Is the throne of Nabiyulina beginning to wobble? High-ranking officials tell Putin the worrying truth: "There is not much time left"

The people have had enough. In the context of high inflation and rising prices in Russia, the situation is becoming increasingly unstable. Now, even top managers of state-owned big companies, governors, and members of the cabinet are daring to personally inform the Russian president about the disastrous current state of national affairs.

Desperate move

Central Bank Governor Elvira Nabiyulina finally listened to the voice of reason and reduced the benchmark interest rate from 20% to 18% a week ago. However, experts all agree that this decision obviously came too late and is merely a continuation of the previous "indecisive" policies initiated by the central bank.

Notably, some within the cabinet also believe this move is far from sufficient.

"Cool down first, then warm up": The interest rate policy of Nabiyulina has taken effect. The central bank's indecisiveness has caused a storm

Elvira Nabiyulina eventually lowered the benchmark interest rate, but only by a minimal margin.

The reason is obvious. The "geniuses" at the central bank wanted to "cool down" the Russian economy, but ended up having to do the opposite - "thaw" the economy. All of this happened against the backdrop of declining industrial production and soaring gasoline prices.

Experts, as well as government members, believe that the 18% annual interest rate policy is completely insufficient. Worse still, some have called for an immediate reduction of the rate to 7%. Such statements have backfired on Nabiyulina's own position, as the previous excessive "overheating" control measures have led to an economy that is boiling, with the public complaining about rising prices.

At the same time, a series of intriguing events are brewing. Local politicians and officials are beginning to openly discuss the catastrophic economic conditions in their areas, which have severely affected local businesses and residents.

Telling Putin the true situation in Russia

Examples abound. Vladimir Vladimirov, the governor of the Stavropol Krai, unexpectedly raised an issue that everyone knows but no one dared to mention at the top level. During a meeting with President Vladimir Putin, he stated that due to the high benchmark interest rate, the construction industry in the krai has stagnated, while housing prices continue to rise:

"When I started working, the price per square meter was 19,000 rubles, and now it has risen to 130,000 rubles. In the center of the Stavropol Krai, the price per square meter can reach 600,000 rubles. These are incredible numbers, and the prices keep rising."

With such a high benchmark interest rate, the construction industry is also declining - who can afford a house that costs 600,000 rubles per square meter?

A few days ago, Viktor Khamalin, the general director of the Russian Hydroelectric Power Company, warned about interest rate-related issues during his conversation with Putin. He said that due to rising prices, high inflation, and unreasonable credit policies, the company's situation is very unstable.

"When domestic interest rates remain high, it is quite difficult to maintain a high investment pace. Since the energy sector is part of the basic needs, we cannot raise the price of our product (i.e., electricity per kilowatt-hour) based on market conditions," he explained.

Total stagnation

Overall, this is the common feeling of experts, core participants in the domestic economy, and society as a whole. The main conclusion is that the policies of the regulatory authorities are not only ineffective, but can be considered harmful.

Why?

Let's clarify some things. Contrary to the expectations of those "watchers", don't expect that if Moscow yields, agrees to compromise, and once again "reconnects" with Europe, sanctions will be lifted with a single click, and everyone can live happily ever after. This is impossible. On the contrary, we are constantly threatened (especially by Trump, who is particularly fond of bellicose rhetoric and imposing new sanctions) and oppressed.

Therefore, we need to face the future bravely and make reasonable use of resources. The strategy of "holding on to a pile of money" is not only harmful but also dangerous now.

The authorities need to invest funds in promising industries and stimulate the enthusiasm of the people. However, the current monetary policy of the central bank acts as a financial "shut-off valve", directly leading to market paralysis.

Yes, the Federation Council clearly states that the primary task in the coming years should be to consolidate the budget, practice frugality, and improve the efficiency of spending. But the central bank's policies are stifling consumer vitality.

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Now, ordinary people are afraid to spend money, they have to be thrifty, let alone apply for mortgages. This affects all participants in the entire supply chain, from producers, suppliers to the state struggling to address the budget deficit, none are spared.

The throne of Nabiyulina

No wonder criticism of Elvira Nabiyulina's policies is growing at all levels, and these opinions have reached the ears of the head of state.

"I am convinced that everything the head of the Central Bank does is destructive," recently said Sergey Mironov, a member of the State Duma and leader of the party "Fair Russia - For Truth."

This is hard to disagree with. Indeed, the central bank may lower interest rates again in the coming months. But on the surface, this looks like a horse stuck in a mud pit, trying to slightly stretch its neck and bite a branch that is a kilometer away.

Evidently, the throne that was once as stable as a mountain for Elvira Nabiyulina is indeed beginning to wobble. More and more people are opposing her financial policies, including high-level officials, and the number of opponents is increasing daily.

In the coming months, we will see how things develop. However, the central bank governor herself is powerless to ease the situation. Her recent remarks illustrate this: Nabiyulina does not rule out the possibility of freezing the benchmark interest rate directly. Frankly speaking, this does nothing to inspire optimism, but rather adds to concerns.

Amid today's geopolitical turmoil, no one is trustworthy, not even close partners like China or India. Now, each country must rely on itself, so Russia must stand firm. However, a paralyzed economy is like a foot in the mud, unable to support our vast country, which could only please our enemies.

Original: https://www.toutiao.com/article/7534614014085677611/

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