The economics of intellectual capital

December 28, 2015

Let us be frank. Let us speak plainly. The facts are like this – the West waging a secret clandestine war to bankrupt Russia. Despite the Kremlin’s insistence Western economic sanctions aren’t making the slightest dent on their economy. In reality, it’s having a crippling effect on every conceivable aspect of trade and commerce.

It’s essentially a war of attrition that Russia cannot possibly win. As so many aspects of Russia’s economy is inextricably linked with the West.

In truth for Russia to remain economically, socially and technologically coherent, it needs to revivify many of it’s industries that it once mothballed as it was much cheaper and better to buy from the West.

These days Russia is too dependent on the West – most of it’s food produce comes from the West. At least 20 percent of it’s oil and gas industries rely on Western technologies. Even base line engineering core competencies which were once strategically directed to produce cars, planes, trains and trucks no longer exist in Russia any longer.

From my assessment, there are two main issues. The first is lost of confidence – specifically, the difficulty experienced by businesses to get money out Russia by any known or recognizable financial instruments as a consequence of economic sanctions imposed by the West – coupled to this low oil prices offer very little way out of this quagmire. It’s only a matter of time before Russia will go into the red of recession.

That is why the Russians have offered me prime land in the Ukraine. Men like me are highly sought after in Russia – that is only to be expected as frontier men are a very rare breed. They are the only category of men who can get a beleaguered country like Russia back on it’s feet again with duct tape, superglue and hard work.

I must say it is a very enticing offer.

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