Russian Gold and Texas Tea
Commodities / Russia Apr 15, 2008 - 01:22 AM GMTBy: James_R_Voigt
What do Texas and Russia have in common?
Is it the vast wide open spaces that are prevalent to both Texas and Russia ? Or is it the references to the "Texas of Russia" for the regions of the former Soviet Union that have shown an independent, “wild west” spirit, just like Texas past? Why even George Bush and Vladimir Putin have been barbequing together in Texas . Is that it?
Is it that Sergei Krikalev , the most famous living Russian cosmonaut is stationed at the Lyndon B. Johnson Space Center in Houston ? Or that many Russians in the past have migrated to Texas in pursuit of religious freedom? Is it the call for Moscow to create its own “Russian Texas” in Russia by a leading Russian nationalist writer, Yegor Kholmogorov? His call is for an area that would be “more Russian than the capital” Moscow , a compliment to the lone star state as being the most American.
While Putin's popularity ratings in Russia are still soaring, President Bush's have dropped and though Russians seem annoyed at the constant meddling from the West, Mr. Putin and Mr. Bush still remain friends. Why? A great part is economics; it's all about oil. Texas is the global symbol for oil and gas and with George Bush's background as an oil executive from Texas , Russian oil millionaire and billionaires are giving the Bush Administration and Texas some of the credit for the recent run up in oil prices.
It is no wonder Russians respect Texas ; it leads the nation in total productivity therefore making it the leading oil producer in the US . Besides oil, more beef is produced in Texas than in any other state, with a robust agricultural sector. Texas is also the nation's largest cotton producer. Texas is a world leader in the space industry, and a major stakeholder in high technology. Befittingly, Texas also built the largest of all the state capitol buildings and one only needs to stand before the Kremlin in Moscow to understand the connection to big ambitions.
Texas's growth can be attributed to the abundance of jobs, the low cost of land, the lack of a personal state income tax , high quality education, limited regulatory atmosphere for business , a strategic location, pleasant weather , and plentiful supplies of oil and natural gas. Add in the southern hospitality, and what is there not to like about Texas ? Many Russians surely have the same desire.
The real connection that Texans have to Russia , is the understanding of the value of land, and what's under it and with the largest land grab in history, the fall of the Soviet Union, it would be hard for many Texans to not take notice at the riches Russia has to offer.
Russia has become the preferred investment destination among the BRIC countries ( Brazil , Russia , India and China ) according to a recent survey of 190 key Emerging Market fund managers conducted by Merrill Lynch, but it was not always like that. Several professionals now doing business in Russia have come from Texas to Russia early in its' democratic and economic transformation.
A prime example is fellow Texan Gerald Gaige of Ernst & Young in Moscow . Mr. Gaige was designated the lead for the establishment of personal and commercial land property rights in Russia . As the lead, he helped the Putin administration write the property rights laws that now prevail throughout Russia today.
Russia and Texas also have large timber resources, but the story does not stop there for Russia , oil and timber is just the beginning. The rest of the story for Russia starts 250 million years ago during the Permian-Triassic extinction event , when volcanoes erupted for 2,000,000 years spreading resources and minerals for lush forests through out Siberia . The volcanic event is said to be the largest known volcanic eruption in earth history. As a result there are more natural resources throughout Russia than any other place on the planet.
Russia is exceptionally rich in minerals, containing large deposits of gold , diamonds , and ores of manganese , lead , zinc , nickel , cobalt and molybdenum . Take away oil and you are left with a lot of natural resources that can be converted into hard currency and spread throughout the rest of Russia 's economy.
And with the high demand for commodities today, it would be hard to image how Russia could not benefit from the ever expanding global economy. The fall of the iron curtain has lead to a lot of people entering the global free market economy and Russia is uniquely positioned between the west and east with its long ties to Asia and emerging trade with the west known as a "golden gate".
Since the first oil well Spindletop in 1901, Texas has mostly been in an economic boom and greatly benefited from its oil wealth and today the same can be said about Russia . For instance, in 2008, Texas continues to create more jobs than the rest of the nation despite a national credit contraction, due in a large part to strong exports and high oil prices and the same is true for Russia .
Texas grew rapidly, becoming the second largest state in population by 1994, and became economically diversified, with a diverse growing base in high technology. Texas offers a clear road map for Russia 's goal in meeting the same challenges of diversifying it's' economy through wise utilization of oil profits as Texas has done. Russia is currently accomplishing the same through large scale commercial and industrialization projects along with many technology investments from the oil and gas profits the government has amassed in their investment funds.
By James R. Voigt
Chairman and CEO
920-207-6358
New Russia Fund Management, LLC
2935 South Fish Hatchery Road, #110
Madison, WI 53711
Email: tculver@wi.rr.com
Tel: 608-276-9890
Fax: 608-276-9891
US Conference Line 605-475-6100 Code: 53711
For nearly 20 years, Jim has helped Russia and the former Soviet Union to succeed in the development of computers, telecommunications, the international space station and now infrastructure and real estate development. Jim has also been responsible for bringing various goods and services to Russia, including the computer. I n 1990, Mr. Voigt was awarded a one-time commemorative gold and titanium Medallion by the Russian Parliament to commemorate the new Democratic movement. The Medallion was ceremoniously flown on the Mir Space Station. Only two other recipients, Ronald Reagan and former Soviet President Mikhail Gorbachev, share that honor.
Disclaimer: The opinions expressed above are not intended to be taken as investment advice. It is to be taken as opinion only and I encourage you to complete your own due diligence when making an investment decision.
James R. Voigt Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
