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Foreign Affairs
Related: About this forumRussia Isn't Collapsing. It's Worse. - Jason Jay Smart
Russias war has shifted from a military campaign with a clear end state into a financial countdown driven by money, interest rates, and internal cohesion. As borrowing costs remain dangerously high and inflation continues to bite, the state loses its ability to absorb shocks or hide systemic failures. A persistent 16% policy rate tightens credit and makes refinancing prohibitively expensive while pushing immense stress into payrolls, small firms, and regional budgets. Because defense and security spending remain protected, everything else faces immediate cuts, including repairs, wages, infrastructure, and basic services. This brutal tradeoff accelerates decay and transforms financial pressure into volatile political pressure.
Inside the Kremlin, shrinking cash reserves turn former allies into dangerous rivals. Security elites now compete for control of dwindling resources, and this internal infighting becomes increasingly difficult to conceal. This economic fragility provides the context for expanding sabotage and intimidation operations abroad as the regime widens risk to buy time. The frontline grind delivers compounding costs without a victory to reset elite loyalty. As capacity shrinks in 2026, the regime shifts from strategy to damage control, and the clock becomes visible to everyone.
CHAPTERS:
00:00 - Intro: Putins Three-Day War Becomes a Four-Year Trap
01:05 - Russias Economic Rot: The Kremlins Ticking Clock
03:52 - Russias Banking Crisis: High Interest Rates & Toxic Loans
04:31 - Putins Military Budget: Can Russia Finance the War?
08:00 - Abandoned by Allies: Why Iran & Syria Can't Help Putin
09:14 - Chinas Exit Strategy: Beijing is Not a Lifeboat
10:37 - The Kremlin's Fatal Error: Putins Strategic Dead End
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Russia Isn't Collapsing. It's Worse. - Jason Jay Smart (Original Post)
TexasTowelie
17 hrs ago
OP
What happened to the richest man in Russia? I've always heard he's beyond wealthy so maybe he can pitch in
Deuxcents
17 hrs ago
#1
Good. The sooner Russia implodes the better. The people have a chance to finally be free of the oligarchy.
ChicagoTeamster
16 hrs ago
#2
Deuxcents
(25,771 posts)1. What happened to the richest man in Russia? I've always heard he's beyond wealthy so maybe he can pitch in
To try and help feed his country.
ChicagoTeamster
(527 posts)2. Good. The sooner Russia implodes the better. The people have a chance to finally be free of the oligarchy.
And if Hungary and Belarus follow .....
Bayard
(28,875 posts)3. Putin needs to stop making treaty demands of Ukraine then,
And take care of business at home.