Putin’s Worst Nightmare Just Hit Russia's Banks

Paul J. Warburg 32 min

Russia's banking system is collapsing because it cannot borrow money while being forced to fund a losing war. Ukraine's strikes on Wildberries are actively accelerating this banking crisis and could cause the whole thing to blow up.

  • Vladimir Putin

Chapters

  1. 0:00

    Visible Destruction

    Russia faces visible physical destruction from fires across its territory.

  2. 1:38

    The Hidden Financial Crisis

    A hidden banking crisis has emerged where Russia can no longer sell government bonds.

  3. 6:48

    The Bond Auction Impasse

    Russia canceled bond sales because no one was willing to lend money at acceptable rates.

  4. 14:52

    Bankers Defy the Government

    Russian bankers are actively fighting back against government demands for more loans.

  5. 16:15

    Government Options Are Limited

    The government faces terrible choices: raise taxes, cause inflation, cut services, or sell gold.

  6. 21:42

    Hidden Debt Schemes

    The government forced banks to lend money for war production and debt relief.

  7. 30:21

    Systemic Banking Risk

    Ukraine's strikes on Wildberries threaten to trigger a systemic collapse of Russian banks.

Key points

  • 0:00

    Russia is currently burning in Moscow, St. Petersburg, Crimea, Belgorod, and the Sea of Azov.

  • 0:00

    Ukraine has systematically taken offline Russian refineries and wildberries warehouses causing massive fires.

  • 6:48

    Russia canceled bond sales because no one was willing to lend money at acceptable rates.

  • 6:48

    Russia experienced four consecutive failed bond auctions before canceling further attempts.

  • 4:09

    Russian bankers are actively fighting back against the Kremlin to preserve their fortunes.

  • 14:52

    The banking system is now telling the government no regarding new loans.

  • 27:36

    The Russian government went 150% over budget for its entire year's deficit by June.

  • 22:49

    The government forced banks to lend money for war production at below market rates.

  • 30:21

    Ukraine's strikes on Wildberries threaten to trigger a systemic collapse of Russian banks.

  • 18:40

    Russian banks are running out of money due to bad loans and war costs.

  • 16:15

    The government must choose between raising taxes, causing inflation, cutting services, or selling gold.

Who and where

People · 1

  • Drawing of Vladimir Putin

    Vladimir Putin 5

    President of the Russian Federation

    Photo 1

1. Photo: Пресс-служба Президента России, CC BY 4.0, via Wikimedia Commons · Wikidata · redrawn in our house style (Vladimir Putin)

Map of the places in “Russia Just Suffered the Ultimate Humiliation” 22:07

Russia Just Suffered the Ultimate Humiliation

Paul J. Warburg

One of the telltale signs that somebody is broke and doing everything they can to avoid bankruptcy is when they start to sell off everything they own just to meet their monthly obligations. We'll keep watching how these trends go and where they ultimately lead.

Map of the places in “Russia's Banks are Now Preparing for Sudden Collapse” 31:48

Russia's Banks are Now Preparing for Sudden Collapse

Paul J. Warburg

Russia has entered an economic trap eerily similar to Nazi Germany towards the end of World War II. Russia is destroying its economic future by continuously degrading its system into a slow-moving car crash with no growth.

20:42

Russia Just Made The Most Desperate Move I've Ever Seen

Paul J. Warburg

Vladimir Putin is making desperate moves by plundering bank debts because he has no other options left. Vladimir Putin is choosing to make a banking crisis worse by asking citizens to join the war instead of addressing the cause.

22:32

Russia’s Elites are FED UP With Putin About Ukrainian Strikes

Paul J. Warburg

Russia's elites are actively working against Vladimir Putin because Ukraine's strikes threaten their personal fortunes. As Ukraine's threats increase, Russia is fracturing into competing factions that may eventually turn on Putin.

46:20

Russia’s economy just screamed for help. No one answered.

Paul J. Warburg

Three ordinary Russians experience the economy very differently. A Russian plumber finds more work and higher income now than before.

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