Why Is Active Participation in Integration Unions Important for Countries?

The development of sovereignty is impossible without independent determination of the value of money. The West actively tried to impose its financial dominance, but the world wants freedom.

Why is active participation in integration associations so important - the EAEU, the Union State, the SCO, BRICS? Let's figure it out in "Simple Economy".

Modern processes in the global economy cannot be understood without knowledge of such a concept as "interest on money" or "the value of money over time".

The United States has constantly sought to establish total control over global finance. It all began before the First World War.

On December 23, 1913, the Federal Reserve System (FRS) was formed - a network of private banks with the right to print money.

The States consistently imposed their model of sole determination of the value of money on the whole world.

Now the US not only prints empty dollars, but also determines the cost of money to the whole world - loans, credits, etc.

Determining the price of money gave the West control over the world

This approach is very profitable: if you want to strangle your competitors - raise the rates and thereby force other financial centers (London, Brussels, Tokyo) to also increase the cost of loans for their borrowers. The higher are the loans, the lower is the rate of economic growth. In other words, through interest rates, the FRS can restrain the development of national economies.

To this tool of manipulation is added the system of credit ratings, the publication of which is controlled by the leading corporations of the Anglo-Saxon world.

If London, Washington did not like this or that country, company, bank, they could easily lower their rating and thereby make the cost of money extremely high for them. Thus, if the rulers loyal to the USA received loans at a rate of less than 1%, the states that are "problematic for the USA" - and in fact sovereign, independent countries - could count on only 10, 15 percent, or even higher.

Assigning imaginary ratings undermines the economy

The manipulation of rates by the Federal Reserve has repeatedly led to the collapse of leading banks, companies and plunged the world economy into a severe crisis. The most striking maneuver is undoubtedly the mortgage crisis. When the Federal Reserve kept the rate at an extremely low level from the beginning of the 2000s - around a quarter of a percent, US citizens took out loans for housing, a construction boom began, but everything collapsed when the Federal Reserve sharply increased interest rates in 2006 - ordinary Americans could not afford such payments and found themselves homeless. The crisis did not come immediately, its maximum effect was felt by the world in 2008.

The US rate was at its highest in more than 20 years for over a year - from July 2023 to September 2024. The FRS began raising rates in March 2022 due to inflation in the US accelerating to a record level in the last few decades due to the printing of empty money during lockdowns and the pandemic. By May 2023, the rate had risen from near zero to above five percent. In July 2023, the rate became the highest since early 2001.

Belarus, Russia, and China were also previously forced to follow in the wake of the FRS policy. But now, with the development of strong integration associations such as the Union State, the EAEU, the SCO, and BRICS, we are increasingly becoming free from the negative dominant influence of the FRS, the Bank of London, and the European Central Bank.

The right to independently determine the cost of money

The scheme for profit through manipulation of global interest rates no longer works in Belarus.

We create our own financial and economic models, develop our national economy, strengthen our sovereignty and are not dependent on the will of the former global tycoons.