As oil falls, Russia choked by military, social spending
Source: Reuters
By Darya Korsunskaya and Elena Fabrichnaya
MOSCOW Tue Dec 30, 2014 3:01am EST
(Reuters) - Russian authorities are facing some unpalatable options as they try to keep the economy afloat - unless they can persuade President Vladimir Putin to curb massive military spending.
Officials fear that without limiting the defense budget, the government will have to raise taxes, increase the pension age or print money to prevent the state deficit from running out of control.
Despite a crisis brought on by diving oil markets and Western sanctions, they believe Russia can muddle through next year provided the price of crude, its dominant export earner, holds near current levels.
But even at $60 per barrel, the present oil price is little more than half what the Kremlin needs to balance the budget, and it is quickly running out of money.
Read more: http://www.reuters.com/article/2014/12/30/us-russia-crisis-budget-idUSKBN0K80EK20141230
Oh, but the sanctions didn't hurt at ALL! Right, Vlad? Vlad?
belzabubba333
(1,237 posts)jakeXT
(10,575 posts)"The big advantage we have with Russia is we've got a dynamic, vital economy, and they don't," he said. "They rely on oil. We rely on oil and iPads and movies and you name it."
http://www.bbc.com/news/world-us-canada-30629200
belzabubba333
(1,237 posts)it killed all their potatoes and my family was run out of county cork
1step
(380 posts)Bastards!
Sherman A1
(38,958 posts)There was plenty of good in Ireland until it was taken to England.
librechik
(30,673 posts)problem solved
DetlefK
(16,423 posts)What do you think, who's fighting marijuana-legalization in the US?
The beer-producers!
IthinkThereforeIAM
(3,075 posts)... every time marijuana legalization comes up in state and national legislatures, the beer/alcohol lobbyists go into full swing to fight it. Marijuana is a big competitor for beer/alcohol industries. If a person has some weed, they are less likely to go hit the bars and pick up a 12 or 15 pack at the 7-11. And are healthier for it.
I have said this for over a decade.
jwirr
(39,215 posts)USSR down also.
And yes once you are overstretched with military spending then social spending adds to the problem. All too often (like the USA) the country in trouble starts cutting the social spending at home in order to maintain the military spending and thus causes it's own trouble there.
Stop your damned aggression against your neighbors and get back to working with your own people.
onwardsand upwards
(276 posts)... the democratically elected president Viktor Yanukovich?
Was it a legitimate revolution, or a CIA-inspired "regime change"?
Do you really think it would be reasonable for Russia to allow their base in Sevastopol to be in a country with a western puppet regime? What course of action would have been reasonable?
jwirr
(39,215 posts)or continue to use all their money for military. Putin might like to try diplomacy.
Posteritatis
(18,807 posts)It isn't bloody complicated.
If the United States did that to Canada or Mexico most of the cheerleaders here would be in the streets with pitchforks, but since it fits the neat little Manichaean geopolitical worldview, and works so well with the "foreigners don't have agency anyway" meme, so many around here have it's okay.
onwardsand upwards
(276 posts)... it already controls them completely!
A better analogy would be: suppose Russia engineered a coup in Canada, and installed a Putin-friendly puppet as Canada's new leader. Would the US sit by and watch all those bases in Canada come under Russian control?
Might the US, in that case, "seize" Canada?
Posteritatis
(18,807 posts)florida08
(4,106 posts)joshcryer
(62,265 posts)The way people throw it around.
Hell, even if it was a coup, Putin has never won an election, so you can't overthrow an unelected person.
freshwest
(53,661 posts)The Saudis are financing their own green revolution with the sale of their dirty oil, and most of the world will do the same. If that's part of the hysteria about the world order the article is so eager to sell us, it must be bad for the Koch Industries.
Regarding Putin, don't forget he's 'very' popular... or so we hear and 'elections don't matter,' or at least some claim.
Okay, I'll quit, shouldn't post in the middle of the night anway.
Happy New Year, Josh.
Igel
(35,270 posts)The sanctions have a knock-on effect, even though they were first.
A greater effect has been increased oil production in the US and Canada coupled with Western conservation efforts and renewable energy. A little drop in petroleum demand produces a big decrease in prices.
If the West sticks with them the sanctions will hurt more because Russia last time turned to Western capital markets. The only problem would be if China uses all the surplus trade dollars to bail out Russia. Then we have a Chinese master for a Russian lapdog. The two are fairly similar in many ways.
Sunlei
(22,651 posts)'Leaders' like Assad. Or cut the price of Russia domestic gasoline in half to help his own people.
nichomachus
(12,754 posts)Obama, Victoria Nuland, and the other corporatists must be giddy with joy. Now they can be masters of the world.
Adrahil
(13,340 posts)They just want to be left alone to goggle former imperial possessions in peace!
Tarheel_Dem
(31,220 posts)nilesobek
(1,423 posts)Russia is not Iraq or some banana republic. Nuland and crew will be lucky to get out of Ukraine alive. Many of the mercs have already been targeted and assassinated by Eastern rebels.
vkkv
(3,384 posts)Finally some GOOD NEWS in the international arena.
DeSwiss
(27,137 posts)The West is trying to make their stupid sanction moves seem effective. It's hurting Europe more than Russia. Ask their farmers. Ask the French shipbuilders. Sanctions are an act of war but no one in this stupid country objects. When everyone knows its the The West whose been living off their credit cards for decades. We're the ones about to fall.
They wanted Russia to sell their gold.
They're not selling.
They and China are still buying gold in anticipation of the GREAT COLLAPSE!
- It's really kind of funny how people here think that a couple of weeks of low oil prices is going to bring Russia to it's knees. When in truth, it is the West lives on its knees but don't know it because its the only view most have ever seen......
newfie11
(8,159 posts)Tarheel_Dem
(31,220 posts)Oh wait......
newfie11
(8,159 posts)Foxxxxxxx news
For that matter all of our media is owned by 6-7 oligarchs.
Truthfully I get more world news from media in other countries.
Tarheel_Dem
(31,220 posts)newfie11
(8,159 posts)Tarheel_Dem
(31,220 posts)Response to Tarheel_Dem (Reply #39)
Post removed
joshcryer
(62,265 posts)The reason being that mortgages in Russia are very high interest, so Russians can't move from their homes, and they have little resell value, again because of those high interest rates. So buying and selling homes is a very real issue there.
The United States isn't going anywhere.
Until people recognize US economic dominance in the world, they will bury their heads in the sand.
nilesobek
(1,423 posts)in Siberia and elsewhere that were closed during ww2. They intend to stockpile enormous reserves of gold. The drop in gold prices was felt mainly in India, London and Washington. No one knows how much reserves they have. If they pick the right time to do a gold dump it could severly damage many economies. How long can the Saudis keep up the low oil prices? Until the next terrorist attack? IMO the longer this drags out the more it favors Russia.
Baclava
(12,047 posts)So I bet Russia KGB knows wars stimulate it's economy now, too. I hear the tank wheels grinding.
I hope the Saudis are ready for an attack on their oilfields by Russia through Iran, 'Let the Global Oil Wars begin!'
Would we risk global thermonuclear war over the Saud's oilfields? Are they really our friends?
they should make a movie
1step
(380 posts)Yep, I'm a nerd!
Baclava
(12,047 posts)'The CHOAM essentially controls all economic affairs across the cosmos'
1step
(380 posts)And I've been semuta-free for nine years now!
Babel_17
(5,400 posts)let the rabble have the rest.
I was told I could get my nerd card stamped here.
P.S. "Remedy this situation! Restore the Spice production...or you will live out your life in a pain amplifier!"
quadrature
(2,049 posts)same for other mining activity.
trying to tax other activity,
the people tend to fight back
pampango
(24,692 posts)The ruble is worth less than its ever been: The ruble was worth about 27 to 1 U.S. dollar when Vladimir Putin was handed the presidency by Boris Yeltsin. Just before he took office, the ruble was extremely volatile, but Putin managed to stabilize it and gradually grow its value against the dollar all the way up until the 2008 global economic crisis. Just before the crisis hit in late 2008, the ruble was worth just under 24 to 1 USD. The ruble hit an all-time high, meaning its worth the least its ever been, this month when it was measured at 79 to 1 USD. Russia is in its worst economic crisis since 2008, mostly due to free-falling oil prices but also because of Western sanctions over its alleged involvement in Ukraine.
Russia is now 10,000 square miles bigger than it was in 1999: Although a number of Western countries will dispute that it was legitimate, Russia grew by 10,000 square miles when it annexed the Ukrainian peninsula of Crimea in mid-March. Russian military forces also now occupy South Ossetia and Abkhazia, two breakaway Georgian states that together make up just under 5,000 square miles.
Civil liberties and freedom of expression are weaker than ever: The government has gone after political dissidents -- most recently punishing the younger brother of anti-Putin crusader Alexei Navalny on Monday with imprisonment for three and a half years -- taken over a number of private businesses and expanded its state-owned media. While Russia never had a fully free press, its now ranked in the lower percentile in Reporters Without Borders Press Freedom Index. Putin championed anti-gay legislation that went into effect July 2013 banning propaganda of non-traditional sexual relationships and has vehemently upheld that law with strong crackdowns on the activities of LGBT rights advocates.
http://www.ibtimes.com/vladimir-putins-15-years-power-5-ways-russia-has-changed-1771020