Russias reserve fund has run completely dry.

HTTPS://meduza.io/en/news/2018/01/10/russia-s-reserve-fund-is-kaput

This is the fund that russian govt has been tapping since 2014 to compensate for low oil$$ and balance russian govt budget.
Because of sanctions, the russian govt can't borrow money in Intl markets as other govts do......things should get interesting in Moskva

 

https://meduza.io/en/news/2018/01/10/russia-s-reserve-fund-is-kaput

I don't know why your HTTPS end up in CAPS Z.... wrecks your link somehow

Russia spent $88.9 billion in three years, the $65.9 billion in the National Welfare Fund will likely only last 2 years. 2020 is going to be a dark time for Russia if it can't stop overspending their budget...probably can't stay within the budget because the money is being stolen by government officials.

Fancy boats and S500 missile system... ra ra ra we're going to save America from themselves, but they can't feed their own people

 

Guess Vladdy'll have to carry the country for a few years. AFterall its the county's money.

 

Before the 2008 Russia had the so-called - stabilization fund. But in 2008 it was divided into Reserve fund and Fund of national welfare. The reason was to use the money of extra oil income, not just to stash it, but to invest. The fund of national welfare was used for pensions, health care etc. Reserve fund was mostly a stash.
Last year the decision was made to refuse of having 2 reserve funds and have only one of them with a possibility to use the funds and be able to support the industries under sanctions. The size of the fund is decreasing. That is not a secret. in times of oil for the price of 100 USD it was 100 billion USD. In 2015 (with oil prices falling down twice or triple) the fund of national welfare was 78 billion. Now it is around 65. During this period the government at last started to invest our own money into our economy. We have investments into new roads and new bridges, new hospitals and new industries. This is why the fund is decreasing (for it is made of surplus oil money and oil price was not high), but it started to work.
The Gold and currency reserves are separate of this fund. Because only a locked part of Fund of national welfare can be counted as golden and currency fund. At the moment it is around 380 billion USD. The fund is formed from all types of the income possible. And Russia is anyway in the top ten of countries with the biggest reserves in the world. If I had a choice I would rather increase the amount of working reserves in proportion of 50\50. But such a decision will require a much lower corruption level. Otherwise we would find ourselves in the risky bottom of the list.

But of course it is better to imagine that sanctions left evil Putin without any money. )) Imaginary world needs imaginary facts. When the oil price hits the new high we will have to have an increase of our stash. (which is not that good actually). When it hits another low we will have to open this stash and use it. This is not about sanctions. The only problem of sanctions is that they indicate poor quality of politicians who impose them, because they seem not to be able to get what they want without forcing the others. It's weakness.

 

@zoom_copter66 uses unverified info, as usual.

 

Looks like Russia can no longer afford to project its power into other parts of the world. But then again neither can the U.S. with all the debt that's been run up.

In fact from one perspective Russia is actually in a better position than the U.S. because their debts are so low.

 

Anti-Russian pigs dream of the collapse of Russia)))

 

Oh please....I'd try .Ru news but I would need an upgrade on anti virus.

 

It's an interesting exercise to compare the Russian national debt, which is approx $195 billion (HERE), compared to the US national debt now heading towards $21 trillion (HERE). Comparisons of their relative economies are available (HERE).

Fancy planes (F-35 - costing upwards of $1.6 trillion), regarded by many as a flying lemon -- and the most expensive class of destroyers in the US Naval inventory (Zumwalt costing $4.4 billion per unit) that keeps breaking down.

And talking about not being able (or indeed, not caring) about feeding their own people, as of 2015, 43 million Americans lived in poverty. This from the 2nd wealthiest nation on the planet with the greatest number of billionaires, who's combined wealth is equal to half the world''s population.

I won't insult your intelligence by suggesting that you really believe what you just said (Buckley)

 

Think there's a secondary outlet they can pursue which will free them from the Western International Banking Cartel. (WIBC). Read somewhere (can't remember where) it was called BRICS and involved a handful of countries that seek that same monetary freedom. Think there might be a DARVO meeting coming up soon. Might be interesting. As an afterthought, for those of you who are economically inclined, might wanna "short" the dollar. Petrodollar is I think its official lingo.

 

Choose Kaspersky. ))

 

Up to 20 million of those in poverty are legal and illegal aliens who should not be here in the first place

But I agree that sooner or later the US national debt will catch up with America and this house of cards will come crashing down

 

Not necessarily. There can be a change in economics. The US hasn't lost all of its advantages. Natural advantages. It is only a matter of successful projects with a combination of strong leadership and responsible population. I don't regard the US as hopeless. At all.

The question of aliens is not of where they belong to but of what they are up to. If they come to join the project of making dreams come true than any of them can be better of any native American. But if they come to have an easy life at the expense of projects performed by former generations of the natives... Then they are less than useless.

 

Ironically liberals who have the least faith in America are also the most resistant to changes that could make the economy better

But right now we are adding poor foreigners faster than the economy can absorb them

 

The US has a trade deficit with all trading partners. The huge trade deficit and a huge debt. Tax reform is an even bigger budget deficit. + trillion for fiscal stimulus, so that Trump will become president in 2020.

 

I expect tax revenue to the federal budet to go up in 2018 thanks to tax reform

 

Yes. It's quite an expected paradox.

 

How is this possible if Trump lowered taxes for the rich, but did not reduce the budget expenses ?! The reduction of taxes will be compensated by the increase in the national debt.

 

Aren't many aliens actually needed to work fruit picking etc., in low wage jobs --- jobs that locals don't really wish to take up themselves?

 

It is tough to get real news in any source now days IMO, from your point of view, do you see the countryside of Russia as starting to degrade? Do you see people living in more poverty than they did before? The drop in oil from around $100 ppb in 2014 was definitely unexpected by Russia and it had to have effected their economy and living standards at least a bit.

I think this is happening in parts of America for sure and personally think it is a global problem. Would appreciate an honest response and you are one of the more honest Russian posters from what I see.

 

The idea (some believe it, some don't) is that lower taxes produce higher growth, then the taxes of the higher growth number surpasses that of the original, yet higher taxed, revenue.

IE:

At 20% tax rate, a group produces $100 dollars. So the taxes produce $20 total.

If you lower the tax rate to 15%, a group works harder and produces $130 worth of work. So the taxes produced are $19.50 or roughly equal.

A very simple example, but that is the main idea behind lowering taxes and seeing higher growth.

While it sounds "impossible" to some, it does have some merit, I think the correct answer (like almost everything) is somewhere in the middle.

To put it in more real terms though, here is the US GDP growth rate in the last following years:

2010 - 2.5%
2011 - 1.6%
2012 - 2.2%
2013 - 1.7%
2014 - 2.4%
2015 - 2.6%
2016 - 1.6%
2017 - # hasn't come out yet, but Q1 - 1.4%, Q2 - 3.1% Q3 - 3.2% Q4 - 2.6/2.9% (seen both) Can be equalized out to about 2.6%.

So, lets say the taxes are dropped (like the example above) by 25%. If the growth equals a 30% increase, it would make up for the "lost taxes" from lowering the tax rate. We will see, unfortunately there are thousands of other variables so it is tough to ever come to a full conclusion. This is why there are two very distinct thoughts on economic principles. Of course, if you look around the internet you can find "proof" that either side is correct, people just stick to their little bubbles.

But now that the tax plan has passed, it will be interesting to see. From 2010 - 2016, the average growth rate could be said to be somewhere around 2.08% if you do the averages of the numbers above.

So, if we see GDP growth rate regularly be 30% above that, or basically 2.6% or higher, the taxes collected will actually be greater than the taxes collected at the higher tax rate. If 2018, 2019 and 2020 all end up being 2.7%, 3.1% and 3.3% or something, the taxes collected will be higher.

 

This is true, given we are on fairly new territory in our fiscal policy, with several QEs injecting money into the economy, which of course does not make it to main street. And yet there is glee from the anti russian, anti national sovereignty crowd when they think russia's people might suffer. It is most irrational and unintelligent, given the better russia does for her people, the safer the world is. Our economic warfare is actual warfare, and hard economic times, if hard enough if the suffering is enough, seems to always spurn war. Now, some people in america, safe in their homes, watching war on their monitors and TV sets, seem to be rather cavalier about war and the loss of lives, american lives, and IMO these people are either ignorant or sociopaths. I doubt many have ever served or will ever serve. Not enough gonads. But it doesn't take gonads to war monger with the lives of others. War is the worst possible outcome, and yet some americans seem to wallow in it, as their too high levels of testosterone demand it. Brains affected by chemicals into irrationality and irresponsible judgement will always be a danger. I wish I could go back in time and introduce the chikun' hawks to what war is. For this is the only cure, IMO.

I want russia to be economically successful and her sovereignty respected. This makes for a safer world. I find it so odd, but telling, the Putin is a conservative, not that much different from our traditional conservatives of a past era. Traditional values, which real conservatives would agree with. He is probably one of the most effective and reasonable leaders in the world, and the smartest, and he wants russia to excell, to be important to the future of the world. Unlike our presidents he has a vision for russia, and it isn't a vision of conquering, but it is a vision where russian self interests are not put into second place because the US demands our own interests to be more important than russia's, On in bombastic hegemonic arrogance would be take this attitude.

It has become clear to me that most americans, due to gov't propaganda delivered to us 24/7 by propaganda outlets knows as MSM, and the death of journalistic standards and the Free Press, insures that americans will always have a skewed, spun, even deceitful perception of Putin and Russia, thanks to those people who want to manufacture your perception as well as consent. Billions are spent on conditioning americans into a false reality. And it has been astoundingly successful.

 

Hell, they'll end up like the USA having nothing but debt.

 

Trump's logic is clear. I read different opinions on this matter. Very many doubt that the tax reform will give the expected result. But Trump wants to invest 1 trillion in infrastructure. All this money will fall into the pockets of Americans. It is necessary that Trump be re-elected in 2020. Therefore, there is no doubt that the economy will show good results. The most interesting will start after 2020.

 

While I don't disagree with you, don't try to act like there aren't A LOT of Russians who don't "war monger" as well. This forum is more than enough proof against that idea.