Thread: Russia May Face Debt Crisis Like Greece

apparently things are not so well in Russia, good news for Pattaya though

Russia May Face Debt Crisis Like Greece - Bloomberg

Russia may face a debt crisis similar to the one gripping Greece by 2030 unless the government reduces spending, said Sergei Ulatov, the resident World Bank economist in Moscow.

“By 2030 the debt level would be unsustainable like in Greece” if nothing changes, Ulatov said in an interview during the Russia and CIS Capital Markets Forum organized by Euromoney in London today. “Right now, we are mostly helped by oil prices and not by a very prudent macroeconomic policy.”

Finance Minister Alexei Kudrin this week urged the government to cap annual spending increases at 4 percent to stabilize public finances and avoid state “paternalism” in running the economy. The budget deficit may narrow to less than 0.5 percent of gross domestic product this year if oil prices average $115 a barrel, according to Kudrin.

Oil prices tumbled to the lowest level in four months today after the International Energy Agency said its members would release crude from strategic reserves. Urals crude, Russia’s benchmark export blend, has averaged about $108 a barrel this year and dropped 5.2 percent to $105.83 today.

I've just done a lengthy piece on Russia, Butterfly. I'll e mail it to you on monday. Hasn't been published yet, comes out next month

^ yes please do,

do you have anything about China or India immediate implosion ?

Would it be fair to say that Russia has no real economy worth talking about...just depends on exports of oil and gas to pay for everything?

sounds like it is for me too, but I don't know enough about Russia to make that call

oh and you forgot whores, they have the best looking whores in the world

Originally Posted by Butterfly

Russia may face a debt crisis similar to the one gripping Greece by 2030

Blimey that's nearly twenty years away.

that's what they said in 2000 when Greece joined the EURO

and here we are

Originally Posted by Butterfly

apparently things are not so well in Russia, good news for Pattaya though

Russia May Face Debt Crisis Like Greece - Bloomberg

Russia may face a debt crisis similar to the one gripping Greece by 2030 unless the government reduces spending, said Sergei Ulatov, the resident World Bank economist in Moscow.

“By 2030 the debt level would be unsustainable like in Greece” if nothing changes, Ulatov said in an interview during the Russia and CIS Capital Markets Forum organized by Euromoney in London today. “Right now, we are mostly helped by oil prices and not by a very prudent macroeconomic policy.”

Finance Minister Alexei Kudrin this week urged the government to cap annual spending increases at 4 percent to stabilize public finances and avoid state “paternalism” in running the economy. The budget deficit may narrow to less than 0.5 percent of gross domestic product this year if oil prices average $115 a barrel, according to Kudrin.

Oil prices tumbled to the lowest level in four months today after the International Energy Agency said its members would release crude from strategic reserves. Urals crude, Russia’s benchmark export blend, has averaged about $108 a barrel this year and dropped 5.2 percent to $105.83 today.

more or less bullshit.

Russia is a creditor nation with huge forex reserves. There will be allot of other countries in crisis before a creditor like Russia is in crisis

Originally Posted by koman

Would it be fair to say that Russia has no real economy worth talking about...just depends on exports of oil and gas to pay for everything?

Oil and gas is good business, just ask Saudi Arabia or Qutar. Russia actually has a real economy that sells real things that people need. Its is a hell of allot more real of an economy then the US.

Originally Posted by socal

Russia is a creditor nation with huge forex reserves

I thought you said that money will be worthless and that only gold will have value

^ good point

Originally Posted by socal

Russia actually has a real economy that sells real things that people need.

and how are we going to pay for it when all our currencies are worthless ?

that's right, weakest link theory, see Greece

Someone is going to get a bollocking for this piece. The conference delegate will claim that he was saying

'Russia doesn't have much debt. Even with current policy it would take us till 2030 to ....(etc etc)

(which is a reasonable thing to say)

Surprised the Bloomberg editor let it through, because they're tight on these things.

Euromoney won't be giving out Press Passes for this event anymore

Originally Posted by The_Ghost_Of_The_Moog

Euromoney won't be giving out Press Passes for this event anymore

haha

Originally Posted by socal

Originally Posted by koman

Would it be fair to say that Russia has no real economy worth talking about...just depends on exports of oil and gas to pay for everything?

Oil and gas is good business, just ask Saudi Arabia or Qutar. Russia actually has a real economy that sells real things that people need. Its is a hell of allot more real of an economy then the US.

I know they make some things--(mostly military stuff) but you don't see "Made in Russia" on anything in the shops anywhere I've been...so I assume what they make is for domestic consumption...and from what I hear it is mostly poor quality stuff. Medvedev recently stated publicy that they really needed to diversify their economy because it was far too dependent on resource export......that's why I posed the question. As you say Oil and gas is good business and parts of the ME clearly show the results....but a country of 250 million+ people depending on the same kind of economy as Quatar would be a bit dicey in the long term would it not?

Originally Posted by socal

Originally Posted by koman

Would it be fair to say that Russia has no real economy worth talking about...just depends on exports of oil and gas to pay for everything?

Oil and gas is good business, just ask Saudi Arabia or Qutar. Russia actually has a real economy that sells real things that people need. Its is a hell of allot more real of an economy then the US.

You tend to look at today when assessing situations, rather than projecting into the future.

England is fucked, no industry, all volatile services that can shutdown overnight, an expensive currency, high housing price, a blind conservative government

it's not going to end well for the UK,

at least they are not part of the EURO, so they will not take us down along with them

^I think you will get dragged down without our help dear boy. Pigs will see to that.

Originally Posted by Butterfly

at least they are not part of the EURO, so they will not take us down along with them

That actually points the way forward for England. High inflation until the currency is so devalued that those ridiculous house prices vanish in real terms, of course the standard of living will also go down the dunny.

Originally Posted by chassamui

Pigs will see to that.

not if we kick them out first, which might be the only solution at the end

Keep your enemies close...................

Originally Posted by Thetyim

Originally Posted by socal

Russia is a creditor nation with huge forex reserves

I thought you said that money will be worthless and that only gold will have value

takes time, Russia is buying tons of that too

Originally Posted by koman

Originally Posted by socal

Originally Posted by koman

Would it be fair to say that Russia has no real economy worth talking about...just depends on exports of oil and gas to pay for everything?

Oil and gas is good business, just ask Saudi Arabia or Qutar. Russia actually has a real economy that sells real things that people need. Its is a hell of allot more real of an economy then the US.

I know they make some things--(mostly military stuff) but you don't see "Made in Russia" on anything in the shops anywhere I've been...so I assume what they make is for domestic consumption...and from what I hear it is mostly poor quality stuff. Medvedev recently stated publicy that they really needed to diversify their economy because it was far too dependent on resource export......that's why I posed the question. As you say Oil and gas is good business and parts of the ME clearly show the results....but a country of 250 million+ people depending on the same kind of economy as Quatar would be a bit dicey in the long term would it not?

No it wouldn't. First i dont think there is 250 million of them and as long as there is still winters i Europe, Russia will be fine selling nat gas and oil. They also export allot of food commodities.

Originally Posted by Butterfly

England is fucked, no industry, all volatile services that can shutdown overnight, an expensive currency, high housing price, a blind conservative government

it's not going to end well for the UK,

at least they are not part of the EURO, so they will not take us down along with them

yeah, so why talk about a creditor nation being fucked ?