@@EconLessonsyou're ignoring the fact that the US dollar is losing it's value with the more treasury bonds it prints out. Also the incentive for other countries to move away from the dollar to avoid sanctions and countries like Russia and China are selling their US bonds and stocking up in gold which will only speed up the process.
@@EconLessonsyou do realize Russia is still trading with the EU through India right? Let's not forget the increased imports of Russian oil into China. Russias GDP has gone up almost 3% and remains the top 5 largest economy based on PPP with one of the lowest debts in the planet. The sanctions and world conflicts have only hurt the west and have strengthen the rest of the world.
It's probably the best and most informative RU-vid channel on the planet. I look forward to every single video you release. I always like, comment, and watch the commercials. Your worth it.
To summarise: don’t put all your resources in “special military operation”, especially if you’re poor af to begin with. Simple and effective advice. Thank you.
@@Demour77 Of course. You can either read some serious articles in prestigious magazines or, at least, watch overviews of Russian economy on channels with good reputation, preferably European, as they are more invested in the whole situation and has less propaganda (They are more factual and less emotional than American ones). Personally, I recommend German and French ones, which are in English. I would write their names but am not sure if it is allowed. The general conclusion is that Russian economy managed to withstand sanctions much better than expected due to different factors. One of which is its entrepreneur spirit and its ability to quickly adapt to new circumstances, which is the complete opposition to what the author of this video claims.
I understand your argument like this: The value of the rubel is based on belief. It is not backed by a valid promise to exchange it with gold. There is not much trust in the rubel. At some point people will not believe in any significant value of the rubel. Then it will not be useful for economic transactions within Russia, their economy will be in deep trouble.
The value of the ruble is not rooted in reality. Strong currencies are strong because free markets actually value their strength and stability. Nobody buys rubles because they want to park their wealth in rubles. They buy them because they are forced to. Companies cannot offshore much of their wealth legally, so they are bound to stay and use Rubles which will erode and can lead to total confiscation of their assets if Putin ceases to like them.
@fdllicks That is absolutely incorrect: the dollar is backed by the US federal government’s ability to raise revenue in the form of taxes. Plus, the US can also generate cash flow by selling assets, raising debt, and generate revenue from landed assets, such as resource extraction permits. This, in combination with the fact that the US is the strongest economy in the world, gives the dollar extremely strong backing. That is one of the main reasons why (surprise surprise) it’s the most widely held reserve currency. No one would trust it in that role if the situation were as you say. Bitcoin, by comparison is truly supported only by people’s perception. The are absolutely zero tangible assets backing it.
And the dollar is real money? It is being printed by millions of dollars everyday to pay off the interest on 33 trillion dollars debt. This is the main cause of inflation in the world and the cause of recession in Europe. Listening to this so called expert will lead you astra. My English nephew is married to a Russian and Russia is nothing like these propagandists say of which he is one. The main financial experts in the world are the IMF, the World Bank, Goldman Sachs etc. and they predict that the Russian economy will do quite well so this guy ups and says they don’t know what they are talking about about
Collapse? I heard Family Dollar store and Dollartree stores are collapsing in USA. Meanwhile in Russia ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-mOD6UMP_YpU.htmlsi=3K7oH0MPP-1GeIii
Do you see the Northern Caucus Republics will declare independence from Russia, and what about Tatarstan, Barshkortostan and Tuva? I see Republics in Russia wanting to separate from Russia.
@@SuezWSuezW That is correct. But it isn't unreasonable to speculate that he would have run Russia much better than the old chekist Vova putin. That's what happens to anyone who might threaten putin politically. Putin is destroying Russia.
@@smallpeople172 Yes, and regions rich in resources like hydrocarbons and metal ores are likely to be fought over, as Moskow will not want to lose access to the massive wealth that they earn from the sale of such resources...
As usual, very interesting. I believe Ukraine will survive, join the west, and be welcomed into the league of nations. No matter the borders, with free markets capital will flow in. The big problem initially will be demographics. Lets hope immigration will behave like capital and help create a vibrant economy. We need to remember the intelligence of the Ukrainian people. With meager resources they've already changed the battlefield tactics for all the world's combatants.
@@mitchyoung93 You're not very bright are you. The league of nations is now a term of endearment. It's not a political body of any type. Go to schooool dude!
I'm not an economist but this came onto my radar over the last 8 months and it's going to be very interesting to see if Russia living in the middle ages again changes anything for the good.
I live in Germany. It rains here too - hasn't stopped since Xmas. On holiday, I went to Lake Garda a few years ago - it rained. Next year I went to Madiera. It rained there too. I went back to Italy, this time to Verona, played a bit of golf - rainstorm. Ducks swimming in pools on the greens. English weather is no better or worse than most places.
You were absolutely right - we just see it. I am also national economist, and I knew that you are right, but most people probably think that it is all only wishful thinking. Now they are beginning to see the reality.
All that you said about Russia is very valid about Serbia. Dinar also doesn't have a real value. The exchange says 117 din for 1 euro 10 years in a row, but the prices doubled, and the real price would be 250-300 to 1.
I'm just your normal dumb American man from Northern Michigan, and I'm totally interested and impressed with your content. Thanks for the information sharing. Truth is power.
The almighty algorithm recommended me this video. Haven't watched any others yet but already subscribed. Thank you in advance for all of them that I will be catching up on shortly.
Mixed up with USA? Kensington Ave, Philadelphia is not troubling you? 100 000 a year killed in USA … not by Russia trouble maker but by made in America drug overdose! Homeless camps in California … Russia is to blame? Expansion NATO in Europe when in 60s USSR tried to put rockets on Cuba and USA threatened with WW3 , but is ok to put rockets NATO to close boarders with Russia?
I do not have an expensive camera but have really worked with the settings to get it nice. Its a cheap action camera but works well for my purpose as its not fun to be in the office.
RuSSia would be better off if it was more self sufficient in most production. But Pootin got himself into the corner when he forgot he needed the west more to run his lifeline (oil and gas) industry, than the west needed his oil and gas. But that was already discussed in the past. Just reminded mysel that the supposedly genius and master strategist miscalculated just a few steps ahead. Everything goes according to... laws of nature.
I read that the oil and natural gas industry now uses a great deal of computers to control pumping. These computers need updates. The updates are forbidden under sanctions. So after 2-3 yrs, machines stop working. In theory.
When my father visited Soviet Poland there were shops that only took "hard currency", which was really just a euphemism for dollars. Only foreigners and the rich thugs who ran the place could afford to shop in those shops. Dad said the stuff in normal shops was inedible crap in tins.
Not only is this genuinely interesting and insightful content but, to my astonishment and delight, you just referenced my favorite (and really obscure) metaphor from the original Star Trek series. Subscribing!
Great insight. Where do you live? That Forrest is awesome. I’m guessing your accent is kind of New Jersey or Indiana? I might be off but I’m just guessing. Thanks for video.
Totally agree with you because humans will always be humans at the end. Human brain will always be human brain it will not change. You are a true genius.
As someone that had lived in Russia for a long period of time, I'm laughing at the Americans simping for Russia and rubles :)) Russians ARE OBSSESED WITH DOLLARS, EUROS AND SWISS FRANCS!
Hi Mark. The others below are right and I also watch your videos every time. These are such important and ultra interesting points you show. One gets smart from watching your videos. Thank you very much and you have a great day too. 😀
Mark, Thanks for your channel and passion in putting this information out there for us. I learn a lot every time I watch you. I'm wondering since the Ruble is in demise, surely their vast natural resources and sales of oil to China and India are buffering this effect a lot. They also use their mercenaries to reach other resources in Africa and South America as well. Things like gold and diamonds. It seems like the government could continue operating off the revenue from natural resources kind of indefinitely until the citizens are just ground into the ground and their society becomes non-functional. The leadership will say everything is fine even though it's in total disarray. It's sad to see for all the average citizens. I guess time will tell how fast this all falls apart. I have a new saying when I see a politician lying or obfuscating the facts. I say "they are speaking Russian".
I think I understand your points, but on the ground in Russia the supermarket shelves are still well stocked and people haven 't seen this tsunami we in the West predicted. I'm guessing it's because they aren't allowed to use foreign currency for those daily transactions, and much of what they buy is made at home. They've had an economic earthquake but the military machine meanwhile has taken up slack. Their oil production is still doing fine, in spite of what we predicted since oil is fungible and they can always find buyers in India and China.
GDP per square mile isn't a valid measure of the strength of an economy. Russia has a lot of unpopulated land, but having control of it doesn't make their economy worse off than not. That's why GDP per capita is a much more common measurement, which makes a lot more sense.
Most Russians most likely never seen toilet paper, they like to wipe with Pravda news paper. As for ruble, they can use it to buy cheap vodka. You can't buy vodka with newspaper, that's the difference.
@@EconLessons Me too, was growing up in the Black Forest always outside. You are giving us good information about the Russian economy. Thank you for that. I'm very interested in that.
I'd argue it's even worse for Russia. Their decline hasn't started in 2022, not even in 2014. It started more than two decades ago, when Putin took the power. What Putin did, right from the start, is to divest the most profitable state assets to his cronies. These, in turn, while heavily milking those assets and paying a share to Putin, were also exporting most if not all of what money they could get their hands on. Therefore, Russia's GDP growth on recent years, up to the start of the war, wasn't in fact a reflection of any real growth and development in Russia, it was just an illustration of the level of theft the oligarchs practiced. What Ukraine's allies have managed to put under lock and key is a rather small fraction of all that was stolen from Russia. All this came at a cost. There's basically no technology in Russia, aside from some machinery left behind by foreign companies when they left plus what Putin has bought for the arms factories. Intelligence and skills have left the country in droves. Aside from a constant revenue from oil and gas, Russia had nothing, when the war started. How to you reboot an economy that was allowed to decay for decades, while under sanctions and waging a costly war, with no money reserves, while having to support a rather large population and to administer a humongous territory?
Awesome videos what an interesting gentleman subbed and liked...made my day with these facts anything that helps Ukraine against Putins awful Federation is great news.
I started follow Konstantin (Inside Russia YT Ch.) when Russia invaded Ukraine. I was very depressed and so was he, "the enemy" , but K is a true patriot and an economist. He fled RU. You might consider talking with Konstantin because he has talked about a tsunami of economic disaster soon destroying Russia. Thanks. Norway
Ruzzia going "back to the stone age..." might be a bit overstated, however, the country might devolve into something like Pakistan. The ruzzian society will begin to break down in social, political and economic chaos. We already saw some pensioners fighting for food from the food market trash bins in St. Petersburg. For those who thought economic sanctions don't work, you will begin to see a mostly modern economy collapse in a short time. Take note of the city of Orenburg, ruzzia, with half million people enduring historical floods. No emergency services and no infrastructure to manage the catastrophe. This is one of several black swan events that will cripple the country. The criminal regime won't be able to print enough Roubles to grapple with the hyper inflation that is coming.
Fascinating. I see the drop in the value of the ruble compared to the usd, but russia has raised interest rates and using capital control measures to prop up the ruble. Will there be a time when those efforts give out and they will no longer be able to prop up the ruble? If so, are there indicators in the economy that you can look at that would indicate a collapse of the ruble is close?
20-30% of Swedish national debt comes from Sweden doing what russia do today trying to defend the currency for 1 year. It failed in the end and that money was wasted, it will be the same for the ruble
During tsaristic times autonomic grand duchy of Finland had it's own currency markka because there was not enought of rubles in circulition. That situation keep old Russia a bay.
Yes and why do you think the oligarchs have their money overseas and not in rubles, not even in Russian assets if they can avoid it. I have to say the trend in the ruble is down but its only around 0.5c in the last 5 years the real fact is the ruble is damn near worthless sitting at around 1c for all that time
