At that time, as the us extended sanctions against our country, we continue to buy American debt obligations.
On March 6, President Obama extended for another year the sanctions regime of emergency against Russia announced its decree 13660. For the first time the US and its allies have imposed sanctions exactly 2 years ago. In connection with the events in Ukraine. They affect the energy, defense, financial sectors and individuals in Russia.
WIFE GIVE UNCLE…
One of the main goals of the Obama decree 13660 – to block Russia’s access to Western loans, financial to weaken, if not to strangle our country. No wonder under these sanctions in late February, the state Department and the US Treasury strongly encouraged (read ordered!) the largest American banks Goldman Sachs, JP Morgan, Bank of America, Citigroup and Morgan Stanley to buy Russian government bonds. Do not dare to Finance the economy of a potential enemy! Sharks of wall Street immediately saluted. Moreover, Goldman Sachs has already pre-agreed to the stationing of the Russian dolgovremennoi, but after the command of the state Department was forced to withdraw its application. So the state Department clearly showed who is really the master in the global market “free capital”.
This despite the fact that Russia itself is under sanctions, inspired by Obama, and increases again purchase us bonds, the so-called treasuries. In November – 6 billion bucks in December at 4.1 billion. As of January 1, 2016, the Russian investments in US Treasuries amount to $92,1 billion. But when our Ministry of Finance decided in February to place in overseas banks debt securities at a measly 3 billion “green” immediately failed the state Department.
What a strange policy of the financial authorities of Russia? The country is desperately short of money. Sequestered budget, officially reduced the costs of health care, education, veterans periodically frighten freezing pensions… business Loans, mortgages – under the enormous ruinous interest! To Supplement the budget, the government introduced a new excise tax on gasoline, diesel fuel, which will inevitably lead soon to new growth in fuel prices in Russia. Despite the fact that the oil in the world fell sharply. In turn the excise tax on palm oil, soda… Grow the number and amount of fines for motorists, paid Parking, other “fees”, fees, fees. The list can be long. Popular bitter joke about the imminent “a tax on the air for the Russians”. The feeling that the government wants to get out of the crisis only at the expense of the population. Which have fallen and so have profits, salaries even according to official statistics. And prices are rising, and unemployment…
And at the same time, billions of dollars go overseas, invested in the economy of our probable enemy.
Remember the proverb – “give uncle’s Wife, and he go to … aunt (easy virtue)”. Accurately reflects the situation.
Puzzled ordinary people, experts, even other members. Here is the comment of the Deputy of the state Duma Alexander Starovoitov investment of $ 10 billion in treasuries at the end of last year:
“Probably, for someone it is just empty figures, but a small comparison: this amount for two months equivalent to the planned government spending to support the economy of the Russian Federation for all of 2016, 30 percent higher than annual government spending on education, 54 percent – on health care.”
Starovoytov insists that the management of the Bank of Russia had in the Duma, and explained the mysterious policy of withdrawal of funds in overseas securities: “Maybe it’s some kind of elaborate economic ploy, maybe they do have information that this will bring the country significant revenue?”
PACIFIC HARBOUR CAPITAL
Don’t know what to answer the Bank of Russia Deputy and will respond if at all. So please explain the situation to the Director of the Institute of globalization problems, doctor of economic Sciences Mikhail Delyagin.
– Michael G., to begin with explain, what this thing was – treasuries?
– The name of the debt obligations of the U.S. government originating from the English Treasury “Treasury”, “Treasury” or “Treasury”. The official name of the U.S. Treasury literally translates as “Treasury Department.” The term “treasuries” means all types of debt liabilities: short-term Treasury bills (usually a maturity of from 4 to 26 weeks, but comes to a year), medium-term by their standards, “notes” (maturity from 1 year to 10 years) and long-term bonds (10 to 30, but usually up to 20 years). The latter have the highest value and usually “treasuries” are they, though not entirely accurate.
For all types of treasuries, there is a huge secondary market. Power, wealth and the active dominance of the United States, as well as the development and asianromance markets, make treasuries absolutely liquid and reliable. They gladly accept as collateral to secure loans of all types.
The U.S. government guarantees the owners of its debt, though low, but a fixed percentage (in recent years, from 0.25 to over 3% depending on the species and the market situation). However, depending on the balance of supply and demand they can be placed at a price both below and above par; constantly varies their price and subsequent auction.
In General their yield is low and inflation of the dollar means, as a rule, the depreciation of investments. This is the flip side of Berishvili. However, full liquidity and the actual guarantee from the falling value of securities, make “treasuries” attractive as a means of saving money, “safe haven” for carrying on the use of capital around the world. The buildup of the global crisis, growing instability and expansion of areas of bloody chaos (including the ongoing U.S. to Finance its development frightened capital of the world) increase the demand for them and reduce their profitability.
If on 1 June 2006 the yield on the common 10-year bonds (“bonds”), the United States stood at 5.145% per annum, by July 1, 2012 it has fallen to 1.47%. By December 1, 2013, she rose to 3.026%, and March 1, 2016 amounted to 1.881%.
– Penny!
– Yes, our profit from investments in them is negligible.
– Why would Russia, from the point of view of common sense, invested in these securities if there is no decent profit in the country not enough money and the Finance Ministry is trying to find on foreign markets poor 3 billion? By the way, who exactly is in charge of treasuries?
– Investments in treasuries carry both the Finance Ministry and the Bank of Russia. The Ministry of Finance, reducing the Reserve Fund (45% of which like 45% of the foreign currency portion of the Fund “national wealth” is invested in US debt) to cover the budget deficit reduces investment in treasuries. The Bank of Russia is selling treasuries while reducing its foreign exchange reserves and buying the increase. Therefore, the growth of investment caused by the activities of the Bank of Russia, and not the Finance Ministry.
From the point of view of common sense investing we are now in debt securities of US, to put it mildly, irrational. However, from an accounting perspective, actions of the monetary authorities of Russia proper. Being liberals, they serve the global business for which the progress of Russia is invalid, because he can create his competition. And if the money of the people of Russia do not have to work at it, they simply have to lie down, ideally slowly rastaskivat different kinds of speculators (for global business speculative in nature) and corrupt (because they are deriving stolen from the country, ultimately turning it into financial resource for global business).
“Just lie there” the money is in the most reliable financial instrument – and it just treasuries. The increase in investments in them – a clear expression of a fundamental failure of Russian liberals from the country’s development as such.
Nothing else can explain the logic of our monetary authorities personally, I can’t.
Suffice it to recall that according to the internationally recognized “criterion Reddy” to ensure the stability of the national currency (and, in an open economy, without restrictions on speculation) are sufficient international reserves equal to the amount of the quarterly export and the annual foreign debt payments. All the time the devaluation of the ruble since January 2014, the international reserves exceeded the required criterion Reddy level in 1,5-2 times, that is, were excessive, and the devaluation was fully man-made.
At the beginning of 2016, the criterion Reddy to Russia $was 165.3 billion, and our international reserves are $368 billion.. Now they are above $379 billion! That is 200 billion. right now lying in the pockets of the state, can be directed to the development of the country without risk of weakening of the ruble. But liberals prefer to maintain the money of the country, leading against Russia “cold war” of annihilation. As I remember, said Dvorkovich, Russia should pay for the financial stability of the United States,” and this Maxim is strictly enforced.
Therefore, the management of Bank of Russia, as well as socio-economic block of the government Medvedev, in my opinion, it’s time to invite not on a fluffy carpet of the state Duma, as suggested by MP Starovoytov, and on the cold tiled floor of the Lubyanka.
LOOP KUDRIN
Many experts believe that the withdrawal of billions in the ocean depletes the Russian economy. Your opinion?
– Of course. The money can go for modernization of the infrastructure, normalization of education and health, for the treatment of children, salaries of officers of the FSB, the end! But they are removed from the economy, which creates an artificial shortage of money. Before the start of the Western loan and investment embargo March 2014 major Russian corporates has evolved, taking abroad as loans their own money, paid as taxes to the state and bred them abroad. It was called “loop Kudrin” – the name of the person abrasive her all over the country.
After the Russian rejection of the West organized the Nazi coup in Ukraine and, in fact, it is the American occupation that “loop” was broken by the West. Russian taxpayers stopped lending, even to their own money.
But the liberals in power, servants of a hostile Russia to the West, not only taking our money from its financial system, but continue to display them there!
Wise Kudrin started the game with treasuries, to lower inflation, to save money from the theft. The money will still continue to steal, inflation mad, to put it mildly… the Logic of “our money was stolen in Russia, they need to quickly to give to someone” aptly characterizes the intellectual level of Russian liberals. No coincidence that our competitors from the West recognized Kudrin the best Finance Minister, and Governor as the best Governor of the national Bank.
As for inflation, it is breakneck because of the artificially organized hunger money. Bringing money to Russia for the ocean, the liberals bled economy. And the only way to somehow support it becomes devalued. It increases the price of imports, which share a large (because own production destroyed money hunger and onerous WTO), and causes panic, encouraging monopolies (the arbitrariness of which fundamentally do not restrict the liberals, opposed to government regulation as such) even harder to raise prices.
As a result, money hunger, created supposedly to curb inflation, but in fact to withdraw money from the country to the global business and to support it, contributes to the acceleration of price growth in our country, not to mention quite colonial destruction of the economy.
– Another strong argument of liberal economists – China, Japan, the UK is heavily invested in treasuries! And Russia is worse?
– Rebuilt their economy, they invest in debt securities of US extra money, find no use.
Our economy is monstrously neconventionala, she can’t breathe with no money, desperately needs them. This can be judged at least on Russian roads. We sometimes even on Federal highways a feeling that the Great Patriotic war has not ended, the Germans continued bombing…
China, Japan, again, invest the excess, and we’re knocking myself recently, something that itself is sorely lacking.
RESOUNDING SLAP IN THE FACE OF THE STATE DEPARTMENT
– What a strange story with the debt of the Ministry of Finance of 3 billion, explain. They say you can borrow on the domestic market or from China. Why ask Americans? A fool worked for the Ministry of Finance or is it a cunning politician?
– The search for the Treasury of $ 3 billion, as well as domestic loans, with unused reserves that, according to his own report, made on 1 February 2016, a 10.2 trillion.RUB. is just beyond good and evil.
But the Ministry of Finance takes loans seem then to pay interest thereon: it is a means of financial speculators, lending it, at taxpayers ‘ expense, at our expense.
American investment banks, I think, used to work on these schemes. Hard to imagine that they were not corrupt, and to look for a new intimate partners is difficult.
Although, of course, the Chinese loans are more expensive than Western. But it’s not a critical difference. The reason, I think, is that in China corruption shot. And maybe China as a strategic competitor, the United States simply cannot be the partner of the Russian liberals: overseas home can for such to be punished.
– Sober whether our government, the Bank of Russia a resounding slap in the face of the state Department – prohibition of American banks to buy bonds of the Russian Federation?
– Nekrasov at the time, wrote: “People servile rank real dogs sometimes heavier punishment, but they mile the Lord.”
For liberals, the West is the source not even as much money as the ultimate truth. When I see the interaction of our liberals with the West, remember Mayakovsky: “I Saw the dog licking the batter’s hand?” Now I see almost every day.
So not sober: on the contrary, think more deeply immerse them in saloperie and delight of slavery.
UNDER THE IRON HEEL OF INDEMNITIES
– That’s what opinion found on the Internet. “If we really independent power, ready to confront the hegemony of terrorism, the United States, then why the hell are investing billions of dollars from the sale of our resources in the U.S. “valuable” paper with almost zero yield? Why we sponsor the economy of the enemy and supported afloat its currency?”
Finances the economy of the enemy of the liberal part of the elite of Russia, which, I repeat, finds it unacceptable our independence and almost crime – our sovereignty. And the liberal part, in addition to the management of the entire socio-economic sphere and a huge part of the outreach, to be extremely influential in other elements of the state.
90 years have not gone away: they sit in government and want to return. The liberal opposition on the street is ridiculous, pathetic and even somewhat useful. Really dangerous its associates, control Russia in the interests of the mortal enemies of our homeland…
– Maybe you’re so vain furiously “comes over” on the liberal wing of the government, Michael G., a casket just opened? “Strange” buying of treasuries in fact is disguised from the people contribution, which it has to pay Russia for the defeat in the “cold war”. A very common version! There is supposedly such a secret arrangement between the winner and the loser. Some conspiracy theorists go further, believing that Russia since Yeltsin is under external control.
– External control of nuclear power is only possible as external control of the traitors, barricaded in its leadership. No other form of external control, not to mention the occupation, technologically impossible.
The President of the country, which has at least one missile of class “Frontier”, are free not to carry out any obligations that it deems harmful to the country. Including indemnity.
“FIFTH COLUMN” PACKING HIS BAGS?
– Another version, popular in the people: our “fifth column” in the power of preparing rear. At a convenient moment will fly to the West, and will take the Russian money placed in treasuries.
In principle, such plans members of the ruling liberal clan possible. However, it is clear that if the “moment” comes, the West will not give them even their own money and assets derived in the fashionable country.UK primary preparation for their confiscation, as you can understand, already done.
Serious people have long expressed fears that in case of aggravation of the situation Washington can freeze our billions placed into their debt securities, if not confiscated. The state Department ban on the purchase of American banks our bonds shows that they are able to take this step.
– Under normal conditions the United States will never be confiscation of foreign investments in its debt, as it discreditied their securities and show that they are not safe attachment. This will bring down the whole pyramid of debt, as it will no longer be trusted. I remember when in the mid 90-shveycariya opened the unclaimed accounts in their banks in the framework of the campaign “finding the money to victims of Nazism, its banking system over the year has lost a quarter of its assets, as investors saw the former, absolute banking secrecy is no more.
However, in the context of the global crisis in waiting, us the collapse of the global market for macro-regions and the unified financial system in the world – in the currency area, the US can go to the confiscation of assets invested in their debt.
Therefore, to protect our money you need.
– How?
– Very simple! Don’t need to keep their money in the pockets of a potential adversary, which cultivates a rabid Russophobia, not hiding, leads us against the cold war of extermination, organizes Nazi coups in friendly countries, and unleashes a civil war there.
THE KEY TO A GREAT FUTURE
– In the conditions of crisis to save the economy and the people?
– First of all, we must recognize the salvation of the people and the economy goal of the state. People considering it for the purpose of serving the hostile global business can work as dishwashers, janitors, and maybe even the taxi drivers – but not Prime Ministers, not heads of the Bank of Russia, Deputy Prime Ministers and Ministers.
The key to a great future – modernization of infrastructure. That investment was not tomorrow in the foreign exchange market, you need the separation of speculative capital from the rest of the economy. In the market of the USA, the beacon of democracy, it was lifted only in 1999, in Japan in 2000!
That investment was not stolen, it is necessary to limit the corruption that went into the overpricing – the tyranny of monopolies. Is the problem already solved in the world: it would wish.
It is necessary to provide reasonable protection, at least at the EU level. Because the sanctions can be canceled, it is necessary to withdraw from the WTO. It’s just as any contract with corrupt motivation in international law null and void. Knowing liberals, who were involved in Russia’s accession to the WTO, I believe that to prove corruption motivation will be easy.
Further, for the development of the country needs human capital. Hence, it is necessary to restore quality and free education and medicine, to ensure a real living wage.
Finally, it should be exempt from taxes small non-speculative, and beyond the Urals – and medium business, transfer of vacant land ready to handle them, to decriminalize VAT. The regressive scale of taxation of the remuneration of mandatory contributions and taxes replace progressive. Today we have income of the poor mandatory contributions off 30%, wealthy 10% and the rich can wriggle out and pay nothing. A flat-rate tax progressive tax in the world remained only in Russia and Bolivia. The cause of the pension crisis – the construction of liberal tax haven for the idle billionaires and tax hell for everyone else; remove it – and the Pension Fund of the “black hole” will become the largest investor in the country.
Such simple recipes?!
– Absolutely. Have gone through this developed country now. Otherwise they would not have developed. Only now our government sat up in the White house to write these recipes, as you might imagine, will not. Preferring to do it the old fashioned way. More precisely, inaction. And the crisis is growing.
THE LARGEST HOLDER OF US DEBT
(According to U.S. Treasury, January 1, 2016)
1. China – $1.2 trillion.
2. Japan – $1.1 trillion.
3. The Caribbean -$351.6 billion.
4. OPEC -$292,5 billion.
5. Ireland – $264.2 billion.
6. Brazil – $254.8 billion.
7. Switzerland – $231.9 billion.
8. UK- $218.3 billion.
9. Monaco – $200,5 billion.
10. Hong Kong – $200.2 billion
…15. Russia – $92,1 billion.
