Comments on: What I learned about money growing up in former USSR

By: Ajos

Ajos — Fri, 31 Oct 2014 15:35:57 +0000

Social finances behave very differently than personal finances. The way people mix them up makes me cringe.
Debt is how we expand and manage our money supply. It is a basic tool of all modern economies. Without debt the economy becomes stagnant since debt reduction = destruction of money.
This is what happened during the great depression. These concepts of macro-economic debt were not understood back then and the government did not intervene when debt was called in at massive scales. Result was a country with empty factories, with piles of coal and metal collecting dust, with parked trains, with an awesome new technology to electrify the country going idle, with investors jumping off buildings, and with healthy workers lining up at soup kitchen lines.
The few that had some money and kept on trying to pay down their debt found themselves in the ironic situation that the more they payed the more they owed? Why? Because as debt was payed in an environment where new loans were not given, there was less money circulating, this caused deflation (each dollar is worth MORE than before), so even though the amount of dollars you owe are less, the goods and services that your debt represents are MORE than before. That is what happens when a society tries to pay its debt, it just does not work: money mechanics don’t allow it. You can pay your debt as an individual (mostly by getting lucky in the real-estate or some other money game – not by working hard), but we can’t do it as a society.
Fortunately modern economist understanding this and the debt has allays been on the rise, along with inflation. This is the only way to keep the monetary system monster from ruining our lives. Russia’s economy today is doing well, and they have increasing debt just like all other economies.
The outer states that he does not use debt, yet he admits to use it for real-estate. Isn’t that his biggest purchase.Doesn’t this mean that as a percentage most of his transactions have been based on debt? It is good that he works hard and has a business, but money mechanics can ruin him just like the rest of us despite how hard we work.
At the end of the day money is not simple personal wealth management. It is much more than that. It is a living system, that when taken as a whole has key fundamental border conditions. There are better systems out-there that abandon money/barter altogether based on a new abundance derived from technological advances in energy collection and automation. Along with new discoveries in motivation showing that money holds back technical creativity (see Daniel Pinks videos), they form the cornerstones of a potentially better way of organizing ourselves. If interested look into thevenusproject.

By: Anton Ivanov

Anton Ivanov — Tue, 28 Oct 2014 01:24:13 +0000

In reply to Financial Underdog. That's awesome! Us former communists gota stick together, haha! I'm sure you'll to where you want to be if you work hard enough :)

By: Financial Underdog

Financial Underdog — Mon, 27 Oct 2014 23:03:07 +0000

Born and raised in USSR as well :)

Great post. I love how you’ve described your mindset without giving into usual cliches about poor immigrants coming to America with $20 in their pocket.

Congrats on your success, I hope to get where you are one day too.

By: Anton Ivanov

Anton Ivanov — Sun, 06 Oct 2013 20:33:36 +0000

In reply to jim. Haha, I'm glad he enjoyed it there :) Our grocery stores did used to absolutely suck and if you take pictures of the president's mansion, you're just asking to be arrested (no joke)!

By: jim

jim — Sun, 06 Oct 2013 03:57:37 +0000

Very interesting article. Our son studied in Krasnodar for several months – best education he ever got. I was constantly amazed at the stories he told us about how when he and some of his American classmates socialized with their Russian classmates. It was quite an eye opening experience for him. Once when they were out on a scuba diving trip, they passed near Putin’s latest mansion so our son took a picture of it with a flash camera. OMG! The Russian students immediately and simultaneously told him NOT to do that again! And getting on a public bus to go grocery shopping – great experience for him. Hmmm – imagine the store not having everything you wanted in it – ha! Best $ we spent on his education.

By: Anton Ivanov

Anton Ivanov — Fri, 04 Oct 2013 15:50:44 +0000

In reply to JP @ Cashsnail. I've never worked in Russia, since I moved to the US when I was 15, so I'm not sure if I would like working there or not :)

By: JP @ Cashsnail

JP @ Cashsnail — Fri, 04 Oct 2013 07:25:55 +0000

My wife was also born in USSR and she doesn’t like credit nor owing money to anyone (+ the hardworker part :)). But on the other side she enjoyed much more working in Ukraine than in Europe for the atmospheare (coworkers doing more things out of work together)

By: Anton Ivanov

Anton Ivanov — Fri, 04 Oct 2013 05:22:22 +0000

In reply to Christine @ ThePursuitofGreen. I think learning to be frugal and living below your means is a great life lesson for anybody. Many millionaires say that that's one of the most important things that helped them succeed - while so many increase their spending when their income increases, the smart ones keep their expenses at the minimum, no matter how much they earn!

By: J. Money

J. Money — Fri, 04 Oct 2013 03:30:10 +0000

In reply to GetRichWithMe.

Chalk and cheese??? Haha… that is hilarious. Especially as I literally just ate a piece :) Of cheese that is…

By: J. Money

J. Money — Fri, 04 Oct 2013 03:26:38 +0000

In reply to Freckles. Way to overcome Freckles!!!