/ world today news/ We are still, to put it mildly, perplexed by yesterday’s decision of the Central Bank of Russia. Raising the interest rate by 0.75% to 7.5% is not just a bad move for the economy, but an open mockery of the globalists over the statesmen.
That is how yesterday’s decision on the main interest rate should be evaluated. They spit in the face of the statesmen, telling them that they can do whatever they want (increase subsidies to the main industries, fight the oligarchs, try to print the National Welfare Fund), but while the Russian monetary system is in hands of the globalists, all their attempts to tear Russia from the clutches of economic liberalism are doomed to failure.
Let’s add a hint in Nabiulina’s speech that in December the main interest rate may jump by another percentage. In case the statesmen do not calm down. And the absolutely ludicrous claim that there is a supply crunch in global markets, so the key interest rate must rise.
One would think that with the Central Bank raising the key interest rate, container freight rates on the WORLD market would suddenly drop. Do not look for logic in Nabiulina’s words.
The logic concludes that the increase in the main interest rate is a response to the actions of the statesmen. This is an answer for the loss in 2020.
Let’s imagine how Nabiulina resigns tomorrow. Will anything change? Of course not, because our Central Bank is not a sovereign entity.
At the very least, according to the legislation, the Central Bank of the Russian Federation is not responsible for the development of the economy and the growth of the welfare of the population. Unlike, for example, the US Federal Reserve or the Bank of England.
In order for the Central Bank to become a structure independent of the globalists, we need to change the legislation. It’s easy to write but hard to do.
What if the CB statutes change? The answer is obvious. The international rating agencies will downgrade the ratings of our country as a whole, and will make precise strikes on bonds, shares of state-owned companies, and so on.
For example, the ratings of the Federal Loan Bonds of the Russian Federation, in which the share of foreign investors is 20%, will collapse. Foreigners will start selling bonds en masse.
First, it will lead to the collapse of our national currency, because there will be a sharp demand to exchange rubles for dollars and euros.
In second place after the international investors, the natives will begin to run out in panic. Yields on Federal Loan Bonds will drop to a minimum. The government will no longer be able to issue bonds even to cover its old obligations.
In turn, the bonds of the federal loan will lead to the collapse of our entire financial market, because a significant part of the bonds are held by the banks, which, in the event of the collapse of OFZ, will partially fail to fulfill their obligations to the population and businesses.
Of course, one could theoretically take the risk and try to reset everything. To try to get out of the globalist financial system in one fell swoop. But the risks of instantly pushing the country into pre-bankruptcy and bankruptcy are obvious.
There is no way to explain to the population that we are getting rid of the dictates of the IMF and other nasties. There will be a social crisis, growth of anti-government sentiments, opposition rallies. Here, the West will undoubtedly take advantage of the situation.
In general, the situation is very complicated. Honestly, we don’t know what to do either. Theoretically, one can put at the head of the Central Bank a governor who will sabotage the recommendations of the IMF as a partisan. But this will become apparent in practice immediately.
In 2013, the most likely candidate for the post of director of the Central Bank was Sergey Glazev. But they failed to push through his candidacy. The risks were too great. As a result, the decision was made for Nabiulina, which is considered a compromise option. Precisely compromise and neutral. But it so happened that she became a radical monetarist, implementing practically all the recommendations of the IMF. For which he received the corresponding premiums.
Translation: V. Sergeev
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