Russia and Ukraine flashpoint

[Bofferbrauer2]

shavenferret said:

Russia is having some crazy inflation right now. Inflation is normally about 3% per year on average, however according to the WSJ, Russia has had a 9% increase just this month. You can see the 9% part at the bottom where the text in link. Now, Russia is going to have to slow this down by raising interest rates and slowing the economy down, and people are going to be out of work because of that. I keep talking about oil prices and pain, but the economic pain will be felt as soon as russia's hot economy has to cool off. They'll get higher unemployment, reduced income, yadda yadda yadda. Putin will probably be very unpopular soon.

https://www.wsj.com/world/russia/putin-russia-runaway-inflation-9e9fb3bd

Russia can't do that. You can't slow down a war economy without slowing down the production of weapons, something the Russian army can't afford. In other words, Russia is heading straight into an hyperinflation at this rate, as they don't have any foreign reserves anymore to prop up their currency (that's what they used over the last 2 years so they could claim "hey, see, the sanctions don't work, they make us even stronger, could as well remove them then." The only thing they can do is sell war bonds, but with an impoverished population there's not much to gain from those bonds in Russia...