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Kasparov Outlines Why Russia is a Great Place to Invest

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December 07, 2007 – Comments (14)

Everything is so orderly and transparent.

Perhaps most damning are the official statistics in places such as Chechnya and Dagestan, where there was little monitoring. With an outlandish 99.5 percent voter turnout, 99 percent of Chechen votes went to United Russia. Do not forget: This is a party led by Putin, the architect of the second Chechen war, which razed the Chechen capital, Grozny, less than a decade ago.

As usual, the game was given away by lackeys who are too eager to please their Kremlin masters. One can imagine what the United Russia bosses think of Hugo Chávez losing by 2 percentage points on the same day. Amateur!

14 Comments – Post Your Own

#1) On December 07, 2007 at 5:22 PM, EScroogeJr (< 20) wrote:

Struggling to ensure an accurate recount of the votes in Florida, the American election authorities turn to their Rusian colleagues for technical assistance. The head of Russia's election committee flies to Miami, and 3 hours later, the new results arrive: Putin is leading in the election :)

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#2) On December 07, 2007 at 6:52 PM, camistocks (< 20) wrote:

Yeah, better to invest in democratic China, which exports first class quality toys and dog food and what else. They love the West that much that they keep their currency artificially low, so we have no chance to compete. There is a trade war starting with China!

Thank god, Iraq is now a prospering and free country, Falluja is the most beautiful town today, a must see for tourists...

We may think what we want from our western perspective. Russians love Putin, because he has brought them wealth and national pride. Moscow is the most expensive town in the world today.

From Wikipedia: After the disintegration of the USSR, the Russian economy went through a major crisis.[70][71] In October 1991, Yeltsin announced that Russia would proceed with radical, market-oriented reform along the lines of "shock therapy", as recommended by the United States and IMF.[72] However, this policy resulted in economic collapse, with millions being plunged into poverty and corruption and crime spreading rapidly. The removal of price controls caused hyperinflation and people's savings were wiped out. Russia took up the responsibility for settling the USSR's external debts, even though its population made up just half of the population of the USSR at the time of its dissolution.[73] The privatization of state enterprises was extremely uneven. The largest state enterprises (petroleum, metallurgy, and the like) were controversially privatized by President Boris Yeltsin to insiders[74] for far less than they were worth.[72] Many Russians consider these infamous "oligarchs" to have looted billions in assets, taking wealth outside of the country in an enormous capital flight.[75] 

He would have won anyway, regardless what Kasparov says. Let's call it democracy "the Russian way"...

How can you not love this ... man! 

 

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#3) On December 07, 2007 at 8:05 PM, klaracat (27.89) wrote:

Even Moscow is most expensiv city,life for averege people now mach better.Averege sallary is $1500-2000mo.Yes eldery stel have low pention(it woth encris resetly).

I talk to my sister or mom every wk.

Putin stop alot crooks from selling Russia.

Russia have NO DEBT! Thanks to Putin.

Russian people ruther have Putin one more term,then Kasparov for one year,besause one year is more then enough destroy all good.

Kasparov is very smart,and this make him even more dengeris.Hi is neofasist and most people do not know about his hate toward Russia.

And it is not rumors, but clouse observation,not my,but from my freand year ago.And i do not belive he change.

Rome do not bild in one day,and Russia have bright futher as long as Kasparov and co.do not have goverment.

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#4) On December 08, 2007 at 1:18 AM, MakeItSeven (31.92) wrote:

Well said, camistocks and kiaracat.

Fair or not fair, Kasparov's party has no chance in hell to become relevant in Russian politics.   The next party in line would be the Communist party.

About Kasparov, I reserve my doubt on a person who staged a demonstration with more western journalists participating than demonstrators.   Listening to him is rather like listening to Chalabi's followers on the Iraq WMD intelligence. 

But the main thing is that, as far as Russians are concerned, his and our opinions on who should run Russia is inconsequential.  Political trivialities should remain trite.

Anyway, in 2004, in some locations in Ohio there were several times more votes than registered voters.  The "mistake" was corrected after the impossibility of such numbers was pointed out but sometimes it's not that easy to prove vote frauds, or just mistakes according to the never-happened investigation.

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#5) On December 08, 2007 at 11:43 AM, EScroogeJr (< 20) wrote:

Kasparov is a courageous man, but unfortunately, he is also the most disastrous manager ever - you cannot put him in charge of a collective with more than one person in it because as soon as you have two people working for him, they will squabble with one another. There is no doubt that he can't promote any cause effectively because of his huge ego standing in the way. And yet, for all his flaws, demonstrating against the Fuhrer on the eve of the burning of the Reichstag definitely counts for something.

camistocks,

I don't see how you can turn a most ordinary dictator inflated by petrodollars into a saviour figure. All other Soviet republics show the same 6-7% growth, with or without oil, and only in the case of Russia some people feel the need - for some inexplicable reason - to thank the Leader for the morning sunrise.

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#6) On December 08, 2007 at 9:01 PM, MakeItSeven (31.92) wrote:

EScroogeJr,

GDP growth is not the only thing that matter, it's oversimplistic to think that way.

Here's from the link from the Economist:

"Emerging Europe, however, is flashing red, with widening current-account deficits, rising inflation, soaring bank lending and property bubbles. Indeed, Hungary and Turkey appear prudent compared with the Baltic states. Latvia has a current-account deficit of 24% of GDP, inflation of 13% and property prices rising at an annual 60%. The economy is seriously overheating, but its currency is pegged to the euro, which means it cannot raise interest rates. Estonia, Lithuania, Bulgaria and Romania also have current-account deficits of more than 12% of GDP. If these smaller economies were included in the table they would all rank at the bottom, below India."

And about Russia:

"The other two members of the so-called BRIC group, Brazil and Russia, also have a better risk-rating than India. Russia's credit boom is frightening, with lending up by 55% in the past year, but the economy is sheltered by large external and budget surpluses, thanks to high oil prices."

The 55% in bank lending is actually necessary to catch up, if you believe the CIA fact book:

"During PUTIN's first administration, a number of important reforms were implemented in the areas of tax, banking, labor, and land codes. These achievements have raised business and investor confidence in Russia's economic prospects, with foreign direct investment rising from $14.6 billion in 2005 to an estimated $30 billion in 2006.

...

The banking system, while increasing consumer lending and growing at a high rate, is still small relative to the banking sectors of Russia's emerging market peers." 

The banking sector is really the life blood of the economy.  The fact that it is increasing at a "frightening" rate is an indication that the economy is accelerating fast; the banking system is functional; and people are borrowing to invest/purchase since they feel secure with their financial situation.

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#7) On December 08, 2007 at 9:15 PM, camistocks (< 20) wrote:

escrooge, I follow politics for 20 years and have become a bit of a cynic. I have heard the term "dictator" applied too many times to too many people. Putin, Ahmadinejad, Hugo Chavez...

In my experience people use this term to discredit leaders, who embrace socialism as stateform, or even worse, who dare to criticize US politics and extreme capitalism. Usually it's being applied by right wing people, "neocapitalists", people who don't want to pay taxes and want to get rich superquickly.

Kasparov would have never done this media stunt, if Putin was really a dictator. Because you would have never heard anything again from Kasparov, he would rot somewhere in a Gulag in Siberia by now. Kasparov is a populist! I wonder what you will say when Putin will simply retire next year...

For true dictatorships, try Saudi Arabia, Jordan, Egypt. Note: you never hear criticism about those regimes in the mainstream media. Why? Because they are US allies...

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#8) On December 09, 2007 at 1:46 AM, EScroogeJr (< 20) wrote:

I must respectfully disagree with both of the above comments.

First, MakeItSeven's opinion that even though Putin wins no kudos for GDP growth, we should at least thank him for the absence of 13% inflation and 60% rise in property values. This is just factually wrong. This year's inflation is 10% and rising, and would have hit 13% if he didn't resort to price controls, socialist-style. Property values rose 100% last year and stabilized only now, but not before Moscow had caught up with New York. You're correct in saying that oil prices provide a cushion. However, before we rush to praise Putin's wisdom, may I point out that Putin's contribution to China's growth that is driving up oil prices is exactly 0.00%? Putin did some reforms during his first term. It was important in 2001; it has no bearing in 2007. The processes unfolding now are very different from those dust-covered reforms that you read about in Wikipedia. What matters for today's business climate is the following: the Sechin group is rising to power, all private businesses larger than a grocery store are being expropriated by the government, preparations for territorial expansion in the Caucasus are under way, state-run economy is being reinstated, strategic currency reserves are about to be plundered by the above-said Sechin group. What else? Yes, the new ideology. Delivering the world from the disease of human rights and secular thinking, nothing short of that. Readiness to follow this ideology, sacrificing economic interests, security, and common sense. Is this what you call a "better risk ratings than India"? Forget about capitalist riches of globalization. Welcome to Stalinism 2.0.

camistocks,

dictatorship is a term that is frequently abused, but it doesn't mean that you should be embracing the same propaganda, mirror-reflected and extend your sympathies to everybody who is labeled a dictator. The fact that the media is hypocritical about Saudi Arabia, Jordan and Egypt doesn't make Iran a beacon of freedom (Chavez is a more complex case, at least it does seem in his case that most of the Western criticism is unwarrantied). By the way, I wouldn't invest a single dinar into any one of those "friendly dictatorships" except China. China is that rare case of a dictatorship bent on modernization. Don't confuse it with a burgeoning Orthodox cleptocracy.

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#9) On December 09, 2007 at 5:02 AM, abitare (43.81) wrote:

The Cold War is being re-fought here on this blog.

I try not to invest  in things I do not understand ie Russia. Also I think BRIC is being over bought, but unfortunately the US is being led by corrupt fools and a dollar destroying FED.

So what can you do? Gold and oil have already risen 3-5 times higher in 4 years? I am going to start collecting guns and ammo. Maybe 9MM, 5.56MM 7.62x39mm rounds can replace the fiat currency?

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#10) On December 09, 2007 at 10:35 AM, camistocks (< 20) wrote:

Oh and about those eastern european states! People there have mortgages that are denominated in Swiss Francs, because the CHF has had a very low interest rate, until now. Since they are in the Eurozone, everything was fine, since the CHF has declined against the Euro, a carry trade, if you like.

But the Swiss Franc will rise. Be careful! This is the next accident waiting to happen. For example: 80% of mortgages in Austria and Hungaria are in Swiss Franc!

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#11) On December 09, 2007 at 6:08 PM, MakeItSeven (31.92) wrote:

You simply make up unsubstantiated lies again and again, EsScroogeJr.

If you want me to respond, please cite sources.

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#12) On December 09, 2007 at 8:41 PM, EScroogeJr (< 20) wrote:

http://en.rian.ru/russia/20071119/88688659.html 

http://www.irn.ru/gd/?class=all&type=1&period=5&step=week&grnum=1&currency=1#begin


 

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#13) On December 10, 2007 at 1:05 AM, MakeItSeven (31.92) wrote:

You simply make up unsubstantiated lies again and again, EsScroogeJr.

If you want me to respond, please cite sources.

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#14) On December 10, 2007 at 9:45 AM, EScroogeJr (< 20) wrote:

Having said that, the latest piece news was completely unexpected and may in fact cause me to temper my pessimism. Medvedev should be given the benefit of the doubt.

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