🚀 go-pugleaf

Keynesian economics is an economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth. It was founded by John Maynard Keynes in the UK around the time of the 20th century’s Great Depression. Since Keynes, the theory has been substantially added to. 

In the US Keynesian economics has led to the rise of the military industrial economy and the more recent stimulus projects of the federal and state governments.

In Canada it has given rise to the medical services economy and the more recent action plan projects of the federal and provincial governments.

Russia is in the process of writing a new chapter in Keynesian economics. A number of years ago Russia borrowed $25 billion USD from China and bought out foreign oil company projects like those of BP in Russia. The loan has recently been paid and now there exists a state owned oil company something like Petro Can.

Petro Rus is now seeking a new loan of $25 billion USD from China. The funds are to be used to build a pipeline from the Russian oil fields to China. Russia wants to repay this loan with a pre-determined volume of oil that will be delivered to China through the pipeline. It seems the Chinese are interested.

Petro Rus says the oil is going to be converted into a stimulus project for the Russian economy, without raising taxes. The iron will come from Russian mines (jobs), the steel will come from Russian mills (jobs), the pipe will come from Russian plants (jobs) and the pipeline will be built by Russian labor (jobs). It will not be necessary to raise taxes to pay back the Chinese loan as it will be paid back over time with a specified volume of oil delivered to China.

JL – 25-02-2013