Putie-Poot must think Russia is "out of money!".
Russian President Vladimir Putin has urged a gathering of billionaires and business leaders to bring money back to the country from offshore accounts, warning that funds kept abroad could be frozen.
Everybody out there is looking for "mo' money!"
Bring me your dollars. This guy is his own (and his country's) worst enemy.
ReplyDeleteMichael,
ReplyDeleteWhy do you tollerate this pimping for Putin going on here? Some obviously fake stories are only beamed out of Sputnik.ru and MikeNormanEconomics. Why does an MMT site allows itself to become a loughingstock?
Right Mike he thinks "money is money!"....
ReplyDeleteThis is the problem with the use of unsound words like the metonym "money"... by tautology any use of a metonym is imprecise and nebulous and leads directly to confusion...
btw they dropped rates the other day but they still have them a 14% iirc so still very stimulative ... continued bullish for the Russia economy imo...
Pete I dont think I am pimping for Putin here I think he is just another disgraced moron (former Soviet defeated loser sub-class) like the rest ... who cant even deliver toilets that can flush the toilet paper for the Olympics...
this guy thinks "we're out of money!" so he thinks some "money" can perhaps be made available to the Russians if he can persuade the people/firms who have large bank accounts in foreign nations to "bring the money back to russia" or some shit...
rsp,
Who's pimping for Putin?
ReplyDeleteThis is a warning to some oligarchs. The modern oligarchs are the former boyers (aristocrats) that the Tsar kept in line so they didn't oppress the people (instituted by Ivan the Terrible). So unlike the UK, where the aristocracy imposed the Magna Carta on the monarch, the monarch is looked at in Russia as the defender of the people. This is why a lot of Russian look at Lenin and Stalin this light, which remains a mystery to the Western mindset.
ReplyDeleteIn Russia the elite has been bridled by Putin since 2012, when he switched sides, so to speak, and identified with the people. Even before that he pruned the oligarchy of those who refused to play by the rules. Now he is sending he same message.
That message is that wealth is OK under the new system since the fall of Communism, but there are rules and the first rule is, You are Russian. Act like it, or you will lose your privileged position.
However the authoritarian ruler cannot do this without the overwhelming support of the people, of whom the boyers (elite), nomenklatura (bureaucracy) and upper echelon of the clandestine services (siloviki) are fearful in the event of their mounting a coup. This is the way that Russia has worked for centuries and some Harvard boyz instituting Western liberalism in the 90's isn't going to change that.
We do the same kind of political maneuvering in the West, since it is goes with the nation state. Only we have different rules, different history, different traditions, and therefore different ways of doing this. In the US and the UK the oligarchs have broader freedom in that they run the country and empire, as did the British upper class. This was somewhat different in Europe less, where history and traditions are different, and government is more looked to as the protector of the people. So the US and UK look at Europe as being more "socialistic.'
Putin's "bring back money to Russia" idea isn't totally stupid. Doing that doesn't improve his ability to bring full employment to Russia, since he can print money. But it does boost the Ruble on the Fx markets which boosts Russian living standards: they can buy Mercs and BMWs cheaper.
ReplyDeleteTom,
ReplyDeleteYou are talking here about these people going all around "running things" and they dont even know what the hell is going on for crying out loud....
Heres Putin saying "please bring the money back to Russia...." he is just like our losers who are going all around saying we should give tax cuts to the multinationals so they would be more inclined to "bring the profits back to the US..." like we're "out of money!" too...
How can a multinational bring EUR "back to the US"????
How can some Russian firm with USD or EUR in those external systems, "bring them back" to Russia? Like they were ever "there" in the first place?????
????????
They are ALL unqualified, incompetent losers undeserving of positions of rule.... they are an embarrassment....
Matt, he is talking about investing in Russia instead of buying London real estate. China is sending the same message to its new oligarchs — You are Chinese, act like it, or we will whack you.
ReplyDeleteThe US allows its oligarchs to avoid taxes, offshore jobs, etc., more or less with impunity. The only slap I have seen was recently when someone renounced US citizenship to avoid paying taxes and was they outraged when he tried to enter the US and was denied entry.
Matt, as usual, thinks he is very bright because he is "in paradigm." He thinks he is smart and Putin is stupid. But Matt,fool that he is, wouldn't last a minute in the real world. Your sophomoric sneering at a person whose intelligence and competence vastly exceeds your own is what is an embarrassment, Matt.
ReplyDeleteJohn,
ReplyDeleteThe only embarrassment here is you. What the hell are you talking about? It's clear that intelligence is something you know nothing about so I'd stop referencing it if I were you.
Putin's support from the Russian people is a function of the West's aggressive attempts to isolate and harm the country. That's called patriotism. It would happen anywhere. Immediately after 9/11 President Bush had all the support in the world to go to war even by those who were ordinarily pacifists.
ReplyDeleteThe Russian people have chosen to look past the hardships Putin's policies have inflicted because they are siding with him in solidarity against the West's aggression.
For now, they are not complaining of the spending cuts, hospital closings, lack of medicines, poor infrastructure and other things.
However, absent the West's attacks Putin's economic policies have been terrible as is his understanding of economics. "Bring back your billions." What an idiot.
Spend some ruble, Vlad. Stop trying to export your way to prosperity to earn the very dollars and euro you say you want to divest yourself of.
Shit, you can't even drink the water in Russia. WTF is that? Third World.
I think the best thing they have going Mike is the 14% policy rate... and they think this is "bad"...
ReplyDeleteJohn, we are all in the "real world"... not the "financial world"...
rsp,
Tom I dont think the "oligarchs" have enough "money" to accomplish what they need to accomplish...
ReplyDeleteThis whole "oligarch" and "bankster" thing is overdone by the left.... the problem is systemic...
rsp,
Matt, I don't have an inside track on this but my sense is that Putin is declaring the rules of the game to the elite in Russia.
ReplyDeleteThe new rules: Now you can't make your money is Russia and live high off the hog in London. Seeing this pisses off a lot of ordinary Russians mightily who have to suffer for Mother Russia. The elite, too, must least act patriotic instead of jumping ship when the seas get rough, which, of course, ordinary people can't do. Other elite have signed on, and if you don't, well...
There is no indication that Russia is bleeding from "capital flight." Any BOP issues have arisen from foreign denominated corporate debt and other private sector obligations to foreigners in their currency. But the Russians don't want Russians dumping rubles for foreign currencies either when they are trying to stabilize a volatile currency to rekindle investment and confidence in Russia.
It would be nice if Putin (an other global leaders) were in paradigm, but they are not.
"Any BOP issues have arisen from foreign denominated corporate debt and other private sector obligations to foreigners in their currency."
ReplyDeleteAnd the Russian central bank accommodating that use of foreign exchange reserves, rather than allowing the entities to go bust so that losses were forced onto the foreign entities.
All because they believe they need 'foreign borrowing'.
Tom if these Russian business people in the oil and gas business make huge amounts of British pounds exporting these products to the UK then that is where the pounds have to be spent... on real estate or sports teams or whatever
ReplyDeleteThey can't bring pounds back to Russia.....
What Mike says here the Russian govt has to create the leading flow of Rubles via public spending and THEN there can be wealth creation in Russia as some of that leading flow will be saved and then some of these savings leveraged via Russian banks..
Putin has it backward. .. (as they all do...) he thinks "money" comes from the non- govt...
Rsp
China deals with this by not letting businesses have the foreign currency to use. The PBOC uses it to purchase the government securities of the importing nation. That's one way they run their peg and accumulate a lot of foreign reserves for future use, as in the Asian Infrastructure Development Bank.
ReplyDelete