any changes in the near future would likely be symbolic, one mechanism I am wondering about, is the possibility of China using some of their copious dollar reserves to buy out the dollar/euro-debt of its trade partners, retire that dollar/euro debt, and refinance it in Yuan currency.

The trade partner would then burn off that new Yuan debt in exchange for the materials being exported, and China would reduce the newly acknowledged geopolitical risk associated with holding so many dollar/euro deposits.

rigoletto wrote:

Pacense wrote:We still have to see the full impact of this sanctions in the months ahead. I'm particulary worried about support systems, like Oracle and SAP. Also Microsoft Office etc, stop being commercialized. To replace those would requiere a huge amount of investment, that is now being diverted to Ukraine.

I wonder how much is the daily cost of the War. Maybe a few 100 Million per day? I mean only the military operation. Maybe could be more.

At the end of this month Europe will stop buying Gas. Lets see how it all goes until than.

How does MyOffice cost, do you have any idea?

You mean OurOffice

Pacense wrote:
I wonder how much is the daily cost of the War. Maybe a few 100 Million per day? I mean only the military operation. Maybe could be more.

At the end of this month Europe will stop buying Gas. Lets see how it all goes until than.

Any costs of the war are no doubt being covered by the extra profits being made on current oil and gas sales.

Why do you think that Europe will be able to stop buying Russian gas? Winter isn't over yet and there is a lot of storage to refill.

JohninMK wrote:If it comes to this, TPTB really are attempting to drive a fundamental break between the West and Russia.

Tom Fowdy
@Tom_Fowdy
·
1h
A long dead person who made one of the greatest feats in history is being cancelled for a war that happened 61 years later, unaffiliated to him.

In Context
@incontextmedia
· 11h
Russian cosmonaut Yuri Gagarin, the first person in space, has been stripped of his honours by the Space Foundation “in light of current world events".

...wtf this is madness.

TMA1 wrote:

JohninMK wrote:If it comes to this, TPTB really are attempting to drive a fundamental break between the West and Russia.

Tom Fowdy
@Tom_Fowdy
·
1h
A long dead person who made one of the greatest feats in history is being cancelled for a war that happened 61 years later, unaffiliated to him.

In Context
@incontextmedia
· 11h
Russian cosmonaut Yuri Gagarin, the first person in space, has been stripped of his honours by the Space Foundation “in light of current world events".

...wtf this is madness.

This just proves the western institutions are nothing but circle jerking. So **** them. Russia and China and alike will build new organizations instead.

Well Russia is going to have to start replacing a lot of western products they rely on, including civilian aircraft, so lots of investment in production will need to be made which should generate lots of new jobs, and replacing foreign equipment and technology with Russian technology and equipment should also lead to a boost in funding and production... people working for foreign companies should really be considering if they can start up their own business to replace that foreign companies products or services for themselves...

Look south and east... the rest of the world is an enormous market... most are not rich, but in my experience rich customers pay the least for what they buy because they normally buy in bulk and demand discounts because of that so your profit margin is much lower for rich customers than for the middle level customer.

And WTF is the space foundation?

No mention of this on their website...

https://www.spacefoundation.org/

Scorpius wrote:

Kiko wrote:Sanctions will impact Russian GDP and boost inflation – central bank,

At the moment, the price increase is 25-30%. Many will also lose their jobs in the coming months. Hard times are waiting for us, this is quite understandable. The measures taken by the Government are not yet enough to avoid this. My salary is also being reduced by 20% due to sanctions. I'm already thinking about looking for a new job. So the situation is actually quite complicated.

So once again the forex rate is used to set prices in Russia by crooked merchants and companies even when the forex has no relevance
for the price. The 25-30% change overlaps the ruble forex drop to the dollar.

The free market is a BS fiction. It is a racket. I recall prices for food and other essentials in the 1990s quickly reached western (US, Canada)
levels when forex was taken into account. As if there is some universal price for goods and services. Naturally, determined by the west.
The consumer simply does not have the power to set the price. The merchant does and only has to not make the prices totally unbearable.
This is a fundamental asymmetry that market zealots never admit. Instead they lie that consumers exert pricing pressure.

The problem is that consumers are a gas of individuals. They do not act like an organized entity most of the time. So the game is to keep
them that way, which means not abusing them with prices that can trigger organized consumer action.

Scorpius wrote:

Kiko wrote:Sanctions will impact Russian GDP and boost inflation – central bank,

At the moment, the price increase is 25-30%. Many will also lose their jobs in the coming months. Hard times are waiting for us, this is quite understandable. The measures taken by the Government are not yet enough to avoid this. My salary is also being reduced by 20% due to sanctions. I'm already thinking about looking for a new job. So the situation is actually quite complicated.

Keep us up to date.

I dont see how your salary should be reduced by 20% because of sanctions.  That just sounds like shitty management and excuses to cut costs.

Best of luck.  And like I said, keep us informed of the situation on the ground.

kvs wrote:

Scorpius wrote:

Kiko wrote:Sanctions will impact Russian GDP and boost inflation – central bank,

At the moment, the price increase is 25-30%. Many will also lose their jobs in the coming months. Hard times are waiting for us, this is quite understandable. The measures taken by the Government are not yet enough to avoid this. My salary is also being reduced by 20% due to sanctions. I'm already thinking about looking for a new job. So the situation is actually quite complicated.

So once again the forex rate is used to set prices in Russia by crooked merchants and companies even when the forex has no relevance
for the price.   The 25-30% change overlaps the ruble forex drop to the dollar.  

The free market is a BS fiction.  It is a racket.   I recall prices for food and other essentials in the 1990s quickly reached western (US, Canada)
levels when forex was taken into account.   As if there is some universal price for goods and services.   Naturally, determined by the west.
The consumer simply does not have the power to set the price.   The merchant does and only has to not make the prices totally unbearable.
This is a fundamental asymmetry that market zealots never admit.   Instead they lie that consumers exert pricing pressure.  

The problem is that consumers are a gas of individuals.  They do not act like an organized entity most of the time.  So the game is to keep
them that way, which means not abusing them with prices that can trigger organized consumer action.

I have a feeling that the government hasn't taken much control yet of the market as they are waiting out and seeing what the results are, and where the important sectors need to be cleansed so that prices can reduce. It would be ideal for the government to also set up a new task force to start investigating companies taking advantage of this and trying to reduce peoples pay and what not which is as far as I am aware, currently not allowed. Putin already said wages are to go up, not down. So we shall see.

Companies cashing in, either by raising prices or lowering wages. Or at least they try. Maybe the government should send some Chechens to the management of these companies. Just a friendly visit...

These are going to hurt on top of the food and energy price increases.