Russia is seriously running out of cash

Following 18 months of recession, Communist dictator Vladimir Putin has opened crisis talks with the Federal Treasury after it was revealed that the government is preparing to steal from the national welfare fund in a desperate attempt to save Russia's collapsing economy:

Russia is bleeding cash at an alarming rate. After almost two years in recession, the country's rainy day fund has shrunk to just $32.2 billion this month, according to the Russian Finance Ministry.

It was $91.7 billion in September 2014, just before oil prices started to collapse. And it's getting worse. Analysts expect the fund will shrink to just $15 billion by the end of this year and dry up completely soon after that.

"At the current rate, the fund would be depleted in mid-2017, perhaps a few months later," Ondrej Schneider, chief economist at the Institute of International Finance, wrote in a note this week.

The government's reserve fund is designed to cover shortfalls in the national budget at times of low oil and gas revenues. Russia's 2016 budget is based on the assumption the country would be able to sell its oil for $50 per barrel.

But the average oil price in the first eight months of the year was less than $43 per barrel. Oil now makes up just 37% of all government revenues, compared to roughly 50% just two years ago. The government will reveal next year's budget after a parliamentary election this weekend.

This slump means the government is having to tap the rainy day fund again and again.

The government indicated that once the reserves are depleted, it may have to turn to its welfare fund. Kremlin says the welfare fund has over $70 billion in it. The fund is not intended to cover budget shortfalls, but rather to finance future pensions and large-scale investment projects.

(Source).

In January it was reported that Russians are losing patience with Putin's high taxing government as the economic crisis deepens. Since then, the situation has only grown worse.

Russians are waking up to the harsh reality that the economic crisis is nowhere near over, despite what President Vladimir Putin has been telling them.

There have even been several protests against the economic crisis -- a rare sight in a country where demonstrations don't happen very often.

Ordinary Russians are suffering because of the devastating impact of low oil prices and Western sanctions. Real wages fell 9.5% in 2015, with an average Russian earning just over 30,300 rubles ($385) a month last year, official data show.

At the same time, prices are rising fast. Inflation hit 12.5% in 2015 and could take longer to slow down if the ruble continues to fall. The currency has plunged since the start of the year, hitting an all-time low of 85 rubles per dollar on Thursday.

Official statistics show that over 20 million Russians, roughly 14% of the population, are now living in poverty. That compares with 16 million in 2014.

(Source).

Putin and his cliché will keep in power because they control the media. They can blame (and do) all their woes on the EU and the US. The recent elections which were won by Putin's party were the result of opposition parties being marginalised, ignored and dissuaded. They were certainly unable to have access media that pretended they were not there.

If the only thing the Russian people hear is how great Putin is, then that's what they will believe.

a reply to: MongolianPaellaFish
Yes, Russia's economy is bad. That's why they need to befriend China, which in its turn needs the military potential of Russia. I just don't see the reason you focus on the Putin's dictatorship. It's a communistic in Russia, but is US or EU very much better? It's the same fish tank everywhere, from New Zeland to Island...

a reply to: MongolianPaellaFish

No wonder he wants Trump for President. We already give Russia Aid. God knows what we will give them with Trump as President.

Oops...I know some of the Putin fans didn't know we give Russia food aid, at least. Sorry to burst your bubble.

I apologize for the shock.

a reply to: reldra

He will need foreign labour to build that wall. He can't use Mexicans so he will ship over a load from Putins Construction company.

originally posted by: TheKnightofDoom
a reply to: reldra

He will need foreign labour to build that wall.

Hmm, Mexicans? $10/hr is fair, wait no, I think $13/hr will be the new national minimum. That is hard work. At least $13 /hr.

originally posted by: paraphi
Putin and his cliché will keep in power because they control the media. They can blame (and do) all their woes on the EU and the US. The recent elections which were won by Putin's party were the result of opposition parties being marginalised, ignored and dissuaded. They were certainly unable to have access media that pretended they were not there.

If the only thing the Russian people hear is how great Putin is, then that's what they will believe.

So Russians do not speak English/French/German/Spanish/... and they do not have access to media worldwide? Not a bit of Putin's popularity is authentic? Everything is driven by propaganda?

What about Yeltzin "democratic" era laced with western "advisers", in fact economic hitmen? It will take at least another generation when ordinary Russian forget this foreign "help".

a reply to: JanAmosComenius

Of course many can see anything on the net they want, kids know how to get around firewalls.

I want to go on about jailing rock bands and such but I am aughing so hard that I can't go on about putin and his popularity......

a reply to: reldra

More like 'like him or be quiet or jail'.

originally posted by: JanAmosComenius

originally posted by: paraphi
It will take at least another generation when ordinary Russian forget this foreign "help".

Posted by reldra:

I wish they would forget it now, but we still send food and money.

edit on 22-9-2016 by reldra because: quting messing up

a reply to: reldra

There is no such think like national firewall. ISPs are forced to block some sites on court order. Many EU countries have much stronger laws in this field.

originally posted by: reldra

originally posted by: JanAmosComenius

originally posted by: paraphi
It will take at least another generation when ordinary Russian forget this foreign "help".

I wish they would forget it now, but we still send food and money.

Who is sending money and food to Russia? Is it something like "food for oil"

Why do you think it is good to forget that you were robed by some entity?

a reply to: JanAmosComenius

Lots of pl can get around firewalls. I can to watch BBC shows abd CBC shows. Chinese people can to watch 'shameless'. Not that difficult.

originally posted by: JanAmosComenius

originally posted by: reldra

originally posted by: JanAmosComenius

originally posted by: paraphi
It will take at least another generation when ordinary Russian forget this foreign "help".

I wish they would forget it now, but we still send food and money.

Who is sending money and food to Russia? Is it something like "food for oil"

Why do you think it is good to forget that you were robed by some entity?

Why are the quotes messing up? reldra said this:

I didnt say anything about food for oil. Russia is not a source of oil for the US.

edit on 22-9-2016 by reldra because: (no reason given)

originally posted by: reldra
a reply to: JanAmosComenius

Lots of pl can get around firewalls. I can to watch BBC shows abd CBC shows. Chinese people can to watch 'shameless'. Not that difficult.

But there is no need in Russia unless you are interested in snuff porn or violent jihad.

a reply to: reldra

What rock bands are you talking about?

We don't get oil from Russia and I never posted : "is it something like "food for oil"
Why do you think it is good to forget that you were robed by some entity?"

That is not even how I talk.

originally posted by: Whereismypassword
a reply to: reldra

What rock bands are you talking about?

I recall pussy riot. There are also members of the press.

originally posted by: JanAmosComenius

originally posted by: reldra
a reply to: JanAmosComenius

Lots of pl can get around firewalls. I can to watch BBC shows abd CBC shows. Chinese people can to watch 'shameless'. Not that difficult.

But there is no need in Russia unless you are interested in snuff porn or violent jihad.

I can only imagine what Russia cemsors form the internet as it has always been a country with censorship.