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

submitted to the Bank of Russia for approval'.[40]If you want to dismiss bankers through making amendments to the legislation – kindly submit the draft of the bill to them in advance. Otherwise, they might as well sue you for your legal mayhem in a court of Delaware…

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

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

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

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

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

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

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

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

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

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

      That is to say that the inflation rate was extraordinary, and the prices were skyrocketing exactly because the Central Bank credited the Russian economy at such an extortionate rate. And not vice versa! If the idea of borrowing money at a 210% rate does not appeal to you, may be you would like 55% more? Still no? Yet this was the base rate when Putin became the head of the country in 2000. And since then the percentage has been gradually reducing until it reached 7.5% of today. The economy could finally breathe. The Central Bank had been purposefully smothering it, absolutely consciously. It can be proved by the negative processes that took place in the absolutely market and very capitalist American economy when the Federal Reserve System of the USA held the base rate not even at a rate of 210% or 55% but at a mere 20% rate.

      'In April 1980 the main interest rates in the USA exceeded 20%. Cars stopped being sold, houses remained unfinished, millions of people lost their jobs – by the middle of 1980 the level of unemployment reached 9% and kept rising until the end of 1982, nearly reaching 11%'.[44] It is no one but the former Fed Chairman Alan Greenspan himself who tells us about this. And if you do have a look at the aforementioned table, you will make sure that the Russian economy lived at such a deadly rate of 21% from 7 August 2002 until 16 February 2003, and about ten years more at astronomical rates of up to 210%. What would have happened to the US efficient' economy if the FRB had raised the base rate up to 45% and kept it at this level for five years?

      In order to see what destructive consequences bankers from the Central Bank and their superiors from abroad were leading our economy to, just look at the following table. There is much less money in the Russian economy than in economies of Western countries. Some might say that Russia does not work enough. Rubbish! This is like trying to explain anaemia with the fact that the patient does not work enough, forgetting that the doctors just do not trouble themselves with feeding the patient properly. The Central Bank consciously performed a demonetisation of the Russian economy. Just as a normal human body requires a certain number of litres of blood to function properly, an economy needs a certain stock of money. The amount of money in the Russian economy was drastically reduced, which immediately led to a lack of longer-term money required for economical growth and caused a stagnation of the economical development. And the volume of 'blood' let out of the economy amounts to 1.3-2 trillion dollars.[45] For such a policy the Central Bank can be considered the Central Bank of anything but Russia.

      Demonetisation of the Russian economy was performed from early 1990s during active implementation of developments prepared by American experts into the Russian macro-economical and political policies. Monetisation still has not been restored[46]

      So, what made the Central Bank gradually lower the high base rate? Or maybe, WHO made them reduce the interest rate grip at the throat of the Russian economy? All it takes is to look at the steady lowering of the base rate since Vladimir Putin's team came into power in Russia…

      And if are still not convinced that the vast gold and foreign currency reserves of the Central Banks do not belong to Russia, just ask yourself one question: why is the Government going to privatise and sell shares of various companies owned by the state? Why sell shares of'Rosneft' and VTB when you have 450 billion dollars in the reserves? In order to get some money. Why sell liquid assets to get some money if you have plenty of money?

      There

40

This is a very peculiar provision. It just says 'submit'. But it is not mentioned that in case of a negative resolution of the bankers regarding the bill, the institution cannot be shut down.

41

http://www.constitution.ru.

42

http://www.cb r.ru/print.asp?file=/statistics/credit_statistics/refinancing_rates.htm.

43

From 15^th October 1993 to 28^th April 1994.

44

Greenspan A. The age of turbulence: adventures in a new world. New York : Penguin Press, 2007.

45

Yakunin V. I, Bagdasaryan V. E., Sulakshin S. S. New technologies of fighting the Russian Statesmanship. Moscow: Nauchny expert, 2009. P. 297.

46

Ibid.