Russia’s economy is doomed

[thaibeachlovers]

17 hours ago, AndreasHG said:

 

You simply misunderstood Heryford's sentence. 

 

The meaning of the sentence is this: "Russia could have been a great country with its resources and a high level of education." But communism threw away this opportunity due to the failed management of the economy.

 

There are also other reasons why in 1991 the Soviet Union crashed down: the Afghan people and low oil prices made a significant contribution to the demise of the Soviet Union. But the economic missmanagement and the endemic corruption of the apparatchik (Rus: аппара́тчик) were the root causes of the Soviet Union collapse.

 

Fair enough about misunderstanding. Sadly though, I doubt any fate awaited the former Tsarist Russia under the Bolsheviks other than what they got, which was Stalin, a fate worse than death for many.

[Patong2021]

Russia has a growing and very destructive catastrophe in the making. Parts of Siberia have become an environmental toxic wasteland.

The oil industry is out of sight and out of mind for most people since it is located in deepest darkest Siberia. Unfortunately, the Russian pipelines leak and the storage tanks rupture. When Russia transfers oil  to ghost tankers at sea, thousands of liters of oil often spill and are left unremediated because to clean up would acknowledge responsibility. Russia along with China, India and Iran is one of the world's worst polluted bilge and oil spill offenders. The oil brokers of Singapore, Hong Kong, Dubai and India have all enabled this environmental catastrophe.  Putin has locked up and silenced the brave  Russians who fought to protect Russia. Westerners are too preoccupied with virtue signalling to acknowledge the tragedy of Siberia. The loss isn't just Russia's but the world's.

[AndreasHG]

6 hours ago, thaibeachlovers said:

a fate worse than death for many

 

It is the cyclical history of Russia. Between delusions of grandeur and immense tragedies. Tragedies that drag Russia's neighbors into the maelstrom, sparing no one.: Holodomor - Wikipedia

Remember the Holodomor - Sweary History with James Fell

 

[3NUMBAS]

The Russian central bank is set to hike its interest rate to 23% on December 20 as inflation was between 8% and 8.5%, according to the government, by the end of the year. Some analysts have suggested it may be higher.

[Patong2021]

Where can I invest in Russian bank deposits? I will gladly sing the praises of Putin  and take 23%. After my tax rate, I promise to give 25% of proceeds to Ukraine.

[AndreasHG]

2 hours ago, 3NUMBAS said:

Some analysts have suggested it may be higher.

 

Inflation must be higher. Otherwise, the real interest rate Russian banks pay to the central bank to borrow liquidity would be a staggering 14.5 to 15%, something unheard of. Russian private borrowers would pay even more and the whole economy would be at risk of collapsing.

As a reference, as of September 19, 2024, the real interest rate in the United States was -1.28%.

 

The real interest rate is calculated as follows: Real Interest Rate = Nominal Interest Rate - Inflation Rate

 

[3NUMBAS]

They can’t live without ball bearings from Sweden ,and chips from the west ,these will become harder to attain even via satellites 

[ballpoint]

This is a good explanation of what's happening, and what it will lead to.  Not only is Russia losing hundreds of thousands of young men to the fighting, production for the war machine is using up a huge chunk of the working population, meaning large shortages to do the normal, everyday work, meaning pay must go up to attract workers - by 8% last year and a further 9% this year, meaning prices must go up to counter that, meaning an inflation spiral that's rapidly getting out of control.  And, as we know, they've announced that they will be spending a third of their budget on the military, but they're already spending an estimated 6% of it on compensation to families of those injured or killed in the fighting.  Couple that to the plunging rouble, falling exports and economic sanctions, and something will give sooner rather than later.

 

 

[AndreasHG]

41 minutes ago, ballpoint said:

This is a good explanation of what's happening

 

Thank you for posting it: Very informative video. 

[thaibeachlovers]

6 hours ago, ballpoint said:

This is a good explanation of what's happening, and what it will lead to.  Not only is Russia losing hundreds of thousands of young men to the fighting, production for the war machine is using up a huge chunk of the working population, meaning large shortages to do the normal, everyday work, meaning pay must go up to attract workers - by 8% last year and a further 9% this year, meaning prices must go up to counter that, meaning an inflation spiral that's rapidly getting out of control.  And, as we know, they've announced that they will be spending a third of their budget on the military, but they're already spending an estimated 6% of it on compensation to families of those injured or killed in the fighting.  Couple that to the plunging rouble, falling exports and economic sanctions, and something will give sooner rather than later.

 

 

and CBC is an absolutely unbiased news source of course.

[AndreasHG]

2 hours ago, thaibeachlovers said:

and CBC is an absolutely unbiased news source of course.

 

If you prefer Russian news outlets (notoriously unbiased) you can read this: 

Putin's Russia is heading to the exact same spot that caused the Soviet Unione to collapse, and the Tzarist Russia to collapse: "it's the economy, stupid".

 

[3NUMBAS]

https://kyivindependent.com/quarter-of-russian-malls-may-face-bankruptcy-by-2025-report-warns/

 

 

malls going bust like everything else