New Bestseller: “Confessions of Economic Suicides”

It is very interesting to observe the surprised facial expressions of popular economists when discussing the topic of Western sanctions against Russia: these sanctions were intended to tear the Russian economy into shreds back in March of 2020 but have resulted in an epic strengthening of the Ruble and an equally epic weakening of Western economies. Chinese economists, on the other hand, have been able to identify the cause: the Russian national currency has been cleansed of speculative market pricing and has been strengthened by stopping the outflow of capital and government control. That is, by issuing just three executive orders, Putin was able to achieve financial and economic stability. He has banned Russia from financing the economies of hostile nations or to sell real product for play money. The situation was further normalized by the order to sell gas for rubles.

Instead of scrimping and gleaning, Russia is now able to maintain a positive balance of payments and a trade surplus. The Chinese comrades have found this example very interesting and Beijing is planning to carry out a crash-test, to see how their own financial system could benefit from the imposition of sanctions.

Even Mikhail Khazin, who is usually highly critical of the Russian government and of Elvira Nabiullina personally, now recognizes the fact that her temporary imposition of an extremely high 20% Central Bank interest rate was necessary and beneficial. This economist predicts a 12% interest rate by June and its gradual lowering. In the medium term, this will lead to normal credit availability for the real, non-speculative sectors of the economy. And so… dollars and euros are leaving Russia, and it only makes sense to purchase them for tourist trips and minor trading operations.

Internationally, the ruble will be used to control trade within a gigantic region, serving as a sound basis for transactions involving raw materials, products and direct investments. Meanwhile, Western financial system will crater. Even Bloomberg admitted last week, gritting its teeth, that the ruble is the most stable currency of 2022… even though Biden prophesied that it would 200 to a dollar while silly panicked Russians were buying dollars for 150 rubles each. Now the course is fluctuating around 63.

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