Showing posts with label wealth. Show all posts
Showing posts with label wealth. Show all posts

Saturday, August 16, 2025

Ahh, Here We Go!

 Kinda self-evident, actually. 

MOSCOW, Aug 15 (Reuters) - Russian President Vladimir Putin on Friday signed a decree that could allow foreign investors, including top U.S. oil major Exxon Mobil (XOM.N) to regain shares in the Sakhalin-1 oil and gas project. The signing of the decree comes on the day Russian president Vladimir Putin meets Donald Trump in Alaska for a summit where opportunities for investment and business collaboration will be on the agenda, alongside talks to find peace in Ukraine.

We warned, or rather predicted. Just a warm-up if Donny doesn't screw it up. Only REAL wealth matters, not some zeroes in computers. Let's get real, it was always like that but now--Western model of capital is dead ... But that is the whole other can of worms, because Russia emerged as the preeminent global conservative power, while Western conservatism is nothing more than libertarianism (means--fuck you all, as long as I feel good) dressed in the "conservative" rhetoric (euphemism for BS). Yes, sharing is such a communist idea/s. Like American "conservatism" doing fellatio on Zionist cock. 

Sunday, February 9, 2025

A Little Bit On An Inquiry into the Nature and Causes of the Wealth of Nations.

You know, famous Adam Smith's treatise which gives some (not all) reasonable insights into the nature of wealth accumulation. And since I mentioned today this "moron with Ph.D" such as Sarah. C. Paine who for some unknown reason teaches "strategy" in otherwise respectable US Naval War College, there are certain material signs of the wealth. We should start with recognizing the fact that REAL wealth's accumulation is susceptible to such events as continental warfare, which neither the UK nor, especially, the US know. As a result, not experiencing such pleasantries of continental warfare such as material devastation, mass killing off human capital, hunger and immense restoration efforts, it becomes clear why Great Britain, largely through exploiting her Empire, reached the material wealth in XIX century unheard of in history. It accumulated because it didn't fight continental wars--only expeditionary ones. Consider also Netherlands. 

The same process could be observed for the United States in the XX century, which allowed the US to accumulate an enormous wealth due a number of critical geographic and economic factors, and even the Civil War and the victory of the Union in it far from damaging largely agrarian South, in the long run substituted backward and highly unproductive slavery with much more advanced mode of production and agriculture, which saw the United States achieving an unprecedented standard of living in history until the Dust Bowl and Great Depression. Again, absence of continental warfare on a massive scale and all pleasantries associated with it have been largely absent in the history of the United States. Especially for her then emerging massive industrial areas which are located "above" (the nominal North) Mason-Dixon line. I omit here, of course, an immense "exorbitant privilege" the United States captured in the aftermath of the WW II, which saw the world devastated, while the US not only remained intact but profited greatly from this war. 

And we can see even today material manifestations of this accumulated wealth which are numerous--still the best and the largest highway system in the world, dying out but once great American cities with the remnants of great American architecture and numerous well maintained and either well-off or downright wealthy communities which are not gated. Many of those are still around, and Americans love their cars, some of them really good, actually, which long ago became symbols of American freedom. You can also go to any marina anywhere in the US and you will find numerous boat types, from yachts to motorboats, some of them expensive to buy and maintain. Those signs are still there. In Europe they are already diminishing because European wealth for the last 50+ years was based on naive Russians providing affordable energy to Europe, and Europe is becoming and will become poor. The US is undergoing similar process, but superpowers move differently than geopolitical hoi polloi, but the US has unsolvable problem of the immense national debt on her hands.  

Compare now this with historic Russia, which with the exception of her dazzling Tsar Court and parasitic class of landowners, was always poor. And then there have been non-stop devastating wars and Russian Empire/USSR with much of freeloading from the ethnic fringes which at some point of time, especially Middle Asia, required from Russia non-stop laboring in holding them on sustainable economic level. Russian history of the XIX-XX century is one of the non-stop fights with invasions, devastation, restoration and same all over again--no time to have as Stolypin wanted: Give Russia 20 years of internal and external peace and quiet and it will change beyond recognition (c). Today Russia is unrecognizable from even 15 years ago. Never in her history did Russian people live that well as they do today (not without problems, of course). And the signs of accumulating wealth ranging from massive ultra-modern housing, to ever expanding modern highways, to a huge number of automobiles everywhere, to renewed, sometimes dazzling cities are already in place. And here is a little bit on where the US leads Russia (no, not in the production of the surfing boards) in those manifest signs of the wealth accumulation--it is a private aviation. 

The US has it and it is largest, by far, in the world. Here is Piper (one of the models), but the US skies are filled with Cessnas, Moonies, what have you. 

And this is the field in which Russia will never close the gap due to smaller population and lack of own culture of private ownership of such aviation. Make no mistake, there are Russians who own private planes--made mostly in Europe and the US, but it takes a lot of time and disposable wealth to start even contemplating such purchases and ownership. More expansion of airstrips is also required, as well as own production. Russia does have own production of private (small) aviation. Russians do manufacture own private planes, such as amphibious L-72. 

Since 2018 these flying boats and their derivatives went into small serial production and are being produced in dozens every year. Very slow rate production of SK-12 (again flying boat, natural for Russia) also is ongoing. Yes, private aviation is still present in Russia, nowhere near in numbers comparable to the US, but those who own those planes often prefer to buy established Western brands and that is not going to change any time soon, unlike it is the case with large commercial aviation. You can read comparative study about this gap by following this link. Granted, it is from 2022. But still, numbers are not encouraging. Russians simply prefer traditionally: commercial planes, trains and automobiles. Considering Russia's much better than in the US public transportation system, including inter-city, especially trains, it is as much the issue of flying culture as it is of pure economics, but here, as well as in the surfing boards, the US lead is untouchable, and this manifestation of the wealth accumulation will remain on the US side. It is just the fact, and it will begin to change somewhat the more Russians sprawl to the suburbia and modern private housing (a well pronounced trend), but it will not change the relation and ratio much. 

P.S. You can read about private and small aviation in Russia (in Russian) by following this link.  

Friday, April 24, 2020

Some Interesting POV.

As you may have noticed in the latest discussion on this blog the issue of those poor Russians--there are some poor Russians, no doubt--continues to haunt many Western minds. Famous shyster from "geopolitics" George Fridman of formerly STRATFOR even came up today with this, I am sure prophetic, wink, wink, vision of Russia and Russians--a collection of platitudes, rumors from Russian liberda (no one of consequence will talk to him in Russia) and cliches which he titled no less than that: 
Mind you, this is the guy who described how the United States (and NATO) can defeat Russia conventionally in Ukraine in 2015. So, enjoy. Strangely, however, AFP came up today with by far more balanced and, most importantly, very significant distinction between Russians' and Westerners' lives. 
This is what I am constantly stressing--comparing standard of living between Russians and Westerners, especially Europeans, is a fool's errand. Consider this crucial fact--you see, Western media can sometimes operate with reality, when they want to--which is absolutely not accounted for when talking about Russia's REAL economy:
Nearly half of Russia's population is estimated to have a dacha, so when authorities began imposing lockdown measures on Moscow last month, thousands streamed out of the city.
Very many, I stress that, of those dachas are, well, how to put it politely, full blown houses with garden lots and can give a run for the money to many US suburban houses within $150,000-250,000 price range in some nice established neighborhoods. Recall this comparison recently. Russia's sub-urbanization was proceeding apace for decades now and vast growing dacha communities were to be found as early as 1970s even in such places as Petropavlovsk-Kamchatsky (to be more precise, Elizovo) or some cities in Siberia, not to speak of Moscow. Dachas are not only great supplemental food or even income when some of this food goes to local farmers' markets by the so called "dachniks" (people who own dacha) who decide to sell, but also great places to relax. In my first book I wrote:
But even today each Friday in Summer or early Autumn big Russian cities suffer from enormous traffic jams with millions of Russians driving, or taking a train to their dachas or village homes to not only tend to their gardens and garden beds, small agricultural additions to houses, which in the hard times of the 1990s inhuman “reforms” allowed many to survive. Many still escape the city for the calm and relaxation of pastoral living, going back to their village roots, from where the Russian nation sprouted. It is a totally normal picture to see some Ph.D. in electronics or a designer of crucial parts for aircraft to enthusiastically tend their cabbage, or potatoes with carrots on their country side plots next to often solidly built luxury houses which are still built on the ground from which, throughout centuries, nobody could uproot the Russian soul. (Chapter 5, page 124)
As one commenters to this article noted:
Western media always portrays Russians as very poor people. However, it seems that half of them have a second home in a country side? How is that for being poor?
Yes, this is the paradox and reality which even best Western alleged "scholars" could not perceive during the Cold War 1.0 and still cannot wrap their brains around this whole thing today. Here is how dacha (and their neighbors') of our relatives looks like in 80 kilometers (50 miles) from Moscow and those are pretty average, nice, but nothing overly special, except a large lot (they don't grow anything). 
So, the way wealth is spread in Russia, despite inevitable catastrophic stratification of 1990s during a nation-wide robbery, is rather different from the West even today. The process or dual-residency will continue in Russia and here is another wowser for many westerners--most Russians OWN their apartments (flats) and dachas, that means are not in debt on this valuable real estate. Russia's mortgage market is minuscule compared to cyclopic debt bubble of the American real estate and, you may have guessed it already, in US "economic science" this huge bubble is counted towards GDP. This is the fact which great "strategic mind" of George Fridman simply cannot grasp--it is difficult when one is brought up within Wall Street bubble and on cooked books.