Thursday, April 21, 2011

Vladdy O'Hooligan

“We see that everything is not so good for our friends in the States,” Putin told lawmakers Wednesday “Look at their trade balance, their debt, and budget. They turn on the printing press and flood the entire dollar zone — in other words, the whole world — with government bonds. There is no way we will act this way anytime soon. We don’t have the luxury of such hooliganism,” he said.

As much as I like the image of the US government as a bunch of drunken skinheads, rampaging through towns breaking windows and breaking heads while singing obscene songs, Vladdy is, as usual, full of it.

The BRICS (and how primitive Russia ever got included with real vibrant economies like Brazil, China, & India, I'll never understand) CLEARLY WANT US to run a big trade deficit. They are willing to put up with rising domestic inflation in their efforts to stop their currencies from appreciating and (perhaps) our trade deficit from falling.

And regarding the US debt, it's "flooding of the world" has raised the interest it must pay to an eye-popping 3.5%??????

Vladdy is right that Russia doesn't have the luxury of large scale Ruble denominated borrowing, in part because THEY DEFAULTED IN 1998!

I think Vladdy should stick with wrestling bears and snowmobiling with his boy-toy Medvedev.

UPDATE: In an unthinkable coincidence, it was pointed out to me that Paul Krugman has similar thoughts on Vladdy.

1 comment:

Kindred Winecoff said...

Yeah, I had you beat too:

Get on the ball, Angus!