Russian Monetary Crisis - Fall of the Bank of Russia 

I am living in Europe as a former post-Soviet refugee. I can testify that living in Russia/CIS is a not a life, it is survival. I love living in a Western societies ❤

Keep up the good work. I lived in Russia in the nineties as a missionary. Your point is well taken - these Russian apologists don't invest their money in Rubles. Their money is offshore in the hated west. All the leaders and oligarchs of Russia have their money in the West. Where your treasure is, your heart shall be also. Russia's economy has one foot in the grave and the other on a banana peel.

I was born in Romania. When I was little, I played ruble, a game made of matchbox pieces. I think that today matchboxes are much more valuable than rubles. Sanctions will leave Russia breathless, and then the flame of revolution will ignite .It's not much longer, the first signs have already appeared. Slava Ukraini!! Free Russia!!

Funny how those promoting Russia keep their money in USD (or other western currency) and not in roubles.

Thanks! Greetings from Norway! 🇳🇴

Living in Russia is suffering.

Great advice - if one is so confident about the Rubble future let them invest 😅😂

The fact that Russia's interest rate is at 16 % and the ruble is still falling or not at least improving at all tells you all you need to know about how good the economy is in Russia. FULL STOP.

I m listening to you because i m not a monetary economist, so all the input i can take , i will take. Thank you sir for helping understand . I m from Canada, living on a homestead , and like you i dream that people would wake up before its too late. Thank you for taking the time for informing us.

Money is created when you add something real and tangible to society, including valuable services. Excellent video! 👍

In February 2022, Russia did have some reserves in gold. I do believe that gold is an asset that possibly could be used. However, the first question is how much gold does Russia have possession of today. Gold sitting in New York, London or even Switzerland might not be usable during the war in Ukraine. Second, we are 2 years removed from the start of the war, so how much gold does Russia have today? We don't know, and we can't trust Russia to tell us. We do know that the Russian Central Bank has admitted selling their reserves, probably to support the value of the ruble, which I suspect has far less value on the street than it does at the government exchange rate for the dollar. And who buys anything from Russia, paying in rubles? Perhaps North Korea. Does Iran even buy Russian stuff? My guess is that they would almost be on a barter system, selling drones for fighters, or air defense systems. If Biden would just allow Ukraine to take the gloves off and hit Moscow, this war could end quickly, which should be our goal.

I love what you say Mark. I've only just found you so I'm watching your older blogs. Slava Ukraini🇺🇦❤️

Good luck getting your money back if you invest in Russia. No way.

thank you Mark!

Interesting Mark thank you again.

100 percent agree on the so-called 'russkaya dusha' . Poverty, ignorance, chauvinism, hating yet worshiping everything American, binge drinking vodka and being arrogantly confident in own invincibility, based on nothing but Soviet myths - that's what 'russkaya dusha' is all about😅

I can really listen to an economic presentation when the beauty of nature is in the background.

Why does it seem strangely appropriate that he is talking from a swamp?

Living quality matters. ❤

Thanks for youre work.

Surprized to see an american so well informed about Russia. 👍👍👍

Such a great video! Keep up the good work.

Now I can sleep well with the knowledge that: 1. RUSSIA is collapsing 2. CHINA is collapsing 3. BRICS is also collapsing Thank you Sir for your expertise! Greetings from Oulu/Finland. BTW: there are already 10k US Troops in Finland... West vs Rest....

Excellent Ukraine 🇺🇦 🇨🇦 Econ lessons

Thank you Mark.

Thanks again Mark. Very interesting.

Loved your preaching to the choir.

You are the best. I love you!

Thank you, for sharing your knowledge with us!

Foreign companies in China are getting nervous also.

Thanks!

Great video. Thank you

I think it's worth to point out that Venezuela, Argentina and other high interest economies are surviving but are not involved in a resources thirsty bloody conflict. So let's see how long the russky mir is going to last

Great video. This is an excellent analysis.

Yes, you are right and thank you for very interesting information about the Russian economy! Greetings from Norway

"Economies get rich because people want to make the world a better place." Throughout my entire economics education I never heard something so profound.

Well said.

Hope, growth and opportunity!

Great video. Keep it up!

Interesting. Found your channel by pure chance. Subbed.

Thank you for your video. All the pro - Russian/KGB propaganda needs to hear it.

If our markets weren’t manipulated, our interest rate in the United States would definitely be higher than they are. I’m no Putin sympathizer but we’re just as bad.

Thank you for insight! I’ve been enjoying your channel.

I'll have to watch this a few times to understand whats going on. Thanks for this lesson.

MARK A FANTASTIC INFORMATIVE & EXTREMELY INSPIRING VIDEO REVIEW -THANK YOU BEAUTIFUL, WELL SAID BROTHER.

Amen.

You are speakingmy language. Thanks. I just Subbed.

Thank you for trying to teach us heathens.... People really need to know this stuff.

I like your Jeb. Very unique.

In 1992, the Swedish interest rate was 500%. That was great. That pressed the house prices so much, that I could buy my first house in Stockholm, at 30 years old, and pay cash, just from savings.

Just discovered you, thank you

Well actually we DO have gold in Sweden, it is mined alongside other minerals. The big mining is iron ore however. The gold is just a bit of a bonus.

This guy is becoming one of my favorites. This vlog was one of the best.

gosh , amazing...

How do I short the Ruble?

This guy is truly interesting to listen to.

Good work Mark. You speak to the layman

Man i miss Florida.. great videos

It's like Joe Bloggs and Chris Matthews had a kid

By the way,, if the Gov subsidizes either part of your loan by allowing you to write off, depreciate expenses or losses, the 16% gets cut down significantly ..

Thank you sir!

Russians are used to volatility in their currency and 100:1 against the US dollar is a barrier they are uncomfortable with. The Russian Central Bank raised interest rates to defend the ruble. With a tremendous reduction in foreign trade and investment in Russia, there is not much demand for the ruble, so the Central Bank action successfully kept the ruble under 100:1. Currently, it's sitting in the low-90s to a dollar.

All fiat is counterfeit... it's the very nature of fiat. USD has probably printed the most tbh. But you are right about the interest rates. Good call

Not the most polished delivery but your logic and argument speaks for itself. You are a man of principle and can see the flies buzzing around if not the Bull pooh they hide... lol

Thanks for your take on Russia economy. So how much trouble are we in here in the US with our huge debt and out if control spending ? Also what do you think of a private owned FED ?

You are in good company. I don't understand the Russian budget either. I fact, I dont think Russia has a budget. Double entry bookkeeping doesn't exist in Russia. The standard is single entry bookkeeping which is Putin declares a number and the central bank declare it as fact.

Only need gold if you have no friends

Thanks, just re-lived the 60's-80's. Future not looking good, imho. Best regards, Carry on.

You had me when you referred to Bohm-Bawerk.

That was certainly interesting. I didn't know that interest rates were that high in Russia.

So are all the fiat currencies including the US dollar, the Euro, etc.

You are just amazing, I laughed a lot during this video and you are absolutely right. We here on earth were created for prosperity, consideration, tolerance, love, creativity and the like - not ruski mir. Thanks for really good videos, keep it up.

Can you Mark explain how you see the car loan/lease bubble in the US and will it burst like the real estate bubble of '08?

I really appreciate your positive portrayal of capitalism as allied with creativity and joy and having the freedom to be all that you can be to make the world a better place. It's rare but golden message!

Man I hope you are right

Good talk - However, many of us I am sure are not familiar with all the Economists that you quoted. What further signs will we see to indicate this collapse? Will we see, for example, hyperinflation as the Weimar Republic saw? Will there be shortages as there were in the Soviet Union?

16% interest rates are not bad unless your debt is like the US. If the US had 16% interest we would be completely broke down.

Вот ещё чуть-чуть и развалимся, нужно ещё немного подождать

Thank you for your impassioned and knowledgeable talk. Your scathing rebuke on the “Russian soul” had me laughing so very much. We have been told this delusion of the ‘soul’ so many times by Putin the Great (failure). There is little evidence that this ‘quantifying of the Russian soul’ has any goodness. The Russian soul is brutish, blood thirsty and forever angry. I will be looking forward to your future videos.

cool guy this one

Thanks for your comments Mark some interesting points. It’s not in Russia’s interest to it’s correct and true statistics because the news would show that sanctions are having a greater effect time otherwise believed. People say that Russia is an autocracy I think it’s more accurate to say that it is a kleptocracy. The pipes bursting and people protesting about freezing over the winter is a symptom of a greater malaise within Russia which is that despite being a huge resource rich country all the money has been centralised between Moscow and St Petersburg and the rest of the country is just meat for the grinder in Ukraine. This has always been like this for centuries and is on like this shit to change if the democratic government is elected it’s a question of mentality not just political.

The Ruble is falling more and more. If it does completely collapse to almost non-existent value, would it be worth buying in then? Because surely, when this is all said and done, the currency value will come back up? Or would it collapse completely and never return?

At his last visit in Russia, the Chinese president Xi said to Putin on camera: "Changes that the world hasn't seen in hundreds of years are happening. And we are at the front of it, my friend." Let's see.

grass is always greener on the other side especially when you are not happy with the one you're on.

Hi Mark Great video.😀👍 Your knowledge about economy and Russia is very impressive. Are you Polish? Greetings from Australia Slawek

Paul Volker put the interest rate up to 19%

Google’s AI recommended this channel and I have watched the last three videos. This creator is a happener economically; it’s well worth the time to view his videos. He cuts through & is clarifies. I study Russian so I am involved in what’s going on: but it’s hard for me to figure out on my own. Grateful for this economist. (I follow 3 or 4 military commentators additionally to keep abreast as well as ‘Inside Russia,’ where I am a patron.)

To summarize lenders basically sell time when they give out loans. If their venture isn't as profitable over time as the interest rate requires, then no one takes out loans or they default or lose money. It's an indicator that the russian economy is not as smooth as the government claims. They are in trouble I think.

I'm curious. Has Elvira Nabulina taken any extraordinary actions to delay the collapse that mirror those of Dr Schacht in the 30s? I remember reading of his currency manipulation skills (237 different values.. At one time), his creativity (Mefo bills, which I still have some trouble following. A little bit). Can you see indicators of this behind the scenes activity being used to finance the aggression? I would love to know how much you can peer behind the shadows of the information blackout in official reports. I do love the channel, and I'm happy I found it. 😁 ❤

In west you pay 5% interest and in russia 16%. Difference is that you pay in west 5% each year so for 30 years its 150% so tripple what you have bought it for. In russia the 16% is fixed meaning that you firstly pay off 16% of the mortage then you do repayment. In western bank you pay interest and repayment together for many years while in russia you pay off interest first then do the repayment.

Thanks a lot for sharing the information about the high russian interest rate, that's really interesting it hasn't been discussed more in general media. It sound like a formula for collapse for the russians.

I like how they predicted that USD would collapse and they are doing it the last 2-3 years, yet Ruble lost around 30% of its value and USD became the strongest currency in the world 😂

Shit, there are a lot of Russian Trolls here 😮

I’m Russian and this economist so funny/guffy (50/50) 🤣 😂

Не забывайте о схожей ситуации в 2014 году, когда ключевая ставка составляла 20%, после чего 17 и 14% соответственно. Понятно, что обстоятельства совершенно разные, однако тогда российская экономика, полностью погруженная в мировой рынок, оказалась в состоянии шока. За счет такого резкого повышения ставки удалось погасить инфляцию и стабилизировать экономику в целом. В последующие годы (не берем в расчет 2015 год, на котором все-таки сказался эффект от санкций и прочего) экономика показала рост. Повышение ключевой ставки до запредельных показателей, разумеется, не является положительным явлением, но если этого не сделать, и стимулировать экономику дешевыми кредитами (по низкой ставке, как хотят некоторые деятели в России, в основном олигархи) нецелесообразно, поскольку рисков от такой необеспеченной политики больше. Остается главный вопрос: как тогда стимулировать экономику с высокой ключевой ставкой. Ответ отчасти заключается в политики правительства, при которой до 2030 года планируется инвестировать в промышленность и иные смежные отрасли астрономические суммы (до 3,4 трлн руб, если не ошибаюсь), и применяться будет институт государственно-частного партнества, при котором на частного партнера, как ожидается, возложат до 45-55% инвестиций. Заемное финансирование осуществляется от нескольких государственных банков как по обычной ставке, так и по льготной. Все-таки их резервы в какой-то момент могут закончиться, поэтому решением проблемы могут быть: успешная реализация уже существующих сделок и проектов; и синдицированные кредиты, при которых банки, распределяя финансовые риски, финансируют какой-то проект. Кроме того, повышение ключевой ставки на сегодняшний день не дает такого быстрого эффекта как в 2014 году, поскольку существует программа льготной ипотеки (как для семей, так и, например, для IT-специалистов), где дешевые кредиты лишь увеличивают денежную массу в экономике, не давая остановить инфляцию. К сожалению, такова политика правительства и центрального банка, где нет простых решений. Поэтому правительство основывается не только на экономической ситуации, но и на социальной также, что противоречит выбранной политике центрального банка. И все идут на компромисс. Уверен, что российская экономика выдержит санкционный натиск, также нарастит качественное национальное производство, улучшит промышленность (как заявлено в Стратегии правительства). Надеюсь, что переводчик корректно переведет текст)

Hello Mark - I recently subscribed to you after watching a great video from you In this video today, I learn your understand finance stuff, which is relevant to me because I have just arranged my Pension funds to be invested in various Equities ( UK - Europe - Asia - Emerging Markets- ) - The Private (UK) pension company I use has 77 different funds which I am limited to chose from. What ae your thoughts on this ? if any 🙂

Fun fact: Russia's Central Bank hiked up the base interest rate to 16% TO FIGHT INFLATION. Seriously, they just introduced inflationary tax in form of interest rate. Imagine, you own a store, you just heard than for at least one year ruble is gonna be 16% cheaper, just how stupid you have to be for not starting preparing a plan to replace the price tags on all your (imported) stock.

7:40 Oh my god an earthquake ! 😀😀😀 ... or wind if the cam is bound on a tree.

Love that you are so anti- Russia

Keep 'em coming, Mark. I'm enjoying the "just the facts and common sense" presentations