Let Them Eat Cake, Ukraine Edition

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2/5/2015

Bread for 10 hryvnya a loaf. Not a fairy tale but today’sestimate by the Ministry of Agriculture.

By Yurasumy

Translated from Russian by J.Hawk

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Due to the hryvnya devaluation the price of a loaf of bread
may increase to 9-10 hryvnya. This was announced by the First Deputy Minister
of Agriculture Yaroslav Krasnopolskiy.

“Krasnopolskiy reminded, that in May of last year the price
of wheat was 2500 hryvnya/ton. After factoring in the halving of the value of
the national currency, we are estimating that in May 2015 that price will be
4500-5000 hryvnya/ton, therefore the price of flour will reach 6-8 thousand
hryvnya per ton. Which means that the final price of a loaf of bread will be
9-10 hryvnya.”

Judging by everything, there is no money left to even keep
the price of basic necessities at an affordable level. Including BREAD. As long
as there existed a central distribution of bread flour that was sold to
bakeries at a “fixed” price (possibly by using up the flour from the state
reserves), the price could be held in check. But now it has turned out that the
government has “washed its hands” and that nobody will be controlling the price
of flour starting with May. Moreover, even those calculations do not take into
account what had happened on the currency markets over the last week. And one
still has to stay alive until May.

J.Hawk’s Comments: To state the obvious first, Ukraine is
not Russia. A devaluation for a country like Russia which is a net exporter
that runs large surpluses, which has a relatively modern industry capable of
manufacturing nearly all the necessities and which, last but not least,
produces its own energy, is a blessing in disguise, as acknowledged even by Goldman Sachs. Ukraine has not one of these advantages. It has many
disadvantages to boot, starting with its very own “leadership” “elite”. So the
prices for everything, including even bread, will begin to rise, and for the
regime this will be a death knell. Even the mobilization protests will pale in
comparison with what will happen once that price of bread becomes a reality.
Considering that, according to Yaresko’s own estimate, the military campaign
has cost Ukraine $10 million a day, it’s becoming relatively obvious that the
UAF will not be able to sustain even its current level of military effort for
much longer. 

And to think that not too long ago Yatsenyuk was bragging before the Rada and the entire Ukrainian people that Ukraine can always feed itself…

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