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Gerrard White's avatar

15 Dec 2023 The Economist joins in: Sanctions are working, or even if they are not an expanding economy is a disaster for Russia

https://www.economist.com/finance-and-economics/2023/12/10/vladimir-putin-is-running-russias-economy-dangerously-hot/

Success is failure

‘Look closer at Mr Putin’s wartime economy, however, and it becomes clear that it is dangerously overheating. Inflation in the services sector, which includes everything from legal advice to restaurant meals, is exceptionally high. The cost of a night’s stay at Moscow’s Ritz-Carlton, now called the Carlton after its Western backers pulled out, has risen from around $225 before the invasion to $500. This suggests that the cause of inflation is home-grown.’

‘Look closer’! The one fact is fact free – impacts westie journalists using dollars but no one else, no wonder the Economist journo is complaining

‘The problem is that the Russian economy cannot take such rapid growth.’ The growth referred to is 3%

“Unemployment, at less than 3%, is at its lowest on record, which is emboldening workers to ask for much higher wages. Nominal pay is growing by about 15% year on year. Companies are then passing on these higher costs to customers.”

Low unemployment and higher wages for workers are bad

Next up - Western economies are so strong they benefit from recession

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Conservative Contrarian's avatar

I suspect a primary reason the west might choose to keep the conflict "active" is to mask the possibility President Putin/Russia have no desire to take on the burden of trying to control Europe. As long as the conflict is in play, the narrative of Putin wants to rule the world still sells; at least to the fools among us.

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