Posted on 12/30/2014 11:49:11 AM PST by elhombrelibre
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 defence 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.
Without radical action, the officials are much less confident about 2016-17 - and even sooner, should global oil prices continue their slide towards $40.
(Excerpt) Read more at uk.reuters.com ...
Their poorly trained, poorly equipped, 1 year draftees, won’t be getting a pay raise anytime soon.
Have they considered:
1) Importing millions of illegal immigrants from foreign countries,
2) outsourcing as many jobs as possible,
3) a national “healthcare” plan that increases costs
4) and raising taxes?
This is the best (but, unfortunately, least likely) way out of the economic crisis that Russia faces. Putin is intent on making up bogus “threats” to Russia as a pretext for his primary agenda, which is resurrecting the pre-1991 Soviet Union as Greater Russia.
Their population is in severe decline. Bangladesh has a larger population. So immigrants from somewhere would help them. They’ve not diversified their economy, so it’s not like they have many jobs to outsource. They’ve already made the mistake of a national health care system. It’s an entitlement. Do you imagine it will be very good? Putin could raise taxes. It’s totally up to him.
I agree. It’s odd that some who claim to be conservative think Putin is a kindred soul instead of an aspiring totalitarian.
Just print more money. Problem solved.
It’s what Obama does.
Just my comment on American politics.
Oh the flip side, are they having vacancies for jobs they can’t actually fill? I would think those types of opportunities would be shrinking rather quickly.
Probably not, but they may very well be considering what yet another ME crisis does to the price and supply of oil.
That is probably quite correct.
I bet the local news spins it as economic attacks by the west.
It’s a popular theory, so I’m not going to pretend I came up with it. I don’t see them having a lot of options and I’m not expecting them to just sit around while things worsen.
Underestimate the toughness of the Russian people at our own peril. They have lived through much worse than us, and can survive on vodka and canned meat if they have to.
I don’t know anyone who underestimates their toughness. If they want to keep following Putin down the totalitarian trail, they’ll do it. They’re inured to hardship from centuries of Romanov autocracy and over seventy years of communism. They lost 20 million lives in the second world war, and probably another 20 to 30 million from communist cruelty, like the Gulag and economic mismanagement of agriculture in particular. They’ve shortened their life expectancy with alcoholism and drugs, and they’ve always had an incredibly high abortion rate despite the so-called Christian conservative champion, Putin, president for life. So yes, they’re tough. They’re also willing to allow their freedom to slip away without remorse. Keep that vodka flowing and they’ll be fine until they wake up in the new Gulag.
I know that they’re trained to be xenophobes.
Excellent retort!
They’re tough and self-destructive at the same time.
they can sell the titanium and aluminum stock piles....
Oh wait......... they already did that
Marc Rich got the money and kicked it back to Bubba and algore
Hostile to ethnic diversity....
Well you wont see much diversity of the western kind in Moscow.
You do see a different kind of diversity though: stunning blondes with gray eyes, stunning blondes with blue eyes, stunning brunettes with blue eyes, stunning brunettes with gray eyes, stunning redheads with green eyes (fewer of that kind), black haired women with gray eyes....virtually all wearing 5 inch stilettos, which no self respecting Russian female ventures outside without at least when the sidewalks are clear of snow.
Oh and there are a few guys around. Only a few are Asian, Kazakhs and other folks from the ‘stans. Everyone else garden variety Rooshan.
So it’s quite diverse.
Just not in skin tone.
When your competition is drowning, hand ‘em a firehose.
-Ray Kroc, founder of McDonalds
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