Russian invasion of Ukraine

[Mihalik]

Iran?

Russia bout to look like North Korea with how closed off it is.

Well unlike North Korea, which has nothing to offer...we can always do humanitarian exchanges with the Russians. Food and medicine for oil.

It's only a matter of time before the Sov...I mean Russian agricultural sector collapses on itself.

[Elegiac]

People go on buying spree with expectations that everything will be higher in prices later.

That's how people deal with inflation as long as they have savings (and Russians have savings rate around 34% - compared to US ~7%).

You do realise runaway inflation makes savings worthless, right?

Bank runs are not "dealing with inflation", they're a symptom of a crashing economy.

[Shalcker]

Why would they need to rush to buy anything? You assured us Russia has methods of dealing with 20% inflation. Surely you didn’t mean panic buying shit while they can still afford it…

That's one of methods.

What do you think "dealing with inflation" is, sitting on your ass and waiting for government to save you?

[Elegiac]

What do you think "dealing with inflation" is

Monetary and fiscal policy by the government.

The idea that bank runs are a sign of a stable economy is almost as stupid as claiming that "sanctions aren't economy".

[Edge-]

People go on buying spree with expectations that everything will be higher in prices later.

Why would the prices be higher, Shalcker?

That's how people deal with inflation as long as they have savings (and Russians have savings rate around 34% - compared to US ~7%).

We're seeing higher inflation in the US recently, yet no runs on the banks. I'm happy leaving my money in there because inflation won't actually change its value whether it's in the bank or whether I have it in cold-hard cash.

Big Baghdad Bob vibes. Very bigly.

[Poopymonster]

Ay, you gonna afford those last burgers/coca cola cans somehow.

You open a pawn shop nextdoor to that fast food restaurant! The People's Pawn Shop!

[Fugus]

And if OPEC is successful in dominating the oil markets for Europe, choking off Russian markets...which is the current talk in the UAE, Russia's future may be quite bleak.

Agreed, their future was already looking to be on a quick decline in the coming 20 years as automobile makers start to phase out internal combustion and renewable pick up steam.

This hastens that from a timescale measured in decades to potentially one measured in months or even weeks.

[Zoranon]

That's one of methods.

What do you think "dealing with inflation" is, sitting on your ass and waiting for government to save you?

I am curious about one thing Shalcker. Does it not bother you that regardless the way this war ends, the one certain result is your total dependence on China? You will become their vasals because if they stop buying your stuff, you will go to hell where you belong.

[Templar 331]

People go on buying spree with expectations that everything will be higher in prices later.

That's how people deal with inflation as long as they have savings (and Russians have savings rate around 34% - compared to US ~7%).

So why wouldn't they use debt/credit cards or check books instead of going to the bank and pulling out physical money?

[Elegiac]

Big Baghdad Bob vibes. Very bigly.

Off topic but I don't think it's a coincidence that everything went to shit after North Korea got rid of the Pink Lady.

[Shalcker]

You do realise runaway inflation makes savings worthless, right?

Bank runs are not "dealing with inflation", they're a symptom of a crashing economy.

You are contradicting yourself.

"Runaway inflation" making savings worth less is exactly why people cash out their deposits and buy while they can get better value out of them (and for reference, there are also 20% yearly return deposits available for 3 months duration in every bank right now)

[Elegiac]

You are contradicting yourself.

"Runaway inflation" making savings worth less is exactly why people cash out their deposits and buy while they can get better value out of them

There's no contradiction in pointing out that saying "Russians have a lot of savings" is not in fact an argument that the economy is doing fine when those savings are having their value wiped out due to inflation. Rofl.

(and for reference, there are also 20% yearly return deposits available for 3 months duration in every bank right now)

The fact you don't see this as a sign that things are not going well is very telling.

Banks do not have to offer such generous incentives not to cash out if there isn't a problem to start with.

[Edge-]

"Runaway inflation" making savings worth less is exactly why people cash out their deposits and buy while they can get better value out of them

Wait...if I have $10 in cash and $10 in the bank and there's 10% inflation, is my $10 in cash now worth more than my $10 in the bank?

[Arrashi]

You open a pawn shop nextdoor to that fast food restaurant! The People's Pawn Shop!

Seeing the prices some people were selling them online after news dropped, it really makes me wonder if smuggling can of coca cola from Poland to russia can make really good business.

[Elegiac]

Seeing the prices some people were selling them online after news dropped, it really makes me wonder if smuggling can of coca cola from Poland to russia can make really good business.

I mean, we've already seen how lucrative the black market for goods smuggled from the West was during the Soviet era.

And that was before Russians were accustomed to having relatively ready access to said goods.

[Edge-]

Seeing the prices some people were selling them online after news dropped, it really makes me wonder if smuggling can of coca cola from Poland to russia can make really good business.

Bring back the days of the Soviet denim smuggling rings, baby!

[Shalcker]

Why would the prices be higher, Shalcker?

Delivery delays and other logistical problems mostly. Got to get our stuff from South Korea and China now instead of Europe.

Russian-sourced goods will get even more competitive in price.

We're seeing higher inflation in the US recently, yet no runs on the banks. I'm happy leaving my money in there because inflation won't actually change its value whether it's in the bank or whether I have it in cold-hard cash.

Your average savings rate is almost 5 times lower then for Russians. Unlike Russians most Americans simply don't have savings to properly prepare for inflation spike.

[Belize]

You are contradicting yourself.

"Runaway inflation" making savings worth less is exactly why people cash out their deposits and buy while they can get better value out of them (and for reference, there are also 20% yearly return deposits available for 3 months duration in every bank right now)

... So you agree Russia is about to be hit by runaway inflation, making their currency worthless...

You know, considering everyone there is cashing out savings while they still can...

[Elegiac]

Delivery delays and other logistical problems mostly.

So... the sanctions?

Russian-sourced goods will get even more competitive in price.

What goods? Rofl. The only thing y'all sell is raw materials.

Your average savings rate is almost 5 times lower then for Russians. Unlike Russians most Americans simply don't have saving to properly prepare for inflation spike.

I've already explained to you that savings do not constitute 'preparing for inflation' because inflation makes savings worthless.

That does not mean the currency retains its value outside of the bank, either. Bank runs are not a rational behavior.

[Shalcker]

Wait...if I have $10 in cash and $10 in the bank and there's 10% inflation, is my $10 in cash now worth more than my $10 in the bank?

As long as your bank isn't going to offer you 10% return your 10$ used now is worth more then same 10$ staying in bank until later.

That's how inflation works.