Putin is Ruining Russia

[I/O]

The way the US GDP is measured is very odd.  The number will probably only go upward, which in theory would mean our economy is growing.  For example IF it cost 25K a year to go to USC 10 years ago, and now it costs 50K to go now, then the economy has 'grown' 100% in that time period.  A college textbook can cost $225.00...that factors into the GDP...a comparable book like that in China I believe costs considerable less.  So yes our economy appears very large, but if somebody pulls the fluff from it, the economy isn't as big as it appears. 

What you are trying to say is that underlying inflation must be factored in this is correct therefore, it must be applied to both sides of the equation - China currently 2.42% vs USA 2.07% - much of a muchness which discounts your theory substantially.
 
Whilst China is growing more quickly (China GDP growing currently at around 7.8% and USA GDP at around 2%), there remains a large gap between the quantum values and whilst, on current trends, the line will cross at some point, it has a way to go yet. 
 
On the USA vs China subject, consider this cliché - 'If you owe a million, you're in trouble, if you owe 10 million, the bank's in trouble'......

[Photo Guy]

Steveboy and others who would like to know how Putin is ruining Russia, can find my opinion in the first few pages of this thread. I'm the original poster.

A quick summary:
Putin has annexed Crimea. He has lied about his use of military, his motives, and his quest for a peaceful settlement. His pretext- wanting to 'protect' Russian-speakers everywhere is nuts. Bottom line now- most of the world does not trust him, and so do not trust Russia. It's seen as a bad place for investments. Most of the world also believes his military support for the separatists in Ukraine has led to many deaths. Besides not trusting Russia, millions of people are afraid of his 'New Russia' idea, which implies a goal of Russian expansion. So Putin has incited fear and he looks like a loose cannon. When the world does not trust Russia, it hurts Russia... He's ruining it.

[Doll]

Democracies permit everyone to have an opinion and the decision to listen to that opinion is voluntary.  You should try it.

I am- my decision is NOT to listen 

[fathertime]

What you are trying to say is that underlying inflation must be factored in this is correct therefore, it must be applied to both sides of the equation - China currently 2.42% vs USA 2.07% - much of a muchness which discounts your theory substantially.
 
Whilst China is growing more quickly (China GDP growing currently at around 7.8% and USA GDP at around 2%), there remains a large gap between the quantum values and whilst, on current trends, the line will cross at some point, it has a way to go yet. 
 
On the USA vs China subject, consider this cliché - 'If you owe a million, you're in trouble, if you owe 10 million, the bank's in trouble'......

Hey I/O, actually it isn't current inflation growth was the crux of my point...it was more a snapshot of cost of goods and services at this  moment in time.    In addition, US inflation is also measured in a manner that I don't think is truly representative of what the actual inflation is. The same may be the same in China as well. 


To illustrate my earlier point, many services are very expensive here in the states compared to what they cost in China... So for example if a tutor costs 15.00 dollars an hour here, and in China one can be had for 5.00 dollars an hour...the same service would grow the US GDP by triple that of China...There are many of these types of examples which leads me to believe that China probably already has a larger real economy than the USA. 


Fathertime! 

[JohnDearGreen]

Whats the best vodka to drink while sitting at the computer?

None.  Upper class Russians are turning to whiskey/bourbon.
http://firstwefeast.com/eat/wealthy-russians-choose-whiskey-over-vodka/

[lordtiberius]

None.  Upper class Russians are turning to whiskey/bourbon.
http://firstwefeast.com/eat/wealthy-russians-choose-whiskey-over-vodka/

Not just the wealthy

http://vk.com/kamikadzedead?z=photo291919_307052413%2Falbum291919_0%2Frev

Pro-democracy, Anti-Putin Russian blogger Dmitry Ivanov

[sleepycat]

I am- my decision is NOT to listen 

Pretty sure it's the same decision Putler had made regarding advices received from his own economists about the state of the Russian economy...

[I/O]

my decision is NOT to listen

I thought my wife lived in AU...

[lordtiberius]

Canada sent $ 5 million to Ukraine (almost nothing).  Will Aussie follow suit?

[I/O]

Canada sent $ 5 million to Ukraine (almost nothing).  Will Aussie follow suit?

We're sending 10 Million to Gaza to help repair what we helped create - stepping on the gas and brakes at the same time again.....

[Gylden]

Here is a chart of world GNP.
 
Note: Russia is just under Costa Rica at position 102.
 
http://www.studentsoftheworld.info/infopays/rank/PNBH2.html
 
 

[sleepycat]

The Russian mafia now must be very excited at the prospect of profiting from supplying contraband EU food products to the domestic black market.

On the other hand they might just act patriotically and ignore this profit opportunity...

[AC]

The Russian mafia now must be very excited at the prospect of profiting from supplying contraband EU food products to the domestic black market.

On the other hand they might just act patriotically and ignore this profit opportunity...

 

[Shadow]

A community that is self-sufficient has a GDP of 0. Which explain a lot of why some countries have a lower GDP than others.

[Doll]

 Poland asks US to import apples banned by Russia http://news.yahoo.com/poland-asks-us-import-apples-banned-russia-135221139.html
 

[fathertime]

Poland asks US to import apples banned by Russia http://news.yahoo.com/poland-asks-us-import-apples-banned-russia-135221139.html
 

How counter-productive....Polish apples shouldn't have to travel 1000's of miles (wasteful) to find a mouth to eat them here.  The sanctions are just making everything harder for everybody...and not doing anything to help the situation.


Fathertime!   

[Doll]

agree 500%

[lordtiberius]

500% another Rooskie Referendum?

[Doll]

What?

[2tallbill]

A quick summary:
Putin has annexed Crimea. He has lied about his use of military, his motives, and his quest for a peaceful settlement. His pretext- wanting to 'protect' Russian-speakers everywhere is nuts. Bottom line now- most of the world does not trust him, and so do not trust Russia. It's seen as a bad place for investments. Most of the world also believes his military support for the separatists in Ukraine has led to many deaths. Besides not trusting Russia, millions of people are afraid of his 'New Russia' idea, which implies a goal of Russian expansion. So Putin has incited fear and he looks like a loose cannon. When the world does not trust Russia, it hurts Russia... He's ruining it.

Photoguy here's the deal, Putin is gambling on the price of oil
staying high. As long as it does then none of the stuff you say
will actually happen.

Obama and others have declared war on oil and strife in the Middle
East have kept the prices high and will continue to do so for the
near future.

Corruption is Russia's number one problem and that's why there
is no foreign investment. There wasn't any foreign investment
before the Russia/Ukraine crisis, there isn't any now.

Some day in the future oil will go down and that's when things
start to fall apart.

[lordtiberius]

Inflation has already hit Russia.  Have you seen Russian stores lately?

[Gylden]

A community that is self-sufficient has a GDP of 0. Which explain a lot of why some countries have a lower GDP than others.

???  you have a strange idea of what GDP is.
 
" Definition of 'Gross Domestic Product - GDP'
 
 The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

GDP = C + G + I + NX

where:

"C" is equal to all private consumption, or consumer spending, in a nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)"


 Although in my opinion GNP is much more relevant in this circumstance.

Definition of 'Gross National Product - GNP'


"An economic statistic that includes GDP, plus any income earned by residents from overseas investments, minus income earned within the domestic economy by overseas residents. "

[Shadow]

???  you have a strange idea of what GDP is.
 
" Definition of 'Gross Domestic Product - GDP'
 
 The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

GDP = C + G + I + NX

where:

"C" is equal to all private consumption, or consumer spending, in a nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)"


 Although in my opinion GNP is much more relevant in this circumstance.

Definition of 'Gross National Product - GNP'


"An economic statistic that includes GDP, plus any income earned by residents from overseas investments, minus income earned within the domestic economy by overseas residents. "

If a community is self-sufficient the C is equal to zero.
This is exactly what I have stated.
If you compare two communities where the first is self-sufficient without the need to spend for daily consumption and the second is not, the second will have a much higher GDP.

And while in the purest case the consumption of the self-sufficient community can be quantified to correct this, we all know this does simply not happen in current practice when calculating GDP. If there is no money flowing, it does not exist.

[Gylden]

If a community is self-sufficient the C is equal to zero.
This is exactly what I have stated.
If you compare two communities where the first is self-sufficient without the need to spend for daily consumption and the second is not, the second will have a much higher GDP.

And while in the purest case the consumption of the self-sufficient community can be quantified to correct this, we all know this does simply not happen in current practice when calculating GDP. If there is no money flowing, it does not exist.

I think you are a little confused or are all products in Russian shops free? Everything that one must pay for is calculated into GDP, regardless if it is imported or produced locally.
 
Can you define what you mean by self sufficient?

[Shadow]

I think you are a little confused or are all products in Russian shops free? Everything that one must pay for is calculated into GDP, regardless if it is imported or produced locally.
 
Can you define what you mean by self sufficient?

If you live in a village that grows its own products and has its own cattle, what do you pay for?