Posted on 01/28/2008 9:34:48 PM PST by TigerLikesRooster
Russia, island of stability, may save the world from global crisis
24.01.2008 Source: Pravda.Ru
URL: http://english.pravda.ru/russia/economics/103625-russia_crisis-0
Russia’s Minister for Finance, Aleksey Kudrin, released a sensational statement Wednesday. Speaking at the World Economic Forum in Davos, the Russian minister offered to mitigate the world credit crisis with the help of Russia’s reserves. Kudrin stated that Russia was an “island of stability in the sea of the world crisis.”
“Investors will continue to invest billions of dollars in the rising Russian economy. Stock market crises and their consequences will not be utterly negative for us,” Kudrin said. “Our country managed to achieve economic stability and to save considerable gold and currency reserves which play the role of an air bag for the national economy,” Kudrin said.
Meanwhile, financial speculator George Soros stated that the current events on the world markets mark the end of the dollar as the World Reserve Currency. The current crisis is not only the bust that follows the housing boom, it's basically the end of a 60-year period of continuing credit expansion based on the dollar as the reserve currency,'' Soros said in a debate today at the World Economic Forum in Davos, Switzerland. "Now the rest of the world is increasingly unwilling to accumulate dollars," the billionaire said.
The weak dollar is a disaster for the entire world, including Russia. Central banks all over the world keep about 65 percent of their reserves in U.S. dollars. The weakening U.S. currency automatically increases the value of the Russian ruble, which poses a threat to the nation’s competitive ability. In this case it will be impossible for the Russian government to maintain the GDP growth on the level of 6-7 percent.
It is not really clear how Russia would be able to help soften the world crisis. In theory, Russia could invest a part of its gold and currency reserves into U.S. treasury bonds. It could support the USA’s liquidity and stop the dollar reduction.
Russia’s current gold and currency reserves make up not more than $500 billion. Unfortunately, this money will not save the USA. No one knows when the U.S. crisis is going to end and what major global corporations have on their minds. It may happen that oil does not cost $100 or $90 and not even $50. Asian states do not make any state investments because they know that they can lose everything in an instant.
Translated by Dmitry Sudakov
Pravda.ru
At least the reporter is not insane.:-)
Ping!
“not insane”
Incorrect, it’s Pravda (same attention to fact as the Weekly World News and Batboy) plus the idjit thinks that the gold standard would work. This is impossible, since there isn’t enough of the element in the entire solar system to back the current economic activity of the world - much less ANY growth.
Gold standard = insane or mathematically/economically ignorant.
These DNC memos are a hoot!
Stopped reading right there.
When that model of “stability” repays me the 40k+ that they owe me on defaulted government bonds, then I will read further.
Providing nuclear material to the wackos in Iran is a good start.
Under Putin, Russia is certainly moving back towards the Soviet Union model of government.
Mark
It's important that we not forget how dangerous this man is... Remember that he nearly wrecked the Bank of England, and he's personally responsible for a number of currency crises around the world.
Mark
I imagine that there are a number of people who have placed a price on his crazed head.
Russia WON’T save the world from crisis, it wants to start them.
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“Russia WON’T save the world from crisis, it wants to start them.”
and profit off them.
“Russia announced on 24 July that it was recalling all rubles printed prior to 1993, and would redeem them for “new” rubles only up to a cash limit.”
http://www.unc.edu/~pconway/teccours/lari.htm
The Central Bank of Russia (CBR) has shown a two-week loss in its gold and foreign currency reserves for the first time this year. Reserves held in Moscow fell to $413.8 billion on August 24th, a loss of $900 million on its previous value.
Russian daily the Kommersant suggested a possible reason for the decline to be an aggressive intervention strategy by the central bank in order to prevent ruble depreciation. The country’s sell-off widened the gap between its foreign exchange reserves and leading global reserves in China and Japan, with Chinese holdings now exceeding $1.33 trillion, mostly in US Treasury debt.
31 Aug 1997
http://goldnews.bullionvault.com/Goldbug/gold_general/russia_selling_off_gold_reserves_18263693
Papers evolve. For those not paying attention, and there’s no reason you should, Pravda, for a number of years, has been the American version of the Weekly World News.
A recent headline story had bears rolling boulders onto cars driving on a mountain highway, and Russia’s No. 1 bear hunter had been dispatched to solve the problem.
Then we had the report of young girls dressing in Kris Kringle suits bombing businesses.
And it goes on and on....
Sorry, the date for the selling of gold was 31 Aug 2007, not 1997 ;-)
“island of stability in the sea of the world crisis.””
Unless you live in an apt complex targeted by the KGB.
http://www.amazon.com/Blowing-Up-Russia-Secret-Terror/dp/1594032017
I bet they never cook the books either. /sarcasm
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