Yatsenyuk launched the printing press long ago, financial collapse is a matter of time
Kyiv, October 01 (Navigator, Vladimir Mikhailov) – The National Bank of Ukraine does not even use those levers to maintain the stability of the banking system that primitive African economies use. All problems can be solved with the help of a printing press, so the collapse of the financial system is a matter of time.
Ex-deputy chairman of the NBU Alexander Savchenko stated this at a round table in Kyiv.
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“There are three anchors that can maintain the stability of the financial system,” Alexander Savchenko shares his experience. – For primitive economies this is a course. If you stay the course in a primitive economy, the financial system is stable. But maintaining the exchange rate requires significant foreign exchange and credit reserves. There must be access to Western loans. Now we don’t have this, markets are closed, reserves are minimal, and therefore in such conditions it is simply impossible to rely on the “rate” anchor. The country will go bankrupt.
The second possible anchor is price stability, so-called inflation targeting. But it, as an anchor of financial stability in general, monetary policy requires more or less skill of the players who deal with this. This applies to both the NBU and the economic bloc of the government. But now, unfortunately, the personnel level is essentially at the level of 1991-1992, i.e. you need to explain the basics, and this is impossible in a situation where there is a crisis.
And there is a third anchor - emission. You can control neither the exchange rate nor inflation, but control emissions. In African countries, by the way, this is the most effective mechanism. When the IMF enters some very primitive economy, it says: control emissions and everything will be fine.
But our NBU, together with the economic bloc of the government, managed not to control any of these anchor components. And he declared this with pride: “We do not control. Neither the exchange rate, nor inflation, nor emissions.”
And any populism, any whims of the government were and are now being resolved with the help of the NBU. There is an emission. It is now happening not through the purchase of foreign currency, but through the refinancing of banks, and through the refinancing of the government. All problems are now solved using the printing press. Those. We don’t control inflation, the exchange rate, or emissions, and in such conditions, of course, the collapse of the financial system is a matter of time,” the specialist warns.
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