“And At The Same Time, Billions of Dollars Go Overseas…”

Russian Economy Department

Why is Russia during the economic crisis, investing billions in the U.S. economy
From: Politikus, 7-03-2016, 02:13

(Click to enlarge)

On March 6, President Obama extended for another year the sanctions regime against the state of emergency of Russia announced its decree orders 13660. For the first time the USA and its allies have imposed anti-Russian sanctions exactly 2 years ago. In connection with the events in Ukraine. They affect energy, defense, financial sectors and individuals in Russia.


One of the main objectives of Obama’s decree orders 13660 – to block Russia’s access to Western loans, financial to weaken, if not stifle our country. No wonder under these sanctions in late February, the state Department and the U.S. Treasury strongly recommended (read ordered!) the largest American banks Goldman Sachs, JP Morgan, Bank of America, Citigroup and Morgan Stanley to buy Russian government bonds. You don’t dare to Finance the economy of a potential enemy! Sharks of wall Street immediately saluted.Moreover, Goldman Sachs already has given prior consent to the placement of Russian debt instruments, but after the command of the state Department was forced to withdraw. So the state Department clearly showed who’s really boss in the world market “free capital”.

This is despite the fact that Russia itself is under sanctions, inspired by Obama, increases again purchase us bonds, called treasuries. In November – 6 billion bucks in December to 4.1 billion. Only on 1 January 2016 investments of the Russian Federation in US –Treasuries total $92,1 billion. But when our Ministry of Finance decided in February to place in overseas banks debt securities in pitiful 3 billion “green”, immediately received a failed state.

(Click to enlarge) Director of the Institute of globalization problems, doctor of economic Sciences Mikhail Delyagin. Photo: Michael Frolov

What a strange policy of the financial authorities of Russia? The country is desperately short of money. Sequestered budget, officially reduced the costs of healthcare, education, veterans periodically frighten freezing of pensions… business Loans, mortgages – under a huge ruinous interest! To replenish the budget, the authorities have introduced recently new excise taxes on gasoline, diesel fuel, which will soon lead to a new increase in the prices of fuel in Russia. Despite the fact that the oil in the world fell sharply.The excise tax on palm oil, soda… Grow the number and amount of fines for motorists, paid Parking, other “fees”, fees, fees. The list is long. Popular bitter joke about the imminent “tax on the air for the Russians”. The feeling that the government wants to get out of the crisis only at the expense of the population. Who has dropped revenues, salaries even according to official statistics. And prices are rising, and unemployment…

And at the same time, billions of dollars go overseas, invest in the economy of our probable enemy.

Remember the proverb – “give Wife uncle and aunt go to … (easy virtue)”. Very accurately reflects the situation.

Puzzled ordinary people, experts, even the other deputies. Here’s how commented on the state Duma Deputy Alexander Starovoitov investment of $ 10 billion in treasuries at the end of last year: “Probably, for someone it empty figures, but a small comparison: this amount for two months equivalent to the planned government spending to support the economy of the Russian Federation for the whole of 2016, 30 percent more than annual government spending on education, 54 percent – on health care.”

Starovoytov insists that the management of the Bank of Russia has come to the state Duma and explained the mysterious policy of withdrawal of funds in overseas securities: “Maybe it’s some clever economic ploy, maybe they really have information that this will bring the country considerable profit?”


don’t know that answer, the Bank of Russia Deputy and will respond if at all. Therefore I ask to explain the situation to the Director of the Institute of globalization problems, doctor of economic Sciences Mikhail Delyagin.

– Michael G., to begin with explain, what it for a piece such – treasuries?

– The title of debt obligations of the U.S. government originating from the English Treasury “Treasury”, “Treasury” or “Treasury”. The official name of the U.S. Treasury literally translates as “Treasury Department”. The term “treasuries” means all types of debt obligations: short-term Treasury bills (usually a maturity of from 4 to 26 weeks, but comes to year), medium-term according to their standards, “notes” (maturity from 1 year to 10 years) and long-term bonds (10 to 30, but usually up to 20 years). The latter have the highest value and usually “treasuries” they understood, although it is not entirely accurate.

For all types of treasuries, there is a huge secondary market. Power, wealth and active domination of the United States, as well as the maturity and asian romance markets, treasuries are doing absolutely liquid and reliable. They gladly accept as collateral to secure loans of all types.

The U.S. government guarantees the owners of its debt, though low but fixed percentage (in recent years, from 0.25 to 3% depending on the species and market situation). However, depending on the balance of supply and demand they can accommodate by price both below and above par; constantly varies their price and subsequent auction. (…)

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