How Stalin freed the ruble from the dollar

We bring to the site an article published on the Internet. We offer site visitors to compare the activity of I.V. Stalin and Soviet leadership to strengthen the Soviet ruble and the economy with measures in economics and finance taken by the leaders of Russia Today. We give the article completely without abbreviations. Text, in bold, highlighted by us. How Stalin freed ruble from the dollar INTRODUCTION Soviet monetary system stood the test of war. So, the money supply in Germany over the years war increased 6 times (although the Germans brought goods from all over Europe and a significant part of the USSR); in Italy – 10 times; in Japan – 11 times. In the USSR, the money supply during the war years increased only 3.8 times. How Stalin freed the ruble from the dollarPhoto from open sources However, the Great Patriotic War gave rise to a number of negative phenomena that needed to be eliminate. Firstly, there is a mismatch between the quantity money and commodity circulation needs. There was a surplus of money. Secondly, there are several kinds of prices – soldering, commercial and market. This undermined the value of cash wages and cash income of collective farmers by workdays. Third, large sums of money settled by speculators. Moreover, the difference in prices still gave them the opportunity to get rich at the expense of the population. It undermined social justice in the country. The state immediately after the war held a number of activities aimed at strengthening the monetary system and rising welfare. Consumer demand increased by increasing wage funds and lower payments to the financial system. So, from August 1945 they started abolish the military tax on workers and employees. Final tax canceled in early 1946. Did not spend more money and clothing lotteries and reduced the size of the subscription to the new state loan. In the spring of 1946, savings banks began to pay workers and employees compensation for unused leave during the war. Started post-war restructuring of industry. Some growth has occurred commodity fund due to the restructuring of industry and due to reducing the consumption of armed forces and the sale of trophies. For withdrawals from circulation continued the deployment of commercial trade. In 1946, commercial commerce acquired quite wide scope: a wide network of shops and restaurants was created, the range of goods has been expanded and their price has been reduced. End of war led to a fall in prices on collective farm markets (by more than a third). However, by the end of 1946, the negative phenomena were not completely eliminated. Therefore, the course on monetary reform has been maintained. Also issuing new money and exchanging old money for new was necessary for in order to eliminate the money that went abroad and improve the quality of banknotes. Photo from open sources According to the USSR people’s commissar of finance �Arsenia Zvereva (managed finances of the USSR since 1938) for the first time Stalin asked about the possibility of monetary reform at the end December 1942 and demanded to submit the first calculations at the beginning 1943 year. Initially, it was planned to carry out monetary reform in 1946 year. However, due to famine, which was caused by drought and crop failure in In a number of Soviet regions, the beginning of the reform had to be postponed. Only on December 3, 1947 did the Politburo of the Central Committee of the CPSU (B.) Decide the abolition of the card system and the beginning of monetary reform. Conditions monetary reforms were defined in the Decree of the Council of Ministers of the USSR and the Central Committee VKP (b) of December 14, 1947. Money exchange was carried out throughout the territory of the Soviet Union from December 16 to 22, 1947, and in Remote areas ended December 29th. When recalculating salary money was exchanged so that salary remained without change. Change coin was not subject to exchange and remained in circulation at face value. For cash deposits in Sberbank, amounts up to 3 thousand rubles were also subject to one-to-one exchange; on deposits from 3 up to 10 thousand rubles, savings decreased by one third Amounts on deposits of more than 10 thousand rubles, two-thirds were subject to withdrawal amount. Those citizens who kept large amounts of money at home could exchange at the rate of 1 new ruble to 10 old. Relatively preferential cash exchange conditions have been established for holders government loan bonds: 1947 loan bonds not subject to revaluation; mass loan bonds were exchanged for bonds of a new loan in the ratio 3: 1, bonds freely the realized loan of 1938 was exchanged in a ratio of 5: 1. Cash funds held in settlement and current accounts cooperative organizations and collective farms were revalued from the calculation of 5 old rubles for 4 new. At the same time, the government canceled card system (earlier than other winning states), high prices in commercial trade and introduced single lowered government retail food and industrial prices goods. So, for bread and flour prices were reduced by an average of 12% against current ration prices; for cereals and pasta – by 10% and etc. Thus, in the USSR negative consequences of the war in the field of the monetary system. It allowed to go to trade at uniform prices and reduce the money supply by three seconds once again (from 43.6 to 14 billion rubles). In general, the reform was successful. In addition, the reform had a social aspect. Speculators pressed. This restored the socially trampled during the war years. justice. At first glance it seemed that everyone was hurt, because everyone on December 15 had some money on hand. But ordinary worker living on a salary, whose there wasn’t much money left in the middle of the month, only nominally. He didn’t even remain without money, since already December 16 began to give out salaries with new money for the first half of the month, which usually didn’t. Salaries are usually paid monthly after completion of the month. Thanks to this extradition of workers and employees in early reforms provided new money. Exchange of 3 thousand rubles 1: 1 contribution satisfied the vast majority of the population, since people did not have significant funds. Per adult population the average deposit on the savings book could not be more than 200 rubles. Clear, that the “Stakhanovites” lost with speculators, inventors and other small populations who had super profits. But taking into account the general reduction in prices, they, without winning, are all but not much affected. True, those who kept large amounts of money at home. This concerned speculative groups. population and part of the population of the South Caucasus and Central Asia, which They didn’t know war and for this reason had the opportunity to trade. It should be noted the uniqueness of the Stalinist system, which was able to withdraw most of the money from money circulation and at the same time most ordinary people were not injured. Moreover, the whole world was amazed that just two years after the end of the war and after a crop failure of 1946, the main food prices were kept at the level of soldering or even reduced. That is, almost everything food was available to everyone in the USSR. This is for the western world it was a surprise and a surprise offensive. Capitalist the system was literally driven into the dirt to the ears. So UK in the territory of which there was no war for four years and which suffered in war immeasurably less than the USSR, back in the early 1950s could cancel the card system. At this time in the former “workshop of the world “there were strikes of miners who demanded to provide them standard of living as the miners of the USSR. How Stalin freed the ruble from dollar Soviet ruble since 1937 has been pegged to American dollar. The ruble rate was calculated in foreign currencies based on the US dollar. In February 1950, the Central Statistical Office of the USSR on urgent assignment of I. Stalin recalculated the exchange rate of the new ruble. Soviet specialists, focusing on the purchasing power of the ruble and the dollar (we compared the prices of goods) and deduced the figure of 14 rubles for 1 dollar. Earlier (until 1947), 53 rubles were given per dollar. However, according to Heads of the Ministry of Finance Zverev and Head of the State Planning Commission Saburov, as well as attending this event, Chinese Prime Minister Zhou Enlai and Albanian leader Enver Khoja, Stalin crossed out on February 27 and wrote this figure: “At most – 4 rubles.” Decree On February 28, 1950, the Council of Ministers of the USSR transferred the ruble to permanent gold base, pegging to the dollar has been canceled. The gold content of the ruble was set at 0.222168 grams of pure gold. Since March 1, 1950 was established The purchase price of the USSR State Bank for gold at 4 rubles. 45 kopecks for 1 gram pure gold. As Stalin noted, the USSR was thus protected from the dollar. USA after the war had dollar surpluses, who wanted to drop to other countries, shifting their financial problems on others. As an example of perpetual financial, and means, and political dependence on the Western world Joseph Stalin led Yugoslavia, where Josip Broz Tito ruled. Yugoslav currency was tied to a “basket” of US dollars and British pounds sterling. Stalin actually predicted the future of Yugoslavia: “… sooner or later, the West Yugoslavia “collapse” economically and dismember politically … “. His prophetic words have come true since the 1990s. Photos from open sources For the first time, national money was exempted from the American dollar. According to the Economic and Social Council of the United Nations, European and Far Eastern UN Commissions (1952-1954) Stalin’s decision almost doubled its effectiveness Soviet exports. And at that time – industrial and high technology. This happened due to exemption from dollar prices. importing countries that underestimated prices for Soviet exports. In his in turn, this led to an increase in production in most Soviet industries. The Soviet Union also got the opportunity get rid of technology imports from the US and other countries that focused on the dollar and accelerate their own technological update. Stalin’s plan for creating a common “non-dollar” Market Transfer to the “Stalin gold ruble” for the most part USSR trade with the countries of the Council for Mutual Economic Assistance (CMEA), established in 1949, as well as with China, Mongolia, Northern Korea, Vietnam and a number of developing countries led to the formation of financial and economic block. There was a common market that was free of the dollar and therefore the political influence of the United States. In the first half of April 1952 in Moscow an international economic meeting. At it the Soviet delegation led by Deputy Chairman of the USSR Council of Ministers Shepilov proposed the establishment of a common market of goods, services and investments. He was free of the dollar USA and created in contrast to the General agreement on tariffs and trade (GATT) and US expansion. At this time already acted with might and main Marshall’s plan. The economies of most of Europe are in depending on the United States. CMEA members and China back in 1951 declared the inevitability of close cooperation of all countries that do not want to subordinate the US dollar and the dictates of Western financial and trade structures. Countries like Afghanistan supported the idea Iran, India, Indonesia, Yemen, Syria, Ethiopia, Yugoslavia and Uruguay. These countries became co-organizers of the Moscow Forum. Interesting, that the proposal was supported by some western countries – Sweden, Finland, Ireland, Iceland and Austria. Total in Moscow The meeting was attended by 49 countries. During his work was more than 60 trade, investment and scientific-technical signed agreements. Among the basic principles of these agreements were: exclusion of dollar payments; the possibility of barter, including to pay off debts; policy coherence in international economic organizations and the world market; mutual mode most favored nation in loans, investments, loans and scientific and technical cooperation; customs and price benefits for developing states (or their individual products), etc. The Soviet delegation proposed at the first stage to conclude bilateral or multilateral customs, price, credit and commodity issues. Then they planned to hold gradual unification of the principles of foreign economic policy and create a “general block” trade zone. At the final stage planned to create an interstate settlement currency with mandatory gold content (the ruble was already prepared), which led to the completion of the creation of a common market. Clear, that financial and economic integration led to political integration. Around the USSR, not only socialist, but also people’s democratic and former colonies, that is developing states. Unfortunately, after the death of Stalin, the authorities of the USSR and most other CMEA countries turned their backs on proposals the great leader, gradually falling under the power of the dollar (and their elite under the power of the “golden calf”). About the great Stalin project tried to “forget.” Moreover, in view of the socio-economic and Khrushchev’s political adventures (“Khrushchevschina” as the first perestroika), had to devalue the “Stalin gold ruble” (at 10 times) and reduce its gold content. In the late 1970s the gold content of the Soviet ruble was de facto eliminated altogether. Since the time of Khrushchev, foreign Soviet trade with most countries began to be carried out in US dollars. In addition, the Soviet Union became “donor” of developing countries and began to supply the Western world with cheap energy and industrial raw materials. And the gold reserve that created under Stalin, began to rapidly lose. The idea of ​​”Soviet globalization “at the financial and economic level [here, obviously, the author means globalization on the principles of a fair Concept management – approx. IAS] and freedom from the US dollar, depending on The US Federal Reserve is now more relevant than ever. Actually, nothing needs to be invented. Joseph has already given everything to Russia Stalin. It is only necessary to show political will and bring it intentions to their logical conclusion [in order to understand the true intentions and deeds I.V. Stalin must master the theory control described in the bunker – approx. IAS] Then Russia will be completely independent on financial and economic priority, undermine the power of the Fed, Western TNBs and TNCs and get a powerful tool for “Russian globalization.” Russia will receive a powerful tool for development of the national economy and development of welfare of the people.

War Time Money China Russia Stalin USSR USA Economy

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