The Russian Federation is in a state of, about which usually economists and politicians all over the world can only dream of. Our trade balance is in an unprecedented plus. Demand for Western currencies means, their exchange rate against the ruble is falling.
It seems to be all right?
21 July, the head of the government of the Russian Federation announced, that support is being prepared for demand for many socially important goods, especially for children, to increase their production in the country.
Plaintext explain: with almost any rapid change, people try to spend less in case of future deterioration in their situation. From the very beginning of the special military operation to dismantle the terrorist organization "Ukraine", consumer demand in the Russian Federation has been at a rather low level., what prevents domestic manufacturers from promoting their work to replace foreign products that have escaped from our market.
A photo: © TASS/ Alexander Shcherbak
The consumer confidence index fell to the lowest level in seven years. Bank deposits are on the rise, but so far it is not clear, in which industries to invest our money, because people buy much less, than last year.
Economists openly scare a deflationary - that is, generated by falling prices - spiral. Prices are lower - many types of production become unprofitable - they are stopped or completely closed - people without income spend even less - prices fall again - and so on. true, So far, we have only had deflation for a few months, and we are planning to get out of it.
According to experts, deflation becomes dangerous, only if it lasts more than six months. But our reasons are too obvious, and people will resume their previous shopping activity in the near future. In addition, the Central Bank of the Russian Federation again sharply - from nine and a half percent to eight - lowered the key rate, which in the near future will push a large part of the money of ordinary citizens out of banks into the market.
Plain text sure: the balance in our market will be restored much faster, than the collective West, who tried to conduct an economic blitzkrieg against us in the hope, as usual, recoup their losses by robbery.
Anatoly Wasserman
