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четверг, 14 января 2010 г.

The mixture as before, or again twenty-five

 Rising prices of basic foodstuffs has galvanized public in the country, power, party leaders, politicians of different ranks and there are reasons that do not fit into pre-election passions and desires of various actors to take a plum job in the State Duma. Inflation for the first nine months of this year amounted to 7,5%. Obviously, the year-end it will be higher than the corresponding last year's 9%. Food prices rose, according to Rosstat, only the first week of October to 0.5%. More increase in prices of other foods. Milk has risen in price by seven percent, eggs - six, in some regions of Russia sunflower oil has risen in price by more than twenty per cent. As a result, price hikes, not nearly as much as it teaches us Rosstat (vegetable oil has risen in price from 30-35 to 70-75 rubles, or as that does not fit into 20wackoosnovnaya mass of Russia's poorest become even poorer, and all their attempts to escape from vicious circle of poverty once again, one movement "invisible" hand of the market, once again been dashed. Part of the post you want to hide
In the medium power again began the painful scapegoating, as it was after the increase in bread prices. The leader of the party "United Russia" Boris Gryzlov said the collusion of intermediaries in the supply of food, wanting to deflect criticism in the mainstream of economic activity and to remove suspicion from the ruling party, which he chaired. Alexei Gordeev, accused leaders of the ATP, strongly dismissed the charges and said that he hoped that those responsible be punished. Head of the Antimonopoly Committee of millions Artemev threatened fines. The government quickly organized a brainstorming session, and the ATP held a rally bodies, which the party itself called "protest perturbed customers." In "protest perturbed buyers" attended by more than five hundred supporters of the SPS, as well as party leaders Anton tanks, Boris Nemtsov, Boris Nadezhdin and Masha Gaidar.


But, significantly, and the government, resulting in a "brain" storming, and activists of ATP involved in the brainless action, come to one of "saving" a conclusion: the need to increase export duties on agricultural products and reduced tariffs on food imports. That's saviors!
Told Interfax Nemtsov, picketers "demanded zero import duties on food, primarily imported from Ukraine and the Baltic States," favored the introduction of a "protective duties on grain exports Russia" and called for the resignation of Agriculture Minister Alexei Gordeev and chief medical officer Gennady Onishchenko. A day later, the government, represented by the receiver Herman Gref, Minister of Economic Development and Trade Elvira Naibiullinoy, told the citizens of the results of brainstorming, and they are surprisingly coincided with the demands of activists of ATP.
Agriculture Minister Alexei Gordeev, defending himself against the attacks inveterate Democrat, said that his agency was not to blame for the sharp rise in food prices. According to the minister, real culprits are the reformers, "they put Russian consumers in the nineties to import the needle", ie those same Democrats are now storming the hypermarkets. This message Gordeev, part of the Supreme Council of United Russia, made at the founding congress of all-Russia agricultural employers' association.
As we see, passions ran high not humorous. And in this situation, really important to understand the reasons for the rise in food prices, not trying to blame everything on panicking grandparents that buy salt, as do mountain economists and political scientists. But first look at the explanations that we heard from the lips of responsible officials.
Chapter CBR Ignatiev explained in inflation rising costs of products: milk, butter, bread. Why are they becoming more expensive, Ignatiev decided not to explain. But monetary policy is not to blame, he said. And to take emergency measures to curb inflation Ignatiev does not intend to.
In the fight against inflation the Central Bank may, in particular, to increase the norm of compulsory reserve for banks (CDF) and the interest rates on deposits, said Lisovolik. But now it would worsen and so unimportant situation with liquidity, he notes. Priority Bank now - liquidity, rather than inflation. On Wednesday, he lowered the odds, and yesterday - the rate on currency swaps.
Inflation - not the worst compared to the potential problems of the banking system, said Chaikin: "Big difference between 8% and 10% [inflation] no. Really! What is the difference if you are robbed at 8 or 10%.? For successful lawyers, and perhaps not a difference. But for poor retirees significant difference. If you still consider that the pension they have not increased in line with inflation.
Forced reduction of inflation in the medium term, difficult, recognizes the Deputy Premier, Finance Minister Alexei Kudrin said in an article published today in the forthcoming issue of the economics. "
The main thing that hinders the fight against inflation - the duality of the tasks of the Central Bank: it is responsible for both inflation and the ruble exchange rate, complains Kudrin. And he Kudrin, who does not have long argued that the struggle with the strengthening of the ruble led to lower inflation, it is necessary to understand, works in the Ministry of Finance technicals! And does the policy of the Central Bank is not affected.
One, in his opinion, a way to stop the "perpetual motion" price growth - using the public trust to implement anti-inflation policy. " Where much more confidence?
"Central Bank this year managed to reduce the rate of building effective exchange rate appreciation - it will grow no more than 5%," - confirmed Ignatiev thought Kudrin. Well done! And apparently commodity tycoons will soon be rewarded Ignatiev and Kudrin Medal for faithful service.
Prime Minister Viktor Zubkov blamed the rise in food prices Economic Development and Trade, been underfinanced agriculture. "Many mistakes have been caused a by your predecessors", - he said the Minister Nabiullina. Over the past seven years, livestock production increased by 16%, while food imports - in 3,5 times.
Elvira Nabiullina has promised to develop a program of state support of agriculture and increase funding for farmers, and has issued an increase in exports and lower import duties on agricultural products.
In unison, the officials from the government, and also absolutely confident, sings CEO of the Institute for Agricultural Market Dmitry Rylko, - "In fact, more expensive food is not the fault of officials."
What are the real causes of the rapid growth of prices? A reason to mind, so that Ignatiev and Kudrin so hard to argue that monetary policy is not to blame. And two reasons. The first - a crisis of the global financial system, tied to the dollar, which Kudrin so lovingly put inside Russia, as it were, and not assuming that the crisis of American monetary policy is inevitable. It is possible that he did not know this. But here is what he wrote about the August financial crisis, Mikhail Khazin site km.ru.
 

    
"With total debt of the subject of the U.S. economy of 50 trillion dollars (which is only slightly less than the entire world GDP is around 60 trillion) and at 10% nd the growth rate of this debt, new debt obtained in no way secured. And 10% of 50 trillion - a 5 trillion. That is, the amount of debt this year increased by 5 trillion, representing about half of U.S. GDP. And what these 5 trillion provided? New created value? But the U.S. GDP is 70% of the services - which to secure the debt somehow did not take. And the products they create somewhere for two trillion - that is, more than half of new debts are not generally any security.
    
And in such a situation becomes clear picture of the August crisis in the financial markets in Europe and the United States: when the already inadequate secured debts (in this case, mortgages) have become even poorer because of the massive failures of their return, the holders of these debts are in the financial markets persona "notes grata." They are no one else wants to lend, since it is obvious that their ability to return the money to put it mildly, limited. But this situation is a downside. Someone is obviously excess liquidity, or, simply, cash in the account. This money should be somewhere to go, because inflation, accelerating all the time, nobody has canceled, and the money is, in most cases, not their own, and others. That is borrowed, which still must be repaid, for example, by paying interest to the depositor of the bank. Or paying the insurance compensation to the victims.

The second reason and it is defined - is an internal financial policy, which is clearly reflected in how to respond and the Ministry of Finance Central Bank of Russia in this crisis. They rushed to rescue banks by lowering the standard of compulsory reserve for banks (CDF) and the interest rates on deposits and provide them with the Stabilization Fund. Their priority, as they openly and say, not the living standards of millions of Russian citizens (what a difference 8 or 10% inflation), or some farmers, and hundreds of bankers. Read: "The priority of the Central Bank now - liquidity, rather than inflation."
In this regard, Michael Kazarin site "political indoctrination" wrote:

    
"Speech that the Bank of Russia, in their entirety," goof "because of incompetence (in Newspeak -" unprofessional "). Gained abroad foreign characters foreign to the value of "service" of our population. Instead of connecting their people with their families to him (the population of Russia) signs, they also accumulated, value. This, sweet for a fact, gone too far. For, even pliant and loyal representatives of the Central Bank, so timid and shy, but DOES NOT encourage them to do so.
    
Result? Changing the national economy (for the sea-ocean) revealed its deficiency ( "mortgage crisis"). Started "tidy" ... It took back the characters of your own people's welfare collective national. But ours is a home banker, while left - "stripped of everything". It turned out that he - not the financial genius of our collective national economy, as well ... but merely - a local branch of a stranger to us financial homeownership. And that is why he is doing "their" CBR not listen ...
    
And all this - even though that with the native citizen of his percentage of "fighting" usurious. Effective interest rate - from the "client" secret. "Debtor" at the same time, through the bailiff, a small room of his last dragged out. In short, do not trade money (= credit) in front of us all engaged.
    
But here, fortunately, we (or rather, not "we", but - they have!) Kudrin in the world available. After all, what, all of this, he said to our president? In fact, that for the continuation of usury GUISE "credit" of the national economy, ruble signs banks "now" - more than enough! (= "Interbank lending rate" ... "decreased to 6%). Celebration, therefore, continues ...
    
And this is - there's more!
    
The question is: Do A.Kudrina a ruble from the mass of the whole for this "holiday" appeared?
    
Look what exactly is the president on this issue from the chief financial officer of the country heard: "the demand to RUR" we (he, that is!) Satisfied because "to carry out these operations now allow exchange reserves." As you wish, but, even if the home minister, you own the economy, does not share with you our highly-professional "secrets", then ... That fact, the economy, then you have both of them, anyway - ONE! And how else can we understand his advice, given to the President of Russia, something that ... MONEY ON THESE (again!) PRINT ".

Here is the additional money supply, recycled, to save the bankers, and was the main cause of rising prices. The law of value no one has repealed. And this law inevitably puts everything in its place. The rising cost of goods and services monopolies laid for three years and provided billions in profits the owners of the monopolies, as well as financial and credit policy of the government, inevitably led to an increase in food prices. Because it Kudrin and screaming - not our fault ... we need more trust. God save us from those championing the public good!
Most of this predatory policy, forcing up energy prices and the depreciation of the ruble affected farmers who did not receive anything in return, and today they are again, the government, together with leaders from the ATP for not trying to degrade, reducing import duties. For the national agricultural competition gut, they cry, and demand lower duties on imported food, and for the banker is bad.
Naturally, there are objective reasons for price increases. How to crop failure and the replacement of wheat crops to commercial crops. But crop failures occur periodically and do not affect so much on price, so this is not the main factor.
             
Well, what do people expect from all this fuss and think "assaults? Nothing! Listen to what members of state government: "In the next two months we will try to stabilize prices." STABILIZED, and not reduced. It is done. Revenues and profits recorded. Now you have to reassure people.
Remember, as was the situation with higher prices for bread. Throughout the middle of July this year, government officials, experts and journalists discussed the rise in prices for bread, trying to find the extreme to raise prices, and how to deal with it. Sorted out! Bread prices were even higher.
If we look further, you can remember the excitement surrounding last year's prices. In August 2006, in connection with the sharp rise in housing prices and discontent of citizens, prosecutors agreed to intervene and put everything in places. Prosecutor's Office officials have suggested that to blame the builders entered into a conspiracy and suggested that the FAS test this version. Federal Antimonopoly Service (FAS) checked the housing market in Moscow, the Moscow region and St. Petersburg, and no collusion is not found. In fact everything was over.
And today there is no reason to think that the dismantling of the increase in food prices to end in some other way.


Ivan Tevrizsky

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