Rouble Crashes Out:
50% Below and Still Falling...................
Economic Crises In Russia: Who Is To Blame?

In less than one hour, President Putin will address the Russian people on what is probably the

worst crisis he has ever had to face in Office.

The 'Evil' Foreigners (Same Old Pogrom, Different Time Zone)

The President, no doubt, will emphasize that it is foreign speculators who, in consort with a lunatic fringe in Congress and in the Ukraine, is attempting to destroy the Russian economy and responsible for the fall in the value of the Rouble.

Europe, he will also say, is going to pay a heavy price if it continues to support such foolish policies.

He will emphasize that the fundamentals of the Russian economy are strong and that Russians must show patriotism at this time in history.  But is this the full picture?

Russian Roulette (European Union style)

Russia, through it's own reckless policies in the Ukraine has literally split the country in two – a potentially (in the future) economically prosperous Eastern Region and the rest, an economic abyss- which is a leftover for the European Union and The United States to finance.

Again, who is to blame for this?  President Putin will no doubt blame the United States - but in fact it was the United States which stressed that the Ukraine should remain as a single entity – with no breakaway regions whilst the European Union was adamant in creating chaos by encouraging the Nationalists to reject talks which would have left the former regime at the helm, brought in the New Democrats, and, through a process of graduated reform over, say, two decades, brought peaceful change to the whole united Ukraine, as one single country.

The European Union in it's arrogance and high-handed bureaucratic handling of the matter – no strangers with the velvet glove-iron fist the EU has become famous for – decided at a time of historical crisis in Ukrainian politics, to play a 'heavy'  (and losing) hand.  It raised the stakes to all or nothing.

Is There Any Intelligent Life In the Western Media?

Journalists are no more intelligent in Western Europe as they are controlled and under the thumb of the State in the FSU. For this reason they will all most likely miss the fact that Victoria Nuland was adamant in her expletive deleted criticism of the European Union because she and her advisers knew the chaos such European Union stupidity would create in the Ukraine, and potentially create crises with the former Soviet Union. History has already vindicated Ms Nuland – who received blistering criticism as the Bête Noire. Through 'the bullhorn of President Putin' (Russia Today) her name became synonymous with the 'Anti-Christ' nevermore to be mentioned on Russia Today, except in this context or mocking reference. But Nuland was entirely correct in her assessment of the best way forward for both the Ukraine and it's superpower neighbors.  It was the EU which torpedoed all hopes of a peaceful transition.

(See my earlier blogs about the Ukraine.)

Uncontrollable Rollercoaster Ride

The present economic crises in Russia is as much outside the control of the United States as it is a direct result of falling oil, gas and commodity prices worldwide – a direct result of economic recession.

Commodity prices were underpinning the stability of the Rouble as Russia does not manufacture anything the Third World wants to buy.   It's fledgling industries are so hi-tech they are only appealing to a limited sector of the developed world.  It's businessmen are totally out of their depth when attempting to communicate with brown and Black-skinned individuals in much of the Third world.  Even the presence of Russian tourists is often something of an embarrassment as they cannot adjust to environments where they are ordered to behave themselves – in Third World holiday resorts throughout Asia, Africa and the Caribbean.

So overall Russia has a very limited footprint outside it's 'comfort zone' (the FSU client States) and this, at a time of economic crises means they have few (if any friends) to 'bail them out'.

The Value of Commonwealth Friendship and Trust Transcend Differences

The British economy, for example, was at one time 'saved' by a Third world (African) country when the British Pound (Sterling) was tethering on the brink of collapse.

At other times, friends have assisted financially to ward off potential crises both in the United States and in the United Kingdom.

I cannot see anybody rushing in or falling over backwards to save the Russian economy from collapse in the same way – even if the fundamentals are as sound as The President will no doubt say they are. Perhaps China will offer moral and financial support – and indeed this could be significant in terms of China's global footprint – but beyond that, it's the Russian economy itself which will need to evolve from being raw materials-dependant to an export-driven manufacturing goods and services exporting country to (mainly) it's own 'client' federated States.

Indeed former President Medvedev, in an Annual Presidential address, said that his wish was to move Russia away from being a raw materials-based 'slave' economy – 'like some Third World country'. Until this happens, the Russian Bear will continue to be at the mercy of world commodity price fluctuations and no amount of temporary propping up will change that.

When you now add in factors such as The Ukraine, EU and US sanctions because of differences in policy over The Ukraine and the annexation of The Crimea, the cancellation of the Bulgarian oil pipeline transit deal, an already faltering economy caused by over-consumption of foreign imports (lacking in Russia and demanded by supply-demand free market consumer factors) you have a truer picture than the one which President Putin is about to paint, in less than one hour, to the Russian people.

No doubt 'the Bullhorn' will carry it live (!)   So grab your popcorn folks and get ready for the show of the year.

Addendum:both in the United States and in the United Kingdom.

 

And what did President Putin  actually say on on these major issues?



The President's Annual Address:

• President Putin did not blame foreign speculators (by name) for the fall in the Rouble - but 'external' conditions or factors for the economic crises

• President Putin did blame Europe and the U.S. for scuppering the Minsk talks on the future of a united Ukraine

• President Putin blamed the West (and NATO) for creating new 'Berlin' Walls to encircle Russia and cut it out from European markets
  
  

• President Putin said that the fundamentals of the Russian economy are strong
  
  
  
  

• President Putin said the Russian people regarded the 'return' of Crimea to Russia, through a democratic choice, as a right which corrected a 'wrong' of the past

• President Putin praised the ordinary 'worker' as the cornerstone of Russia over the centuries

• President Putin lambasted Russian businessmen who created offshore funds and failed to repatriate them to the country

• President Putin said that he expected the current economic crises to continue for the next 2 years

Much of the rest of the Annual address was concerned with internal domestic politics within Russia and within the Russian Federation

 You can view the President's Annual Address in it's entirety at 'Russia Today' website:

http://rt.com/news/215471-putin-press-conference-updates/

© Patrick Emek, December 18^th, 2014