Russia: The New Resource Giant?

russia oil gold resources giant

There are two facts about Russia you might not know, one: that it is the biggest oil producer in the world, and second, that it holds the most Gold in the world. Quite substantial isn’t it?

And all of it belongs to Putin, not the markets, not the people, but one man, one ruler, Vladimir Putin. You see, Putin loves nationalism, he did it with natural gas, he did it with petroleum, and now he does it with Gold, not to mention that almost all news sources in form of television and newspapers are owned or controlled by Kremlin.

Not a far cry from the Soviet Union

Okay, if Russia’s so powerful, so rich and abundant in black gold the world wants, why don’t we see it becoming richer? Why don’t we see the Russian Hollywood? The new Russian Apple or Microsoft? Why don’t we hear of the great scientific advancements and technological leaps from Moscow or Saint Petersburg?

In fact, why do we see most Russians living in slums, riding junk instead of cars, its population declining, its rates of violence and drug abuse increasing? See the first paragraph for the answer.

As I described before, a centralized body of Government, and you can’t go more centralized than the pseudo-dictatorship of Putin, yields nothing but increased misery and repression.

It is because Putin owns and controls all that gold and oil, all that gas and resources that Russia doesn’t see the benefits of it. It is because of his iron fist, grossly egotistical system of government that Russia is a corrupt mess, a kleptocracy. It is because of an absolutely rotten, corrupt government that investments are few and far between. No one trusts Russia, no one trusts Putin. We can fear Russia. We can speculate about it and its resources, but we won’t trust it.

Putin has stated many times that he wants to restore Russia to its earlier, Soviet-era glory, that he wants to erase the memories of Yeltsin, and his idea is to buy as much gold as possible, nationalize as many resources as possible and then somehow control other countries, other people and businesses through those resources.

Putin, you’ve got it all wrong. It’s the importer, the buyer that controls and demands, not the other way around. I know it’s counterintuitive, but look at arch-nemesis! Do you see Saudi Arabia dictating American policy because it’s its the biggest oil supplier? I certainly don’t.

So what does the future yield for Russia’s favorite judo black belt? Well, it all depends on the amount of sanity and common sense left in Putin’s brain. How far he’s going to go to “assert” Russia’s resource dominance?