This from Moscow:
Now of course the Russians are not selling as much overseas either, but that is mostly oil. Sure, the sales bring in good money, but we are experiencing deflation overall, and those new domestic companies are necessarily small and favored by nature in credit deflation.
I read this article as good news for Russia, both ways.
Feel free to forward this by email to three of your friends.
Total imports plummeted $25.7 billion, a fall of 37.6 percent compared to the same period last year, while exports plunged 23.8 percent to $57.6 billion, the data showed. This left Russia with a trade surplus of $31.9 billion — roughly the same amount as in the first two months of 2014.Wait... that means the Russians are not getting as much, buying as much, from overseas as they were. Now some of that may mean less purchases overall, but it also necessarily means the Russians are sourcing more domestically. And this means a price rise for local producers, and a price rise calls into creation more producers, those who compete on design, and go for division of labor.
Now of course the Russians are not selling as much overseas either, but that is mostly oil. Sure, the sales bring in good money, but we are experiencing deflation overall, and those new domestic companies are necessarily small and favored by nature in credit deflation.
I read this article as good news for Russia, both ways.
Feel free to forward this by email to three of your friends.
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