STEVE PIECZENIK TALKS

Putin Goes to Beijing with Hat in Hand Begging for Money from Chinese President Xi
What a sad sight!
For some time now, I have warned my Russian friends that their economy is not doing well. Now what I had told them is a serious understatement. Putin went to Beijing  asking for hundreds of billions of dollars for oil/gas that was presumably sent to China from the eastern parts of Russia. President Xi, no negotiating slouch, waited and allowed Putin to puff up his bravado before Xi politely explained that the Chinese were not really interested in funding Putin’s oil or his imaginary gas pipeline that he and his corrupt oligarchs had wanted to build between Russia and China.

I am not writing to humiliate Putin or the Russians. Yet Russia is in serious financial trouble because of mismanagement, political corruption and the decreased price of oil. For those of you who think this Obama administration, including its civilian/military IC, had not been effective in their economic sanctions- time to re-think your assessment. I have been involved in several economic embargoes but this one and the one that was placed on Iran worked well, despite the hysterical outcries from American politicians who have never been involved in nation-state sanctions or embargoes.

I caution the Russian intelligentsia to re-examine their approach to a failing economy that will not rebound even if the price of oil rises back to certain untenable levels—around $90 per barrel. Its doubtful that this will happen any time soon. The world markets are flooded with surplus oil and Chinese impending economic recession will not facilitate a healthful rebound in Russia’s economy.

Now we have a scenario where the beggar, Russia, is asking the once rich ersatz partner, China, for money that China cannot distribute to any outside nation. China is busy trying to correct it’s own failing economy by eliminating 300,000 military personnel to streamline military costs. To make matters worse, China is buying its oil on the spot market from Russia’s former colonies – Central Asia—where the oil prices are significantly lower than what Russia can offer.

I ask the Russian people to re-evaluate their failing economy and decide what they, collectively, want to do about it. Just wishing that Putin and his corrupt oligarchs, former KGB operatives without business experience, will conjure up a quick fix is foolish. May I remind many of us about Russia’s tendency to act like Goncharov’s Oblomov –daydreaming in bed. Russia has some of the most talented young economists in the world. I think it’s time for them to come to the forefront and start to manage this abysmal economy.

Russia: suffering is appropriate when you were besieged in Stalingrad. Yet in peace times, suffering is not a virtue but a sin committed by those who fail to do anything constructive for the Mother Country.

Vsoyo Haroshovo!
All the best!