BRICS, E7 Economies, and IBSA

santosh10

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//indiatoday.intoday.in/story/rbi-governor-raghuram-rajan-make-in-india-campaign-narendra-modi/1/406569.html
My Comment:-

we generally favor, "Make in India for the Domestic Supplies", with the excess to be exported.....

we simply dont favor the economy to be dependent on the external demands.....
 

santosh10

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dailyo.in/opinion/we-mustnt-allow-modi-to-scrap-the-planning-commission/story/1/1047.html
My Comment:-

how this idea came, to scrap the planning commission?

even if this man wants to start something regarding infrastructure only, its a welcome approach, but how can he even scrap the planning commission?

he simply can't transfer every department to the ministry, he simply can't try to take over all the government departments of India, specially the Planning Commission :nono:

dailyo.in/opinion/we-mustnt-allow-modi-to-scrap-the-planning-commission/story/1/1047.html
 

santosh10

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i just been to russia when 1.0 Rubel was around 1.9 Indian Rupees, while its approaching at par to Indian Rupees at present...... look like i spent at least 1.5 lakh rupees more...
x-rates.com/graph/?from=USD&to=RUB&amount=1.00
we find only Indian Rupees strong at present :ranger:

Russia is now the only oil exporting country where its producers aren't affected by fall of oil prices, as at least 50% more they are making in terms of its Rubel value in international market....

while inflation of Russia also isn't affected that much, rising from around 6.5% few months before to hardly 9.1% at present, even if Ruble depreciation might have certainly increased prices of imported products.
(hence benefiting the home industries, mainly to food industries, this way too, true....)

tradingeconomics.com/russia/inflation-cpi
 
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santosh10

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.
i made a post on a different forum as below, which may have a place here, i think :thumb:


=> Net U.S. oil imports fell to a 28-year low in 2013 as a result of the shale oil boom: :thumb:

//blogs-images.forbes.com/jessecolombo/files/2014/06/oilimports.jpg
U.S. oil production is expected to grow to 9.2 million barrels a day in 2015 and 9.6 million by 2016, which would make the U.S. the world's largest oil producer, ahead of even Saudi Arabia and Russia. Canada's oil sand boom is expected to boost the country's oil production by 500,000 barrels per day to achieve a total production of 3.9 million barrels per day in 2015, much of which will be exported to the United States. :truestory:

Led by China and other emerging nations, global oil demand spiked in the years following the 2008 financial crisis, which contributed to oil's bull market. Since 2011, oil demand growth has slowed significantly to a half-decade low largely due to the ongoing economic slowdown in China and emerging economies:

//blogs-images.forbes.com/jessecolombo/files/2014/06/fig1.gif

forbes.com/sites/jessecolombo/2014/06/09/9-reasons-why-oil-prices-may-be-headed-for-a-bust/3/

forbes.com/sites/jessecolombo/2014/06/09/9-reasons-why-oil-prices-may-be-headed-for-a-bust/3/


.
=>
Although Opec's most influential members, such as Saudi and the United Arab Emirates, have some of the lowest production costs in the world, they are also the big spenders and also vulnerable to falling prices.

"Should lower oil prices persist then emerging economies such as Venezuela or Russia may be forced to adjust their fiscal balances by cutting subsidies and social benefit programmes which may trigger political and economic instability," said Mr Dryden.

Oil price slump to trigger new US debt default crisis as Opec waits - Telegraph
UAE and Saudi A. have mainly very cheap labors from the developing countries, while the US provides jobs to its own people, who then spend the earned money within the country hence generating direct and indirect taxes this way too... while fall of Ruble by 40%+ might have adjusted profit margin of the Russian oil producers....

US would maintain Petrol/Diesel prices based on oil price at $70/barrel, the minimum, which will only benefit the whole nation :cheers:



=>
Figure the USA will allow market forces to prevail, weeds out the weak and inefficient. India should be benefiting well from lower fuel prices since it imports much of its fuel.

thats the very first benefit we got by oil/gas pumping of US, we all know how US has defended the oil importing countries to an extent by keeping its lower price.

in fact, if we have a look on the way all the currencies are on broke, and US$ is maintained strongly, there is enough support from the US to the whole world at present....

for example of fall of Euro and Japanese Yen by around 12% during the last 3-4 months, it straight gives an advantage to the exporting industries of OECD economies.....

and even if the Euro/Yen fallen, there is still lower payment for the energy import by them due to lower oil prices. and its all just because The US is standing strongly at present :truestory:

America Will Likely Close Out 2014 as the World's Reigning Oil Champion

America is Producing More Oil than ever and using it more Intelligently :tup:

Bloomberg reported the latest triumph of America's energy boom. Earlier this year America's daily production surpassed Saudi Arabia's and Russia's. Since the boom has continued, the U.S. is likely to close 2014 as the world's oil champion.

On a macro level, it turns out the U.S. has actually managed the oil boom with some modicum of intelligence. It's little-appreciated, but the boom in oil production has coincided with a quiet revolution in the way Americans use oil. At the same time we are pumping more, we are using less, and using it more intelligently. Consumption amounted to 18.9 million barrels per day in 2013, which was up from 2012. But that rise followed seven years of net decline, from 20.8 million barrels per day in 2005 to 18.49 million barrels of oil per day in 2012. Between 2005 and 2013, oil consumption fell 9 percent in absolute terms.


slate.com/articles/business/the_juice/2014/07/america_world_s_leading_oil_producer_as_we_re_pumping_more_we_re_using_less.html
 

santosh10

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UAE and Saudi A. have mainly very cheap labors from the developing countries, while the US provides jobs to its own people, who then spend the earned money within the country hence generating direct and indirect taxes this way too... while fall of Ruble by 40%+ might have adjusted profit margin of the Russian oil producers....

US would maintain Petrol/Diesel prices based on oil price at $70/barrel, the minimum, which will only benefit the whole nation :cheers:

Oil Pumping by US and its Impact on the Economy as whole

further to my last posts, if US is pumping oil worth $400billion+, at average oil price of $90/barrel, then you keep $400billion money inside the country, in place of importing the same from other countries. and its a thumb rule, investment of $1.0 result in return of 66cents, 66%, through the direct and indirect taxes..... for the developing countries like India, Philippines, Vietnam etc, it would be around 50% return through the taxes as over 90% workers dont pay taxes in developing countries...

(for example, if you earn salary, you pay tax on it, the direct tax, and then you spend money in market, buy products/services which then make the shops/companies pay tax on the products/services they are selling too, the indirect taxes. and the very first thing is, providing jobs of worth $400billion+ to the home workers....)

and then you have at least $250billion+ tax revenues this way, through the direct and indirect taxes, which may be further used for the key infrastructure projects. its all good until you use you oil pumping "intelligently", as discussed in the article of last post :truestory:

and hence, i would favor US to maintain petrol/diesel prices to be based on at least $70/barrel+, regardless how the world market fluctuates. its simple that you are pumping oil for the domestic use, and have prices as you wish, for good of the whole nation. regardless what happens in rest of the world. as you must have jobs of $400billion+ of oil pumping, direct and indirect taxes of $250billion+ this way, and the related development projects of this tax money, for the nation as whole.

as we do know, this fall of oil price is temporary, having a similar characteristic of 2009, which again raised to over $100+ per barrel by 2010....

and yes, the further investment of the estimated Tax Revenue at around $250billion+ this way, would create additional jobs with generating additional tax revenue of $150billion+ this way again, and so on.... :thumb:
 

santosh10

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Vladimir Putin's math is looking fuzzy. Russia's budget is based on oil trading for $100 a barrel, government documents reveal.
Finance minister Anton Siluanov calls that an "alternative economic reality."
Oil currently trades around $60 a barrel.
Siluanov warned that cuts will be needed since the budget doesn't reflect the hits Russia's economy has taken from the standoff in Ukraine and falling oil prices.
When Russian parliament passed the draft budget for 2015-2017 last week, it assumes that oil trades at $104 a barrel for 2014 and $100 for 2015-2017. That might have made sense when oil traded at $115 in June, but not now.
The result: Russia has a huge hole in its books.
And it might get worse. Goldman Sachs (GS) and top bond investor Jeffrey Gundlach predict oil could fall as low as $60 in the coming months.

Oil Price Math on Ruble Depreciation

and in a more clear and simple way, "Russia's Budget is based on Oil Price at (32.5*$100) = '3,250' Ruble a barrel by early 2014, OR, on (59*60*0.95) = '3,360' Ruble a Barrel by early 2015, a simple math at Oil Price at $60 per barrel and 1.0US$=59 Ruble, by end 2014. :wave:
(it used a factor of 0.95 considering the expected rise of 'additional' inflation by 5% due to fall in Ruble value during last 3-4 months.......)
//x-rates.com/graph/?from=USD&to=RUB&amount=1.00
as we see as below, Russia's inflation rising to hardly upto 10% by December 2014, from its 6.5% level in early 2014. hardly around 5% "additional" inflation they getting due to the currency depreciation :coffee:
tradingeconomics.com/russia/inflation-cpi
always keep in mind, Russian Budget is Budgeted in Ruble value, not in US$. similarly Indian Budget Expenditure is budgeted in Indian Rupees value.
.

i would like to discuss it further. today we have news that India's Whole Sale price inflation approaching zero, then its because of very low oil/energy price right now. while i just been to Russia and Petrol prices were around 32 Ruble a liter, i remember, and its the same at present, no fall in petrol/diesel/gas prices there because Ruble also depreciated with the same pace as fall in oil prices.

and yes, Indian rupees was valued at around 1.0 Ruble to INR 1.9, while now Ruble going at par with Indian Rupees, check this curve for the last 1 year, Ruble w.r.t. Indian Rupees :ranger:
//x-rates.com/graph/?from=RUB&to=INR&amount=1.00
and here we find Russian inflation even rising to over 9.0 percent while it was around 6.5 percent few months before, while India's wholesale inflation reaching to zero, from around 6 percent few months before :ranger:
ibtimes.co.in/india-records-wholesale-price-inflation-zero-lowest-5-years-617205
and thats why have used a factor of 0.95 considering 'additional' inflation due to sharp fall of Ruble value.
and AA, Russian Budget is budgeted in Ruble value, not in US$ value, isn't it? i mean, regardless what, they would get the profit on oil sale in Ruble value, with adjusting 5 percent of inflation itself :thumb:

=>

Well if the drop in the value of the ruble doesn't matter, I guess it doesn't matter.
look, it would certainly help the Russian food and other industries, mainly their food industries...... as the foreign competitors will have their products more expansive in the Russian market now, at least by over 50 percent.....

this type of 50 percent fall in a currency does look threatening but we do know how oil prices have a certain role in Ruble value to help its producers maintain profit margin in Ruble value terms :tup:

and again, i would appreciate the US$ which has supported most of the OECD economies at present. for example, ask PD, even if Eurozone economy is still around 2 percent lower than its early 2008 level, it would grow by at least over 4 percent within a year, if the Euro falls to at par to US$......
 
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santosh10

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Right Value of CAD can be maintained only when INR is depreciated to its true Value

further to the articles of post#41/42 stating struggling Indians industries due to those Chinese products which may be manufactured in India itself, many economist generally compare true value of Indian Rupees equal to Japanese Yen. while we find its now at par with Pakistani Rupees as below :ranger:
x-rates.com/calculator/?from=JPY&to=PKR&amount=1.00]Currency Calculator (Japanese Yen, Pakistani Rupee) - X-Rates
while Indian rupees, INR, is still more valued than Japanese Yen as below, which is following the above news that INR is around 17.6% over valued at 1.0US$ = INR 60 itself
x-rates.com/calculator/?from=INR&to=JPY&amount=1.00]Currency Calculator (Indian Rupee, Japanese Yen) - X-Rates

when we produce products domestically, it first generate employment, then direct and indirect taxes which government may use for Infrastructure projects. Investment of 1.0$ result in return of 66 cents (66%) through direct and indirect taxes, and things are always good if the money is kept inside the country. losing home business to cheap imported products only means for short term benefits, which will be eroded out in future.......

its true that you pay higher on the side of oil/gas/metal etc import due to depreciation of over valued currency, but long term benefits of defending home industries can't be ignored for any reason :nono:

its in a simple term that, "India needs to depreciated its Over Valued Rupees to the level when the imported products are expansive enough to be less imported."
:india:
//articles.economictimes.indiatimes.com/2013-06-27/news/40233655_1_current-account-deficit-rupee-depreciation-monsoon-session]Rupee still 17.6 per cent overvalued: Nomura - Economic Times
 

santosh10

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Reckless imports destroy production

A closer look at the import data reveals a shockingly different picture. Unnoticed (or suppressed?) in popular discourse, capital goods import skyrocketed under the UPA rule. The capital goods import during the NDA period averaged about $10 billion a year. But in 2004-2005, the very first year of the UPA, it leaped to $25.5 billion and then relentlessly rose year after thus: to $38 billion in the second year, $47 billion (3rd), $70 billion (4 th), $72 billion (5th), $66 billion (6th), $79 billion (7th), $99 billion (8th) and $91.5 billion (9th), aggregating to $587 billion in nine years.

Import of capital goods is a sign of vibrant economy. And in theory it generates higher national production. But, see what happens. The Index of Industrial Production (IIP) annually averaged 11.5 percent during the first four years of UPA rule. But in the next five years the annual average IIP came down to less than 5 percent — finally to a peanut of 2.9 percent for 2012-2013. Far from rising with the import of capital goods, the IIP growth has fallen from 11.5 percent in the first four years to 5 percent in the latter five years, a fall of over 56 percent. In contrast, it was in the latter five-year period the capital goods import was $407 billion (79 percent) out of the $587 billion for the UPA's entire nine years, the average in the first four years being $45 billion and the later five years was $80 billion. :ranger:

A rise of 78 per cent

Is it not shocking that when the capital goods import rises by 79 percent, the national production falls by 56 percent. The 2008 meltdown cannot be cited as an alibi for the decline in the IIP. Because the GDP has risen from 6.7 percent in 2008-2009 to 8.6 percent in 2009-2010 and to 9.3 percent in 2010-2011. Also, an economic slowdown affects investment first and production later.

Production falls after investment contracts. But here investment (read capital goods import) has risen by two thirds but production has fallen by half. Why this conundrum? The reason for the fall in national production in the latter five years itself is the rise in imports. The domestic capital goods industry slowed down and later declined because of the import of capital goods. Even as the GDP rose to 8.6 percent in 2009-2010, the IIP rise of 5.3 percent did not keep pace with it. Later the index of domestic capital goods production fell — yes actually fell — by 4 percent in 2011-2012 and 5.7 percent in 2012-2013. More, in the last three years to 2012-2013, the production of intermediate goods hardly grew. If capital goods import under the UPA hit the capital goods industry like a tsunami, foreign-manufactured goods flooded the Indian market. :facepalm:

The average annual import of manufactured goods during 2001-2004 (the NDA period) was just $600 million. But from 2004-2005 to 2012-2013, the average soared to $5.5 billion, by 8 times. The nominal national GDP grew by 3.2 times in this period, by just a third of the growth of manufactured goods imports. The 9-year UPA regime saw manufactured goods imports of $50 billion against just $2.3 billion during the NDA regime. Obviously, the capital goods import did not add to, but actually destroyed, national production, ably aided by import of manufactured goods.

CAD kills GDP growth

It is basic economics that trade surplus adds to national wealth (GDP) and trade deficit cuts into it. So, the CAD, which is the trade deficit, brings down the nominal GDP by a like amount. Calculations show that the CADs have brought down the real GDP by 0.8 percent in 2007-2008, by 1.5 percent (2008-2009) by 2.1 percent (2009-2010) by 1.4 percent(2010-2011) by 2.6 percent (2011-12) and by 3.9 percent (2012-13). If the CADs were removed, theoretically, the real GDP of India would have been 10.8 percent (not 9.3 percent) in 2007-2008, 8.2 percent (not 6.7 percent) in 2008-2009, 10.7 percent (not 8.6 percent) in 2001-2011, 8.8 percent (not 6.2 percent) in 2011-2012, and 8.9 percent (not 5 percent) in 2012-2013. True, oil and gold too have eaten into the forex holdings. But there is a fundamental difference between them and capital goods. Indians buy a quarter to a third of the global supply of gold, which is not produced in India. Domestic oil production is just a quarter of national needs, necessitating the import of the balance three-fourths. But most imported capital goods, which are actually produced in India, has displaced domestic production of capital goods and brought down the GDP. :ranger:

Oil and Gold as alibis

And see how the oil and gold story is not true or is true only partly. The gross value of gold, silver and precious stones import of $402 billion during the UPA's nine years looks huge. But if the export of jewellery and precious stones of $251 billion is set off, the net deficit is $161 billion in nine years. Likewise, the petroleum imports of $804 billion in nine years look gargantuan. But, if the export of petroleum products ($279 billion) is set off, the net import is down to $515 billion. It is less than the capital goods import of $587 billion. In the last five years, the net petroleum import is worth $360 billion, but the capital goods import is worth $407 billion. Does it need a seer to say that the real culprit is the reckless capital goods import and that it has killed the rupee through the CAD and hit domestic production and GDP? Just see one fallout of rupee depreciation. A calculation shows that for every additional rupee paid to buy dollars for oil imports, the additional oil bill for India is Rs 9,500 crore. In today's rupee value, the extra annual petrol bill will be Rs 1,60,000 crore. But the CAD is only part one of the story of destruction. Await further testimony on the decade-long destruction. :coffee:

S Gurumurthy is a well-known commentator on political and economic issues. Email:

newindianexpress.com/columns/s_gurumurthy/Reckless-imports-put-rupee-on-ventilator/2013/08/19/article1741218.ece#.U0osKFWSyRg]Reckless imports put rupee on ventilator - The New Indian Express

Trade deficit widens to $16.8 bn; gold imports surge 6-fold

India's trade deficit widened to one-and-a-half year high of USD 16.86 billion in November due to over six-fold jump in gold imports even as merchandise exports grew by 7.27 percent. Trade deficit in November last year was USD 9.57 billion. Gold imports stood at USD 5.61 billion in November this year as against USD 835.83 million in the corresponding month in 2013, according to the data released by the Commerce Ministry. Total imports in November, including oil, jumped by 26.79 percent to USD 42.82 billion. Oil imports dipped by 9.7 percent to USD 11.71 billion. Non-oil imports, however, grew by 49.6 per cent to USD 31.10 billion. :toilet: Merchandise exports grew to USD 25.96 billion after recording a contraction in October. During April-November, imports were up 4.65 percent to USD 316.37 billion, while exports were up 5.02 percent to USD 215.75 billion. Trade deficit during this period stood at USD 100.61 billion as against USD 96.89 billion in the same period last fiscal.

moneycontrol.com/news/economy/trade-deficit-widens-to-36168-bn-gold-imports-surge-6-fold_1253277.html?utm_source=ref_article
 
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santosh10

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as per my experience of reading trade news of India, non-oil import mustn't be more than the export value. like how it was well below to the export for the last over 12 months.....

and its all about the "overvalued" Indian Rupees which has made the imported products too cheap to be imported :facepalm:
 

amoy

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I'm afraid it's just BICS now... :rofl:
well every cloud has a silver lining. the ongoing crisis has given rise to the internal trade within BRICS. R has increased food import fm Brazil and China to substitute EU, Canada and US. Chinese pork after the ban 10 years ago for quarantine reasons has resumed to enter R.

and to trade without a 3rd currency becomes more practical than ever . that'll boost RMB internationalization. RMB is one of hard currencies worldwide that's been in reserve for many. Moreover the present turmoil exemplifies why a BRICS Bank is imperative for members.

After all R has the the blessing of the richest resources for it to whether the storms despite its ill devised economic structure addicted to energy export. That's also why BRICS members can b complementary to one another thanks to different "strength and weakness" mixes.
 
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asianobserve

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well every cloud has a silver lining. the ongoing crisis has given rise to the internal trade within BRICS. R has increased food import fm Brazil and China to substitute EU, Canada and US. Chinese pork after the ban 10 years ago for quarantine reasons has resumed to enter R.

and to trade without a 3rd currency becomes more practical than ever . that'll boost RMB internationalization. RMB is one of hard currencies worldwide that's been in reserve for many. Moreover the present turmoil exemplifies why a BRICS Bank is imperative for members.

After all R has the the blessing of the richest resources for it to whether the storms despite its ill devised economic structure addicted to energy export. That's also why BRICS members can b complementary to one another thanks to different "strength and weakness" mixes.
Well, there's no choice but to hunt for silver linings... As one Western commentator said: "The Russian leader might be playing chess while we play checkers, but only if we lend him the money for the set."
 

amoy

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Well, there's no choice but to hunt for silver linings... As one Western commentator said: "The Russian leader might be playing chess while we play checkers, but only if we lend him the money for the set."
The world has changed ever since... Now there're many other bankers in the queue -
It's On: Gazprom Prepares "Symbolic" Bond Issue In Chinese Yuan | Zero Hedge
Four Russian banks plan to issue dim sum bonds in Hong Kong | South China Morning Post

And what's the BRICS bank up for? Brics bank could start lending in 2016 | Fin24

......so long as oil and gas remain the life blood until sort of revoluntionary replacement comes out, realistically speaking, Russia will rebound along with oil price (see the shale at stake now?), and that gives good reasons to the very continuation of BRICS with energy thirsty members like C and I.
 

asianobserve

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The world has changed ever since... Now there're many other bankers in the queue -
It's On: Gazprom Prepares "Symbolic" Bond Issue In Chinese Yuan | Zero Hedge
Four Russian banks plan to issue dim sum bonds in Hong Kong | South China Morning Post

And what's the BRICS bank up for? Brics bank could start lending in 2016 | Fin24

......so long as oil and gas remain the life blood until sort of revoluntionary replacement comes out, realistically speaking, Russia will rebound along with oil price (see the shale at stake now?), and that gives good reasons to the very continuation of BRICS with energy thirsty members like C and I.

Well, so long as oil and gas prices are rock bottom and Western sanctions are in place, the Russian economy will be in the dumps.
 

santosh10

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I'm afraid it's just BICS now... :rofl:
@jouni @amoy

how did you conclude that?

for example of GDP growth rate as below, we do see falling oil prices have reduced GDP growth rate of Russia, with troubling Ruble value too, but it does look 'not bad' for Russia as below, when we compare to Finland, for example :ranger:

tradingeconomics.com/russia/gdp-growth-annual
tradingeconomics.com/finland/gdp-growth-annual

and again we have oil price math in my post#66. even if we consider factor of '0.9', considering 10% 'additional inflation' due to fall of Ruble, it doesn't affect Russian economy.

and again, we do know, per capita income of Russia falls among the developed countries as below, hence its GDP growth rate can't be compare with China, India, Philippines, Vietnam type developing countries....
//data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD

Russian Economy is a "War Economy" now, and with so many sanctions and so dramatic fall of oil price, which is temporary only, Russian economy is still growing with a better pace than its OECD rivals. while on my side, i find falling Ruble is a "great blessing" for the Russian home industries, a superb defence against the foreign competitors they have got now. and from here, Russia may only go on the path of high success, nothing worse of sanctions or oil prices than today they will ever face :truestory:
 
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santosh10

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also, we have enough reasons to believe that Russia itself wants Ruble to fall to an extent, didn't use its foreign reserve to stop its slide during the last 3-4 weeks.

so high foreign reserve, there might be a certain reason why they let Ruble fallen, may be to support oil producers to maintain profit margin on oil sell in world market, as discussed in my last fews posts in this thread too..... Ruble depreciation doesn't show weakness of Russia's economy :ranger:
//en.wikipedia.org/wiki/List_of_countries_by_foreign-exchange_reserves
 
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santosh10

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Russia now has a ~$1.1 trillion economy, roughly the same as Mexico but with a lower per capita income than Mexico. Sickening.

Russia Vs Mexico

prove it.

look, Russian economy was around $2.0trillion by 2013, and falling Ruble value would decrease it to around $1.4trillion, no less than that, because they would have around 10% inflation also this way too. and, "nominal" or exchange rate GDP has limited or nil impact on the health of an Economy. for example, prove that 12% fall of Euro w.r.t. to US$ during the last 3-4 months means for its fall. again, we find Brazilian economy also suffering over 25% during last 4-5 months, check. .....
boss, "nominal"/exchange rate GDP has limited, or nil, impact on an economy. Russia's average Inflation of last 9-10 years was well closed to 7%, which does mean to depreciate the currency to help the exporters compete in the world market? as, rising inflation increase the production cost, isn't it? this way, Russian economy hardly looks adjusting its high inflation of last 9-10 years on the Ruble depreciation......

from here, first we have per capita income comparison of Russia and Mexico as below. and the way Russian workers pay very low taxes, Per Capita Income of Russia wuuld be around double to Mexico this way?
//data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD
second, we find debt comparison of Russia w.r.t. to major G7 and BRIC economies as below. the most 'decisive' comparison of world economies in today's world. how much do you have to pay, before you get richer :thumb:
//cdn.static-economist.com/sites/default/files/imagecache/original-size/t1-overall_0.png

the foreign reserve stock of Russia, i just discussed in my last post. which does confirm that Russia wanted Ruble to fall enough to adjust the oil price in world market in Ruble terms, to help its oil producers....
//en.wikipedia.org/wiki/List_of_countries_by_foreign-exchange_reserves
with that, people talking Russia isn't in BRIC now, while Mexico falls among the E7 too, along with BRIC+Indonesia+Turkey, the title of this thread. from here, while the GDP growth comparison of Russia with Mexico itself doesn't show mexico doing some very excellent as compare to Russia as below? how did you see Russia falling while Mexico rising? Mexico hardly 'little' better Russia during the last 3 quarters of this year, due to mainly falling oil prices, which looks temporary only...
tradingeconomics.com/mexico/gdp-growth-annual
tradingeconomics.com/russia/gdp-growth-annual
and with my knowledge of economy, this fall of Ruble during last 4-5 months have just confirmed my view on the Russian economy, that is, "with so much natural resources, Russian civilians have the most bright economic future in world at present." as now they would face a type of Domestic industrial revolution to replace the imported products by the home made once.
:truestory:

the main benefit of being outside Eurozone, that is, Russia-Japan type economies may depreciate their currencies whenever they want, but not others :wave:

but yes, i see Mexico rising in future, mainly because of rise in work force coming back from US, as discussed as below:-
//cdn.theatlantic.com/static/mt/assets/business/immigration2.png
 
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santosh10

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I'm afraid it's just BICS now... :rofl:
@jouni @amoy

Mind to post a graph or statistic shows the free falling ruble against other $ based on current exchange rate on the market?

It will give you a clear picture of the size of "submerging" russian economy with worthless currency and skyrocketing interest rate. This time, no one in the West is going to bail you out because of the Putin's antagonistic relationship.

a simple bullshiits, worth for nothing. neither you could prove any knowledge, nor looks worth discussing this topic anymore, other than destroying this informative thread :facepalm:
 
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