A financial revolution is brewing in Russia

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

What Russian patriots could not do, American congressmen will do

The financial revolution in Russia, the need for which the patriots have been talking about for so long, has begun. True, it began in the USA. It is there that the most important financial decisions regarding Russia are being made so far - economic sovereignty, unlike military and political, has not yet been restored to Putin.

But every cloud has a silver lining. A group of Democratic congressmen submitted to the US Congress a bill that, if passed, would prohibit American citizens and companies from placing their funds in Russian OFZs. The consequences of such an event, if it takes place, and this is all proceeding according to the inexorable logic of the escalation of the conflict, when the leverage is increasingly being built up by the instigator and provocateur, will lead to the final impossibility of the functioning of the Russian financial system in the colonial form in which it was created all the years from the moment adoption of the Law on the Central Bank of Russia. That is, from the beginning of the 90s.

Since the American financial market is the most bottomless reservoir of free money on the planet, drawing from it forever is the dream of all capitalist, that is, liberal states. The right to enter this market requires recognition of the position of a US vassal and surrender of political sovereignty. For the comprador elites, who were placed as puppets from the structures of global capital, the loss of sovereignty is not a problem, they were put in power for such a loss. And Russia was no exception to this rule - since the 90s, a powerful liberal wing kept and still keeps Russia within the framework of the system of economic subordination to the West, threatening that if it breaks down, the financial umbilical cord between Russia and the United States will be cut. This served as an excuse for the presence of liberals in power - they were responsible for the work of this umbilical cord.

In the American financial market, Russia replenished the budget with foreign currency by selling its federal loan bonds - OFZ. The Americans rightly judged that they had no reason to sponsor the revival of Russian military and economic power for longer, since Russia renounces its vassal status, and decided to cut this umbilical cord - the ban on the purchase of Russian OFZs by American residents had long been expected along with a measure to disconnect from SWIFT.

But if the consequences of disconnecting from the electronic payment system are easily stopped by the use of other systems, then the abandonment of the American monetary freebie calls into question the need for the existence of an entire political class of liberals in the economic block of the government. The West has cut down the base under its fifth column in Russian power. And he did it deliberately - the sanctions showed that the liberals do not exert any influence on the Russian government. It became useless to contain such agents, and they sent it to the slaughter, after having subjected it to robbery and executions of criminal prosecution. For the West, the loss of the liberal wing in Russia is less terrible than the strengthening of the power wing.

But in this case, the Russian authorities face the challenge of how to compensate for the resulting lack of money. Emission will require strengthening the planning principle in the economy, because all control is a plan. Control is needed during emission to prevent inflation from developing. And the growth of regulation is the most important liberal taboo and the worst curse. You can go over other markets, but there it is more and more difficult and more expensive, and besides, there is no guarantee that the long arm of the United States will not reach those states whose residents will buy our OFZ instead of the Americans.

Europe is all under the control of Washington, but there is no prospect with China and India - they themselves work with American markets and there are no more places in the world where there are so many idiots with free money that they are ready to invest even in Musk's adventures, even in the papers of Ukraine, only they wouldn’t burn my pocket. In total, the share of foreigners in Russian OFZs is 33.9%. This is a very high figure, the growth of which was not prevented by political conflicts such as the Ukrainian and Syrian. The interest in Russian securities is caused by low government debt, that is, high guarantees of receiving promised payments on debt.

But the blow to key Russian banks, combined with the blow to the OFZ market, will force foreign holders of our securities to start getting rid of them. The dumping of bonds will drop the ruble, and it will be difficult for our banks to borrow to service existing debts. The Americans know exactly where to hit - and they hit it prudently. It remains to ask our reformers - why did they create such a vulnerable system? But I think they will answer that they created the system for a country that agreed to share the subsoil with global TNCs and NATO in Sevastopol, Damascus, Pyongyang and Tehran, and not for refuseniks from the Washington Consensus.

If Russia has decided to become an anti-liberal dissident, then it urgently needs a completely different financial system. And this system was created in the USSR, where for 70 years it successfully solved the development tasks assigned to it in conditions of constant sanctions, blockades and hot wars. This is the state financial management system.

All the most important processes of the origin of money were different. Cashless circulation was separated from cash, which excluded inflation in the consumer market. It was impossible to cash out non-cash. The volume of the money supply corresponded to the number of manufactured consumer goods. Prices, profit and profitability were controlled - today these functions are not successfully performed by the Federal Antimonopoly Service, for which they were conceived, but it does not have the strength to fight the monopolists. They have a stronger connection in power.

Control over prices by non-monetary methods in the USSR made it possible to put the budgetary process on a planned basis. Enterprises in the USSR, after paying all taxes and interest on loans, had standards for the distribution of profits by funds - a production development fund, a material incentive fund and a social and cultural fund, from which they contained sanatoriums and pioneer camps, cost departmental housing and maintained their polyclinics and hospitals. But after the distribution of all planned money according to the standards, the so-called free balance of profit remained. It was seized by ministries and concentrated in the hands of the Government. It was a budgetary source of secondary status, but in terms of the money supply, it was the main one. With these funds, the USSR not only solved its own issues in the country, but also maintained a lot of vassals on the planet. That is, from a purely technical point of view, it was a logical scheme, which made it possible not to depend on loans abroad and fully ensure the country's sovereignty with colossal expansion opportunities in order to move the border with NATO. Security in that world was much higher than it is now.

Of course, this example is not given in order to call for its verbatim copying. This is unnecessary and impossible - the conditions are gone, and there is no country where this instrument was adequate and effective. But the idea itself is correct - if you wish, you can find other mechanisms for replenishing the budget in such a way that both the economy does not suffocate from the tax burden, and the sources of budget financing are not foreign. The principle itself is important. Yes, you have to stretch your legs on clothes, live on what you earn and reduce foreign loans to the maximum security, but there is no other way. Another path is the path of Ukraine: debt bondage on the terms of renouncing sovereignty with a gradual transfer of control over the country into the hands of the United States, followed by the dismemberment of Russia and its clash with all neighbors on the borders in the interests of America.

It will be necessary to reconfigure the entire financial system to find a mechanism for internal financing of investments in industry and defense. This will certainly happen, because the Russian ruling class simply has no other choice. Under the previous conditions, he will not survive, because he will not save the country. And the experience of the collapse of the USSR showed that the former elites of the collapsed country are not needed either abroad or in their former homeland.

The system will have to be changed. Of course, this will require some regrouping within the political class, but the price of the issue is life, therefore, the illusions and outdated theories of yesterday will be inexorably and quickly said goodbye. Those who fail will be thrown out of power.

Time is running out, and you will have to act immediately. Thanks to the actions of the United States, the Russian ruling class itself is being pushed in the back towards what it has avoided for 30 years - towards building a self-sufficient independent country with its own ideology and a new geopolitical concept of its place in the world. And if ideological blinders do not exceed the instinct of self-preservation, then the financial revolution will be made by them. If the love for old theories outweighs common sense, then, as Vysotsky sang, “others will come, replacing comfort for risk and exorbitant work, they will pass the route you have not traveled.”

However, one way or another, the financial revolution has begun and the classic revolutionary situation is ripe - the top can no longer finance the budget in the old way, and the bottom does not want such a scheme anymore. The process when the export of money from Russia into US bonds exceeded loans from the same US of the same Russian money already at higher interest rates, as a phenomenon of rare economic cretinism of liberals, came to its logical conclusion.