Russian Regions Are Running Out of Money

[Valin]

Real Clear World:

Stratfor

8/7/15

 

Forecast

• The potential for regional instability will grow as Russia's economic crisis drags on.
• Many of Russia's regional governments will default unless the Kremlin steps in.
• Russia's focus will shift inward as its economy worsens, limiting its bandwidth to act abroad.

Analysis

 

 

Russia has entered its second recession in six years. The effects of the country's economic downturn have begun to trickle down from the federal level, spreading to Russia's regions, cities and people. The federal government has long relied on the regional and municipal governments to carry their own burdens, and many are teetering on the verge of bankruptcy or collapse as Moscow siphons off a growing share of their funds. The Russian people are also beginning to feel the economic pressure more acutely as an increasing number of citizens fall under the poverty line and watch their savings dry up.

 

The Kremlin can do little to alleviate the worsening crises, since its own resources are finite, and the road to economic recovery is long. Instead, it has responded with political and security measures aimed at preventing or cracking down on dissent among the regions and people. But these steps will do little to address the Russian economy's deep structural flaws. Unless oil prices rebound or the Kremlin steps in and drains its coffers, the economic and financial pressure weighing on Russia will only grow over the next few years. The Kremlin, in turn, could tighten its control to prevent mass protests and keep regional governments from destabilizing.

 

Russia's Regions Carry Heavy Debt Burdens

 

(Snip)

 

 

[Pepper]

@Valin

 

Let me revise that for you

 

Russia The United States of America has entered its second recession in six years. The effects of the country's economic downturn have begun to trickle down from the federal level, spreading to Russia's all States, cities and people. The federal government has long relied on the regional and municipal governments to carry their own burdens, and many are teetering on the verge of bankruptcy or collapse as Moscow Washington DC siphons off a growing share of their funds. The Russian American people are also beginning to feel the economic pressure more acutely as an increasing number of citizens fall under the poverty line and watch their savings dry up.

The Kremlin White House can do little to alleviate the worsening crises, since its own resources are finite, and the road to economic recovery is long. Instead, it has responded with political and security measures aimed at preventing or cracking down on dissent among the regions and people. But these steps will do little to address the Russian American economy's deep structural flaws. Unless oil prices rebound or the Kremlin Congress steps in and drains its coffers, the economic and financial pressure weighing on Russia the United States will only grow over the next few years. The Kremlin Congress, in turn, could tighten its control to prevent mass protests and keep regional governments from destabilizing.

[Valin]

@Pepper

 

"Trends That Cannot Continue......Won't"

Herb Stein

 

We have to really wrap our heads around that.

 

From Last Night

 

 

Here's 2 different views

[Pepper]

@Pepper

 

"Trends That Cannot Continue......Won't"

Herb Stein

 

We have to really wrap our heads around that.

 

From Last Night

 

 

Here's 2 different views

 

 

Instead of trying to “save” this horrible program, as politicians of both parties perennially propose, we should end it. Short of simple abolition, the program should be phased out, beneficiaries should be paid out of the general fund as with any other welfare program (which is at least honest accounting) and young people should be free to opt out of the tax with the full understanding that there will be no government retirement check for them when they hit old age. There won’t be anyway.

[Valin]

@Pepper

 

I don't think it is a bad idea to get rid it SS. Large number of problems with. All I will say is Good Luck getting rid of it. That'll be a real tough sell.