What you're not being told about Russia's economy
Paul J. Warburg
11 min
Russia's economy is fundamentally weak because it must print money to cover a deficit, causing inflation and devaluing the ruble. Long story short, Russia is running out of money.
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Vladimir Putin
Chapters
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0:00
The Illusion of Russian Wealth
Russian workers are becoming millionaires in rubles due to rapid currency devaluation, not actual economic strength. International bodies like the IMF and World Bank report growth based on data provided by the Russian government.
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3:04
The High Interest Rate Signal
Russia's 20% interest rate proves the central government is fighting inflation, contradicting claims of economic health. Inflation causes people to buy cheap goods while consumption of expensive items collapses.
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5:42
The Silent Tax on Citizens
Russia keeps its economy afloat by printing money, effectively stealing value from citizens' wages.
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8:17
Loss of Confidence in Rubles
Trade partners refuse to hold rubles because Russia has started running a budget deficit for the first time. Russia is exhausting its $650 billion rainy day fund, forcing it to print money to cover war costs. Sanctions are working because they have forced Russia to run a deficit and deplete its financial reserves.
Key points
- 0:00
Everybody in Russia who has a job is becoming a millionaire in rubles.
- 0:00
A million rubles is approximately 10,000 US dollars.
- 0:00
The exchange rate for rubles to dollars is approaching 100 to 1.
- 0:00
A lot of people are claiming that despite Russia's war against Ukraine, Russia's economy is actually growing.
- 3:04
The International Monetary Fund and the World Bank use data provided by the Russian government.
- 3:04
Right now in Russia, there is a 20% interest rate.
- 3:04
Consumption of the cheapest goods in Russia is going way up while consumption of expensive goods is collapsing.
- 5:42
Russia is keeping their economy afloat by printing money, but people's salaries are not rising at the same level.
- 8:17
Russia just started running a deficit for the first time in a long time.
- 8:17
Trade partners refused to hold rubles or to conduct trade in rubles.
- 8:17
A big reason that Russia is running out of money is because sanctions are working.
Who and where
People · 1
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Vladimir Putin 2
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)
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