Shock Therapy
Henry Mednikoff
are looking forward to change the approach towards Russian Economy.
It is understood now that the so called "shock therapy" in the Russian
economics will not give positive results but rather move large
layers of population toward ultra-right groups.
Very possible that IMF will be pressured by US Government and by
German federal government to ease on economical demands on Russia.
Seems, after all Gaidar will be a looser again, since he is an
ardent advocate of quick changes.
The alternative is: Improvement of daily life of Russian citizens
at the expense of the pace of economic changes.
What I really puzzled about is the dilemma: What came first? chicken or an egg ?
How can Russia improve today's life of her citizens without radical changes
in the country's economy.
But now they claim that they can not make radical changes in the economy without improving individuals' life first...
Henry.
Keywords: "If the output is 0 go to..?"
Matti Linnanvuori
It is understood now that the so called "shock therapy" in the Russian
economics will not give positive results but rather move large
layers of population toward ultra-right groups.
There has been no shock therapy. The anti-reformist Russian central
bank has continued to give loans to unprofitable state enterprises as
before, leading to hyperinflation. The federal budget deficit is
financed by printing bills. The market economy reform has been
blamed to have caused the inflation instead of the old Soviet monetary
policy.
The alternative is: Improvement of daily life of Russian citizens
at the expense of the pace of economic changes.
What kind of improvement? Increased subsidies to consumers would only
accelerate the hyperinflation.
--
Matti Linnanvuori
Red Herring
>It is reported today that The USA and other western countries
>are looking forward to change the approach towards Russian Economy.
>economics will not give positive results but rather move large
>layers of population toward ultra-right groups.
>German federal government to ease on economical demands on Russia.
When will these imbeciles realize that giving money
to Russia's goverment only makes it less responsive
to the needs of the average citizen hence provokes
an ultra-right-wing backlash and breeds resentment
toward the West as well as free market reforms?
When will they learn that the bulk of Western "aid"
is being split between the members of Yeltsin's mafia
and promptly deposited to their Swiss bank accounts,
and that Russia's politics have degenerated into a
bitter fight over control of the flow of that aid?
>Seems, after all Gaidar will be a looser again, since he is an
>ardent advocate of quick changes.
>The alternative is: Improvement of daily life of Russian citizens
>at the expense of the pace of economic changes.
>What I really puzzled about is the dilemma: What came first? chicken or an egg ?
>How can Russia improve today's life of her citizens without radical changes
>in the country's economy.
>But now they claim that they can not make radical changes in the economy without improving
>individuals' life first...
Yep, let's put them on AFDC, Medicaid and other welfare programs
- those are proven to cause radical changes in the economy.
/RH
Ron Fischer
essentially killed much of the benefit of Gaidar's improvements
by "printing money" to support the failing government supported
industries. This is what caused the hyper-inflation seen until the last
few months.
The inflation made everyone's money less valuable to the benefit
of those running and working in the inefficient (still) socialized
major industries.
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