I hope Putin nukes them, that’s only satisfaction I will be able to get from this situation. Like how stupid must they europoorian be to sacrifice their economy for a third world but Mayo country
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kaamrev
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What do you propose as alternative? Shitposts per minute?
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PPP would be better for Russia but hire my main point I don’t care how poor Russian will get, it won’t make my life better if euro becomes weaker, plane tickets will get more expensive because Russian is selling raw metals, bread will also get more expensive, warming will also cost more with riding car. That shit will happen for a country that my country has almost 0 trades.
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Why would PPP reflect anything other than an L if GDP was dropping by an annualized third
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They have a trade surplus and almost don’t have any debts to other countries
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Those aren’t inherently good things. Not having debt mostly means not having access to credit, which is dangerous in Russia’s position as they stand before a financial crisis and can’t borrow resources in more stable currencies.
Trade surpluses and deficits also are such low parts of developed country GDPs. A surplus means you’re spending domestic resources in your economy making shit for other countries and not your own in exchange for foreign currency inflows, which can be good in some but not all circumstances.
Tl;dr Russia’s economy is not in a good spot by any means. You can adjust for PPP and they’re still far behind developed and undeveloped economic growth since the 90s or whatever timespan you want to use.
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They ware getting ready for this conflict and ware also building reserves. If they had debts to western countries things could went way worse
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Russia has a tiny per capita sovereign wealth fund compared to other oil-rich countries. Heck, even some STATES in the US have higher oil-funded reserves and that’s a result of low burn rates as opposed to good policy (I.e their govts literally can’t spend the money faster than it comes in for the past few decades). I used to work as an economist in Alaska drawing up their state’s revenue forecasts. It’s something like a $70bn wealth fund across like 600k people. Meanwhile Russia has a bit less than $200bn, but across 150m people, AND that money is already statutorily-dedicated to funding public pensions, so it’s not even a true slush fund that Russia can empty to shore up against sanctions.
They don’t have debts in foreign countries not because their central government made that choice (why would Putin care that an oligarch owed payment on foreign lumber for a development project?), but because neither western nor Central Asian Banks will lend to Russian nationals because of how unreliable the economy is and how poor of control the central government has on its own finance sector.
There’s no amount of hoarding Russia could have done beforehand that’s not going to make this the most painful geoeconomic action that’s been done in the modern era.
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Russia got rid of its debts in 2013 at that time their gdp was higher than Poland why wouldn’t anyone lend them ? Even last year more country’s lend money to Ukraine that was 3 times moor poor than Russia. There are a lot of more poor countries than Russia who are lending money. They also have decent amount of foreign exchange reserves and gold reserves so it really seems that it’s their decision to get rid of debts and not that other countries don’t want to give them money.
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Poland has a 50% higher GDP per capita than Russia. This isn’t everything, since populations and labor resources are importsnt, but to better frame it, the US has nearly twice the population and more than 500% higher GDP per capita.
https://countryeconomy.com/countries/compare/russia/poland
As far as not having debt, I know people bemoan foreign account balances, but wielding national debt is how you project geoeconomic power and survive natural market turbulence. China has 3x its GDP in debt. Japan is around 2x. I could go on and on; what matters far more is the distribution of the debt and it’s comparison to your countries’ income streams. China can handle the debt it has and use it to lift literally hundreds of millions of people out of abject poverty in two generations.
For a lot of reasons Russia has floundered economically and one of the reasons is poor use of international credit. Heck, most of South America wields debt better than Russia and has grown faster as a result despite having far fewer natural advantages that Russia has.
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You know such big spike was mostly because regular citizens ware getting rid of ruble ? It’s a huge jump from 140 to 127. I checked Russian banks and they are selling dollar for 170 rubles. What I told: “ He sell oil in Dollar he ain’t losing in long run. ” I told he not Russia. Russian gov is the biggest enemy of Russian. They will use those sanction to frick over their people way more than sanction are doing. So He=Putin won’t lose in long run.
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