Posted on 05/12/2024 7:39:02 PM PDT by marcusmaximus
Russian President Vladimir Putin tapped a civilian economist as his surprise new defence minister on Sunday in an attempt to gird Russia for economic war by trying to better utilise the defence budget and harness greater innovation to win in Ukraine.
-snip
Kremlin spokesman Dmitry Peskov said the change made sense because Russia was approaching a situation like the Soviet Union in the mid-1980s, when the military and law enforcement authorities accounted for 7.4% of gross domestic product (GDP).
That, said Peskov, meant it was vital to ensure such spending aligned with and was better integrated into the country's overall economy, which was why Putin now wanted a civilian economist in the defence ministry job.
(Excerpt) Read more at usnews.com ...
The Economics of the Special Military Operation make no sense.
Hahaha. Hohoho.
“civilian economist”
The Russians Entered Vovchansk | Krasnohorivka Has Collapsed. Military Summary 2024.5.12
Probably because the economist has been such a success turning the ruble into the world's dominant currency. /rimshot!
Putin is in a panic over his upcoming income tax hikes to pay for his failing war.
Moscow residents are going to get hammered with the new tax increases because they make twice as much income as the inhabitants of the rest of Russia.
Popcorn time!
What Putin income tax hikes doink? Moscow residents hit hardest!
Putin 33% personal income tax hike stronk as bull!
Putin 33% personal income tax hike stronk as bull!
Old joke:
Stalin is viewing a May Day parade. The parade consists of hundreds of tanks and thousands of soldiers. In front of them all marches a group of men in civilian clothes and carrying briefcases.
Stalin: Who are those men?
Aide: Comrade Stalin, they are economists
Stalin: Why are they at the front of the parade?
Aide: It’s because economists are the most dangerous men of all.
ZZZZZZZZZZZZZZZZZZ
LOL!
Putin needs cover for his 33% income tax hike for Moscow residents making over $50k a year. That’s a big hit.
Putin is also increasing corporate income taxes in Russia by 25%.
It’s always bogus to relate some portion of government “as a % of GDP”.
GDP = C + G + I + (Exports - Imports)
It is traditionally popular to talk about how Consumption is a large part of GDP (at least in the US) but Soc Sec payout is called Consumption.
And more to the point, all gov’t spending, be it defense or their foreign ministry or any gov’t agency . . . that’s G. In other words GDP comes from gov’t spending. People want to think GDP is some sort of measure of goods and services, but govt spending is part of it By Definition.
So if you have a decade of QE with money created from nothingness, and that money is distributed to fund the huge govt deficits, well, that money from nothingness is being **spent** and it becomes GDP.
That’s right, GDP comes from nothingness via QE.
The Soviet Union’s central bank at that time was constrained in money creation to align with the Interior ministry’s 5 year plan. In other words, they made the mistake of thinking this substance from nothing had to be logical and make sense.
The current Russian central bank has no such restriction. Like the Fed, they can create money from nothing and do with it what they please — and if you haven’t gotten confused yet, you will reach the right conclusion — the created money, from nothing, gets called GDP.
So the tax rate on top earners is going from 13% to 17%?
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