Monday, December 2, 2024

The Russian Utopia




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

Oct 11, 2024 ... As per the 2025 budget, the Kremlin is set to escalate military expenditure by a staggering 25%, reaching $140bn. This not only marks a post- ...


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.


1Crude Petroleum121,443
2Refined Petroleum66,887
3Unspecified commodities55,265
4Coal15,987
5Petroleum Gas9,501
6Wheat6,399
7Semi-Finished Iron6,090
8Gold5,740
9Platinum5,121
10Raw Aluminium4,640
11Sawn Wood4,506
12Oils4,458
13Copper4,137
14Diamonds3,768
15Chemical Fertilizers (NitrogenPhosphorusPotassium)3,165
16Nitrogenous Fertilizers2,896
17Frozen Fish2,497
18Hot-Rolled Iron2,462
19Gas Turbines2,352
20Potassic Fertilizers2,337

 

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.


Russian industry warns central bank's high rates hurt crucial new ...

Oct 23, 2024 ... Alexander Kalinin, head of SME lobby group Opora Rossii, said he expects interest rates on loans for SMEs to be 30% next year, which will reduce ...

Russia hikes interest rates to 21%, highest since 2003 - Le Monde

Oct 25, 2024 ... Russia's central bank hiked interest rates to 21% on Friday, October 25, taking borrowing costs to their highest level in more than 20 years.

Russian economy on brink as mortgages explode and home buyers ...

Nov 7, 2024 ... The maximum level mortgage rate at several banks has now gone over 30%, in a move that is likely to have shattering consequences for ...

Today, the Russian Central Bank increased interest rates to ... - Reddit

Oct 25, 2024 ... Today, the Russian Central Bank increased interest rates to 21%, the highest rate in the Putin era · Comments Section.

Russia's key interest rate is now at a record high - Meduza

Oct 29, 2024 ... Last Friday, Russia's Central Bank raised the key rate to 21 percent — the highest it's been since its introduction in 2013 ...

Russian central bank hikes interest rate to record-high 21%

Oct 25, 2024 ... Russia's central bank has hiked the key interest rate by 200 basis points to a record-high 21% in a bid to fight inflation, fuelled by military spending.

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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