We need to undertake enforced by law transition to the energy standard of currency backing; with kilowatt-hour de-jure introduced as an invariant for each and every item on the price-list. The currently established prices would let us value a rouble with one kilowatt-hour. The present price co-relations would remain unaffected, whereas the ruble would acquire some tangible filling, which could easily be re-calculated into the adjusted volumes of other kinds of energy agents (oil, gas etc.) The country that will be the first to offer the world its’ money (de-jure) backed by energy standard will get the strategic advantages, urge investments, and raize international demand in its’ currency.
Interest rate creates fundamental problems in the ruling monetary system; it destabilizes economy and it has to be banned by law.Banking activities will have to be remunerated in direct proportion to the amount and quality of their work and services rendered to the producers, or as their input in joint production activities. The internal usury mechanisms have been behind the slaughterous fund-and-profit outflow from real industries to the banking sector, whereas the global supranational usury made this country addicted to foreign loans. This operation was based on premeditated tenfold reduction of the nation’s monetary base. The country’s debt burden in the form of paper and digits inside computers made the country service and pay back the sinister external debts (which came up to 40% of the national budget).
Restoration of elementary common sense in construction of our external commodity-and-money relations we have to start from the introduction of the ‘energy ruble’ as the unified intergrated unit of the accounting system.The average rouble values of exports and imports should be equal. Likewise, paper- and electronic cash-flow into this country should be balanced by counterstream, which is not supposed to be goods outflow, but data outflow. Foreign trade balance permits us to straightforwardly transfer our exports into the ruble zone. The only thing needed is a law similar to the Japanese one in force since 1949, which would put a ban on sale of goods produced in Russia for overseas, de-jure, non-supported currency.
The choice is obvious; we have to sell our resources for rubles. In that case, ruble will not put pressure upon the domestic market, it will be used in external circulation, it will not be accumulated in Russia only, but in the European, Asian and American countries, utterly craving our resources. This is the only way we can implement the task of ensuring the external convertibility of ruble, set forth in the President’s address. Russian foreign trade balance and exports, twice exceeding imports, will create the basis for a strong demand for rubles and their sale for any currency we would need for importing.
Ruble-based exports, energy ruble and external convertibility of ruble are mutually related processes. The demand for rubles will be ensured if some commodities, including energy agents, become available on the world market exclusively for rubles. National currency can be secured by commodities only in case this scheme is applied. Currently, our energy resources support US dollar, and the international demand for it is partly determined by the possibility of purchasing Russian goods for that slip of paper.
According to the stereotypes of today, inflation is considered to be as of right. However, global inflation is based on the money supply deceipt. G7 nations annually issue about 1 trillion new ‘hard currency’ money, backed by no commodity. Just a narrow group of experts knows this constitutes the gap between the so-called global total output and its value growth, nominated in US dollars. L. Erchard once witfully noticed that ’Inflation has never been a law of development, it has always been stupidity of fools ruling the country.’ Non-inflationary economy is based upon the money supply effected against the commodity-backed metrological background, legal prohibition of usury and the realignment of the tarriffs by the ‘natural monopolies’.
The main sources that will allow to double GDP are industry, agriculture and the real sector of production of commodities as well as services. It is high time that we crushed the murderous bank usury practicies and bring about taxation-and compensatory machinery of market regulation, which will provide the balanced development of all the sectors of the national economy; eliminate any inter-industry disproportions in prices and investments. It is time we tore the mask of the myth that insists the market by itself is all-mighty and omnipotent. Unregulated market will inevitably be adjusting itself to maximum profits, which leads to booming usury, porno-business, drug business, favoring alcohol and tobacco producers, which destroy the statehood. Well-being and prosperity should be determined by labour itself, and not by which industry one belongs to.
Victor Efimov
newspaper “Chas pik”, May 6, 2004