Well, I’ve much more to say about this and I will in later posts. But, I’m tired, today. So I’ll just jot a few lines.
MOSCOW (AP) — Official government figures show that the Russian economy was 4.6 percent smaller in the second quarter than the same quarter the previous year in the wake of plummeting oil prices and Western sanctions.
The sharp quarterly decline reported Monday by the country’s state statistics agency is more than double the 2.2-percent contraction recorded in the previous quarter.
The Russian economy is in recession for only the second time in President Vladimir Putin’s 15 years in power as a result of the slump in oil prices, the country’s main currency earner, and Western sanctions over Moscow’s involvement in the crisis in Ukraine.
Meanwhile, the Russian currency dived again Monday, falling below 64 rubles a dollar. The ruble’s woes over the past year have helped fuel inflation and hurt consumer demand.
That’s a pretty significant contraction. And, it doesn’t seem there’s much of an end in sight, until Russia changes their economic model. They will at some point and time in the future, we just don’t know when.
Personally, I believe the days of $100/barrel is over……. that is to say, unless the US and Canadian governments move to artificially thwart production of our resources of hard oil. Canada added a tax to the area where they extract their hard oil. It’s hurt the companies engaged there.
The difference between the US and Russian economies is that the US feeds people and therefore can industrialize properly. The importance of the Ukraine to Russia isn’t a port. It’s a huge expanse of arable land. Most of the land east of the Urals doesn’t produce much of anything.
With China’s economic woes and Brazil’s ….. Russia should combine with them to have some sort of economic union, along with India, who is entirely dependent upon energy imports to maintain and grow, to compete with the US dollar. That’ll prolly work!!!
There is no real free enterprise without real liberty. I’m not saying the US has much of any of that today, but, I will say Russia, China, and Brazil have less.