Fighting inflation the liberals in the government by the Bank of Russia carried out a monstrous way, borrowed from the 90’s: they are extremely tightening fiscal policy. They create artificial famine, like in the economy of free competition, where the price dynamics is affected only by the volume and speed of circulation of money.
To control the speed of money circulation they do not want categorically. They are satisfied with artificial money hunger, which more and more puts us into poverty. And this despite the fact that at the end of the XVII century, that is three and a half centuries ago, in the UK it has been experimentally proved that if you want to reduce prices then you need to ensure the welfare of the mass of the population, even just giving them money. You know, we have joy.
We have greatly slowed the inflation rate.
We shall exult and dance in the streets like the Ukrainians, who heard that the price of oil dropped by another dollar per barrel. This year, inflation is considerably less than in the past. In February it was 0.6% vs. 2.2%.
However, this official figure, it is clearly underestimated compared to the actual for not less than two times, as shown in polls. But the other statistics we have, unfortunately, no. For the first two months inflation amounted to 1.6%. In January-February last year was 6.2 per cent.
Thus, braking is more than four times, yay! But jubilant crowds on the streets not because they have only slowed the growth rate of prices, but the prices are not decreased. Let’s remember. In January-February of last year, we experienced the shock of a terrible accident that gave Mrs. Nabiullina without real external preconditions in November-December. It was then that she strongly encouraged a stampede of capital from the country, she was recognized as the head of the national Bank.
Naturally, admitted no the people with the money ran away, and those to whom they had resorted. Indeed, the merit is not in front of the Russian Federation. And then there was panic, then it was all very uncertain and scary. Many expected Moscow now will bomb NATO. And actually, what really there must be confessed, that threat was lifted only a month ago, when deployed a system “Shell”, for the first time since Beria’s and Khrushchev’s really closing the skies over Moscow… won’t Bomb.
But the prices! In the words of one Russian “Baron oil”, “oil prices dropped in 3.5 times, so the gasoline in Russia will rise in price no more than 10%”.
However, when he learned that the Medvedev government raised excise duties on petrol, then a tongue, and said that now, of course, the price increase will be more. Thus, we see that the main cause of inflation is the tyranny of monopolies. With the arbitrariness of monopolies nothing happened.
And as soon as we have an extra penny, monopolists raise prices just a penny. And there was this penny someone has one, and prices improved for all. Fighting inflation the liberals in the government by the Bank of Russia carried out a monstrous way, borrowed from the 90’s: they are extremely tightening fiscal policy. They create artificial famine, like in the economy of free competition, where the price dynamics is affected only by the volume and speed of circulation of money.
To control the speed of money circulation they do not want categorically. They are satisfied with artificial money hunger, which more and more puts us into poverty. And this despite the fact that at the end of the XVII century, that is three and a half centuries ago, in the UK it has been experimentally proved that if you want to reduce prices then you need to ensure the welfare of the mass of the population, even just giving them money. In the UK, then raise the minimum wage for workers in half, among other things. And due to this the labour became expensive.
First, have the opportunity to find the professionals, have any incentive to mechanization. Secondly, as a result, dramatically increased the productivity, and the price of the goods decreased. Then about it wrote Marx, discussions with representatives of trade unions snickering. This alphabet may not be available for gentlemen Nabiullina, Shuvalov, not to mention Dvorkovich and the Speaker.
We have artificially created shortage of money, as a result, in the short term the poverty of the people hinders even the arbitrariness of monopolies, the rise of prices slows, as it was in 90-ies. Unfortunately, when this happens destruction of the economy. When the economy collapses, it becomes clear that it must somehow quickly be supported and how to support the economy by blocking its development in the interests of global business to avoid any competition? Very simple — you need to devalue.
So super-strict fiscal policy — it’s just a new destructive devaluations, which, among other things, accelerate efficiently the growth of prices. Accordingly, when the devaluation of the ruble import efficiently jumps in price and draws pictures. And then to growth adjust and import monopolies really do not understand why, when increases in the price of Egyptian potatoes or French, or Israeli, not after them to raise the price on Russian potatoes.
I remind that the Russian liberals are not the liberals who are jumping in the streets, and those liberals who carry out socio-economic policies that own and operate our country as a result they organized reform — apparently believe that the main essence of free enterprise is the ability to have different kinds of monopolies to Rob us.
And that’s got to change, because otherwise we won’t survive.
