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Avaricious the Central Bank worse sanctions

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For two years the activity of the Bank of Russia provision of Russian economy loans fell three times.

According to the results of March inflation in Russia dropped to 0.5%. Taking into account January and February indicators this means annual rate of 7 percent, which is almost twice less than it was in 2015. Despite such optimism, it would seem that the dynamics, the discount rate of the Central Bank, which, on assurances of a regulator that drops following the decline in the growth rate of prices remains at 11%. And if you believe the words of the first Chairman of the Central Bank Ksenia yudayeva, after the April meeting, she also will not change.

Such a Frank demonstration of complete indifference to the state of the national economy and the interests of the country, the Russians have not seen for a long time.


The apotheosis of neglect on the part of the Central Bank was the recent interview of Ms. Yudayeva journalists of “Izvestia”. “I would not focus on the word “crisis”, — said Yudaeva. — Our situation best describes the term “new reality” — that is not temporary difficulties, and new coordinates in which our economy will develop”.

Position amazingly comfortable. If there is no crisis, then there is no need to take measures to combat it. There is no reason to evaluate the efficiency of the regulator and the adequacy of its decisions. In the country production declines, the business is unable to borrow at normal conditions — of course, the Central Bank’s fault. The case in the new coordinates, adjust! With this logic, the Central Bank seemed not to blame for the fact that the key rate is too high does not allow loans to businesses is lower than 17-18% per annum. And so that almost any (legal!) production in Russia does not have a margin sufficient to pay such interest, guilt of the regulator. It just so happens that a loan with such a rate you can afford is that speculators and various legalized Scam.

With regard to small and medium businesses, and it does is for a Board designed by the Central Bank credit system and forced to survive by their own means. Of course, any development in such conditions is not the question.


The result of the actions of the Central Bank the last two years clearly show the following figures. In 2013, with the attraction of borrowed capital in the country worked 30% of the enterprises of small and average business. Basically low by world standards indicator. By mid-2014 their number decreased to 25%, and by the end of 2015 — up to 10%. In two years of activity of the Central Bank of a security of the Russian economy loans fell three times. In its destructive ability office Elvira Nabiullina was much worse than all Western sanctions, combined. The Central Bank’s policy became one of the main factors behind the continued decline in industrial production. By the end of 2015 it amounted to 3.4%. Volumes of production of manufacturing enterprises declined further by 5.4%. In fact the country is paying increasing deindustrialization mindless commitment to the management of the Central Bank monetarist dogmas.


The paradox is that the very global practice, which fanatically follows the “best banker on the planet” Elvira Nabiullina, dictates is not what creates the Russian mega-regulator in their country.

It is enough to compare the policy of the Central Bank at least with the March decisions of the European Central Bank.

  • The European regulator took and did not shun to reduce the base rate to zero. Feel the difference with the Russian 11%! The ECB’s decision gives the West the opportunity for banks to issue even not just cheap but very cheap loans. But it is extremely important for capital-intensive industries. Well from this, and the financial sector; and citizens taking on mortgages and educational loans — all happiness.
  • The ECB increased the negative Deposit rate on their accounts. De facto controller literally kicks kicks capital from the financial sphere, where they lie dormant, acquiring unsecured zeros. Bankers are directly put before a choice: or to start to lend to the real sector of the economy, or your money begins to be deducted at a rate of 0.4% per month.
  • Strengthened program of quantitative easing (QE). What it means: the European Central Bank intends to print 80 billion euros a month and buy them in debt obligations of distressed companies. The regulator has decided not to repeat the mistakes of the Americans, Redeemer of “toxic” assets only in the financial sector: unlike the fed, the ECB intends to purchase and the real sector. Due to this, the capitalization of production will go around the financial system and not get stuck in black holes as happened in the United States.
  • We can only guess what will make our Champions in raising the rates and fans of inflation targeting, if they are forced to print more money and give them industry. Eat a couple of ties? It is likely the Central Bank and the Finance Ministry jointly Chow carpet, but the money from them, the economy will not see.

    Interview Yudayeva provided answers for a few other important issues. Whether in General the leadership of the Central Bank to stimulate the development of the Russian economy? The answer is no. “The Central Bank now does not help the budget, it has no such function, is acknowledged Ms. Yudaeva. — The budget is spending their own reserves, which were held by the Bank of Russia. If the reserves budget is over, he will have either more actively occupy means in the market to Finance the deficit or reduce the deficit. Attempts to Finance the budget deficit through emission lead to a sharp rise in inflation, while inflation becomes chronically high,” she said. Translated from economic to human it means this: the Central Bank will not give money nor business, nor the state. The lack of capital they’ll have to either borrow in the market at crazy interest established by a direct order of the Central Bank, or to reduce costs.

    How long the Central Bank would strangle the Russian economy? And on this question the Chairman of the Central Bank gave an honest answer. The regulator will continue its policy until the inflation rate drops to 4%, she said. What the wreckage of the economy will live to see this happy moment — the leadership of the regulator, apparently, little interest.

    From among the experts who commented on the application Yudayeva, the most rational proposal was put forward by Advisor to the President, well-known economist Sergey Glazyev. “The leaders of the Ministry of Finance and the Central Bank would have to send in the industry, to have ceased to tell tales about adaptation to instability of exchange rate and interest rates”, — he wrote in his “Twitter”.

    A day earlier Glazyev described the current situation with the term “stagflation” — a combination of inflation and stopping economic growth, and warned: “This is the path to economic disaster. If not created by the policy of the Central Bank “new reality”, the Russian economy could grow by 6-8% per year”.

    The proposal to organize a government of the liberals to internships really deserves attention. Considering the merits of the mentioned persons to the country, there are quite a few places where they can be identified: solar Magadan, Vorkuta hospitable… the Main thing is not to let them out with the work crew about fifteen years, until the nation recovers from the effects of their “effective” governance.


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