Sunday, August 1, 2010

Russia Accelerates Free Market Reforms

Russia continues to move away from the Western Marxist states, taking the lessons it learned in the failure of socialism and creating a bright future for herself. This is of course, the exact opposite of the nations like the USA, UK, Spain and others. Least we further forget, it was Putin who warned first the Bush-Blair pair and than the Obama-Brown duet that Socialism and the Nationalization of industries do not work. To that end, these four fools and their shilling NGOs labeled our economy as semi-free, in their constant propaganda effort, while gaily dropping the blossoms of nationalization (that is, out right theft of ownership) on one of their industries after another, while creating literally tens of thousand of new laws (remember, the Americans pass bundles of laws of 10-20 thousand pages without a clue as to what is in them. Reading would be to difficult for these masters of humanity).

Several key projects are underway:

First and foremost is the sale of government stakes in eleven major corporations, the biggest privatization of the past 15 years. Not to mention that the worth of these takes, at approximately $30 billion USD, will make sure that the government continues to cover its deficit spending, as it really moves further away from the recession of last year. Yes, unlike the Anglos, Russia is growing again and quickly, without mafia style accounting and the mass printing of cash. A lot has been due to the cut in taxes to small business, the very engines of the economy that the Anglos have decided to pour liquid glass in and then chuck on the trash heap. Above all, the number one aim has been stated to generate a more competitive market, with less government enrollment and control.

Secondly, is the international teams scouring the best computerized systems in the world, for streamlining government. A key gold mine has been Singapore, where one can register a business online, with a credit card, in thirty minutes. Even President Medvedev, himself, visited Singapore to view first hand this miracle of streamlining and inquired at length about how to implement this system in Russia.

The third key development, equally tied hand in hand to the second, is the direct reduction of government head count. Over the next three years, the bureaucracy will be cut by 20%. That is going to be a lot of dead weight that is going to have to figure out how to earn a living.

All three key steps are aimed at improving Russian competitiveness and economic solidity, while the government continues, correctly, to defend our markets with high tariffs. Quite the opposite of the Anglo-Sphere nations and those others, like the Spanish, who have been pulled into their whirlpool of desolation.

Maybe in five years or so, we can start reading the Anglos and their fellow travelers, lectures on Free Markets, the way they so love doing it to us?

5 comments:

Ranger said...

I agree with everything, but high tariffs. What does that mean for bread prices in a drought year in Russia...Transportation costs serve as a "built-in" tariff in a truly free-market system.

Stanislav said...

@Ranger,

You sir, mistake two very different systems: one of free markets (which are internal and lend to free enterprise, NOT Capitalism, which is a system of oligarchial big money...that leads to Fascist Marxism or Brown Marxism) vs Free Trade, which is a system of exchange, pillard by Marx as it is a destructive system that breaks conservative nation states (see: On the Question of Free Trade, by Carl Marx).

On the other hand, all great nations were built upon Mercantalism, a system that was in practice until the last 100 years when the Marxists began infiltrating economics across the West and through Free Trade and Kensington mass spending and thus mass inflation, were able to bring about one Marxist (either Communist or Fascist) regime after another.

As for grain in Russia, as the 3rd largest exporter and a nation that takes care first of its own, by either raising the tariff on exports of grain or stopping all togather, when supplies are low, we do not run out of grain and have indeed twice, in the past 20 years, fed Ukraine, the "bread basket" of Europe.

On the other hand, your nation, for the sake of Oligarchial Capitalism (not to be mistaken with free enterprise Free Markets) a form of Fascist Marxism, is more than happy to export the rice and grain in your nation, regardless of the effects it has on prices for its own people. This was witnessed 2 years ago as your rice price sky rocketed when Asains arrived and bought up all free stock and your elites were more than happy to impoverish their own. Stalin and his Communist Marxism did the same to our farmers during the various great famines.

Ranger said...

Stanislav,
I understand the difference, but I disagree with the sustainability of an internal free Market without the option of free trade. The high food prices had very little to do with higher grain prices. Free Trade, in my opinion is essential to a commodity/ mercantile type system, where real goods are worth real money or real goods.
If there was such a thing as capitalism, it could work, because it would be based on REAL capital, but the world/western system is one of Credit-alism not capitalism.
I certainly think their are times to protect ones interests in certain industies. Many people blame free trade for the loss of jobs in America. It is simply false. We have lost manufacturing jobs to China for one reason alone, Pensions, health plans, other incentives to keep union employees---really unions themselves, the true marxists in our certainly flawed system. American companies cannot afford to pay for current employees + the retired employees of the past, and so jobs go where labor is based on the real cost of the labor performed.
Just trying to pick your brain, i respect your viewpoint, and I do thing that Russia could teach us a few things, I am just not convinced on the "evil" of free trade, perhaps it is in a system mostly based on credit not capital.

Stanislav said...

@Ranger

Mercantilism was actually the very anthesis of free trade. It was built upon these principles:

1. utmost utilization of one's own resources and people. Make everything you can internally and do not buy externally.

2. trade only for raw resources, never buy finished goods. In exchange give only finished goods, never raw resources or cash.

3. Cash is gold, accumulate it internally and never trade it away.

Filip said...

@Ranger
Free trade was supported by Marx because it is destructive to the nation state. A nation with trade barriers becomes like an economic pressure vessel, able to maintain higher (or lower) than average wages and standards of living. With the removal of trade barriers, the wages in that nation must revert to the global mean. Sorry Ranger, I don't want to earn global average wages, I want to earn wages that give me a first world standard of living. Giving our goods suppliers access to cheap labor in china, malaysia, etc... also discourages technical innovation. This is something that the free traders never seem to take into account: expensive labor drives innovation (i.e. Germany has very pricy labor, BMW plants are marvels of industrial automation, and produce highly refined, quality products). Pricy workers can justify their replacement/augmentation by robots and other labor saving devices such as sophisticated, specialized tools, while cheap ones cannot. I've read that unionization of the coal mines did exactly that, mining became far safer, more automated, and as a result, less manpower intensive.

In summary: free trade is bad for nations that have achieved a higher than average median income (median is better than mean because it isn't as vulnerable to being skewed by the earnings of Warren Buffet and Bill Gates types). This is because it undercuts the earning ability of their working class (or even technical professional class) and regresses it to the global mean or even lower.

To take it down another notch:
Libertarian free market ideals-utopian drivel
Mercantilism/Protectionism - pragmatic program to improve or maintain nation's standard of living