Rouble Nationalization – the Way to Russia’s Freedom. Nikolay Starikov

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СКАЧАТЬ was needed, and its head was appointed by the Council of Ministers and was dismissed in the same manner. The State Bank had no right to appeal to a foreign court. The amount of money required for the country's economy was defined by the Council of ministers and the State Bank only issued it.

      The money issued in the USSR was of three types: notes of the State Bank of the USSR, treasury notes and metal coins. The differences between the bank and the treasury notes were purely juridical. Only bank notes were backed with gold, precious metals and other assets of the State Bank, which as stated on the bills from ten roubles. One-rouble, three-rouble and five-rouble notes (treasury notes) had a different inscription on them and were backed with the whole 'property of the state', so they did not have any gold content. In everyday life ordinary citizens had no idea about these details and that there was a difference between the two types of Soviet money. All types of money were issued into circulation by the State Bank of the USSR.

      Did Yeltsin understand what he was doing in 1990? I am sure, he did not. Illiteracy of the USSR population in financial issues was amazing. But it was not too bad back then – the Soviet people did not have to deal with anything more complicated than public bonds and deposits in a savings bank. The problem was that the elite were just as illiterate. And that ended with a catastrophe. An idea of a bank independent from the state was brought into the Soviet Union as a Trojan horse – through 'advisors'. through those who had practical trainings at Columbia University, those who were recruited or simply betrayed their country. Just as in the Hollywood film Alien' – an extra-terrestrial creature was implanted into a living body. I am exaggerating – a private Central bank was indeed like an alien for the USSR.

      Now, are the following events surprising at all? I do not think so. If anything, they are logical. I would just like to address Gorbachev with one question: Mikhail Sergeevich, how did you let this happen being the president of the USSR? What were these banks, independent from the people's authorities, which appeared in our still multinational state still governed by the people? He will not reply though. Or he will start his old song about humanity, the new way of thinking and a chance to get everyone disarmed. I put all my hopes on hell and cauldrons with boiling oil…

      Do the Russian authorities know about this 'strange' situation with the Central Bank?

      What should one do if there is understanding of the importance of the task and yet there is no power to solve the problem? One should start a systematic siege. The task should be broken into several smaller ones. To change the legislation regarding the Central Bank, a vote in the State Duma is needed. The founders of the Bank of Russia saw perfectly well what a key role it would play. And therefore they did their best to create several security levels. The first level is the law on the Central Bank. Among other things, it contains such amusing details as article 7: 'Drafts of federal law and regulatory documents of the federal bodies of executive power concerning duties of the Bank of Russia and it performance shall be submitted to the Bank of Russia for approval'.[40]If you want to dismiss bankers through making amendments to the legislation – kindly submit the draft of the bill to them in advance. Otherwise, they might as well sue you for your legal mayhem in a court of Delaware…

      The second security level is the Constitution. As the 'reformers' shoved some words on the Central Bank and its status even into the Constitution. Article 75 (points 1 and 2) says that 'the currency of the Russian Federation is the rouble', and 'issuing of money shall only be done by the Central Bank of the Russian Federation', that 'it performs independently from any other governing bodies'.[41] If you want to be surprised – have a look at Soviet Constitutions. Read the Constitution of the USA. You will find no mention of a bank that issues money independently anywhere, because such articles should not be a part of the main law of the country. What body issues the currency is a technical question, it is not fundamental for the country and its people. For the people it is not very significant, but it is a key issue for enslaving the country. That is why it was hastily dragged into the Constitution. And now this technical detail is there next to the fundamental rights of Russian citizens.

      All the following steps of the Russian authorities will make more sense if we use the failed mounted attack against the Central Bank as a reference point.

      Laws need to be changed. That means that it is necessary to take the State Duma under control. That means that a parliamentary majority is required. And therefore, a party needs to be created that will win the general elections. A political structure which is currently rather popular starts being created.

      Winning the elections is not possible without controlling the mass media. The process of talking the mass media under control begins.

      But what is even more important is talking Gazprom under control. In spring 2001 a new team comes to the company headed by Alexey Miller. Gazprom is not just gas flares and pipelines. It is also money required to buy the loyalty of the elite.

      The cold truth among politicians in Russia at the time was that if you do not pay for loyalty, you are going to be betrayed as very few people can work for the sake of the idea, putting material welfare at the very end of their priorities. It takes a while to find such people. Where? Among one's friends. This is when people from St. Petersburg start coming into Russian politics and economy. It is required to put one's own people at key positions and secure their loyalty with a high salary provided by Gazprom, with some encouragement' in an envelope or turning to blind eye to their 'mischievousness'. One can only have very few close friends whom they know very well. When one runs out of them, one has to switch to friends' friends. These will not betray in conditions when betrayal is normal, as long as they have a secure reasonable income.

      One of the most important parts of the preparation are the law enforcement structures. Otherwise, one may just not live long enough to see the victory. It is required to fill the key positions. First of all, the doctor, the head of security and the cook. Then the minister of defence, the Home Minister, the head of the FSB, the head of the Federal Security Guard Service. If you look at the dynamics of changes of leading officials in these spheres – a lot of things will become clearer.

      If you are still not entirely convinced that the key to all the problems is hidden in the corridors of the Central Bank of Russia, then there is an interesting table at the website of the Central Bank – just for you.[42] It is called 'The Base Rate of the Central Bank of the Russian Federation'. In crude terms, this is the interest rate at which the Central Bank credits banks and through them the whole Russian economy. As, let me remind you, no one is authorised to do it except for the Central Bank because roubles are issued by the Central Bank which then lends them to commercial banks.

      Looking at the table you will easily see that from 1st June 2010 the base rate has been 7.75%. This is written at the very top. And now scroll down. Have you still got any questions why the Russian economy was dying in the early 90s? Simply because the only issuing authority lent money at a 210% annual interest rate.[43] We have forgotten about that but this is how it was. This is a record-breaking rate of course, but generally in the period between 1993 and 1996, for nearly three years, the interest rate was a three-figure number. Try and borrow some money at a 210% rate! It does put you off from starting your own business and talking a loan, does it not?

      This is not a number, this is something out of this world! And, what is most interesting, do not confuse the consequence with the reason. It is the Central Bank that is to regulate the circulation of money in the country so that the country could breathe normally and develop. And it is on its activities that the level of inflation depends.

      That is to say that the inflation rate was extraordinary, and the prices were skyrocketing exactly because the Central Bank credited the Russian economy at such an extortionate rate. And not vice versa! If the idea of borrowing money at a 210% rate does not appeal to you, may be you would like 55% more? Still no? СКАЧАТЬ