From Zero Hedge:
“A ‘91-style meltdown is almost inevitable.” So says Alexei Moiseev, chief economist at VTB Capital, the investment-banking arm of Russia’s second-largest lender, discussing the imminent economic catastrophe that is sure to engulf Belarus following the surprise devaluation of the country’s currency by over 50%, which we announced on Monday. “Unless Belarus heeds Russia’s call for mass privatization of state assets, it is headed for “hyperinflation, massive un- and under-employment, and a shutdown of production” Moiseev concludes. Ah: “privatization” as Greece is about to learn, the lovely word that describes a fire sale of assets to one’s creditors, courtesy of a “globalized” new world order…
Belarus is a small player in both the European and global economy, but some times just a pebble starts an avalanche. We’ll see where this winds up – but all Belarus did was greatly accelerate what the Federal Reserve is doing to us: devaluing our currency so that Big Government and well-connected Crony Capitalists can keep going. There is actually a bit more honesty in Belarus’ actions than in ours – they are pretty much openly stealing the peoples’ money, while our guys are still trying to sell us on the notion that high food and fuel prices are worth it if we can can just keep insolvent banks afloat.
We need a currency no one can manipulate – a currency which can’t be devalued by government decree, nor by central bank printing. I favor a return to gold, but the fundamental thing is to have a currency with a fixed value, based upon tangible assets. It isn’t that money is important – it is that the value of what we do must be maintained. If my labor produces for me $20 in wealth today, then that $20 must be mine today, tomorrow and 50 years from now until I decide to expend it. It must not be that a central banker can flip a switch and turn my $20 of wealth in to $15.
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