/ world today news/ Sergey Yurievich, did you expect that the banks would be able to get a record profit?
Our regulator is doing everything possible to ensure that financial speculators and monopolists receive super profits. Moreover, the Central Bank actually lobbies for their interests. This is evidenced by the new trend of increasing interest rates. While rising interest rates are bad for the economy, they allow our banks to make excess profits.
They successfully profit from the margin between interest on deposits and on loans, including consumer loans. And the regulator at this point calmly turns a blind eye to how banks charge completely draconian money transfer commissions.
This is an open abuse of a monopoly position. They divided the market among themselves, divided the enterprises, divided the customers, inflated the commissions, prevented the transfer of customers, the flow of money between them. It’s a cartel between state-owned banks that allows them to siphon off excess profits.
And the regulator approves it…
The controller pretends nothing is happening. Another source of super profits for our banks is currency speculation: last year they received about 170 billion rubles of profit from the devaluation of the ruble.
It was such a simple operation: the head of state gave instructions once again to save the economy, the Central Bank granted loans to commercial banks of almost 4 trillion rubles for this purpose, they threw this money into the foreign exchange market. Putting pressure on the market, they played against the ruble, that is, for devaluation, buying the currency at one price and then selling it at another. And this market manipulation is also done in front of the regulator and all market participants.
I have mathematical proof that our potential regulator is working in the interest of financial speculators and loan sharks! This is their purpose function. Whatever they say about the fight against inflation, the methods they use in this fight do not work at all.
Moreover, increasing interest rates is counterproductive from the perspective of long-term economic stabilization; leads to a decrease in the rates of economic development and, first of all, a decline in investment activity. In two or three years, this will cause a new devaluation of the ruble.
That is, something of a cyclic nature is obtained.
Yes. Every three years we have a devaluation of the ruble, to which the Central Bank reacts again and again by raising interest rates. And every time, because of this, investment is compressed, there is technological degradation, a reduction in competitiveness, and then a new devaluation to equalize this competitiveness.
And who is most interested in raising rates? Financial speculators who bet on the yield of securities. They also profit from the government, which is forced to sell its bonds, lend to the market, at prices that are three times higher than the objective assessment of the risks.
– We are already beginning to suspect someone of the right to participate in this conspiracy. In particular the Ministry of Finance. Of course, this is our assessment, but such thoughts are born of the painfully close love affair between our financial structures and those who take on debt obligations.
Of course, they are all intertwined. We are therefore forced to state: our monetary authorities, including the Ministry of Finance and the Central Bank, work in the interests of financial speculators.
After all, the 2014 ruble crash was manipulated, just like the market crash last spring. Amid the beautiful songs of inflation targeting, the financial authorities inflated the profitability of the financial market. This gives speculators and bankers extra profits at the expense of economic growth.
Due to their fault, the banks almost stopped lending to investments and their share in these assets fell below five percent. Now banks are engaged in speculative services, trade finance. At the same time, they give the population loans, artificially supporting demand. In the end, all this leads to the bankruptcy of millions of people.
But the Central Bank is worried, they believe there is overheating.
There they killed one of the most important resources for the development of the economy – the savings of the population. Today, if we look at how much people owe to banks and compare it to the amounts they hold in bank accounts, we get almost equal figures. Meanwhile, in a normal economy, the population’s savings are the most important resource for financing investment. Even today, the population has ceased to be a creditor of economic development.
Our debt has already exceeded 20 trillion rubles. At the same time, there are about 30 trillion dollars in deposits. From here it is necessary to separate a narrow group of ultra-wealthy citizens. As a result, we get an extremely dangerous situation. I am not sure that in the future, if the crisis continues, households will be able to service their debts.
Statistics show that the number of bankruptcies continues to grow. And every increase in interest rates gives this process a new impetus. We have five trillion in assets in bankruptcy – a huge amount.
That is, per person, there is a creeping redistribution of ownership in the country in favor of the heads of the state banks, who have the ability to manipulate the terms of the loan. I know of hundreds of cases where the credit conditions of businesses are deliberately worsened, to the point of bankruptcy.
The bank itself loses from such operations as a legal entity. But whoever orders such fraudulent operations just gets a super profit. In addition, they have the opportunity to buy this enterprise at a price 5-10 times lower than its market value through bankruptcy proceedings.
They buy to buy, but these buyers of stolen goods don’t know how to handle it. And what do they do? They squeeze the last juices out of the enterprise.
Do you agree with the opinion of your colleagues, who are confident that the wave of bankruptcies this year will grow sharply?
These rising waves of bankruptcies are not visible to us behind the waves of the pandemic. In addition, I believe that the country has developed a stable criminal community of highly skilled fraudsters who professionally deal with corporate bankruptcies. Legislation has been created for them – this is our Bankruptcy Act.
That is, it is brought to the state level?
It’s been out for a long time. There is even such a phenomenon as “mortgage raiding”, when first the borrower receives normal terms of the loan, then he is deceived and brought to bankruptcy. I note that in our Bankruptcy Law there is still no definition of the concept of malicious bankruptcy due to the creditor’s fault.
For a long time, among our state-owned banks, resale operations of bankrupt enterprises have been flourishing. And each bank has already acquired its own subsidiaries that deal with this.
See what decisions are made by the courts – according to statistics, in almost 100% of cases, the decision is made in favor of the banks. That is, the courts also work in the interest of big money. And that’s not all. These criminal communities also include investigative bodies – they cannot do without them.
And this is one of the reasons for going offshore. I’ve spoken to several entrepreneurs who are hard to fault for not being patriotic. They honestly admitted to me: going offshore is the only way for them to keep assets in Russia.
Criminalizing the institution of bankruptcy is a terrible disease of our economy. It is a constant threat of redistribution of property, and the better the enterprise, the more efficient it is, the more people want to take it away from the person who created it.
And the reason this evil flourishes is that the big state-owned banks, which have monopolized the credit market, raise interest rates and manipulate credit terms. And the regulator turns a blind eye to it.
And this system works in our country because of the short-sighted policy of the Central Bank, which constantly overestimates interest rates. And the hyper-volatility of the ruble, freed to float at the behest of the regulator, makes long-term investments impossible. No one knows what the interest rate will be tomorrow, what the ruble exchange rate will be. Everyone lives for today. And such uncertainty contributes to criminalization.
– At one time they tried to shut your mouth for such sharp statements.
– Thanks to you they can’t do it.
Translation: V. Sergeev
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