Who has Printed out the Hyper-Inflation

One can now hear the story about a program for checking hyper-inflation as the number one priority. There is no more mention of ration coupons and points, and market mechanisms are being offered even to the military industry. All of a sudden, people who used to print dinars without backing are joining forces in order to find the culprits for the financial collapse add the drop in the dinar's value on the black market by 100 percent over the past week alone.

Seven days ago, Federal Prime Minister Radoje Kontic had to be the first to admit that "measures in the field of the credit and monetary policy are not being carried out in accordance with the federal government's program and a monetary expansion has been pronounced lately". If we leave aside the question of whether the mentioned measures could have been carried out at all, Kontic should be reminded that the "pronounced monetary expansion" was precisely his policy - aimed at saving production. In any case, governor of the National Bank Vuk Ognjanovic himself, who carried out that policy, did not miss the opportunity to remind Kontic and all those in the federal government who had imposed such a strategy, that "the present and future, the first and only and, finally, the most important goal is - to lower the current inflation rate and to abandon the previous logic and the political support to the still possible "so called production, which can mean absolutely everything". Ognjanovic decidedly assessed that "so far, the priority has been to invest in production, but despite this, there are neither goods nor stocks of goods and the inflation continues to rage". Well, had the governor been so decided in his unpublished letter to Yugoslav President Dobrica Cosic, when he put his job "at disposal", we would either have a new governor, or there would be less money-printing without backing. This way, it turns out that the issuing bank also bears no responsibility for the fact that, out of the projected release of a new 12,500 billion dinars into circulation in the second quarter, 8,800 billion were withdrawn already in the first month and a half.

Both Serbian prime Minister Nikola Sainovic and his government are now washing their hands, although Kontic, in fact, signed their requests. True, this time the old custom of shifting the responsibility for one's own ideas to those in the federal apparatus who carry them out, was avoided. This time the culprits are "the users of credits from central bank money which, "under favorable terms and at a low interest rate, are used for buying foreign currency on the black hard currency market, instead of for specific-purpose investments in production". Kontic uses a similar formula - he condemns "capital coming from machinations", and avoids mentioning who had printed it and handed it out for free. Despite the turnabout in the program towards a battle against inflation and "a resolute stand of the federal government that it will support market mechanisms in all the fields where this is possible", judging by the latest statements and announcements, at the moment, one can assume that classical administrative measures "of controlling the credit and monetary policy" (which are customarily ineffective) will be applied. Can anything really be controlled by a state that has allowed, according to Belgrade district public prosecutor Miodrag Tmusic, probably around 90 percent of the money the citizens deposited in private banks to be considered lost?

It is easy to guess why the state, in regard to all these monetary affairs and the fact that private bankers are running away from their clients, is not even using the classical measures of state reprisals. To put it mildly - because it does not have a clear conscience. Economist Slobodan Komazec, who, it seems, has already terminated his loudly announced engagement as the savior of the "Dafiment bank" after only three weeks of his voluntary work, only slightly lifted the lid on the "black box" of our financial crisis when he said that behind his back "even politicians kept drawing out, under pressure, large sums of money from devastated vaults. The authorized monetary and financial institutions have announced only a debate on Dafina's business dealings, and the case is similar with other affairs as well. Apart from stricter "control" to have the dinar "return to the channels of the system", it is possible that two months after the latest devaluation, prior to the famous IMF session on June 14th, there will be a new major change in the dinar's exchange rate and that daily changes will be introduced. However, it is something else that should, in fact, be radically changed.