Russia Just Suffered the Ultimate Humiliation

Chapters

1. 0:00

   Russia's Desperate Asset Liquidation

   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. This situation describes Russia, which is liquidating diverse assets including its shadow fleet, gold reserves, and bank accounts of deceased citizens. The trend has evolved from isolated anecdotes into a regular pattern indicating severe economic desperation.

2. 2:33

   The Fire Sale of Income-Producing Assets

   Desperation means you don't exactly get what those things are worth, ramping up as time goes on. A headline caught attention showing the Russian government selling off approximately 8% of a company at the heart of their shadow fleet for just $183 million. This sale covers approximately eight additional hours of war spending against a projected budget shortfall of $183 billion.

3. 4:56

   Confiscation of Civilian Property

   Since nobody really wants to hand over their cold hard cash to the Russian government, it has been forced to acquire property believed safe from Ukraine. Russia has been trying to acquire more and more private civilian homes and shares in businesses that are non-strategic. Between January and early November, the state confiscated and sold over $4.66 billion worth of such property.

4. 12:36

   The Gold Reserve Dilemma

   Russia has been the world's biggest seller of gold for two quarters straight, yet it retains a self-imposed limit on sales to maintain the ruble's value. The National Wealth Fund gold reserves dropped from 405 tons to 141 tons as recording happened. Even selling all remaining gold would not cover the massive budget deficits accumulated since the start of the war.

5. 18:18

   Failed Debt Auctions and Elite Pressure

   Russia's latest bond auctions have been failing miserably because nobody is willing to lend money at the prices the government is willing to pay. With traditional borrowing options exhausted, the government must rely on printing money or seizing more assets from its own people. This financial strain places immense pressure on Russian oligarchs who are forced to contribute funds to avoid losing their heads.

6. 20:54

   Political Instability and Coup Risks

   When people who are in power in Russia because they love money lose access to that money, their incentive for bowing down to a man like Vladimir Putin diminishes all the time. This dynamic dramatically increases the chances that these people will organize for some kind of coup. It sounds crazy, but it's happened in a lot of countries in the past.

On the map

Who and where