Economy By Sergei Glazyev, old text but have interesting remarks about Economy. There is only one issue with Russia and China. Overtly their economic ties are…. weak, sometimes called soft. Two Chinese warnings to Kremlin authorities published in Russian version of Chinese official daily were courteous but hard as it could be using that form of communication. Have no illusions. Russia is in dire straits. So we ought to rely on covert accords between RF and CPR. But their are so tight secret no one knows what they cover. I may only speculate about deep secrets – literally and figuratively – try to find out remarks concerning Yamantau in Russia and Chinese underground military facilities several thousands km long. They are not only to keep there carrots and sugar for population, more, I’d risk to say they do not contain such stuffs or cosy apartments for Them Who Not Must Be Named Aloud.
BTW. Mr. Escobar had the temerity to call for key changes around Mr. Putin – “Round up those central bank suspects” – what means RF President should fired all the Russian liberasts – Nabiullinites, Grefites, Kudrinites, Medvedevites et al.
Weaponized Default: Russia’s Ultimate Answer to Western Aggression?
From: Russia Insider, Pepe Escobar , Sat, Sep 19, 2015
– “A Russian default on its $700 billion in foreign debt would send shockwaves through the Western financial system
This article originally appeared at RT
Let’s start with some classic Russian politics. Finance Minister Anton Siluanov is drawing up Russia’s economic strategy for 2016, including the government budget. Siluanov – essentially a liberal, in favor of foreign investment – will present his proposals to the Kremlin by the end of this month.
So far, nothing spectacular. But then, a few days ago, Kommersant leaked that Russia’s Security Council asked presidential aide Sergei Glazyev to come up with a separate economic strategy, to be presented to the council this week. This is not exactly a novelty, as the Russian Security Council in the past has asked small strategy groups for their economic assessment.
The Security Council is led by Nikolai Patrushev, the former head of the Federal Security Service. He and Siluanov are not exactly on the same wavelength. And here’s where the plot thickens. Glazyev, a brilliant economist, is a Russian nationalist – sanctioned personally by the US.
Glazyev is arguably going no holds barred. He is in favor of barring Russian companies from using foreign currency (which makes sense); taxing the conversion of rubles to foreign currencies (same); banning foreign loans to Russian firms (depending if they are not in US dollars or euro); and – the smoking gun – requiring Russian companies that have Western loans to default.
Predictably, some sectors of US ‘Think Tankland’ went bonkers, stating with utmost certainty that “the Russian energy sector would not be able to find much financing without connections to the West.” Nonsense. Russian firms would easily find financing from Chinese, Japanese or South Korean sources.
Whatever measure of attention Glazyev will get inside the Kremlin, the whole episode already means that Moscow harbors no illusions in the near future regarding the exceptionalists (one just has to look at the presidential candidates, from ‘El Trumpissimo’ to ‘The Hillarator’); as Russian Deputy Foreign Minister Sergei Ryabkov recently put it, “[we] should expect toughening of the sanctions pressure.”
Once thing though is absolutely certain; Moscow won’t bend over backwards to “pacify” Washington.
Round up those central bank suspects
The Kremlin’s got to do something about the Russian Central Bank.
The Russian Central Bank kept interest rates high, forcing Russian oil and natural gas producers to finance their operations from Western sources, and thereby plunging the Russian economy into a debt trap.
These loans to Russia were part of the New York-London financier axis control mechanism. Were Moscow to “disobey” the West, the West would call in their loans after crashing the ruble, making repayment almost impossible, as they did with Iran.
This is the mechanism through which the West – and its institutions, the IMF, World Bank, BIS, the whole gang – rule. Beijing is moving either to complement or replace this set-up with new and more democratic international institutions.
If the Russian Central Bank had operated under sounder principles, it would have lent money at interest rates below the West’s, and linked each loan to productive investment. A modus operandi totally different from the US – where much of the central bank credit goes to banks and financiers for their speculative scams.
Michael Hudson, among others, has already made the case that the entire Fed only serves the interest of its financial rulers and does not give a damn about American industrial infrastructure, which was progressively shifted to colonies and/or vassals, as well as to China.
So the ‘Masters of the Universe’ thought hardcore pressure on both Russia and then China would work. It did not. There are reasons to be alarmed; the ‘Masters of the Universe’ will keep raising the ante, higher and higher.
The scenario ahead spells out Russia further moving east while simultaneously moving to extricate itself from most of the West’s institutional architecture.
The merger of the China-driven New Silk Roads, a.k.a. One Belt, One Road and the Russia-led Eurasian Economic Union, although slow and full of pitfalls, is irreversible. It’s in their mutual interest to invest and develop a pan-Eurasian emporium.
Iranian natural gas will go mostly to the Asian part of Eurasia, and not the EU. And the Chinese economy will at least triple over the next fifteen years as the US continues to de-industrialize.
Whatever Putin and Obama discuss at their possible meeting at the end of the month in New York, exceptionalist pressure over the bear won’t abate. So it pays for the bear to keep a lethal financial weapon in storage.“