Posts Tagged ‘Russian Economic Crisis’

When the United States rigged Russia’s election

February 14, 2017

Twenty years ago, the U.S. government intervened in Russia’s election to put Boris Yeltsin in power.

Mark Ames, editor of the English-language eXile magazine in Moscow in the 1990s, explained all this in an interview with Abby Martin for The Empire Files.

He told how the Clinton administration managed his election campaign, and the International Monetary Fund pumped money into Russia to keep the Russian government going.

With the guidance of economists from Harvard University, Yeltsin sold off Russia’s national assets to foreign corporations and Russian individuals who became the oligarchs who dominate Russia today.   With U.S. approval, he shut down the Russian parliament and concentrated power in his own hands.   Independent journalists were murdered.   Oligarchs took over the independent press.

The Russian people were reduced to a state of misery not seen since Stalin’s rule in the 1930s.  The death rate soared and the birth rate fell.  Eventually even the Russian stock market crashed.

Source: The Diplomat

Source: The Diplomat

Vladimir Putin was Yeltsin’s right-hand man.   The U.S. government accepted him as a reliable successor to Yeltsin.  But when Putin refused to support the U.S. invasion of Iraq in 2003, the U.S. turned against him.

I wrote in a previous post that Vladimir Putin is a killer.  But every abuse of power by Putin was made possible by Yeltsin.

Boris Yeltsin in fact was more of a killer than Putin, but the American government didn’t care because he was willing to subordinate Russia’s national interests to the interests of American and other foreign corporations.

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Russia is losing an economic war

September 26, 2016

The Russian Federation is in economic crisis.

The economy is shrinking.  Although unemployment is low, poverty is increasing,  Inflation is at double-digit rates.   The exchange rate for the ruble is falling.  Russia’s trade deficit is widening.  The Russian government is cutting spending on public services.

While Russia has serious internal economic problems, the immediate cause of the crisis is the economic war being waged by its foes.

  • The United States and European Union boycott many Russian individuals and institutions, including cutting off credit to Russian banks and cutting off sales of equipment to Russian oil companies.
  • Saudi Arabia has stepped up production of oil, driving down oil prices worldwide and hurting Russia’s oil exports.
  • The United States has begun a new arms race with Russia, forcing the Russian government to either divert resources from the civilian economy or admit inferiority.

03-bust-boom-bustIn waging economic war against Russia, the United States and its allies hurt themselves as a price of hurting Russia more.

  • Europe and Russia are natural trading partners, with Europeans buying Russian gas and oil and Russia buying Europe’s, especially Germany’s industrial products.   Cutting off this trade hurts both.
  • Saudi Arabia is using up a large but limited resource at a fast rate without getting the best price for it.
  • The United States, too, is diverting resources from our civilian economy and domestic needs.

In many ways, this is a replay of the economic war waged against the Soviet Union in the 1980s.

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