Financial collapse leads to war

Scanning the headlines in the western mainstream press, and then peering behind the one-way mirror to compare that to the actual goings-on, one can’t but get the impression that America’s propagandists, and all those who follow in their wake, are struggling with all their might to concoct rationales for military action of one sort or another, be it supplying weapons to the largely defunct Ukrainian military, or staging parades of US military hardware and troops in the almost completely Russian town of Narva, in Estonia, a few hundred meters away from the Russian border, or putting US “advisers” in harm’s way in parts of Iraq mostly controlled by Islamic militants. The strenuous efforts to whip up Cold War-like hysteria in the face of an otherwise preoccupied and essentially passive Russia seems out of all proportion to the actual military threat Russia poses. (Yes, volunteers and ammo do filter into […] Read More

How One Russian Farmer Repaid His “Lickspittle Good-For-Nothing” Bankers

For Russian farmer Alexander Bakshaev, the crushingly high interest rates the banks were charging him on his loan inspired a smelly protest… As Pro-Sibir reports, the fuming farmer repaid his loan with the equivalent value in manure. As NBC News reports, the manure was worth 40,000 rubles ($610) – the exact amount he owed the bank, Bakshayev told Sibkray.ru. “The whole of Russia somehow owes something now to these lickspittle good-for-nothing bankers with nothing to do,” Bakshayev was quoted as saying. He owns 70 cows and 20 piglets but his total debt is 1 million rubles ($15,400), he told Sibkray.ru. That’s 34 times the average monthly salary in Russia of about 29,000 rubles ($450). The Kremlin has said it relies on Russian farmers to fill the gap caused by an import ban on Western foodstuffs imposed in retribution for sanctions over the war in Ukraine. However, punitive interest rates […] Read More

Russian Food Suppliers Have Begun Halting Shipments

Until now, when it comes to the fallout in the Russian economy from the crude price plunge leading to a collapse in the Russian currency, most of the interest has been on how the Russian financial system recovers and/or survives and just as importantly, what Putin‘s response would be. Just yesterday, we wrote that as a result of capital controls fears, many western banks led by Goldman Sachs had halted liquidity to Russian clients and other local entities. However while the adverse impact on the Russian banking system has been mostly confined to the upper class – since there is virtually no middle class in the country to speak of – the second cold war of words, which rapidly morphed into a very hot financial war, is about to hit the very ordinary Russian on the street, because as Russia’s Vedomosti reports, citing vegetable producer Belaya Dacha, juice maker […] Read More