As another Lame Cherry exclusive in matter anti matter.
For all the strengths of Russia, the complete Russia is in a critical position, which was completed by American and European sanctions. Russia at the moment is going through a Carter Stagflation with a German Weimar Republic economic collapse.
Russia is spending a fortune on weapons. This is putting too much money into circulation. It does not matter that Russia is absorbing a great deal of it's oil sales into gold, from BRICS nations, Russia has a Bush housing boom as in 2008 which installed Obama which is now in collapse, as the rates were raised for mortgages from 8%, as the rate now to attempt to control inflation from all that war spending and oil revenues, to 30%.
This is not an economy which is strong. It is single dimensional and precarious. That was by design by the Western financiers.
None of this is going away, even with at Trump Peace in Ukraine. Russia is addicted to military spending to drive it's economy or it will collapse. 2025 AD is going to expand upon this.
Russia Budgets for its Forever War - CEPA
In all honesty, if Donald Trump can bring about a peace in Ukraine and lift the sanctions for oil to flow into Europe and not China for that pressure switch, Russia will be able to shift to at least some consumer goods, even if they will be oriented to cheap ammunition for American gunners.
The low borrowing rates caused a boom in the real estate and construction sector that helped maintain employment and boosted economic growth which became even more important after the West imposed the extreme sanctions regime on Russia following the invasion of Ukraine in 2022.
However, the booming housing market also contributed to rising inflation which peaked at over 9.1% in July, although it fell off in September to 8.6% as the CBR’s high interest rates began to have an effect and the Russian economy cooled as the military Keynesianism effects begin to wear off. Nevertheless, the CBR is widely expected to hike rates by another 100bp at the next monetary policy meeting at the end of October.
As inflation is not being driven by traditional money supply problems, but rather by heavy military spending that has been overheating the economy, the CBR teamed up with the government to introduce non-monetary policy methods to cool the economy, starting with ending the mortgage subsidy in a major change of direction: the regulator has switched from policies to support growth in the face of sanctions, to tackling head on the high inflation rates, which have become a major headache. As a result of this change in a pessimistic medium-term forecast, the CBR predicted that both growth and consumption will fall sharply in 2025.
Russia is under Vladimir Putin, now in a twenty year expansion, which began with George W. Bush buying Russian oil, which Mr. Putin used to build nuclear bomb cities in mountains, and expanded to next generation nuclear weapons. This is Russia.
Here are Russian exports. Yes sanctions are the definition in limiting export expansion, but Russia is as archaic as America was when dominated by England in 1800 in basically raw materials.
1 | Crude Petroleum | 121,443 |
2 | Refined Petroleum | 66,887 |
3 | Unspecified commodities | 55,265 |
4 | Coal | 15,987 |
5 | Petroleum Gas | 9,501 |
6 | Wheat | 6,399 |
7 | Semi-Finished Iron | 6,090 |
8 | Gold | 5,740 |
9 | Platinum | 5,121 |
10 | Raw Aluminium | 4,640 |
11 | Sawn Wood | 4,506 |
12 | Oils | 4,458 |
13 | Copper | 4,137 |
14 | Diamonds | 3,768 |
15 | Chemical Fertilizers (Nitrogen, Phosphorus, Potassium) | 3,165 |
16 | Nitrogenous Fertilizers | 2,896 |
17 | Frozen Fish | 2,497 |
18 | Hot-Rolled Iron | 2,462 |
19 | Gas Turbines | 2,352 |
20 | Potassic Fertilizers | 2,337 |
Russia is a precarious economy. It focused on wasting resources on advanced weapons which in peace will become a millstone around that nation's neck. Russia can not shift to a consumer production economy as it can not compete with forced labor by billions in China and India.
Russia is facing a recession of major proportions. The fact is that peace with Donald Trump is not going to be the end of Mr. Trump's necessity of dealing with a Russia which is in stress. President Trump is going to have to reach a trade agreement with Vladimr Putin as both nations rebuild their exports to stabilize their economies.
The Russian utopia has affordable consumer prices, but that is due to consumers are not earning a first world wage. This white paper is a warning of what is out there, because as with war, with peace there comes responsibility in America will have to be Moscow's keeper as they shift from war spending.
Nuff Said
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