Friday, December 12, 2014

Ben Aris — Business News Europe — Russia is running out of money – not…

…The Economist ran a cover story claiming that, "Russia is closer to crisis than the West or Vladimir Putin realize," because it was running out of money.
More Moronism. Last time I checked Russia was a currency sovereign that floats its currency and has ample reserves to meet foreign obligations of its banks and firms, which even Moody's admits.
Why don’t the anti-Russia crowd just confess that what it is passing off as "analysis" is actually wishful thinking?
Eurasian Development Bank — Business News Europe
MOSCOW BLOG: Russia is running out of money – not…
Ben Aris

3 comments:

Matt Franko said...

why does he then still use the phrase "hard currency"?

What is "hard" currency?????

As compared to "soft" currency????

??????

Still misses the mark here...

PeterP said...

They don't understand much but the fact is that Russia IS running out of money. Their problem is not low employment that can indeed be cured with MMT and more roubles, their problem is that they don't produce enough food and much else. They NEED dollars, roubles are not enough. And dollars come from oil. Low oil price, few dollars, and they can't import food, machinery, cars. They have a much more serious problems than too fwd roubles floating around.

Tom Hickey said...

That's an issue of real resources, which Russia is already addressing by entering relationships that circumvent use of the USD with countries that cannot easily be pressured by the US and who are also interested in escaping from US hegemony and unipolarism, led by BRICS and the parallel international institutions they are creating for this purpose.

In fact, this is basis of the chief geopolitical and geostrategic moves on the great chessboard right now and it looks like this will last for some time. It's going to be a dicey game that is existential for many parties. While it is chiefly economic at the moment, it could go military and alliances are now being formed. Russia is developing strategic alliances with China, India, Iran, Syria, and North Korea at least. Elsewhere, Putin is trying to scoop up the soft power that the US is shedding rapidly.