Billions of Putin. What money Russia spends on war and when they end

While Russia is pouring billions into the Ukrainian war, the situation in its economy will remain unhealthy, blogger Roman Shrik predicts. It compares these crazy costs with the production of samovars, which are immediately thrown into the abyss, as well as with the collective suicide of the Russians. After another increase in the key rate, the Russian Central Bank listened to everyone on the subject. The situation is quite interesting.

I often hear "Putin has translated the Russian economy to military rails. " This, of course, nonsense, military rails are not at all. But Putin spends a pile of loot on the war, this is true. Even three piles. One pile is thrown into the production and restoration of weapons. For the most part, there are reports on the growth of the Russian economy.

That's just the economic meaning of these costs is about the same as in infusing money into the production of samovaries in order to throw them into an abyss immediately. Because all these tanks, the APC and howitzers go to the front, where they remain, without affecting economic development. Another pile is falling into recruitment of recruiting. This can be compared to payments to citizens for suicide. Money is spinning, relatives are rich once, there is little economic sense.

Well, the third goes to the fighting. It is very, very expensive. Now the Russian economy is divided into two: one ordinary, the other military. And the military economy gives rise to wild distortions. The staff is washed out of the usual part of the economy, someone goes to the front, someone to a military plant, someone runs out of the country. Salaries in the ordinary economy are increasing unjustifiably because of the bar set by military salaries C payments, which nails business efficiency.

The shaft of the loot from the military unit flows into ordinary, where it does not find enough goods and services that generates inflation. This is called the economy overheating, which is usually expected to expect a crisis. And to avoid this crisis, the Central Bank increases the key rate. Usually it works - money is getting more expensive, loans are getting smaller, more deposits are more, "extra" money comes out of circulation, inflation is reduced.

But in the Russian Federation the problem is in the military economy, and the high rate is treated with a high rate. It is like a wounded right hand, and the harness is imposed on the left. The Central Bank cannot affect military expenses, so they will continue to be cast by the river, and therefore, the distortions will not be reached. Meanwhile, sanctions continue to pour sand into a once established mechanism of export and import.