Russia turned on the printing press. But not for the economy

2024 Author: Seth Attwood | [email protected]. Last modified: 2023-12-16 15:55

In fact, banks often engage in outright theft, transfer assets outside Russia, and the Central Bank compensates for these losses with the help of a printing press. As a result, every citizen of the Russian Federation pays inflation tax on such criminal operations of commercial banks due to soaring inflation.

- The inclusion of the printing press is poorly covered in the media. Usually the emphasis is on statements Head of the Central Bank Elvira Nabiulina that the Central Bank is "fighting inflation." For this process, they even came up with the term "targeting".

Is this war going on successfully? If we measure inflation by price indices for products from a soup set, as recently suggested by the Central Bank, then we no longer have inflation, but deflation. Prices for cabbage, carrots and potatoes are falling (it's another matter that the rest are growing). Then Nabiulina, if she is a consistent person, should make the refinancing rate negative. However, today it is high.

And there is a feeling that our monetary authorities are already confused. Confused and lying. And it is not difficult to confuse them, because they are not very literate people.

Actually, inflation can be explained very simply as an imbalance between commodity and money supply. In principle, inflation, even with a reduction in the volume of the money supply, can remain at the same level or rise, if at the same time the supply of commodities falls even faster.

Our financial and economic bloc is simply putting on a show called "fighting inflation."

At the same time, contrary to the statements about this "struggle", the printing press is turned on in the country, as far as can be judged

Over the past three and a half years, the Central Bank has taken licenses from more than 300 banks, and is already approaching the bar of 350 credit institutions. As a result, the number of banks decreased by one third. Of course, this whole campaign is associated with the payment of large compensation. And payments in the form of compensation to bank customers are deducted by the DIA (Deposit Insurance Agency) - a state organization, and, therefore, budget money. Interesting that Central Bank – not a government body, does not obey the Government, but payments based on the results of the Bank of Russia's work are made from the DIA. Hence, from our pocket.

In addition to compensation payments, we are also talking about money that the Central Bank allocates directly (or also from the DIA) to banks that receive the status of rehabilitated ones. It is here that hundreds of billions and even trillions of rubles disappear.

A good example of the latter is the story of bank "Otkrytie" … The decision to reorganize was made on August 29 of this year, the Central Bank experts argued that this will require 250 billion rubles., but now it is already clear that in the amount of 1 trillion rubles. will not get off … After all, as it turned out, Otkrytie has a Trust bank, which was transferred to it for reorganization. It turns out that one saves the other, and after that you have to save the savior. The last in this chain is, again, the Central Bank, which began pouring billions and hundreds of billions of rubles into the bank being rehabilitated.

And the question is, who will save the Central Bank in the end? We are with you and will save him. The bottom line is that the Central Bank turns on the machine, it accelerates inflation, and inflation is, in fact, a tax that everyone pays, regardless of his attitude to this whole story.

Now a few words about banking holes. In fact, this is an imbalance that appears on paper between the assets and liabilities of commercial banks. On paper, there seems to be a balance sheet - assets are equal to liabilities. But in reality, assets often turn out to be risky, the assessment shows that the value of assets is several times lower, and fraud is also possible with respect to liabilities. Many have heard of off-balance sheet deposit accounts. So in the entire economy, Elvira Nabiullina somehow let it slip, this banking hole is 1 trillion rubles. I have met other estimates, for example, 30 trillion rubles, and these are our two budgets.

And so, if we add up all the losses associated with the reorganization and payment of compensation to clients of banks whose licenses are taken away, we will see that To keep the banking system afloat, the central bank needs funds comparable to the country's annual budget, or even more. It is clear that these banking holes are black holes. There is no supply of goods. This means that money will be printed, and this process, as our financial authorities bequeathed to us, will accelerate inflation.

In fact, banks often engage in outright theft, transfer assets outside Russia, and the Central Bank compensates for these losses with the help of a printing press. As a result, every citizen of the Russian Federation pays inflation tax on such criminal operations of commercial banks due to soaring inflation.

The question arises, why not then include a printing press for everyone, and for the real sector too, in order to increase the supply of goods? In order to invest in industry, the entire system of the economy must be completely redesigned. Today it is built so that careless officials and businessmen can steal and export, while banks and the real sector of the economy have no incentive to engage in long-term investments and increase the supply of goods. Nabiullina, Siluanov and Oreshkin are silent about this. And they are simply unable to do this and do not understand what it is.