Skip to main content

Medvedev steps up

Dmitry Medvedev became Russia's new president today, succeeding Vladimir Putin.

It is expected that Putin will continue to exercise his power as Russia's Prime Minister and the leader of the United Russia Party.

More on this from Bloomberg:

"Dmitry Medvedev was sworn in as Russia's third president, succeeding Vladimir Putin, with promises to fight corruption and inflation in partnership with a predecessor who may try to overshadow him."

"...The new president submitted Putin's nomination as prime minister to the State Duma hours after taking the oath of office. The lower house of parliament will consider the nomination tomorrow. Putin is also head of the United Russia party, which dominates parliament, possibly setting up a battle for leadership."

As President of Russia, Medvedev will have to address certain economic questions, including the rise of inflation.

"Medvedev, 42, a longtime Putin ally, assumes control of a country in its 10th straight year of economic growth. Russia, the world's biggest energy exporter, has benefited from record oil and gas prices, with the economy growing at an average 7 percent a year. That growth has pushed up wages, the ruble and inflation, making Russia less competitive. Medvedev has vowed to curb inflation, without presenting a program for doing so.

`Inflation Problem'

``Economically we have a big inflation problem,'' Michael Ganske, head of emerging market research at Commerzbank AG, said in a Bloomberg Television interview. ``This is the problem Medvedev needs to solve to broaden his political base and gain the support of the public.''

And as the Financial Times points out, Russian inflation might not only become a growing national problem, it may also provide the impetus for a power struggle between Medvedev and Putin.

"Others agree that, once in office, Mr Medvedev will realise the extent of his powers and succumb to temptations to bolster his position. Mr Putin, suggests Mr Makarkin, will also not want to undermine the office of president - not least since he wants to be able to one day return as head of state.

All of which opens the way for possible clashes. One early test could be spiralling inflation, which hit 14 per cent in April.

"Mr Medvedev will not want to take responsibility for skyrocketing inflation," says Mr Volk. "So who is to blame? The government - the prime minister? So this could become a source of tension and the outcome of this tension is unclear." "

We'll certainly be keeping an eye on these trends inside of Russia.

For more info on Dmitry Medvedev, please see this recent (March 24, 2008) interview with the Financial Times.

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance , I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart. So here's what a real stock market bubble looks like.  Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ $BCOR pic.twitter.com/xjsMk433H7 — David Shvartsman (@FinanceTrends) February 24, 2015   For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan , turned to rubble. As detailed in our post, " Round trip stocks: Momentum booms and busts ", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months.  In a pattern common to many parabolic shooting stars, the s

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL!  Please bookmark our new web address at Financetrendsletter.com Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner .   Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead! As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter . You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter).  Stay up to date with our real-time insights and updates on Twitter .

Jesse Livermore: How to Trade in Stocks (1940 Ed. E-book)

If you've been around markets for any length of time, you've probably heard of 20th century supertrader, Jesse Livermore . Today we're highlighting his rare 1940 work, How to Trade in Stocks (ebook, pdf). But first, a brief overview of Livermore's life and trading career (bio from Jesse Livermore's Wikipedia entry). "During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes. Apart from his success as a securities speculator, Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly. Ironically, Livermore sometimes did not follow his rules strictly. He claimed that lack of adherence to his own rules was the main reason for his losses after making his 1907 and