CapitalistMarks

The Russian mafia/government.

Posted on 01. Sep, 2009 by scott in Social commentary, economic daydreaming

Would you buy a car from this man??

Not even with extra cash from the clunkers program.  I look into his eyes and I sure as heck don’t see what Bush imagined.  This is one power hungry and selfish dude.  Oddly he craves public attention even more than Obama.  In Russia he is the nation’s hero and number one celebrity.  And regardless of what anyone says he is running the country and it looks like he will continue to until he dies (might even declare himself the new Emperor?).

He has a deadly system to maintain power.  Anybody that contradicts or opposes him seems to end up dead or in jail (newspeople, politicians, business oligarchs etc.).  Not a nice guy.

Yikes!  And Obama is cozying up to this ‘Don?’

Ah, well, yesterday I wrote about China and today I look at Russia and their place in the economic maelstrom of the current worldwide recession.  It isn’t a pretty picture.  And they definitely don’t deserve to be considered in the otherwise impressive group called ‘BRIC’ (that’s the developing nations of Brazil, Russia, India and China) except they still have a sizable nuclear arsenal . . . and that carries enough weight to makeup for economic and political/social incompetence and crooked dealings.

Russia has about twice the land mass of either the United States or China — it makes Texas look like a kiddie pool. With a population of about 150 million (less than half of the U.S.) you would think the average Russian would prosper.

Not!  Their GDP was down 10.9% in the second quarter.  That is by FAR the worst performance of the BRIC.  I mean things are awful there.

The average life expectancy of a male in Russia is only 59 years!

I admit that Russia is as yet unvisited by me, but the stories I have heard and read about doing business there are frightening.  Their GDP is less than 1 trillion $$.  Per capita GDP is bad — $7,000 (U.S. is about $44,000).  The government controls everything of real value.  Yet their stock market is up 70% so far this year.  You wonder if there is a bubble there?  I imagine so, but who really knows as nothing is transparent in ‘The Motherland.’

Why have they (the Russian people) never prospered since the ‘great revolution’?  It seems perfidy follows generation after generation of their leaders.  The example they set is bad enough, but the high life they live is even worse.  How are these guys heroes to a populace that is still living in an economy with little to show for Putin’s grand plans?

Russia depends on their oil and natural gas exports (nearly 2/3’s of total exports).  And they are just as bad as Venezuela when it comes to nationalizing or controlling  profitable enterprises for the benefit of the few.  Kickbacks and bribes are the norm.  The government is about as democratic as Chavez’s and even less qualified to run the potentially great nation.

I have read a lot about the people of Russia.  They are hardworking and loyal and deserve a break.  But they suffer under any government eventually and Putin’s is the worst since Stalin in my opinion.  The guy stinks of  rotten deals and petty jealousy.  He put one of their greatest entrepreneurs in jail on a whim and took over his multi-billion $$ oil business.  All because the guy was going to run against him in an election.

Every official in Russia has their hand out, from Policemen to taxmen.  The place is rotten with crime, government fraud and flat out dishonest dealings.  I have heard (unattributed) that Putin has amassed a personal fortune in the ten’s of billion of $$.

That kind of leadership simply sucks.

Fact:  Russia doesn’t have a chance in the world economy until they start letting entrepreneurs and outside business interests with skills and capital operate unfettered by government control.

Bottom line: sure Russia had a growing economy when oil prices were high.  BUT, if the rest of the world really takes alternative energy seriously then Russia is in the crapper (I believe that is colloquial Russian).  They haven’t really implemented any realistic stimulus and are continuing to blackmail their neighbors over oil and gas.  Russia’s reputation suffers worse than America’s in global surveys.

Gosh Russia is a wonderful place (think of St. Petersburg or the pristine beauty in the Northeast) but full of rotten apples at the top!

Russian leaders are too egotistical and too interested in lining their own pockets and the pockets of their ‘buddies.’  It has no place in the BRIC nations . . .at least not until it can change to a truly democratic government and get rid of Putin and his KGB cohorts.

Then they can start utilizing the underrated talents of the average Russian and start really benefiting from incredible natural resources.  Oh, and they should start watering down the Vodka they sell and arrest all the “mafia” types.  Then the life expectancy of men just might get up to that of their women (about 73 years — jeez louise there must be a lot of lonely widows in Siberia).

Okay, enough of that — stay tuned for India and Brazil.

Thanks to the world economic forum for the photo from flickr

Tags: bric, putin, Russia, russian economy, russian gdp