Austin wrote:Vedimosti mentioned Reserve Fund would drop to as low as 500 billion roubles in 2017.
Is Printing Rouble an option to loosen liquidy crunch at some point in time , How about printing says 5 trillion roubles more .......will this seriously impact inflation ?
Russia should print rubles because there is an actual shortage of them. I gave an example of where barter transactions are still
taking place between large Russian businesses in well off parts of the country. But the CBR and the Ministry of Finance are staffed
by monetarist true believers who worship at the alter of a god that nobody aside from a lunatic fringe in the west believes in.
Kudrin is not the only clown on the scene. There are dozens of Kudrins still employed in critical positions. Russia imports western
fad ideologies and actually tries to implement them. Russia should import western economic pragmatism and see through nonsense
The way Russia needs to print rubles is to ingest dollar revenues from exports. Russia should sell for rubles and not foreign currencies.
After 15 years of reforms, Russia still has the same problem of how to convert export revenues into domestic accounts. A lot of those
dollars earned on exports are parked right back in offshore havens. You can't blame the export companies for engaging in fraud. They
are forced to do this because they cannot convert their earnings into rubles. The idiots at the CBR and MinFin are paralyzed with
fear that rubles from revenues will create massive inflation in the economy because allegedly there is no capacity in the Russian
economy to absorb them. Meanwhile there are tens of billions of dollars' worth of barter transactions still occurring.
These CBR and MinFin idiots need to be shot.