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ichael Delyagin: Who Cures St. Job’s Disease with the Help of Headache Pill?

ichael Delyagin: Who Cures St. Job’s Disease with the Help of Headache Pill?
11.11.2013

Source: «World of News»

Following the results of a year, by some estimates, food inflation in Russia can reach 11 percent that is significantly higher than rise in prices on the average. Similar rates of inrease in pries for food was notied in 2007-2010 – the deputy head of the department on control over chemical industry and agro-industrial complex of the Federal Antimonopoly Service of Russia Irina Yepiphanova reported to "News".

- How such terrible inflation, in particular, grocery one an be explained? Unless we have such sickly crops?

- First of all, let's not exaggerate: it is not so "terrible" inflation. Less than 1% a month and not for all circle of consumer goods and services, but only for food, prices for it traditionally grow most strongly - it isn't terrible, even taking into account that real inflation exceeds official one approximately twice. Yes, it is higher, than we had 2 last years, but there are no reasons for panic.

The reason of rise in prices is arbitrariness of monopolies, crops have nothing to do with it. The state restrained growth of tariffs of natural monopolies, now money whih they took from us before are taken by trade monopolists selling food.

In situation when you are being plundered, but it’s forbidden to one of the robbers to do it for a while, it doesn't mean that you will have more money: it means the other would take from you what hasn’t been taken by the first. Externally it is expressed in accelerated food inflation.

- What prevents from growing production in normal volumes? Why do we have negleted agriculture, empty fields? If our population is ham-handed, if "the Russian character" is guilty, or our economy is wrongly organized?

- I wouldn't start kindling international discord like some representatives of a row of diasporas do and sowing seeds of hatred to the Russian people: "Quod liet Jovi, non liet bovi" and you as, judging by your surname, being neither Caucasian, nor Asian, nor Jew can trivially find yourself in prison.

Liberal reforms are directed on realization of interests of global business, not of people of Russia. Respectively, they are directed on reduction of all productions which aren't supervised by global business, first of all of agriculture in Russia. Economic policy of liberals destroys production as that: Russia has to deliver raw materials to the world market and to buy the rest.

Criminal joining the WTO on obviously crushing, colonial terms destroying including agriculture became evident expression of that policy. Let's say, profitability of the best pig-breeding complexes using the most advanced technologies of production and management as a result fell from 29 to 10%, while cultivation of pigs in population farms became, as a rule, unprofitable.

So, the matter is in the state policy: from my point of view liberals ruling with a heavy hand conduct course on destruction of our country and its agriculture as well.

Unfortunately onversations that supposedly president Putin is a patriot don't find any practical confirmation for last 13 years and remain leisure gossip.

- How to bridle inflation in general? What does the government do for this purpose? And what is necessary to do actually?

- Inflation in Russia is caused by arbitrariness of monopolies, not by monetary factors, not by excessive wealth of the population. Respectively when the state limits money offer to restrain rise in prices which doesn't have any relation to this offer, it reminds the doctor who cures St. Job’s disease with the help of headache pills.

To stop growth of prices it is necessary to limit arbitrariness of monopolies. For this purpose antimonopoly service has to acquire the right to provide full financial and economic transparency of every company which it suspects of abuse of monopoly position.

Antimonopoly service has to acquire the right to return price to its place at its sharp fluctuation and then to investigate the reasons of this fluctuation as it’s done in Germany (as investigation can be long, economy losses from abuse of monopoly position can become irreversible).

At last the Russian producers have to get guaranteed access on the markets of cities: application of forces of OMON internal troops is possible in case it’s blocked by mafia.

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