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Sunday, October 25, 2009

High-Speed Rail Keeps Train Makers on Track

By PAUL GLADER

ST. PETERSBURG, Russia—As an engineer pulls the throttle, villagers track side gawk at the bullet-shaped train as it gathers speed. Soon, forests and wooden shacks are a blur as a dashboard display reads 250 kilometers an hour (155 miles per hour).

Ten years in the making, Russia's state-owned railway is testing eight trains that in December will rush travelers from here to Moscow in less than four hours. With fancy kitchens and leather seats in first class, the Sapsans (Russian for peregrine falcons) mark a change in Russia's egalitarian rail tradition.

More broadly, though, Russia's new trains mirror a global push in high-speed rail that spans from China to the U.S., an effort that is buffering Siemens AG, Hitachi Ltd., Bombardier Inc. and other industrial giants against the economic slump.

Global spending on trains, tracks and equipment is expected to reach €122 billion ($182 billion) this year, up 18% from 2004, according to Unife, an international trade association. It projects that the figure will rise to €150 billion by 2016.

Rail spending "has a short-term effect on unemployment as well as a longer-term effect on economic growth," says Michael Clausecker, Unife's director general.

A high-speed rail link between Madrid and Barcelona that opened last year has stolen former air travelers, cutting daily flights between the cities in half to 35. France hopes to double its high-speed track to about 2,500 miles by 2020.

In the U.S., President Barack Obama has vowed to spend $13 billion over five years to build high-speed rail links between major cities.

The spending is aiding the fortunes of train makers.>>>

Russian Legislators Stage Protest

By GREGORY L. WHITE

MOSCOW -- Opposition parties staged a rare act of disobedience in Russia's tightly controlled political system Wednesday, walking out of parliament to protest what they said were rigged regional elections last weekend.

Though there was no sign the action would have major consequences, it cast a spotlight on vote manipulation, a phenomenon the opposition and independent poll monitors say has been widespread for years in Russia but that the Kremlin and electoral officials dismiss.

RIA Novosti

Members of four opposition parties walk out of the State Duma, Russia's lower house of parliament, on Wednesday.

The walkout also posed a problem for President Dmitry Medvedev, who Monday praised the vote and congratulated the ruling United Russia Party for its strong victory.

Mr. Medvedev has called for a more open, competitive political system, with greater representation for parties other than United Russia, which controls commanding majorities in national and regional legislatures, as well as among governors and mayors. Critics charge the Kremlin hasn't backed up the promises with actions.

U.S. Secretary of State Hillary Clinton hailed Mr. Medvedev's rhetoric in a speech to students Wednesday at Moscow State University, underlining the importance of "cultivating core freedoms -- free speech, freedom of the press and freedom to participate in the political process."

She didn't mention the recent elections.>>>

Saturday, October 3, 2009

The Perspective Of A Russian Immigrant

In the Union of Soviet Socialist Republics, I was taught to believe individual pursuits are selfish and sacrificing for the collective good is noble.

In kindergarten we sang songs about Lenin, the leader of the Socialist Revolution. In school we learned about the beautiful socialist system, where everybody is equal and everything is fair; about ugly capitalism, where people are exploited and treat each other like wolves in the wilderness.

Life in the USSR modeled the socialist ideal. God-based religion was suppressed and replaced with cultlike adoration for political figures.

The government-assigned salary of the proletariat (blue-collar worker) was 30%-50% higher than any professional. Without incentive to improve their life, professionals drank themselves to oblivion. They — engineers, lawyers, doctors, teachers — earned a government-determined salary that barely covered the necessities, mainly food.

Raising children was a hardship. It took four to six adults (parents and grandparents) to support a child. The usual size of the postwar family was one or two children. Every woman had the right to have an abortion and most of them did, often without anesthesia.

There is a comparative historical reality that plays out the consequences of two competing ideologies: life in the USSR and in America.

When the march to the worker's paradise>>>

Sunday, September 27, 2009

The Peril and Promise of Investing in Russia

September 24, 2009, 5:00PM EST

It's still risky, but for global corporations, the country is simply too big—and too rich—to ignore

http://images.businessweek.com/mz/09/40/600/0940_48russia.jpg

A new Moscow HSBC branch, part of a major Russian expansion for the bank James Hill


Why would anyone invest in Russia? The economy is expected to shrink 8.5% this year, and will be slow to recover its momentum. Inflation is in the double digits. Even President Dmitry Medvedev calls corruption in his country "endemic." And sophisticated investors know all the horror stories of operating there: BP (BP) locked in headline-grabbing clashes with its joint venture partners. Royal Dutch Shell entangled in endless charges of violating environmental laws. William Browder, a pioneer investor in Russia, mysteriously denied re-entry into the country while his Russian fund is stripped of its assets. Swedish retailer Ikea suddenly blocked by authorities in Samara from opening a huge store it had just built, ostensibly for violating the local building code.

And yet many multinationals—big, battle-scarred companies, veterans of coups in Brazil and hyperinflation in Turkey—refuse to pull out of Russia. Instead they're digging in for the long haul. John Deere (DE), Unilever (UN), and HSBC (HBC) all have begun major Russian expansions in the past few months. Wal-Mart Stores (WMT) has an advance team on the ground as it mulls opening a Moscow location, following French hypermarkets Carrefour and Auchan. On Sept. 1, Topeka (Kan.)-based Collective Brands (PSS) announced it would open 90 Payless ShoeSource outlets across the country over the next five years. "Among emerging markets, Russia has moved to the top of our list," says Chief Executive Matthew E. Rubel. Even companies that have been beaten up in Russia, like BP and Ikea, say they'll keep investing.

For major global corporations, Russia is>>>>

Wednesday, August 5, 2009

Defense Officials: Russian Subs Patrolling off East Coast of United States

AP

Tuesday, August 04, 2009

WASHINGTON -- Two nuclear-powered Russian attack submarines have been patrolling in international waters off the East Coast for several days, in activity reminiscent of the Cold War, defense officials said Tuesday.

U.S. Northern Command would not comment on the Russian submarines' movement. But in a prepared statement, Northern Command spokesman Michael Kucharek acknowledged the patrols and said the U.S. has been monitoring the two submarines.

Two senior U.S. officials, however, said the submarines had been patrolling several hundred miles off the coast and so far had done nothing to provoke U.S. military concerns. The officials provided details on condition of anonymity in order to discuss intelligence reports.

While the incident raises eyebrows, it did not trigger the more intense reaction by the U.S. military that Russia prompted when two of its bombers buzzed an American aircraft carrier in the western Pacific in February 2008. U.S. fighter planes intercepted the two Russian fighters, including one that flew directly over the USS Nimitz twice at an altitude of about 2,000 feet.

The event did not escalate beyond that, but it signaled a more aggressive military agenda by Moscow.

The latest incident, which was first reported by The New York Times, comes amid increased Russian military activity in the region, and as the administration of President Obama works to thaw tense relations with Moscow over plans for a missile defense system in Central Europe.

Just last week a senior Pentagon official said the administration is looking at options for the plan, which would install 10 interceptors in Poland and a radar system in the Czech Republic. Assistant Secretary of Defense Alexander Vershbow told Congress members that the Obama administration is looking at various configurations as part of its review of missile defense plans.

Russia, meanwhile, conducted naval exercises>>>

Saturday, July 25, 2009

Biden: Russia's 'Withering' Economy Will Force Change

The country's economic problems could force it to open up to the West on a range of issues, the vice president said in pointed remarks to the Wall Street Journal following his trip to the region.

FOXNews.com

Friday, July 24, 2009

Vice President Joe Biden is optimistic that Russia will warm to the West, given that its economy is "withering," he said in an interview with the Wall Street Journal.

The country's economic problems could force it to open up to the West on a range of issues, including loosening its grip on former Soviet bloc nations and reducing its stockpile of nuclear weapons, Biden said in pointed remarks to the newspaper following his trip to the region.

"Russia has to make some very difficult, calculated decisions," Biden said. "They have a shrinking population base, they have a withering economy, they have a banking sector and structure that is not likely to be able to withstand the next 15 years, they're in a situation where the world is changing before them and they're clinging to something in the past that is not sustainable."

The United States' often tense relationship with Russia has been among the issues that have faced the Obama administration this year, as the White House seeks the country's help in applying pressure on North Korea and Iran, both potential nuclear threats.

Biden had traveled this week to Ukraine and Georgia,>>>

Thursday, July 9, 2009

Putin's Patsy?

Attention: I am issuing a Red, White and Blue Alert ! Our American way of life
may be in danger. Please read and share with all of our freedom loving friends.
Brought to you by: RedWhiteandBlueAlert.com and AmericanFreedomAlert.com

By INVESTOR'S BUSINESS DAILY | Posted Tuesday, July 07, 2009 4:20 PM PT

Diplomacy: Russia's nondemocratic rulers over the years have shown an uncanny knack for detecting weakness in their foes. Russia's Vladimir Putin is continuing the tradition.


Related Topics: Europe & Central Asia


President Obama no doubt believes he was dealing with honest brokers when he agreed with Russia's leaders to cut U.S. and Russian nuclear warheads to about 1,600 each. For the U.S., that's a cut of about a third.

But please read the fine print. This is a "preliminary" agreement. In order for it to go into effect, Russian leaders say they want the U.S. to give up its plans for a missile defense system.

To do so would, in effect, be a unilateral disarmament by the U.S. against the most feared weapons on earth — nuclear missiles. It's an abandonment of our allies, including Poland and the Czech Republic. It's not an acceptable bargaining chip.

It's reminiscent of the time in 1961 when President Kennedy — like Obama, youthful, attractive, intelligent, well-spoken — met with Soviet Premier Nikita Khrushchev. During that meeting, Khrushchev quickly sized up Kennedy as a foreign-policy lightweight.

Within months, he tested Kennedy's mettle — erecting the Berlin Wall, and, the following year, sending missiles to Cuba to challenge the U.S. just 90 miles off its own coast.

In public, Kennedy stood up to Khrushchev; behind the scenes, he caved, trading our missiles in Turkey for the ones in Cuba. Kennedy, in interviews, later regretted his own callowness.

Compare that with President Reagan's 1986 showdown with Mikhail Gorbachev in Reykjavik, Iceland. That came on the heels of a U.S. deployment of missiles in Europe, Reagan's refusal to sign a Nuclear Test Ban Treaty and his 1983 "Star Wars" speech. He was negotiating from strength — the only thing Russians get.

In 1985, Reagan had told Gorbachev bluntly during Geneva arms talks: "We won't stand by and let you maintain weapon superiority over us. We can agree to reduce arms, or we can continue the arms race, which I think you know you can't win."

In Reykjavik, with the world's media egging him on to make a deal, any deal, on nuclear arms with the USSR, Reagan said, "Nyet." Why? He wouldn't give up U.S. missile defense. With that stand, the Soviet Union's demise was assured.

By contrast, Obama on Tuesday called Russia, a country that's falling apart, a "great power" and reassured the nondemocratic Putin he'll keep Russia's interests in mind while crafting U.S. policy.

"As I said in Cairo," the president said, "given our interdependence, any world order that tries to elevate one nation or group of people over another will inevitably fail. That is why I have called for a 'reset' in relations between the United States and Russia."

This implies an equivalency between Russia and the U.S. that simply doesn't exist. Russia comes up short on any measure of civilizational success you might want to use. Indeed, we have elevated a country that has invaded a neighbor, uses energy as a weapon against our democratic allies and refuses to help in our effort to halt Iran's dangerous nuclear program.

Russia is not a "great" power. It's a Third World nation with First World nuclear weapons. It's in a downward spiral due to its collapsing population, shortening life-spans and shrinking economy. It might not even survive this century as a nation.

This has been the U.S.' biggest mistake: to give Russia respect it hasn't really earned. Maybe, as it turns out, Putin, a former top KGB operative, is more clever than Gorbachev. He knows our president needs a foreign affairs success.

Before President Obama signs off on anything, he'd do well to review the presidential history of dealings with the Soviets. He can learn from both Kennedy and Reagan.

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