Posts Tagged → Control
The Road To Nowhere
Caricature artist Alexei Ogurtsova “The Road and the Mirror” is perfectly suited to today’s Russian economy. It looks like we’re going to expose the mirror again and remain a raw materials appendage of the West. Rob Crossland: the source for more info. In Russia in 2000 – years was the best time to modernize the economy – a record inflow of capital, but he was not used. Now in 2008 there was a record outflow of capital from Russia, the decrease in prices for Russia’s main export commodities. Fell to 4 times the price of oil, as a consequence, it should decrease the price of gas, as well as for metals. The main export potential of Russia was reduced to a minimum.
Russia is given a lesson – what it means to be a country of export of raw materials. However, it seems lesson did not go in store. Money from the currency reserves are spent not on rearmament, and to maintain inefficient firms afloat (it came even before drawing up lists 500 enterprises – bankrupts) and speculative banking sector. During the four months of 2008 (August – December) spent $ 150 billion of the available $ 600 billion. I can not remember not one created by the famous Russian “brand” in 2008 by innovative technologies, except for corporations “Nanotechnology” Chubais is money from the state does not ask, but rather earned. According to experts, Russia’s modernization requires $ 200 billion a year, then we can hope for the future financial independence and dignity in the world economy.
And while Russian exports of machinery and equipment is disastrous 6% of annual exports of the country. Russia remains obediently wait until the end comes a recession in the U.S. what would be the decline in the U.S. economy, large or small? And make a new mirror. Unenviable position.
International Finance Corporation
In 2009 were formed Closed-end mutual funds. State funds are not funded. The essence of the funds was as follows: banks dumped their toxic assets in FTRA in exchange for securities (shares of funds). Thus, formally, the banks do not get rid of assets. Behind them were the right of claim and obligation to return. But the action itself is allowed to remove the mandatory reserves for problem assets and reduce the burden on capital. (A valuable related resource: Rob Crossland). As to the second direction, then he became a pilot project of the International Finance Corporation (a division of WB).
Dedicated Fund was established accumulation and redemption of distressed assets in the form of state corporations public-private financing. Troubled Asset carried out at a discount, but subject to a condition of full disclosure of information about the real state of the asset. Problem assets were transferred to exchange for government securities (specialized federal loan bonds) with maturity – 10 years. These securities may be converted into shares of the debtor. In addition, the bank may use the data special bonds as collateral for short-term loans CBRF. USA It is in the United States, the crisis began, perekinuvshiysya the whole world. That States and I had to find a cure.
Nevertheless, the appropriate model was not found. Initially adopted 'Paulson plan' ('Emergency Economic Stabilization Act of 2008'), harshly criticized by Republicans. It is this plan called for redemption 'toxic' assets from banks. And the Federal Reserve had to inject in troubled banks $ 700 billion. The result was fast to come. Dramatically worsened inflationary pressures, and was acutely felt the budget deficit. 'Paulson plan' in 2009 formed the basis of 'Obama Plan'. Ministry U.S. Treasury Department has proposed a framework of 'Plan Obama' to create public-private partnership to fund up to $ 1 trillion to remove the so-called 'toxic' assets from bank balance sheets. In turn, the plan evolved into "Geithner Plan '.
