Russia: Ease Moscow’s Suspicions

It is almost impossible for the west to see reality as it is. America is in decline since 1970, its hegemonic power is nearing the end of its shelf life. America has learnt the hard way that even with the mightiest army it failed to defeat untrained fighters with basic weapons. Russia has been a power through out history, something ingrained in her mindset, she will always act as a leader and not a follower, something the westcan never stomoch

It is interview of Russian economist Michael Khazin. It not my sights, simply is an interesting thought:
Posted By: The genius 12/10/2008 10:13:59 AM and below 5 posts.

"YTRO" talks to the known economist, in accuracy predicted a default of 1998, former economic adviser Boris Yeltsin, the president of the company of expert consultation "NEOKON" Michael Khazinym

"Y??????" talks to the known economist, in accuracy predicted a default of 1998, former economic adviser Boris Yeltsin, the president of the company of expert consultation "????????????" Michael Khazinym.
"Y??????": whether you Agree what the main originator of an economic crisis are the USA?
Michael Khazin: If to do accurate informations one are guilty not only the United States. There is a world financial system. In 80th years when bases of present crisis have been incorporated, this system borrowed third of world. And in crisis it is guilty. Certainly, basis of this system are the USA, base currency ??? the American dollar, and the basic institutes ??? the American investment banks, the American insurance companies, etc. That is in such formulation are sense though it needs to be used cautiously. Thus it is necessary to consider, that the very first crisis, the answer on which became the development of policy led a present state of affairs, there was all 70th years. If to look at the average salary of the American worker, (in relative expression) it reached a maximum in 1968 - 1971. After that the salary only fell. And the answer to crisis 70, I shall remind, there was a whole series of events. 1971 ??? a default to the USA, refusal of gold maintenance of dollar; 1973 ??? oil crisis, 1975 - 76 ??? wild recession with stagflation. The answer to this crisis became a policy of the Floor Walker (predecessor Alan Grinspena on a post of chapter ?????? ??? "Y") and administrations of president Carter. There is a basis to consider, that this policy prepared under Carter's second term. However Carter has lost, the president became Reagan why also this policy has received the name "??????????????????????".

Still economists of XIX century have deduced the global law of capitalism: it consists that efficiency of the capital all time falls. Why? Because the problem of the capitalist consists in underpaying to the worker. As a result of it speed of accumulation of the capital always exceeds speed of compensation of a labour, that is compensation for work. And the labour is a basic source of demand, as a result, demand lags behind the offer of the goods.

Good point! And someone will have to shake the system up but you and gleeno keep saying that a run on the dollar is near and the US will collapse over its fake banking system. Meanwhile , yersterday the US sold 30 Billion worth of debt at nearly 0%, and the demand was so high that they could have sold four times as much. So while we are getting money virtually free Russia has been downgraded to near junk bond status.

Sorry

Why there will be no recurrence of the prices for oil during disintegration of the USSR.
1) now for 18 years is closer to date of a full exhaustion of oil. It is remembered by traders.
2) now there is China and other growing economy. And if in the USA there will come long and deep recession, the prices for oil will not fall strongly as China, Japan and Russia having the largest gold and exchange stocks in the world, stimulate on this money internally consumption and the state orders for the economy, as to be reflected by a rise in prices on oil.
3) analytics and psychology of traders. They already saw 140 dollars for barrel and as now high variability, they easily will start to force the prices to the previous maxima.
4) OPEC will reduce quotas, and will not listen to more USA as in 80 about increase in extraction to do much harm the USSR.
5) war nevertheless proceeds in oil fields of Iraq.
6) the countries not OPEC can create artificial deficiency of oil. (Venezuela, Russia, Norway, etc.)
7) boom of automobilization of China.

The low prices for oil have led to disintegration of the USSR because then have ended money:
1) was not market economy, a market agriculture. Now in Russia is.
2) was not market export of arms. Now is.
3) was not gold and exchange stocks and a financial healthy idea them to operate. Now is.
4) was not in the world of other centers of growth of economy and selling, except for the West. Now is.
5) was the population of the USSR more on many tens millions, demanding then centralized consumption. Now less also there is no centralization.
6) were tens external allies, to which USSR helped. Now is not present.
7) was militarization of the USSR. Now is not present, only a necessary minimum.
8) was not globalization, interdependence, interosculations. Now is.
9) was not anti-recessionary management. Now is. Putin will make all possible and impossible.
As to a default of 98-th then mass scale plunder of the budget and credits of IMF by oligarches and the corrupted officials has been carried out. Now Putin every day personally supervises monetary streams.
Here to you and the answer: will not wait an economic collapse in Russia!

you think Russian economy will match the US in 10 years? Are you crazy? Russians will not sow for 12 hours, yes but you better figure something else out then becasue you have no domestic economy besides oil and nat. gas, which I am sorry to say were more inflated in value than a house in Arizona! The Russian elite have done very well recently, buying football teams and big houses in London but how did they get rich? ALL of them, the same way - oil not very sustainable - Americans get rich from everyway - computer technology, media, financial services, agriculture, realestate, production, transportation etc. Plus tose oligarchs are very small in number, you cant claim that the wealth of 15 people is a shinning example of a "new" Russia.

Why FED HAS uplifted SOME TIME BACK RATE ABOVE 5 % And PERSISTENTLY HELD, WHILE the INCONSISTENCY of the HYPOTHECARY COMPANIES And FURTHER PROBLEMS At FINANCIAL STRUCTURES, the INSURANCE COMPANIES, MILLIONS AMERICANS, and even at the automobile companies HAS begun? It is nonsense or consciousness. The American economy is various, but its competitiveness all below and below every year. FED weakens dollar meaningly to keep economy, underestimating cost of the goods in comparison with import, but simultaneously it is necessary to hold dollar strong that there was an investor. It is a plug. The dollar will fall to euro till February to 1,5 that the money poured in in the American economy from some part of " plan Polson " have helped the industry and services. Further Obama will begin still a set of liquidity and there will be a strengthening dollar, and further a cycle will repeat. Money put under the arrangement with other central banks, the basic investor is Japan. Put because while always give both consumption and economy the greatest in the world but if competitiveness of economy will weaken further, and there will be other greater economy which reliably involves money streams of money will go there. It can be China or the Europe. Also, the zone of free trade is extremely important for America, differently there will be no place to market in the world production made on extra means. Without a zone of free trade ?????????????? the present depression.

Russian GNP is 2 trillion US is 14.5 Trillion
Russian population lost 2 million since 2002 US population has grown by 20 mil. since 2002
Russian GDP per capita is $14,000 US GDP per capita is $47,000
Russian Debt BBB US Debt AAA

I dont understand how you can reasonably expect the Russian economy to equal the US in 10 years. Your economy would have to grow 700% its current size to be at the US level and the average Russian person would have to see their pay increase 300% to equal that of Americans. Judging by the current climate and the fact that Russian GDP is expected to decrease by 2-4% in 09' do you think that is realistic or is your media being a little to optimistic (as usual)