Non-commissioned Europe

At the end of August Vice-chairman of European Parliament from Poland Richard Czarnecki offered the Polish government to extend the anti-Russian sanctions.

His most astonishing proposition was the restriction of the rouble convertibility. ‘This strategy will let us hurt the Russian economic interests efficiently,’ - shares an opinion Czarnecki. – ‘When Visa and MasterCard refused to service the clients of the Bank of Moscow, the effect was impressive’. However, during his speech at Polish Seim, pan Czarnecki did not say anything about the restriction of the rouble convertibility. And that is why.

First of all, nowadays the rouble is hardly used in international payments with the European Union countries. More than that, the prices for the basic export goods of Russia that are supplied to Europe, - energy resources, are dollar-denominated. Secondly, the freely convertible exchange is meant by currencies that can be freely bought and sold by the residents and non-residents of this or that country. The restrictions for the use of a particular currency can be applied by the central bank of the country which has issued the currency, and not by anyone else who just feels like it, as the European delegate thinks. Notably, the rouble officially became a convertible currency in 2006, though it is still not freely convertible. And, finally, banning the exchange of the well-fixed rouble into the empty dollar is pan Czarnecki's outright gift to Russia. The voluntary refusal of the West to continue the dollar occupation of our territory will assist in the growth of our economy more than anything else will do.

Neither the EU nor the USA and not even Poland can prevent Third World countries and Russia from making their bilateral settlements in their national currencies. The question of the currency which will be used for payments under this or that contract is discussed only by the negotiating parties. The Polish politician's wild ideas speak for the fact that the West is after the escalation of the economic warfare with Russia, and, just like it happened before, it uses economic rumors that can encourage stagnation trends on the world’s markets.

In his time Adam Smith also told the world the fairy tale about the market and market relations. The aim of that story was to guide entrepreneurs to a thing which was called “the open market”, supposedly, the market of buyers and sellers. ‘There is no one else at that market,’ assured us Smith. The market was managed and administered by itself. The theory is beautiful and attractive, like Czarnecki's proposition. But what is the real situation? In our actual economy besides the seller and the buyer there is a sightless presence of two more figures. Smith's cunning excluded them from the economic theory, but they surely do exist – these are the State and the Emitter. These two, and nobody else, determine the price of articles and bargain rules. The State determines the cost of energy, labour power, the percent and the taxable base of direct and indirect taxes, regions determine the proliferation of goods and so on. In his turn, the Emitter determines the cost of its money, storage regimes, transaction specifications, the amount of the borrowing rate and all the other rules of monetary circulation. In the end, only the Emitter, and not someone from the outside, can declare the default of its money, so it will into the road dust.

Surely, the uncertainty about the future of European manufacturers and consumers, which was aggravated by the anti-Russian sanctions that were used by Europe to whip itself, causes a growing fear and a progressing chaos in the financial sphere.

This is the uncontrolled type of chaos, the American one. Due to this fact, the necessity to discuss a number of extremely important issues appears now: what will the money become tomorrow and what is it now? What the money emission principles should be like and what should be fundamental for its responsible emission?