- cross-posted to:
- ukraine
- cross-posted to:
- ukraine
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Article text: https://archive.ph/w5CJi
Hat tip: https://lemm.ee/comment/7245397
Interesting read, but what are the actual implications? Felt like it stopped before getting to the point. Is there a risk of a crash or what?
So far, the Kremlin has been able to finance military spending by selling gold from the Russian National Wealth Fund. Eventually, this fund will run out.
“Forcing the economy to run at the current pace will, however, exacerbate its current problems and only delay the major bust that they will trigger.”
https://www.reuters.com/breakingviews/russian-war-economy-is-overheating-powder-keg-2023-10-25/
Thank you for the explanation and link. Thought this was particularly interesting
“The second threat is the ailing rouble . The Russian currency is down 30% since its January high. Its fall has accelerated since the June mutiny of Putin’s former ally Yevgeny Prigozhin and his Wagner mercenaries. The Bank of Russia has been unable to stem the slide even after raising its key rate from 7.5% to 13% this year.”
You are welcome. Another important factor is that Russia is totally dependent on Western technologies: https://www.foreignaffairs.com/china/how-exploit-russias-addiction-western-technology It can’t extract much of its oil without Western technologies, and Russian airplanes are gradually breaking down without Western spare parts.