“'Whisper it quietly' … But Russia’s financial situation looks better than the West’s”
“Despite the barrage of sanctions that the Russian economy got hit with at the start of the Russian military operation in Ukraine, the West's economy seems to be taking the brunt of these sanctions instead of its intended target.”
Eastern Comma (Polygonia comma)
Driftless Area South Central Wisconsin, Dane County USA
2020 7/31 _F2A4830aaa
“Whisper it quietly.
“On Friday, Russia’s Central Bank cut interest rates by 3% (from 20 to 17%). And, though overall economic activity in Russia has declined, industrial production was up 4.5% in March. The Russian Prime Minister said that he expected that supply line problems caused by sanctions would be solved within the next 6–12 months. Inflation is at 14.7%, but the Central Bank suggested the worst of this inflationary impulse was over; bank deposits were growing and financial stability was returning.
Even London’s Financial Times notes signs that Russia’s “financial sector is finding its feet after the initial barrage from the sanctions”. And Russia’s oil and gas sales - at more than $1b a day in March - mean that it continues to accumulate foreign earnings that will help compensate for the reserves seized by the West. As things stand (i.e. barring a complete EU energy import ban), Russia should be able to replace those seized reserves - in short order.
The domestic banking sector also seems to have stabilised. The need for central bank liquidity has faded sharply and the commercial banking sector as a whole could soon end up having surplus deposits with the CBR, the Financial Times notes, quoting the Institute of International Finance analysis.
So, contrary to the G7’s expectation that western sanctions would collapse the Russian economy, the FT is saying: “Whisper it quietly ... Russia’s financial system seems to be recovering from the initial sanction shock”.
Ironically, Russia’s prospects in some respects look better than those of the West. Like Russia, Europe either already has – or soon will have - double-digit inflation. The big difference being that Russian inflation is falling, whereas Europe’s is spiking to the point (notably with food and energy prices), that these price hikes likely will spur popular outrage and protest.
Well … having got that wrong (the political crisis was pencilled-in for Russia, not for protests in Europe), EU states seem intent on doubling down: ‘If Russia hasn’t collapsed as expected, then Europe must go ‘the full Monty’: Just strip them of everything: No Russian ships entering EU ports; no trucks crossing EU frontiers; no coal; no gas – and no oil. ‘Not a euro reaching Russia’ is the cry.
On the face of it, this would be ‘nuts’. Take the experts’ words for it: there is no way for Europe to replace Russian energy from other sources in the next year -- not from America; not Qatar; nor Norway. But the European leadership, consumed by a frenzy of outrage at a flood of 'atrocity' images from Ukraine, and a sense that the ‘liberal world’ at any cost must prevent a loss in the Ukraine conflict, seems ready to go ‘whole hog’.
The higher energy costs implicit in stripping out Russian energy simply will eviscerate what remains of EU competitiveness – but what the heck! Zelensky! Ukraine!””
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BIG OILS PROFITS ARE TRANSFERS OF UP STREAM TO THE RICH. The amount can be thought of as revenue well and truly above and beyond operating costs that could be made available to direct investment in green energy if the industry was nationalized.
Alternatively, prices at the pump could be lowered by the profit and the consumers could pocket the difference (thereby stimulating aggregate demand) and washington could print money to cover costs of green energy investment. ...with the added benefit that mankind doesn’t get a severe case of FUBR.
But not going to happen because that’s why we have bribes. And service to the country by elected officials doesn’t include common sense policy that aids the country’s prosperity
We can’t keep relying on Big Oil to provide fair energy prices to Americans or hold their companies accountable for their impact on the climate crisis. But we *can* support policy and plans to have a just transition off of fossil fuels once and for all, ensuring a major climate win for the economy and the planet!
23% of US Transportation Air Pollution Comes from Trucks and Buses. With higher emission standards, EPA can dramatically reduce that number with the Clean Trucks Plan.
The plan would create new standards for cleaner engine for nearly 27 million buses and trucks.
The greener engines would reduce dangerous nitrous oxide (NOx) tailpipe pollution by up to 90% by 2031, improving air quality for people and helping create a cleaner environment.
But EPA can be more ambitious and require that trucks reduce NOx pollution by 90% by 2027 while implementing stronger greenhouse gas emissions standards for heave trucks, making more of an impact on the climate crisis.
But the EPA is largely controlled by Charles Koch. The same Charles Koch that owns the US Supreme Court seats of Gorsuch, Kavanaugh, Thomas, and Barrett..
2020 7/31 _F2A4830aaa
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