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Russian oil revenue gets lent to the USG

What is the USG?  And how is Russian oil revenue being lent to the States?  

Ya gotta love how America arms the world and then can't figure out why those on the other end of those barrels don't like us.  It must be cause they hate our freedom.  Yeah.  That's it...

"Pretending that you already know the answer when you don't is not actually very helpful." ~Migeru.

by poemless on Fri Aug 8th, 2008 at 05:35:30 PM EST
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US government. The substantial part of about 600 bln $  in Russian foreign reserves and stabilization fund is invested into t-bills (USG debt) and also into Fannie Mae (propping US housing market).

Russia sells oil, gets unneeded money which free marketers in economic block are saying is too risky to spend inside Russia and lends the money to the USG so that USG can spend more on Georgian arms.

by blackhawk on Fri Aug 8th, 2008 at 06:24:51 PM EST
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Georgian arms aren't really a significant expense. As far as spending it inside Russia - doesn't it already have some inflation issues? It has to park that money someplace, the choices for liquid investments of that scale are pretty much limited to the US and the Eurozone.
by MarekNYC on Fri Aug 8th, 2008 at 06:33:25 PM EST
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