well guess we just needed in germany without being able to be blackmailed unfreeze in between every american foreign policy. under the duty that they have to lead a closer relationship between russia and germany are the us is not in the position anymore to make big aims because germany now after the sanctions and after the nazi behavior of america against germany we have to look for better opportunities are up but you need peace and therefore it is not nobody will believe me at all anymore to do separate genuine europe. from russia anyway he just wants to be the first he just wants his companies to make the deal. may the year beings especially of the germans to wait at longer until american companies are allowed to make the us in russia i mean this is all about he's

a business now. this is our to international next delves into how the ruble crisis in russia back in twenty fifteen was weathered and what the future outlook is like the kaiser report starts in a moment. well there are there was a report on my skies are all kinds of exciting stories developing right before your very eyes says hey max i want to say i don't need to toot our own horn but i'm

going to we were right and b.b.c. newsnight were wrong and that is according to bloomberg and a former i.m.f. official and they say basically kaiser report was right newsnight was wrong newsnight was wrong not only like once but like two three four five six times in a row back in two thousand and fourteen. with the introduction of sanctions against russia and the tumble of the ruble. well during that time b.b.c. newsnight said there would be a current account crisis there would be a debt crisis and basically russia would fall and we covered the story we had liam how again mom telegraph journalist and we had constantine and it was episode six nine five and this is december twentieth two thousand and fourteen and here's a short clip of liam halligan talking about the nerves of steel coming from the

kremlin i actually think even though the current the interest rate move that we have seen has been dramatic from ten and a half to seventeen of course the six interest rate rise so far this year the central bank hasn't actually fired its big guns yet we have had a little bit of currency intervention it's mainly been the conversion of the ministry of finance is existing on the books flows from rubles. from dollar story into roubles. you've also go the reserves this for the so-called stabilization fund stabilization fund those created for more revenues over the last few years precisely for this moment we've already seen single digit billions used from that. and that's why a lot of people have been so we've got to i say and they still didn't fire the big bazooka it suggests to me that some pretty strong criminal at the moment so the kremlin had nerves of steel back then and we reckon they would survive b.b.c.

didn't reckon they were survive and then we're going to get into a headline from bloomberg saying actually they did very well they have an agenda over there the b.b.c. and we also have an agenda it's called truth and we just look at the numbers and we give you the unvarnished view of how gravity works in the universe as it relates to the economy they were basically blinded by some sort of hysteria they were wrong here's one area where russia beats the u.s. by several key measures as the. world's best economic management says the i.m.f. former top man in the country martin gellman he spent twenty four years at the international monetary fund much of it as the funds man in russia before during and after the country's the final crisis of the late one nine hundred ninety s. a devaluation and default that reverberated around the world since two thousand and five is then a professor of economics at moscow's higher school of economics and a well connected observer of the government's policies so bloomberg asks him how does russia's economic management today differ from what it was back then and he

answered that well it's much better largely because so many of the people now in charge experience that crisis for instance the head of the central bank elvira nebula was a deputy economy mr alexei khujand a close putin advisor and chairman of the accounts for chamber was a deputy finance minister german graf the chief executive officer of the state controlled sperm bank was a deputy minister of state property these people want to make sure that it never happens again on their watch so long as this economic team is in charge there won't be a crisis and russia people criticize us or they question us and they want to know why we're not more quote critical of russia the real question is how come we're not tooting russia's horn more because they are genius during this crisis but that would be i think a little bit you know over the top to simply point out all the good things that they're constantly doing so we just try to take a more balanced middle of the road approach that's you know the fact is that they're making all these other economies look stupid by comparison certainly alvira

now. as mark gelman goes on to say he says they have really brought home the lesson of that crisis consider the oil shock of twenty fourteen and twenty fifteen as the price dropped by more than fifty percent the central bank protected its foreign reserves by allowing the rubles exchange rate against the dollar to fall politically a very brave move and they had the stabilization fund which insulates the economy from the oil market by calling excess revenue when prices are high and providing support when prices are low we meant. on our show there were actually a lot of comments if you go back and look they're saying that was propaganda you know this is part of this whole cold war but they were saying it's propaganda if you watch all those newsnight from that week evan davies who's an economist by the way i'm not a trained economist he's a trained economist he never mentioned this stuff so you have to question who was the one that got it right we got it right based on just looking at the numbers we mentioned that well you know when they had the debt crisis and ninety eight they

had debt so we were asking where is the debt like show us the debt like where is the beef because they kept on saying there's going to be a debt crisis but based on what like there was no debt so we were right they were wrong and we're in a lot of lessons were learned in the late ninety's ninety eight crisis and countries started build up their reserves to give themselves a cushion against these types of fluctuations and the other thing that people should be aware of and we'll say it again and i'm sure nobody will follow up on the b.b.c. or anywhere other news outlets that russia has been a huge buyer of gold why are they doing that why is china buying so much gold is because they see that the u.s. dollar will lose global supremacy at some point and that has wide scale ramifications when it happens all these news outlets will say oh my god we never saw this coming oh why who's who's behind all this is it a paranoid conspiracy theory you know once again we're trying to alert you what's going on and give you the reasons why looking at just baseline numbers of economics anecdotal evidence just what other curses see what's directly in front of your face

that's a good way to put it what warren buffett is courageous in that he he's willing to invest in the blindingly obvious reinvest what we try to do is like this is blindingly obvious just state what's there well at that time when we did this report and it was two experts on both halves we had liam how again and who had lived in moscow for a long time and he was he's an economist and he speaks on economic matters for the telegraph and we had constantine going to have another economist he was at trinity . college dublin at that point now he's teaching out in california and we were i was open to hearing whatever was going to happen you know we asked them newsnight is saying there's going to be a current account crisis occur in a balance of payments crisis what's going to happen and they disagreed based on what their understanding of classical liberal economics and here the i.m.f. guy who went through the ninety eight he is the one in charge of the i.m.f. who dealt with the debt crisis of ninety eight and he was saying here he also says

russia was right i was wrong when he says that in two thousand and four when khujand first proposed the stabilization fund on the norwegian model the i.m.f. advised against it we thought that in terms of governance transparency and corruption russia was closer to nigeria than norway so the first priority was to build the institutions before trying to be norway and by god khujand proved us wrong because they brought the nonsense they were all to propaganda that the russian was closer to nigeria you know than norway no in fact russia is closer to norway and they've got the stabilization fund and the economy you know who took the economy from under two hundred billion g.d.p. to close to two trillion in g.d.p. want to take it to four chilean in g.d.p. how do you get there through trade not through anything that rachel maddow or the hollywood elite are suggesting that he is all paranoid lee scheming to do he's done doing any of that he just wants to grow the economy it's like remember america is

to be a growth situation people used to like to grow the economy and be honest and trustworthy and that's what russia is now it's like america in the fifty's and america's become the sylvia you know the fifty's it's complete role reversal actually you mentioned nigeria and this guy had mentioned nigeria and we did ask during that time because newsnight did not want to cover nigeria who actually is very close to the united kingdom and there are a lot of nigerians who moved to the united kingdom it's a relationship there and nigeria actually did suffer greatly during the oil price collapse. so their currency collapse even more they had a lot of debt they had a difficult situation at the time now it's obviously better the world oil markets have recovered and we're glad they recovered but here he's saying as regards to growth because you talk about growth in russia he said russia is an old industrial economy it's not one of those places where you have a lot of peasants coming into the mainstream workforce you can expect it to grow at very significant real rates particularly given that it's stuck in a world economy where nobody is growing significantly but an important aside. this

is from the i.m.f. guy ok this guy is an i.m.f. official one can't know the future what if investors wake up to the financial profit to see of the u.s. and other western nations where government debts are at historical highs and budget discipline is not great after the crash who is going to look good can you name one g. twenty country with almost no debt positive real interest rates a flexible exchange rate significant foreign exchange reserves and a very prudent macroeconomic policy so you know russia's general electric and america's pets dot com you know they mean russia is generating consistent earnings growth inch by inch by inch and they manage that and it looks like the right as mentioned debts very low gold reserves are are building up and you know jim rogers our friend of many years has been saying this for the last ten years is been investing in russia and he'll give you you know chapter and verse exactly why this

has been a great economy to invest in yeah and probably the rubles probably cheap on the four x. market and it's all there later. he's talked about it as. vajra here is again what he says this is also mirrors exactly what our experts in the second half constantine gird you have had said is that she was following exactly to a t what classical economics would teach you how to respond to this crisis during the financial crisis for russia two thousand and fourteen exactly the opposite of how the rest of the global central banks responded to the financial crisis of two thousand and seven to two thousand and nine he said so when. the central bank governors meeting some basel she's the one preaching orthodoxy almost all central banks have either negative interest rates very low interest rates or some kind of extraordinary monetary accommodation and here you've got the central bank or russia

with the highest real interest rates in the g twenty they are. pursuing what the i.m.f. would call a classic conventional policy when he said that at the time that it was a classic conventional policy this is how you would respond but you can't have capitalism without capital and you can't have capital without an interest rate sufficient to attract the savers without savers you don't have an economy and that's what they're doing in russia and america also in the world there think that you don't need savers you don't need wages you don't need workers you can take interest rates down to zero you can rely entirely on mergers and acquisitions and accounting fraud is the bernie made off model in america versus you know eisenhower in russia this is the russian economic policy of the runtime is eisenhower you know actually if you can learn from disaster so they went through a disaster genuine disaster in ninety eight russia did and they learned from that so we went through a disaster here as well during the dot com crash and the two thousand and seven eight nine crash we could have learned a lesson what we we haven't however we just bailed out everybody and we didn't

learn the hard lessons because they made it you know the central banks basically made the system not take its medicine like. if you talk to any russians that ninety eight was a brutal brutal situation and they don't want to ever repeat that here people feel like well what was so bad about it like we can repeat the crisis because it wasn't so bad and we got free money exactly right if you can tell there is no such thing as can fall sizzle if you can't have losers in a capitalist society that you don't you have some kind of socialist quagmire like venezuela which is like the us now anyway we've got to take a break and we'll come back so don't go away. can you think of a more intriguing story line one that includes an attractive russian woman money

politics power and yes. unfortunately for maria this is not a story line but her life at the moment she's the most recent victim of the west towards all things related to russia.