RUSSIAN Industry Collapsing

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In this video I discuss the latest S&P Global Report that shows that Russian Manufacturing went into decline in September and that Russian industry has started to make workers redundant due to falling orders, lower demand and a lack of skilled workers, all of which is very bad news for the Russian Economy.

For specific details please check out the CHAPTER list below.

Chapters:
0:00 Intro
3:28 PMI
6:31 S&P REPORT
9:21 RUSSIAN PMI
12:26 PRODUCER PRICES
14:39 SUMMARY & CONCLUSION

#russia
#ruble
#russianeconomy
#gdp
#rouble
#ukraine
#uk
#pricecap
#GLOBALFINANCIALCRISIS
#RUBLE
#SWIFT
#RECESSION
#CHINA
#USA
#NATO
#WW3
#WORLDWAR3

[stefantaubert]

What is "economy"? Basically a cycle of money, goods and services. A worker in a car factory gets his wages, uses part of it to pay his living expenses, and buys a television. A worker at a television manufacturer gets his wages and then buys a car at some point. This means that, mathematically, some of the money that the worker in the car factory got has come back. And so many smaller cycles mesh together and the money flows. In a war economy, however, the state pumps money into a tank factory - which takes tanks to the front and destroys them there - and nothing at all comes back into this "economy". Nothing comes back from rockets and ammunition fired from Kalashnikovs either. It is produced and can be used exactly once, without further use; nothing comes back. A war economy is an incomplete cycle that produces real losses and only that.

[MrMakabar]

A few things about that:

- Russia has raised taxes. Pretty much no business in Russia is actually profitable today
- money is so tight that there is no private or public investment
- cuts in education and health care have started already
- we have a relatively low oil prices, despite a crisis in the Middle East. Once that ends oil prices will fall below Russian profitability
- Russia used to have positive migration, that has turned around.

[garypowell]

Let me throw out a couple of theories about this report. #1. Russian military manufacturing has been bolstered by rehabbing of Soviet era stored equipment. Covert Cabal has reported that these storage yards are largely empty based on satellite images with only dilapidated and equipment robbed for parts remaining. #2 Military manufacturers have acted like a black hole, sucking up skilled employees from civilian manufacturers. #3 I saw a report from an agricultural economist about the shortage of foreign made parts in Russia for ag equipment. 4. We have also seen how the Russian auto and aviation industries have been hit by the sanctions. There is no reason the believe that the same has not occurred in other industries.

[teehasheestower]

Staff becoming redundant is perhaps an even more serious indicator of what is going to happen in the future. If companies are laying off people they are projecting less work, not just for now, but going into the future.

[janaka]

It implies that the army is cutting into the skilled workforce. Not a good sign for them.

[karlwarne]

I am English, and I can never remember buying anything with made in Russia on it.

[daviddelgado]

The military is competing with private industry for manpower. The government is burning through reserves at a faster pace than revenues. Import costs are higher. The devaluation of the currency makes export revenues lower. This all points to further consolidation of private industry and lower competition.

[andym]

The problem with a 25% interest rate for businesses is that any profits you make on a loan will have to exceed that interest rate in order for it to make sense. That's a heavy lift. Likewise, if your company starts to fall off for whatever reason, you could quickly find yourself underwater.

[janamendoza]

Hi Joe, thank you for the postings. I am currently taking a Marco Econ class in the US and the way you explain events and consequences feels like you have prepared this posting for my class. I have recommended you to my teacher and classmates as an enhancement to our class! Thanks again and can’t wait for your next real-life class/lecture!

[Pbavtor]

Have you seen those cemetaries? That's a growth industry in Rus. All those flags and flowers and the skilled labor to dig a lot of shallow holes? They're putting their labor force underground.

[luminyam]

Really excellent news!! Thank you Joe, that just made my day!

[henrischoeman-njzt]

We have to wait until the state fund is exhausted.

[dirusso]

🎉 Thank you Joe. Always Great Videos.💯👍

[TorbenLarsen-qn]

I can imagine that the companies with loans will die with the hiking interests rates.

[ashlarblocks]

Everything may seem fine until it doesn’t. Spending reserves is hollowing things out a bit. Also, producing things that get destroyed doesn’t really build wealth: this as known as Bastiat’s broken window fallacy. The drivers of collapse can build very slowly then things crash at once.

[stevenandrews]

Thanks❗️ This is a great way to learn about what is happening around the world❗️👍😊

[michelleagnew]

Excellent video! I appreciate your work in putting these videos together

[bobdillaber]

When you have too few workers and too many workers, you have what might be called an insoluble problem.

[Realtimehammer]

Love the calm informative videos, this is litteraly my goto news source for economic insights now! Thanks again for your work!

[alexdemoya]

One partial explanation why the military industry sector is seeing a downturn is with the emptying of russian vehicle depots there is less market demand for retrofitting mechanics/technicians.