Today is my my privilege to submit to you the full text of the recent article by Sergei Glaziev “Stupidity Is Worse Then Theft” originally published on the World Crisis website:
I want to thank all those who participated in this difficult and long translation: Alice, S, Gideon, Marina (translation) and D.M. Pennington, Michael, Peter, Heather, Bernie, Patricia, Tom, Kristin (editing). This is a crucial text which is made available to the English-speaking world only thanks to the fantastic job of these volunteers. Thank you guys!
Also, a reader of the French Saker Blog named “DePassage” (merci!) has called our community’s attention to a most interesting analysis made by Jon Hellevig the Awara Group entitled “Putin 2000 – 2014, Midterm Interim Results: Diversfication, Modernization and the Role of the State in Russia’s economy” which you can find on this page http://www.awarablogs.com/putin-midterm-interim-results/ and which I strongly urge you to read. It might give you a better sense of where the Russian economy is, along with a few surprises.
Clearly, until the combat operations resume (which the most probably will), the “economic front” is the most important one in the war against Russia and I will try to continue to bring to you alternative top-quality information and analyses to try to debunk the imperial media’s narrative.
Cheers and kind regards,
Sergei Glaziev: stupidity is worse than theft
Translation: Alice, S, Gideon, Marina
Editing: D.M. Pennington, Michael, Peter, Heather, Bernie, Patricia, Tom, Kristin
STUPIDITY IS WORSE THAN THEFT
Why did the Central Bank raise the interest rate and let the ruble flow? Author: Sergei Glazyev, academic RAS (Russian Academy of Sciences)
Another increase in key interest rates on loans issued by the Bank of Russia, for the purpose of refinancing commercial banks, made loans completely inaccessible for the majority of enterprises of the real sector of the economy. When the average profitability of the manufacturing industry is 7.5-8%, credit issued at rates of 10% or higher cannot be used by most businesses, either for investment or for replenishing working capital. Such decisions cut off the real economy, with the exception of some sectors of the oil, gas, and chemical-metallurgical sector, from credit issued by the State.
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