Russia and Private Credit

The Russians cut the income tax to a  flat 13% a decade ago, which set the stage for ean entrepreneurial renaissance.  It has not shown up yet, mostly because of the safety hammock.  As credit becomes more scarce, the source of cheap imports will get more expensive, and domestic production will revive:

"At its peak, about $500 billion a year was being recycled back into financial markets. This will be the first year in a long time that energy exporters will be sucking capital out," said David Spegel, global head of emerging market sovereign and corporate Research at BNP.
In other words, oil exporters are now pulling liquidity out of financial markets rather than putting money in. That could result in higher borrowing costs for governments, companies, and ultimately, consumers as money becomes scarcer.

Non-usury, private credit, that is B2B and B2C credit extension, is necessary and sufficient to make an economy abundant. If the Russians introduce this cultural event, they win the game.

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