Russian Central Bank. Wikicommons
RT: Handing out free cash to citizens as part of coronavirus relief will lead to hyperinflation in Russia – Central Bank
Distributing money to people as part of coronavirus relief measures could be catastrophic in terms of inflation, according to the Bank of Russia Governor Elvira Nabiullina.
“If the Central Bank prints money and gives it out at a zero rate, what could that lead to? I can recall the 1990s. This will lead to an ‘explosion’ of inflation, and for those who received those banknotes it will be hard to buy anything,” she said.
Nabiullina added that, according to the bank’s estimates, an easing of monetary policy is needed to maintain annual inflation close to four percent over the forecast horizon.
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WNU Editor: The Russian State Bank is correct. Printing a lot of paper money will only result in inflation. But not one government in the world is taking this advice. The priority is to print/borrow/and spend to alleviate the current economic crisis brought on by the pandemic and worry about the economic consequences later.
1 comment:
"Not one government..." as I understand it, Sweden hasn't given into hysteria. I'm sure there are others. As an American, I've come to expect stupid from our government. While the current stupidity is rather extreme, it shouldn't be surprising.
Also, the desire to undermine Trump proved irresistible. Part of the problem with leftists who dominate the Democrat party and the media is they tend to "live in the moment" not thinking through the mid to long range consequences of what they are doing.
I don't know much about Russia. As a Russian, this would be your area of expertise. With that said my impression of Putin is that he is ruthless and very smart. As such, I find it unlikely that he'd give in to the irrational hysteria. Tentative conclusion: the Russians are playing a game with the gullible and ideologically blind American leadership.
Frankly I'm disappointed in POTUS. His initial instincts on this were spot on. Somehow he lost his way or perhaps he's learned politics and is giving his enemies the rope with which to hang themselves. It was the tac cuts and regulatory reforms willed through by Trump that were the catalyst for the best econimy we have ever had. It was the thuggish overreaction to COVID-19 by Fauci and Birx all egged on by the Democrats and their media allies that took this away. Maybe Trump plans on highlighting this during the campaign. Regardless, not good!! It would've been more pro American to have resisted these thugs on the front end!!
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