Russian Sold Out Department
I did not read the text yet. 🙂 I will (re)publish it and I’m greatly interested whether PCR opened his eyes and found out Putin’s limits or/and his betrayal(s). 🙂 It is what Putin does, did and will do matters, not what he’s enchanting audience with during all sorts of conferences and official meetings.
My short comments below every commented paragraphs.
Privatization Is the Atlanticist Strategy to Attack Russia — Paul Craig Roberts and Michael Hudson
From: Paul Craig Roberts, February 8, 2016
– “(…) Meanwhile, the combination of a rising domestic budget deficit and balance-of-payments deficit has given Russian advocates of privatization an argument to press ahead with the sell-offs. The flaw in their logic is their neoliberal assumption that Russia cannot simply monetize its deficit, but needs to survive by selling off more major assets. We warn against Russia being so gullible as to accept this dangerous neoliberal argument. Privatization will not help re-industrialize Russia’s economy, but will aggravate its turn into a rentier economy from which profits are extracted for the benefit of foreign owners. (…)“
K: Nyet (no), Putin is still traitor and/or stupid. He agreed to the robbery.
– “(…) To be sure, President Putin set a number of conditions on February 1 to prevent new privatizations from being like the Yeltsin era’s disastrous selloffs. This time the assets would not be sold at knockdown prices, but would have to reflect prospective real value. The firms being sold off would remain under Russian jurisdiction, not operated by offshore owners. Foreigners were invited to participate, but the companies would remain subject to Russian laws and regulations, including restrictions to keep their capital within Russia.
Also, the firms to be privatized cannot be bought with domestic state bank credit. The aim is to draw “hard cash” into the buyouts – ideally from the foreign currency holdings by oligarchs in London and elsewhere.
Putin wisely ruled out selling Russia’s largest bank, Sperbank, which holds much of the nation’s retail savings accounts. Banking evidently is to remain largely a public utility, which it should because the ability to create credit as money is a natural monopoly and inherently public in character. (…)“
K: Putin is not stupid or a traitor, he’s sensible Putriot.
–“Despite these protections that President Putin added, there are serious reasons not to go ahead with the newly-announced privatizations. These reasons go beyond the fact that they would be sold under conditions of economic recession as a result of the Western economic sanctions and falling oil prices.
The excuse being cited by Russian officials for selling these companies at the present time is to finance the domestic budget deficit. This excuse shows that Russia has still not recovered from the disastrous Western Atlanticist myth that Russia must depend on foreign banks and bondholders to create money, as if the Russian central bank cannot do this itself by monetizing the budget deficit. (…)“
K: What means Putin is under the charm of Atlanticism or is controlled by someone or simply stupid. As he is not stupid, what’s obvious, he must rely on advisers. The question is what type of advisers.
– “(…) There is no valid reason to raise money from private banks to provide the government with money when a central bank can create the same money without having to pay interest on loans. (…)“
– “(…) However, Russian economists have been inculcated with the Western belief that only commercial banks should create money and that governments should sell interest-bearing bonds in order to raise funds. The incorrect belief that only private banks should create money by making loans is leading the Russian government down the same path that has led the eurozone into a dead end economy. By privatizing credit creation, Europe has shifted economic planning from democratically elected governments to the banking sector. (…)“
Not “Russian economist” but downright traitors and profiteers, Mr Craig Roberts.
– “(…)There is no need for Russia to accept this pro-rentier economic philosophy that bleeds a country of public revenues. Neoliberals are promoting it not to help Russia, but to bring Russia to its knees.(…)“
– “(…) Essentially, those Russians allied with the West—“Atlanticist Integrationists”— who want Russia to sacrifice its sovereignty to integration with the Western empire are using neoliberal economics to entrap Putin and breach Russia’s control over its own economy that Putin reestablished after the Yeltsin years when Russia was looted by foreign interests. (…)“
K: Jesus Christ! That’s what know all having half a brain, at least. It’s not a news or masterpiece of analysis! Only those without a brain would think Putin does not know about it. Then why he is selling out his country for 14 years long? Why?
– “(…) There is talk of a deal being made with the oligarchs. The oligarchs will buy ownership in the Russian state companies with money they have stashed abroad from previous privatizations, and get another “deal of the century” when Russia’s economy recovers by enough to enable more excessive gains to be made.
The problem is that the more economic power moves from government to private control, the less countervailing power the government has against private interests. From this standpoint, no privatizations should be permitted at this time. (…)“
K: Former privatizations should be “balanced” with nationalization processes. Oligarchic power should be break down once and for all. If it is true that core of secret services agencies and units are patriotic hard core Russian force, and if Putin was patriot and not Putriot, he should use the deadly force, even at the cost of blood bath, to regain control over country, it is taking the power from hands of all sorts of euphemistic Atlanticists, 5th column, 6 column and high ranking traitors.
Otherwise, Putin shows weakness not for the strategic blow to smoke screen it during serious preparations but because HE IS WEAK in reality. So it means that Russian enemy powers are strong and Russia’s destine is set, well, it was set 16 years ago in 1990s.
– “(…) Selling public assets in exchange for a one-time payment is what the city of Chicago government did when it sold the 75 year revenue stream of its parking meters for a one-time payment. The Chicago government got money for one year by giving up 75 years of revenues. By sacrificing public revenues, the Chicago government saved real estate and private wealth from being taxed and also allowed Wall Street investment banks to make a fortune. (…)“
– “(…) Of course, the new Russian owners of the privatized assets also could send their profits abroad. But at least the Russian government realizes that owners subject to Russian jurisdiction are more easily regulated than are owners who are able to control companies from abroad and keep their working capital in London or other foreign banking centers (all subject to U.S. diplomatic leverage and New Cold War sanctions).
At the root of the privatization discussion should be the question of what is money and why should it be created by private banks instead of central banks. The Russian government should finance its budget deficit by having the central bank create the necessary money, just as the US and UK do. It is not necessary for the Russian government to give away future revenue streams in perpetuity merely in order to cover one year’s deficit. That is a path to impoverishment and to loss of economic and political independence. (…)“
K: They say “peculia non olet”, but it’d be corrected “USD peculia non olet” so much Putin loves the $ his ready to sell out his country. His cronies love the money equally strong and zest.
– “(…) Globalization was invented as a tool of American Empire. Russia should be shielding itself from globalization, not opening itself to it. Privatization is the vehicle to undercut economic sovereignty and increase profits by raising prices.
Just as Western-financed NGOs operating in Russia are a fifth column operating against Russian national interests, so are Russia’s neoliberal economists, whether or not they realize it. Russia will not be safe from Western manipulation until its economy is closed to Western attempts to reshape Russia’s economy in the interest of Washington and not in the interest of Russia. (…)“
K: Alas, Mr Paul Craig Roberts is naive. He “chided” Putin or Russian government many times in good belief but to no avail. Putin is impervious on advice as far as money of his cronies are concerned.
He, he, he! Did Putin wake up or he does the sell-out by design? Or, and this is the third idea, the most cranky and in some way very popular one, he does it to unnerve population, push them to the streets and then make Russia get rid of American shackles.