Corporate Stock Buybacks Using Borrowed Fiat USD: Parasitize The Economy Distorting Charts Into Bubbles

Yes, due to the malicious, toady SEC “business judgement” rule, CEOs can take trillions of dollars away from productive pursuits without even having to ask the companies’ owners—the shareholders—for approval.

What could competent management have done with this treasure trove of shareholder money which came originally from consumer purchases?

They could have invested more in research and development, in productive plant and equipment, in raising worker pay (and thereby consumer demand), in shoring up shaky pension fund reserves, or increasing dividends to shareholders.

Middle Class Tears.

The leading expert on this subject—economics professor William Lazonick of the University of Massachusetts—wrote a widely read article in 2013 in the Harvard Business Review titled “Profits Without Prosperity” documenting the intricate ways CEOs use buybacks to escalate their pay up to  300 to 500 times (averaging over $10,000 an hour plus lavish benefits) the average pay of their workers. This compared to only 30 times the average pay gap in 1978. This has led to increasing inequality and stagnant middle class wages.

To make matters worse, companies with excessive stock buybacks experience a declining market value.

A study by Professor Robert Ayres and Executive Fellow Michael Olenick at INSEAD (September 2017) provided data about IBM, which since 2005 has spent $125 billion on buybacks while laying off large numbers of workers and investing only $69.9 billion in R&D. IBM is widely viewed as a declining company that has lost out to more nimble competitors in Silicon Valley.

The authors also cite General Electric, which in the same period spent $114.6 billion on its own stock only to see its stock price steadily decline in a bull market. In a review of 64 companies, including major retailers such as JC Penny and Macy’s, these firms spent more dollars in stock buybacks “than their businesses are currently worth in market value”!

  1. General Electric: The Worst Bailout in the World aka; Indebting America To High Taxation

On the other hand, Ayes and Olenick analyzed 269 companies that “repurchased stock valued at 2 percent or less of their current market value (including Facebook, Xcel Energy, Berkshire Hathaway and Amazon). They were strong market performers.

Banking Cabal’s Carnival Tent ~ Pump The Nation State Dry ~ When Done Pilfering, Pull Up The Stakes And Move Onto The Next Nation State.

The scholars concluded that “Buybacks are a way of disinvesting – we call it ‘committing corporate suicide’—in a way that rewards the “activists” (e.g. Hedge Funds) and executives, but hurts employees and pensioners.”

Presently, hordes of corporate lobbyists are descending on Washington to demand deregulation and tax cuts. Why, you ask them? In order to conserve corporate money for investing in economic growth, they assert. Really?! Why, then, are they turning around and wasting far more money on stock buybacks, which produce no tangible value? The answer is clear: uncontrolled executive greed!

  1. Rothschild’s Carnival Tents: Are They Set Up In Your Country Too?
  2. Silver & Gold Are Physical Not Fiat: Central Bankers Would Rather Reset Into Another Fiat Contrivance Than Face Justice!


Gee, Things Are Beginning To Look Up!

By now you may be asking, why don’t the corporate bosses simply give more dividends to shareholders instead of buybacks, since a steady high dividend yield usually protects the price of the shares? Because these executives have far more of their compensation package in manipulated stock options and incentive payments than they own in stock.

Walmart in recent years has bought back over $50 billion of its shares – a move benefitting the Walton family’s wealth – while saying it could not afford to increase the meagre pay for over one million of their workers in the US. Last year the company bought back $8.3 billion of their stock which could have given their hard-pressed employees, many of whom are on welfare, a several thousand dollar raise.

The corporate giants are also demanding that Congress allow the repatriation of about $2.5 trillion stashed abroad without paying more than 5% tax. They say the money would be used to grow the economy and create jobs.

Last time CEOs promised this result in 2004, Congress approved, and then was double-crossed. The companies spent the bulk on stock buybacks, their own pay raises and some dividend increases.

There are more shenanigans. With low interest rates that are deductible, companies actually borrow money to finance their stock buybacks.

If the stock market tanks, these companies will have a self-created debt load to handle. A former Citigroup executive, Richard Parsons, has expressed worry about a “massively manipulated” stock market which “scares the crap” out of him.

  1. To Hell With The Rothschild Financial Collapse: Nullify The Debt Like Iceland And Bring Them To Justice!

Banks that pay you near zero interest on your savings announced on June 28, 2017 the biggest single buyback in history – a $92.8 billion extraction.

Drug companies who say their sky-high drug prices are needed to fund R&D. But between 2006 and 2017, 18 drug company CEOs spent a combined staggering $516 billion on buybacks and dividends – more than their inflated claims of spending for R&D.

That was when SEC Chairman John Shad, a former Wall Street CEO, redefined unlawful ‘stock manipulation’ to exclude stock buybacks.

Mr. Olenick says “When managers can’t create value in the business other than buying their own stock, it seems like it’s time for a management change.”

Who’s going to do that? Shareholders stripped of inside power to control the company they own? No way. It will take Congressional hearings, a robust media focus, and the political clout of large pension and mutual funds to get the reforms under way.

  1. Revolt Of The Debt Slaves: When The Herd Turns

When I asked Robert Monks, an author and longtime expert on corporate governance, about his reaction to CEOs heavy with stock buybacks, he replied that the management was either unimaginative, incompetent or avaricious – or all of these.

Essentially burning trillions of dollars for the hyper enrichment of a handful of radical corporate state supremacists wasn’t what classical capitalism was supposed to be about.


Its All About Keynesianism

US Treasury Secretary Henry Morgenthau Jr. and British pederast John Maynard Keynes conferring during international monetary conference to plan for postwar reconstruction.

Related News:

  1. Keynesianism: Deep State’s Fiat Economics
  2. The Core Imperative Of The Deep State: Expand Control
  3. America Will Call For Ending The Keynesian Fiat Dollar In 2017
  4. When Keynesian Counterfeit Dollar Crashes By At Least 50 Percent In America
  5. Banking Cartel’s 1913 Keynesianism’s Paper Derivative Ponzi Scheme Imploding!
  6. A Crisis Unlike Anything We Have Seen In Human History: Keynesian Printed Fiat Dollar Beyond Existing Goods & Services


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Millennials Have Never Been More In Debt, And It Is Creating A Major Risk For The Economy

There is a seemingly unlimited number of disconnects in financial markets these days, not the least of which is the shocking divergence in recent years between the ever plunging unemployment rate in the United States and stubbornly rising delinquencies on consumer debt. In fact, according to a note published earlier today by UBS strategist Matthew Mish, that divergence continues to soar to all time highs with each passing month…but why?

As it turns out, the answer to the enigma above may just have something to do with the fact that, despite declining unemployment levels, wage growth remains completely non-existent at a time when consumer leverage, particularly in the form of student loans and auto debt extended to the most financially vulnerable cross sections of the American public, is soaring.  Let’s explore the data from UBS…

Per the charts below, when you break out rising consumer delinquencies into their individual buckets the catalyst for the trend above suddenly becomes more clear.  While delinquency rates on mortgages, HELOCs and credit cards are improving, or at least not deteriorating rapidly, delinquency rates on student loans and auto loans are a completely different story.

90-day delinquency rates on consumer loans are up 20bp to 7.61% Y/Y, led by deterioration in auto loans.Trends in recent loan vintages suggest a negative outlook on balance, but incremental deterioration is shifting from autos to credit cards and student loans. This is worrying as it indicates broader weakness in non-prime consumers.

For one, auto and credit card loan default rates bifurcated by credit quality (e.g., prime, subprime) continue to show sequential deterioration on average. This worsening performance in part can be explained by weaker underwriting standards and risk layering: i.e., higher loan-to-value ratios and longer loan terms. For example, negative equity was a contributing factor explaining home mortgage defaults, and is now one factor influencing rising auto loan delinquencies. Further, multiple interest rate hikes by the Federal Reserve have increased average interest rates in particular on new car loans from finance companies (from a low of 4.4% to 5.6% on 60m loans)) and for rates on credit card balances (from a low of 12.7% to 14.9%, Figure 5).

And who took on all those $40,000, 0%, 80-month loans all so they could drive around in a brand new BMW they couldn’t afford?  Well, if you guessed millennials in the lowest quintile of wages earners in the country then you’re absolutely right!  As Mish points out in Figure 7 below, the median debt-to-asset ratio for Americans under the age of 35 has surged over the past couple of decades from ~40% to a staggering 100%.

Second, aggregate consumer credit metrics mask substantial inequality across consumers. Leverage metrics, e.g., debt to assets, are at or near record levels for lower income and millennials, and the literature draws a clear linkage between lower savings and higher defaults. While interest coverage has improved, it is overstating consumer health. We do not believe these metrics are adjusting for inequality in individual income/ wealth, a decline in the US homeownership rate, and student loans in deferral status.

First we calculated median leverage levels based on debt to assets across income and age cohorts; for lower incomes (0-20, 20 – 40th percentile by income) and younger ages (less than 35, 35-44) the results suggest ratios are at or near record levels (Figures 6, 7). Median leverage measured by debt to incomes (DTI) are also at record levels for lower income households (0 – 40th %ile), while millennial (under 35) debt-to-income ratios are in-line with 2007 levels. Strikingly, DTI ratios for 3544yr olds are materially lower even though prior leverage metrics are near record levels, likely reflecting the reality that middle age households have deleveraged via mortgage debt defaults but now currently have low asset bases (Figures 8, 9).

So what does this all mean for future credit growth?  Apparently, absolutely nothing as UBS figures that banks will just continue with their reckless lending practices until something breaks.

Second, the supply side of credit to consumers is supported materially by federal credit support, primarily mortgage and student loans. We estimate roughly $825bn in net loan creation this cycle in mortgage and consumer-backed loans (2010 – 2017); however, the share of non-government backed loans has actually been negative to the tune of $677bn (vs. government backed loans at $1.5tn, Figure 21). The implication is consumer lending to a large extent is essentially on autopilot, with changes in loan standards likely to be inelastic and lagging severely any rise in delinquency rates.

Third, the supply of credit in consumer loans less impacted by government credit support (e.g., auto, credit card and personal loans) remains relatively accommodative. The rise in delinquency rates has triggered some tightening in underwriting standards (e.g., autos, credit cards), primarily from more conservative lenders including banks. But the magnitude of tightening has been modest (Figure 22) and competition has attracted new lenders to largely fill the void – e.g., in autos finance companies and credit unions13. And any stabilization in delinquency trends should support stable credit supply trends.

Conclusion, lenders will continue to bury their heads in the sand and ride the ponzi wave in student and auto loans until it once again blows up in their faces.

Copyright Information: This article was reprinted with permission from Please contact the author directly for republishing information.

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Spain would lose a fifth of economy if Catalonia breaks away

Catalonia is Spain’s most productive region and generates about 20 percent of the country’s GDP and roughly a third of its exports. The region contributes 21 percent of the country’s total taxes, which is reportedly more than it gets back from Madrid.

Catalans, who support independence, believe the region could turn its budget into a surplus after stopping transfers to the federal government.

Moreover, Catalonia attracts a record amount of investment, as nearly a third of all foreign corporations and production facilities represented in Spain are based in Barcelona or its outskirts.

However, it’s not all good news for Catalonia.

Brussels has warned the Catalonian government that if the region becomes independent, it won’t be granted EU membership. That’s because all the current members of the bloc, including Spain, would have to support the move.

“We currently see no practical way for Catalonia to become an independent country within the EU, as most supporters of independence want,” economists at Berenberg Bank wrote in a research note, seen by CNN Money.

That means that the region may enjoy the privileges of free trade inside the EU only if it is part of the bloc, or as part of Spain.

Otherwise, the cost of exporting goods from Catalonia, mainly fruit, and vegetables, to EU members and other countries would significantly rise.

“It would join the small list of countries that are not World Trade Organization members, meaning it would face significant trade barriers,” said Stephen Brown, an analyst at Capital Economics, as quoted by the media.

Unprofitable exports may lead to shutdowns and rising unemployment with the GDP of a new state shrinking by up to 30 percent. Moreover, the region will have to pay off a fifth of Spain’s sovereign debt, which reportedly amounts nearly €200 billion.

“As with Brexit, we believe that any Catalexit would plunge the region into a long period of uncertainty and would most probably be negative for the private sector,” said ING economist Geoffrey Minne.

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Does buying in bulk save money, or is it a false economy?

Frugal green living is a popular topic on TreeHugger, and often one of the suggestions is to buy in bulk. In a recent post, 13 items you should always buy in bulk, Katherine extolled the virtues of buying in bulk at stores like Costco.

I have never been to a Costco. My dad did; I think about 25 years ago he went to the first one to open up here and bought 50 bars of soap, and said “I’ll never have to buy another bar of soap in my entire life!” He was right; I think we threw some out when we cleaned out my mom’s apartment last month.

Costco TorontoGoogle Earth; our nearest Costco in the upper left corner./CC BY 2.0

I could go to Costco; there is one that’s within a half hour drive of my house, the box on the upper left, and we have a car. But I don’t for a number of reasons.

The first and most obvious reason is that

the whole system is designed for and biased toward people who live in suburbs.

They are big boxes surrounded by a sea of parking and if you don’t have a car you are really out of luck. But out there, the bigger the SUV, the luckier you are, you can fill it with bargains.

inside a big boxZehrs in Barrie, Ontario/ Lloyd Alter/CC BY 2.0

The economics of suburbia are based on a giant subsidy to those who drive.

Author Edward Humes estimates that if gas taxes covered the true costs of driving, then gas would cost over ten dollars a gallon. This weekend I was in a big supermarket in Barrie, Ontario, the city where my dad had his cottage and went to the Costco, and was just in shock, I had never been in such a big store ever in my life. It seemed bigger than our airport. But when land is cheap, it’s easy to throw up a box and fill it with stuff, have high volume and high turnover so that everyone can drive there and have lots of choice and low prices.

They are biased toward people who have big houses because it takes space to store all this stuff.

But that’s what you have in the suburbs. People in apartments don’t have room for 36 rolls of toilet paper and don’t want to carry it up the stairs.

They are biased towards people with families and penalize singles and seniors.

If you don’t need 36 rolls of toilet paper because you live alone and only need 6, you will find it costs almost the same amount of money. A few weeks ago my wife asked me to pick up some corn starch for our cabin (where everything has to come across by boat, there are just two of us, and we are only here for 3 months) and a tiny 8 ounce container (all that we needed) was $2.99. A 16 ounce container was $3.29. That’s just not fair to people who don’t want or need that much.

It’s grossly unfair to poor people.

They often don’t have cars, and they often live day to day so they can’t plan on buying a year’s worth of toilet paper. So they go to the bodega and pay ridiculous prices. Sure, it costs more to run a small store downtown than a big box, but the difference in price per unit that people pay shopping for small packages in the bodega compared to the big package in the big box is shocking.costco soapCostco soap/ Lloyd Alter/CC BY 2.0

A lot of it is wasted, a lot of it is second rate, and doesn’t save you any money at all.

We have this jug of dishwashing detergent from Costco that my daughter bought last year and it smells so toxic we won’t use it and I am taking it to the dump. This isn’t saving money. Katherine made suggestions for buying in bulk but over time, some of them deteriorate; beans get stale, pasta gets bugs, and olive oil is better fresh.

If you have more you tend to use more.

If you have 24 beers in the fridge you will drink more beer. Professor Brian Wansink has demonstrated that if you have more ice cream in the freezer you will eat more ice cream; he did a study of warehouse club shoppers which showed that “families that have more food in the house eat more food.“ If you eat and drink all that and you will use more toilet paper. Of course you also have to pay for the car and the bigger fridge and the house, so it may well be, in the long run, a false economy.

In the end, the entire big box economy is a big honking subsidy to people with cars living in the suburbs by the poor, the singles, the seniors, the urban, the cyclists.

It only works because of the highways and the parking lots and the infrastructure paid for by everyone (road taxes do not cover the cost of the roads) and enjoyed by the drivers. The companies charge twice as much for small packages as big ones because they can; the purchasers without cars and access to the big boxes, the ability to drive between the Walmart and the Costco and the Price Club, don’t have a choice.Small business sign© Support local businessBy choosing to live in the city, to bike everywhere, to shop at the local stores, to downsize my accommodations, I have no choice but to pay more for everything that I buy. But I do get some value; the money I spend stays much closer to home, employs a lot more people, and keeps our local main street vibrant. It’s why I go on about shopping local every fall.

The big box economy exists because of the car.

If you believe that we have to reduce our dependence on the car, then really, there are some fundamental choices we have to make: to live at higher densities in smaller spaces and to use cars a lot less. There is not a lot of room for buying in bulk in that world.

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China to buy over $1tn worth of planes by 2036 as economy expands – Boeing

Boeing estimates China will buy 7,240 aircraft by 2036, 6.3 percent higher than the US company’s previous prediction of 6,810 planes last year.

“China’s continuous economic growth, significant investment in infrastructure, growing middle-class and evolving airline business models support this long-term outlook,” said Randy Tinseth, Boeing Commercial Airplanes vice president of marketing.

“China’s fleet size is expected to grow at a pace well above the world average, and almost 20 percent of global new airplane demand will be from airlines based in China,” he added.

China accounts for almost 11 percent of Boeing’s revenue, according to Bloomberg.

About 75 percent of the new aircraft will be single-aisle, as demand for travel within China and throughout Asia grows.

Boeing and its rival Airbus are fighting to increase their share of the fastest-growing market in the world.

According to the International Air Transport Association (IATA), China will overtake the United States as the world’s largest aviation market by passengers by 2024.

Both firms have made serious profits in China, as local airlines expanded their fleets aggressively.

Separately, China is developing its own civil aircraft. China’s twin-engine Comac C919, which can carry up to 158 passengers and has a range of 4,075km. A longer-range version can fly up to 5,555km. The plane had its maiden flight in Shanghai this May. Comac says it has more than 600 orders from Chinese carriers.

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8 Things To Do NOW Before The Economy Crashes Again

[8/26/17/ URBAN SURVIVAL]  The stock market has seen nearly perpetual success over the last eight years. The country is also carrying 20 trillion dollars in debt that will expand exponentially in the coming years. Worse than that, many Americans are so woefully unprepared for an economic downturn that if we see something like a derivatives bubble burst, most Americans will be thrust into a position of serious desperation.

There are eight very important things you must consider today in preparation for economic woes tomorrow. It is not too late to take advantage of the time before the next bubble bursts. Some of these recommendations are changes that will also improve your quality of life! Either way, you will be more prepared for the worst-case scenario.

1. Cache Some Cash

It’s truly astounding how little Americans are saving. We are at a point where nearly half of the nation could not survive 3 months without a steady paycheck. This puts many Americans in grave danger of becoming desperate in times of economic downturn. If we were to see a serious economic crash that rivaled 1929 or even 2008, most Americans would be out of options very quickly.

To this problem, I say cache some cash. We know that banks will always operate within their best interests. In the very best conditions, you can only take 300 dollars out of an ATM per day. Whether you realize it or not, that is a serious issue.

Not only do you need to save more money, you need to save more of it in cash. Of course, the next statement must be about how that cash is kept safe. Hide your money in plain sight. Ask your Grandmother where she used to hide cash. Here are a few suggestions. Also search the keyword “Diversion Safe” for some very interesting ideas for hiding your cash.

These caches could also extend out of your home into more traditional caches buried or hidden away from the home. This will keep your cash safe if you are robbed or invaded by looters.

2. Food Storage

Food has never been more affordable and readily available. Take advantage of these sales and incredibly low prices now while they exist. Do not disregard the importance of having a very comfortable level of food. This should be enough that you can get through at least a month of hardship. I’m not saying you must eat like a king, but you should have at least three square meals for one full month.

Invest in freeze dried foods with very long shelf lives. These can be purchased all over the net today. The freeze-dried foods will offer you the most efficient storage capabilities for full entrees including meats. You won’t need a freezer full of meat if you have freeze dried food options. Make it easy and invest in dinner entrees first.

3. Diversify Income

You won’t hear a lot about this radical idea but it is something I am very passionate about. I believe we are quickly moving into a world that will require each of us to live off multiple income streams. When the next economic bubble bursts, it will take jobs with it. Could you survive without your job? The scary thing is the harder you worked to get a great job that pays well, the harder it will be to replace that income.

If you want to fool proof your income, it should be coming to you in many ways. Investigate the internet and how it can make money for you. There are so many ways to generate income like freelancing, blogging, YouTube, flipping products around your house, writing eBooks, or even consulting.

I recommend picking on a few of these options and learning about them ASAP. See what makes sense for you and get involved.

4. Precious Metals

When you talk about an economy collapsing or a multiple bubbles bursting, people will quickly turn to things that carry value in times of economic stress. In the foreseeable future, gold and silver will still hold their value. In fact, as the dollar struggles the price of precious metals always goes up. It’s just how these things work.

Begin gathering junk silver and bullion across the web. Build a little precious metal spending into your monthly budget today to have a backdoor for tomorrow.

5. Guns, Ammo, and Proficiency

If you look back on the Great Depression, you find desperation like never before in American history. Skyrocketing suicide, failing Fathers leaving home, and women left alone to face the cold world with hungry children. It was a terrifying time.

When dealing with the desperate, you must mitigate their spontaneity. At any time, a desperate person can become a threat. I mean the type that will break your door in to take what’s yours.

Real power comes from the barrel of a gun. – Mao Tse-tung

To protect yourself and your family, there is no substitute for the firearm. If you do not have a firearm today, you should get your hands on one ASAP. Beyond that, you should buy plenty of ammo for it along with a kit to clean it. Also, one part many people leave out: you must practice and become proficient with your firearms.

6. Grow Food

For all we know about the food industry, about pesticides and the frailty of our food systems, it’s hard to believe more Americans aren’t already growing their own food. If you are not part of the raised bed community who is planting each year and harvesting food for your family, I say start now!

Whether we are affected by the scarcity of food in certain areas or hyperinflation that makes food much more expensive, you will need another option to feed your loved ones and yourself. There are tons of options to grow food these days. If you don’t have the dirt, invest in grow lights and grow indoors. If you have no other options, join a CSA with a local farm and get your food from other more local sources.

7. Meet Neighbors

Through much of this article, we have mentioned the desperate. This is the group we worry about. The desperate will kill and hurt to get the things they need in dark times. Start meeting your neighbors and building cohesion in the community today! Say hi to everyone and start talking to the people in your neighborhood.

Plan gatherings and create a small family inside your neighborhood. When things get ugly, you will have less desperate people to fight off and more people who look at you as a person. As people get comfortable, you can begin telling them about the economy and the power of preparedness.

8. Evaluate Your 401K

I know we opened the article about saving money and the woefully unprepared American population. Many Americans laugh at the idea of saving money because of the debts they carry. The best way to save money is to make more money than you need! Simple idea, right? Well, if you cannot magically increase your salary 20%, use some money from your 401K to eliminate debt. Don’t build it up again!

You may also consider buying land or something else of value with that 401K money. If nothing else, you should certainly diversify your savings and investments. The less debt you carry and the smaller your monthly budget is, the better off you will be when troubled times come.

There simply cannot be perpetual growth. This ship will correct and when it does, people will lose money, jobs, and hope. Be prepared to stand up for what’s yours and to help those around you.

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Russia cutting dependence on US dollar – economy minister

“There is a big trend toward the de-dollarization of the Russian economy. The central bank has taken some very important steps against loans in foreign currencies,” the minister said on Wednesday.

Data from the Central Bank of Russia shows 60 percent of Russia’s external debt in August is in US dollars, the lowest since 2014.

Experts say foreign sanctions and central bank policy are making loans in rubles more attractive than in dollars. Rates on ruble deposits are also more attractive than foreign currencies.

In June, Russia reduced its investment in US Treasuries by $5.8 billion, dropping to 14th place among the largest holders of the US debt with $101.9 billion.

However, while loans in rubles are becoming more popular, it’s too soon to say if the Russian economy is ready to live without dollars.

“You need to look at the share of foreign currency deposits. In retail, there is no big decline, the share of foreign currency deposits remains at 23 percent, it is quite stable over the past year,” said Alfa-Bank chief economist Natalia Orlova in an interview with RIA Novosti.

Last week, Deputy Foreign Minister Sergey Ryabkov said the Russian government would intensify efforts to cut the country’s dependence on US payment systems and the dollar as a settling currency.

Russian President Vladimir Putin has repeatedly urged the economy and finance ministries to cut dollar dependence in the Russian economy as relations between Moscow and Washington have soured.

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Economic Minister says major ‘de-dollarization’ trend seen in Russian economy


Russian Minister of Economic Development Maxim Oreshkin said Wednesday that Russia’s national currency, the ruble, should be supported because a “big trend toward the de-dollarization” of the country’s economy is growing at a steady pace.

“There is a big trend toward the de-dollarization of the Russian economy. The Central Bank made some very important steps so that fewer foreign currency loans were issued,” Oreshkin said.

He added, speaking at a session on the development of transport infrastructure in Northwest Russia, that the increased role of the ruble “is such a trend that should be fully supported.”

“And we should move away from, among others, foreign currency loans. Because we see what foreign exchange risks can lead to,” the minister stressed.

The talks about the reduction of Russia’s dependence on US payment systems have intensified after US President Trump signed a new round of sanctions on Moscow.

Valery Vasiliev, the deputy chairman of the Russian Federation Council’s Committee on Economic Policy, said that the use of the US dollar in transactions should be reduced gradually so that the Russian economy would not be harmed while recovering from the outcomes of the crisis.

Russian Deputy Foreign Minister Sergey Ryabkov said prior to that the cutting dependence on US payment systems has “become a necessity,” adding that Moscow plans to intensify the work on the issue.

In early July, Russian President Vladimir Putin and China’s leader Xi Jinping agreed to continue consultations on a wider use of national currencies in mutual payments and investments. Negotiations on the use of national currencies in bilateral trade have also been discussed with India, Iran, Turkey.

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Smoking is bad for your health, great for the economy! – think tank

But before you take a patriotic puff, take a look where the money is made. Besides clawing in revenues from the high tax on tobacco, the state also saves a bundle on unpaid benefits, treatment, and pensions, thanks to the high mortality rate among smokers. Cough.

The IEA claims that although cancer treatment, house fires, and cleaning up cigarette butts on the street cost the UK economy up to £4.6 billion per year, the habit brings in more than three times that figure every year.

Overall, £24 billion is brought in through the so-called “sin tax.

The IEA, a champion of free market economics, used its somewhat morbid calculation to attack politicians who criticize smokers, as well as those who drink a lot and overeat to the point of obesity.

Taken together, Britain’s public finances would be £22.8 billion worse off if there were no drinking, smoking or obesity,” the report said.

Christopher Snowdon, head of lifestyle economics at the IEA, said it is wrong to say smokers and drinkers are “a burden” on Britain.

This is one reason why we have seen such aggressive hikes in taxes on alcohol, smoking and very soon, a tax on sugar. But the justification for these taxes is based on an illusion.

Snowdon said the findings show those who smoke, drink and are obese provide “net benefit” to public finances and warned that “vilifying them is futile in the quest to make savings for the NHS [National Health Service].

A careful consideration of the evidence shows that the popular belief that costs will fall if people live healthier and for longer is false.

While it’s good that we now have longer life expectancies, policymakers must now address how we tackle the financial consequences of the ageing population rather than pointing the finger elsewhere,” Snowdon said.

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