Russian Interest Rates Evinces Shortages (Supply Side) 

The most interesting part was when Nabyulina said that they cannot increase the interest rate anymore, or it will kill the economy. So they are running out of options to deal with the inflation, which is materializing as the force that will bring down russia.

Russia is being crushed for cheep. Unfortunately the real price is Ukrainian blood.

Dang i cant even imagine 18% rates reminds me of the early 1980s

yesss. my daily dose of “the russian economy is collapsing”. thank you sir!

I can't resist. Truly a man outstanding in his field! Thanx Mark.

Russia is cooking the books. People that are inside Russia, common people, common workers, say that inflation is more like 20%.

Nabyulina is actually quite brilliant. Just wish she could implement policy that would start getting Russia out of their hole, once they collapse. Hope she stays away from open windows.

I am worried about undeliverable demand for popcorn pushing prices way higher so I am off to stock up RIGHT NOW 😂

Very interesting Mark. Despite everything, shortages of labour, the demographics, the economy disintegrating, Putin wants more and more men to feed into the composting machine.

I want to play settlers of catan and drink mead with this dude. Ukraine is saving the world.

It took the West over 40 years to sit out the USSR before they had to throw the towel economically. Now, I won't suggest Russia today has quite the same staying power like the Soviet Union. Yet, a decline to the point they can't pursue their goals anymore might not exactly be around the corner. In the meantime the lack of the "peace dividend" in the West causes Russia sympathizers to thrive and gain momentum in the political landscape. It's a race alright and we should not underestimate the threat of Russia causing harm.

How can Putin get is so wrong! Russia will take decades to recover from this and the human cost is unforgivable. Thanks very much Mark, please keep up this brilliant channel. I love it.

Thank you for your detailed breakdown, I like listening to you while I work

I'm a bit surprised how Poland looks lime my home country Belgium, well Flanders specifically, but then again Poland is the connection on the European plain on the route to Moscow where Flanders is the same plain at its narrowest part. That's why Belgium is called the battlefield of Europe, because this small country connects the plain of France with the European plain running all the way to Moscow. My people have a long history of having their blood spilled in fights between the great powers. I wish this war would end already.

Thank you Mark!

In Lithuania, we have a "Russian business" saying: when you earn less than you invested (you experience losses).

Your knowledge of history is VERY IMPRESSIVE.

No future for Russia! 🔥🔥🔥 ❤️🇪🇺🇺🇦🇪🇺❤️

No, you don't understand. Their interest rates are still bellow their actual inflation... 😂

Whoever first called the muSScovite empire Nigeria with snow was spot on.

Very interesting and something to ponder. Russia reminds me a lot of Venezuela, a country with huge natural resources but very little else. Instead of taking those resources and investing in the infrastructure, they just squander it.

I think there is a supply side issue AND a demand side issue. There are shortages because labour and capital is sucked out of the civil economy into the army and the military industry. Because of this, not enough consumption goods can be produced to satisfy demand. Also, the high interest rate kills civil industry. But there is also an excess demand. Not for consumer goods, because the people are not rich at all. There is excess demand for military hardware and military labour and the government pays any price for it. This too drives up prices. These signup bonuses, soldier's salaries and death benefits end up _somewhere_ . Not necessary in the pockets of the soldiers or their relatives, but with _someone_ . This too injects cash into the system that is not backed by any kind of productive activity. And cash that is not backed by productive activity drives up inflation. The moment will come, and I think it is not far away, that the government can only pay it's bills by putting the banknote printers on overdrive. Maybe that is already happening, we have no real way to know this. But that will drive up inflation to Argentinian levels. If not even higher.

I’ve heard about the 18X in housing; vs 3-4X in USA or elsewhere. As a side note, the 20 kopek coin of Stalins early “era” was composed of 40% silver; and he needed “ real money” to satisfy international debts. Thru his “ money czar” - I don’t remember the name/title - Stalin ordered ALL of the 20 kopeks be redeemed for baseless 20 kopeks. Needless to say, not enuf were collected. Stalin’s order was to have his “ guy” go out and randomly shoot a bank teller in every town. This produced limited results; but, it did give the 20 kopek coin the sobriquet : “ the death coin”. Today its buying land

I love « numbers » but listening to too many of them makes me overloaded! Nevertheless, your « exposé » are informative. Thanks for the recap section at the end.

Russia is a house of cards

hi Mark. Strong video with valid conclusions. I never was considering all you arguments at once and finally i really only can agree. This makes perfect sense in the current context where the raise of interest rates has such a low impact, that i always was woundering, how this could not impact the money market. No matter of the negativ trade deficit or the sanctions or the nearly completely emptied foreign money reserves. It should anyway have an impact, much bigger that what we see. And your argument of the vanished markets for nearly any kind of production and investment makes perfectly sense and is supported by the numbers that we got. Thanks for this really great video

Hi Mark, Interesting stuff today mark i'm very impressed love you

Thanks Mark. Interesting as always. War economies inevitably experience inflation because they experience both reduced supplies of products and increased flows of money, including raised wages for workers in arms industries. Interest rates help to reduce private consumption but are not a complete answer in a war economy. So the other possible steps are price controls, rationing and directing labour, none of which work well in the long term either.

I love who you train the pigeons to come out exactly when you said the magic word

One of my favorite channels! Thanks Mark

Got my popcorn! Excitedly waiting for the show to start. Can’t happen soon enough! 🇨🇦

Another great video. 👍

Thank you for the latest information 👏

Thanks, Mark.

Thanks for covering this in Russia! I'm left wondering if my earlier comment may have triggered this. It's one of the most important economic concerns of the modern world.

Thanks very much.

Good report. Thanks Slava ukraini 🇺🇦🇨🇦

The value of democracy to Russia would be to peacefully remove its federal government for its incompetence. Unfortunately something has to break. Will the government break its people or vice versa?

On target, I fully agree. Your perspective supports my writing. Teamwork saves lives.

I know everyone is saying russia is going down (and I believe you, Mark). I just wish someone could put a time limit on it. It's frustrating waiting 🤨

Good job

I grew up during the cold war. Russia collapsing is music to my ears. Good for us, great for the world.

I'm watching n England and love your humour, "if you believe that i'm gonna head back to the USA and sell you some swamp land" that's a classic! You do however talk common sense, keep on doing it. Many thanks.

Right off the bat, thank you for teaching me the word "to evince". Now, to watch the video ;)

Instantly became a fan of your channel. Just pure facts

gods bless you! keep up the good fight ...... the truth.

Great video.❤ I’m 54, I work so hard to engage myself in someway of earning more income and stop depending on anyone. my family are happy once again and I can now afford anything for my family even with my Retirement. With a step of $50k and $17k weekly returns has been life changing, after so much struggles.

Mark wish to speak on Milton and the problems, as a degreed econ student the nominals used are irrelevant. Reality is the best measure. Your programs are really appreciated.

ruzzky eonomic moves, like their manoeuvers on the Ukranian frontline of throwing everything they have to attack their self created problems, smacks of desperation. 💪🇺🇦💥

I'm always amazed how you make these topics comprehensible and INTERESTING to people like me.

I can't help but laugh when I hear people in the US complaining about housing interest rates now. I tell them to check out the rates in the 1980s: as high as 18% and as low as 10%. Great show.

TOO MANY COOKS SPOILS THE VODKA!!!! Central Bank vs Ministry of Defence vs BlackMarket!!!! WHO is in charge??? Who REALLY stirs the pot???

I was 19-21 years old in 1979-1981. Interest rates reached 18.4%. Believing that can't happen again is like thinking an American civil war couldn't happen again.

She wanted to resign at the start of the war, but she was forced to continue working there. She said at once that it is inmpossible to fully mitigate the effects of the sanctions, she said that they can only buy time and it would be miracle if long enough. So why would they arrest her?

Again, great respect for you amazing analysis!

I live in Rhode Island And we used to have a commercial On TV for Brown In sharp And their slogan was We build the machines that build the machines I don't think they're in business anymore but they were a big business at the time.

The other side of high interest is, for instance, Хаан банк money markets are paying 12-13%. Not bad if you're holding and willing to trust that system. Doesn't seem like you would. Thanks for your insight.

It is a historical and inevitable contradiction that the fierce and glorified aspirations of "protecting the motherland", and the positive consequences which one hopes would flow from it, in all its dimensions, are precisely contradictorily contributing to the destruction of the Russian Federation in social, economic, demographic, industrial and technological aspects. A nation forced to withdraw into itself condemns its citizens to international pariahship. If the current war were ever to end, this situation would continue to reverberate for a long time.

I can see you are out standing in your field.

I fully agree and apologize for Congo and Kenya too.

Next time set up a table and chair with a bag of popcorn as a prop. Your presentation is so elementary my dear Watson. Love it.

Where my bots at? It's getting quiet in St. Pete, huh?

My new most favorite RU-vidr 😊

The only econ course i ever had was ag enon, and this channel fascinates me. Good stuff.

I know that your focus is on Russia, however leaving aside countries outside the G20 and sticking with the more or less developed world, Russia's southern neighbour Turkey, a country not in the EU but nonetheless a NATO member, is in a really bad way. I first visited it in mid-2013 and the lira/pound exchange rate was about 3.2. On my last visit in May 2019, the rate was 7.7. Today it stands at 42.9. Furthermore, as of May this year, the Turkish central bank fixed the minimum lending rate at 50% with the inflation rate currently standing at 59.5% My conclusion is that this is what you get when the basics of good economic governance are subverted in favour of ideological populism that caters to a largely older, largely rural, largely nationalistic, and religiously conservative base.

In ruzzia, pizza company starts you.

What about Ukraine's default this week? 😁😁😁

I watched the video and I have a question. There are countries where the central bank interest rate is higher than in Russia. For example: Turkey 50%, Argentina 40%, Venezuela 59%, Iran 23%, Pakistan 19.5%, Lebanon 20%, Egypt 27.5%. Does this mean that in these countries the economic collapse will begin earlier than in Russia?

I'm watching a series of videos of a Canadian family building a house in Russia. In their most recent video they were laying a concrete floor WITHOUT reinforcing mesh. The only viable explanation is that it was unavailable which indicates a serious lack of resources in the civilian economy.

Just like before when things crash down in Russia, it does so very fast. I wonder how the Russians will handle this winter now that the critical infrastructure start breaking down. Previous winter was from what the videos show very rough for Russian people in many areas.

Fantastic insights 😊

Thank you very much for this video!

I wonder how depleted the stocks of armor are. That stuff likely sat decades without any maintenance in a latitude similar to Canada, am I right in thinking that it might be at the point where they are starting to have a shortage? I really haven't been hearing as much about large formations in combat over the last couple months.

Russia still produces a lot of oil and gas for sale, and food products are exported. It helps its economy, somewhat...

Spot on

"Elvira" is not being arrested, yet, because putler literally held a gun to her head when she tried to resign near the start of the war! He'll get her eventually.

How does one start a business when nonody has discretionary income?

Another fascinating video, thanks.

Your explanations are easy to understand good job!

The war has taken out 2 million+ out of the labor force. It affects every aspect of the economy, agriculture, manufacturing, and services. It drives up labor costs while decreasing productivity of consumer goods.

Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 200k to a decent 632k in the space of a few months... I'm especially grateful to Evelyn Infurna, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

I love the high fidelity audio in your videos Mark. It fits perfectly with the beautiful Polish landscape.

I wish I had been on of your students, truly

That just doesn’t make sense 11% over their stated inflation

Didn't the Russian Central bank head try to resign when Putin invaded Ukraine? But Putin 'refused to accept' her resignation?

Thank you for the economic lessons. ❤

Mark, Hollister? What is Numbreo that you often quote? Can you provide a link to fact-check and support your thesis? Thx in advance

Well I even understood this! Thanks

Thank you for you information. I believe you are ome of the few honest persons. I epreciate your podkasts.

The ruble is rubble - It's all going according to the plan - V. Putin 2023

At the same time marginal tax rates keep increasing, reducing further the return on capital invested in the private sector and incentives to work in a market framework

Mark, at the 7:28 ... mark, you mentioned the price of potatoes in russia went up 90%, and that it's not because the demand went up 90%. I disagree. They can only afford potatoes. So now they're buying up all the potatoes they can. So, in fact, the price of potatoes went up because everyone is buying f'ing potatoes out there as their last resort. :D :D

Great commentary , seems to corrobate what Joe Blogs and Konstantin from Inside Russia are saying

Very interesting. Keep the good work.

Thanks!

Re NX, They do have some residual trade with China and India, and a bit of sanctions evasion through Central Asia.

Good for her, controlling inflation. Good for savers, not undisciplined people living beyond their means on credit. Oh wait, that’s the US.

Ok, Mark, but interest rate in Turkey is much higher and economy still was not collapsed, so why ruZZian economy will collapse than?

you are absolutely right as usual I just want to comment on one thing that makes things worse for Russia on paper they supply large quantities of materials to China iron aluminum and other metals and also oil and gas because money cannot be moved between the countries Russia claims that China has opened car shops and sell cars It's a calm just like everything else in Russia Chinese cars are in Russia It's a partial payment under the table I call it black money that Putin gets That's why they have no competitors they can charge whatever price they want to sell these cars to keep the war machine running cars and circuit boards they get from China and they are paid with cars and other components such as circuit boards and more but this makes it a losing business on paper because they deliver but they don't get paid but China and Russia run a foul play under the table It might keep Russia going for a little while because the Russians have to have cars if they don't want to go

Love the Copernicus shout-out.