Economy 52,886 Posted August 10, 2015 Share Posted August 10, 2015 https://www.stratfor.com/image/russia-economic-woes-trickle-down# Russia as part of economic stimulus has required regional Governments to raise salaries by 10% and to increase housing subsidies. However the Federal Government has not participated in the funding leaving regional Governments to take on all the financial burden Although the Countries National debt is still at a reasonable level despite rising deficits since the oil price crash... Lower Levels of Government are seeing their debt grow at an out of control rate. The same phenomenon is also seen in Canada in which the Federal Government has a very low debt of 30% of GDP (over 100% in most developed Nations) making the Nations finances appear very healthy, but most Provinces in Canada hold a very large debt burden Link to post Share on other sites More sharing options...
Luc 4,776 Posted August 10, 2015 Share Posted August 10, 2015 Russia is a financial mess. Participating in the Ukrainian war was a very, very bad idea. Link to post Share on other sites More sharing options...
Economy 52,886 Posted August 10, 2015 Author Share Posted August 10, 2015 Russia is a financial mess. Participating in the Ukrainian war was a very, very bad idea.the regional governments which are most in trouble arent the ones paying for military tho. Also low oil proces must affect them more than the war id assume We have the same problem here in Canada actually. Federal Government has a very low debt of 30% of GDP and the budget is almost balanced again... However some Provinces and Munincipalities are in very deep debt which in reality make Canadas over-all financial situation not as rosy as it seems. But Provincial debt doesnt make international news so investors assume were safe and we get very low rates. 1.5% interest on 10 year bonds right now Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted August 10, 2015 Share Posted August 10, 2015 I think Canada with be ok tho. They can adapt to the changing global economy. The U.S. Is getting stronger so that help trade. I think diversification from oil revenue is the key. Canada has an educated work force and great manufacturing potential. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,886 Posted August 10, 2015 Author Share Posted August 10, 2015 I think Canada with be ok tho. They can adapt to the changing global economy. The U.S. Is getting stronger so that help trade. I think diversification from oil revenue is the key. Canada has an educated work force and great manufacturing potential. Well i agree... Though the energy sector has grown faster than any other sector in the past 10 years, its still smaller than the manufacturing sector even though that sector has struggled for years (energy = 10% of GDP Manufacturing = 12% of GDP) the weaker currency and improving United States will help juice manufacturing and non-energy exports Some parts of Canada particularly Toronto have a vibrant rapid growing Corporate sector with many office jobs being filled. Additionally in BC they have a booming high tech sector I think its important to remember Canadas recent slow down cannot be blamed purely on oil... High Consumer debt and an overbuilt housing market are taking their toll on further grow now too on the domestic economy But i think oil producing Provinces especially Alberta have to face facts... If low oil prices (say below $70/barrel) persist for up to 5 years as some suggest, they will have to go through some painful transitions. My favourtie uncle in Alberta whos a real-estate agent has already seen a huge drop on his commission income Link to post Share on other sites More sharing options...
HANZ 4,380 Posted August 11, 2015 Share Posted August 11, 2015 I'm glad My Favs = Lady Gaga, Janet Jackson, Ricky Martin, AKB48 Link to post Share on other sites More sharing options...
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