Posted on 05/28/2013 4:55:07 AM PDT by Yekaterina Derevko
Vedomosti reports that Sergey Glaziev, the economic mastermind behind the Eurasian Union, sent an official report to Kremlin, stating the necessity of a radical revamp of Russia’s economic policy in the wake of the second wave of global economic crisis. “Unknown sources” have provided the media with the contents of this highly controversial document, igniting a fierce debate in the press and blogosphere.
Glaziev’s report features apocalyptic predictions in regard to the state of the world economy but the most interesting part of the text refers to the so-called “currency wars”. Basically, one of the most influential advisors of the Russian president accuses both the US and EU of “legalized aggression” through unbridled monetary emission. Vedomosti cites several fragments from the report, “As a key point of their anti-crisis policy, they are refinancing their banks using negative real interest rates” and meanwhile “1.5 trillion dollars, 1.2 trillion euros and comparable amounts of yen and pounds are used to finance debt pyramids and acquire real assets across the world”. Western banks are accused of blocking their debtors in “debt traps”, with the ultimate goal of “obtaining political control” and “seizing the real assets” of the debtors.
Read more: http://english.ruvr.ru/2013_01_18/The-world-is-in-a-state-of-financial-war-Russian-presidential-advisor/
(Excerpt) Read more at english.ruvr.ru ...
PING!
Russia to ship missiles to Syria after EU ends arms embargo on rebels
The USA has been adding nearly 1 million barrels @day of oil production annually for the last three years.This year the same thing will happen. Citibank projects that the USA will do the same thing through 2017 with oil independence projected for that year. Under these circumstances the dollar has nowhere to go but up. A strong dollar and an oil supply shock—mean that the direction of oil prices is down. Gold too. Therefor the Russian government cannot depend on oil or gold revenues to pay for government checks to party and pensioners. Sergey Glaziev’s analysis sounds like quackery to western ears. But judging by his prescriptions he understands there are big changes coming that Russia needs to respond to. His prescriptions are pretty solid. But he’ll likely run into the same wall that Medvedev did. Putin is an oil guy. Because that’s what he knows and oil has worked for him before. It would require serious serious pain in the form of lower oil and gold prices for Putin to change. So maybe the reforms will come but not before oil and gold prices plunge much further.
For anyone with a historical rhyming ear its helpful to recall that the first OPEC stikes in 1973 coincided roughly with the beginning of US oil imports and the first Watergate hearings. Just as this year US oil production hikes and import reductions coincide with Obama Benghazi,IRS AP & Fox troubles.
Thanks ckilmer, nice analysis.
Basically, one of the most influential advisors of the Russian president accuses both the US and EU of "legalized aggression" through unbridled monetary emission... Western banks are accused of blocking their debtors in "debt traps", with the ultimate goal of "obtaining political control" and "seizing the real assets" of the debtors.IOW, he wants to hang on to his job, so he peddles the NeoSoviet regime's agitprop.
US fracking techniques have basically given Russia an unlimited supply of oil. They have some shale oil deposits in Siberia that dwarf anything in the USA. (Same goes with the Chinese and shale gas. They have even larger deposits of shale gas than the USA.)
imho the world is going to go from tightly balanced supply and demand for oil/gas to a glut in 10 years or less. That will put downward pressure on hydrocarbons everywhere. Lower energy prices will be pure oxygen on the world economy. So even as the oil/gas patch loses profits from lower prices the rest of the world economy will grow like crazy — driving demand for energy UP and prices up again. Its about a 20 year cycle.
This is the way it has always worked since the dawn of the oil age.
The best way to be positioned for this kind of dynamic cycle is to have a very diverse economy so when energy prices decline the rest of the economy can improve.
Unfortunately, there is a sitting president, a domestic political party and a global elite to whom your rosy scenario reads like a grim tale indeed. Their actions need to be factored into the prediction.
Well said.
The entire World runs on Crude Oil, a fact that most Americans deny - - - .
Sergey Glaziev, the economic mastermind, let me introduce, er, what is your name again?
Bond, James Bond...
and electricity.
The second greatest race (or first depending on your metrics) in the world today is all about 4th generation nuclear reactors that will cut the cost of electricity.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.