Original Link: https://www.business-gazeta.ru/article/544773
Translated via Yandex
“Events like this happen once a century”: Sergey Glazyev on the breakdown of epochs and changing ways of life
Is it possible to stabilize the ruble in three days and why don’t the Ukrainian”zombies” give up?
“After failing to weaken China head-on through a trade war, the Americans shifted the main blow to Russia, which they see as a weak link in the global geopolitics and economy. The Anglo-Saxons are trying to implement their eternal Russophobic ideas to destroy our country, and at the same time to weaken China, because the strategic alliance of the Russian Federation and the PRC is too tough for the United States. They don’t have the economic or military power to destroy us together, not separately,” says Sergey Glazyev, an academician of the Russian Academy of Sciences and former adviser to the Russian President. Glazyev spoke in an interview with BUSINESS Online about what opportunities are now opening up for the Russian economy, whether the Central Bank is pandering to the enemy and whether a new world currency will replace the dollar.
“The new world economic order is ideologically socialist”
– Sergey Yuryevich, commenting on today’s tragic events, you wrote in your telegram channel that it was necessary to read your book about the” last world war”, written about 6 years ago. How did you manage to predict everything so accurately?
— The fact is that there are long-term patterns of economic development, the analysis and understanding of which allows us to predict events that are currently taking place. We are now experiencing a simultaneous change in technological and world economic structures, while the technological basis of the economy is changing, the transition to fundamentally new technologies is taking place, and the management system is also being transformed. This kind of event occurs about once a century. However, technological patterns change about once every 50 years, and their change is usually accompanied by a technological revolution, depression, and an arms race. And world economic patterns change once every 100 years, and their change is accompanied by world wars and social revolutions. This is due to the fact that the ruling elite of the core countries of the old world economic structure prevents changes, does not take into account the emergence of more effective management systems, tries to block the development of new world leaders using them, and tries to maintain its hegemony and monopoly position by any means, including military and revolutionary ones.
Say, 100 years ago, the British Empire was trying to maintain its hegemony in the world. When it was already losing economically to the combined resources of the Russian Empire and Germany, the First World War provoked by British intelligence was unleashed, during which all three European empires self-destructed. I am talking about the collapse of tsarist Russia, the German and Austro-Hungarian empires, but this also includes the fourth-Ottoman Porto. As for Britain, it held global dominance for a while and even became the largest empire on the planet. But due to the inexorable laws of socio-economic development, the colonial world economic system, based in fact on slave labor, could no longer provide economic growth. Introduced two completely new political models of Soviet and American — has demonstrated a much greater production efficiency, because they were organized on different principles: not for private family capitalism, and the power of large transnational corporations with centralized structures of economic regulation and limitless monetary emission using Fiat currency (paper or electronic means — approx. ed.). They enabled mass production of products much more efficiently than the control systems of the colonial empires of the nineteenth century.
The emergence of social states in the USSR and the United States with centralized management systems made it possible to make a sharp leap in their economic development; In Europe, the corporate governance system was formed, unfortunately, according to the Nazi model in Germany, and also not without the help of British intelligence. Hitler, backed by British intelligence agencies and American capital, quickly deployed a centralized corporate governance system in Germany, which allowed the Third Reich to quickly take over all of Europe. With God’s help, we defeated this German (or rather, European — taking into account today’s realities) fascism. After that, two models remained in the world, which I refer to as the imperial world economic order: the Soviet and the Western (with the center in the United States). After the collapse of the Soviet Union, which failed to withstand global competition due to the fact that the directive management system was not flexible enough to meet the needs of technological progress, the United States for a while seized global dominance.
— But now this period of “American unipolar loneliness” is already passing, and probably not only thanks to Russia, but first of all to China and the Asian regions as such. Isn’t that right?
— Indeed, the hierarchical vertical structures characteristic of the imperial world economic system turned out to be too rigid to ensure continuous innovation processes and lost their comparative effectiveness in ensuring the growth of the world economy. On its periphery, a new world economic order has been formed, based on flexible management models, a network organization of production, where the state works as an integrator, combining the interests of various social groups around achieving one goal — raising public welfare. The most impressive example of such an integrated world economy today is China, which has been three times faster than the growth rate of the American economy for more than 30 years. At the moment, China already surpasses the United States in terms of output, exports of high-tech goods, and growth rates.
Another example of the model of the new world economic order, which we called integral (due to the fact that the state in it unites all social groups that differ in their interests), is India. It has a different political system, but it also has the primacy of public interests over private interests, and the State seeks to maximize growth rates in order to combat poverty. In this sense, the new world economic order is ideologically socialist. At the same time, it uses market mechanisms of competition, which makes it possible to ensure the highest concentration of resources for the technological revolution in order to ensure economic leaps based on a new advanced technological order. If we look at the growth rate since 1995, the Chinese economy has grown 10-fold, while the American economy has grown only 15 percent. Thus, it is already obvious to everyone that the pace of global economic development is currently shifting to Asia: China, India and Indochina countries already produce more products than the United States and the European Union. If we add Japan or Korea, where the management system is similar in its principles of integrating society around the goal of improving public welfare, we can say that today this new world economic order already dominates the world, and the center of reproduction of the world economy has moved to Southeast Asia. Of course, the American ruling elite cannot agree with this.
“Put up with it, I’d say…
– yes. They, like the British Empire once did, seek to maintain their hegemony in the world. The events taking place today are a manifestation of how the financial and power oligarchic elite of the United States is trying to maintain world domination. It can be said that for the past 15 years, it has been waging a global hybrid war, seeking to chaotize countries beyond its control and restrain the development of the PRC. But due to the already archaic management system, they cannot do this. The financial crisis of 2008 was such a transitional moment when the life cycle of the outgoing technological order actually ended and the process of mass redistribution of capital to a new technological order began, the core of which is a complex of nanobioengineering and information communication technologies. All countries started pumping money into their economies. The simplest thing a modern state can do is to give all businesses access to cheap long-term money so that they can adopt new technologies. But if in America and Europe such funds were spent mainly in financial bubbles and provided budget deficits, then in China this huge monetary issue was completely directed to the growth of production and the development of new technologies. There were no financial bubbles, while the ultra-high monetization of the Chinese economy did not lead to inflation, the growth of the money supply was accompanied by an increase in the output of goods, the introduction of new advanced technologies and an increase in public welfare.
Today, economic competition has already led to the fact that the United States has lost its leadership. If you remember, Donald Trump tried to contain China’s development through a trade war, but nothing came of it.
“The Americans opened a biological war front by launching the coronavirus in China”
— Why not?” Did Trump, who is used to taking risks and going all-in, not have enough determination?
— And even Trump couldn’t do it, because China has a more efficient management system, which allows us to concentrate the available production resources as fully as possible. At the same time, effective money management keeps the money issue in the contour of expanded reproduction of the real sector of the economy, focusing on financing development investments. China has reached the highest savings rate of any country: about 45 percent of GDP is invested, compared to 20 percent in the United States or Russia. This, in fact, ensures the ultra-high growth rate of the Chinese economy.
In general, the United States was doomed to defeat in this trade war, because the Middle Kingdom can produce products more efficiently and finance development cheaper. The entire banking system in China is state — owned, it operates as a single development institution, directing cash flows to expand output and develop new technologies. In the United States, the money supply is used to finance the budget deficit and is reallocated to financial bubbles. As a result, the efficiency of the US financial and economic system is 20 percent-there only one in five dollars reaches the real sector, and in China almost 90 percent (that is, almost all the yuan created by the Central Bank of the PRC) feed the contours of expanding production and ensure ultra — high economic growth.
Trump’s attempts to limit China’s development through trade war methods have failed. At the same time, they boomeranged on the United States itself. Then the Americans opened a biological war front, launching the coronavirus into China, hoping that the Chinese leadership would not cope with this epidemic and chaos would arise in China. However, the epidemic has shown poor health care effectiveness and has created chaos in the United States itself. The Chinese management system has also shown much greater efficiency here. In China, the death rate is significantly lower, and they coped with the pandemic much faster. Already in 2020, they even reached economic growth of 2 percent, while in the United States there was a decline of 10 percent of GDP (analysts noted the largest drop since World War II–ed. ). Now the Chinese have regained growth rates of about 7 percent per year, and there is no doubt that China will continue to develop confidently, expanding the production of a new technological mode.
In parallel with the trade war against China, the US special services were preparing a war against Russia, since the Anglo-Saxon geopolitical tradition considers our country to be the main obstacle to the establishment of world domination by the power and financial elite of the United States and Great Britain. I must say that the war against the Russian Federation unfolded immediately after the annexation of Crimea and after the American special services organized a coup in Ukraine. They can be said to have tricked Russia into agreeing to the American occupation of Ukraine, considering it as a temporary phenomenon. However, the Americans took root in the Square, created not only strong points, raising Nazis under their wing, but also trained the Nazi armed forces, gave the Nazis the opportunity to get a military education, trained them in their academies, and “flashed” all the Armed Forces of Ukraine with them. And for 8 years, they prepared the Armed Forces of Ukraine to fight the only enemy-Russia. While the mass media, which is also completely controlled by the Americans in Ukraine, formed an image of the enemy in the public consciousness.
In addition, the United States used the currency and financial front of a hybrid war against the Russian Federation. Already in 2014, they imposed the first financial sanctions and knocked out a significant part of Western loans from the Russian economy. Now we are seeing the next phase, when they have effectively disconnected Russia from the global monetary and financial system, where they dominate. However, all this was predicted by me 10 years ago, based on the theory of changing world economic patterns and the specific logic of the US ruling elite, focused on world domination. Anglo-Saxon geopolitics is traditionally oriented against the Russian Empire and its successors, the USSR and the Russian Federation, because, since the time of the British Empire, Russia has been seen as the main opponent of the Anlo-Saxons. All the so-called geopolitical science that was written in London was reduced, in fact, to a set of recommendations on how to destroy Russia as the dominant force in Eurasia. I mean all sorts of speculative constructions like “countries of the sea against countries of the land” and so on.
— Why did Russia interfere with the “countries of the sea” so much? After all, geographically we have never bordered on the UK.
— In this regard, a formula was invented: whoever controls Eurasia controls the whole world. Actually, applied development has already gone further. Zbigniew Brzezinski’s famous theorem says that in order to defeat Russia as a superpower, you need to tear Ukraine away from it. All this political dogma, which, it would seem, has long gone down in history, is nevertheless reproduced today in the thinking of the American political elite. I must say that there are still courses in 19th-century geopolitics at Harvard and Yale University, sharpening the brains of future American politicians against Russia. So they, in fact, jumped on this old and time-tested Russophobic stream, which has always been characteristic of Anglo-Saxon geopolitics. And, considering Russia as the main opponent of its domination in the world, they used Ukraine as an outpost, or rather, as a tool for undermining Russia, weakening it, and in the future for destroying it as a sovereign state, in accordance with Brzezinski’s proposal.
So, what is happening today was easily predicted, based on a combination of long-term patterns of economic development, which actually condemned the world to a hybrid war, and the traditional Russophobia of the Anglo-Saxon political elite. After the weakening of the PRC did not turn out head-on through a trade war, the Americans transferred the main blow of their military and political power to Russia, which they see as a weak link in the global geopolitics and economy. In addition, the Anglo-Saxons seek to establish dominance over Russia in order to implement their eternal Russophobic ideas to destroy our country, and at the same time to weaken China, because the strategic alliance of the Russian Federation and the PRC is too tough for the United States. They have neither the economic nor military power to destroy us together, not separately, so the US initially sought to put us at odds with China. They didn’t succeed. But they, taking advantage of our, I would say, complacency, seized control of Ukraine, and today they are using our fraternal republic as a weapon of war to destroy Russia, and then-to seize control of our resources in order, I repeat, to strengthen their position and weaken the position of China. In general, all this is obvious, as twice two makes four.
“The Americans will not be able to win, just as the British did not succeed in their time”
— It’s probably obvious, but not for everyone. There are many opponents of an alliance with China among the Russian elite. At least before the special operation in Ukraine, it seemed to these people that American and Western culture were clearer and closer to us than Chinese hieroglyphic wisdom, and that we would always find a common language with our “Western partners”.
— You know, back in 2015 I wrote the book ” The Last World War. The United States starts and loses, ” which you mentioned at the beginning of the conversation — everything was thought out and justified there. The United States launched a global hybrid war-starting with the Orange revolutions – to disrupt those regions of the world that it did not control — in order to strengthen its position and weaken the position of its geopolitical competitors. After the famous Munich speech of President Putin (February 2007–ed. they realized that they had lost control of Yeltsin’s Russia, and they were seriously concerned. In 2008, the financial crisis broke out and it became clear that the transition to a new technological order was beginning, and the old world economic order and the old management system no longer provide for progressive economic development. China takes the lead. Well, then the logic of the world war unfolds, only not in the forms that existed 100 years ago, but on three conditional fronts — monetary and financial (where the United States still dominates the world), trade and economic (where they have already lost the primacy to China) and information and cognitive (where the Americans also have superior technologies). They are using all three fronts to try to hold the initiative and maintain the hegemony of their corporations.
And finally, the fourth front — the biological one, which opened with the appearance of the coronavirus from the US-China laboratory in Wuhan. Today we see that a whole network of biological laboratories existed in Ukraine. So the United States has long been preparing to open a biological front for world War II.
The fifth, and most obvious, front is, in fact, the front of military operations-as the last tool for forcing the states they control to obey them implicitly. Today, the situation on this front is also getting worse. In other words, active operations are underway on all five fronts of the global hybrid war and it is possible to predict the result. The Americans will not be able to win, just as the British did not succeed in their time. Although Britain formally won the Second World War, they lost politically and economically. The British lost their entire empire, more than 90 percent of their territory, and 95 percent of their population. Two years after the Second World War, where they were the victors, their empire collapsed like a house of cards, because the other two winners — the USSR and the United States — did not need this empire and considered it an anachronism. Similarly, the world will not need American multinational corporations, the US dollar, US currency and financial technologies and financial pyramids. All this will soon be a thing of the past. Southeast Asia will become an obvious leader in global economic development, and a new world economic order will be formed before our eyes.
— To paraphrase Remarque, we can say that changes have finally come to the western front. But what signs do you see of this powerful global system’s imminent demise?
— After the Americans first seized the Venezuelan foreign exchange reserves and handed them over to the opposition, then-the Afghan foreign exchange reserves, before that — the Iranian ones, and now — the Russian ones, it became absolutely clear that the dollar ceased to be the world currency. Following the Americans, this stupidity was also committed by Europeans — the euro and the pound ceased to be world currencies. Therefore, the old monetary and financial system is living out its last days. After the US dollars that no one needs are sent back to America from Asian countries, the collapse of the global monetary and financial system based on dollars and euros is inevitable. Leading countries are switching to national currencies, and the euro and dollar are no longer foreign exchange reserves.
— How do you see the world after the disappearance of the dollar monopoly?
— We are currently working on a draft international agreement on the introduction of a new world settlement currency, pegged to the national currencies of the participating countries and to exchange-traded goods that determine real values. We won’t need American and European banks. A new payment system based on modern digital technologies with a blockchain is developing in the world, where banks are losing their importance. Classical capitalism based on private banks is a thing of the past. International law is being restored. All key international relations, including the issue of world currency circulation, are beginning to be formed on the basis of contracts. At the same time, the importance of national sovereignty is being restored, because sovereign countries are coming to an agreement. Global economic cooperation is based on joint investments aimed at improving the well-being of peoples. Trade liberalization ceases to be a priority, national priorities are respected, and each state builds a system for protecting the internal market and its economic space that it considers necessary. In other words, the era of liberal globalization is over. Before our eyes, a new world economic order is being formed — an integral one, in which some states and private banks lose their private monopoly on the issue of money, on the use of military force, and so on.
“The third scenario is catastrophic. Destruction of humanity”
— And why did you name your book “The Last World War?” What makes you hope that this global war is really the last?
— I called this world war the last, because we see that there are several scenarios of movement out of today’s crisis. The first scenario, which I have already described, is a calm and prosperous one. It consists in overcoming the US monopoly. In order to do this in the financial sector, you need to abandon the dollar. In order to overcome the monopoly in the information and cognitive sphere, we need to isolate our information space from the American one and switch to our own information technologies. Creating their own contours of economic reproduction, but without the US dollar and euro, and relying on their information technologies for managing money, the countries of the new world economic order ensure high rates of economic development, while the Western world collapses. There is a situation of collapsing financial pyramids, disorganization and a growing economic crisis, aggravated by rising inflation due to uncontrolled money issuance over the past 12 years.
The second scenario of possible development of events is similar to the one that Hitler wanted to implement during the change of previous world economic structures. This is an attempt to create a world government with a superhuman ideology. If Hitler thought of the German nation as superhumans, then the current ideologists of world domination impose a transition to a post-humanoid state on humanity. In contrast to the posthumanism of the West, the core countries of the new world economic order are characterized by a socialist ideology, albeit with respect for private interests, protection of private property and the use of market mechanisms. In China, India, Japan, and Korea, socialist ideology — or rather, a mixture of socialist ideology, national interests, and market competition-dominates. It is this mixture that forms a fundamentally new power and political elite, focused on economic development and the growth of the welfare of nations.
Western politicians, intellectuals, and businessmen have a different approach. What we are seeing today is an attempt to create a certain image of a new world order with a world government at the head, where people are driven into an electronic concentration camp. You can see from the example of restrictions during the pandemic, how it happened: all people are given tags, access to public goods is regulated by QR codes, and everyone is forced to walk in formation. By the way, in the Rockefeller Foundation scenario back in 2009, the pandemic and, in fact, everything that happened in connection with it was laid out in a stunning way — they actually predicted the future. This scenario was called Lock Step, that is, “Walk in formation”, and the Western world followed it. By sacrificing their own democratic values, people are being forced to obey commands. International organizations, including the World Health Organization, are used as a kind of base for assembling a world government that would be subordinate to private capital.
But, I must say, Donald Trump strongly hindered these plans, because he stopped the signing of the transatlantic and trans-Pacific partnership agreements, where all countries participating in the treaties sacrificed national sovereignty in all disputes with big business. And you need to understand that today any multinational corporation can act as a foreign investor, including in the United States. According to these agreements, if foreign capital is present in a business, then in a dispute with the national government, an international arbitration court is formed, it is not clear how and by whom it was drawn up. And these unelected judges, appointed, in fact, by large international businesses, resolve these disputes. In fact, the point was that the state was losing all sovereignty in regulating relations with big business. However, Trump stopped the agreement — the United States did not sign it. Thus, the process of forming a world government was stopped. This is the second alternative, and it is currently experiencing a crisis due to the collapse of the idea of globalization and the gradual abandonment of “pandemic” restrictions.
We must understand that the world government option is incompatible with a sovereign Russia, with our independence and role in the world. In the globalist scenario, the Russian Federation is considered as a territory that is intended for exploitation by Western multinational corporations. At the same time, the” indigenous population ” should serve their interests. Under this scenario, Russia disappears as an independent entity, as does China. The Western world government may incorporate some of our oligarchs into its own version of the future, but only on the second and third roles.
The third scenario is catastrophic. The destruction of humanity…
— The apocalypse everyone’s talking about?”
— Well, not all of them… But everyone is definitely afraid. By the way, about American biolabs that synthesize dangerous viruses, it was said in another book of mine, published a little later: “The Plague of the XXI century: how to avoid disaster and overcome the crisis?”.
I remember that back in 1996, when I had to work in the UN Security Council, I proposed to develop a national biosecurity concept. Because even then, almost 30 years ago, genetics was a sufficiently advanced science to synthesize viruses directed against people of a certain race or a certain gender, a certain age. This has long been possible. You can create a virus that will work only against whites or, conversely, only against blacks, only against men or only against women. Now the Americans are going further — you can see that, according to the data of our Ministry of Defense, announced the day before, American biolabs were developing viruses aimed against the Slavs. Apparently, it is now possible to make a virus against some ethnic group that has its own genetic code.
What is happening in Ukraine today is an echo of the agony of the US ruling elite, which cannot accept that it will no longer be a world leader. This is becoming clear to everyone — at least to those who are not connected with Americans by their interests and are not subject to their cognitive influence.
Here is an example. When the United States imposed anti-Russian sanctions in 2014, I asked my Chinese colleagues: “Do you think the Americans can impose sanctions on China?” They were sure not. It was said that this was impossible, because the United States depends on China as much as China depends on the United States. That is, it will be more expensive for America. Two years later, Trump launched a trade war against China. And Beijing now understands that America is an enemy that will sink the Chinese economic miracle in any way possible. Before that, my Chinese colleagues were not very convinced by my arguments, just as my book mentioned by you did not greatly influence our political and economic elite. My arguments were dismissed. Although we have said for many, many years that the dollar should be abandoned. Foreign exchange reserves should have been removed from dollar-denominated instruments, from euro-denominated instruments to gold, they should have switched to their own currency and financial system, and developed their own settlements in national currencies with partners. We have been proposing all this since the noughties, when it was already clear what the global economic development was leading to. And only now, finally, everyone has seen the light.
“The Americans brainwashed the Ukrainians and turned 150-200 thousand people into a fighting machine that works without thinking”
— Judging by the heart-rending howl that comes from the camp of liberals, as well as the events in Ukraine, not everyone has seen the light yet.
— Yes, we are faced with the fact that the Americans have managed to fool the Ukrainian people so much in 8 years that the people who resist the Russian army, the so-called Armed Forces of Ukraine, look simply zombified. They are controlled like puppets. Not Zelensky commands the Ukrainian army, not even the Ministry of Defense of Ukraine and the General Staff, but the Pentagon. He commands very effectively from the point of view of fighting “to the last Ukrainian soldier”, because these zombie guys do not give up. But they are in an absolutely hopeless situation. All experts have already recognized that Russia won the military special operation, that Ukraine has no chance of resistance, that the entire military infrastructure has been destroyed… the APU can only surrender in order to minimize human losses. However, Ukrainian officers (and especially, of course, nationalists) act like externally controlled zombies-they follow instructions from the Pentagon, which are received on their personal computers and special tablets.
Moreover, the Americans command their puppets from the APU, breaking them into the appropriate units. Each unit is assigned a number, and each number is assigned tasks by artificial military intelligence every day. They really turned 150-200 thousand people into a fighting machine that works without thinking, only stupidly follows all their orders. For 8 years, they have managed to force a significant part of the youth of Ukraine not just to join the ranks against Russia, but by brainwashing them into their own weak-willed tools. Not just cannon fodder, but controlled cannon fodder.
Being in an absolutely hopeless situation, surrounded, deprived of any supplies at all, they still continue a senseless war, condemning themselves to death, and dragging the surrounding civilians with them to the grave. This is a good example of how American modern technologies work. We must understand that we are facing a very powerful force. You know, we have previously heard from Russian experts and politicians that the Ukrainians themselves will suffocate economically and then crawl to us and in general where Ukraine will go without us. After all, it will not be able to ensure the reproduction of the economy without our resources and cooperation with us. Indeed, Ukraine has entered a state of economic catastrophe, as we expected, as we explained to our Ukrainian colleagues. The Ukrainian Republic has become the poorest state in Europe, along with Moldova. Due to the fact that Ukraine has severed ties with Russia, its losses amount to more than $ 100 billion. Nevertheless, this did not prevent American and British political strategists and instructors from forming a 200-thousandth army of thugs and murderers who completely inadequately represent reality and are an obedient tool of American interests.
— Aren’t there equally obedient American puppets in Russia? Was it only Ukrainians who were zombified?
— Yes, and here it should be noted that almost the same thing is happening with the Central Bank, but only on other issues.
— Before we move on to the Central Bank, let me clarify. You said that you are working on introducing a new currency. And in what format and with what team?
— We have been doing this for quite a long time, as a group of scientists. 10 years ago, at the Astana Economic Forum, we presented the report “Towards Sustainable Growth through a Fair world economic order” with a draft transition to a new global financial and monetary system, where we proposed to reform the IMF system based on the so — called special drawing rights, and on the basis of the modified IMF system-to create a world settlement currency. This idea, by the way, aroused great interest at that time: our project was recognized as the best international economic project. But in a practical sense, none of the states represented by the official monetary authorities were interested in this project, although the publications of Nursultan Nazarbayev, who proposed a new currency, followed. I think he offered altyn.
– Altyn? It is interesting.
— Yes, his article on this topic was published even in Izvestia. But negotiations and political decisions were not reached, and to this day it is more of an expert proposal. But I am sure that the current situation forces us to create new payment and settlement instruments very quickly, because the dollar will be practically impossible to use, and the ruble cannot find stability due to the incompetent policy of the Central Bank, which, in fact, acts in the interests of international speculators.
Objectively, the ruble could become a reserve currency along with the yuan and the rupee. It would be possible to switch to a multi-currency system based on national currencies. But you still need some equivalent for pricing… We are currently working on the concept of the exchange space of the Eurasian Economic Union, where one of the tasks is to form new pricing criteria. That is, if we want metal prices to be formed not in London, but in Russia, just like oil prices, then this implies the emergence of some other currency, especially if we want to act not only within the Eurasian Economic Union, but in Eurasia in a broad sense, in the center of a new world economic order, to which I refer China, India, Indochina, Japan, Korea and Iran. These are big countries that all have their own strong national interests. After the current history of confiscation of dollar reserves, I don’t think any country will want to use another country’s currency as a reserve currency. So we need some new tool. And such a tool, from my point of view, can first become a certain synthetic settlement currency, which would be built as such an aggregated index.
– Can I get some examples? What is it?
— Well, let’s say the ecu-there was such an experience in the European Union. It was built as a basket of currencies. All countries that participate in the creation of a new settlement currency must be granted the right to have their national currency in this basket. And the common currency is formed as an index, as a weighted average component of these national currencies. Well, to this we must add, from my point of view, exchange-traded commodities: not only gold, but also oil, metal, grain, and water. A sort of commodity bundle, which, according to our estimates, should include about 20 products. They, in fact, form global price proportions and therefore must participate in the basket to form a new settlement currency. And we need an international treaty that will define the rules for the circulation of this currency and create an organization like the International Monetary fund. By the way, we proposed reforming the IMF 15 years ago, but now it is already obvious that the new monetary financial system will have to be built without the West. Perhaps one day Europe will join it and the United States will also be forced to recognize it. But it is still clear that we will have to build without them, for example, on the basis of the Shanghai Cooperation Organization. However, these are just expert developments that we will submit to the official bodies for consideration in the coming month.
— And at the level of the government or at the level of the president?
— We will first send it to the departments that are responsible for these issues. We will hold discussions, develop some common understanding, and then reach the political level.
“The central Bank continues its policy of pandering to the enemy”
— In your telegram channel, you write that all that remains is to nationalize the Bank of Russia. Why hasn’t it been completed yet? Here, for example, there is a point of view that Elvira Nabiullina remains in her post as a screen, but she will no longer manage anything serious. Can you refute or confirm this?
— You know, I don’t want to do conspiracy theory.
“Is this a conspiracy theory?”
— Yes, we can talk about the American deep state in conspiracy terms. In this case, conspiracy theory is a very appropriate line of thought, because in America, behind the screen of presidents and congressmen, there are some deep forces — special services. But in our Country, everything is simple. We have a president, a head of state, who has built a vertical of power. We absolutely understand how the parliament and the judicial system are formed. Here, in general, no conspiracy theory can be applied. The same goes for the Central Bank. Let me remind you that, according to the law on the Central Bank, all its property is federal property. Therefore, the Central Bank is a state structure, there is no doubt about it.
— And they always said that he was separated, as if on the sidelines.
— The Board of Directors of the Central Bank is appointed by the State Duma on the recommendation of the President. I have worked for many years as its representative in the National Banking Council, which oversees the activities of the Central Bank. I can say that there is no doubt that the Central Bank is the state body regulating monetary circulation, and it is also the main financial regulator in the country.
But there are nuances. The Constitution stipulates that the Central Bank conducts its policy independently, that is, it is independent of the government. But this does not mean that it is independent of the state. This is a government agency. Our judicial system is also officially independent of the government. Therefore, being an independent body, the Central Bank is nevertheless formed as a state regulatory body and must fulfill the tasks that are necessary for the development of our economy. To do this, it is necessary to involve the Central Bank in strategic planning. The classic theory of monetary circulation stipulates that the main goal of the monetary authorities, i.e. the Central Bank, should be to create conditions for maximizing investment. This is exactly what the banking system should do — maximize investment. Because the more investment, the more production, the higher the technical level, the lower the costs and lower the inflation, the more stable the economy. Macroeconomic stabilization in the modern economy can be achieved only on the basis of accelerated scientific and technological progress. Attempts to target inflation (such a buzzword), which the Central Bank has been practically imitating for the past 10 years, by manipulating the key interest rate against the background of the freely floating ruble exchange rate, are short — sighted, primitive and counterproductive. These measures are usually recommended by the IMF for underdeveloped countries that do not know how to think themselves.
What is inflation targeting in practice? This is an extremely primitive and internally contradictory set of measures, the application of which drives the economy into a stagflationary trap. The Central Bank threw the ruble into free floating, which is absurd from the point of view of targeting inflation in an open economy, where the exchange rate directly affects prices. And we see how the devaluation of the ruble periodically accelerates prices. In addition, they have reduced monetary policy to only one absolutely primitive tool — manipulation of the key interest rate. But the key rate is the percentage at which the Central Bank issues money to the economy and withdraws money from the economy. Its attempts to suppress inflation by raising the interest rate cannot succeed in the modern economy, because the higher the interest rate, the less credit, the less investment, the lower the technical level and competitiveness. A decline in the latter leads to a devaluation of the ruble in 3-4 years, after they raise the interest rate ostensibly to fight inflation. By letting the ruble exchange rate float freely, they essentially left it at the mercy of currency speculators.
Americans really like this policy, so they strongly praise the leadership of our Central Bank and the Ministry of Finance. After all, what is important to them? So that everything is pegged to the dollar, so that the ruble is a “junk” currency that is unstable. And this is a paradox, because the number of foreign exchange reserves of the Russian Federation has recently been 3 times more than the money supply in rubles! This means that the Central Bank could stabilize the exchange rate at any level. But he didn’t.
And who are the speculators to whom the Central Bank actually threw the ruble to the mercy? The main speculators are American hedge funds, which actually form the ruble exchange rate by manipulating the market. And the Central Bank does not notice this, or rather, it does not seem to notice. To keep them in the foreign exchange market by raising the interest rate, the Central Bank kills credit and makes our economy dependent on foreign sources of credit, and the foreign exchange financial system-dependent on the interests of speculators. It is in whose interests the Central Bank is working, hiding behind buzzwords like “inflation targeting”, which has shamefully failed in recent years in terms of real price dynamics. So we have the weakest point of the entire national security system in general — this is the Central Bank. His leadership is overwhelmed by the enemy’s cognitive weapons, in other words, zombified by them. In fact, our monetary authorities are doing what the enemy needs.
By the way, I proved mathematically and chronologically that the first wave of sanctions was imposed against Russia only after the Central Bank prepared the ground for this, namely, it let the ruble exchange rate float freely and announced that it would raise the interest rate if inflation started in the country. As soon as the Central Bank adopted this strange policy, the Americans immediately imposed sanctions. Their speculators ensured the collapse of the ruble exchange rate, which caused an inflationary wave, and the Central Bank, on the instructions of the IMF, raised the interest rate, which completely paralyzed our economy. The total damage caused by this policy has already reached 50 trillion rubles of unproduced products and approximately 20 trillion rubles of undeveloped investments. Now we need to add to this the $ 300 billion invested in foreign assets that are currently frozen — that’s the damage.
Therefore, when we talk about nationalizing the Central Bank, we are not talking about formally nationalizing it (it is already nationalized), but about bringing it into a policy that is consistent with national interests. Now his policy is contrary to the national interests. And there is no conspiracy theory here. We can see in whose interests such a policy is being implemented. The central bank raised the interest rate to 20 percent, giving bankers a dominant position in the economy. Having the most expensive and scarce resource, money, they determine which enterprise will survive, and which enterprise will die, go bankrupt, and so on. Rising interest rates make the entire Russian economy a hostage to a handful of bankers. This is the first one. Second, the Central Bank’s management allowed another collapse of the ruble exchange rate and closed the currency exchange. As a result, today banks have become the main currency speculators: they buy foreign currency for about 90 rubles per dollar, and sell it for 125 rubles. The difference settles for them as a super-profit.
— But why does the Central Bank of the Russian Federation, in your opinion, pursue a policy in the interests of the enemy?
— As I said, he does this on the recommendation of the International Monetary Fund. But his interests are also shared by our large banks, which objectively like this policy, as well as our currency and financial structures, which are also involved in manipulating the ruble exchange rate. Therefore, an influential lobby is formed around this policy, which supports this policy based on its private interests. These interests run counter to the interests of the country, they are directly opposite to them. And if you look at what the Central Bank is doing today, I have no doubt that it is continuing its policy of pandering to the enemy. It undermines macroeconomic stability by allowing international speculators to manipulate the ruble exchange rate and does not control the currency position of banks that have become currency speculators, although the Central Bank could easily withdraw banks from the foreign exchange market by fixing their currency position, prohibiting banks from buying currency. And secondly, by raising the interest rate, the Central Bank actually killed investments in the development of the Russian economy, which are very much needed right now, primarily for import substitution and for restoring economic sovereignty, while our leadership says that we should not be afraid of sanctions, because they create conditions for economic growth, for import substitution…
Look, about a third of the EU’s imports have left our market. These are huge opportunities for import substitution. If we assume that our enterprises will start developing these markets, then we will develop at a rate of 15 percent per year. But this requires loans. Import substitution cannot occur without credits. We need loans to set up production facilities, develop new technologies, and load idle production facilities. We have long developed such a strategy of advanced development at the Academy of Sciences, and we are promoting it. But, unfortunately, the Central Bank’s crazy policy, from our point of view, has quite specific influential structures that like it and they support it. That is why this policy is so stable.
“You can stabilize the ruble in three days”
– Sergey Yuryevich, if this is not a conspiracy theory, then why does the Central Bank continue to pursue such a policy? Only based on the interests of lobbyists?
– To whom the war, and to whom the mother is native. Commercial banks make a 40% profit on currency speculation. Bought for 90 rubles per dollar-sold for 125. 35 rubles — nothing easy! As a result, we are experiencing inflation, imports are becoming more expensive, and everyone sees this crazy exchange rate. Prices for all goods are rising, but banks are making super-profits.
Once again, a very influential lobby has formed around this policy, and for many people to admit the failure of such a strategy means, in fact, admitting their incompetence and even sabotage. And speculators with large banks are quite influential structures in our country that influence decision-making.
— Well, what if the first person does not get this information, it is blocked?
— When I was an adviser, I brought this information to you.
— Did they listen to you?
— Yes, there were discussions, discussed at the economic council, then it was closed so as not to annoy the officials. I don’t want to comment on it now. We see today that if we do not change monetary policy, it will be impossible for us to survive in this hybrid war. We need to counter economic sanctions now with a serious increase in domestic production. There are production facilities for this, people, raw materials, brains — too, but there is no money. Right now, the simplest thing that the state can give people is money.
— What’s your feeling?” Is there any understanding at the top?
— I think that you need to address this question directly to them.
— But many people call you almost the No. 1 person in the current situation — a public figure who can save Russia.
– Thank you for this review. I try my best.
— I just want to understand: if there was no prophet in our Homeland before, is there one now? Is this a temporary situation with the Central Bank?
— It is so prolonged, I would say, for 30 years. If we carried out a competent monetary policy in accordance with the requirements of the new world economic order, the integrated system, we would develop like China — by 10 percent a year. There were such opportunities. And we have been practically marking time for these 30 years. So it’s not even a question of whether they are listening or not, you just need to look objectively and see how China and India are developing and how we are developing. What prevented us from developing in the same way?
Moreover, the management system of the new world economic order, which I describe in my books, is universal. It worked successfully in Japan until the Americans disrupted Japanese economic growth. And even in Ethiopia, where they also began to form this management model (and achieved growth several times). In other words, this universal management model of the modern economy, focused on the growth of public welfare through investment in a new technological order, needs to be implemented. At the same time, of course, the targeted use of money implies high responsibility. Throwing money from a helicopter is not our thing.
“Not our way.
— We are talking about a targeted credit issue based on modern digital tools with a strict control system focused on investment in new technologies. We know how to do this, how to minimize the human factor by introducing digital technologies, including the digital ruble. But this is not profitable for those who still adhere to the previous strategies. They made a cash cow out of Russia, and they sucked $ 100 billion out of it to offshore companies. But now the Americans have closed offshorization for us. There is a real chance, we must use it.
— What would you advise people to do? Now the main query in Internet search engines is where to invest money in the era of turbulence. What should people do?
— First of all, do not make any sudden movements, I would say so. In any case, what exactly is not necessary — to run for dollars or euros. Because we don’t know what will happen to these currencies next. If our system is disconnected from the western one, then our banks cannot effectively invest dollars and euros anywhere, except in currency speculation. But I hope that our authorities will still curb the foreign exchange market.
In this context, what the banks did, raising the interest rate on foreign currency deposits sharply, turned out to be a clear overkill, which spurred panic. I think the ruble will stabilize if, of course, speculators are removed from the foreign exchange market and the currency is sold only to importers and people who transfer money abroad within reasonable limits to relatives or are going on a business trip according to the regulations. Otherwise, block the channels of currency leakage. Then the currency inflow will return to normal.
You know, we have a very positive trade balance. Mandatory sale of 80% of foreign currency earnings has been introduced. If you sell this revenue on the stock exchange, the volume of currency will be more than importers need. We will have a surplus of currency. This means that the ruble exchange rate will strengthen, that is, it will return to the old indicators-80 or even 70 rubles per dollar. But until the Central Bank removes speculators from the market and allows commercial banks to become such, the ruble exchange rate will not stabilize. So, unfortunately, the monetary authorities have not yet come to their senses and have not begun to implement the correct policy of macroeconomic stabilization, and I can’t give any advice other than how to invest in gold if possible (especially since the government has removed VAT from gold). There are no other real assets and safe havens.
“So you want to buy gold?”
– Buy basic necessities. Or invest in real estate, in something reliable. As for investing in dollars and euros… They have already ceased to be a currency for us. This is no longer a currency, but some obligations of other countries that may or may not be fulfilled. So we need to look for other opportunities. But I would like to emphasize once again that with the right policy, we can very quickly stabilize the ruble and even restore its purchasing power.
— And in what perspective, after all?
— It can be done tomorrow, you know? The Primakov and Gerashchenko governments did it in one week.
— Can the government do that?”
“Of course it can. To do this, in general, you need to make two decisions: fix the currency position of commercial banks and introduce currency sale standards for non-trading operations, and keep the freely convertible foreign exchange market only for trading operations. That’s all. You can write this in 15 minutes and announce it within a day, or enter it within three days, and the ruble will stabilize.
Thank you Saker for posting this. Great insights! He seems to be a man who is spiritually enlightened.
Yes. But as the interviewer commented, it’s hard to be a prophet in one’s own land… Still, one hopes the current shock will suffice to jolt the country into pushing aside these “officials” that everyone is so afraid on “annoying.”
Isn’t it amazing that anyone in Russia should still be listening to “IMF recommendations?”
So a Russian economic visionary articulates a viable solution to stabilize the ruble and the politicos in the State Duma have not studied or embraced it. Perhaps Mr. Glazyev needs a public relations manager or provide an interview with a Russian TV broadcaster and draw on a whiteboard some examples of how it would work to get the attention of those in power.
What did Christ say about this?
“A prophet is not without honour, save in his own country, and in his own house.”
And he did not many mighty works there because of their unbelief. (Matthew 13:57-58 KJV 1611)
We must recognize that all the international institutions created after World war II were designed to work for the empire. So, whatever way we want to accommodate them it’s not going to work. We should ask this question “Will Jesus (Peace be on him), when he returns, co-operate and work with these institutions?”
But ending currency speculation is “antisemitic.” Because only one tribe engages in it.
Who promote antisemitism as a strategy? Most will think Israel … while it is freemason … by their own words.
All these western-made rules, laws, regulations, institutions and talking clubs were created for the sole purpose of subordinating the rest of the world under their boot. These entities were all a means of exploiting and robbing the world. Now, this has become obvious. Therefore, neither Russia, or anyone else who cares about independent development has any obligation to follow western dictat. The thieves have exposed themselves. Whoever from now on still stays in these organizations and takes their advice, is ruining the world and is an adversary.
I have spent over 1 hour reading three quarters of this, and it is totally brilliant, but who I ask is Sergey Glazyev?
He claims to be an advisor to President Putin, and I have no reason to believe he is not.
Sergey Glazyev was after his job in 2004. Of course there is nothing wrong with that, and indicates, there may be some level of democracy amongst the “elites” – a word I personally find offensive – in Russia. Also judging from the source I found his words from 2004, I suspect he was then a massive fan of American neocons such as Madeline Albright. Such people tend to appear in the same publications.
But anyone of high intelligence, and sufficiently motivated, should be able to “rise to the top”, but it seems to me, regardless of country, being top dog, is pretty much a closed shop. They all p1ss in the same pot.
“Why I Am Challenging Putin
Mar 10, 2004
Russia is living through the deepest, most prolonged crisis in modern history. It is a man-made crisis that has struck every sphere of society and the state. This crisis is not a natural disaster but one engineered by the choice of a false doctrine of reform, one that is leading the country to degradation.
Few people believe in the Putin regime’s ability to achieve serious change. The corruption and inefficiency of the state apparatus and the government’s incompetence and inertia leave no hope for a real improvement in living standards. Instead of the state being strengthened, it is being reborn as a police-bureaucratic apparatus to suppress social protest, extort bribes, and assure political repression.
I am running for president in order to cleanse the state apparatus of corruption and bureaucratic arbitrariness and to summon competent and responsible people into state service. Russia cannot withstand another four years of plunder and destruction.
I am running so as to implement a real program to rebuild the economy. The current regime will not implement such a program and will continue to serve the oligarchic clans that have grown fat by plundering state property. Putin’s corrupt and irresponsible regime has become part of the system of oligarchic parasitism, with its pathologically unjust distribution of incomes and property.
The current regime is ignoring an immutable law of governance: a state’s effectiveness is indivisible from its responsibility for social justice. By abandoning this responsibility, today’s state has become not only ineffective but dangerous.
The impoverishment of great masses of the population has destroyed the structures of civil society, giving rise to a “civilization of slums.” Roughly half of Russia’s population, primarily children, is not getting enough to eat. Child neglect and homelessness are growing. Towns and villages are swamped by violence and banditry.
Poverty, psychological stress, and the collapse of health care have led to an anomalously high death rate, a mass decrease in health, and the wasting of colossal labor resources. Many people cannot buy the most basic medicines and have no access to modern medical services. The prospects for modernizing or even preserving the national health care system are shrinking with every year.
I am running in the election in order to guarantee everyone living in our country, which is the richest in the world, the constitutional right to a decent life and to develop freely.
In order to do this, we must take back as state revenue the profits from the exploitation of our natural wealth, double the budget, and guarantee everyone’s real right to free education and healthcare.
The “reforms” that have been conducted over the last 15 years have denied a large proportion of the work-fit population, primarily young people, of jobs and the right to a decent life. But they are the backbone of our country. Continuing on the current path will only destroy the nation’s workers.
Implementing our program of social justice and economic growth will allow wages to be doubled in the course of a year by bringing them into line with labor’s contribution to the national income, expanding workers’ rights to stand up for their interests, and increasing the minimum wage by three times. Real wages should grow fourfold by 2010; pensions must also grow accordingly. …”
He is now.
Every move one sees with EAEU, currency, economics is straight Glazyev.
This article is beyond anything from other economists reported here (including Michael Hudson).
Which Chubais jumping ship, a dam broke….
Caro amigo se vc pensa que na esfera privada não existe corrupção, vc se engana profundamente fique certo onde tem dinheiro tem corrupção, esse discurso pró America e anti-corrupção não cola mais. Vimos grandes empresas praticando todo tipo de corrupção mundo a fora que fica até comigo vc falar isso. As Empresas públicas são de interesse do cidadãs e do interesse do Estado compreende.
Dear friend if you think that in the private sphere there is no corruption, you are deeply mistaken be sure where there is money there is corruption, this pro-America and anti-corruption speech no longer glue. We have seen large companies practicing all kinds of corruption outside the world that is up to me you talk about it. Public Enterprises are of interest to the citizens and the interest of the state comprises.
I hear the echoes of a great economist in the words of Mr. Glazyev. There is good reason for this and I am fortunate to have first hand experience as a long time political associate of Mr. Glazyev’s American mentor. Just to paraphrase, statements like ‘rapid introduction of new technology facilitated by directed investments through financing at low interest rates’ and the ‘goal of the emerging new financial system is to improve the welfare of the people’. These are the exact concepts that I have publicly promoted through my participation in politics for most of my adult life.
I am sure to cause a stir by stating the name of the “father” of these concepts because the US news media canceled this person at every turn while he was alive. I personally experienced cancelation as I worked to bring into practice a new economic model based on the divine nature of man, created in the Image of God.
I have followed Mr. Glazyev’s activities over the years from the point of his first interactions with American economist Lyndon H. LaRouche. I don’t want to cause Mr. Glazyev any grief by calling on him to acknowledge Mr. LaRouche’s influence, as the character assassination of LaRouche was quite thorough I’m sure even in Russia. But the joy of hearing the echoes of Mr. LaRouche’s policies in this interview compels me to say something,
As long as I am writing, and likely inviting a heavy artillery barrage of approbation by LaRouche haters, I will cover another angle of this unfolding attack strategy against Russia and China. I was discussing with my wife a relatively simple explanation that the West’s hostility is based on destroying the BRICS agreement and China’s One Belt One Road project. These operate outside of the Wall Street/London banking cartel and they don’t like being cut out of deals. They clearly recognize that the BRICS and OBOR models are fatal to their long-running criminal enterprise.
I pointed out to my wife that the OBOR of today came directly from what was first proposed to China by Mr. LaRouche as the Eurasian Landbridge and is also called the New Silk Road. It gives me great satisfaction to see Mr. LaRouche’s ideas continue beyond his mortal existence. If the Wall Street/London mob doesn’t destroy the world out of spite, he will have brought humankind closer to the Age of Reason.
An enlightning comment. I never understood why LaRouche publications was the publishing house to translate Glazyev’s only book in english Genocide: Russia & new world order.
Do you know more about LaRouche connexion?
Thanks for the reply. I remember the publishing of Glazyev’s book. He offered solutions to the demographic disaster facing Russia after the West’s looting of the economy.
I know a lot, but not as much as my political associates. This commenting forum is new to me, so I’m not sure how to redirect your query to more knowledgeable sources.
You could try some Internet searches using New Federalist, Executive Intellligence Review, or EIR, with Glazyev in the search terms. The book was likely published by American System Publications in Virginia.
Again, thank you for noticing my comment. It means a lot to know that my friends have had some success at getting the word out to even one person.
Send questions to Harley Schlanger at : https://laroucheorganization.com/presenter/harley-schlanger
He usually answers on the daily podcast.
The very same legal assassin that tried to destroy President Trump, Mr. Mueller, practiced on LaRouche, for the very same reason. LaRouche must be exonerated, it is the reason the USA is under a tyranny.
LaRouche proposed the SDI that President Regan announced, surprising Henry Kissinger in 1983. Andropov refused, dooming the USSR economy with 5 years. We still live under a nuclear threat without SDI – prompting immediate action in Ukraine when Zelensky at the Feb. 2022 MSC announced the intention to acquire nukes.
Glazyev references technological innovation all thru the article – obviously aware off the Andropov faction’s failure.
Been at Schiller Institute Conferences where Glazyeev spoke, also Menshikov.
This is physical economics at it best with Russian characteristics, as is China’s Belt And Road with China characteristics.
Here we go – now only if the USA remembered Alexander Hamilton, Henry Carey, physical economics with American characteristics, and Gilpin’s original world landbridge :
William Gilpin and the Original World Landbridge Project – the Canadian patriot
Thinking of SDI – new physical principles to make nukes obsolete, it is high time to activate this!
Thank you bonbon! Those links are a great start. Mr. Schlanger is one of the few left who understand Mr. LaRouche’s thinking process.
I must say that I’m pleased with the reaction to my original comment.
The FT reports, according to four people briefed on the discussions, Russia is no longer requesting Ukraine be “denazified” and is prepared to let Kyiv join the European Union if it remains militarily non-aligned as part of ongoing ceasefire negotiations.
The draft ceasefire document does not contain any discussion of three of Russia’s initial core demands – “denazification”, “demilitarisation”, and legal protection for the Russian language in Ukraine – the people added.
And the market seems to be happy that the nazis can stay?
(The FT is a Western MSM newspaper……..Please take care with your sources. Mod.)
” giving bankers a dominant position in the economy. Having the most expensive and scarce resource, money, they determine which enterprise will survive, and which enterprise will die, go bankrupt, and so on.”
But If, instead, it is the state who is doing the same thing, then everything would run smoothly.
Because, of course, they know better!
“At the same time, of course, the targeted use of money implies high responsibility. ”
Promise! They will never throw money at a money losing company because it is “too big, to fail” or to avoid a political backlash.
” introduce currency sale standards for non-trading operations, and keep the freely convertible foreign exchange market only for trading operations.”
This is what we have in Algeria.
Companies buy their imports at the official rate, then sell them to the retail at the blackmarket rate.
That was an excellent read Thankyou !
– With God’s help, we defeated this German (or rather, European — taking into account today’s realities) fascism
I doubt that.
The allied were the big fascists.
1. Targeting civilian Germans
2. 700 slave camps in postwar UK
3. Another genocide in Japan
4. And another genocide in Korea
5. And another genocide in Vietnam
The century started with a genocide in Philipinnes
I try to like Glazyev…I really do but….how can he compare the Chinese economy, with the large manufacturing base which is labour intensive, with Russian commodities economy, which is capital intensive?
The only way to achieve a fixed exchange rate and stable interest rates, (which is what he is advocating)is to introduce capital controls.
Clearly, this is not what Putin wanted as he needed foreign capital to modernise Russia’s energy sector. Compare Russia to Venezuela or Argentina, who have under-invested in their energy sectors and are now unable to export or even meet domestic demand…
Going forward, capital controls might be a good idea..but trashing Kremlin and CB economic policy during the past few decades is not really justified.
Yes it is justified.
An apply that trashing to WallStreet/City of London to the power of 42!
Great suggestion from pro-Russian site of Telegram:
Colleagues have a very good idea regarding the incentive measures of Scholz and other European leaders regarding the transfer of gas payments to Russian rubles, otherwise they have somehow lost touch with reality:
“It is time for the President of the Russian Federation to sign a Decree recognizing the freezing of the Central Bank’s gold and foreign exchange reserves as force majeure, which will give legal grounds for Gazprom and other companies to refuse to execute old contracts in dollars and euros.
And while new contracts are being negotiated, Gazprom will supply gas at the request of consumers at spot prices paid in rubles (now it is about 1,200,000 rubles/thousand cubic meters).”
But isn’t this already happening as of March 31st?
What a time to be alive! Nothing like this has happened before. The US controls all the levers of the international fiat $ system and the World uses the fiat $ as its reserve currency… but never before has the World’s reserve currency been a fiat currency. Every previous reserve currency could be held in gold and silver.
The US has now weaponised the fiat $… it shouldn’t have done, because the fiat $ is the World’s reserve currency… but it has and that is the end of the fiat $’s reserve currency status. It is already over. There will never be a way back. Everybody has seen that the US will stop the free transfer of fiat $s, which makes the fiat $ useless as a reserve currency.
The entire global fiat system just died but the full ramifications of this have yet to be seen. It won’t take long.
Fiat currencies are created by edict of sovereign governments without incurring debt to private banks. This is what China does via its government owned central bank.
The US operates a debt based currency created by private banks such as Wells Fargo, Citibank, Bank of American, JP Mprgan Chase ex nihilo every time they make a loan such that no debts = no money.
If all the debts were paid down there would be no money.
Extremely good advise from a pro-Russian Ukrainian channel:
Fortunately or unfortunately, the impact of television on a large part of the population has an amazing power. That is why I always insistently say that in the liberated territories it is urgent to launch Russian television and turn off Ukrainian television.
Sergey Markov (https://t.me/logikamarkova/1869) writes:
Personal impressions from a brotherly country. I have a friend in Moscow, she has a sister in Energodar, Zaporozhye region.
1. Before the 2014 coup d’état, everything was fine.
2. After 2014, my sister began to scold Russia more and more.
3. After the start of the special operation for denazification in Ukraine, my sister began to hate Russia fiercely.
4. After the entry of the Russian army into Energodar without fighting, the sister continued to scold Russia very strongly.
5. But a week ago, Ukrainian TV was turned off in Energodar. And it was literally magical. My sister started talking again. It’s like the drugs have stopped working.
6. And they haven’t turned on Russia’s TV yet! They just show movies.
7. I am sure that when Russian TV is turned on, then in a few months peace in the family will be restored. And the sister admits that Bandera are scoundrels, that Zelensky is a bastard, and Putin did the right thing by sending the Russian army to liberate Ukraine from Bandera.
Public consciousness in Ukraine is very flexible and can be quickly changed. But you need to immediately turn on Russian TV in the liberated territories! Immediately.
And more good advise from Col Cassad :
I categorically object to the indiscriminate distribution of free humanitarian aid to everyone. Distribute only to those in dire need. The rest need to be given a job and paid money for it.
The sooner civil military administrations begin to work, which will be able to cut tasks and organize work to restore the destroyed infrastructure, to organize peaceful life, the better.
It is necessary, if possible, to remove unnecessary barriers between Russia and the liberated territory. Otherwise, you will not be able to start a business in the liberated territories.
It is impossible to support the entire population of Ukraine at the expense of Russia. It is necessary to quickly establish a peaceful life, so that people can work and earn money themselves.
Omg, talk about scope, and very thoroughly and clearly explained! Thanks for this.
Smartest man in the room by a long sea mile
Whatever shortcomings remain in the Russian banking system, they will be corrected by necessity of the situation. They will have to be. And then we shall see a general improvement.
” And the common currency is formed as an index, as a weighted average component of these national currencies. Well, to this we must add, from my point of view, exchange-traded commodities: not only gold, but also oil, metal, grain, and water. A sort of commodity bundle, which, according to our estimates, should include about 20 products. ”
A synthetic common currency is not needed. With free floating currencies, arbitrage will immediately equalize currency pairs and null out any discontinuities. A country’s true monetary wealth reserve is the physical gold sitting in their vault, no need to keep pretending holding another country’s issued digits is a meaningful reserve. This will become clear with eventual failure of the bullion bank paper gold trading, and untethered physical gold price discovery.
Sergey Glazyev and Michael Hudson should be declared assets of human collective!
Thanks Andrei, for waging war on the economic orthodoxy.
The IMF stabilization template: Free float the exchange rate, which drives inflation up, then to combat inflation, raise interest rate to double digits (which destroys local production through increase in cost of production and lack of access to credit-at double digits govt securities yield risk free high return), is a recipe of disaster and a measure to artificially inflate cost of production in efficiebt countries high to choke competition to facilitate incompetitive empire of lies.
Its systematically being done in many countries and new template for 2020’s. Like 1960’s template of opening capital accounts. Imposed on countries who cannot think for themselves. Brilliantly highlighted by Sergei.
You should fix this bit in the Google Translate:
“— Well, what if the first person does not get this information, it is blocked?
— When I was an adviser, I brought this information to you.
— Did they listen to you?”
The “first person” is of course Putin. And the Russian text does not use pronouns here, so Glazyev does not say “to you” or “they”. It’s written impersonally.
My understanding of the above article is: Russia can win the war on the West ( with Ukraine as a western proxy ) but if it loses the economic war then nothing will change, that is the West can still bankrupt Russia and limit its economic development as it has done for all these years. Even the village idiot now knows, thanks to the article, that if nothing is done to fix the Central Bank problem described above then the US will manage to achieve its goal and neutralize Russia by preventing it from becoming a strong economic power.
Russia needs to win the war against the external enemies but also the war on the internal enemies.
Oh my dear,
Economics and monetary policy are not your area of expertise, obviously…
But the guys reading this piece of propaganda will believe all the fantasy, since they probably have no Economics degree and are willing to believe anything anti-american.
The US is a very problematic country, with plenty to dislike. Why invent fantasy stories about the demise of the dollar and so on?
Do you understand why the US has the world currency? Better, do you understand why China (or any other country) doesn’t want to have its own currency as the world currency? Well, the simple answer: it’s very costly, basically in terms of jobs.
Just a reminder: Elvira Nabiulina is extremely close to Putin, and has been part of his team for more than 25 years, so please cut the BS about her being a foreign agent…my goodness!!
The US has been excellent at infesting the economics departments of South America, Indonesia etc. with neoliberal troglodytes, same with Russia during the 1990s. Putin has been very slow on the uptake that neoliberalism is not the way to go, and some of the actions now taken seem to show that at last he is moving away from these self-defeating tactics.
With Putin’s new turn toward the economic light I think that her role will be diminished. I feel that Putin’s mind was as much captured as hers was with respect to the financiers point of view, now thankfully that is changing. Far too late.
And please cut your crass arrogance and publish your name and academic and professional credentials before attacking others. Mine is Roger Boyd and I have an MBA in Finance and an MA in Economics as well as working in finance for over 20 years.
Mod: to all involved in this exchange of ideas, please let’s keep the conversation civilized. Any personal attacks will be suppressed.
I would estimate 100s of thousands of Americans who passionately wish to relocate/emigrate to Russia right now. How can they do that? Given fixed incomes, how can Americans convert dollars to rubles?