As shown by the chart above, the Wall Street Journal reported this week that the United States of America is about to overtake Russia as the world’s #1 producer of oil and gas. Simultaneously, Russian “Prime Minister” Dima Medvedev penned a long tract in Vedemosti in which he admitted that Russia is descending into neo-Soviet economic stagnation. And the WSJ reported that Putin’s response to this nightmare is stunningly inappropriate, the exact opposite of what he should be doing: Instead of pursuing policies to encourage foreign investment, Putin is adopting measures to explicitly choke it off. And he’s embarking on massive new programs to vastly increase military spending while cutting the delivery of basic services to Russian citizens.
Russia is being decimated by the USA in its own bastion of strength, fossil fuels. Nothing could more powerfully express the total blindness and failure of Vladimir Putin as an economics manager. Russia has seen its economic growth rate spiral relentlessly downward, and now it stands on the precipice of a double-dip recession. Even Putin’s own PM admits that Putin’s policies are failing. And Putin’s response is neo-Soviet crackdown rather than innovation.
Russia is doomed.