/ world today news/ One step and the Russian economy is dead. Konstantin Malofeev told how the Central Bank bankrupted the business. He explained what worries local entrepreneurs today and how, in his opinion, the Central Bank should be reformed.
The founder of the Tsarigrad channel, Konstantin Malofeev, took part in the Russian Economic Forum, which was held in Chelyabinsk from November 9 to 11.
On the sidelines of the conference, he spoke with the economic observer of “First Russian” Yury Pronko.
Malofeev raised the topics that most excite entrepreneurs today and which they discuss among themselves on the sidelines, without cameras. He emphasized that one of the most pressing issues is the level of the prime rate.
On October 27, the Governing Council of the central bank increased the indicator by two percentage points at once, to 15%. The founder of First Russian explained on the air of the program how this decision turned out for the local business.
Even strong businesses are shaken
He emphasized that the next increase in interest rates seriously hit even the Ural enterprises, where ferrous and non-ferrous metallurgy is developed and where businessmen stand firmly on their feet:
“Without credit, the economy is dead. What’s more, some companies are now going straight to bankruptcy. Let’s say you were going to take out a loan at 10%, but now they give you 16% or even 20%. So you’re bankrupt. Because your yield is calculated on the basis of a cheaper loan. But you cannot pay 20% per year…”
“The central bank wants our economy to develop without credit, but this is impossible. It will become very little and it will only stagnate. Everywhere in the world, development is achieved through credit, they do it with the help of additional money, but we do not have it.” he stated.
“Our degree of economic monetization is 54%, in China it is 200%. In the USA – about 180%,” explained the businessman.
Malofeev added that in this situation of an insufficiently monetized economy, following some already forgotten economic theory, the principles of which even the employees of the Central Bank cannot explain, the regulator raises interest rates:
“They say there is too much money in the economy. Or maybe you just don’t know how to manage your money supply? The money supply is colored. You don’t need to give it all to speculators like you do. You can, for example, give it to the real sector “.
“Why do we give to the real sector at the same interest rates that we give to speculators? Why are our loans not colored,” he asks.
“It can be done. It could have been done in the 20th century, and certainly in the digital 21st century. The answers to these questions are of particular interest to entrepreneurs from the Urals, who, in various expressions, including ones that we do not use on the Tsarigrad TV channel, express their attitude towards the policy of the Central Bank,” Malofeev also stated.
Change is long overdue
The founder of “Tsarigrad” called for a review of the mandate of the Bank of Russia to correct the situation and force it to work for real, and not just change course from time to time:
“As soon as the legislation stipulates that the Central Bank will be responsible not only for inflation and the stability of the ruble, but also for economic growth, as well as for some other planned indicators, everything will change. “
“Because the officials of the Central Bank will then have to pay attention to the dynamics of GDP and the growth of the index of business activity. And now they do not care about that.”
Malofeev added that until the relevant changes in the regulations are officially made, we cannot expect effective steps to promote economic development by the Central Bank:
“Because he doesn’t need it. He can make the prime rate at least 50%, he can make it so that banks don’t lend to anyone. Accordingly, then everything will die. But there will be no inflation.”
“Why? Because there will simply be no goods on the shelves. In general, everything will stop. And the head of the Central Bank, Elvira Nabiulina, will later tell us that, they say, this is not our responsibility,” he answered.
For everything bad
During the conversation, Yuriy Pronko also pointed to the recent statement of Nabiulina, who unexpectedly hinted that the country needs additional labor, as economic growth will be impossible without it.
Meanwhile, the founder of “Tsarigrad” drew attention to the fact that representatives of the Central Bank and other departments of the financial and economic bloc are “on the side of evil” in almost every issue:
“If there are bad, negative trends, the Central Bank will definitely support them. It’s just that there are politicians and officials who play on the side of good, and there are those who play on the side of evil,” he explained.
“After all, it seems that what does the Central Bank have to do with the problem of guest workers? It seems that what do the employees of the Bank of Russia care about this? But no. Since they are generally against everything bad, they also advocate the uncontrolled importation of millions of migrants to our country. And in particular, Elvira Nabiulina has already decided for herself that she is a kind of “Doctor Evil”, he added.
Malofeev believes that the head of the Central Bank should participate in a real discussion dedicated to the problems of economic growth and generally deal with the development of the real sector:
“And she suddenly went beyond her direct responsibilities, which were mainly related to inflation, but for some reason decided to only talk about labor resources…”
“Why does she need this? It seems to me that this is already beyond the bounds of common sense. Why did she enter such a scandalous, dangerous and toxic sphere,” he asks.
See more details about the sabotage policy of the Central Bank in the video version of the show “Tsarigrad. Main”.
Translation: SM
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