Russia Rebounds as USA Sinks

Last August I suggested the sanctions on Russian may turn out to be very good for Russia.  Today Mish is citing a fellow who is now saying the same thing.

But here is something nobody expected. In the first quarter of this year, Russia was doing a bit better than anyone could have forecast. We learned last week that the economy managed to grow by 0.4% in the latest quarter, compared to the zero growth or the outright recession that most economists had penciled in. The ruble is the best-performing currency of the last three months. Even the Moscow stock index has started to recover.

Well, not nobody.  In my teens I would check the arrivals notices of Soviet freighters to Seattle and head down to the docks to visit the sailors on board.  I was studying Russian in High School, so it was a chance to practice my non-skills (the mostly spoke English among the crew we met) and it was a rater enjoyable set or meetings.  learned a lot.

Circa 2004 I spent a couple of weeks in Moscow, with a sister who had been there about five years before.  She described the changes.  So I had a little inkling of how bad it had been and how good it had gotten.  You could see the problems and disparities, but things were improving.  Before and after ten I had blogged on Russia and changes.

If you read the article, it notes the stats on Russia, looking good.  One big reason is Putin and cutting taxes, etc.  Faced with sanction, Putin made the economy even freer as noted in the article.  These economies are improving being who we pretend to be.

Summarizes Mish:

I bought into Russia near the peak of the panic, but not enough. I have plans to add more.

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