RUSSIAN BANKING COLLAPSE INEVITABLE

Reposting: From The Analyst: Military and Strategic - militaryanalyst.bsky.social

Over the past months we have come to understand what Russia has been doing to sustain its war effort in terms of funding.

These include direct and public funding of the war that’s estimated to be around 6.5% of GDP, but around 35% of government spending. This always seemed suspiciously low, as did the official inflation rate at 9.5% when interest rates were hiked to 21%. You do not need an interest rate that high to tame 9.5% inflation.

Russia has been pulling a sleight of hand, hiding from its own people and the international community what it has been doing. It has basically been using the commercial banking sector to force loans at referential rates on to armaments manufacturers – even when the government, and the banks being forced into the loans, know they are high risk and unlikely to ever be paid back.

Banks don’t like investing in weapons manufacturing unless they can see a return on their money. There is a fundamental issue with weapons manufacturing – you generally only have on…