The most popular asset will be the cash dollar
Consciously or not, the top officials continue to worsen Ukraine’s economic prospects, finishing off the stock market, industry, the banking sector and now, as if on the brink of a precipice, the real estate bubble is pumped up (of course, including the land), to bring it down, roughly speaking, below the plinth. I know very well and remember well, but such a long year-to-year decline in the real incomes of our citizens was not even in the dashing 1990s.
This is not even talked about, but screaming in the West, for example, the UN published a rating of the countries of the world in the Human Development Index at the end of 2016. For a year, Ukraine dropped to 29 lines and was on 84th place! And the American research center Heritage Foundation placed Ukraine on the 166th place in the rating of economic freedom (in the rating of 180 countries). Well, what else is there to fall ?! Of course, we will not see the bottom soon.
And about the default of the pension system of Ukraine, even the World Bank Director for Ukraine, Belarus and Moldova Satu Kakhkonen expressed her position openly and categorically: “The current pension system is financially and socially unsustainable. Ukraine today spends 11% of GDP on retirement. This is a significant figure by international standards. More than half of this – 6% of GDP – is financed from the budget. And it’s financially unviable. ” I will add from ourselves, we already have wealth not determined by how much money you earn, but how after paying for services and utility tariffs you can live well on the remaining money (by the way, from July 1 in Kiev new tariffs for rent and hot water that is not available , in my opinion, are just having fun).
So, what is next? I do not doubt, as before, there will be a stamp on the spot in carrying out economic reforms. Recall how many times (!) And with the support of USAID our legislators tried to launch the second Cumulative level of the 3-tier pension system, however, it is always unsuccessful – pensioners are inevitably and this time will remain at the broken trough. At the same time, how to continue to live producers and employers in the Ukrainian market with a lack of credit money? After all, the financial authorities rigidly dry the economy of the country, giving it to the mercy of currency speculators. And what the people’s deputies with representatives of the Cabinet of Ministers have talked about in recent months and what they have been doing specifically is, in fact, fulfilling the main task of the next few years to destroy the savings of middle-sized businessmen.
As they say, they have achieved: we do not influence the authorities at all, but the authorities fully influence us. For example, several politicians wanted to improve their lives, the people supported them and tightened their belts. I note that all these high-ranking top officials have known each other for a long time as their own five fingers, which means that over the past 3 years they have not been able to “amicably” agree, in particular, with the former Minister of Revenues and Collections, Alexander Klimenko, who for obvious reasons in Kiev sharply The storage of their investments and savings has worsened. I think in the near future we should expect large sales, which will affect banks and virtually all sectors of the Ukrainian market. And, of course, very soon a number of companies following the shares will quickly get rid of bonds of internal state loans (OVDP). But the most popular asset will be our cash US dollar.
This has recently become a trend in the Ukrainian market, which is very indicative of the difficult state of the economy and the extremely low level of real incomes of our citizens. The other day I went to the supermarket of the well-known retailer in Kiev in the Gulliver shopping and entertainment center, looked at the price tags and thought about how much less in a hundred dollar bill of “American”, for example, meat, vodka and cheese? I think I will not be mistaken if I say that I can now buy a pair of meat for Franklin and even fewer liters of vodka, and even less Swiss cheese. And most likely, we are in Ukraine is already in early autumn, another wave of dollar inflation.
Judge for yourself, in conditions of terrible lack of hryvnia for the Ukrainian business, at this time the gray and shadow economies are pumped up with dollar cash. What’s next? Inflation! True, there is someone to rejoice, in the US prices have not changed, as my partners note, you can buy as much as a dollar a few years ago. And I have no doubt that very soon the conjuncture in the Ukrainian market will be determined on the Chicago Stock Exchange.
Yes, the potential for the fall of our market is far from exhausted. It is worth pondering what we will do if by the end of 2017 Ukrainian industry and the stock market do not rise? How soon will new financial structures appear? Well, the hryvnia, frankly speaking, must be dropped – this is not a currency to save savings. And in this regard, I remind the Cabinet initiators of the pension reform that only every second man in Ukraine today has a chance to live up to sixty years. Therefore, in spite of the most powerful pressure of ignorant officials, many of us have task number 1 – this is to preserve our own positive moral and intellectual energy. The