High premium of the black market (save your money)

A high premium of the black market is formed where people who are especially gifted with ties to the government are trying to get around the state prohibitions. A typical example is the restriction of the free convertibility of the national currency against the US dollar.

In this case, the state sells the currency at its fixed rate, which is always below the market rate. The people, authorized by the authorities, seek permission from intermediaries to realize the currency, all participants of the scheme receive a black market prize.

This scheme has long existed in the Soviet Union, now it is used by many underdeveloped countries, in which there is irremovability of power, the black market premium creates incentives for the usurpation of power for subsequent personal enrichment. The presence of black market premium is disastrous on economic growth.

First of all, exporters suffer, they do not get decent pay for their work, the reduction of export industries leads to a negative balance of COR (current operations rates), which leads to excess of imports over exports. In this case, the state is forced to increase its debt to cover the shortage of currency. Reduction of export industries leads to unemployment, people demand compensation and expansion of social programs, to cover costs, the state begins to print money, which causes inflation, depreciation of the national currency, further impoverishment of the population, growing tensions in society, pushing to increase emissions.

Thus, a vicious circle of stimulus expansion to financial speculation and production reduction is formed, which leads the country to an economic crisis. People who lived in the last few years in the USSR experienced all these horrors of impoverishment and financial loss, of deception of the state, but they did not learn from their mistakes. Yegor Gaidar was able to overcome the vicious circle of instability of the national currency due to tough monetary policy, which turned out to be bad and to blame, and those rascals who took advantage of the black market prize seized power in Russia and became D'Artanyans.

Since the lesson was not learned the situation with the financial overhang of the 90s of the last century in an amazing way, as in a nightmarish dream it began to be repeated in Russia now, only in a more veiled form. Fat years of prosperity of the distributive economy in Russia have produced a positive result for a part of the population, lucky people who found themselves in the distribution points of income from hydrocarbon rent.

Putin and people close to him were able not only to convert power into property, but also to withdraw assets abroad, the law on currency control does not apply to them. On February 2, 2018, US intelligence will report in Congress how many stolen money from Russian citizens. Another part of the population was able to generate 13 to 17 trillion rubles within the country according to various estimates.

Since high and unpredictable business risks in Russia due to illegal regulation by the security forces of the economy make investment unprofitable, this money is again suspended in money. Thanks to the policy of V.V. Putin's financial system demonstrates sufficient strength to preserve the market economy and free convertibility of the ruble.

But negative trends are mounting. The excessive increase in budget expenditures due to two wars, the production of weapons, which is often useless for modern combat operations, the support of unprofitable industries, low control over the activities of credit institutions that generate bad debts, the closure of foreign markets for borrowing, the negative balance of COR , the failure of pension reform, forced print 3.5 trillion rubles to the available money canopy. Write-off of bad loans by the Central Bank of Russia only led in 2017 to an unjustified increase in the money supply by another trillion rubles. The only correct measure was the high rate of the Central Bank, but this is the mechanism of the delayed impact of the monetary overhang on the economy of the country.

On the one hand, it hinders business lending, the accumulation of bank interest, high risks of illegal regulation, and the need to pay tribute to security forces to protect against raider seizures kill economic growth in Russia; on the other hand, the delayed impact of the monetary overhang on the economy creates an inflationary vacuum bomb. An unbalanced financial system must come to a new equilibrium by exploding an inflationary bomb and burning the financial overhang, rubles in stakes will inevitably depreciate.

If you do not understand major and crypto currency at least buy dollars, euros or something valuable otherwise your money will be lost as in the 90s. The State Duma has already passed a law on the suspension of foreign exchange operations, that is, there is an understanding of the substance of the problem in the Kremlin, these people are already preparing to receive a black market prize, when the savings of citizens will melt, the same amount will grow the income of kleptocracy.

It is clear that the time constraints will become permanent, because they will bring a fabulous income to the beneficiaries, the restriction on the sale of proceeds from exporters will spread to individuals.

Therefore, it is impossible to leave hard earned money even in banks. The usual practice of scammers in governments is to fix the exchange rate and make mandatory sale, this focus on the withdrawal of currency from the population has the widest distribution in the world.

Then, proceeding from the logic of events for the currency will be planted as before, it is best to act on the lead, to master the crypto-currencies and mining.

The ideal option would be to change the power of people with modern brains, eliminate illegal regulation of the economy, so that the money hover turned into investment and began to generate economic growth, the economy can be transferred from the trajectory of distribution to the trajectory of creation.

But people are usually strong in the back of their mind and prefer to take a dash first before coming to the inevitable.