Putin’s Disastrous Economy
In this year’s budgetary address, so-called “president” of Russia Dmitri Medvedev promised the nation that Russia’s soaring deficit, which will be over 3.5% of GDP next year, would be halved by 2013.
Not only is that not going to happen, we learned last week, but Vedomosti reported (Russian-language link), Russia’s 2013 budget gap will be twice what the Kremlin had predicted and only marginally lower than what Russia will face next year even though the Kremlin’s income is projected to increase substantially through rising oil prices and sales of state assets. If that income doesn’t materialize as projected, the deficits will soar even higher, to record new levels in 2013 and beyond.
In more devastating news for Russia last week, ConocoPhilips pulled out of its partnership with Lukoil, one of the highest-profile Western investments in Russian history. CP finally threw up its hands after years of being bullied and defrauded by its Russian “partner” and the Kremlin, making it absolutely clear to the world what happens to any foreign investor foolish enough to put faith in the Russian economy.
What more proof could any thinking person require of the absolute, disastrous failure of the Putin economy?
Maybe one of these days, perhaps the people of Russia will wake up and realize that their country is ruled by a moronic, violent ape with absolutely no credentials to manage a complicated democratic economic system.
If they don’t, they will watch this KGB thug named Putin drive their economy towards the same apocalyptic collapse that his predecessors achieved in the USSR.