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At least we're not Russia

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February 06, 2009 – Comments (9) | RELATED TICKERS: RSX

Everyone knows that the United States is in rough shape right now, but cheer up, I've found a country that's in much worse shape than we are in...Russia.  Check out this quote about the state that it is in from a noted expert on the country, George Friedman, founder of the global intelligence firm Stratfor:

"Russian power is in long-term decline. Compared to the Soviet Union in 1989, the Russian Federation has less than half the population, one-third the economic bulk, lower commodity production and vastly decreased industrial output. Demographically, Russia is both shrinking and aging at rates that have not been seen outside of wartime since the time of the Black Death. The educational system has stalled, so Russia is facing an impending slide in labor quantity and quality, which will make it difficult if not outright impossible for Russia to keep up with its advancing neighbors. The long-term prognosis is, at best, very poor."

Whew, I don't feel so bad about the shape that the U.S. is in right now after reading that ;).  The paragraph doesn't even mention how linked the Russian economy is to oil and how it based needs prices of around $70/barrel or else it is in big trouble.  The bottom has absolutely fallen out from under the Ruble, the it is blowing through its reserves at an alarming rate, and its debt rating was just lowered again yesterday.

It certainly makes me glad that I have always stayed away from investing money in that country.  I never trusted its government enough to put my hard-earned dollars to work there.

Of course, the U.S. clearly has its own set of problems to deal with right now.  The next several days will be absolutely fascinating for anyone who is into economics.  This morning the BS (I intentionally left out the "L") publishes the January jobs report.  The stimulus package will likely be passed by the Senate at some point over the next several days.  On Monday Tim Geithner is expected to unveil the Treasuty's strategy for fixing the banking system.  Hold on to your hats, there's going to be some wild stuff out there that will have a dramatic impact upon what happens to the economy for the rest of the year.

Deej

9 Comments – Post Your Own

#1) On February 06, 2009 at 8:42 AM, DaretothREdux (49.28) wrote:

History has already taught us what will happen:

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#2) On February 06, 2009 at 8:46 AM, brwn8484 (89.05) wrote:

Obviously you did'nt invest in LETRX between 2006-2007 where I more than doubled my money in Russian companies.

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#3) On February 06, 2009 at 9:05 AM, Paxtor (29.05) wrote:

Good thing they still have enough nukes to kill everyone 10 times over... oh wait, that's not really a good thing.

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#4) On February 06, 2009 at 9:09 AM, DemonDoug (92.48) wrote:

At least we're not russia...

...yet.

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#5) On February 06, 2009 at 9:33 AM, TMFDeej (99.46) wrote:

Hey DaretothREdux.  I am almost finished reading The Forgotten Man, a history of the Great Depression.  The reason that I mention it is that it contains the whole background story about the picture that you posted.  Who it was, their situation, and how the governmet had hired the photographer who had taken it to create propoganda for the New Deal.  Interesting stuff.

Deej

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#6) On February 06, 2009 at 9:36 AM, russiangambit (29.49) wrote:

Gee, thanks, for pointing out the obvious. The US is the richest country in the world. Of course, it is not like Russia. You shoud've seen some of Russian villages, they still live without electiricy or TV or any modern conviniences, just like 200 years ago.

What I cannot understand, is why in the richest country in the world there are so many people still locked in the cycle of poverty, - no education, no health insuarance, no prospects. Why the middle class is just barely making it? Why there is so much waste?

If you want to improve yourself, don't measure yourself against those who are worse than you are, but against those who are your betters.

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#7) On February 06, 2009 at 9:40 AM, DaretothREdux (49.28) wrote:

Deej,

Crazy, isn't it? I remember that picture from my A.P. U.S. History text book from high school. I have always been a fan of BnW photography and that picture will leave an impression on anyone.

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#8) On February 06, 2009 at 11:02 AM, Schmacko (79.83) wrote:

I don't know if comparing russia's demographics and economy to that of the soviet unions is really a meaningful statistic since it's about 14 countries smaller than what the USSR used to be.  Russia definitely has problems but if Russia was a company Putin would be one of those CEOs I'd bet on to turn things around.   

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#9) On January 06, 2010 at 10:42 PM, starbucks4ever (98.98) wrote:

"The paragraph doesn't even mention how linked the Russian economy is to oil and how it based needs prices of around $70/barrel or else it is in big trouble."

I couldn't disagree more. It is Putin and all Putin's friends-and-relations who need $70/barrel or else they are in big trouble. I can't wait to see $8/barrel oil. When Putin picks his moneybags and his pocket president, gets into a plane and takes off to Cayman Islands, LETRX will return 1000% in the next 10 years.

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