Putin’s Economic Team or Team for Foreign Speculators?

Sergei Glazyev Department Can you understand now why Putin’s economic team meeting is a meeting with rabid liberasts betraying Russia and common Russians?

Sergey Glazyev: the foreign Exchange market was in the hands of speculators
From: Front News, 30 January 2016, 11:42

The Moscow Exchange was captured by the speculators, said on air “Russian News Service” economist Sergei Glazyev. “The foreign exchange market was in the hands of speculators. Steadily in the last decade in the financial market in General, not dominated by resident foreigners. About ¾ transactions are made in favor of non-residents. And on the foreign exchange segment that dominates today, in different periods, the share of non-residents reached 90%,” — said Glazyev.

The attractiveness of currency speculation is clear: there is “insane profit margins”, up to 80-100%, the economist added. “Let me note that the US sanctions do not apply to speculative capital, they relate to only long term loans, are banned to give our country. As for the speculators — take a loan for 30 days, speculate all you want. Given the fact that Moscow exchange now there today running the show speculators that stimulate speculative fluctuations, using credit leverage insider information.

Moscow exchange has become a primary profit center in the country, through which in the past year of operations in 2 times more than GDP in the country, 5 times more than the volume of exports or imports. This despite the fact that economic activity in the country falls. There are pumping money to the banks, pulling them from the real sector, where the profitability of 5-7%”, — continued the source.

He stressed that this leads to a deflation of money from the real economy. “I’ve been engaged in the Eurasian integration. Such damage as predicted from the ruble of our Eurasian integration process was never received. We successfully developed, we made plans that the ruble will become a reserve currency, we persuaded our partners to trade in rubles. And here’s a shot. Now our partners and don’t want to hear about trading in national currencies. They believe that the depreciation of the currency is unfair competition,” he cited the example of the economist.

In his opinion, the cause of the disengagement of the Central Bank who does not fulfill his duties, although he has all the tools. “The Central Bank not fulfilling its constitutional duty of ensuring the stability of the exchange rate. As a result, today we have halted many investment projects, the people lost in the business benchmarks, no one knows what the rate will be tomorrow. In these conditions it is impossible to plan the conduct of a business or to invest or to trade in rubles,” — said Glazyev.

RSN

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