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Russia and Trump

By Traci Seltzer-Castillo

Trump “bought” the POTUS by 1) manipulating voters through big data (ie. The block chains and other manipulations of tracked data), and 2) getting help from Russian hackers who hacked into key states’ voting systems.  He needed both elements to be able to win because without them, there is a very good possibility that Hillary would have won. Trump’s history of dishonesty and bankruptcy should have eliminated him from the presidential election but it did not (the American legal system may need some adjustment and honing).  He settled his fraud case out of court right before Election Day 2016. He defrauded students with his fake online university.  He is also notorious for “robbing Peter to pay Paul”, and for his using his fake non-profit organization’s donation to pay his legal bills when he is sued, and for the fines he is ordered to pay by the US court system.

Trump is correct that the US should try to “make nice” with Russia.  Too many Americans (at least the ones who vote and understand and follow politics; mostly older Americans) still have the mindset from the Cold War Era that Russians are “Commies” and dishonest (A daily reading of American news shows Americans are not extremely honest either…..for example, the Panama Papers).  Russia has the largest amount of millionaires in the world, most living in Moscow. They have had a free market system for 25 years now, and they are just now starting to feel the social impacts of this new system; the stresses that such a system causes over the quest/greed for money.

Of course, there is government corruption in Russia, but there is here in the US too. It is both interesting and ironic that many of the activities the US accused the Soviets and Russians of doing in the past are the exact same acts the US has been and is still doing to its own citizens. Julian Assange, Private Manning, and other whistleblowers have shown the world that this is true. They have suffered for their risks of exposing the truth.

The Russian free market economy was and still is an untapped income source for international businesses. In fact, Trump has many businesses in Russia, and these felt the financial crunch when the sanctions were levied against Russia in 2014 after the Ukraine Conflict.  So, Trump wasn’t making money either from his business investments he had already established on Russian soil before he became POTUS.  This further motivated him to ask the Russians to help him win the POTUS (because greed or money is a very effective motivating factor). The economic sanctions were levied collectively by the US and the European Union, but also unilaterally by the US. Russia also levied import bans that hurt many European and American businesses that were still allowed to do business in Russia under the economic sanctions.

There is a very good possibility that Trump made a deal with the Russians that if they got him into POTUS, he would lift the sanctions against Russia (specifically Putin’s inner circle of extremely wealthy friends who were most affected by the sanctions). The reasons Russia would have made this deal is that 1) Russia’s economy was shrinking because of the sanctions, and 2) Russia’s “bread and butter” is based on oil.  Russian social programs and the government function due to the proceeds of oil sales. The sanctions against Russia included no sale of replacement parts for the oil drilling rigs, and most of these rigs were purchased from American companies. So, as the parts began to wear out, the Russian oil companies (especially GasProm) could not easily extract oil, therefore, they could not sell much on the world market (but the Russians asked Chinese engineers to design similar replacement parts,  but this took a lot of time for development).

Unfortunately for the Russian oil market, in September 2016, the 5 years of oil embargo that mandated that Iran could not sell oil on the world market ended.  This flooded the global oil market since Iran started selling oil at a very low price so that they could raise hard currency (US Dollars) to improve their very hurt economy. This further hurt the Russian economy since oil customers could now choose a different supplier (the law of supply and demand).  Oil was selling at its lowest for about USD30/barrel, but on average around USD50/barrel for the last 2 years (and now up to about 70USD as for 25 Mar 2018). Russia needs at least USD100 per barrel just to break even on its government and social program bills. Russia has drained most of its two big money reserve accounts. The long term drop in oil prices has certainly caused devastating effects on countries that rely on income from selling oil on the world market, including Venezuela, which has its own political problems and corruption.

Also, Russia’s currency devalued to the dollar.  At one time, it was at an amazingly high rate of 95 rubles per 1 US dollar (Each bank may have a different exchange rate. The USD/RUB exchange rate was 1:30 before the Ukraine situation).

Since most goods (and travel) are purchased using US dollars as the international purchase currency, the cost of consumer goods in Russia greatly increased while people bought appliances and electronics in bulk (to sell later; again, the law of supply & demand) and people were losing their jobs or taking pay cuts just to keep their jobs because the economy greatly slowed and shrank. Many Russians lost their jobs during this time, or they had to greatly tighten their financial belts. For some Russian banks, their supply of USD was greatly limited or cut off because these banks refused to give the names of their American clients to the US government, so the US Federal Reserve refused to sell USD to such banks (as a form of “blackmail” or “leverage”). Many small Russian banks actually closed during the worst of this economic situation in Russia.

Trump wasn’t too “street smart”. He allowed his hormones to cloud is otherwise substandard judgment. The Russians videoed him with various beautiful Russian women in his hotel room. This was released to Trump to show him that the Russians had secret videos of Trump, but he did not know what else the Russians had recorded about him and his activities. Since Trump certainly remembers the activities he did, he was probably concerned about which, if not all, of those activities were recorded.  This was done to make him “behave” and to do his part that he promised to do (lift the sanctions). Videoing Trump was the Russians’ insurance that Trump would do his part.  However, he was not able to deliver the promise of lifting sanctions because of the way the US “checks & balances” work (which work relatively well,  but still need to be honed, obviously since Trump’s past allowed him to become president).  Russia did their part but Trump didn’t deliver his part; a “breach of contract”.

This left Russia in a bind to stimulate their economy since the US and the world sanctions against it are still practiced.  What Trump didn’t realize is that Russia had other options, “Plan B or more” by forming economic trade with other countries such as Venezuela (that does not like the US, and they don’t try to hide that fact) and with Asia, especially the Far East. The Russians gained an edge over Trump because of his arrogance and narcissism.

There are similarities between Trump and Hitler.  Hitler outright killed those he did not like, or who opposed him, or who he felt had a low quality of life. Trump is doing this too by taking away healthcare in the US so that people die.  Trump has taken away healthcare for children of indigent families including a lot of immigrant families (a passive form of ethnic cleansing).  He has taken away educational assistance for children with disabilities. He has taken away the subsidies to help the elderly pay for heat, utilities and prescriptions.  Hitler did an “ethnic cleanse + quality of life cleanse” but Trump is doing an “ethnic cleanse + socioeconomic cleanse + quality of life cleanse” by use of his executive orders and other methods to “Make America Great Again”.

Hitler also consolidated his power into a dictatorship shortly after being elected. Trump tried this too as soon as he was sworn in. He signed many executive orders in his first few months as POTUS. He has limited communication from government offices.  He has also cut funding to government offices or organizations that he feels are not important such as climate change.  Now the world is considering replacing the US Dollar as the reserve currency which would cause many problems because international contracts are normally written in US Dollars, and the contracts may span future decades with predicted exchange rates. For example, Boeing and Airbus have contracts that may span decades). The US credit rating has been downgraded for the first time in US history, thanks to the Republicans, for which Trump is. The US may be headed towards yet another credit rating downgrade since Trump just signed the new US budget in March 2018.

Traci Seltzer-Castillo has worked as internal fiscal and compliance auditor for various government and private sector entities, criminal analyst, and academic teacher in a men’s prison. She has graduated with  an MBA (in Leadership & International Business), holds a Master’s of Science in Psychology, a future Master’s of Education (in International Education; June 2018), a Bachelor’s of Arts in International Relations, and a 140-hour TEFL certificate.

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Foreign Policy News is a self-financed initiative providing a venue and forum for political analysts and experts to disseminate analysis of major political and business-related events in the world, shed light on particulars of U.S. foreign policy from the perspective of foreign media and present alternative overview on current events affecting the international relations.

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