The West has done another great deed for Russia, it has forced Russia, against the will of its fifth columnist oligarchs and bureaucrats and many traitorous senators onto the path of Mercantilism. More on this fifth column scum later, and how most deserve a wall and a cigarette.....now on to the mercantilism.
I have written many times about Mercantilism, the only nationalistic economic form, the one that built all the great nations of the world and the one that is absolutely ignored in all economic classes and B schools. Both of which I know from personal experience and from speaking with countless others who had similar gaps in their education.
Mercantilism's first pillar is maximum utilization of your own resources and population. This does not mean a communist or fascist dictatorial economy. Internally a free market is a fine thing with competition...internally. What it does mean is that you need protective barriers to cut down on imports and thus produce everything that can be produced at home, buying, as per the second pillar, only raw resources and only if you need them and selling finished goods.
This worked with the auto industry in Russia, raising the number of automobile plants from 19 old ones, when stiff import duties were passed to 36 as of this year, including a few new home grown ones. So it was and is obvious that this is what is needed to take the Russian industrial production to the next great level.
However, knowing and doing are two very different things and with a bag full of foreigners, that is oligarchs, running large swatches of the economy, it would never materialize. Why are they foreigners? Because they do not give two cents of a damn about Russia or the Russian people. Because they consider themselves internationalists and are more than happy to run away from what ever they destroy in their wake. These are the same types of men who pushed out the Tsar and created chaos because they thought they could earn more, and then ran away from the wreck.
However, our enemies, the collective West, and enemies they are: have moved Russia down that path themselves. Thanks to sanctions, this has give the patriots in power circles incentives to push through localization. And guess what? It worked. In the months from Dec 2013 through July 2014, the industrial output graph was flat to negative, below the 50pt mark. Since
Industrial Production grew by 2.8% year on year in September - the fastest pace since 2012 as the domestic economy shows strong signs of recovery.
The most important segment which reflects overall business conditions is the manufacturing segment which registered a 3.6% gain for the month.
Retail Sales improved for a third consecutive month reaching the yearly rate of 1.7% beating consensus forecasts of 1.5%. The improving trend in Retail Sales is particularly important given how important Q4 is for the retail sector.