Let’s begin by what I personally consider bad news: either Putin really believes in liberal market economics or he has to say he does. He began his Q&A and ended it with a categorical expression of full support for the policies of the Central Bank and its Chairwoman, Nabiulina, and a no less categorical expression of support for the Government and its Prime Minister, Medvedev. Worse, Putin declared that he believes that market forces will by themselves correct the current disequilibria. At most, he agreed that certain decisions should have been taken earlier or more forcefully, but that’s it.
Some will love it. Lew Rockwell went as far as to say that he would hand Elvira Nabiulina the award of “Central Banker of the Year”. Not everybody agrees. For example, Victor Gerashchenko, a former Chairman of the Central Bank, declared that if he had been in the position of Nabiulina today he would have “asked for a gun to shoot himself”.
I have to admit that I personally am dismayed by Putin’s apparent beliefs in market economics. I say ‘apparent’ because there might be things going on which I am not aware of. For example, while Putin speaks of “market forces” China seems to get heavily involved in the Russian economic crisis. For those interested in these developments, please check the following sources:
First, check out the latest CrossTalk: Dumping the Dollar.
Then read Pepe Escobar’s Go West, Young Han.
Then check out this article in the English version of the People’s Daily.
Finally please read this article in Zero Hedge.
The Chinese friend who sent me the article in the People’s Daily made a particularly interesting comment. He wrote:
“Yin and yang politics? I cannot help but notice a strong pattern. China and Russia each engages each other’s enemies/allies with whom they have friction in order to bring them into the Eurasian fold. What do you think? Is this intentional? I had my doubts earlier in the year, but more and more this keeps happening“.
I think that he is spot-on here. It is very much in the Russian strategic interest to have China applying some “Yuan diplomacy” in the EU not only because China is a close ally, but mainly because China is “not the USA”. At this point in time, *anything* which can weaken the total control of the USA over its EU colonies is welcome. Any Yuan invested in the EU is one Dollar which is not.
This is just an example. Putin probably knows a lot of things which we don’t and he probably cannot say everything he thinks or plans. But my purely subjective impression is that Putin simply does not have the power needed to confront the Atlantic Integrationists head on. Mikhail Khazin, who knows a lot, recently even declared that there were Atlantic Integrationists in the “power ministries”. And since I am pretty sure that he was not referring to the Ministry of Defense that leaves either Internal Affairs or State Security. If true, that is not good. Either that, or Putin sincerely believes in liberal market-economics. I most definitely don’t believe in them at all.
There are, in my opinion, two major problems with Putin’s logic. First, Russia needs not less, but more regulation and more state control. At the very least, I really believe that the very institution of the Central Bank is a toxic one: it was created by the US-controlled Eltsin regime to subordinate Russian politics (and politicians) to the international banking cartels and we see that it works perfectly. Putin can send bombers to the Gulf of Mexico, but he is unable to remove Nabiulina, nevermind take control of the Central Bank. Nikolai Starikov has even said that there is a joke going around now saying “Putin, send the troops into the Central Bank!”. That is how disgusted many Russians have become with this supra-national institution which is accountable to nobody. But there is even worse.
The choice of a free-market non-regulated “solution” basically leaves Russia fully enmeshed into the AngloZionist controlled financial system. How can Russia free herself from the “Dollar yoke” while remaining fully part of the Dollar-dominated international system?!
I have to tell you that while I gratefully posted Peter Koenig’s excellent “Free Fall of the Ruble – A brilliant ploy of Russian economic Wizards? Who’s chess game” this was one of those instances when I post something I find very interesting but which I do not agree with. I just don’t get the sense that Putin is about to pull some clever judo-move on the western plutocrats. I most sincerely hope that I am wrong here, but that is my gut-feeling.
Generally, Putin was clearly defensive when asked questions about the Central Bank and the Government. Especially in contrast to the absolutely magnificent way he handled the questions about the Ukraine, even when asked by a very hostile Ukrainian journalist. Again, as I so often say this, I am not a mind-reader or a prophet. I cannot tell you what Putin thinks or what he will do. But I think that many years of studying the man give me a pretty decent gut feeling about him and that gut feeling tells me that while he has a clear and strong vision on international politics in general, and especially about the Ukraine, he lacks such a vision for economic problems.
For the Ukraine his position is crystal clear: “Crimea is ours forever, we will not let you crush the Donbass, we want a untied Ukraine in which the rights of all people and regions are respected and you will have to negotiate with the Novorussians who have a right of self determination” (which leaves open the possibility that while Russia might “prefer” a united Ukraine, the Novorussians have the right to decide otherwise). Clear, direct and, I would argue, perfectly reasonable. In contrast, in economic I get a sense of faith-based politics: “market forces will correct the current artificial situation and within 2 years the crisis will be over”. The problem with that is that the very same Putin ALSO says that the West is completely manipulating the markets and not allowing them to act. So what he is really saying is this: “the Empire does not have the means to artificially skew the markets for more than two years”. Oh really? I am not so sure of that at all. In my book the Empire has been skewing the markets for many years already (I would argue since 1971).
Bottom line, what I hear from Putin is “more of the same” and since I don’t like what I have seen so far, I can only add “only worse”.
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| Can this nightmare be averted? |
Still, the situation is not necessarily hopeless. While I think that Putin’s economic policies are wrong and while I believe that the Russian Central Bank is very much part of the problem and not the solution, this is not a black and white binary kind of choice: playing by the wrong rules or on the wrong field does not necessarily mean that you will lose, only that you have made the wrong initial choice. For one thing, you can make the argument that the Ruble is a much more credible currency then the Dollar. Second, I do agree that market forces are resisting the US distortion and that the integration of China and Russia will inevitably contribute to help the Russian economy. Third, the EU is already in recession and if that get’s worse, and it will, this will start pulling down many US banks who are heavily linked to the EU market. Fourth, in objective terms, Russia is sitting on a tangible fortune of natural resources and she has full access to the gigantic Chinese market. In these conditions, it is going to be awfully hard for the AngloZionists to “isolate” Russia. So, objectively, Putin is right about one thing: even if it does get worse before it gets better, it will inevitably get better.
So is Putin a genius chess player? That is not quite how I would put it. He definitely has a record of absolutely brilliant moves, but right now he is clearly struggling. I am like everybody else, I would like him to pull yet another brilliant “chess move” and stick it to the Empire but I don’t see how we could do that, at least not in this point in time.
What I saw today is a Putin clearly on the defensive who had to invest a lot of his personal capital of popularity and trust. He honestly admitted that things might get worse and that there is no quick fix to the current crisis. He did commit to a time frame of 2 years which is both very shot and very long. It is plenty enough time to lose his popularity and very little time to turn around such a huge country like Russia.
The most poignant moment of the entire 3 hours came when Putin explained what was at stake today. He said:
You know, at the Valdai [International Discussion] Club I gave an example of our most recognisable symbol. It is a bear protecting his taiga. You see, if we continue the analogy, sometimes I think that maybe it would be best if our bear just sat still. Maybe he should stop chasing pigs and boars around the taiga but start picking berries and eating honey. Maybe then he will be left alone. But no, he won’t be! Because someone will always try to chain him up. As soon as he’s chained they will tear out his teeth and claws. In this analogy, I am referring to the power of nuclear deterrence. As soon as – God forbid – it happens and they no longer need the bear, the taiga will be taken over (…) And then, when all the teeth and claws are torn out, the bear will be of no use at all. Perhaps they’ll stuff it and that’s all. So, it is not about Crimea but about us protecting our independence, our sovereignty and our right to exist. That is what we should all realize.
Amazing words which fully confirm one of the most important facts of the current situation: the AngloZionist Empire and Russia are at war, a war in which either the Russian Bear will be “stuffed and that’s all” or the AngloZionist Empire will crumble. This is an existential war for both sides, for the AngloZionist Empire and the Russian Civilizational Realm – one of them will defeat the other.
This is not the first time that Putin explains this, but this time I felt an urgency in his voice which I have not heard before. He was both warning the Russian people and asking for their support for him personally. My guess is that he will get it, I just don’t know for how long.
The Saker
You may want to read this:
http://russeurope.hypotheses.org/3166
This french analyst is specialised on Russia. He’s very leftish for himself but it doesn’t really interfere with his analysis.
In short, he shows that the Central Bank spend quite some dollars to make the speculator bleed, and will do some more. While he’s a proponent for capital controls to neutralise speculative attacks he admits that while not free, the strategy won and actually damaged the attackers. He still recommends capital controls to allow for lowering of interest trade, but in a second time, once the defensive salvo is over.
Putin was extraordinary in his long question and answer appearance. Calm, intelligent, human, incredibly impressive just being so relaxed and coherent in the current crisis.
If the world spoke and understood Russian none of this catastrophic propaganda nightmare would be happening.
I haven’t verified this timeline myself, but I’ve heard that after Jesus Christ threw the moneychangers out of the temple, a week later he was dead.
My dear Grieved, do not cast such grievous untruth on the Lord who has conquered death for all mankind eternally.
[from Blue]
Ahhh … I started listening to this and now I understand the chair. This was more than 3 hours. Wow! In the US to see a press conference more than 20 minutes is unusual, with everything orchestrated and scripted beforehand.
Someone should treat Putin to a pizza and a big chocolate milk shake.
Saker, I think you should consider that the US financial/banking armature of the Western empire is on its last legs. Many Beyond-The-Current-Orthodoxy-Pale commentators – some of the most insightful of them not economists at all, which always helps their clarity – have suggested that the next big economic lurchdown, after ’08, is now imminent. And it’s going to hurt the Western empire much worse than either the Russian or Chinese (and yes, by any objective measures, both those states are empires too, in my book).
As you’ll know, perhaps, there’s a continuing discussion going on outside the orthodoxy Pale about whether global, and particularly US-imperial, collapse will be fast and sudden, or slow and grinding. Probably the best guess is a combination: John Michael Greer’s idea of a step-down process, which he calls the Long Descent: a sequence of sudden crisis lurchdowns (already begun) with periods of relative tranquility, leading to new tentative moments of economic growth – which promptly triggers the next lurchdown.
The era of abundant, cheap energy to drive economic activity of all kinds is now definitively over, and will never be coming back; not unless someone discovers a way in to some new, huge, easy-get energy source. (And if they do, god help us all, with humankind already in multiple overshoot conditions across the whole planet) Peak Oil, in particular, and Peak Everything Else more and more, are already here. ‘The Limits To Growth’ and its sequels are not mocked. Dead on the nail in all their foreshadowings of global trends, so far, despite the tidal waves of rubbishing that the original TLTG has received from the massed idiots and axe-grinders.
In a nutshell: the two-hundred-year-plus era of economic growthforever is over, and will never be coming back. Blasphemy against the Holy Ghost of current orthodox Western economic theory? Perhaps. But true anyway? I believe so.
As Dmitry Orlov has been pointing out for some years now, the USSR was, quite by chance, in a much better position than the US to survive its collapse into the new Russian Federation; which is now, clearly, recovering well. (continued)
But now, despite all the bluster and sabre-rattling shows, the US is, in real truth, in a much more fragile condition than the USSR was in 1989; and it’s ‘free’ market obsession has placed both the state and its common people in a very much worse situation to survive its own up-coming collapse; or as some have it, it’s own ALREADY BEGUN collapse. (Slo-mo, unspectacular, but terminal)
The idea that’s been floating around for some time now, that the continental US will, quite soon, break up into several separate states, as it goes into a decisive socio-economic collapse, now begins to look quite likely.
As a native Russian speaker, Saker, you’ll be able to pick up nuances of VVP’s recent Q&A which I can’t. He may indeed be somewhat on the defensive. But even so, he – and Russia/China/BRICS/SCO, and all the worlds smaller states who are now looking to this bloc for leadership in the next period of global politics – are in a very good position to just hold on, weather the storm, and wait for the US empire to immolate itself – as it’s already doing, decisively.
Also, like you, I’m impressed by the Putiniki as chess-players. The Beltway Bozos are simply not in the same league: Too drunk on their own exceptionalist, rightful rulers-of-the-world hubris. And in many individual cases just to much sheer mediocrities, who’ve done too well for too long, and have swallowed their own propaganda and become careless. Always fatal! I particularly like Paul Craig Roberts’ remark about “the amateur lady strategists in the White House.” Damn’ right! (Part two)
I suspect Vlad appearing to be on the back foot just now may be nothing more than a feint. And two years should bring some pretty decisive elucidation.
Cheers Saker; and thanks, as ever, for your – truly exceptional – insight, clarification, and hard-news volunteer service; simply wonderful! Keep sluggin’ good brother!
Rouble vs. Dollar Games – From a Perspective of a Russian Businessman
By Zems – Live Journal
December 16, 2014 “ICH” – “Zems” – Only the lazy are not writing about this subject today. But everyone for some reason is looking in the wrong direction. Let me explain:
– Our country has a stock of dollars
– The currency of our country – roubles – is held by other countries
– We – Russia – are planning to sell oil for roubles in the future
– Everyone who buys oil from us in the future will have to look for these roubles to buy oil
– The harder it is to look for them, the more expensive they will be
Naturally, the task is simple – we need to drop the ruble to the maximum, and then buy all that we can, giving away the dollars that are no longer needed and not guaranteed by anything. This will help concentrate all of the roubles inside the country and to assign their price independently, while holding and then releasing more money to the market.
Meanwhile there will be a short-term increase in prices and a reduction in living standards, but it’s like an incision by a surgeon – a little painful at first, but then you will be healthy and strong for the rest of your life.
I am sincerely surprised by the hysteria and resentment against the government regarding the devaluation of the rouble. Is it so hard to look more than a month into the future? Everything is done correctly and wisely, so everything will be all right, guys =)
ranslated by Krisitna Rus for FortRuss.blogspot.com
(http://www.informationclearinghouse.info/article40486.htm)
PS: About that cartoon on Full Spectrum Dominance, with the image of a crumpled-up world in hand: The bottom line should really read:
“Has this megalomanic lunacy any chance at all of success?”
My answer, of course, is – “Obviously not! Sheer delusion!”
http://russia-insider.com/en/2014/12/18/2016
putin is not defensive, think,judu techniques
Russian economy is partially integrated to the globalised economy and a significant part of the ex-soviet industry is now gone, either plundered by jewish oligarchs or going bankrupt during the privatisations of Yeltsin years.
Russia doesn’t have the self sufficiency of soviet union.
And the economic growth that was achieved during the Putin years was based on high oil price.
Russia will surely lose the economic and geopolitical war with the West if it stays integrated on the globalised economy.
As long as the kremlin elites follow a liberal economic policy, there is no hope.
Maybe Russian Communist Party is a better choice than Putin
Putin will get support from Russians, but now I think in exchange for the heads of people from his “team” – PM, economic-finance block ministers, Central Bank Governor, or such like people (ex-Defence Minister Serdyukov or his mistress). He has to bring to people on the plate one of those heads as a sign- this is for real now& IMHO Diogenes
“That is how disgusted many Russians have become with this supra-national institution which is accountable to nobody.”
it is good that the people feel this way, it could make it easier for Putin to remove the offending members when the time comes .. but if, as you suspect, 5th column are too powerful, what can he do .. stage a coup as a last desperate act?
I think he KNOWS something we don’t .. but yes .. its sailing too close to the wind and if, as he passionately iterates, this is a struggle for survival then surely getting out of bretton woods along with china, india etc is a must. Maybe Vladimir is just a master of Wu Wei and is allowing the ‘natural flow’ to take effect, personally I don’t believe he has enough time to do that. It is a strange, strange situation, he is so adamant and passionate and knows exactly what is at stake yet appears to do little about it .. perhaps he doesnt realise that a large part of the world is looking towards china and russia to ‘save the world’ they are the future and the dangerously sick and insane totalinarianism espoused by the US and UK etc cannot be allowed to triumph.
Hi Saker,
On the subject of attack on the Ruble Putin’s government’s response is probably very wise. I make my living as a hedge fund manager running an inflation hedging fund so I’ve done some homework on the subject.. At this point, achieving the best possible understanding of the problem matter is critical to avoid misdirecting our ideas and energy, so I think this discussion would benefit from better understanding of the process of currency inflation. I’ve posted an article on my blog to hopefully shed some light on this subject: http://thejubilee.wordpress.com/2014/12/19/understanding-inflation/
rEverybody should read this one:
http://www.counterpunch.org/2014/12/19/ruble-takedown-exposes-cracks-in-putins-defense/
” Putin needs to think asymmetrically. What would Obama do if he was in Putin’s shoes?
You know what he’d do: He’d send military support to Assad. He’d arm rebel factions in Saudi Arabia, Somalia, Nigeria and elsewhere. He’d strengthen ties with Venezuela, Bolivia, Ecuador providing them with military, intelligence and logistical support. He’d deploy his NGOs and Think Tank cronies to foment revolution wherever leaders refused to follow Moscow’s directives. He would work tirelessly to build the economic, political, media, and military institutions he needed to impose his own self-serving version of snatch-and-grab capitalism on every nation on every continent in the world. That’s what Obama would do, because that’s what his puppetmasters would demand of him.
But Putin must be more discreet, because his resources are more limited. But he still has options, like the markets, for example. Let’s say Putin announces that creditors in the EU (particularly banks) won’t be paid until the ruble recovers. How does that sound?
Putin: “We’re really sorry about the inconvenience, but we won’t be able to make those onerous principle payments for a while. Please accept our humble apologies.” End of statement.
Moments later: Global stocks plunge 350 points on the prospect of a Russian default and its impact on the woefully-undercapitalized EU banking system.
Get the picture? That’s what you call an asymmetrical attack. The idea was even hinted at in a piece on Bloomberg News. Here’s an excerpt from the article:
—
According to Kaplan and Rodrik, however, the capital controls were ultimately effective. The government was able to lower interest rates, the economy recovered, the controls were relaxed ahead of time, and by May 1999 Malaysia was back on the international capital markets with a $1 billion bond issue.” (Is Russia ready to impose capital controls, Chicago Tribune)
Sure they were effective, but they piss off the slacker class of oligarchs who think the whole system should be centered on their “inalienable right” to move capital from one spot to another so they can rake-off hefty profits at everyone else’s expense. Capital controls push those creeps to the back of the line so the state can do what it needs to do to preserve the failing economy from the attack of speculators. Here’s a clip from a speech Joseph Stiglitz gave in 2014 at the Atlanta Fed’s 2014 Financial Markets Conference. He said:
———
No thanks. Maybe Medvedev wants to be a slave to the market, but I’ll bet Putin is smarter than that.
Putin’s not going to roll over and play dead for these vipers. He’s got to much on the ball for that. He’s going to beat them at their own game, fair and square. He’s going to implement capital controls, restructure the economy away from the west, and aggressively look for ways to deter Washington from spreading its heinous resource war to Central Asia and beyond.
He’s not going to give an inch. You’ll see. “
MIKE WHITNEY lives in Washington state. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press)
You are correct in your analysis Saker, Putin is a good and strong leader, but not good at finance. He needs to nationalise the Russian central bank, appoint trustees who put forex controls and index the rouble on gold or a combination of yuan and gold.
Putin is responsible for the fall of the Rouble, he is the leader of Russia and should take responsibility for failures of his staff and their appointments, and own up to that.
The big mistake for the Russian Central Bank was to keep the policies of the previous Yeltsin Administration which was pushed on Russia by the neoliberal US elites, another clear mistake was allowing to free float the Rouble in the Market.
These mistakes need to be rectified by appointing a new Russian Central Bank Team, and not a neoliberal dogmatic one.
You cannot overcome by remaining in a system that traps you like a fly in a spider’s web.
Sergey Glaziev has proposed something similar to the Malaysian fiscal solution, it is a good proposal, it saved Malaysia’s economy.
Finance is the remit of the Ministry of Finance, or Treasury, he needs to appoint a better financial team, the current team was inherited from the 1990’s neoliberal takeover under Yeltsin, time to fire them.
The Russian central bank needs to be nationalised, and new trustees appointed who put forex controls and index the rouble on gold or a combination of yuan and gold.
Control of the Central Bank should be removed from dogmatist neoliberal ideologues and entrusted to an independent team that does not bow down and defer to the neoliberal consensus of the free market, which is not free because it is rigged to suit the United States and their vassal allies.
Sergei Glaziev should be appointed new Central Bank Governor as soon as possible.
News Conference of Vladimir Putin: Enhanced Capabilities of Armed Forces. Careful Management of Gold and Currency Reserves
By President Vladimir Putin
Global Research, December 18, 2014
Russia Presidency
The President’s news conference was broadcast live by Channel One, Rossiya-1 and Rossiya-24 TV channels, and by the Radio Rossii, Mayak and Vesti FM radio stations. 1259 Russian and foreign journalists have been accredited to cover the news conference.
PRESIDENT OF RUSSIA VLADIMIR PUTIN: Good afternoon, colleagues.
We gave significant attention this year to enhancing the combat capability and efficiency of the Armed Forces
I believe we all know that the main issue of concern to this country’s citizens is the state of the economy, the national currency and how all this could influence developments in the social sphere.
The current situation was obviously provoked primarily by external factors.
the price of energy resources, of oil and consequently of gas as well. I believe the Government and the Central Bank are taking appropriate measures in this situation. We could question the timeliness or the quality of the measures taken by the Government and the Central Bank, but generally, they are acting adequately and moving in the right direction.
I [think] that yesterday’s and today’s drop in the foreign currency exchange rate and growth of our national currency, the ruble, will continue.
What do we intend to do about this? We intend to use the measures we applied, and rather successfully, back in 2008.
I would like to remind you that Central Bank reserves amount to $419 billion. The Central Bank does not intend to ‘burn’ them all senselessly, which is right. The Government reserve, the National Wealth Fund, the Reserve Fund have grown this year by about 2.4-2.5 trillion rubles to a total 8.4 trillion rubles. With these reserves I am certain we can work calmly to resolve our main social issues and to diversify the economy; and I will repeat that inevitably the situation will return to normal.
To stabilise the national currency they need to somewhat limit ruble liquidity and give economic entities access to foreign currency liquidity. This is exactly what the Bank is doing. Their foreign currency interest rate is quite low – 0.5.
Overall, I think it is up to the Central Bank to decide whether to reduce the interest rate or not, they should see and react accordingly. They should not hand out our gold and foreign currency reserves or burn them on the market, but provide lending resources. And they are doing this as well.
Didn’t they tell us after the fall of the Berlin Wall that NATO would not expand eastwards? However, the expansion started immediately. There were two waves of expansion. Is that not a wall? True, it is a virtual wall, but it was coming up. What about the anti-missile defence system next to our borders? Is that not a wall?
You see, nobody has ever stopped. This is the main issue of current international relations. Our partners never stopped.
http://www.globalresearch.ca/news-conference-of-vladimir-putin-enhanced-capabilities-in-armed-forces-careful-management-of-foreign-currency-reserves/5420602
Hi Saker, again!
“Third, the EU is already in recession and if that get’s worse, and it will, this will start pulling down many US banks who are heavily linked to the EU market”
-Pulling down the banks- this is what I referring to yesterday
-Instability due to the oil price wars- taking down oil producers who are indebted- taking down banks- triggering derivative pay outs (casino) due to defaults
-Triggering bail ins- it’s a frightening scenario
Like dominoes falling
The link I forgot yesterday is to
a post at my place which contains many external links
Including to Ellen Brown’s blog
and Market Watch explaining how the banksters are attempting to take their bail in scenario global
by 2015-
The repeal of Dodd Frank
“repealing the Dodd-Frank requirement that risky derivatives be pushed into big-bank subsidiaries, leaving our deposits and pensions exposed to massive derivatives losses”
“In passing a grand bargain $1.1 trillion spending bill, Congress approved an amendment that essentially puts taxpayers on the hook for bank bailouts. The change eliminates the so-called “push-out” rule, which was part of the Wall Street overhaul, the Dodd-Frank Act in 2010. The act specifically banned Federal Deposit Insurance Corp. or Federal Reserve protections to banks’ derivative losses. “
Thanks to these changes in the US and Canada has done this too- As has the EU- Depositors will be paying for derivative losses
This could all be triggered by this oil war.
So the Ruble, the Loonie and many other currencies being hit by the shenanigans of the US and SA could be the trickle that bursts the dam making devalued currencies the least of main streets worries
LINK
An aside- where have the commenters like MindFriedo and WizOz gone- the old timers?
I enjoyed reading them both.
:(
IMF issued SDRs need not be more of the same neo-liberal game. Trans-generational deep money leeches rent from every dollar in existence. Perhaps the new order will allow for sovereign currencies as well. Present IMF rules forbid gold-backed currency, and that, too, can be changed — back to what it was.
Putin’s stance towards the central bank in his Q&A seemed statesman-like. He wants the Westernisers on board and their legitimate aspirations accommodated. It’s a battle over hearts and minds, and the issue is the tide of history. Sexiness is another way of putting it. Maybe it would help if economically sophisticated proponents of free enterprise constrained by rules of fair play and decency such as Paul Craig Roberts and Ellen Brown were invited to Russia and made a fuss over, by the government and civil society.
sarz
Hey Angelo
Interesting comments, worth my time to reread-
Was talking about the concept of a free market vs the rigged game we have presently?
(in relation to a book presently making the rounds amongst the university crowd)
I generally see this scenario being presented capitalism vs some sort of communism- for lack of a better term
-Then I see capitalism associated with ‘free markets’
But there really aren’t any free markets
The system we have now is more akin to a plutocracy- was my reply
So, I felt the premise of the book, was completely off mark
In your response you appear to be
thinking along the same line- plutocracy as the system present day
Would I be correct in taking that idea away from your response?
“The Banking elite control world finance, they control the levers of credit and credit creation, they designed the system hundreds of years ago, and over time this system has been perfected and applied broadly in a slow encroachment upon industrial society as a whole.”
“market forces will correct the current artificial situation and within 2 years the crisis will be over”. The problem with that is that the very same Putin ALSO says that the West is completely manipulating the markets and not allowing them to act.”
The massive drop in oil prices if maintained into mid 2015 say at $40 a barrel will seriously damage or even destroy for example the more expensive US shale and Canadian tar sands producers. The disappearance of marginal oil producers plus the 5% annual depletion rates of oil fields worldwide will then lead to supply shortages. Higher oil prices will then be needed to encourage more investment so as to bring new oil fields on-line.
Putin may well be right here with his timeframe assuming the US doesn’t try and initiate a global confrontation with Russia.
VLADIMIR PUTIN: As I’ve already mentioned when answering a question from your NTV colleague, and as I’ve said during my Address to the Federal Assembly, after the fall of the Berlin Wall and the breakup of the Soviet Union, Russia opened itself to our partners. What did we see? A direct and fully-fledges support of terrorism in North Caucasus. They directly supported terrorism, you understand? Is that what partners usually do? I won’t go into details on that, but this is an established fact. And everyone knows it.
India also mentioned NGO’s formenting terrorism in the north east under guise of aid and missionaries. They said they found direct evidence of causing these tribes to attack police forces and forment discontent. Maybe because since China also consider them as Chinese lands to intervene with enough troubles and cause friction between the 2 countries. But that news did not get very far and it is good to see someone so high up the ladder mention this specifically! It is not supporting freedom from oppression but separatism and violence against the government because of idealism.
Hi Saker, First thank you so much for this blog, as a person of Slavic background but little understanding of the culture it has brought me into touch with an inner and little understood part of my make up.
Second, I came across this youtube video that explains the Russian Central Bank function in Russia amongst other things 5th column
related.
Central Bankers Suppressing Russian Economy
https://www.youtube.com/watch?v=VT085isnyB0
“Published on Nov 23, 2014
Economic hardship is being created by the foreign-controlled Bank of Russia’s monetary policies, to spread mass discontent and facilitate a Maidan in 2015 to remove Putin. So claims Evgeny Fedorov, citing the colonialist Central Bank law, established after Washington’s victory in the Cold War, and the system of fifth-column levers, methodically operated to steer the revolution.”
Interesting given the date it was published and what has just happened this week.
Thanks again.
whereas i am absolutely not an economic liberal, i have to disagree with the the saker on this issue.
china is keepng its capital controls for the exact opposite(!) reason as you recomment russia to introduce now. the cinese keep their currency artificialy undervalued in order to build up their own industry and to get into markets everywhere around the world.
the russian problem – which is not devaluation but the low oil price and capital outflow – could be handled very differently.
also – as to the “independence” of the russian central bank. the central bank in the us is of course not “independent”, it is run by the bankster oligarchy. but this is because they also run the whole country – in the end, bug guns anways beat big money, as you often mentioned.
who controles the security apparatus also controles the central bank – in the us, it just happens that is the very same people.
no formal governmental control means nothing.
the whole western system is primarily based on informal control- now by law, but by bribery and coercion, by PR and advertising.
western countries also have capital controls in place- if you don’t behave, you get the legal treatment, some anti-monopoly law, a visit by the financial authorities, and so on. nealry every major corporation yould be brought to court by existing laws and be more or less dismantled – especially the banks. but this only happens when they misbehave.
of course, western media will cry foul, but it still better than formal control.
Putin is very wise. You don’t tell your enemies what you’re up to, you whisper sweet nothings as you plot their demise.
MOSCOW (Reuters) – Russia’s richest man Alisher Usmanov has transferred his holdings in mobile operator Megafon and iron ore producer Metalloinvest to Russian entities after President Vladimir Putin urged businessmen to bring their assets home.”
Raiffeisen, SocGen Plummet as Ruble Slide Triggers Bank Worries
OK! It looks a lot like the financial crisis of 2008. Public balance sheets(tax)money was used to ‘fix’ a collapsing debt pyramid in 2008. The wealth of the 80% was used in the infamous bank bailouts.
There is only one large pool of assets left to ‘fix’ the system that supports the physical needs of seven billion people; that is the oligarchs. The billionaires will be bailed in to ‘fix’ the economic system. USD debt will be liquidated by the IMF + BIS plan to introduce the SDR as the world reserve currency. This will devalue the USD.
Most of the worlds oligarch elite assets are in USD denominated paper. Where else do you horde huge wealth? You can horde little wealth in gold, land, or businesses but these are subject to political seizure, so for all the envious and outraged the rich will be bailed in by the devaluation of USD assets. Everybody got to serve somebody!
CanSpeccy said…@ 19 December, 2014 00:49
“No proof of contention provided!”
re
” But only if Russia’s internal economy works freely, corruption is curbed and Russian entrepreneurs are free to create the mass of small and medium sized firms that provide the basis of a prosperous and free society.”
In the quotation prefixed by the re you make an unsubstantiated assertion in addition to positing a categorical imperative.
Your categorical imperative reflects that of the opponents, a variant of apres nous le deluge, normally translated as after (without) us, chaos.
You may find a fishing net a useful metaphor of ideology in so far as the more a fish wriggles in a linear paradigm, the more trapped it becomes.
Your initial recognition of unsubstantiated assertions is to be applauded, as is your reference to a blog where such practices border on the endemic.
America has placed Unjustified sanctions on Russia, and the North Western European Union have done the same thing.
If these sanctions continue, then there will be a strong Democratic Communist movement in Russia, because Russians have seen that Capitalism cannot provide Full Employment.
The Russian People now know that they need to be self sufficient in All Things, even though they will Trade with All Countries, and they will continue to sell their Natural Resources to those that want to buy them.
We see the lower Prices for Oil, and I have said that it is an advantage to have Natural Resources, but any Country that relies on them too much is not really a Country.
This has been clearly demonstrated with the South Stream Project, and with the European Union constantly saying that they must find Non Russian sources of Natural Resources.
The European Union may go quiet on that, but their thinking and mindset to want Non Russians sources of Natural Resources it abundantly clear to those who know these matters at http://news.yahoo.com/russia-strategic-problem-eu-tusk-231838237–business.html .
We know that that there have been so Many Lies spoken by Anglo-America with regards to Ukraine, and we know that America is planning some False Flag situation to wrongly blame Innocent Russia at http://www.globalresearch.ca/major-anti-russian-false-flag-coming/5419963 .
America may use nuclear weapons to destroy the Nord Stream Pipeline in the deep ocean, and then wrongly blame it on Innocent Russia, because America wants Germany to join Anglo-America in a War against Russia.
If something goes wrong with the Nord Stream, then it would be Vital that Anglo-America is not involved in any investigation.
This is because Anglo-America has and is demonstrating Great Bias against Russia, and Anglo-America has told so many Malicious Lies against Russia.
It might be an oceanic earthquake, but we know that America does not want Russia to sell Gas to Europe.
I think that it is best for Russia not to take any chances, and become self sufficient all of its needs.
After all, Russia is one seventh of the World’s Landmass, and Russia has every Resource, and so Russia can do Globalization with itself.
I think that Russia might Consider Chinese Companies setting up in Russia to produce the 1930’s to 1950’s products, as I briefly described in my other comment, and Russia will eventually buy those Factories, which will produce Russian Engineered products, and Russia will buy them with Oil and Gas.
There could be People who think that China and Russia might put on a Lying Act that China has plans to invade Russia in 5 years, because this would give the Democratic Communist a 75 % Victory in the upcoming Election.
This Act along with the 75 % Election Victory in a rigged Election if needed, would create a Global Economic Recovery.
Regardless of that, I think that a Democratic Communist Party would win 75 % of the Votes in Russia, because Russians believe in Full Employment, because they no longer want to be reliant on anyone after what has happened with Ukraine, because who really knows what the Russian Secret Intelligence Agencies have overheard or intercepted, and who really knows what Asia will be like in 5 years time?
I think that Russia should attempt this Democratic Communism, where the most Important Policy is that as Many People as possible are as Totally Reliant on themselves, and where Government and the Education System do have a role.
This is because the Capitalists will want Capitalism to win, and by doing that, the Capitalists will create Global Economic Recovery, because they do not want Democratic Communism to succeed, and this will provide better prices for Natural Resources.
The Real Reason behind the Russian and Anglo-American conflict is regarding the Human Right of any Country to provide jobs for All of their Workers, because Capitalist Anglo-America does not want Democratic Communism to provide Full Employment for any Country.
By the way, everyone, today is Saint Nicholas Day for Russians and for those Christians observing the old calendar. It was that saintly bishop who has performed many good deeds in his lifetime and saving miracles afterwards. I always think of this day as spilling over into western calendar Christmas, so Happy Saint Nicholas Day!
A.B. at 13:26, I think you have some useful comments, but your last paragraph is not correct. Yes, the west has the power at present, but it is not regulating its big corporations (though there is some infighting within those ranks, like sharks feeding on one another when there’s blood in the water). That is precisely the problem in the west, that corporate power with huge financial assets dictates policy and is immune to prosecution. Wasn’t always that way, but now it is.
Dear The Saker,
I didn’t pick up any defensiveness during the speech at all. He wasn’t really praising the RCB et al. He just said what they are doing now is correct but it wasn’t real praise or support??.
As per a post I made yesterday the upper house is putting forward a bill to look into the RCB so they have been exposed and it is for the Russian people to want the change.
Things will change but it can’t happen at the pace everyone wants – it needs to be done carefully – there are a lot of other things going on.
The reaction of the Western MSM says it all – they ignore all the stuff and print dross about the bear story and his love life – sums them up really….and Obama signs the Ukraine War Act. This is what Putin is having to deal with – he has to tread carefully.
I have faith in him and believe he knows what is going on and what they have planned and it may not be at the speed some like but it will happen. We all unfortunately live in a global economy and the BRICS have to look at what they do in this way. Things will change.
You seem somewhat negative at the moment – have faith – but don’t forget we are dealing with lunatics who may have more serious plans than we know beyond the ruble falling…..
Rgds,
Veritas
I briefly described an Economic opinion in another News Story on this Website, and this comment describes it in more in detail, on my opinion on the use of 1930’s to 1950’s style sturdy long lasting Products, and these would need to be improved on slightly.
For example those cars in those days had drum brakes, and the new cars would be modified with disc brakes, and bucket seats, and heaters, and a cheap but reliable radio, and seat belts, and improved suspension, and a demister, and slightly better aerodynamics, and any minor things that I may have not mentioned in this sentence.
Obviously bicycles, cars, vans, buses, and trucks, would come in different types, but these should be only a very few shapes and sizes, with as many interchangeable parts between all the models of bicycles, cars, vans, buses, and trucks, and no improvements could be made on them for 15 years, and this is why the design needs to be correct to begin with.
The same would be true of washing machines, stoves, and fridges etc, with as many common parts as possible among as many different products as possible, so that spare parts are never a problem, and where product that cannot be repaired become spare parts.
I think that the cars that are not computerized were more reliable and easier and cheaper for those who can repair it themselves, and if everyone learns how to tune these cars, then the exhaust will be relatively clean compared to Electronic Fuel Injection cars.
The same would be true of washing machines, sound systems, and Televisions would have to be in colour rather than black and white, and they would probably need to have remote control, because it is more convenient for some People.
The Education System would educate students on the Basic of car maintenance and repairs, and almost everyone would be a jack of most trades, but exemptions from this type education would be given to the best students who would go to University.
Those who do not go to University would be encouraged to learn a Trade, because they will earn more money, but not everyone should have to learn a Trade, because there is work for them in the Factories, the Farms, and other places.
There would be Communal Workshops where People could go and pay to have their cars and appliances repaired, and by paying for the service, then this would encourage People to buy the Workshop Manuel to learn how to repair some of these things for themselves after the fault was diagnosed by a qualified Tradesperson at a Communal Workshop.
This way, People should not ask what their Country can do for them, but what they can do for their Country.
This would require that most of the Products are of the style of the 1930’s to 1950’s improved models of cars, washing machines, fridges, etc, and where there are no computer chips, except in the unavoidable instances, but these products are cheap and sturdy and last a long time, and where many People can do some of their own repairs.
If they cannot then they must take it a quality place of repair, and pay the Tradespersons, because many things will be beyond unqualified People to repair, because they only have a limited knowledge of those matters.
This would include public Housing, and People might ask what are the Russian People going to do after they have all of their necessities.
The answer is that there is plenty of voluntary work in the military, because that is the way for a Country to defend itself from Nazis, but this must be voluntary, because paid volunteers are best for defending themselves from Nazis.
I would also include that Russia needs to move to becoming be self sufficient in food, and Gas can heat triple glazed glasshouses or triple glazed plastic houses, which uses hydroponics.
A Committee of Experts working for the Russian Communist Party need to have a Plan for Democratic Communism as quickly as possible, in case Anglo-America organizes a Colour Revolution, which may cause an early Parliamentary Election.
I really hate Krugman, but it’s good to keep tabs on the latest anti-Putin hit piece.
Here’s how the hitpiece ends:
And his swaggering strongman act helped set the stage for the disaster. A more open, accountable regime — one that wouldn’t have impressed Mr. Giuliani so much — would have been less corrupt, would probably have run up less debt, and would have been better placed to ride out falling oil prices. Macho posturing, it turns out, makes for bad economies.
Why does no one mention Russia’s large gold – and no doubt other precious metals – reserves. I liked Sheik Imran’s suggestion that Russia go onto the gold standard and back the Russian economy up with true value. I am not an economist. Perhaps someone can address this in the comments?
pcz
How about that? Russia to revive army bases in three oceans. 01.08.2012
The only response to this could be an asymmetric expansion of the Russian military presence abroad, particularly in Cuba. In Cuba, there are convenient bays for our reconnaissance and warships, a network of the so-called “jump airfields.” With the full consent of the Cuban leadership, on May 11 of this year, our country has not only resumed work in the electronic center of Lourdes, but also placed the latest mobile strategic nuclear missiles “Oak” on the island. They did not want to do it the amicable way, now let them deal with this,” Putin said.
There is no doubt that john Simpson must be caught and then tortured to confess what are the spying works he did in afganistan in 80 s and made it possibkle for terrorists to harm Russian lives there,
All BBC journalists are evil spies and must be hunted down as enemey combatants.
“Angelo, thanks for your post…but I have to disagree. I think that your name says it all..Putin will never, in fact Russia will never stoop to the dregs of the last paragraph of your piece. That belongs to the West unfortunately…to England and USA. – Ann”
Ann, I would have to say you are quite naive if you think Russia can’t or won’t play dirty in a rigged game. Also what does my name say? What kind of comment is that? Perhaps you’re suggesting I’m an anglo-zionist? I’m Greek Russian, my given name is Evangelos, does that help? I must say as well that I really could care less if you agreed with me, no need to grade my material with your stamp of approval….
Regarding dirty tricks, or cyber war please read the following from Jim Rickards, a western establishment insider:
“Russia also has a financial nuclear option that is even more threatening than freezing assets. In its July 27, 2014 issue, BusinessWeek reported the discovery of a Russian “attack code” computer virus buried inside the Nasdaq Stock Market systems. An official of the NSA said the virus “might be capable of wiping out the entire exchange.” The Russian attack code was discovered inside Nasdaq in 2010.
On August 22, 2013, the Nasdaq was shut down for half the day due to an unexplained computer glitch. To this day, no credible explanation has been offered as to what caused the shutdown.
Was it a hack attack by Iranians?
A practice run by the Russians?
Another bug planted by the Chinese?
If the explanation were straightforward, it should have been offered by now. If the explanation is nefarious, there is good reason not to tell the public. Investors everywhere might be panicked into dumping their stocks if they knew that their digitally recorded investments could be wiped out in the blink of an eye.”
Grieved, I think Putin has a limp and has had for many many years. another interesting thing is the way his arms swing when he walks…only the left swings…the right he keeps still at his side. this also is because of his sore back, which causes him to limp.
diogenes, I don’t think Putin will act like Herod and bring heads on plates. these people are his friends and he always tries to keep his friends.
Personally, I think he wants to go slowly and keep everyone on board.
I’m not saying that’s the best….its just what I think Putin will do.
Angelo, I’m sorry, Iwasn’t trying to be rude. I love your name…its like Angelos…which I love.
sorry. Its hard with internet to know how to take comments sometimes, and I don’t think I’m naive. But it doesn’t offend me that you think I am.
“Hey Angelo
….
In your response you appear to be
thinking along the same line- plutocracy as the system present day
Would I be correct in taking that idea away from your response?- Penny”
Hi Penny, there is no argument, we most definitely live within a plutocracy, and this plutocracy is multi-tiered. The well known names you hear about, from the political, financial, think tank, media and military elite such as Bush, Kissinger, Rothschild, Rockefeller, Bloomberg, etc, are merely the garment of something more subtle. We can attack the garment all we want but we are not going to touch the inner circle, this inner circle is more like a brotherhood that does not concern itself with money per se. Money to this group is a means which has little meaning other than as a tool to direct the masses, which they use to great effect through their willing intermediaries.
@ conditions over Crimea and other issues would then follow once Russia surrenders over Ukraine to the US and NATO.
It is obvious that this will never happen and that is the reason of the demented fury of the “West”.
I am tired of reminding so often that the creation of the “Autonomous Jewish Republic of Crimea” was and is the rationale of the whole Ukrainian rigmarole, as it was since 1914. Two world wars unleashed for that reason only, to fulfill the dreams of the Baal Shem Tovs and assorted Rebbes (with an Ihor Kolomoysky and Ratsenyuks, Kogans and Nulands as humble enablers of these dreams). How would you explain the abject subservience, which goes to trampling underfoot their best interests, of the EUSA govts to the demented demands of the Chabad Lubavitchers?
See:
Israel’s Secret Plan for a “Second Israel” in Ukraine, by Wayne Madsen
@Voltairenet.org (acually quoting: “Leaked report: Israel acknowledges Jews in fact Khazars; Secret plan for reverse migration to Ukraine”, Jim Wald, The Times of Israel, March 16, 2014).
Bob Kay, regarding our difference of opinion re whether the IMF/BIS system which will endeavor to replace the dollar will be a more fair system: I believe that IMF & BIS are controlled by the same people who control the present system. My belief is that it is intergenerational, some of its features having been passed down from the Venetian Black Nobility, from where it went to Hollland, then the Bank of England in nearly its modern form since 1694. The IMF, World Bank, BIS & WTO were added later– together with the very many think tanks and media propaganda outlets. This entirety is a single integrated entity, of whom our politicians & generals are the most visible employees..This entity gets its power from corrupting people financially, morally & spiritually.
Since I know that the IMF & Bis are not innocent of the desire of a one world oligarchy it is impossible that a system devised by them can have any other purpose than the continued purpose of bringing about the enslavement of mankind.
The techniques to produce our corrupt world have been passed down for generations by secret societies and organizations like those within the British Empire who controlled so many colonies. I am trying to say that the seat of evil is not merely the US ruling gangsters– but very much broader.
Alien Tech,
You note how difficult it can be to get rid of a nation’s debt. You might be interested to know that it is only since Venetian Times that debt became so inviolable. That is, it’s a uniquely Western custom. Prior to this there were debt jubilees very regularly. Search Michael Hudson debt jubilee for fascinating history & modern advocacy.
Also you note how difficult it seems to be for Russia to get clear of her western-integrated banking system. Remember that it was designed for her by the US and visited upon her.
I dont think Russia should do this. Not only does it cost a great deal more money, but maybe they can have a feeder line later on when things calm down. Russia also formally told the EU that the project is cancelled.
“The project is closed. Period,” Miller told the media about Russian-Turkish summit talks on the alternative to South Stream.
SOFIA, December 19. /TASS/. Bulgaria will issue all the required permissions required for starting the construction of the South Stream pipeline and keep working on the project, Bulgarian Prime Minister Boyko Borisov said after talks with the leaders of European countries on the sidelines of the EU summit in Brussels on Friday.
“I have received the full support and understanding of the European Council. Bulgaria should not be held responsible and pay the fines for the project’s termination,” the BNGES news agency quotes Borisov as saying.
“The answer to my question about South Stream was unequivocal — go ahead with implementing the inter-governmental agreements in order to avoid litigations and penalties and fines that may follow, the way it happened to the Belene nuclear power plant project. From this moment on all other liabilities are the liabilities of the European Union,” Borisov said. “Our country is obliged to stand by its obligations to prepare for construction work, in particular, for the seabed stretch of the pipeline and issue the required permissions,” Borisov said, adding he would now be waiting for a reaction from Gazprom.
http://itar-tass.com/en/economy/768044
Grieved,
I just want to point out as an aside that the budget surplus that Putin has wd not normally be considered a good thing, outside of the neoliberal econ model.
In Putin’s situation of not being able to protect his currency, and having the fallacious idea that investment must come from foreign currency it’s necessary.
However, modern monetary theory holds that states should invest (primarily by generating their own fiat capital) for the same reasons that companies invest– in order to improve & grow. The state should invest in its people, in education, health care, infrastructure, etc.
Just an aside.
WIZOZ,
I found Wayne Madsen’s Khazrs/Jews wanting to settle in Crimea interesting. Do you know of any earlier stories on this topic?
I am a bit suspicious of the suddenness of both EU & UN deciding after all this time to finally begin to criticize Israel. I guess I’m looking for an ulterior motive instead of the good-guy motive they are giving us.
Full support to CB, Medvedev, believes market will correct all? Obvious BS or ‘oversimplifications’.
But it’s time to think outside the central bank debt money box. The wellbeing of the people can be safeguarded by allowing local money to circulate, possibly with a demurrage charge (opposite of interest).
Best analysis of the Ruble crisis & alternative cures that I’ve seen:
http://russeurope.hypotheses.org/3166
Posted by Redford.
The Paul Craig Roberts video was interesting too, for its outspoken revelations of US wrongdoing.
Very interesting. So the interest rate is seen as an attempt to deal with the speculative attack. However strangling investment like that obviously cannot go on for long.
Hi Angelo
20 December, 2014 03:31
Thanks for your response :)
“Money to this group is a means which has little meaning other than as a tool to direct the masses, which they use to great effect through their willing intermediaries”
Indeed! I am a proponent of rejecting all that is put forth by the elites-
what do you think of rejection non-participation and non belief in the illusion as is created?
Keeping in mind there are more of us then them?
I will check back in
Hey WIZOZ
:)
glad to see you about :)
@Penelope,
Of course there are plenty of stories on this topic.
Try as an introduction:
Encyclopedia Judaica:
The Crimean Affair
@http://www.jewishvirtuallibrary.org/jsource/judaica/ejud_0002_0005_0_04717.html
For earlier stories on the topic (which put the things in a larger context):
League of East European States – Wikipedia, the free …
Max Bodenheimer – Wikipedia, the free encyclopedia
Trying to work out Putin’s real ideological position with respect to free market capitalism has to take into account the hand he was dealt with when he took office. What he has been doing is rein in the excesses, clip the power of the oligarchs, rebuild state and private sector economy, drag Russia out of the awful hole of demoralisation, despair, and hardship that was the post Soviet space.
He is still working with the hand dealt today in that the mechanisms of the economy are still capitalist, and there is no alternative other than to build support for reforms and new mechanisms as the need and popular support allows.
Simply, he has to work within the realities of the situation as it is.
I do not doubt his underlying values which will be seen in actions taken in response to the fomented economic and political crisis imposed on Russia.
As he is the only real leader of hope we have in the world we have to trust his judgment and that of the very smart people around him to act in the interests of the people.
@Penelope 19 December, 2014 02:19
Bulls*it!
Petras is an idiot who knows Brazil by far and get their “information” through the Brazilian MSM, violently against the government of Dilma Rousseff.
Petras should not even be seen, let alone heard.
Levy can be Minister of Finance, but Dilma is who has the pen.
This article is a nonsense. As usual when it comes from the man it came
The Central Bank of Russia and the Russian state successfully defended the Ruble from a speculative attack in the ‘market’. The Central Bank of Russia is part of the IMF + BIS system, which most commenters seem to think does the bidding of the Anglo-Zionist Empire. I no longer believe this simplistic conspiracy theory of politics and economics. This does not mean I think conspiracy does not exist. It is just most people see the oligarchs and the technocrats as the same entity. It is not! The technocratic ‘priesthood’ of IMF + BIS are charged with the maintaining a functioning world trade monetary settlement mechanism. The current Anglo-Zionist Empire is the empire of the USD, which IMF + BIS facilitated for some seventy years after Bretton Woods. Now the USD system is crippled by a debt legacy and this will have to be liquidated by default or hyperinflation. The Ruble survived the attack of the decaying dollar empire of chaos. Jacque Sapir appears to understand the role of Central Banking in the linked article…..The Russian Central Bank did not sabotage Russia and Putin on behalf of the AZ Empire of the dollar. Quite the opposite and one should ponder their belief that the oligarchs and the banksters are one and same evil entity…….
What happened to the Ruble?
“The Russian authorities reaction, after two days of painful hesitation, was strong. The Central Bank took some measures curbing the need for US dollars from banks and credit institution like a temporary moratorium on recognition of negative re-evaluation of securities portfolios and granted credit institutions the temporary right to use exchange rate computed for the previous quarter when calculating prudential requirements for operations in foreign currencies. Russian authorities also massively injected dollars on the FOREX and fostered a powerful rebound of the ruble on Wednesday December 17th. By doing so, they effectively “burned” a lot of speculators that have bought USD at 65-68 rubles for 1 USD and were expecting to sell them later in the day at a profit. Short-term speculators who bought USD by raising money from credit in rubles were forced to sell their USD at a higher price than the one at which they had bought the same amount. In a sense then the strategy implemented by Russian authorities worked well. It induced huge loss for speculators and pushed up the ruble till 60 RR for one USD.”
We know that Russia is a member of the Eurasian Customs Union, and this should not complicate matters for Democratic Communism in Russia, which I think is in Russia’s Interest.
This is because every Country has a Moral Duty to ensure that their Country has Essential Industries, because these are in the National Interest.
These include basic food, farming machinery, transportation on land, aviation, shipping, basic clothing, essential household products, basic electrical and electronic products, and the military industries, water, gas, and electricity, telecommunications, and Natural Resources, and anything that I may not thought of, but is an Essential Industry.
I believe that All Countries should be doing that, because it will provide Full Employment for their Country, along with giving a Country Sovereignty, Independence, and Security.
I think that any crop can be grown in clean and healthy glass pots with no holes at the bottom or sides, and where the amount of water and fertilizer is properly monitored and regulated.
I think that all types of crop plants could be grown like this even in Siberia, if there is enough sunlight or artificial light, as long as it was heated in triple glazed glasshouses or triple glazed plastic that are heated with gas or electricity or even coal.
I think that I need to define what my version of Democratic Communism is, and it is neither Left Wing nor Right Wing, because I do not consider Policies to be Left or Right, but I consider Policies as being bad, foolish, or incorrect, or as being good, wise, and correct.
I do not know that much about the Russian Communist Party, but I think that everyone thinks that they are Extreme Left Wing.
I believe in Basic Human Rights, and perhaps there should be a new Democratic Party with Communist Policies, who say they are neither Left Wing or Right Wing, but will present Policies that they consider to be of the Good, Wise, and Correct Wing, and let the Voters decide at the Election.
Perhaps the Communist Party of Russia cannot perform as effectively as other Political Parties on the International Stage, because of all of the propaganda that the Western Media would use because of the past USSR days, but they do not mention the present day Anglo-America’s Crimes against Humanity.
I could call my Party the Capitalist Party and be as Communist as I wanted to, and I could call my Party the Communist Party and be as Capitalist as I wanted.
The Economic Policies that I mentioned is in my opinion a proper combination of Regulated Free Enterprise and Communism, and the term Regulated Free Enterprise is not Capitalism, and it is defined as what Unbiased Experts would say was a Fair and Just Business practice.
Essential Industries should be owned by the People through the Government, and the rest can go to Regulated Free Enterprise from the Eurasian Customs Union Countries.
Anglo-America promised President Mikhail Gorbachev that NATO would not go to Central Europe or to the Balkans to begin WW 3, but we have seen the Lies and the Schemes from Anglo-America since the end of the Cold War, on how Anglo-America Cannot be trusted, and Must Not be trusted.
This is why Many People think that Russia needs a {roper Combination of Free Enterprise and Public Ownership of Essential Industries as I have described in my other comments in this News Item, until Anglo-America leaves Central Europe and the Balkans, because Anglo-America has no legitimate business being there, and Anglo-America has clearly demonstrated that they have no good intentions for Continental Europe.
The current Russian Government has an Obligation to implement the best Policies for their Country.
Does anyone like riddles?,if so I will post one to lighten up the mood,with so much angst on the blog, leading up to the festive season.
This riddle was posed to me 25 years ago…..
If anyone is interested I will post it on the next new thread.
cheers.
There are People who are wondering why the Soviet Union was created, and perhaps we might never know, but there are some Undeniable Facts regarding those times.
We know that the British Empire wanted to be the Global Power, and to do this Britain had to keep India as part of its Empire, and to do that it had to Prevent India from expanding northwards into Russia, and taking over many Countries including Ukraine and other Eastern European Countries, and expanding to the border of Western Europe
This is why the British Secretly paid the Jewish Karl Marx to write the Communist Manifesto and Das Kapital, and this was used by the British to in invent the Soviet Union at a convenient time, which was WW 1.
I do not think that Lenin knew the real reason, but he was doing what was in his own Interest, and in Russia’s Interest.
The British knew that Communism as described by Karl Marx was never going to work, but it would make the Soviet Union a strong Country which could fight off attacks from Germany and India.
Once the Soviet Union was formed, Britain made India think that its Interests were with being a Puppet Colony of Britain, and Britain knew that there would be a WW 2, and the Soviet Union would be needed against a resurgent Germany.
Those Countries, including Russia that were part of the Soviet Union before WW 2, and even some of those Countries that were part of the post WW 2 Soviet Union like Poland would have been conquered by Germany or a Country or a Coalition of Countries that were South of the Soviet Union, and this is not what the British Empire needed, because of some Continental European Countries that Britain needed as Allies or Puppets.
Anglo-America knew that they could reverse the situation at some time in the future, and that came with the collapse of the Soviet Union.
The Anglo-American Empire came into existence in WW 1, when America came to help Britain win WW 1.
The correct Economic Policy for any Country in my opinion is a Proper Combination of Regulated Free Enterprise and Public Ownership of Essential Industries as I have described in my other comments.
This would including Banking, where Old Technology is used, such as Passbook Accounts, and where Banks are made to look like are Private, with Pretend Capitalism, but they would effectively charge 0 % interest on houses and on business buildings, because they would deduct the 5 % interest paid on those loans from the Principal, and so they would be giving Loans at 0 % on these, but they could charge interest on some other Loans.
People should be self reliant, and they can grow crops in large rectangular wooden boxes with soil in it in glasshouses in difficult climates, but there is enough farming land to supply Russia.
The cars that I mentioned in my other comment should last 30 years, and have improvements like fog lights front and back, and while many products will have electrical system, they should not have an electronic system, or a computer chip.
People can make those cars from the spare parts of wrecks one day, and those cars and other products only have to do their job, and People will be able to have foreign cars and foreign products but they will have to pay tax on them.
It would be good if an Electrical Company made only a minimum amount different sizes and types of electrical motors from small to big, and from weak to strong, and only these could be used in Russian Products, and the same should be true of bolts, but we that mobile phones and computers need computer chips.
It is my opinion that the Proper Combination of Regulated Free Enterprise and Public Ownership including Public Housing which is a source of income for the Government, will provide Full Employment for the Citizens of a Country.
Wow this is exciting!
With a GDP similar to the Italy, is Russia able to put a dent to World Geopolitical Arena, without going NUCLEAR?