Off topic but relevant to France breaking it’s commitment to Russia for the Mistral Ships:
India scraps it’s largest defense deal in history (to France) worth over $20 Billion and replaces it with a deal worth about a quarter of the original contract ($4-5 Billion). One of the reasons given by Modi administration spokesmen was risk mitigation as a result of France defaulting on the Mistral deal: India wasn’t willing to risk $20-$30 Billion on the risk that France may not deliver due potential future geopolitical changes, however, they could risk $4 Billion.
Rafale’s arrogant attitude during the negotiations was: “we’re going to need to double the price we agreed to in the RFP – take it or leave it”, the Indians called their arrogant bluff: “How about we cut the contract to a quarter it’s original value, now you can take it or leave it.”
“Ouch!” that stupid decision just cost the EU-poodles in France almost $20 Billion dollars in lost sales: $16 Billion loss from Indian Deal, $2 Billion loss from Russian Mistral Deal and an additional $2 Billion loss in penalties. = 16+2+2 = $20 Billion.
ROFL!!!!!!! LOL!!!! French arrogance (Rafale and India) and simultaneous craven compliance (Mistral and Russia) has a very steep price.
On his trip to France, Prime Minister Modi decided to “thank” the French for their arrogance (they tried to double the price of the Rafale deal – as if they’re the only game in town) by scrapping the deal for 126 Rafale jets and throwing-in a consolation price of only 36 jets.
The real intent of the original deal was to acquire French refinements in French aeronautic engineering and technology transfer, this smaller deal can achieve the same thing without risking a huge amount of money. India already has very good relations with Russia’s military contractors and having been building their gen. 4+ Sukhoi-30 MKI from raw materials in India for quite some time. The Sukhoi is a far more capable jet overall, the only real value-add the Rafale offered is some additional advanced hi-tech processes and technologies that Russia lacks.
Sorry I forgot to add, as a direct result of cancelling the Dassault-Rafale deal for 126 aircraft, India will purchase (under license) an additional 72 Sukhoi-30MKI jets (a redirection of cash from the French project to Russia of approx: $200-300 Million). Ahh! now doesn’t that stick in the EU’s craw?
As predicted the Mistral deal would come to haunt the French. The arrogance of the West will always be its downfall…..did the French Govt. really think other countries and potential customers weren’t watching and how renaging illegally on a contract would not hurt them?
It’s obvious that Minsk2 is a sham. Talking about ‘cease fire’ to mean limited attacks by Kiev to meet it’s own purposes, and ignoring the other violations, such as the political and economic ones, doesn’t get anywhere except for a little game playing. How long this game will be played and the farce continued is a mystery, but the reality persists. It probably has as much to do with Russia’s internal politics as with foreign politics, and Donbas will make it’s own decisions. But the whole thing is like turning on a ball game on the TV with the volume down and listening to the play-by-play of another game on the radio. Well — that’s international politics these days, especially from the empire’s side.
Maybe it’s time for Donbas to announce all bets are off, move in what troops and equipment are needed, and beat down the attackers. Maybe Russia should announce bets are off too and start openly supplying Donbas. Let the empire scream and moan as always, regardless of the reality. Or just do it and say nothing — because the realty is what counts in the end.
Spot On! I have always believed that Russia should go in there(Ukraine) and clean house just a bit.
Until Someone finally gets this and understands that Ukraine IS Russia-S.W. Russia, those crooks in Kiev will keep doing their evil work.
It seems to me that Elvira Nabiullina, head of the Central Bank of Russia, has taught the Western banksters a lesson: that she is more competent and that she can outsmart the most ruthless of them. Remarkable choice by Putin, which is more evidence of his political wisdom.
Economists I’ve heard or read on the topic say she’s blindly following straight Chicago school monetarist policies. One even cited a page in a book of Friedman’s where he uses a rate hike to 17% in an example.
Strictly speaking bloomberg is right, if the ruble goes to high it’s going to be a problem for russian exportations, it has to be noted that the ruble was approximatly 15% overpriced before it’s collapse. So in order to keep a good balance between inflation & competitivity, it has to stay at a moderate level.
And for the RCB, I would say the same, the policy followed is not that good, the raise of the rate to 17% was clearly effective to counter speculation, but deadly on the long term for the economy. A time limited capital control would have been a better solution, but yes, it is not an “orthodox” one, meaning a solution which would not be approved by the chicago boys fanboys… But, it has to be noted that the RCB acknowledge it by lowering the rate to 12% now. It is still too high for russian buisness, especially farmers and small industries, because the real cost of the credit is higher than the 12% of the RCB, which is only the director rate.
Awesome entertainment. Visuals, script, and biting sarcasm.
The South Front team is firing on all cylinders.
Off topic but relevant to France breaking it’s commitment to Russia for the Mistral Ships:
India scraps it’s largest defense deal in history (to France) worth over $20 Billion and replaces it with a deal worth about a quarter of the original contract ($4-5 Billion). One of the reasons given by Modi administration spokesmen was risk mitigation as a result of France defaulting on the Mistral deal: India wasn’t willing to risk $20-$30 Billion on the risk that France may not deliver due potential future geopolitical changes, however, they could risk $4 Billion.
Times of India: MMRCA deal: India to scrap $20 billion mega project for 126 Rafale fighter jets
Rafale’s arrogant attitude during the negotiations was: “we’re going to need to double the price we agreed to in the RFP – take it or leave it”, the Indians called their arrogant bluff: “How about we cut the contract to a quarter it’s original value, now you can take it or leave it.”
“Ouch!” that stupid decision just cost the EU-poodles in France almost $20 Billion dollars in lost sales: $16 Billion loss from Indian Deal, $2 Billion loss from Russian Mistral Deal and an additional $2 Billion loss in penalties. = 16+2+2 = $20 Billion.
ROFL!!!!!!! LOL!!!! French arrogance (Rafale and India) and simultaneous craven compliance (Mistral and Russia) has a very steep price.
On his trip to France, Prime Minister Modi decided to “thank” the French for their arrogance (they tried to double the price of the Rafale deal – as if they’re the only game in town) by scrapping the deal for 126 Rafale jets and throwing-in a consolation price of only 36 jets.
The real intent of the original deal was to acquire French refinements in French aeronautic engineering and technology transfer, this smaller deal can achieve the same thing without risking a huge amount of money. India already has very good relations with Russia’s military contractors and having been building their gen. 4+ Sukhoi-30 MKI from raw materials in India for quite some time. The Sukhoi is a far more capable jet overall, the only real value-add the Rafale offered is some additional advanced hi-tech processes and technologies that Russia lacks.
Sorry I forgot to add, as a direct result of cancelling the Dassault-Rafale deal for 126 aircraft, India will purchase (under license) an additional 72 Sukhoi-30MKI jets (a redirection of cash from the French project to Russia of approx: $200-300 Million). Ahh! now doesn’t that stick in the EU’s craw?
Thanks, I needed that.
Brilliant.
As predicted the Mistral deal would come to haunt the French. The arrogance of the West will always be its downfall…..did the French Govt. really think other countries and potential customers weren’t watching and how renaging illegally on a contract would not hurt them?
Rgds,
Veritas
It’s obvious that Minsk2 is a sham. Talking about ‘cease fire’ to mean limited attacks by Kiev to meet it’s own purposes, and ignoring the other violations, such as the political and economic ones, doesn’t get anywhere except for a little game playing. How long this game will be played and the farce continued is a mystery, but the reality persists. It probably has as much to do with Russia’s internal politics as with foreign politics, and Donbas will make it’s own decisions. But the whole thing is like turning on a ball game on the TV with the volume down and listening to the play-by-play of another game on the radio. Well — that’s international politics these days, especially from the empire’s side.
Maybe it’s time for Donbas to announce all bets are off, move in what troops and equipment are needed, and beat down the attackers. Maybe Russia should announce bets are off too and start openly supplying Donbas. Let the empire scream and moan as always, regardless of the reality. Or just do it and say nothing — because the realty is what counts in the end.
Spot On! I have always believed that Russia should go in there(Ukraine) and clean house just a bit.
Until Someone finally gets this and understands that Ukraine IS Russia-S.W. Russia, those crooks in Kiev will keep doing their evil work.
It seems to me that Elvira Nabiullina, head of the Central Bank of Russia, has taught the Western banksters a lesson: that she is more competent and that she can outsmart the most ruthless of them. Remarkable choice by Putin, which is more evidence of his political wisdom.
Economists I’ve heard or read on the topic say she’s blindly following straight Chicago school monetarist policies. One even cited a page in a book of Friedman’s where he uses a rate hike to 17% in an example.
Strictly speaking bloomberg is right, if the ruble goes to high it’s going to be a problem for russian exportations, it has to be noted that the ruble was approximatly 15% overpriced before it’s collapse. So in order to keep a good balance between inflation & competitivity, it has to stay at a moderate level.
And for the RCB, I would say the same, the policy followed is not that good, the raise of the rate to 17% was clearly effective to counter speculation, but deadly on the long term for the economy. A time limited capital control would have been a better solution, but yes, it is not an “orthodox” one, meaning a solution which would not be approved by the chicago boys fanboys… But, it has to be noted that the RCB acknowledge it by lowering the rate to 12% now. It is still too high for russian buisness, especially farmers and small industries, because the real cost of the credit is higher than the 12% of the RCB, which is only the director rate.
And if it works? I guess we will all have to dig out our old Friedman textbooks.
Great report. Loved the lambast of zionazi bloomersberg at the end. :D