Constant Rouble. An index of the Prices - Rate of Constant Rouble. The real Interest rates on an Index of the Prices

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Constant Rouble. An Index of the Prices - Rate of Constant Rouble. The Real Interest rates on an Index of the Prices.

Excuse me for quality of machine translation.

The own stable financial gauge is extremely necessary for Russia. It can become purely Russian Condional Unit of Account (CUA) - Constant Rouble (CR). Name of a CUA - CR speaks about its constant buying powers. Its rate is measured in roubles and is changed according to rates of Inflation (Inf). If the prices for some period will increase in 2 times, also rate of a CR will increase in 2 times (Some analogy to a rate of dollar).

The Rate of Constant Rouble is an INDEX of the PRICES (IP) - inflationary factor

Rate of a CR to manipulate more difficultly than level of a Inf, because IP has constant, not varying with time date of readout. A level of a Inf each year the different economists count) on "own correct" to technique. And nobody challenges results accounts, since by and large from them not hot and it is not cold.
CR will be exacter than foreign exchanges - dollars and euro - to reflect real changes in a gross national income and in a standard of living.

In a CR it is possible
- to measure real change of a buying power of the invested capital, i.e. real arrived or losses
- to conclude the long-term contracts
Final payments are made in roubles at a current rate of a CR, which automatically takes into account inflationary changes. A CR it only CUA.

Long-term crediting. The real interest rates (RIR)

The Russian problem of heavy burdenMonthly Payments (MP) under the credits - consequence of two reasons: high of the interest Rates (IR) and small terms of crediting. With the help of a CR it is easier to remove these reasons, having decided the most problem two-uniform problem: decrease (reduction) of a IR at simultaneous increase of terms of crediting. And as a consequence of elimination of the reasons - essential simplification of burden MP

The decision of a problem: the contributions, loans, IR and MP are fixed in a CR. The IR in a CR also is a Real IR (RIR). I.e. A MP in a CR will be made in roubles at the rate CR at date of payment. The investors will receive REAL LONG-TERM PROFIT, having placed the contributions till a RIR. The borrowers to pay on real interest. RIR will be lower Nominal IRs (NIR), since RIR are cleared of a Inf. At long-term crediting of a MP in a CR will be in times there are less rouble MPs.

Monthly fixed (equal) Payments in percentage of the sum of the loan / contribution depending on Currency, the interest rates and Terms of Crediting
Cur Interests Terms of crediting (years / months)
1 2 3 5 10 20 30
CR year- month 12 24 36 60 120 240 360
CR 0 0 8,33 4,17 2,78 1,67 0,83 0,42 0,28
CR 3 0,25 8,47 4,3 2,91 1,8 0,97 0,55 0,42
CR 6 0,5 8,61 4,43 3,04 1,93 1,11 0,72 0,6
- 9 0,75 8,75 4,57 3,18 2,08 1,27 0,9 0,8
- 12 1 8,88 4,71 3,32 2,22 1,43 1,1 1,03
rbl 15 1,25 9,03 4,85 3,47 2,38 1,61 1,32 1,26
rbl 18 1,5 9,17 4,99 3,62 2,54 1,8 1,54 1,51
rbl 24 2 9,46 5,29 3,92 2,88 2,2 2,02 2
rbl 30 2,5 9,75 5,59 4,25 3,24 2,64 2,51 2,5

**Monthly fixed (equal) Payments in percentage of the sum of the loan / contribution depending on Currency, the interest rates and Terms of Crediting**
Cur	Interests	Terms of crediting (years / months)
1	2	3	5	10	20	30
CR	year-	month	12	24	36	60	120	240	360
CR	0	0	8,33	4,17	2,78	1,67	0,83	0,42	0,28
CR	3	0,25	8,47	4,3	2,91	1,8	0,97	0,55	0,42
CR	6	0,5	8,61	4,43	3,04	1,93	1,11	0,72	0,6
-	9	0,75	8,75	4,57	3,18	2,08	1,27	0,9	0,8
-	12	1	8,88	4,71	3,32	2,22	1,43	1,1	1,03
rbl	15	1,25	9,03	4,85	3,47	2,38	1,61	1,32	1,26
rbl	18	1,5	9,17	4,99	3,62	2,54	1,8	1,54	1,51
rbl	24	2	9,46	5,29	3,92	2,88	2,2	2,02	2
rbl	30	2,5	9,75	5,59	4,25	3,24	2,64	2,51	2,5

The probability is high, that a MP in a CR, in due course "will catch up and will drive" rouble MPs. But You see and incomes of the borrowers will increase. It is much more favourable to begin to repay the indebtedness under the credit on OWN HOUSING ACCOMMODATION, than to continue to pay constantly rising in price employed ANOTHER'S HOUSING ACCOMMODATION and to save for the first "rouble" hypothecary instalment. As the probability is high, that the MP in a CR not will be caught "up" with rouble MPs, if the government of Russia will manage to execute the promise on suppression of a Inf. The application of a CR allows in times to reduce the first MPs and in regular more intervals to distribute their burden on time.
The MP can be calculated independently for the computer (Excel).

Problem of Disputable Inflationary Forecast. A rate of a CR - Index of the Prices - substitute zero inflation.

The definition (determination) of a IR is elementary tender between the investors and the borrowers. In the beginning is necessary to agree about sizes of real profits or Real IRs at various terms of crediting. Further to make the amendment on a Inf. I.e. to agree the Disputable Inflationary Forecast (DIF).
A Rate of a CR - Index of the Prices - substitute (model, simulator) zero Inf. And at zero Inf it is many times easier to the investors and borrowers and faster to agree, and most important, really to agree upon the sizes of real profits, i.e. about a RIR with reference to various concrete, and especially to long-terms of crediting, since the problem disappears DIF. At RIR for preservations of a buying power of the contributions of a IR is equal to zero, at a NIR - level of a Inf. Thus, at a NIR There is an inevitable problem of a DIF.
Upon a RIR at long terms of crediting to agree many times more easy than about a NIR. We shall assume, the investors and borrowers under the mortgage have agreed upon a RIR - 5% annual for the period of 30 years. For a RIR on it all also comes to an end. Since the loans / contributions are automatically fixed in a CR. For definition (determination) of a NIR there come the basic difficulties, since it is necessary to make the amendment on a Inf. NIR for receptions of the real profit - 5% annually at 8,5% State DIF will make 13,9% (1,05*1,10085 = 1,13925). Only investors, majority from which save on housing accommodation, consider this forecast underestimated, and the borrowers do not want 30 years to overpay, hoping, that government will execute the promises on decrease(reduction) of a Inf. And monthly payments on such IRs are rather burdensome for the borrowers. There can be you know the person, which will manage for many years forward is exact to predict a level of a Inf and to convince in the correctness of the investors and borrowers? Personally I do not know.

Definition (determination) of a rate of Constant Rouble - Index of the Prices

It is an inflationary parameter. It is an index of the prices with date, concrete and not varying with years Readout. For creation and, especially, of coordination of the uniform conventional technique of account of a rate of a CR some stages is required:

1 - preliminary stage. - First variant of a technique most operatively can develop interested private businessmen . For example, Joint-stock Business Banks (JSBB). Share price JSBB and profit directly depend from quantity of money both terms of a storage and crediting, which will depend in turn from trust of the investors and borrowers to a rate of a CR. JSBB are the active participants of the interbank market drawings.

2 - coordination first variant with a Central bank, Foreign Trade Bank, Ministry of finance of Russia, by other banking businesses, credit unions, by political consignments, companies of the consumers, etc. Central bank will credit other banks on a rate in a CR. It is necessary to the Ministry of finance to place a Stabilization fund inside Russia.

3 - Further it is desirable to agree a technique the interested countries, basic trade partners of Russia. More precisely with the American, European or Japanese Eximbanks. It will increase the trust to a CR in Russia and all over the world, that will allow to use a CR in foreign trade and will facilitate access to external sources of drawing.

For a point of readout of a rate of a CR it is possible to accept any date. For example, March 1, 2004. The rate of a CR is accepted equal to 1 rouble. Cost of an inflationary basket - beforehand is calculated the certain set of the goods and services: products of a feed, raw material etc. Is allowable, this basket of March 1, 2004 cost 10000 rbls, March 1, 2005 - 11253 rbls, May 23, 2021, for example (!?) 42539 rbl will cost. Accordingly rates CR - 1,0; 1,1253 and 4,2539 rbl.

The investors and Ministry of finance (Stabilization fund) will not be afraid to carry out the long-term contributions, since will receive real protected from inflation, percents. The borrowers will receive increase of terms of crediting, decrease of percents and Monthly Payments under the credits, for example, in the mortgage. The rouble payments will vary with a rate of a CR, but you see and the incomes will grow.

The life does not cost on a place. The set of the goods and services from an inflationary basket will be from time to time to be corrected. But it already other history.

Why a CR, instead of dollars or euro?

For Russia of a CR - exacter gauge than dollars and euro - foreign exchanges. These currencies of MASS-MEDIA, private business and even officers (!?) constantly use as a CUA at:
- to an estimation of physical volumes of production and growth rates of the Russian economy
- economic forecasting
- etc.
The measurements in foreign exchanges will sin always with essential errors. For example, at swings over of exchange can present real rise of economy as recession and on the contrary, or simultaneously rise in one currency and recession in other, since changes mutual rates of foreign exchanges also are subject to swings over and in any way are not connected to the Russian inflation. Foreign exchanges are subject to inflation. And rate a dollar/euro - size far changeable. Naturally, there is a question: By what currency, in general, it is necessary to be guided? A CR - answer to this question.

Area of application of a CR

1 - tax reporting
2 - foreign trades
3 - simplification of access to external sources of drawing
4 - protection against inflation and real gain of the bank contributions
5 - decrease (reductions) of interests and increase of terms of crediting
6 - conclusions of the long-term contracts
7 - Exacter planning of the budget
8 - etc

RUSSIAN ANALOGUE (14 kb)

English pages. Main (7 kb)
Russian pages.Main (8 kb)
The brief contents of the placed themes (9 kb)
THEMES of CONSTANT ROUBLE
In what the reason and paradox of the Unreal Interest rates? The disputable inflationary forecast (10 kb)
Comparison acting and offered of tax systems. As To double a gross national income, having got rid from the Parasitic Inflationary Taxes. Tax reform (18 kb)
Important theme. Without tax reform will not be essential growth economy and standard of living, neither new housing accommodation, nor decision of housing problem.
The Parasitic Inflationary Taxes (PIT) "eat" enclosed in production the capitals: constant and turnaround, salary and pension. This theme is more important than the mortgage, since from anything is received anything.
An Example of a PIT for a Working capital (WC)
- Inf - 0 %: the Prices, the Cost Price (CP) and rate of a CR do not vary. The businessman Somebody on 100 Millions Roubles (mr) has acquired components. They were not necessary, and in one year he has reseiled them till a CP for the same 100 mrs. Profit or Added Cost (AC) - 0. The taxes - 0. Losses - PIT - 0. Is possible at necessities to acquire new components.
- Inf - 100 %:The Prices, CP and rate of a CR for one year are doubled. In the beginning of year 100 mCRs = 100 mrs. In one year 100 mCRs = 200 mrs. Somebody reseils furnishing on a new CP, since the prices were doubled, for 200 mrs, receives imaginary inflationary profit (or imaginary inflationary AC) - 100 mrs, pay the taxes (from the imaginary profit?!) - 50 % - 50 mrs. He still has 150 mrs or 75 mCRs, on which it is possible to acquire only 75% of components. Real losses - 25% real buying power of a WC. It also is a PIT for a WC.
The indicated example of a PIT is equal half of ifference between a new real CP and old, indicated in tax declarations. I.e. at a zero Inf of a PIT is not present in general, since. The CP does not vary. With growth of a Inf the burden of a PIT grows also.
The Losses from a PIT somebody will transfer on the salary of the hired workers. If he will cover the business, the workers and their families, in general, will stay without a piece of bread.
From the indicated examples it is visible, that at a zero Inf of a PIT is not present in general. With growth of a Inf the burden of a PIT grows also.
Tax reform
The essence of tax reform - legislative fixing in the tax declaration of the Cost Price in a CR, that will allow to get rid of a PIT and to make production favourable and fast growing. It:
- New jobs and decrease(reduction) of unemployment
- Essential growth of real wages and pensions
- Additional tax receipts at fast growing economy
- Decrease (reduction) of expenditures on public account on the unemployment benefits
- Etc.

The MORTGAGE
The Mortgage. An introduction theme. Account fixed and differential payments (12 kb)
Constant Rouble will make (without the subsidies) the mortgage by more accessible (14 kb)
Three formulas of account of fixed payments. What correct? (10 kb)
Conclusion of the formula of account of fixed payment (12 kb)
Optimum real estates: the size, term, interest, currency. (19 kb)
The mortgage begins with comparison of variants. Here 4 comparative tables with percentage by the rates - 0; 1;... 18; 19%/years and with terms of crediting - 5, 10, 15, 20, 25, 27 and 30 years:
1 - Monthly Fixed Payments (MFP)
2 - Factors of Credit Status (FCS). With the help of a FCS it is possible to expect as the much as possible allowable sums real estates
3 - Sum of a MFP for all term of crediting
4 - Sum of percents (interests) for all term of crediting
On the present the mortgage will begin to work only then, when the overabundance will appear Again entered housing accommodation. Or. Hyperinflation, default and corruption - backs of the subsidiary mortgage (15 kb)