Oh Dear, where will Gordon get the money from...

[ZH875]

From the BBC: (http://news.bbc.co.uk/1/hi/world/europe/7947824.stm)


Russia announces rearmament plan

Russian President Dmitry Medvedev has said Moscow will begin a comprehensive military rearmament from 2011.
Mr Medvedev said the primary task would be to "increase the combat readiness of [Russia's] forces, first of all our strategic nuclear forces".
Explaining the move, he cited concerns over Nato expansion near Russia's borders and regional conflicts. Last year, the Kremlin set out plans to increase spending on Russia's armed forces over the next two years. Russia will spend nearly $140bn (£94.5bn) on buying arms up until 2011.

We're Doomed Captain Mainwairing, we're Doomed....

[GOLF_BRAVO_ZULU]

For various good reasons, their $ will buy a lot more “bang” than our $. I suppose the famous Peace Dividend has been lost for ever.

[ORAC]

All talk, they haven't got the money.

The Russians built up a cash pile when oil was above $100 a barrel, they break even at about $60, now they're in real trouble. They've used up over half the reserves trying to stop the Rouble slipping.

If they build anything it will be the army/internal forces to prevent another revolution.

For a good background to their current situation read the posts at this site:

The Streetwise Professor. (http://streetwiseprofessor.com/)

e.g.:

Whither–or is it Wither–the Oligarchs? (http://streetwiseprofessor.com/?p=1562)

More on Strains in the Power Vertical (http://streetwiseprofessor.com/?p=1532)

Kudrin Channels SWP (http://streetwiseprofessor.com/?p=1528)

[sitigeltfel]

More to the point, where will Dmitry get the money? Russian spending plans are tied to an assumed oil price of $95.00 a barrel. Trading in Brent crude closed last night at $43.31.

[racedo]

Not only do they not have the money their Nationalistic aggro in pushing people like Shell / BP to accept massive writedowns in their investments mean that going forward any oil major getting involved will require a significant risk premium to assuage investors they won't lose their money.

Easy to see the rich pickings when Oil is $100 + but when you need the technology and expertise of western oil companies in the exploration and development field when oil is $40 a barrel then you will pay heavily.

[FantomZorbin]

Surely, Russia only has to close the gas taps and up goes the oil price ... as we have seen in recent years.

[racedo]

Fantom

That is true BUT LNG development has been very significant over the last 5 years with a clear aim of providing a separate supply.

Surge of cheap gas may put coalmines out of action - Times Online (http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article5913916.ece)

Interesting piece yesterday and once the supplies start filling up the security of supply may be a little better.

Giving the UK supply will be from Qatar then it has been pretty clear that a number of EU countries have already taken steps to ensure dependency on Russia can drop in the event of the Russians thinking they have the power to freeze Europe.

I do see that within 5 years the EU can tell Russia thanks but we don't need your Gas at that price. Lots of different things happening but they seem all part of the same jigsaw.

[AvEnthusiast]

What's going on? today Gordon Brown was talking about non-profileration and iran nuclear project and now russia trying to develop nuclear weapons. Are these people still willing to use nuclear weapons in this world?

[The Helpful Stacker]

No nation state is stupid enough to actually use nuclear weapons (at least I hope not), its just they are something you need in your toy box to be taken seriously on the world, at least that what countries with them think.

[Madbob]

Gordon won't be in office in 12-14 months from now so he won't have to find the money! He be sitting fat, dumb and happy with an ex-PM's pay off, ministerial pension and no doubt, an advance on royalties from a publisher in a deal on his memoirs...........

Picking up the tab will be down to us. Talk about a "hospital pass" from a former rugby player (that's how he lost the sight of one eye). Seems like it wasn't the only thing he lost sight of.....he seems to have lost sight of management of the economy, pensioners, the need for more prisons, not to mention the over-stretched and often needed armed forces.:{

Make no mistake it is us who will be having to find the money, not Gordon.

MB

[Guzlin Adnams]

What's Russian for quantative easing....:E

[dallas]

I'm not in the least surprised that Russia is looking to flex her muscles again - when the Cold War was effectively won by the US, the West had an opportunity to work with Russia, only we did it half-heartedly. Annexing former WARPAC countries and then using Russia's former allies to base missile defence shields hardly makes for a mood of mutual respect. Don't get me wrong - Russia isn't Snow White in all of this - but I think we've varied between nonchalance and aggression, avoiding opportunity, and we'll now reap what we sow.

[Double Zero]

Dallas,

Damn right we should be / have been a lot friendlier to Russia ( for instance, Afghnistan can get stuffed ! ) .

I don't think they're mad enough to start WW3, but being chums would be a good move from everyone's point of view.

On another tack, who the hell would buy G.Browns' memoirs ?!